BUILDING IOT DRIVEN PLATFORMS

The NEXT LEVEL of INDUSTRIAL INTERNET

MAINTENANCE IS MAINSTREAMSuccessful platform business yields higher results than

maintenance

Source: goetzpartners client interviews B2B industries 2015/16

-10

0

10

20

30

40 IOT PLATFORMS

IOT MAINTENANCESOLUTIONS

t

PROFITABILITY COMPARISON (%)

(B2B) PLATFORM VALUE PRINCIPLES

Value adding service

s

Source: goetzpartners

Multi-dimensional, continuous value creation for all participants

PRODUCER CONSUMER

IOT PLATFORM EVOLUTION

TYPE OF VALUE PROPOSITION

Decision (Semi-)Automation

Decision Support

Transaction Costs

Search Support

DOMINANT BUSINESS MODEL

Source: goetzpartners

Usage Outcome

Transaction

COG-NITIVE

ANALYTICALINTELLIGENC

E

PROCESS AUTOMATION

MATCHMAKING

EXAMPLE 1: MATCHMAKING

Source: MakeTime, goetzpartners

MATCHING ALGORITHM & MARKET PRICING Project requirements Capacity availability Equipment & expertise Material availability Geographical location

UTILIZATION OPTIMIZATIO

N

SUPPLY CHAIN FLEXIBILTY

03/15 04/15 01/16 02/16

4,409,590

/HRSAvailable

All Machines EDM CNC Laser CNC Lathe CNC Mill

CNC Plasma Cutter CNC Router CNC Swiss-

TypeCNC Water

Jet CNC Punch

Source: Transporeon, goetzpartners

EXAMPLE 2: PROCESS AUTOMATION

Connects >1,000 shippers with >55,000 smaller carriers creating a new market Better utilization for carriers Lower freight rates for shippers

SHIPPER

LARGE CARRIERS SMALLER CARRIERS

EDI

EXAMPLE 3: ANALYTICAL INTELLIGENCE

Source: Siemens, goetzpartners

MINDSPHERE IOT CLOUD Open ecosystem for

machine building/manufacturing industry

High safety standards

ANALYTICAL INTELLIGENCE Real-time in-memory data

processing Rule-based decision

support

CONNECTIVITY Assets from Siemens and

other OEMs >300k industry devices,

millions of sensors

MIND APPS Siemens analytics apps SDK for customers

& third party developers

MINDSPHERE

IOT CLOUD

INDUSTRIALUSERS

DEVELOPERS

MindApps

Connected assets

Ecosystem building with 50+ IoT business partners

Acquisitive growth in leading AI disciplines

& industry sectors x-vertical industry

expertise

Source: IBM Watson, goetzpartners

LEVERAGING PLATFORM TECHNOLOY

ACROSS MULTIPLE DIMENSIONS

Use Case | CT Scan Interpretation

EXAMPLE 4: COGNITIVE INTELLIGENCE

Payor

Doctor

Patient BETTER & FASTER TREATMENT

(SEMI-)AUTOMATED DECISION SUPPORT

MEDICAL EXPENSE OPTIMIZATION

SHOULD OUR FIRM INVEST IN PLATFORMS?

1| Market inefficiencies and intransparencies

Unexploited business opportunities

# of addressable participants (demand & supply side)

# of inducible transactions

Technological capabilities Ecosystem capabilities Business model & case

Yes No

Yes No

Yes No

IOT BUSINESS ALTERNATIVE

IOT PLATFORM

Source: goetzpartners

SOLVES IDENTIFIED INDUSTRY PAIN POINT

2|SCALING POSSIBILITIES EXIST

3|MONETIZATION PATH IS TANGIBLE

KEY SUCCESS FACTORS

Source: goetzpartners

SCALE FIRST

MONETIZE LATER

NEW BUSINESS MODELS Flexible usage-based models Performance-based pricing

ECOSYSTEM BUILDING Ensure data access via own

sensors/partnering 3rd party engagement (external

developers)COLLABORATIVE APPROACH Joint, iterative development within a close

collaboration with customers

HYGIENE FACTORS Open, vendor-agnostic IoT platform

concept Ensuring data security & privacy

THANK YOU!