Building, marketing and selling repeatable solutions

Noam King, IoT Sales Strategy Lead,

CDS, Microsoft / 17 Jan 2019

Here’s what we’re covering

What is a repeatable

IoT solution?

Building repeatable

IoT solutions to

support a

transforming business

model

Microsoft Go to

Market Support

Programs

Co-Selling with

Microsoft

What is a repeatable IoT solution?

What is a repeatable IoT solution?

Device to cloud solutions that address a specific use case either

horizontally, cross industry or vertically within an industry.

They get built once, and are sold to many customers.

Start with the business model

Outcomes from a Business Model Workshop

Define value

proposition

Understand

organizational impact

Assess

organizational capability

Secure

business stakeholder

buy-in

Input to

Architectural Design

© Strategyzer

Business Model Canvass

Revenue StreamCost Structure

Partnerships Value Proposition Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

Revenue StreamCost Structure

Partnerships Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

Business Model Canvass

Value Proposition

Business Value

© Strategyzer

Business Model Canvass

Revenue StreamCost Structure

Partnerships Value Proposition Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

© Strategyzer

The Customer

Business Model Canvass

Revenue StreamCost Structure

Partnerships Value Proposition Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

© Strategyzer

Organizational Capability

Organizational Capability

Partnerships

Resources

Key Activities

Organizational Capability

© Strategyzer

Revenue StreamCost Structure

Partnerships Value Proposition Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

Costs

Business Model Canvass

1. Solution Architecture

tells us what services will be used

2. Business Volumetrics

determines scale of messaging & services

To estimate costs we need 2 things:

What’s the cost of an IoT Solution?

Cost Structure

Costs

Azure Pricing Calculator

Cost Model

Revenue Stream

Business Model Canvass

Cost Structure

Partnerships Value Proposition Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

Revenue and Pricing

© Strategyzer

Cost-Plus Pricing

understand my costs,

add my marginValue-Based Pricing

how much value am I bringing to the

value chain?

Pricing Models

How will I price my IoT solution?

Revenue Stream

Revenue and Pricing

Outcome as a Service Pricing

Understand relationship between

operational costs & customer

outcomes.

© Strategyzer

Business Model: Predictive Maintenance

Revenue StreamCost Structure

Partnerships Value Proposition Customer

Relationships

Customer

Segments

Resources

Key Activities

Channels

• Hardware (Machine engineering,

Sensors etc.)• Connectivity

• Software Dev

• Data Science• E2E Integration

• Security

• Engineering

• Operations (Process, Data)• Project Management

• Business Analysis

• S/W development

• H/W device partner• Cloud

• Security / auditing

Brand

• Association with innovation

New Revenue Opportunities

• Improved SLA

• Product utilisation insights

Customer experience / Insights

• Process insights / remote

monitoring

Efficiency / Cost Reduction

• Reduced downtime

• Improved service planning

• Increased machine utilisation

Product improvement / reliability

• R&D insights (common faults,

machine utilisation)

• Direct sales force

• Distributors• Resellers

• Aerospace

• Automotive• Medical

• Oil & Gas

• Medical

• Concept Development & POC

with 5 “friendly” customers

• Potential move to subscription-based “as a service” model

• Revenue model – ensure revenue scales at least as fast as costs do and ensure we are incentivised only on factors under our control

• Cloud costs depend on approach (e.g. predictive maintenance cost greater than

remote monitoring due to compute load)• Costs can be estimated once architecture and business volumetrics confirmed. How

costs scale also confirmed in POC

Technical Architecture

An Architectural Design Session is a one to multi-day engagement driven by

technical sales that maps technical solutions to customer opportunities.

Designing the technical architecture

Architectural Design Session Outcomes

✓ project scope

✓ solution requirements

✓ technical implementation approach

✓ risk assessment

✓ resources needed

✓ cost and timeline

ADS Types

Solution-focused

Envisioning

Proof of Value (PoV) scoping

Architectural Review

Target Audience

Business sponsors to articulate needs

Technology executive team to understand impact

Lead architects, developers, DBAs, operations, etc.

What is an Architectural Design Session (ADS)?

