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IOT DISCUSSION

JULY 2016

Go-To-Market Position: Connecting People, Machines and Data

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Confidential

Customer-centric IoT solutions that drive brand loyalty & revenue growth

CustomerOwnership

CustomerBehavior

ProductHealth

RemoteDiagnose

CustomerLoyalty

Actionable Insights based Predictive Analysis

Market position for offerings.Most service providers arefocusing on product-centricdevice strategies.

IoT/CV Implementation

MobileVoice Email Chat SMS Social

Commerce & RevenueManagement

Payment ProcessingTaxationPayment Bank IntegrationRevenue Distribution

Customer Experience &Technical Support

Telematics Contact CenterTech SupportCustomer SupportCRM Integration

PartnerMS Azure IoT Suite POC – CV + Mobile Solution (JAPAC)

Web/Mobile App

Document DBStorage Blobs

Logic AppsLogic AppsEvent HubStream

AnalyticsIOT Hub

Power BIAzure ActiveDirectory

ConnectedDevices

IoTPortal Suite

Consumer PortalUsage-Based MarketingRetention MarketingAcquisition MarketingOmni-ChannelAdvanced Analytics/BigData

Acquisition MarketingRetention MarketingSubscription MarketingConsumer PortalShopping CartAnalyticsOmni-Channel With DigitalMarketing

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Confidential

Integrate your marketingplatform

IoT Solutions (Automotive Connected Vehicle Example, e.g. BlueLink)

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Confidential

Commerce &Rev Mgmt

Payment ProcessingTaxationPayment BankIntegrationRevenue Distribution

CustomerCare

Telematics ContactCenterTech SupportCustomer SupportCRM Integration

Storage DB

EventHub

StreamAnalytics

DeviceHub

EnterpriseBI

IdentityMgmt

Portal / MarketingSuite

Consumer PortalUsage-Based MarketingRetention MarketingAcquisition MarketingOmni-ChannelAdvanced Analytics/BigData

WirelessConnectivity

DeviceMgmt & Gateway Hub

CRM /Subscription

MgmtPackaging & PricingCustomer Mgmt/DataVehicle DataSubscriber Data

OEM CRMSystem

Customer CRMVehicle DataSales & ServiceCustomer PreferenceReporting

OEM ContactCenter

Customer SupportTechnical Support

PC

IC

ompliant

Screen-pop

Data

Sync

OEM Environment

Mobile

Voice Email Chat SMS

Social DigitalOmni ChannelMarketingConsumer PortalAgent PortalOEM PortalShopping CartDashboardAnalytics

Monthly HealthMonitoring &

reporting

OnlineCommerce

Safety &Emergency

ServicesPOI Services

LocationTracking &Marketing

OEM/TSPProvider

ProvisioningVeh. Crash NotificationCV Services

Solution Functionality (Built)

Confidential

Device Gateway Hub - Hub Managing/Communicating with Connected Devices – Enterprise IOT Hub• Device Master - Master record for each device designating subscribers and features enabled (typically stored in the Operational

Data Store). In the case of connected vehicle these records will include, year, model, trim, accessories, and color of the vehicle thedevice is in.

• Operational Data Store - High speed, high uptime, real-time database used by apps and the vehicle to validate if a given user has avalid subscription for a given feature to be accessed or performed.

• Device Management - Responsible for interacting with the devices to facilitate self registration and configuration of the devices tosupport the features indicated in the Device Master and Operational Data Store.

• Device Security - Responsible for enforcing the device and network security policies such as network segmentation, virtual privatenetwork, and device keys.

• Message Encryption - Responsible for enforcing the message encryption/decryption policies such as MD5, sequencing, tokens,and keys.

• Device Commands - Responsible for receiving requests from the vehicle and Subscription Management System, validating,authenticating, authorizing, translating, encrypting/decrypting, sending, confirming receipt, processing confirmation, and retrying perbusiness needs.

• Event Processing - Responsible for monitoring the sending and receiving of messages to the deice and subscription managementsystem and triggering actions based on predefined rules. For example a corrupt automatic crash notification (ACN) message from avehicle can trigger an alert to the call center to check the location of the vehicle and if the device fails to respond the agent can thenlook up the last geo location in the wireless network and then dispatch emergency personnel to that location.

• GEO Location - Routinely receives and logs the device geolocation in the Operational Data Store to be utilized by services likegeo-fencing, speed alert, and opt-in data clients.

• Data Collection - Responsible for querying, collecting, and logging the data utilized in marketing, opt-in data clients, and internalengineering.

