Working Toward an Outcome Based Economy John Elliott Managing Director of Mobility Product and Offering Development, Accenture Digital October 27, 2015

Accenture at Oracle OpenWorld October 25 – 29, 2015

Working Toward

an Outcome

Based Economy

IoT expected to be driven the enterprise

The Industrial Internet opportunity

Economic Value-Add by 2020 by Industry Sectors (in $billions)

The Industrial Internet of Things (IIoT)

will bring new economic growth,

reinventing sectors that account for

almost two-thirds of world output.

Estimated economic gains globally $12tn

$254

$254

$186

$186 $136

$136

$119

$102

$85

$68

$68 $51

$68 Manufacturing

Healthcare

Insurance

Banking & Securities

Retail & Wholesale

Computing Services

Government

Transportation

Utilities

Real Estate & Business Services

Agriculture

Communications

Other

Source: Gartner, Forecast the Internet of Things, Worldwide, November 2013

Typical problem statements for our clients

ACHIEVE

operational

efficiency

MOVE FROM

product focus to

service focus

DISCOVER

unconventional

revenues

Industrial IoT adds incremental value in the near term and is transformative over the

long-term

From Product to Service Outcome

Operational

Efficiency

• Asset utilization

• Operational cost reduction

• Improvement worker

productivity, safety and

working conditions

New Product

& Services

• New business models

• Pay per use

• Software based services

• Product / Service hybrids

• Data monetization

Autonomous

Pull Economy

• Continuous demand-sensing

• End to end automation

• Resource optimization

and waste reduction

Outcome-based

Economy

• Pay per outcome

• New connected

ecosystems

• Platform-enabled

marketplace

• Industry blur

Pull

1. Breakdown Breakdown maintenance, reactive mindset

Connected asset management

Intelligent Industrial Products, Processes and Services

1

2

6 Be

ne

fits

Capability Maturity

5

4

3 2. Planned Breakdown maintenance includes prioritization in maintenance planning

3. Condition Condition monitoring and preventive maintenance to increase equipment reliability

4. Preventive Preventative maintenance to avoid breakdowns, includes prioritization

to plan maintenance activities

5. Predictive Focus on reliability & continuous equipment improvements

using monitoring techniques & bad actor reports

6. Collaborative Focus on integration and collaboration

Connected Worker

Collaboration Tracking Safety

Device & Sensors

• Hardware and software components of a connected industry

Edge Gateway (intelligent device)

- Edge Analytics, Edge & Secondary device security

Reusable Industry Enablers

• Monetization Services

• Application / SW / FW management

• Device Inventory and Device Management Notification Services

Device Identity & Security

Machine Learning External ML

Business Service by Context

• 3rd party reusable specific services

(industry content)

• 3rd party reusable common services

(payment, telecom, notification)

Business Service by Enterprise System

• Enterprise reusable integration

• Extension to enterprise specific

integration

Common Business Service Exposure /API Manager

• Business Service Coordination and exposure

• IoT Entity Management (Enterprise, Customer and

Device)

• Business Rules Management

• Provisioning Manager

Core Platform Business Logic S

erv

ice

Mo

nito

ring

& M

ete

ring

Se

rvic

e A

dm

inis

tra

tio

n C

on

so

le a

nd

Assu

ran

ce

Industry specific interaction (user interface)

Industry Specific Business Logic

Common Business Service Exposure /API Manager

Data Ingestion / Real Time Event Driven Data Processing

Pla

tfo

rm A

dm

inis

tra

tio

n C

on

so

le

Connectivity and Network

Reusable Industry standards and protocols (MQTT, AMQP, DDS…)

Reusable Telecom and Satellite Integration

Reusable Long range Network (Telco, Satellite…)

Reusable Local Network (WiFi, Bluetooth, NFC … Device & Sensors

• Hardware and software components of a connected industry

Edge Gateway (intelligent device)

- Edge Analytics, Edge & Secondary device security

Clo

ud

& I

nfr

astr

uctu

re S

ecu

rity

Acce

ss

/Id

en

tity

Ma

na

ge

me

nt

Data

Se

cu

rity

& S

yste

m I

nte

gri

ty

Devic

e &

Con

ne

ctivity

Se

cu

rity

En

viro

nm

en

t Ma

na

ge

me

nt &

NO

C

Eco

syste

m a

nd

De

ve

lop

er M

an

ag

em

en

t

Edge / Control

Operations

Data & Analytics

Applications

Enterprise / Business

1

2

3

4

5

Accenture IoT Reference Architecture IIC Reference Architecture as Organizing Framework

