THE 7 HABITS OF HIGHLY SUCCESFUL IOT IMPLEMENTATIONS

THE 7 HABITS OF HIGHLY SUCCESFUL IOT IMPLEMENTATIONS Bart Schouw MSc VP Technology & Digital Alliances Asia Pacific Japan Partner Summit 2018 4-6 February, Bali Grand Hyatt 2018 Software AG. All rights reserved.

OUTLINE 1. Introduction - A history lesson to keep in mind 3 2. Leaving the stage of "Why IoT" 11 3. How to start and be succesfull in IoT 17 4. Why Software AG - Cumulocity IoT? 36 2 2018 Software AG. All rights reserved.

OUTLINE 1. Introduction - A history lesson to keep in mind 3 2. Leaving the stage of "Why IoT" 11 3. How to start and be succesfull in IoT 17 4. Why Software AG - Cumulocity IoT? 36 3 2018 Software AG. All rights reserved.

OUTLINE 1. Introduction - A history lesson to keep in mind 3 2. Leaving the stage of "Why IoT" 11 3. How to start and be succesfull in IoT 17 4. Why Software AG - Cumulocity IoT? 36 12 2018 Software AG. All rights reserved.

IOT ENABLES BUSINESS VALUE ACROSS INDUSTRIES Lower costs Increase efficiencies Preventative maintenance Asset optimization Engage customers New customer services Better customer experience Increase customer retention Increase sales New business models Assets-as-a-service Staying competitive 14 2018 Software AG. All rights reserved.

IOT MARKET OVERVIEW 50 billion connected devices by 2020 40% growth in data generated per year 40 trillion Gb by 2020 $ 1 trillion Worldwide IoT revenue projected by 2020 $ 36 trillion Operating costs of key affected industries could be impacted by IoT 15 2018 Software AG. All rights reserved. For internal use only

SOFTWARE AG @ SIEMENS MINDSPHERE THE CLOUD-BASED, OPEN IOT OPERATING SYSTEM MindConnect Integration Service (wm Integration Cloud) webmethods Integration Cloud Bunch of On-premise Adapter MindConnect Adapter/Connector MindConnect IoT Extentions (Cumulocity) Standard Cumulocity Functionality Standard Cumulocity Releases Limited storage period of data in Cumulocity MindConnect API MindSphere Connector MindSphere Connector AWS S3, Salesforce, ServiceNow, AWS AWS Whitelabled wm Agent/ Adapter MindSpere Adapter IoT Devices supported by Cumolocity IT/OT (e.g. SAP) On Premise webmethods 20 2017 Software AG. All rights reserved.

OUTLINE 1. Introduction - A history lesson to keep in mind 3 2. Leaving the stage of "Why IoT" 11 3. How to start and be succesfull in IoT 17 4. Why Software AG - Cumulocity IoT? 36 21 2018 Software AG. All rights reserved.

END-TO-END IOT SOLUTION HAVE MANY MOVING PARTS IoT Endpoints IoT Edge Platform IoT Cloud Platform Enterprise Applications ERP Local Communication Gateway Edge Server Long-range Communication Integration SaaS CRM 25 2017 Software AG. All rights reserved.

NOT BE CONSIDERED IN ISOLATION Consumer Executive Patient CRM ERP BI Helpdesk Tech Support Finance Process Accessible by any one IoT Cloud Platform Integrate with any system Connect to any thing Automation Vehicle Monitoring Machine 26

Increasing Value & ROI USE CASES ALONG THE MATURITY CURVE Model Driven Data Driven Disparate Sensors and Initiatives, make sense of multitude of inputs, visualize and alert Proces Driven Advanced alerting and suggest actions to improve and correct, through proces integration Time Develop, predictive analysis, ML and DL Automatically take Corrective Actions 29

PHASE 1. DATA DRIVEN TRACKING AND TRACING - CONSUMER Example Customer Solution Cumulocity IoT plus Integration & streaming analytics Commercial Model Consumption based 30 2017 Software AG. All rights reserved.

PHASE 1. DATA-DRIVEN ACTIONS COLLECT DATA AND VISUALIZE - ENTERPRISE Example Customer Solution Cumulocity IoT for Device Management and Dashboard Application (Cockpit) Commercial Model Consumption based 31 2017 Software AG. All rights reserved.

