About today’s virtual workshop session with both yogaman Murat from Software ag Streamsets 524mwhitingcrn of the session is the new normal digital or insignificant a very very topicaltheme at the moment and the guys have a fantastic presentation lined up for us this afternoon to speak about some of the work that they’re doing around transformation IOT and analytics but yo for those of you that have joined the sessions before you’ll know that the initial part of the session would be the presentation and followed by an interactive Q&A towards the end of thesession we have 60 minutes allocated I know the presentation will last around
45 to 50 so we will open up the Q&A as soon as we can towards the end of the session to ask questions you’ll see at the bottom of your screen there is a Q&A chat room and if you post the questions in there and I will do my best to prompt yoga number up when they come in and hopefully we can answer as many of them live in the session as possible and if anyone has any questions or any issues throughout please feel free to message me directly and Matt over to you guys thanks Daniel and also welcome to this industry IOT workshop from our site
it’s great to have your on line with us today in the next round about 45 minutes Morel and I will explain to you why the Internet of Things is all about implementing digital business models and how IOT platforms can help you shorten time to market and prove value quickly you will hear some about some of our customer cases and also sea life there most of our software inactions so that will illustrate that IOT can be used by everyone and not just developers if we now before we go into the IOT use cases and platform discussion I want to briefly spend
Some words on our company Software ag Streamsets 524mwhitingcrn we are data pioneers founded
In 1969 so more than 50 years old and at that time yeah we were starting a software business and database and data management which was quite innovative and since then we kept our passion of working with customers to turn data into value we are international company 4,700 employees roughly more than ten thousand customers in 70 countries headquarter adoption in Germany we’re doing roughly 900 million your revenue and have a very solid financial basis which is key to fund
our strategic growth areas in IOT is one of them now if we have a look at some of our IOT customers and you see examples here you can see the leading industrial IOT providers and telcos rely on COO milazzo T IOT which is the brand o IOT platform you can also see that we have a strong customer base in equipment vendor so that’s the smart connected pillars that it means makers andoperators of equipment in the area of self-service industry analytics we have a wide footprint and outstanding
reputation in process and batch industry with trend miner and you can also seehere that some of our customers are OEM that means white labeling our software whereas others are using it directly fortheir own purposes in the direct use cases companies like for example gardner-denver or Schindler deploy IOT to optimize operations or drive IOT enabled product innovation that means they are using IOT to build smarter
Products and higher value services so the white labeling we addressed earlier
At the resellers and service providers these companies rebrand our platform in order to launch and sell their own IOT services with their own go to markets good examples here are the telcos like Deutsche Telekom with their cloud of things which is a white labeled cumulus OT IOT raja telecom certainly adds the manage connectivity and the network and also they develop apps on top for specific verticals and use cases that depends on their own go to markets straw for example they attract utilities and in particular water management in Australia entity they push industrial equipment maintenance solutions and building management and advanced traceability solutions in logistics and push that into the Japanese and whiter APJ markets KPN and the Netherlands they are using
ku Milazzo T for container tracking for construction equipment tracking in real time even bicycle insurers use case they have an auto waste management solution and bortion a1 they are using kumahachi for cargo and asset tracking and condition monitoring in railways in our world is not just about technology it’s about establishing a data centric business strategy and new
digital business models are and will be written in software and data is the basis so software will become the prime source of innovation in every industry if you like it or not and the revolution has started we’re living in a connected global world with the proliferation of innovative chipset senses wireless and mobile networking technologies like a
Low palawan 5g cloud and edge computing and the convergence
II of OT and IT a plethora of new use cases and consequently business opportunities is arising only those companies that implement a digital strategy will survive as these will be able to innovate and differentiate themselves through software so due to a software based or at least software enhanced business model they will be able to adapt fast enough to new technology trends and market requirements for example of 5g based factory network or applying AI for anomaly detection in their production IOT as you know is booming and has a huge market potential analysts predict seventy five billion connected devices by 2025 and 60
trillion investment in industrial IOT over the next 15 years with a kegger of around 29 percent of the global IOT market and these billions of devices generate vast amounts of data and we allknow the value is in the data so you need software that means algorithm to turn that data into value and be able to offer smarter products and higher value services to your customers at Software ag Streamsets 524mwhitingcrn we call this vision the truly connected enterprise with its ubiquitous connectivity heterogeneous data sources and immense data volumes and there we see two main drivers number one the connected customer experience and number
Two everything as a service and nowadays the greatest increase in product and
