iot business value

1. DRIVING BUSINESS
VALUE WITH THE
INTERNET OF THINGS
Shawn Kelly
Vice President, Corporate Strategy
December 7, 2017

2. 2PTC Proprietary and Confidential – Not for Distribution
Title: Driving Business Value with the IoT
Abstract
• According to analyst firm IDC, consensus is in – over 90% of global manufacturers report
that IoT is 'strategic' or 'transformational' to their business and have deployed or plan to
deploy connected systems in the next 12-24 months. With endless opportunities to innovate
using the IoT, where do you start? In this session, PTC will share top IoT use cases based on
hundreds of customer interactions to showcase the creative ways manufacturers are
capitalizing on the IoT opportunity to drive business value across the enterprise.
• In this session you will hear about:
– Insight into the current state of IoT adoption in Manufacturing
– Use cases that drive value across marketing and sales, product development,
manufacturing, service, IT, and end customers
– How and where Augmented Reality experiences are emerging with the IoT in
Manufacturing
– How PTC can help you unlock value from the convergence of the physical and digital
worlds
SESSION TITLE AND ABSTRACT

3. 3PTC Proprietary and Confidential – Not for Distribution
PERSONAL INTRODUCTION
Shawn Kelly, PTC Vice President of Corporate Strategy
• Responsible for leading projects focused on key strategic
initiatives for PTC
• Inclusive of primary and secondary research to better
understand markets, trends, technologies, end user needs, etc.
• Over 15 years of professional experience in Corporate Strategy
and Finance for Technology, Life Sciences, and Financial
Services companies
• MBA from the Tuck School of Business at Dartmouth College and
a BS in Finance from The College of New Jersey

4. 4PTC Proprietary and Confidential – Not for Distribution
Over 90% of global manufacturers report that IoT
is ‘strategic’ or ‘transformational’ to their business
and have deployed or plan to within the next
12 to 24 months
– IDC

5. 5PTC Proprietary and Confidential – Not for Distribution
PTC IS A $1.2B GLOBAL TECHNOLOGY COMPANY
REVENUE BY VERTICAL
Life Sciences
5%
Industrial Products
32%
Federal, Aerospace & Defense
15%
Electronics & High Tech
16%
Automotive
14%
Retail & Consumer
8%
Other
10%
REVENUE BY REGION
Americas
43%
Europe
37%
Asia Pacific
20%
FAST FACTS
6K
employees
300K
ecosystem developers
$1.16B
FY17 total revenue
29K
customers

6. Need resized image
Fundamentally the PHYSICAL and
DIGITAL worlds have converged
Video

7. 77
Smart Manufacturing/
Industry 4.0
BROAD IMPACT OF PHYSICAL & DIGITAL CONVERGENCE
7
IoT/Smart,
Connected Products
Connected Service/
Maintenance
Smart Cities, Fields, &
Worksites

8. 8PTC Proprietary and Confidential – Not for Distribution
• € 2.43 bn in FY2014
– 60% new machinery,
40% parts, services, and
consumables
• Approximately 50%
market share in printing
presses
• 12,500 employees
• 170 countries
HEIDELBERG EMBRACES DIGITAL TRANSFORMATION

9. 9PTC Proprietary and Confidential – Not for Distribution
EVOLUTION OF REAL-TIME ASSET MONITORING
Dial-up
technician
diagnostics
Remote
Diagnosis
service
eCall
Service
Predictive
Monitoring
service
Late 1990’s
BusinessValue
2004 2008 2012

10. 10PTC Proprietary and Confidential – Not for Distribution
“The only way you survive is you continuously transform
into something else. It's this idea of continuous
transformation that makes you an innovation company.”
– Ginni Rometty

11. 11PTC Proprietary and Confidential – Not for Distribution
OPERATIONAL EFFECTIVENESS IS KEY DRIVER OF IOT
Optimize Operational
Performance
• Availability; uptime
• Throughput; cycle time;
lead time
• Production quality; defects
and rework
Improve Risk Management
• Non-compliance events per
year
• Product quality; returns
• Recalls; warning letters;
audits
Reduce Costs
• R&D Expense; total
development cost
• Manufacturing cost; energy
usage; scrap
• Service cost; warranty cost;
first time fix rate
Increasing productivity is cited as the top influencing factor in decision to create
IoT Strategy In manufacturing according to recent IDC survey data. The leading
use cases today are for ‘improvement of manufacturing processes’ (61.3%),
followed closely by ‘product testing and quality control’ (58.2%).

12. 12PTC Proprietary and Confidential – Not for Distribution
STRATEGIC DIFFERENTIATION BRINGS IOT TO CUSTOMERS
Improve Customer
Experience
• Retention rate; utilization
rate
• Customer satisfaction; net
promoter score
• Complaints; response time;
resolution time
Differentiate Product or
Service Offerings
• Time to market
• Product-as-a-Service
models
• Customer lifetime value
Enable New Revenue
Streams
• Percent profit from new
products/services
• Attach rate; up-sell/cross-
sell revenue
• Market share; growth
44% of current IoT adopters say that IoT has enhanced their customer or user
experience, making it the most popular benefit seen according to Vodafone’s
2016 IoT Barometer cross-industry study.

