MANUFACTURING

PRODUCT DEVELOPMENT

FINANCE

POINT OF SALE

INFORMATION TECHNOLOGY

MARKETING

Plant and Asset MonitoringIn-factory sensors that measure and communicate (in real time) conditions of the plant reduce mistakes and improve uptime. Ex: GM uses sensor data to measure humidity and determine when it’s too humid to paint an automobile. Sensors connected to energy and surveillance systems are used to reduce costs and increase security.

Smart Data CenterHas open source distributed data processing frameworks and cloud based technologies for cost-effective storage and scalability. The cloud allows the Smart Corp to leverage on demand processing power and stream processing applications to help enable the real time analysis.

Security and Privacy“Data democratization” magnifies data security and privacy challenges. In 2013 botnets were used to send 750k malicious emails from connected household appliances. 50% of companies surveyed said they were not ready to secure an ecosystem of connected devices.

Technology PartnershipsClose to 60% of organizations are using partnerships in their IoT solution. 10% use acquisitions or develop APIs to build out their IoT. Honeywell uses APIs that allow developers, retailers and product integrators to create custom applications used with their Wi-Fi thermostats.

Predictive vs. Preventative MaintenanceSensors on factory machines enable Manufacturing to practice predictive maintenance. Small variations are noted immediately and adjustments can be made. In 2012 GE launched Predictivity, a line of IoT services to help connect equipment data to mobile devices and predict maintenance needs.

Real Time AnalysisManufacturing can dramatically improve response time with data at thesource. Real time collaboration increases the production speed. Lido Stone Works connected its design center in Italy with the fabrication shop in New York. Now “one person can complete inventory in a day. It used to take 4 people a week,” says owner Elliot Mazzocca. Revenue increased 70%, productivity is up by 30% and travel costs were cut by $500k.

Use SmartManufacturing 13%EfficiencyRating 82%Fewer ProductDefects 49%Customer Satisfaction 45%

Investing in enhanced IT security 71%Investing in big data 64%Investing in Internet of Things 49%

Inventory EfficiencyStores are connected directly with back-end analytics and warehouse systems. Scanners give real-time information to manage inventory. Stores can become virtual showrooms. Or be virtual. Tesco Homeplus, a supermarket chain in South Korea, set up a virtual store in a subway station. Customers used their phones and QR codes to buy groceries, which were delivered to their homes that same day.

Store AnalyticsThe smart retailer is able to tap into technologies of IoT, wifi, and GPS to see much about shopper behavior. The robust analytics end up looking like traditional web metrics. The smart store can perform A/B testing, make custom offers, and change its window display based on changes in these analytics.

Smart AssociatesCustomers will leave a store empty handed if they don’t get the help they need. The smart store has sales associates equipped with mobile devices that can help find products – both in-store and online – as well as finish out transactions and take payments from anywhere in the store.

New Product ServicesIoT provides an opportunity to create new products and services. Ex: Amazon’s smart fulfillment process allows them to offer new services like same-day and Sunday delivery for some items. This service gives businesses the ability to add or change products remotely and real-time. Imagine a fast-food-chain sending an automated cooking time update for a new menu item instead of sending out an engineer to each store.

ConnectivityCompanies must consider how new products will connect to the IoT based on the particular device, how it will be used, where it will be used and its data bandwidth requirements. They must also decide what part of their products can or should be re-programmable by tech savvy and layman users alike.

Internet–Like UsabilityWeb-like usability now applies to the IoT connected products. Smart thermostat leader Nest is continually monitoring customer usage behavior and feedback; regularly tweaking the balance of what the product could do and what it should do.

In the B2B space, field technicians can remotely take payments and make immediate up-sells on location with the customer. They can also better service their products, creating more customer satisfaction.

“Access to networks of sensors and remotely-controlledobjects by enemies of the United States, criminals andmischief makers.” – US National Intelligence Council

90%OF CUSTOMERS WILL LEAVE A STORE EMPTY-HANDED IF THEY DON’T GET THE HELP THEY NEED

11%OF STARBUCK’S TRANSACTIONS ARE MADE THROUGH THEIR APP ON CUSTOMER’S MOBILE PHONES

10%REDUCED COSTS THROUGH IMPROVED VEHICLE USAGE AND DRIVING QUALITY

78%SAW CYBERSECURITY AS THE BIGGEST PRIORITY

88.5%EXPECT THIS TO INCREASE OVER TIME

86%OF THEIR CUSTOMERS HAVE TAKEN EFFORTS TO MASK THEIR DIGITAL PRESENCE

40%OF COMPANIES USE CUSTOMER INFORMATION GATHERED ONLINE FOR TARGETING

$140 BILLIONWILL BE INVESTEDIN IOT MANUFACTURINGOVER THE NEXT 5 YEARS

Opex FlexibilityFinance can now lease on an operating basis what they previously had to buy, reducing costs. Daimler Automotive used IOT to create FleetBoard, which allows a per usage measurement of its fleet trucks. Sensors in the vehicles inform how the truck is driven, and insurance premiums can be adjusted accordingly. Through FleetBoard, customers have reduced costs 10% through improved vehicle usage and driving quality.

Cost Control Thanks to IoT implementations and data analytics, Finance has much more visibility into the profit and loss. Microsoft used IoT to cut costs at its own facility according to Quentin Clark, the head of the data platform group. “By Implementing Internet of Things control systems and big data analytics at our headquarters campus we were able to spot aberrations in our energy usage, such as a garage that had air conditioning.”

Accurate ReportingA big concern of the CFO is reliable and accurate reporting. Linking data systems straight from the source to headquarters through IoT reduces that risk. Finance relies less on individual excel spreadsheets, subject to human error and potential problems. This means business leaders have a clear and accurate view of key financial performance metrics.

HOW THE SMART CORPORATION IS IMPLEMENTING THE INTERNET OF THINGSThe IoT has been described as “game changing,” a “disruptive innovation,” and “the most exciting thing since the Industrial Revolution.”

Hyperbole aside, this will impact every department of your business. Take a look at how IoT is used in the Smart Corp today.

BY 2020…THERE WILL BE 26 BILLION CONNECTED DEVICES

40%OF ALL DATA WILL BE M2M GENERATED

30%OF OPERATING COSTS FOR BUSINESSCOMES FROM ENERGY EXPENSES

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Product is the MediaWith smart products, the product can become the media. Diageo Spirits ran a Father’s Day promotion where consumers used smart phones to scan the QR codes on bottles of whiskey which generated a customizable video greeting for Dad.

Custom Targeting A smart product collects data about how, where and when it is used. With this data and analytics tools layered on top of that, marketers can make offers based not just on demographics but by individual behavior and needs. Your smart car would deliver a message that you needed an oil change along with the wait time of the closest garage, and a 20% off coupon.

Increased EffectivenessThe access to data and to the customer provides real benefits to marketers. Companies can reach their customers in previously inaccessible places. The marketing can be incorporated into the social flow of everyday life. This is presumably less interruptive, more natural and thus more effective.

Product development is making products that are smart and connected, the product becoming more of a service than an object.

IOT

MATURITY OF IOT SOLUTIONSBY INDUSTRY$2.7-$6.2 trillionPREDICTED IMPACT OF IOT BY 2025

42%OF COMPANIES DO NOT PROVIDE IOT SOLUTIONS

27%OFFER REMOTE OPERABILITY SUPPORT