1 Bosch Software Innovations Customer Magazine March 2013 Issue 02 InnovateIT Enabling Business Success in a Connected World BRM When technology suddenly understands itself much better... M2M...then an intelligent software solution from Bosch is behind it. Software Innovations BPM
2 Page 3 InnovateIT Issue 02 March 2013 Content Editorial Imprint 03 InnovateIT Main Story 04 Bosch Brings the IoTS to Life Business & IT 08 Intelligent Processes: Gartner Magic Quadrant 09 3x1>3: The Software Suite 10 M2M Management Software Review 11 Predictive Maintenance In Brief 14 McDonald's, Education Services, Allgäuer Überlandwerk, Secom Taiwan, LGT Bank, New Representations in Australia and China, Elmer, Green Charge Networks, Revies Building Business Capability Case Studies 17 Urban Electromobility in the Tropics 18 SBB: When Processes Gain Momentum 20 PostFinance: Credit Risk Rating Platform Customer magazine of Bosch Software Innovations GmbH Editor Bosch Software Innovations GmbH Elena Lucas Schöneberger Ufer Berlin, Germany Phone Publisher Bosch Software Innovations GmbH Schöneberger Ufer Berlin, Germany Copyright Bosch Software Innovations GmbH Printed in Germany Circulation 2000 Any reprint or copy, even only in extracts, is only permitted with express consent of the editors. Changes and errors reserved. Product and company names used are trademarks and / or registered trademarks. They are independent of marking property of their respective owners. About Bosch Software Innovations 22 Vodafone and Bosch: Two Strong Partners Event Forecast 23 Forecast to Upcoming Events
3 March 2013 Issue 02 InnovateIT Page 3 Editorial Dear Readers, Shaping the future together this is the motto under which we have been working together towards one goal in recent months. Today we brought it to completion: Bosch Software Innovations and inubit have merged into one company. We very much look forward to familiarizing you with our products and solutions under one name. In this issue of InnovateIT, we delve deeper into the topic of the Internet of Things and Services: What challenges and opportunities does this trend have ready for us and our customers, and how does our software suite, available as the BPM+ or IoTS edition, make your business fit for the future? We also report on a number of successes in this field and on our core technology with examples from customer projects as well as from collaboration with analysts and partners. I hope you enjoy reading InnovateIT! Dr. Heinz Derenbach President of Bosch Software Innovations GmbH
4 Page 4 InnovateIT Issue 02 March 2013 Main Story Bosch Brings the IoTS to Life In the Internet of Things and Services (IoTS) the physical world of devices merges with the virtual world of software and the internet. We predict that by 2015 there will be over six billion IP-enabled devices sending and receiving data over the internet. People like to talk about the opportunities heralded by a fully connected world, a future in which everyone will be linked to everyone else and in which all objects communicate with one another. But does connecting everything up actually make sense? As with all technological upheavals, huge opportunities go hand in hand with equally big challenges. Without wishing to give the game away although you have probably already guessed we believe the following: no, we are not for connecting everything up at all costs. After all, not everything that is possible is actually useful, and even useful ideas often call for particular caution when it comes to issues such as fault tolerance, security, and privacy. In our opinion, connecting up objects only begins to make business sense when it generates added value in a business model, for example through the creation of new online services. The Internet of Things and Services The Internet of Things and Services (IoTS) is the next generation of the internet. It is a global system of IP-connected computer networks, sensors, actuators, machines, and devices. Merging the physical world of devices with the virtual world of software and the internet enables companies and consumers to create and enjoy new services that are founded on web-based business models. Last but not least, the IoTS also marks the beginning of a series of technological, economic, and social changes that will have a big impact on the way we do business and go about our daily lives. With our passionate commitment and strong team, Bosch Software Innovations wants to be your partner, helping you to navigate the world of the IoTS. Because we are shaping the future together, we will help you to master challenges that will accompany the big commercial opportunities. In this respect, we see ourselves not only as a partner accompanying you on your IoTS journey with services and technical advice, but also as a development consultant for new business models. More than 6 billion connected devices Over the coming years, more and more devices and systems will have the ability to send and receive data over the internet as part of their standard features. We compiled a large volume of data from a variety of sources, did calculations, and came up with the figure of over 6.5 billion objects that will be online in Another factor that is propelling the IoTS forward is internet access: whereas less than one percent of the world population was online in 1995, it is estimated that more than 5.5 billion people will have access to the internet by 2015 about 75 percent of the world s population. And thus our expectations as consumers, as we become increasingly connected up in our personal and professional lives, are a contributing factor to the IoTS transformation of the economy and our everyday lives. Consider for a moment the possibility of communication between your running shoes and your central heating system. Should these two things be constantly exchanging data with each other? Of course not. But what if you were out running and the chip in your shoes were to send the central heating a command along the lines of: Turn up the temperature. I ll be home for a shower shortly? Then there would be a point to it. Consumers would get a useful service, which they would be willing to pay for under the right circumstances, making it an attractive proposition for product manufacturers and service providers. Fact check In the IoT community, there are large discrepancies between different estimates of the number of devices connected to the internet: some companies cite the projected figure of 50 billion connected devices in We base our calculations of the number of connected devices on 20 sources. The figure we calculated of 6.5 billion relates to activated devices with TCP/IP connectivity that are connected to the internet. We deducted from the total all devices that have already been disposed of or replaced by new ones.
