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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