Se

rvic

e M

on

itorin

g &

Me

terin

g

Se

rvic

e A

dm

inis

tra

tio

n C

on

so

le a

nd

Assu

ran

ce

Pla

tfo

rm A

dm

inis

tra

tio

n C

on

so

le

En

viro

nm

en

t Ma

na

ge

me

nt &

NO

C

Machine Learning External ML

Data Ingestion / Real Time Event Driven Data Processing

Reusable Industry Enablers

• Monetization Services

• Application / SW / FW management

• Device Inventory and Device Management Notification Services

• Business Service Coordination and exposure

• IoT Entity Management (Enterprise, Customer and

Device)

• Business Rules Management

• Provisioning Manager

Industry specific interaction (user interface)

Industry Specific Business Logic

Common Business Service Exposure /API Manager

Eco

syste

m a

nd

De

ve

lop

er M

an

ag

em

en

t

Business Service by Enterprise System

• Enterprise reusable integration

• Extension to enterprise specific

integration

Control Domain (“Edge”)

Collection of functions performed by industrial control systems

• Reading data from sensors

• Applying rules and logic

• Exercising control over physical systems through actuators

Operations

Provisioning, management, monitoring and optimization of the systems in control

domain

Information Domain - Data & Analytics

• Data – ingestion, quality, transformation, multi-tiered storage

• Analytics – in-motion, at-rest, cloud based/edge offload

Applications

Collection of functions implementing application logic that realizes specific business

functionality

• Logic and Rules

• APIs and Portal(s)

Business Domain

OT / IT Integration point

• ERP

• CRM

• Other Enterprise (Payments, Billing, etc.)

Connected ships

for Hyundai

Hyundai Heavy Industries, a

world leading shipbuilder, and

Accenture are collaborating to

design a ‘connected smart ship’

that will enable ship owners to

better manage their fleets and

achieve potential operational

savings through the application

of digital technologies.

Services are expected to

include real-time alerts and

warnings, predictive

maintenance and more efficient

scheduling.

Accenture partnered to leverage RFID

location triangulation technology to

support real time visibility of over 1800

contractors and equipment for a major

industrial shutdown

Location visibility provides for real time

decision making as well as detailed

analysis of the information for trending

and improvement analysis. The

capabilities support a balance of value

propositions which improve safety,

productivity and proper cost auditing

for vendor work management.

Major Mining Company

Connected Mine

Illustration

Presentation

IoT Platform

Data ingestion

In-motion analytics

Data storage

At-rest analytics

Alerts

IIoT Solution

Equipment

Trucks

Shovels

Crushers

…

Dozers

Loaders

From dozens of

manufacturers…

Hardware

Solutions

Fatigue Monitor

Cameras

Piezometers

…

Weather Monitor

Slope Monitor

From dozens of

h/w vendors…

Software

Solutions

Fleet Mgmt

Teradata

Vehicle Telemetry

…

SharePoint

OSI PI

From dozens of

s/w vendors…

Sensors & other

data sources

Connected Mine

The Connected Worker and Retail Assist

Automatic “Do not disturb” rescheduling

But a sensor realises the

room is occupied…

The IoT service collaborates

with the Property

Management System to

automatically reschedule her

tasks.

Result: Undisturbed guest

A housekeeper is on her way

to her next room clean…

Retail Assist

Copyright © 2015 Accenture All rights reserved.

Associate

searches the

store floor

Customer

waits until

associate

returns

Associate

continues the

search in the

back room

Customer

continues

to wait

Frustrating & time-consuming customer experience without solution

She asks the store associate if they have a different size and color…

Scenario Customer walks into a store and sees some merchandise she likes…

19

Associate scans

bar code & within

seconds sees on

inventory item is

available

Premium customer service experience with solution

Associate retrieves

item & shows

customer matching

items via the app

Associate is able to

quickly see the item

is available online

or in a nearby store

In store

beacons/wayfinding

technologies

identify ‘Opted-In’

customers

Key focus areas to create value around IoT

Leverage Mobile

Technology

2

Rethink your

Partner Ecosystem

6 Focus on your

IIoT Workforce

4

1 Invest in end-to-end

security

Bring down barriers

to data integration

3

Anticipate the Shift

from Product to Service

5