5 March 2013 Issue 02 InnovateIT Page 5 Main Story Internet access worldwide and the number of IPenabled devices connected to the internet are the key for future products and services in the IoTS. Both areas will experience rapid growth: in 2015, 75% of the world s population will have access to the internet and more than six billion objects will be exchanging data over the Internet. Creating a virtual table for new business partnerships billion devices in billion vehicles billion in telemedicine billion in security billion smart meters billion TVs billion tablets billion mobile phones billion laptops billion desktops billion servers 1 billion 3 billion 2 billion 5 billion 4 billion Development of the IoTS is still in its infancy, and we are by no means aware at this stage of all forms new business models might take. But what we can already see from our IoTS projects in the mobility, manufacturing, and energy sectors is that it pays off to have an open attitude: after all, for companies working in the IoTS, besides the question of who their competitors are, there is also the question of with whom they can join forces in partnership. We are witnessing how market participants and sectors that previously had no business relationship with each other are striking up partnerships. A good example of the multi-faceted nature of the virtual table is electromobility, where companies, energy suppliers, public utility firms, the public sector, charge spot and parking lot operators, retailers, and the drivers of electric vehicles are all cooperating closely. To do this, they need a common technological basis. The right attitude: open systems For business models to be viable and sustainable in the internet, first you need technology that is open and scalable for all business partners, that can be integrated into existing IT landscapes, and that connects with end consumers (for example, by means of online portals or apps), while encryption and flexible authorization models ensure that sensitive data is protected. As the Bosch Group s software and systems unit, the spirit of the Bosch brand s Invented for life slogan is the guiding principle behind the interoperability and openness of our software products and solutions. Our colleagues in the area of home appliances share our view. For example, they do not want to limit the convenience of users of a smart home service when it comes to their choice of IP-enabled white goods by tying them to one brand Product manufacturers: new services offering higher margins By opening up new web-based possibilities, the IoTS expands the portfolio range that companies can provide an attractive proposition not just for internet companies. The IoTS also challenges classic product manufacturers and machinery and plant engineering firms. An existing product and machine portfolio can be quickly expanded to incorporate value-added services. For some companies, the IoTS causes a shift in where the value of the manufactured product or machine resides: perhaps customers decisions are no longer primarily driven by the industrially manufactured hardware but rather the services the device allows them to access: a payment app or a service such as predictive maintenance, see page 11. Service Business Development: Strategies for Value Creation in Manufacturing Firms, a study published last year by the University of St. Gallen (HSG), shows that it is precisely such services that yield higher margins sometimes even five to ten times as high compared to the pure product business. Closing the integration gap: devices to become active participants in business processes In order to run these services efficiently, however, the connected devices must be integrated into a company s existing systems. This may sound easy at first, but in many sectors there is still a big gap between the planned new services and the devices particularly when it comes to the full integration of devices into companies existing system and process landscapes. It only becomes possible for companies to realize sustainable business models in the IoTS once they have managed to turn devices into active participants in business processes. Consider the following comparison: in conventional offline business models, objects give the user a simple piece of information. For example, a vehicle odometer provides the following information: 50,000 kilometers. Time for a service! Business mod-
6 Page 6 InnovateIT Issue 02 March 2013 Main Story Bosch Software Innovations is applying the expertise it has accumulated over many years in the optimization and automation of business processes in the energy market to the development of new approaches for the smart management of decentralized energy systems. This includes the realization and operation of new, open software concepts in the smart grid as well as our know-how in helping to actively shape new business models and value-added services for decentralized energy producers, grid operators, traders, and other market participants. els in the IoTS go a step further and connect the vehicle data up with additional information in the cloud, services, and processes: 50,000 kilometers. Time for a service! Shall I arrange an appointment for you in the nearest garage offering the best value? the company used software to integrate the required objects (charge spots, power sources, storage equipment, etc.), business partners, and drivers into the existing infrastructure for a third of the price the hardware would have cost. Speed is a key competency in the IoTS If you are currently involved in implementing an IoTS project, you will have noticed that it changes at a breathtaking pace. Business models and their underlying business logic are constantly changing: new business partners come along, new features are added to services, new types of devices go online. Flexibility in the IoTS is also assuming new importance because we are presently engaged in shaping the future. When developing business models in an exploratory manner, shifts in the marketplace are pretty much guaranteed. And of course this also has a big impact on key business processes such as product management or production and