Solution Functionality (Built)

Confidential

Subscription Management Functionality• Customer Master - Maintains the contact details of the various subscribers of services. Details range from name, address, email,

phone, twitter handle, FB reference, preferences, and apps installed.• Product Catalog - Maintains the product names, durations, prices, features, and revenue recognition rules for subscriptions as defined

by the marketing department by a myriad of elements such as year, model, color, accessories, and owner going as finite as by VIN.• Product Validator - Validates that any subscription products selected meet the defined business rules for pre-requisites of base

subscriptions and time.• Subscription Management - Manages the start and end dates of subscriptions including their transition from trial to paid and timely

renewal.• Promo-codes - Manages the inventory of approved promocodes to discount by price or extend duration.• Feature Master - Manages the inventory of available features by year. Model, trim, and accessories to ensure only compatible

features are represented or assigned to subscriptions.• Order Orchestration - The Subscription Management System initiates and monitors the features requested as they are sent and

provisioned on the Gateway/Hub and subsequently to the device to ensure billing and revenue recognition do not commence until theservice is working correctly and available for use.

• API Integration - The Subscription Management System provides the capabilities to provide API access including conversion andtranslation from REST to SOAP, SQL, and Proprietary protocols.

• Call Center Screens - The Subscription Management System provides the screens used in the contact center to support emergencycalls, information calls, and roadside assistance calls.

• Knowledge Base - The Subscription Management System serves and manages the contact center knowledge base to ensureanswers to frequently asked questions are always at hand and quickly accessible.

• Trouble Ticketing - The Subscription Management System serves and manages the trouble ticketing system used to track customerand subscription issues through to resolution.

• Credit reason codes - The Subscription Management System stores and manages the credit and cancellation reason codes whichcan be shared for reporting and analytics.

Solution Functionality (Built)

Confidential

Billing and Revenue Management Platform• Billing Master - The Billing and Revenue Management System stores and maintains the billing relevant details such as

taxation nexus, payment tokens, and billing history.• Card Tokenization - The Billing and Revenue Management System provides the PCI compliant mechanisms to securely

capture and tokenize credit and other payment methods and then use those tokens to collect payment.• Payment Processing - The Billing and Revenue Management System manages the payment collection process from

triggers to send pre payment collection reminders and payment method update reminders, transmitting the paymentrequests to the payment gateway, triggering payment success/failure emails, payment retries, and feature disable fornon-payment.

• Retry to Write-off - The Billing and Revenue Management System manages the payment retry process and relevantcommunication triggers through to write off.

• Tax Calculation - The Billing and Revenue Management System manages the storing and update of tax tables forcommunications and sales tax and provides an API that provides the applicable tax for a given amount in a specific taxjurisdiction.

• Tax Reporting - The Billing and Revenue Management System can maintain a log of tax calculations and then reportthem out by tax jurisdiction to be used as back up for sales/communications tax remittance.

• Revenue Settlement - The Billing and Revenue Management System can calculate and track revenue sharing forsubscriptions based on billing or payment receipt.

• Revenue Recognition - The Billing and Revenue Management System stores and manages the revenue recognition ofthe subscriptions and payments to ensure accurate and concise GAAP accounting.

Solution Functionality (Built)

Confidential

Reporting• Revenue - The Billing and Revenue Management System provides concise and accurate reporting of revenue

recognition per generally accepted accounting procedures (GAAP).• Transactions - The Billing and Revenue Management System can provide reporting by transaction including processing

fees.• Credits - The Billing and Revenue Management System can provide reporting of credits and promocodes by use and

monetary value.• Processing - The Billing and Revenue Management System provides reporting of the processing fees incured for all the

various entities involved.• Payouts - The Billing and Revenue Management System provides the reports of revenue sharing payouts.

We will integrate this with your marketing platform for marketing campaigns and channel management.

Useful Market Info

IoT Market Structure and Major Players (2016)

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ConfidentialSource: ABI Research

IoT Market Structure Value

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ConfidentialSource: ABI Research

• In 2024, total market value from IoT is estimated to reach $400B with global CAGR of 42%.• Market value from data processing/specific added value services could be almost x3 bugger

than cloud and hardware values combined.

IoT Market by Type

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ConfidentialSource: ABI Research

IoT Market by Type

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IoT Services Spend by Industry (2013-2020; Millions of Units)

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ConfidentialSource: BI Intelligence

IoT Units Installed Base by Category & Subcategory (2013-2020; Millions of Units)

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ConfidentialSource: BI Intelligence

IoT Estimated Business Revenue from Software and Services

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ConfidentialSource: BI Intelligence

Projected Business Model Changes due to IoT (by 2020)

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ConfidentialSource: Forbes

IoT Spend by Major Industry (Percent of Revenue)

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IoT Spend by Major Industry

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Average Spend on IoT

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IoT Value Chain – Estimated Value Contribution by Category

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Technologies that will have the greatest impact in driving business transformation

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IoT Benefits/Challenges

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IoT Monetization Opportunities

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The Most Active IoT Investors

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VC’s ranked by unique IoT investments 2010-2015