Jim Tramontana 27 September SERVICES FOR CONTINUOUS INNOVATION Tackling Tomorrow s Problems Today

Transcription

1 Jim Tramontana 27 September 2017 SERVICES FOR CONTINUOUS INNOVATION Tackling Tomorrow s Problems Today

2 Agenda 1 Industry trends and impact Current offerings and gaps What are Evolution Services Q&A - What are the offerings - What content is included - What benefits do you get - What do you NOT get? - What s the fine print?

3 Industry Mega Trends Cyber threats continue to increase CAPEX in most markets will remain constrained - CAPEX growth is a fraction of the cuts experienced - Long range forecasts show most growth in in E-7 countries with cuts in G-7 FASB adopting new GAAP & IASB rules on operating leases Installed base continues to age Workforce age becoming an increasing concern - Millennial retention proving challenging - Millennials generally not attracted to 30 year old technology And the Course Continues

4 What s the Impact? 3 On financial approvals - Cycle time - Approval process changes - Accounting On employee retention - Attracting & retaining young talent - Educational changes - Technological challenges On system technology - Accessibility & restriction - Upgrade vs. Obsolescence - Security and access Balancing Risk & Reward is Key

5 So What are You Hearing this Week? 4 Technology to modernize your control system Technology to manage the transition Technology to provide insights Technology to boost efficiency Technology to improve performance Technology to manage risk Technology for optimization Where is the HOW???

6 The Lifecycle Solutions & Services Offering Family Outcome Based Partnership Performance Contracting Spot Purchases Offerings purchased on a one time basis to solve todays needs Contracted Service Programs Offerings purchased on a contractual basis, typically 1-5 years that provide ongoing support??? Partnerships with customers that focus on delivering the support required to meet mutually agreed to outcomes with a fee adjusted schedule Comprehensive automation solutions with elements of financing, and services linked to asset performance So HOW do We Address this Problem?

7 Last Year We Announced Honeywell Evolution Services The industry s first holistic automation program! Outcome Based Partnership Performance Contracting Designed to help you evolve with or without CAPEX! Spot Purchases Offerings purchased on a one time basis to solve today s needs Contracted Service Programs Offerings purchased on a contractual basis typically 1-5 years that provide ongoing support Evolution Service Programs Contracted Service Program designed to enable migrations with or without CAPEX! Partnerships with customers that focus on delivering the support required to meet mutually agreed to outcomes with a fee adjusted schedule Comprehensive automation solutions with elements of financing and services linked to asset performance Customer Value Received Depth of Relationship This Year we Enhanced and Expanded Evolution Services

8 So What are Honeywell Evolution Services? 7 Targeted Solutions A Service Agreement - Provides your predefined hardware, software & maintenance - Includes the predefined, scheduled upgrades Single invoice billed on your schedule - Monthly, Quarterly, Semi-Annual or a One-time charge Variable term, typically 5 years - Can range from 3 to 7+ years Non-Cancellable Contract Auto-Renews at contract end for 6 month increments - Applicable to support agreement for Purchased solutions Can Enable Honeywell Proprietary Implementation by Honeywell International Inc. All rights Through reserved. CAPEX or OPEX!!!

9 What are the Options for Evolution Services? 8 Honeywell Evolution Services for HMI Assets - Specifically designed for migration of the PC s, Servers, switches and other assets at the HMI level - Provides a more secure implementation of these assets - Provides a basic level of ongoing cyber security & support Honeywell Evolution Services for Automation Assets - Can cover any or all of your automation assets - Provides long term system currency & support - Supports large, multiyear migration projects Scalable Solutions for Continuous Evolution

10 Honeywell Evolution Services for HMI Assets 9 Multiyear service agreement designed to keep your HMI assets current It provides you - The PC, Server, etc. upgrades you need - Hardware warranted for the contract term - Predefined maintenance & support - Maintains software at AGREED TO LEVELS! - Basic system hardening at install - Service node with Patching & Antivirus - Secure Media Exchange - An annual security audit & report A Single Affordable, Predictable Payment!!

11 Honeywell Evolution Services for Automation Assets 10 Multiyear service agreement aligned with your automation roadmap It provides you - The system upgrades you need - Predefined software maintenance & support - Predefined hardware maintenance & support - Maintains software at AGREED TO LEVELS! - Full change management & tracking - The ability to have remote diagnostics - A dashboard to monitor system operation - An annual health assessment to ensure optimal performance Affordable, Predictable Payments!!

12 What Benefits Do You Get with Honeywell Evolution Services 11 Keeps your software AT AGREED TO LEVELS!! Price increases fixed at the local CPI for contract term Honeywell Service Node & Performance Analyzers No need to worry about what software revision your system is running today Additionally with Evolution Services for Automation Assets you get: - Manage system changes with Trace Gold Package - Annual validation that the system is performing at optimal levels No Price Surprises!!

13 What Do You NOT Get with Honeywell Evolution Services? 12 NO BIG CAPEX bill*! NO BIG annual price increases! NO BIG One Time Upgrade fee! NO BIG year 1 cash outlay*! NO BIG obsolescence headaches! *Unless the purchase alternative is selected for Evolution Services for HMI Assets The Most Customer Friendly Honeywell Proprietary Program by Honeywell International Honeywell Inc. All rights reserved. Has EVER introduced!!

14 What s the Fine Print? 13 Evolution Services continues to mature. - Program, terms & content are being evaluated on an ongoing basis - Have your sales rep contact LSS marketing for clarification Options at the end of the contract - Do nothing - Enhance and extend - Return - Purchase Scaled rollout - Have your Honeywell Representative contact Aditya Kumar to understand the availability in your area Grab Yours NOW!!!

15 Three Offerings Three Different Objectives 17 Lifecycle Management Evolution Services Assurance 360 Contract Type Support agreement & payment plan for a future migration Migration agreement Support agreement Component ownership Customer Honeywell Customer Services provided Who is responsible for System performance? Who is responsible for System availability? SESP & Parts Management until a migration can be performed. Predefined services required to migrate and maintain an optimized system Whatever services are required to meet mutually agreed to outcomes Customer Customer Honeywell Performance Manager Customer Customer Honeywell Fee Schedule Fixed Fixed Fee adjusted based on performance Objective of Contract Support until you can upgrade Execute a migration Support & maintain your system Funding CAPEX/OPEX OPEX CAPEX/OPEX Why Put Off to Tomorrow, What You Can do Today?

16 Solutions for Very Different Customer Needs Assurance 360 Honeywell Evolution Services Assurance 360 is a support program Customer owns the system Service is not predefined, they are driven by agreed to outcomes Includes Performance Manager Honeywell is accountable CAPEX CAPEX or Evolution Services is a migration agreement Honeywell or the customer could own the system Services are predefined Performance is managed by the customer Fee adjusted schedule based on service level achievement Migrations are built into initial scope to ensure a supportable platform OPEX OPEX Customer is accountable No fee adjustments Migrations ARE the objective Honeywell Evolution Services is Designed to Deliver Migrations

17 Customer Expenditure Flow Comparison 19 Situations examined Traditional CAPEX Acquisition SESP customers Saved 5-10% over contract term Saved 20-30% year 1 Non SESP customers Saw up to a 15% increase over contract term Honeywell Evolution Services Expense Saved 40-60% year 1 Predictable Monthly Payments!