sales planning. Being that little bit faster with model-driven software Our experience over the past few years has shown that once IT systems and business processes have been set up, most adjustments are the result of changes in business logic in the market rather than changes in the system and process landscape. Accordingly, speed and agility are becoming decisive factors when it comes to business innovation. Carrying out manual reprogramming for every change in business logic is expensive and requires a lot of coordination. Protracted development and change cycles, drawing up and working through requirements and functional specifications, and manual programming are scarcely affordable with web-based business models. The key to successful web-based business models: low costs, high efficiency If you are anxious about the IoTS turning into a black hole for resources, then we have reassuring news for you: it does not have to be that way. On the contrary, intelligent software can be the key to the fail-safe, transparent, and efficient networking of distributed market partners from providers to end users devices, services, and business processes. Although connectivity could also be realized by means of hardware, it would be very infrastructure-intensive, with associated high costs and construction investment think, for example, of the energy sector with its large number of decentralized plants and consumers. An electromobility project undertaken by one of our customers at New York s La- Guardia airport almost foundered on this issue, as the costs for expanding the infrastructure over the last mile amounted to over half a million U.S. dollars. In the end, Our software products offer a broad range of graphic tools for developing and managing business processes and rules. The tools are intuitive to use and follow a unique modeling approach. A model-driven, graphical software development approach efficiently bridges the gap between the IT department and the respective specialist, for example the business developer or operations manager of an electromobility project. Cooperating closely, they can react flexibly to new requirements while still working on a common platform. The software s intuitive design means that specialists can implement changes in business logic themselves. The processes modeled by the specialists are then automatically converted into technical process-
7 March 2013 Issue 02 InnovateIT Page 7 Main Story Application in the IoTS: Putting predictive maintenance in place allows companies to predict faults in the production process long before they actually arise. This reduces maintenance and repair costs and increases productivity through less downtime. es, refined by the IT department, and executed without delay. The division of tasks between IT and the specialist department is clearly defined by this software concept, with each side concentrating on its core role. This graphics-based, modeling software approach has been a specialty of Bosch Software Innovations for over ten years and forms part of all our software products. More than 500 international projects have already been successfully accomplished using this approach. Why a combination of process, rules, and device management is just right for IoTS projects The technological vision of Bosch Software Innovations is to offer software products in the IoTS that provide the greatest commercial utility. Depending on the business model, it must be possible to integrate a great variety of different kinds of devices from all kinds of manufacturers into a single system in a logical manner. Only then is it possible for business partners, providers, and users to offer or experience truly networked services. and Machine-to-Machine Communication (M2M) is ideal for implementing viable business models in the IoTS. Only on this basis can a great variety of devices interact seamlessly with intelligent business processes. We call All-in-one solution for better business: our software suite Our software suite is a combination of integrated software products for process, rules, and device management. It enables the quick and efficient implementation of IoTS projects, new cloud services, and also traditional enterprise applications such as business process and business rules management. In our connected world, this allows customers to swiftly and efficiently create new business processes and models and improve existing ones. Our software suite is available in two editions: BPM+ and IoTS. this end-to-end integration concept device-to-process and realize it in the IoTS edition of our software suite. My colleague Dirk Slama presents this springboard into the new possibilities of the Internet of Things and Services on page 9. Quickly adaptable processes are essential in web-based business models. As the nature, logic, participating partners and users of a service are just developing, all underlying processes and the business logic must remain adaptable. Moreover, companies must be able to swiftly implement new ideas so as not to lose their competitive edge. This is why the combination of Business Process Management (BPM), Business Rules Management (BRM), Author: Anita Bunk
8 Page 8 InnovateIT Issue 02 March 2013 Business & IT From BPMS to ibpms Key Challenge: better and faster decisions Requirement: improved visibility into organizations and environments What organizations need: intelligent business operations by integrating analytics New scenario for BPMS: Intelligent Business Operations Enhanced BPMS: to reflect IBO scenario > ibpms Intelligent Processes Through the integration of analysis tools as well as social and mobile technologies, companies are preparing their processes for the future. Gartner has published a Magic Quadrant in this regard, listing Bosch Software Innovations in it as a Visionary. Enterprise processes and applications are becoming more intelligent. Gartner, one of the world s leading market research and consulting firms for the technology sector, picks up this trend and introduces a new generation of intelligent Business Process Management Suites (ibpms). for rule management, social media to support social behavior and