PHASE 2. PROCES DRIVEN INTRODUCE NEW PROCESSES TO CAPTURE VALUE OF DATA SUPPLY CHAIN AUTOMATION & AUTOMATED BILLING FOR DISTRIBUTORS (ERP INTEGRATION) Example Customer About Lyreco Lyreco is one of the leading global distributors of office and work supplies, delivering 235,000 boxes every day at a 99.4% service rate from 400,000 m2 of distribution centres using 1,750 vans and drivers. Business Need Nespresso customers expect the highest quality from the product, the machine and the service. Lyreco sought to ensure that every Nespresso customer would always be served the highest quality whenever they desired, and in the most ecological way. Solution Cumulocity VendMe vending machine, stock and operations management application Dedicated Edition of the Cumulocity IoT Platform Vending machine telemetry devices and cellular connectivity Fully integrated to Lyreco SAP Enterprise Resource Planning (ERP) system Formulation and deployment of vending operations specific business rules Android and iphone smartphone vending operator app Set up and available in 2 weeks The Cumulocity solution for our Nespresso Capsule Dispensers helped us to reduce out-of-order and out-of-stock situations to a minimum. Raoul Marechal, Technics and Operations Manager, Lyreco Benefits Cost-Effective Service Assurance Avoid out-of-stock / out-of-order Operational Cost Savings Fully automated supply chain Future Proof Open APIs ensure easy extensions and no lock-in Solution Cumulocity IoT plus Integration Server and BPM Commercial Model Cloud & On Prem. Mainly consumption based 40 32 2017 Software AG. All rights reserved.

PHASE 3. MODEL DRIVEN DATA IS ANALYZED FOR PATTERNS/ MACHINE LEARNING Example Customer Solution Cumulocity IoT plus Machine Learning for predictive maintenance Commercial Model Cloud / consumption based plus data analysed 33 2017 Software AG. All rights reserved.

Flexibility & Sophistication DIFFERENT DEPLOYMENT MODELS FOR DIFFERENT STAGES IoT SaaS Fast Entry Self-service, out-of-the-box Pre-defined solution accelerators IoT PaaS Fan Out (Departmental) High productivity, fast go-to-market Smart rules Focus on business users IoT Framework Scale Out (Enterprise Level) Cross divisional end-to-end company processes Coding, professional developers Existing and new IoT applications fully interwoven IoT Growing Maturity Level over Time 35 2018 Software AG. All rights reserved.

HOW SIMPLE IOT IS WITH CUMULOCITY? CONNECT DEVICES Connect a new device and view its data in a new platform CREATE DASHBOARDS Create a new real-time interactive dashboard CREATE ANALYTICS Create and validate common analytics rules INTEGRATE APPLICATIONS Integrate with business apps to create an end-to-end solution < 2 mins < 90 secs < 90 secs < 3 mins 36 2017 Software AG. All rights reserved.

Development & Operational Cost WE ARE COST EFFECTIVE 5 million IoT devices 5 years support 40% Enterprise grade In-House Solution Commercial IoT Platform Source: Build, Acquire and Buy: An AEP Analysis, MachNation 2016 37 2017 Software AG. All rights reserved.

WORKING BACKWARD WHAT DO I MEAN BY THAT What use case do we go for? What insight do I need? What model will give me that insight? Which measurements does such a model need Which sensors can provide me this measurements 40 PREDICTIVE MAINTENANCE Remaining Life 2018 Software AG. All rights reserved. When will a part fail? Vibration Velocity & Acceleration Sensors

BLUEPRINT LAMBDA ARCHITECTURE Event Sources Connect Speed Layer Fast Track UM APAMA Streaming Analytics Serving Layer Processes Cloud UM Universal Messaging Device, Cloud, EIT & PIT Connect Universal Messaging Batch Layer Slow Track Terracotta Context Enrichment Predictive Model Execution (PMML) Real-time Views/Queries Batch Views / Queries Alerts Human APIs Consumers Event Store / HDFS Batch Analytics Predictive Modeling Machine Learning 43 2018 Software AG. All rights reserved.

OUTLINE 1. Introduction - A history lesson to keep in mind 3 2. Leaving the stage of "Why IoT" 11 3. How to start and be succesfull in IoT 17 4. Why Software AG - Cumulocity IoT? 36 47 2018 Software AG. All rights reserved.

WHY PARTNER WITH SOFTWARE AG ON IOT Independent, Connected, Trusted 1. Independent: Supports multi-cloud and multi-vendor strategies. Embrace current and future technology choices 2. Connected: Continued leadership in connecting people and processes, services and devices 3. Trusted: Proven IoT planning & delivery methodology as well as technology 48 2018 Software AG. All rights reserved.