13. 13PTC Proprietary and Confidential – Not for Distribution
“Data now stands on par with people, technology, and
capital as a core asset of the corporation.”
– Prof. Michael Porter &
Jim Heppelmann

14. 14PTC Proprietary and Confidential – Not for Distribution
IOT OPPORTUNITIES ACROSS THE ENTERPRISE
Product
Development
Operations /
Manufacturing
Marketing
/ Sales
Service /
Support
Information /
Operational
Technology
Customer
Usage Based
Requirements
Design for
Connectivity
Connected
Operational
Intelligence
Real-Time Asset
Monitoring
Real Time Market
Insights
New / Flexible
Business Models
Remote
Monitoring
Predictive
Maintenance /
Service
Rapid IOT &
AR/VR App
Development
Data Integration
& Analytics
Remote
Operation
Usage &
Performance
Benchmarking
Digital Service
Instructions
Digital Design
Review Digital
Instructions
Remote Service
Product and
Asset
Connectivity
Customer Self
Service
Connected
Consumable
Resupply
Inventory &
Material Tracking

15. 15PTC Proprietary and Confidential – Not for Distribution
USE CASE EXAMPLE: PRODUCT DEVELOPMENT
Product
Development
Operations /
Manufacturing
Marketing /
Sales
Service /
Support
Information /
Operational
Technology
Customer
• Company: Manufacturer of fluid motion
control solutions serving power, oil,
chemical, gas industries
• Use Case: Usage Based Requirements -
use real-time operational data from
industrial pumps to improve design of the
impeller and other elements of the pump
systems
• Benefits: Automated root cause analysis,
reduced warranty claims, higher quality
design, reduced number of returns,
reduced development and service costs,
improved customer satisfaction

16. 16PTC Proprietary and Confidential – Not for Distribution
USE CASE EXAMPLE: OPERATIONS AND MANUFACTURING
Product
Development
Operations /
Manufacturing
Marketing /
Sales
Service /
Support
Information /
Operational
Technology
Customer
• Company: Grove City facility connected
its locomotive manufacturing plant to
optimize the efficiency of the operation
• Use Case: Connected Operational
Intelligence - gain real-time visibility into
the plant’s condition in areas such as
labor efficiency, machine health, and
production attainment
• Benefits: Increased visibility led to simple
changes such as staggering work orders
to avoid unnecessary downtime, leading
to a 10-20% improvement in efficiency

17. 17PTC Proprietary and Confidential – Not for Distribution
AR USE CASE: OPERATIONS AND MANUFACTURING
Product
Development
Operations /
Manufacturing
Marketing /
Sales
Service /
Support
Information /
Operational
Technology
Customer
• Company: Bosch Rexroth CytroPac
hydraulic power unit is a revolutionary
Industry 4.0 enabled solution for machine
tool design
• Use Case: Performance Dashboards &
Alerts – ability to monitor the smart,
connected product and product systems
with KPI’s in real time
• Benefits: Visualizing digital insights in the
context of the physical environment
leads to increased operator efficiency
and ability to proactively problem solve
before issues arise

19. 19PTC Proprietary and Confidential – Not for Distribution
USE CASE EXAMPLE: SERVICE AND SUPPORT
Product
Development
Operations /
Manufacturing
Marketing /
Sales
Service /
Support
Information /
Operational
Technology
Customer
• Company: Manufacturer of construction
and mining equipment, diesel and
natural gas engines, industrial gas
turbines, etc.; provides support and
service to network of dealers worldwide
• Use Case: Remote Monitoring & Service,
Digital Service Instructions - remote
service and administration of equipment;
combine service documentation with
sensor data to deliver service instructions.
• Benefits: Drastically increased technician
efficiency and first-time-fix rates, reduced
costs for service organization

20. 20

21. 21PTC Proprietary and Confidential – Not for Distribution
PHYSICAL
WORLD
DIGITAL
WORLD
30 year heritage in the
DIGITAL definition,
software, and lifecycle
management of things
~$1B technology
investment connects to
the PHYSICAL world and
enables new experiences
PTC UNIQUELY POSITIONED TO ENABLE OUR CUSTOMERS

22. 22PTC Proprietary and Confidential – Not for Distribution
OPPOSITE FORCES MAKE THE STORY COMPLETE

23. 23PTC Proprietary and Confidential – Not for Distribution
PRODUCT
LIFECYCLE
MANAGEMENT
PARTNER
SOLUTIONS
CLOUD| HYBRID| ON-PREM
INDUSTRIAL
INNOVATION
PLATFORM
PTC’S FIELD-PROVEN PRODUCTS & TECHNOLOGIES

24. 24PTC Proprietary and Confidential – Not for Distribution
THOUGHT LEADERSHIP ON INDUSTRIAL DIGITAL INNOVATION
“Smart, connected products
raise a new set of strategic
choices about how value
is created and captured, and
how companies secure
competitive advantage as the
new capabilities reshape industry
boundaries.”
“Smart connected products are
not only redefining competition
but how we run companies across
the value chain. New kinds of
cross functional integration and
coordination are necessary, and
whole new organizational units are
being created.”
“There is a fundamental
disconnect between the
wealth of digital data available
to us and the physical world in
which we apply it. AR solves this
problem by putting information
directly into the context in which
we’ll apply it.”
November 2014 October 2015 November 2017

25. 25PTC Proprietary and Confidential – Not for Distribution
• IoT is happening, with over 90% of manufacturers
using IoT within the next 12-24 months
• Companies should understand whether they are
looking to optimize their current offering or truly
transform and differentiate their business
• It is important to identify a specific set of use
cases to solve for based on what you’re looking
to achieve
• Find new ways to innovate in your organization
by collaborating across teams and exploring new
technologies and use cases
SUMMARY