collaboration, and expanded technologies to support growing requirements for mobility. This new functionality focuses on adding more machine and human intelligence in a much friendlier work environment that is characterized by role-based workspaces. Intelligent processes for agile enterprises But what does that mean precisely? In times of accelerated business cycles, managers need to make wellfounded decisions more and more quickly in a changing environment. This requires that information about processes and their status can be called up and evaluated at any time. It also requires software that adapts the processes continuously and in real time according to the information in the sense of context awareness. This is where previous BPM-Suites reached their limits: reports are usually limited to static evaluations and it is only possible to adjust ongoing processes to a limited extent. For this reason companies are relying to a greater extent on new technologies intelligent technologies. Gartner is seizing on this development with the Magic Quadrant for Intelligent Business Process Management Suites. Bosch Software Innovations listed as a Visionary With the consolidation of our products for BPM and BRM, our vision for the Internet of Things and Services, and the worldwide presence of Robert Bosch GmbH, we were able to convince Gartner: our placement in the Visionary category of the Magic Quadrant confirms the capability of our technology to implement current requirements in the spirit of an ibpms as well as our strategy of driving future developments forward. The report emphasizes the following points in particular: `` The strengths of the technology in application integration ` ` Our model-based development environment `` `` Good capabilities in the processing of process rules using Visual Rules Deep industry expertise and capabilities for integration of any hardware devices An ibpms expands the traditional BPMS by adding new functionality, such as real-time business analytics, deep complex-event processing (CEP), powerful support Author: Elena Lucas Source: Gartner, Inc. Magic Quadrant for Intelligent Business Process Management Suites Jim Sinur et al. 27 September 2012
9 March 2013 Issue 02 InnovateIT Page 9 Business & IT 3x1>3: The Software Suite Based on its core products, Bosch Software Innovations has developed a software suite for BPM, BRM, and M2M. It is available in both BPM+ and IoTS editions. The suite as BPM+ edition: Process-centric applications cover the familiar products for BPM and BRM: BPM (Business Process Management): Based on inubit, with extensive capabilities in the area of BPM, the complete lifecycle of processes in the enterprise is supported here, from technical modeling and automatic generation of technical implementation workflows to refinement by IT and operations. The picture is rounded out by sophisticated tools for business and technical process monitoring. BRM (Business Rules Management): BRM is based on the international award-winning software Visual Rules. It enables full visual modeling of business rules by experts. The business models can be used to automatically generate rule implementations for runtime that can be executed both online and in batch mode, providing support for optimal decision-making. The suite as IoTS edition: In the IoTS edition, BPM and BRM are expanded to include the topic of M2M: M2M (Machine-to-Machine): A powerful and flexible software that allows not just devices to be integrated and managed, but also complex systems that consist of multiple devices: a virtual power plant, for example. The focus here is on what are known as Information Models, which allow the complexity of the real world to be abstracted and handled. This means that the M2M software ensures that the equipment can be safely interacted with even in complex scenarios, and that the company always has an overview of all devices in the field. Model-based development and unified identity management bring the products together An important basis for the integration of all three products is what is known as model-based development. Each of the products uses models with a high degree of abstraction. An example of model integration is Deviceto-Process, which enables interaction between devices and processes. Based on the business models, the basics of the application are generated, which can be further refined by IT experts. This significantly increases collaboration between business areas and IT and is important for mastering complex projects. Through the provision of unified identity management (IM) that is used by all products, single sign on can be provided for all portal users. In addition, IM is the basis for the client capability of all applications. This in turn is the basis for successful operation of applications in the cloud. Author: Dirk Slama Customers Partners Employees Partner, Legacy Applications EAI, SOA, EDI Identity Management Portal (Web & Mobile) e.g. Order, Device-Status, Device-Configuration Processes e.g. Sales, Provisioning, After-Sales Services Master Data, Device-to-Process, Device Data Process-to-Device Device Management Device abstraction (Information Models) remote access, asset management, security Rules e.g. validation of device status Internet of Things ans Services
