The IoT-CSX Transformation

The IoT-CSX Transformation Making Machine Data Valuable for Customer and Business

What is IoT?

Tele

mat

ics Intelligent Devices

IoT M2M Connected

Dig

ital

Industrie 4.0 Mo

bile

Predictive Analytics Smart

Big Data

Datability

Data Science

PaaS

Prescriptive Analytics

Cloud

Sensors

Stages of the IoT Transformation

M2M Machine-to-machine involves the communication between machines to improve productivity and safety.

IoT Internet-of-Things involves making the data from connected products available online for monitoring and reporting. Connected THINGS are a pre-requisite for IoT.

CSX - 2 Steps Ahead Connected Service eXperience involves using the sensor data in real-time to trigger 1:1 interactions between the sales, customer care, service and the customer.

1

2 3

50%

40%

30%

20%

10%

0%

The IoT Adoption Curve

Innovators Early Adopters Early Majority Late Majority Laggards

<20% of the world´s largest 1.000 manufacturers have M2M, <10% have IoT, >3% have CSX.

>$2.700.000.000.000 will be invested in IoT by 2020.

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5 IoT Stockholm.pptx

75,000,000,000 connected devices by 2020.

Why now?

Drivers Enablers

Consumerization of Corporate IT

consumer habits influencing workplace

Mobile 90%+ adoption rate

Cloud scaleable, low cost storage

Analytics powerful and real-time

Competition global competition forcing new USPs

The Gartner Hype Curve

„Where´s the money!?“

2,7 zetabytes of data today, and 99% is latent.

IoT CSX Story

Performance and usage data is acquired and transmitted every x seconds.

Data from many connected devices is aggregated and stored

When the data indicates an issue that can cause a problem or opportunity, a case is created, a resolution is selected and assigned to the proper actor.

Interventions are performed to resolve the issue: 1. Customer Care provides the

operator tips and instructions, 2. Sales & Marketing proactively

sends the customer offers and orders, and/or

3. Technical Service is dispatched to perform maintenance or repair.

4. System sends messages to the machine directly.

The value of sensor data is maximized when it is used in

real-time to automatically trigger actions.

1

2

4 5

The resolution is recorded. Outages and accidents are prevented, sales are captured, and customer dissatisfaction is prevented.

6

Data is analyzed in real-time to identify issues.

3

The Capgemini 5-A Model for CSX



IoT Maturity Assessment, Architecture Framework & Project Plan

Functional Layer Description Technology

Action (A5) A task is automatically created for sales, contact center, or service.

ERP Integration, Contact Center, Field Service Management, Mobile Apps

Assignment (A4) A „Next Best Action“ is automatically generated.

Knowledge Base, Expert System, Product Information System

Analysis (A3) Reports and dashboards are produced, relationships and anomolies are identified.

Analytic Tools

Aggregation (A2) Data from mutliple, different sources are consolidated.

Big Data, In-Memory Database

Acquisition (A1) Data is created, collected, and transmitted.

Sensors, Gateway, Communication

Business Applications for IoT

Industry 4.0

Asset Management

Logistics & Supply Chain

End-Customer

Decrease Energy Costs Decrease Loss & Theft Decrease Misuse & Accidents Improve Efficiency & Productivitiy Decrease Assets

Decrease Unplanned Downtime Decrease Inventory Costs Decrease Labor Costs Decrease Cost of Waste Decrease Costs for Parts & Supplies Decrease Shipping Costs Extend Machine Life Improve Productivitiy

Decrease Energy Costs Decrease Mishandling & Loss Improve On-time Delivery

Grow After-Market Sales Decrease Misuse & Warranty Costs Decrease Accidents Offer Value-Added Services Improve FCM Improve Product Development Improve Customer Satisfaction

INT

ER

NA

L E

XT

ER

NA

L



Performance. „Improve output 2% by opening air

vent „A.“

Sales. „You need a new A27 fuse in 96

hours.“

Safety. „Avoid accidents by closing

the lid before activating the

machine.“

Environment & Sales „Decrease emissions by

using our new synthetic lubircant.“

Productivity. „This module will fail in 7

hours. A service technician is already

on the way.“

Productivity & Sales. „Your hopper will be empty in 3 hours.“

Efficency. „“Combine parts in trays to reduce

tray inventory and reduce conveyor

usage.“

Service & Sales. „Order parts or schedule service. This module has not been

turned on in 2 days.“

Safety & Productivity. „The unit will over-heat in 3 hours. Add coolant or turn-off.“

Safety. „Schedule training. This unit is not

being operated properly.“

Business Cases | Automotive



Productivity „Change the fan belt in 6 days to

prevent A/C from failing.“

Environment. „Improve your fuel efficiency by shifting before 2.200

RPMs.“

Performance. „Extend the life of

your vehicle and get more power by using higher octane fuel.“

Performance. „Deactivate ECO Mode to get more power for

passing.“

Safety. „Avoid another accident by maintaining a

5 meter distance.“

Service. „Stop ahead. Roadside

assistance is behind you.“

Sales. „Upgrade to a 5 series to get the

performance you need.“

Economy. „Save money by down-

shifting instead of breaking.“

Sales. „Change your tires in 2 weeks to get

improve performance and ensure safety.“

Service. „Add coolant to prevent

over-heating.“

New Revenue Models for Machine Data

• Priority SLAs. The SLA or guaranty of the future will be pre-emptive. Instead of a 24 hour response time, the manufacturer will offer to service a product before it breaks and before the customer repotrs an issue. This service level will have a price.

• Personalized Rates. Companies will offer pay-for-use, where price or rates reflect

actual usage and behavior. Customers will opt-in to save money.

• Factory-as-a-Service or Product-as-a-Service. Products will be free. The

company will replace (or complement) the one-time sale of a product with recurring revenue to support the customer. Customers will subscribe to services in order to get tips to save fuel, improve performance, lower operating costs, and prevent accidents.

• Data Remarketing. Products will be free. The data generated by the product will be

packaged, sold and re-sold to third-parties. This revenue will more than offset the cost of the product, because it is recurring, and the marginal cost of the data is almost zero.

CSX Success Stories



Street Lights Vehicles Production Equipment Shopping Point-of-Sale Trees

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About Capgemini With more than 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini

The information contained in this presentation is proprietary. Copyright © 2013 Capgemini. All rights reserved.

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