Key Deliverables

Vision/Scope document

Architecture Assessment document

Proof of Value (PoV) project plan

Proof of value

Vendors need to address customer barriers

Source: Bain and Company

2016 2018 Top 3 barriers

18%

18%

19%

20%

20%

23%

23%

24%

30%

32%

45%

Network constraints

Vendor risk

Transition risk

Vendor lock-in

Data portability

Interoperability

Legal/regulatory

Technical expertise

IT/OT intergration

Unclear ROI

Security

% of respondents (top 3 barriers)% of respondents (top 3 barriers)

20%

21%

21%

17%

23%

25%

21%

25%

29%

28%

42%

Network constraints

Vendor risk

Transition risk

Vendor lock-in

Data portability

Interoperability

Legal/regulatory

Technical expertise

IT/OT intergration

Unclear ROI

Security

What are the most significant barriers limiting you from adopting IoT/analytics solutions?

Common Proof of Concept Blockers

Avoiding the Proof of Concept Trap

Lack of executive buy-in

Lack of resourcesProhibitive cost to

scale

Business value is

unclear

Difficult to justify short-term

impact of pilot

Is this a qualified opportunity? Use BANT (Budget, Authority, Need, Timing) criteria.

Proof of Value Checklist

Complete the Business Case with the customer stakeholders

Get commitment ahead of time that if a PoV proves the desired business outcome,

steps to progress towards full production.

Examples

Machine X is currently serviced reactively (as it breaks) resulting in production halts whenever it goes offline

Manual-based production scheduling and sequencing generating problems in quality (rework, scrap) that are difficult to trace

Examples

7% increase in production line uptime

12% reduction in rework/scrap

Examples

Instrument Machine X with basic remote monitoring to trigger when certain thresholds are exceeded

Add sensors to detect anomalies in production materials

Identify customer stakeholders

Principle Solution Spec

Vince Park박근호 부장Azure IoT 솔루션영업

Microsoft IoT solution support

Business Model Workshop

Architectural Design Session

IoT Accelerate

Reference Architecture

Tune-up

Case Studies

Broad Partner Enablement

Amplification

Partner-ready BOM

Seller quota retirement

One Commercial

Partner Catalog

Microsoft IoT Solution Support

Build-with Go To Market Co-Sell

IoT Ecosystem Partners

ISV, OEMSIPartners

Solution Aggregators

IoT Accelerate co-funding

Concept development

Proof of Value (POV)

Pilot/Proof of Business (POB)

1

2

3

Energy

Retail

Factory/Industrial

Security & Surveillance

Healthcare

Buildings

Target verticals

Events

Webinars

Evidence

Tune up

Go To Market Build Ready

GTM: Microsoft tools to help scale your solution

IoT in Action Webinar Schedule

Energy Retail

Manufacturing

Security &

Surveillance

Healthcare

Smart

Buildings

July - September October - December January - March April - June

Smart Cities

Technical

Bootcamp

Technical

BootcampAgriculture

Azure Sphere

All available on-demand

Tune-up examples

Foundational

document providing

guidance for how to

message the partner

solution to

customers.

Customer-ready

slides with a strong

solution story,

intended to start the

conversation with

customers, help

drive interest in the

solution, highlight

differentiators, and

communicate

business value.

Customer-facing

one-pager

summarizing key

points about the

solution and

communicating

solution value—

great for e-mailing

to customers.

Helps sales teams

quickly understand

the partner

solution. It includes: ▪ Elevator pitch

▪ Understanding the

scenario

▪ Types of accounts to

target▪ Next steps

▪ Partner sales

contacts

Co-selling with Microsoft

Why Co-sell?

Microsoft’s platform

grows as a result

Enterprise sellers get to

introduce new innovation to

their customers

Partners get introduced

to new customers in

new geographies

WIN WINWIN

Microsoft Go to

Market Support

Programs

Co-Selling with

Microsoft

Building repeatable

IoT solutions to

support a

transforming business

model

Here’s what we covered

What is a repeatable

IoT solution?

What’s next?