10 Page 10 InnovateIT Issue 02 March 2013 Business & IT Supplier capabilities in each of the five management segments Company Authentication and security Managed connectivity Device data aggregation and analysis Device management Rating and pricing Bosch Software Innovations X X Key: = yes; X = no M2M Management Software Review In 2012, Bosch Software Innovations took part in the M2M management software review by the analysts Analysys Mason for the first time. It was classed including partnerships with communication service providers such as Vodafone as a full-service solutions provider. For many years now, the research company Analysys Mason has been studying the machine-to-machine M2M for short market and evaluating current and future developments. In 2012, Bosch Software Innovations was invited to take part in the study for the first time in its capacity as a manufacturer of technology products alongside the classic players in the M2M market, the communication service providers (CSPs). With our software products for business process management (BPM), business rules management (BRM), and infrastructure management, we do not see ourselves as a classic M2M provider; rather we offer farther-reaching solutions and services for the Internet of Things (IoTS). The Internet of Things and Services goes beyond M2M In Analysys Mason s view, IoTS represents a more advanced stage beyond simple M2M applications that merely use communication technology for transmitting data and events from devices and machines in order to profitably use them in the respective business context. In the Internet of Things and Services, even smaller entities such as actuators and sensors can be automated to supply data for intelligent applications. If required, the units themselves can be equipped with active, smart functions that enable them, for example, to initiate the transmission of data in certain contexts. This creates the basis for providing completely new applications in the form of cloud services. In the Internet of Things and Services, communities play an important role and new ecosystems are formed dynamically. Participants who previously had no business relationship with each other can take a seat at a virtual table in a brand new business context. The M2M study from Analysys Mason is divided into a market part and a manufacturer part: Analysis of the global M2M management market, including a 5-year forecast (up to 2016) based on sales revenue (CAGR, compound annual growth rate) and the number of M2M device connections Recommendations for CSPs and solutions providers for orientation of their product/service ranges according to identified market trends, derived from these findings Identification of general market drivers in the different sectors as well as market hurdles to be overcome A structured evaluation of the manufacturing market based on five distinct software management segments along the value chain Classification of CSPs based on the phase they are in as regards implementing their M2M management software range Innovative solutions for the Internet of Things and Services from Bosch Software Innovations Analysys Mason sees the strengths of Bosch Software Innovations as an active provider of M2M solutions above all in the innovative strength and market power of the Bosch Group, the scalability of its applications, and the amount and variety of technological expertise it possesses as the basis for innovative M2M/IoTS solutions. Bosch is placing a clear emphasis on developing new services and is already integrating existing standard systems, such as billing systems for example. Find more information about the partnership with Vodafone on page 22 of this issue. Author: Stefanie Peitzker
11 March 2013 Issue 02 InnovateIT Page 11 Business & IT Predictive Maintenance Reduce costs. Minimize downtime. Increase productivity. Early detection of machine faults provides for more efficiency in the maintenance process. If the production process is brought to a halt due to a defective machine, this causes unplanned revenue loss for companies. If the machine cannot be repaired immediately because spare parts need to be ordered or a service technician needs to be commissioned, for example, these costs can sometimes soar. To prevent system failures, many companies pursue a strategy of preventive maintenance, which is carried out in accordance with fixed time or output intervals. This method, however, is not the best possible solution. On the one hand, it is associated with high costs because components are replaced before their actual service life has been exhausted. On the other hand, unplanned machine failures can only be reduced through a preventive approach, but cannot be avoided altogether. Proactive service and repair for the industry of tomorrow Predictive maintenance opens up new perspectives for efficient design of maintenance measures of production operations. By employing a holistic approach, Bosch Software Innovations provides software-based support for the entire maintenance process: from data analysis and early error detection to procurement of spare parts and handling of maintenance measures. The software takes action even before possible failures arise. Sensors are used to record status data of machine components while they are running in order to detect conspicuous patterns or tendencies. The data is transferred over the Internet in regular intervals to the software developed by Bosch Software Innovations. This software uses rule and process management techniques to analyze the data and make precise forecasts about possible failure dates. Central service portal A service portal is used to centrally monitor the results gained and organize subsequent measures. In combination with information from third-party systems, such as ERP or CRM systems, services for remote maintenance can be offered and deployments of technicians on site can be planned. Software supplements existing systems The software is also a perfect addition for companies that already use remote maintenance systems or condition monitoring systems. To expand its service offerings relating to all aspects of maintenance, Bosch Software Innovations, together with one of the world s leading mechanical engineering companies, is putting a solution into practice for early detection of machine faults. With their cooperation, the two companies are pursuing very different objectives. One objective allows maintenance measures to become much more plannable for the customer than was previously the case. The other shows the customer possible ways to save resources, because predictive maintenance is actually far more than just service and repair. Author: Alexandra Enderle html
12 When technology in the Internet of Thin Services suddenly understands itself m an intelligent software solution from Bosch Thanks for everything, service technician! Software Innovations
13 gs and uch better, then is behind it. I'm thinking of you, wind turbine! Always nice to work with you, charging station! I know, low-voltage line, I know...
