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Top 5 Priorities For a Successful IoT Initiative

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2 Dan Murphy VP Marketing ThingWorx a PTC Business Scott Johnson MBA, CEO & Co-Founder Devicify Robin Duke-Woolley Founder and CEO Beecham Research Ltd Todays Presenters

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3 Agenda: Trends Developing in M2M/IoT Today 5 Priorities For IoT End-to-End Solution for IoT Q&A

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January 14, 2015 Planning a Successful IoT Initiative Robin Duke-Woolley Founder and CEO Beecham Research Ltd.

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M ARKET T RENDS Some important trends developing now in the M2M/IoT market 1.The need for closer integration of Connected Device data with enterprise IT systems sharing data across the enterprise 2.Greater emphasis on creating new services from Connected Device data, not just traditional operational cost savings 3.These new services are essential for revenue generation for the business, so are more likely to be mission critical. M2M solutions overall are becoming more mission critical, even for service support as reliance on these increases 4.M2M solutions are moving from being tactical nice to have to strategic necessity. They are now visible to Executive Boards internally and to customers and public externally. 5.At a service level, M2M solutions have always been about improving the break/fix time. In future they will be more about optimization of operations moving from monitoring to control, requiring much larger amounts of real time data, processed and acted upon rapidly. 6.With data capacity increasing, there is a growing trend for richer applications associated with connected devices, also requiring more data, more frequently

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C ONCLUSIONS Some conclusions what this means in practice In response to need, M2M solutions are becoming increasingly sophisticated. This means that the platforms that support them are necessarily becoming more complex At the same time, such solutions are now increasingly visible and mission critical whether supporting customer services, manufacturing processes or new sales opportunities Growing awareness within enterprises of the key importance of connected assets and products for their future and the need for such solutions In the past, many enterprises have been tempted to create these solutions in-house: How hard can it be?, We have the technical resources and know our business better than anyone else... Most often, this has not worked out with much resource and time being wasted, with constant new development required and greater complexity becoming the norm. Greater use of externally managed platform services to support solution creation is becoming the way forward

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2014 Intuitive Control Systems, LLC. Transforming business for the connected products world.

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2014 Intuitive Control Systems, LLC. Business Process Maturing of an IoT Strategy 9 Product is just a start Build, store data, communicate Device Platform Communicate, share data, permission, build applications Business Processes Align permissions and systems, monetization processes, automate, innovate Device Platform Product/ Service Sophistication Value

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2014 Intuitive Control Systems, LLC. Connectivity is a Business Process 10 Connectivity is NOT a technology Its a fundamental business process uniting companies, products & stakeholders

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2014 Intuitive Control Systems, LLC. #1 Focus on Returns: Return on Connectivity 11 Traditional ROI focused on cost savings Easier to quantify but limiting Cost savings, revenue growth, doing differently Maximize your Return on Connectivity Look broadly for improvement metrics Will vary by industry, use case and company

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2014 Intuitive Control Systems, LLC. #2 Operational Efficiencies 12 Traditional Cost Savings Easier to quantify but limiting New visibility Move from guessing to knowing New automation Rule-based behaviors needed to support massive quantities

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2014 Intuitive Control Systems, LLC. #3 Real-time Data-driven Actions 13 Traditional Alerts and Condition Monitoring M2M, passive dashboards, emails or texts

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2014 Intuitive Control Systems, LLC. #3 Real-time Data-driven Actions 14 Feedback from devices to business systems Device conditions or data can initiate business actions

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2014 Intuitive Control Systems, LLC. #3 Real-time Data-driven Actions 15 Feedback from business systems to devices Process actions can initiate device updates

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2014 Intuitive Control Systems, LLC. #3 Real-time Data-driven Actions 16 Traditional Alerts and Condition Monitoring M2M, passive dashboards, emails or texts Feedback from devices to business systems Device conditions or data can initiate business actions Feedback from business systems to devices Process actions can initiate device updates

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2014 Intuitive Control Systems, LLC. #4 Enhanced Customer Experience 17 No longer about the best physical products Value shifting to data and experiences Determine the information potential of your products Product usage, ambient information, 3 rd party sources Build solutions that complement product, leverage data Fuse process, product and application building; ThingWorx Business Users Technical Users Customer Users

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2014 Intuitive Control Systems, LLC. Business Process Maturing of an IoT Strategy 18 Allow for learning Plan to adapt Let yourself start small Shouldnt be an all or nothing proposition Seek Scalability Dont build in limitations and obstacles, process support will become a requirement Device Platform Product/ Service Sophistication Value

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2014 Intuitive Control Systems, LLC. Maturing of an IoT Strategy 19 Allow for learning Plan to adapt Let yourself start small Shouldnt be an all or nothing proposition Seek Scalability Dont build in limitations and obstacles, process support will become a requirement Product/ Service Device Platform Business Process Sophistication Value Startup Accessible, Enterprise Capable

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2014 Intuitive Control Systems, LLC. #5 Business Model Innovation 20 Technical achievements will pressure current models Position to adapt and unleash value or suffer limitations Hardest, most vulnerable, most valuable Product achievements are a pre-requisite, this is the payoff Disruption is coming Change management will differentiate, process agility will be key