TransformingYour Business

Cloud & IoT Makes our LifeSafer & Smarter

Chris Lee / 이근우상무

Chris Lee / 이근우Senior Director

Business Insight to Global Security Market

Smart Cities Cloud Services

Telco

Intelligent Azure Cloud Service Architecture

Alarm Service

Device Service

Video Service

Real-Time Decision

Data Analytics & BI

Video Surveillance

Data Service

Cognitive Service

We deliver Intelligent VSS Cloud Platform with

InferenceHYBRID CLOUD

PRIVATE CLOUD PUBLIC CLOUD

Failure Management

Intelligent

VSS Client

Innodep Cloud

Service

Image Frame

Video & Meta Data

Feedback

ActionIoT Data

IoT Data

Feedback Action

Trigger

ActionAnalytics

Intelligent Azure Cloud VSS Smart Home

Beyond Cloud & IoT for Digital Security

Name : Chris

Grade : Gold

Gender : Male

Age : 48

Result

Innodep Cloud ServiceVideo DataMeta Data

Intelligent Azure Cloud VSS Smart Retail

Video & Meta Data

Customer Satisfaction

Beyond Cloud & IoT for Digital Security

Innodep Cloud Service

Dashboard

StatisticalInformation

StatisticalDicision Making

Intelligent Azure Cloud VSS Smart Manufacturing

Business Innovation

Workmanship efficiency

Process Innovation

미래의통합관제솔루션

49

Visualize All Connected

Remote Monitoring andAnomaly Detection Case on “L”Jeffrey Kim / 김정열

Jeffrey Kim / 김정열CEO / Thingscare Inc.

Conventional Service

68% of call is NOT H/W failure - simple action in emergency visit

2nd visit due to lack of information in some case

Unnecessary visit cost

Hard to reduce MTTR (Mean Time To Repair)

Dispatchin most case

request for repair

Dispatch2nd visit

repair, w/part

No visual info

Only voice of

customer

Available to aware fault quickly

Check up historical status

Helpful to access to root cause

Reduce unnecessary visits and MTTR

20%Dispatches cost saving in a case

Status, Usage

Remote Control

Alarm Monitoring

Remote DiagnosisRepair

AnalysisAlert

Dispatchin case of necessity

New Service

Big Data Analytics

You can improve the operating

rate of Digital Signage

and customer satisfaction.

Increase

Operation Time

Reduce Dispatches

• Improve service profitability

• Increase first-visit fix rate• Warranty cost reduction• Reduce maintenance cost

• Improve equipment effectiveness

Monitoring

Anomaly

Detection

(Big Data Analytics)

Preventive

Maintenance(Remote Control

or Schedule visit)Normal

Operation

Early

Detection

Treatment

(Remote Control

or Emergency Visit)

Benefit – Reduce Dispatches, Increase Operation Time

24/7Availability

Service Progression

Phase 1

Phase 2

Phase 3

Phase 4

Remote Monitoring

Anomaly Detection

Advanced

Remote Access

Preventive Maintenance

Sell +more

Things Things +more

What are the +more?

WORTH IT

Proactive

Understand the contextConvenient

Relieved

Trusted

Smart

Care

Why did they choose Azure?

• Reliable for global service

• Scalability and ductility

• Security offerings

• Elastic and evolving

• Analytics and Intelligence

Hakju KangCEO, UlalaLAB, Inc.

Cloud–based Smart Factory Platform

Hakju Kang | UlalaLAB CEO17 Jan 2019

강 학 주 (Hakju Kang)

UlalaLAB CEO,CTO

Smart Factory

97.2% (Korea)

Manufacturing Industry StructureSource : Machina Research STRACORP

81.6%(Global)

91.4%(Korea)

17.8%

0.6%

Small Manufacturer

Medium Manufacturer

Large Manufacturer

Small and medium sized manufacturers are account for 80% out of whole manufacturers

Obsolescence of equipment Unformatted Process Manual focused production

In case of Smart Factory for SMEs, Rather than system integration through factory automation

To ensure production efficiency and reasonable operation and competitiveness,It is important to have an effective methodology for making decisions.

Begin from collecting and analyzing DATA

?

?

??

?

DATA

Information

Decision

GOAL

Quality

Cost

Delivery Time

Flexibility

I OT D E V I CE C LO U D BI G D ATAM A CH I N E

L E A RN I N G

[1. 수집된 시계열 데이터] [2. 데이터 전처리 샘플링] [3. 데이터 전처리 분석] [4. 오작동 데이터 분석]

[5. 유효데이터분석및추출] [6. Standard 데이터학습] [7. Standard 데이터학습] [8. 오작동및불량기준생성]

➢ Between Sensors

➢ Between Facilities

➢Facility Malfunctioning Analysis (predictive maintenance)

➢Facility Status Analysis

➢Production Condition and Operation Status

Thank You

With

Chris Lee

Senior Director

INNODEP

Jeffrey Kim

CEO

Thingscare Inc.

Hakju Kang

CEO

Ulala Lab

Noam King

IoT Sales Strategy Lead

Microsoft

Vince Park

PSS (Principle Solution Specialist)

Microsoft

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