14 Page 14 InnovateIT Issue 02 March 2013 In Brief McDonald s Deutschland automates the processing of documents Bosch Software Innovations Training Center Now in Berlin McDonald s Deutschland Inc. has automated its document processing with inubit. With its fast and transparent processes with no discontinuity of media, the company achieves a high degree of automation and reduces the time-consuming switching between paper-based and electronic communication. To achieve this goal, the steps involved in document processing which were handled via Excel, Access and paper documents were made transparent and with no discontinuity of media. The challenge was to integrate the offered solution into the heterogeneous system landscape at our company, connecting various distributed systems. Now we have an excellent solution which allows document processing without any need of stamps and mailboxes, explained Dieter Opitz, IT manager at McDonald s Deutschland. inubit integrates the existing IT systems and enables document processing with no discontinuity of media, including the connection of digital archiving systems, from the automatic generation of accompanying documents and storage in a master data management system to the transfer of accounting data to the financial accounting system. To support the knowledge development that is crucial for the success of the enterprise, we offer our users and partners a variety of education services in our Training Center based in Berlin. It is important to us that the practical work is not given short shrift. After the theoretical introduction and demonstrations, it is then the participants turn to implement what has been learned to train the required capabilities for successfully transferring and deploying the course topic knowledge in your own context. Transparent Change Processes in Electricity Measurement Allgäuer Überlandwerk GmbH (AÜW) has opted for inubit in meeting the German Federal Network Agency requirements in the area of change processes in measurement (WiM). For almost 90 years, Allgäuer Überlandwerk GmbH has supplied electricity to households that today number more than 94,000, and now it offers easy switching of meter operators with the aid of inubit. End customers can now select from the diverse service offerings for their electric meter. For electricity providers, the changes required in the course of switching from one provider to another can be handled quickly and easily. The software collects data on business and communication partners at a central point, checks incoming change applications, manages them and completes their processing. Incoming messages are immediately checked for validity and plausibility. Only if an application fails the automated check, an employee will be involved in the review process. In the end, the employee always decides whether to approve the change or reject it based on lack of information. To maintain an overview of the applications, AÜW staff use the Process Monitor. This tool graphically represents the processing and message status of the transmitted market data and compiles reports on the number of implemented or rejected change processes. Werner Kessler, IT manager at AÜW, on the advantages: This function is particularly important for our staff, since they can access and actively control processes very simply here by clicking buttons. This means that the user ultimately handling the change process is not distracted by the complex procedures occurring in the background.
15 March 2013 Issue 02 InnovateIT Page 15 In Brief First emobility customer in Greater China Compliance: LGT Bank in Liechtenstein uses MAID New representations in Australia and China Bosch Software Innovations has signed its first contract with a customer in Greater China. SVS Corporation, which is part of Taiwan Secom Group, will be using our emobility solution developed to set up and manage an electric vehicle charging infrastructure across Taiwan. The first charging stations are expected to be installed by early SVS Coporation wants to lead Taiwan s electric mobility industry by developing a world-class electric vehicle program. They chose Bosch Software Innovations as a solution and service provider because of our comprehensive vision and capabilities for intelligent charging networks. The charging network will be based on Bosch Software Innovations emobility solution and includes for instance: ` ` Secure cloud-based service for the networking of charging stations; ` ` Full-fledged administration of charging stations via a comprehensive management portal; `` Accurate logging of consumption data as a basis for billing; ` ` Intelligent back-end as a basis for the establishment of a comprehensive eco-system for electric mobility services. LGT was looking for software that fulfills the minimum requirements for preventing market abuse as laid down in Liechtenstein s Market Abuse Act as well as further bankspecific requirements. In addition, the software was to be used for monitoring personal account dealing and ensuring compliance with internal standards and guidelines, for example in relation to lock-up periods, maximum number of trades allowed per month, etc. It was also important that the software should enable LGT to model the auditing of all derivative products based on their underlyings. LGT opted for the MAID software solution. This solution, which is based on the Visual Rules technology, is capable of automatically identifying the complexity of security master data and critical transactions. At the same time, it results in a significant reduction in integrated case processing. LGT uses MAID to monitor both customer and proprietary transactions for signs of potential abuse, thereby creating transparency and rooting out problems at an early stage. The LGT Group is the largest familyowned private banking and asset management group in Europe. Bosch Software Innovations is continually expanding its international presence. In the past months we established a presence in Melbourne (Australia) and Shanghai (China) to meet the growing regional demands for intelligent software solutions in the Internet of Things and Services. Amin Manji and Wang Jianguo are our pioneer employees who will spearhead the development of these markets. China s leading role in the manufacturing business and growing prowess as a technology provider align perfectly with our vision to become a leader in the Internet of Things and Services (IoTS). It is estimated that by 2015, more than 50 billion devices will communicate which each other to drive sophisticated Machine-to-Machine (M2M) applications and business process integration, explained Thomas Jakob. Our strong technology platforms, combined with our global experience, will help our clients in China to generate increased value on their investments, he continued.
