From Elevators to People Flow

Ari Virtanen Senior Vice President

KONE

Digitalization impact?

Selection of the Pope

3 Confidential | © KONE Corporation | Ari Virtanen

Digitalization can be very disruptive

4

1996

Market Cap: 28 BUSD

Employees: 140,000

2012

Bankrupt

Employees: 17,000

April 2012

Market Cap: 1 BUSD

Employees: 13

5

Industrial Internet is a phenomenon compared to Industrial Revolution (Source: GE)

Changes in business environment

2000 2020 Competition within industry Competition across industries

Product leadership as a target Leading position in ecosystem as a target

Technology innovations to drive business Business innovations, enabled by technology

Internal R&D only Open innovation, value co-creation

Competence requirements known Competence requirements changing

Implications to KONE

Our vision

KONE delivers the best People Flow® experience

8

Outside of Buiding

Parking hall

Entrance Lobby Main landing

Elevator Escalator Stairs Corridor Office apartment

Customer perspective

Destination

Access Information

Monitoring

Monitoring

Lighting

Entertainment

Gates Escalators

Locks

Access

Automatic doors

Information

Destination Elevators

HVAC

KONE People Flow Intelligence

Safety

So far so good, but what’s next?

Effective ecosystems become a necessity

3rd party Cloud 3rd party

Cloud 3rd party Cloud

solutions

Open interfaces In cloud

3rd party systems & developers

Open interfaces in buildings

CE

NTR

ALIS

ED

MA

NA

GE

ME

NT

Confidential | © KONE Corporation

Conclusions

Digitalization and Industrial Internet are huge opportunities for proactive players, passive ones will suffer – be they companies or countries Moving towards ecosystems will require new ways of working and doing business in open economy