Service innovation are created from a superior customer experience you know these companies that have the best customer experience normally win and furthermore the consumerization is driving more customers to prioritize the use of a capability or assets over its ownership and from that the truly connected enterprise results and considers everything as a service as the default business model for all new products and services and this is becoming the new reality let’s now have a look at they connected customer experience you all know Tesla even musk company producing electrical cars you can see a request from a customer for frank’s by a social media channel he said hey can you guys program the car once in park to move back
the seed and raise the steering wheel and you can see Elance reply you say i’ll good point we’ll add that to all cars and one of the upcoming software releases do you realize how different this is to the typical way our automotive companies are used to work and build and improve cars where it can take years from design to production and release of car and here’s see what happened at Tesla the requested feature was delivered only four months later through a software update to all Tesla cars there is no need to shitheel a separate appointment with the car dealer or garage to make this change customers simply woke up in
The morning with a smarter saver and more to tif car thanks to software so
This is a great example for superior connected customer experience and connected enterprises create connected products with such an outstanding customer experience this is leading to a disruptive innovation and extreme differentiation there’s disruption here refers to a significantly shorter innovation cycle you have four months instead of four years and tests largely to that Tesla is able to bring new innovations in the form software features much faster to the market and also easier to the market and the sious is more competitive and can grow revenues quicker for example they have other features a software update for increased acceleration costs 2000 US dollars or autonomous driving costs 8k US dollars right
that’s the subscription-based business where you can then upsell new features easily so Tesla is a great example thatshows how to leverage the power of software and connectivity these cars are connected you know to disrupt the traditional comm business I also want to give you an example from our IOT customer base Durer is a leading global machine and plant manufacturer with a high level of automation expertise the app it’s a difficult name t6q equipment analytics that’s the named your choose this app
is used for online quality control during the painting of cars algorithms analyze the incoming data such as a paint flow from the painting process in real time and detect anomalies this enables the operator to react immediately thus preventing further car bodies from being painted incorrectly yeah gorillas can be easily created by means of a graphical user interface without any programming knowledge you’ll see a live demo later
In the session so software enables the machine operator to to update the
Analysis and and to take new patterns into account just to give you some insights into the complexity we have in this use case 230 available signals per robot to gigabytes of data per Robert per day and this gives you endless opportunities for process monitoring so the app includes both current software technologies based on our IOT platform callosity and also der special expertise in the painting process and this combination is how der is offering efficient solutions for smart networking of the painting process and this is a digital innovation with such a digital innovation Duras turning paint shops into smart factories and this is giving the md attila g and innovation similar to the tesla case now let’s turn towards
the shift that we are observing in the market namely everything as a service customers prefer consuming a service over owning an asset for example Lexmark a company producing copiers and Printers that all know is transforming their business towards selling printing as a service rather than selling a printer to their customers another example is shown here in this slide got the Denver they are a leading global provider of high quality industrial equipment like compressors blowers pumps fueling systems and so on and rather than selling or renting the industrial equipment they want to offer it as a service to their customers for example compressed air as a service
Gartner Denver’s customers rely on the continuous operation of their industrial
Equipment whether they be blowers compressors or pumps in order to get there they need to connect the equipment to cloud-based IOT platform in this case callosity and monitored it’s used remotely without platform gardner-denver were able to successfully launch an IOT powered condition monitoring service to their global customers through their multitude of distribution and service partners with a very short time to market of only 6 weeks because it was aimed a were able with our Software ag Streamsets 524mwhitingcrn to do the branding and customization only by configuration no coding was required
furthermore they use new insights into the usage of the connected assets to reduce the equipment down times improve the pod replacement and also repair cycles but everything has a also comes with some implications number one your business model needs to be a subscription or usage based one in the past almost all companies prefer to receive full payment for products upfront but now things are changing
you know if you want to sell a machine along with some software this is normally getting more expensive and and customers are risk-averse right so now OEMs need to design this usage-based pricing and measuring and billing into their products and this user space financing and manufacturing has the potential to allow end users to purchase more expensive machines with software while reducing their risk on a new technology
So there’s also transfer of risk going on and another important point
If you offer your product as a service you need to have a superior service excellence to win and retain your customers in a subscription-based business it’s much easier for the customers to stop using your connected products and Software ag Streamsets 524mwhitingcrn and turn over to competitor so you need to continuously ensure that your machines and assets are running smoothly remember they got my tender case and for that reason you need remote management and monitoring capabilities that allow you to perform software and firmware updates easily over-the-air continuously analyze the usage of your devices detect fixes