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2014 Intuitive Control Systems, LLC. CRM CPM SLMERP Other PLM Energy Traffic Sports Health Home 21 Devicify Radically Simplifies, Accelerates Products Defines a new software category; Connected Products Management (CPM) Interoperability between business and products without needing APIs Embeds a device platform inside a business application Allows the enterprise system to interact with products Includes the tools to extend our model into custom applications Business CPM Connected Product Customers

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2014 Intuitive Control Systems, LLC. Top 5 Priorities for a Successful IoT Initiative 22 #1 Focus on Returns Return on Connectivity #2 Operational Efficiencies Beware possible inefficiencies #3 Real-time Date-driven Actions From any point to any point #4 Enhanced Customer Experience Value is shifting to data and experiences #5 Business Model Innovation Most vulnerable and valuable step

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2014 Intuitive Control Systems, LLC. Build a smarter business, not just smart products. Maximize Your Return on Connectivity www.devicify.net

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Dan Murphy VP of Marketing

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25 The World is Moving to Smart Connected Products Every Industry is Experiencing Major Transformation 30% fewer truck rolls with remote diagnosis and repair Higher uptime and more output of equipment with remote monitoring Video transmitted to remote security personnel Lower energy bills with smart grid aware appliances Inventory tracked and replenished before supply is depleted Insurance premium reduced by $400 w/ Usage Based Insurance solution Content delivered on demand Road congestion reduced via analysis of traffic data from signs Software updates safely delivered without field service visit Patients monitored at home w/ less cost and fewer office visits Auto Consumer Products Industrial Equipment Industrial Machinery Medical Devices Medical Equipment Consumer Electronics Industrial Equipment Consumer Products Commercial Equipment

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26 Internet of Things- Value Curve Unconnected Fight fires Limited product feedback High cost of service Connect Remote access as allowed Fragmented information Reactive response to issues Service Remote access as needed Some proactive monitoring Service cost avoidance Electronic software delivery Predictive maintenance Monitor/report on services View/analyze product data Leverage usage data for new product enhancements Analyze Integrate Enterprise integration Configuration and warranty management Pay-per-use models/billing integration Track and locate /inventory management Innovate New revenue- generating capabilities Cloud-delivered, customer applications Replenishment management Remotely control products Compliance and audit reporting Mobile integration Cloud-to-cloud- to-mobile mashups Differentiate Offering New Business Models Optimize Business Processes World Class Service Business Insight Setting the Strategy for Next- Generation Business Models

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27 Lead Generation Account Management Up-sell, Cross-sell Usage-based Billing Warranty Management Point-of-Sale Payments Remote Service Predictive Maintenance Enhanced Customer Service Connected Manufacturing Intelligence Consumables Asset Tracking & Management Usage-based Product Design Remote Software Management Connected Quality Connected Enterprise Data from Connected Products Enables Optimized Processes CRMCRM SLMSLM SCMSCM ERPMESERPMES Product Cloud PLMPLM

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28 Conventional Application Development is Challenging Not designed to work with the unique and evolving requirements of IoT apps The Network Sensors, Devices & Equipment Application Development Fixed Applications Communications Elements Internet Mobile Networks COMMUNICATIONS ARCHITECT THE DATA MODEL INTEGRATE OR WRITE SERVICES DEVELOP DATA RELATIONSHIPS DEVELOP EVENT TRAPS AND QUERIES DESIGN AND BUILD INTERFACE COMMUNICATIONS ARCHITECT THE DATA MODEL INTEGRATE OR WRITE SERVICES DEVELOP DATA RELATIONSHIPS DEVELOP EVENT TRAPS AND QUERIES DESIGN AND BUILD INTERFACE COMMUNICATIONS ARCHITECT THE DATA MODEL INTEGRATE OR WRITE SERVICES DEVELOP DATA RELATIONSHIPS DEVELOP EVENT TRAPS AND QUERIES DESIGN AND BUILD INTERFACE Complex Programming Build Platform Services on a Project Difficult to Maintain/Evolve High Risk, High Cost Barrier to Innovation MANAGE CHANGE

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29 The Network Internet Mobile Networks ThingWorx Purpose Built for IoT App Enablement BUSINESS LOGIC 3D STORAGE ENGINE REST APIs SYSTEM SERVICE INTEGRATION COMMUNICATIONS BIG DATA ANALYTICS CLOUD SERVICES BUSINESS ENTERPRISE SYSTEMS Sensors, Devices & Equipment Communications Elements Application Enablement Dynamic Applications MASHUP BUILDER SQUEAL External System & Services Develop and Deploy IoT Applications 10X Faster

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30 Expertise in Multiple Vertical Markets Industrial Electronics & High Tech Commercial Equipment Medical Devices Life Sciences

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31 May 4 7, 2015 Boston, Massachusetts

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32 Questions? Visit www.thingworx.com for a list of upcoming webinars and eventswww.thingworx.com