The four steps of Digital Transformation. Patrick Ward Principal Solutions Specialist, IoT, Microsoft

Transcription

1 The four steps of Digital Transformation Patrick Ward Principal Solutions Specialist, IoT, Microsoft

2 Here s what we re covering Four steps of digital transformation Differences between PaaS & SaaS P&L opportunities by partner type Digital transformation case studies

3 Digital Disruption and the 4th Industrial Revolution Mechanized production Mass production Automated production Digitized production 1780s 1870s 1970s 2015+

4 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

5 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

6 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

7 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

8 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

9 Transformation in your Market offering Profitability Customer relationships From MRI Scanner to Remote diagnostics subscription From Industrial Machine to Machine uptime subscription From Thermometer to Temperature Control Service From hardware margin to subscription margin From capex to capex+opex From transaction relationship to annuity relationship From procurement relationship to business owner relationship

10 IoT Partner Value Chain End Points Security Connectivity Services Business Consultants Distributors Developers Regulators

11 IoT as a service models Suitable for more complex solutions requiring high controllability, high customization, with low endpoint volume Suitable for less complex solutions and common use cases requiring low degree of customization, with high endpoint volume

12 IoT as a service models Suitable for more complex solutions requiring high controllability, high customization, with low endpoint volume Suitable for less complex solutions and common use cases requiring low degree of customization, with high endpoint volume Partnership Opportunities for PaaS providers: System Integrators for integrating customer apps into platform ISVs for delivering companion apps for customer integration Cloud Service and Connectivity Providers for IaaS services Partnership Opportunities for SaaS providers: ISVs for app dev Channel partners for customer acquisition Cloud Service and Connectivity Providers for IaaS services CRM partners for customer data management

13 IoT as a service models in Microsoft Azure IoT Hub Preconfigured solutions for common IoT scenarios Azure IoT Central Fully managed IoT SaaS No cloud solution expertise required Built on the same Azure IoT Platform Services SaaS PaaS

14 Opportunities for P&L transformation by business type

15 Opportunities for P&L transformation by business type Device Builder / OEM New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Insight on how product is used in the field. Decrease manufacturing downtime by predicting and resolving issues before they happen. Product as a service. Attach and monetize new services.

16 Opportunities for P&L transformation by business type ISV New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Enhance customer experience by understanding how product features are used. Increase speed to market and reduce cost through process automation. Subscription-based services. Consumer apps represent a new channel for future services.

17 Opportunities for P&L transformation by business type System Integrator New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Remote monitoring of systems and processes. Remote troubleshoot and problem resolution. Service engineer arrives with right parts to fix physical infrastructure. Selling repeatable solutions and retaining IP. New services offerings such as business consulting, data science and device lifecycle management.

18 Opportunities for P&L transformation by business type Solution Aggregator New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Remote monitoring of systems and processes. Single relationship and billing for customer including applications, infrastructure and cloud. Aggregation of hardware and softwarebased connected device solutions for specific verticals. Subscription-based revenue. Higher margin for higher value services than pure hardware distribution.

19 Introducing an example of all four steps of business model transformation through broad ecosystem partnership

20 Connected Buses Image needed Solution Aggregator Aggregate multiple solutions Single platform for end-customer Simplified billing Cloud Solution Provider Transit and Commuter solutions Passenger wifi access Fleet management Digital signage CCTV security Driver panic button

21 How Synnex gets value from all 4 stages Business Insights Operational Efficiencies New Business Models New features & Revenue streams Fleet management and GPS location Video-based security Digital signage enables remote management of advertising collateral Single platform for the end customer (1 app instead of 6) Single vendor and billing (Synnex) Modular platform of services on top of wifi solution Inclusion into Microsoft Smart City blueprint offering Service-based margins Recurring revenue stream from Digital Signage and other services. App represents new channel to customer for delivery of future services. Ongoing solution management services.

22 Introducing an example of all four steps of business model transformation through broad ecosystem partnership

23 Please welcome Laurent Remont Chief Technical Officer, Kontron S&T Søren Lau General Manager EMEA IoT Device Experience, Microsoft

24 Enabling digital transformation Laurent Remont Chief Technical Officer, Kontron

25 S&T Group at a Glance Augsburg Linz Warsaw Moscow Montreal Toulon Beijing Taipei San Diego Penang S&T provides globally industrial IoT Solutions 1 3 S&T offers vertical IoT solutions and appliances for Industrial/Infotainment/Smart Energy/Medical S&T in figures Guidance 2018: ~EUR 1000 Mio. revenues and EUR > 80 Mio. EBITDA > 4200 employees in more than 25 countries 2 S&T is an IT service provider with regional focus Germany, Austria, Switzerland (DACH) East Europe 4 Listed at Frankfurt stock exchange Member of the TecDAX ~EUR 1.6 Bn. market cap, last 12m trading volume ~1,3 Bn. Headquarter in Linz, Austria

26 Kontron s Digital transformation 4.0 End-to-end SLAs to operate IoT network Consulting & development services Application ready I-IoT framework Value for Kontron Extended offer and services New business models (pay per use, SLA ) Operation efficiency in our manufacturing Value for customers Enable our customers in their digital journey! Easier, simpler, faster, cheaper digital transformation

27 Application ready Industrial IoT framework Services Build Operate End-to-end Hybrid AI at the Edge Main building blocks SUSIEtec Components Azure IoT Edge Azure IoT services

28 Case study : warehouse robot OEM Predictive maintenance : Robot remote monitoring Heat-map of most stressful positions SQL - 1 day Stand Benefits Remote monitoring Predictive maintenance service Stock optimization App?

29 Engaging a Digital transformation Team up Identify targets and quick wins! Be agile! Co-Sell Go To Market Lean, Agile development Continuous improvement culture Integrated feedback loop

30 Hurdles and Lessons learned No one SIZE fits it all : identify which steps makes sense for you A holistic approach : Business + operation + technical Change customer contact persons (CXO, service, operation, strategy ) Digital transformation leaders need wide spectrum skills Not all sales people are able to live the transformation immediately Results and ROI This is not a linear journey: lean/agile and continuous improvement culture ROI not always immediate but cumulative Build a solution that has the potential to evolve

31 How Kontron delivers / gets value from all 4 stages Business Insights Operational Efficiencies New Business Models New Revenue Streams For Kontron Used in our own manufacturing pay per use business model New services (development, Operation) For Kontron s Customers Get data from field Any format Application ready framework Intelligent edge Renting/pay per use Data/analytics driven Aftersales services Predictive maintenance Green and brown field Remove complexity, customizable

32 End-to-end Hybrid AI at the Edge WE innovate to better support customers in their digitalization Journey Thank you

33

34 Agenda 9:00-13:00 Keynotes incl. Break Rodney Clark, Sam George, Galen Hunt Peter Hoffmeister, Sarah Maston, Ben Kotvis, Patrick Ward, Laurent Remont 13:00-14:00 Lunch and Solution Showcase Networking 14:00-16:30 Break-outs Transforming Your Business (Optional Track 1) Break-out Room M11 Building Your Intelligent Edge (Optional Track 2) Plenary Room M9+10 Azure Central Session IoT in a Day (Optional Track 3) Break-out Room M7+8 Patrick Ward, Abel Smit, Evgenia Ostrovskaya, Ivan O Connor Peter Hoffmeister, Maarten Struys, Rui Freitas Marcello Majonchi 16:30-17:30pm Networking Evening

35 Break-outs Please be in your breakout room for 2pm Transforming Your Business M11 Building your Intelligent Edge M9+10 Azure Central M7+8

36 Thank you 2018 Microsoft Corporation. All rights reserved.