16 Page 16 InnovateIT Issue 02 March 2013 In Brief Automatic invoice processing using the invoice receipt ledger Visual Rules helps manage grid efficiency and reliability BBC technologies and techniques to create an agile organization The Elmer consortium, one of the leading specialized wholesale companies of the German plumbing/ heating/air-conditioning sector, has automated its processes for invoice receipt using inubit. Since the launch six months ago, 25,000 invoices have already gone through the automated verification. While it was previously the case that verification was carried out only on a random sampling basis, the rate is now 100 percent. The invoice receipt ledger (IRL) offers the ELMER employees an online portal that allows all incoming invoices to be viewed on the item level. The automated verification process runs in the background: Invoices are compared with the corresponding orders and deliveries and checked to ensure that they match. Invoice items that differ from the order are visibly marked for the verifier. Orders are also compared with the delivery note data and the received goods from the stock item entries. For cases in which an order reference is missing, the system has a logical sequence to follow for finding the order number that matches the invoice. It is also possible to directly consult employees about a specific problem in case of discrepancies. Green Charge Networks, an innovator in smart grid technology, uses Visual Rules for an energy management application to address peakload issues. The business rules product has been integrated into Green Charge Networks GridSynergy, which helps meet the growing demand for electricity in the US by increasing the utility s asset utilization and reducing their capital expenditures. Due to the growing population and economic growth as well as the increased presence of electric vehicles, grid reliability and efficiency are key concerns for utilities. In order to modernize the nation s electric grid, smart meters are being rolled out nationwide providing utilities with vast amounts of data. The challenge is to create actionable intelligence in real time. Being a central part of the application, Visual Rules provide utilities with realtime status updates, decision aids and recommended options for load relief. The integrated business rules technology has already been deployed in a smart grid demonstration project in New York City. From October 28 to November 1, 2012, Building Business Capability (BBC) played host to over 850 attendees looking for ways to make their organizations more agile and effective. For the third year, BBC united five co-located forums and summits under one roof: Business Analysis, Process and Rules Forum; Business Architecture Summit, and Business Strategy & Transformation Summit. Attendees could choose sessions from the comprehensive conference program offering insight and education through a broad range of topics from Business Rules through Business Process Management, Business Intelligence and many more. With so many topics in play, the true strength of this event lies in its depth and case studies presented by recognized analysts such as Jim Sinur, James Taylor and Sandy Kemsley and experts from international companies. Being a main sponsor with various speaking engagements, the five days of learning and networking provided valuable social opportunities for Bosch Software Innovations attending associates to connect with peers and key analysts.
17 March 2013 Issue 02 InnovateIT Page 17 Case Study Urban Electromobility in the Tropics The city-state of Singapore relies on Bosch Software Innovations emobility Solution to support the national electric vehicle test-bed. Chandrasekhar Ujjini Located 137 kilometers north of the equator, Singapore is acknowledged to be a modern and technology-savvy city-state. Known for its many extraordinary projects and initiatives, some people like to call it a living laboratory. One of these projects that gained world-wide attention is an electromobility pilot program. The so-called electric vehicle (EV) test-bed started in 2011 and is to evaluate the challenges and opportunities of introducing electric vehicles in Singapore. It is a government initiative and led by the Singapore inter-agency EV Taskforce comprising several government agencies. Bosch Software Innovations The charging service provider Each EV user in the test-bed receives a normal charging station from Bosch. As of February 2013, 50 charge spots have been installed. With the increase of electric vehicles on Singapore s streets, the network will be expanded to up to 87 charge spots. Bosch Software Innovations has been developing an open software platform that supports a broad range of emobility services. That includes e.g. finding charging stations, identification of drivers and EV charging. The technology allows real-time connectivity, monitoring and remote software updates for the charging stations. The software also enables the EV driver to locate the nearest available charging station via an online portal. To complement the software, a bilingual 24/7 call center support is available to assist EV users. In terms of the various pricing models which are used in pilots throughout the world, Singapore adopted a flat subscription fee of S$180 per month. The flat fee covers all the emobility Services offered by Bosch and is being paid directly to the company. To charge their EV, each user has a credit card-sized card to identify him- or herself at the charging station. Future outlook The current phase of the test-bed is supposed to end in Until then, data from the charging stations will continue to be collected from every single participant in the pilot to find out more about their driving pattern and charging behavior. The final examination of all the data, including a cost benefit analysis, will enable the taskforce to draw a final conclusion whether it is feasible to introduce electric cars in Singapore. Author: Stefanie Kowallick