and anomalies quickly finally proactively before your customers production is affected and engage in a much more transparent and direct way with your customers being a subscription business means that you land with a small IOT solution and then expand step by step in adding new use case an additional value through new apps and software enhancements like in the test like sample over time a superior
connected customer experience and the shift everything as a service are leading to a truly connected enterprise and this is the new reality you’re confronted with in your business and this truly connected enterprise touches nearly all areas of your existing enterprise you need to transform your enterprise to make it ready for the new connected digital world this starts with software to connect and manage devices goes towards gathering managing and analyzing the data integrating the new IRT device and data with your existing IT landscape
updating you go to market and sales toward selling products
As a service turning to subscription business with recurring revenues over providing the right customer experience and services with your new offerings to your customers and all this requires and everything as a service and digital mindset from your people in order to master the challenges of a truly connected world you need to be prepared to deal with the fast adoption of cloud-based applications many of them aim at praying operational efficiencies into your enterprise they are likely to pop up everywhere
in your company they might have been introduced without any governance from IT but for pure business and fast time to market reasons the end-to-end integration of applications devices clouds and data will be key in order to drive operational excellence and superior customer experience in 80% of the IOT projects 50% of the budget is usually spent on integration and finally innovation will be increasingly based on
Platforms and openness and flexibility of such platforms are key criteria to be
Successful in the future now let’s compare the approaches of number one building a custom IOT solution from scratch with using an IOT platform as a basis this slide illustrates that IOT is complex and you have to deal with a heterogeneity of different devices protocols connectivity options security decisions data and device management requirements which combination to select depends on your specific IOT use case it can also happen that you start with one approach and you might need to move to another one later because you need a much better scalability in your IOT uses like a master plan or you have to incorporate new hardware new networking technologies like 5g or new Software ag Streamsets 524mwhitingcrn trends like deep learning for example keeping your teams busy with understanding evaluating and implementing such phase functionality doesn’t help your business your customers will only recognize the added
value that you deliver in your apps along with your connected products the things on the top you customers will only recognize I’m sorry this value doesn’t come from the connectivity ordevice management or C but from the analytics that you apply on your IOT data the higher value data inserted actions that you derive for example a better animal detection that you add into your software pants or predictive maintenance feature that you add in your software or an integration into end-to-end manufacturing process on a better level of automation now this really matters and also the user experience that you provide in your IOT application and the ease of use of your overall IOT solution so the things on top of the iceberg
That’s what matters so you should focus yourself on leveraging your domain
Expertise and core competencies to drive innovation and differentiation by building IOT applications and solutions on top of a feature-rich IOT framework as this will give you a competitive advantage and accelerate your business the layers under the water here in the in the chart like theconnectivity and device management this will become a commodity and will be offered by a leading IOT platform vendors out of the box and you should rather consider them as building blocks which accelerate the development of your IOT apps besides the different protocols
api’s connectivity options there are many other things to to to look at how you store data you know there is data that need to be stored for shorter time frames longer time frames sometimes years there are different ways to store the data structured ways in a non structured in unstructured ways like document stores in data O’Lakes if you want contrast efficient long term storage there are different flavors of analytics that you need there you know some data needs
to be analyzed in real time the data can be stored and analyzed after the fact sensors and IOT devices generate time-series data so you also need to be able to look for anomalies and be able to visualize and explore time series data and you wanted to apply machine learning or restore data but then do the real-time scoring in in real time you know the scoring of them models in real time you want to visualize the data in dashboards and finally then integrate it with contextual data that sits in your IT systems in other cloudservices like a like a like a maintenance field service in the cloud you have your earpiece system they need to be integrated there are a lot of things to be done and and considered or
Do you want to expose api’s to your customers and partners or share data
With them this is where API portal and management comes into play and even you can monetize. The access to their data through an API portal you know then you have to take security into consideration from the beginning from the connectivityoptions over the data encryption secure data storage data segregation if you think about multi-tenancy authentication authorization and and and and you know there are many many flavors so it’s important that you build on top of an 9open and extensible architecture idly and we can see this in our customer base quite a lot you should establish a multi vendor multi-cloud strategy so if you can ensure flexibility and agility
for example we have customers that run our platform on AWS on Azure and Alibaba mmm. And who combined our offering with that form service from the hyper scalars you know so they use our Software ag Streamsets 524mwhitingcrn and store the data in Azure data Lake or in s3 or they