18 Page 18 InnovateIT Issue 02 March 2013 Case Study When Processes Gain Momentum SBB Telecom, the telecommunications service provider of Swiss railways, has automated the order and billing processes in train communication. From now on, processes around SIM cards, mobile phones, orders for accessories and mutations are being processed anually with inubit. Fiberglass and copper cable, analog radio systems, landline and mobile telephone communications: SBB Telecom the internal telecommunications service provider of Swiss railways (SBB) handles 37,000 GSM subscriptions with an order volume of 5,000 SIM cards, 8,000 cell phones, 5,000 orders for accessories and 10,000 mutations with an annual growth of 20 percent. In order not to lose the overview of all these items, all processes from ordering up to invoicing for these services have been automated with inubit. The enormous growth meant that the existing Accessbased billing and commission calculation system was becoming obsolete. In addition, the many media discontinuities required manual entries at many points, which naturally resulted in a high error rate. What was needed was a new solution that could handle these ever-increasing quantities while retaining the necessary quality and service time and use the available resources. The special feature of this: Not only the ordering processes in the area of railway communications (GSM-Rail) were to be made more efficient. The processes for commission calculations and invoicing the GSM-Public devices for the Swisscom network were also affected. In the light of the complex and high order volume, the task was to optimize the processes using a Business Process Management tool. Comprehensive documentation was to be provided to make the processes reproducible and transparent. The main aim was to standardize and model the processes so that media discontinuity could be avoided and so that the processes could be automated with workflows. Manual tasks such as printing and sending paper correspondence were to be reduced to a minimum. Agile adaptation to new requirements was a prerequisite. The integration of existing systems, such as the company-internal ordering application, database and the LDAP protocol using a central integration platform was also to optimize communications between SBB employees, customers from the franchised transport companies, the Business Mobile area, GSM-Rail and the provider. Automation throughout the sales support chain Pre- & After-Sales Support ordering Provisioning Billing / Rating Customer / ordering party (U and UE) SBB ordering tool, inventory DB Product catalog 0-2 level authorization GSM-P DB MAC Mobile Services SBB Telecom (Processes and interaction) GSM-R DB Customer Service invoicing Reporting Customer NOMS New Order Management System PBMS Provisioning and Billing Management System
19 March 2013 Issue 02 InnovateIT Page 19 Case Study Implementation To achieve the aim of more efficient processes, the different procedures were first extensively analyzed, standardized and documented in workshops: In this way users were involved in the change process right from the start and priorities could be set for the different requirements. The iterative procedure had many phases with user and system tests to check whether all requirements have been met and whether the solution is suited to current needs. Fallback scenario was set up to enable a clean migration procedure and to avoid data losses. Railway operation could not be endangered at any time. Special features ` ` The processes for the subscription provisioning in the GSM-Rail area must be processed particularly reliably as network elements of the GSM network are configured here and an error could have fatal consequences for railway operation. In extreme cases it could mean that intercity trains come to standstill on the track because the safety installations were triggered. ` ` Complex user interaction was required for commission calculation for the various contract types, as many different roles and users are involved. The user interface was implemented with ExtJS the standard for complex GUIs. ` ` The contract parameters had to be dynamically configurable and input masks had to adapt automatically to the parameters. For example, GSM-Rail has different parameters to those of GSM-Public. The configuration of the services was therefore adjusted dynamically in the GUIs, i.e. without extra programming. The main advantage of this is the considerably lower costs in the case of adjustments to the services. These user interfaces were also implemented with the aid of ExtJS. Result The introduction of inubit as a process platform eliminated all cases of media discontinuity and processes could be largely automated by the tool: ` ` Order verification ` ` Order creation / updating ` ` Commissioning (registration activation of SIM cards) ` ` Programming the SIM card via Card Reader or OTA (Top Security Over The Air Transmission) In addition, a web-based GUI could be created: `Process ` monitoring from order to delivery ` ` Monitoring of the rating process (traffic data) ` ` Monitoring of the invoicing process (cost allocation) ` ` Task-controlled ordering workflow What is next? Currently SBB is implementing other services and optimizing processes already realized. Among other areas, the internal dispatch solution is to be integrated. An additional service is to be established for the users with which they can monitor their own costs for mobile services via a web solution. This means that everything is still very much in motion at SBB trains, processes and naturally employees as well. Urs Fankhauser, project manager at SBB summarizes: Approximately 70 percent of the orders and mutations are now processed fully automatically to a degree of 90 percent. In addition, all processes are now documented. We can use this basis to continuously optimize our business processes. Author: Elena Lucas
20 Page 20 InnovateIT Issue 02 March 2013 Case Study PostFinance Extends Usage of Credit Risk Rating Platform With the Credit Risk Rating Platform (CRRP) from Bosch Software Innovations Post Finance, the financial institution of Swiss post, professionalizes its control over credit risk. As one of the leading Swiss financial service providers, PostFinance assesses the creditworthiness of all business and retail customers with the help of the CRRP. To do so, the institution makes use of account balances, including the credit card transactions. The credit default risk can be precisely expressed by scoring models based on typical credit key ratios. Clear requirements for a new solution The decision for Bosch Software Innovations was subject to clear requirements. Before implementing the Credit Risk Rating Platform, Post Finance had in place a self-developed solution to determine credit key ratios and default probabilities from changes in customer account balances. The applied scorecards were not as user friendly as desired nor were they graphically modeled. Increasing demands on performance and audit compliance, as well as the demand for fully integrated and automatic processes, were the reasons for replacing PostFinance s in-house developed solution. The visual representation provides us with relatively simple and intuitive modeling without programming knowledge. The scorecard models are extremely adaptable! Peychyn Lai, Risk Management specialist The aim of the new solution was to calculate for each business and private customer a credit risk score and key ratios such as loss-given default (LGD), expected loss (EL) and probability of default (PD). These values should be automatically determined periodically.