The Internet of Things System Integration Offerings
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1 The Internet of Things System Integration Offerings
2 Helping you turn customers into subscribers. Whether you call it Machine-to-Machine (M2M), Internet of Things (IoT), or Internet of Everything (IoE), the objective is always the same: Creating the next level in the customer relationship the subscriber. You want what transformed Apple from a niche technology company into one of the most valuable companies on the planet. At Logic PD, we can help you make the journey. The transition from single-point customer transactions to monthly relationships takes a unique blend of user understanding, technical savvy, and business acumen. It s a tough climb, but the view from the top is worth the effort. Value for your customers Maximum product value with real-time information Increasing value over time with new features Better customer service and immediate feedback Value for your business Deeper customer relationships Ongoing revenue streams Opportunities for add-on sales How we can help Adrenaline Workshop Adrenaline Prototype Adrenaline Pilot Service IoT Full System Integration Services
3 DESIRABLE FEASIBLE Logic PD IoT Agile Approach To help, Logic PD has created an agile, step-by-step solution for navigating the Internet of Things (IoT) called the Adrenaline Series. The Adrenaline Series allows you to understand key business and user requirements, prototype and test a solution, and deliver a proof of concept for ongoing value. PROFITABLE Concepts Product Concepts Deploy Workshop Prototype Pilot Building the foundation for success. Every business must examine what it can do to capture its share of the potential $19 trillion Internet of Things (IoT) economy. But how do you evolve your business to be a part of this growth? It will require you to deliver continuous value by understanding your users, building new business models and leveraging emerging technology. Adrenaline Workshop: The IoT Adrenaline Workshop is a oneday event designed to help customers define the key criteria in development: user value, technical architecture, and business requirements. Adrenaline Prototype: The IoT Adrenaline Prototype is the development of a prototype that allows you to complete in-field testing of your product. Adrenaline Pilot: The IoT Adrenaline Pilot is the limited deployment of a viable connected solution to a select set of customers to help define a successful product launch. Your share of $19 trillion is waiting. You can t afford to wait. Call Logic PD today to schedule your one-day Adrenaline Workshop.
4 Customer Journey Does the overall experience encourage the customer to advocate to their peers? Does recurring value encourage the customer to upgrade? Workshop Workshop Workshop Prototype Pilot Designing with the subscriber in mind. Design thinking is always important. It makes the difference between products people use and products people love. But in a new subscriber economy with connected devices, a user-centered approach isn t a should, it s a must. That s because your product needs to build value with its subscribers not just at the point of sale, but every day of the year. That s a tall order. Luckily, Logic PD makes an excellent guide. We were born as an industrial design firm over 50 years ago, and have been helping customers like you create compelling experiences ever since. specific workshop outcomes: Defined market segments Compelling value propositions Clear understanding of the path to market Prototype Marketing, PR Attract Integrate Use Retain & Extend Advocate Pilot Clear communication of value proposition, etc. Placement/channel Out-of-box experience Installation into environment Connection/configure to technical infrastructure Integration into everyday behaviors Application of actionable insights from data to business Relationship with the product and service over time Customer engagement and support Customer retention through relentless delivery of value Extension of engagement through scale and value added upgrades Continued communication of offering Reach peers and community through customer advocates Incentives and support for advocates
5 IoT System Architecture echnology Workshop Workshop Prototype Pilot Building the infrastructure to support your new subscribers. Your Internet of Things (IoT) technology solution works best when it s invisible to your subscribers. But behind the scenes it means leveraging the latest technology to link your devices in the field to a robust transport network, to a scalable cloud services infrastructure and to meaningful client applications. In some cases, you ll need help building this solution from the ground up. In others, it may make more sense to purchase the services you Prototype need. Logic PD has the experience to fill in the gaps with a wide array of options to help you complete the necessary architecture. Pilot Devices Network Cloud Application Administration specific workshop outcomes: High-level system architecture Sensors and controls Optimize for size, cost, and performance Cellular networks Satellite networks TCP/IP Data: communication and storage Administrative: billing and subscription management Security: authorization and authentication and admin functions HTML, SMS, , XMS Mobile, desktop ERP/MRP integration Analytics Make vs. buy issues highlighted Key technical risk areas identified
6 Subscriber Model chnology Adoption Rates & Volumes Workshop Prototype Pilot Peak Units (EAU) T-10 (Time to 10% adoption) T-90 (Time to 90% adoption) D-50 (Time to 50% decline) Creating a subscriber business model. Subscriber business models aren t new. Telecommunications companies have been perfecting them for decades. But for many device OEMs, the term churn and the acronym ARPU might be new. Instead of a single point of sale, you will have revenue and costs for months and years to come. That tends to generate a lot of questions. What s the value of those relationships? How many can we sell? Are we making enough money to cover our costs? Logic PD can help. Your subscriber business model will be built using inputs from three areas: Adoption rates & volumes, pricing models, and total delivery costs. We have built a multi-variable Prototype Monte Carlo simulation to remove Pilotthe guesswork and give you certainty as you take your first steps up the mountain. specific workshop outcomes: Multiple scenarios based on different cost and pricing models Simulations based on different adoption rates and volumes Complete pro forma financial statements Add-on rate Churn Pricing Models Unit price (each) Subscription price (per month) Add-on hardware Add-on services Price growth/decay Total Delivery Costs Hardware development costs (NRE) Infrastructure development costs Ongoing Support costs Unit cost Subscription delivery costs (per month) Cost growth/decay SG&A costs Discount/Capitalization rates Logic PD Financial Modeling Tool $ A $ B $ C Financial Metrics Net Present Value (NPV) Internal Rate of Return (IRR) Return on Investment (ROI) Break Even (units) Break Even (months) Average Revenue Per (ARPU) Income Statement Risk Profile
7 Workshop Prototype Workshop Pilot Workshop Prototype Pilot Prototype Pilot Prototype Pilot Agile Development Kickoff In-Field Testing Experience Prototype Hardware design mock-up Software screens simulation Customer journey flowchart Prototype Physical demonstration of complete end-to-end connectivity Sophisticated data visualization One round of data visualization customization Model Simulation Prototype Market review Pricing models Sensitivity analysis Profitability study In-Field Testing Limited Customer Field Deployment Specific Pilot Service Outcomes Logic PD Pilot Infrastructure The Adrenaline Pilot Program gives you powerful evidence of the actual success of a finished product in full deployment. Logic PD will assist you in deploying a viable IoT solution for limited deployment to a select set of customers. But we don t stop there. We guide you through the pilot program, helping you gather insights on customer interactions, technology, and financials that will help define a successful full launch. Once we have established critical success factors from the Adrenaline Workshop, we are able to identify and recommend which factors to prototype, which may be one or a combination of the options below. In a timeframe that is typically days, we will deliver a prototype that allows you to meet your objective of in-field testing with real customers to achieve real data. All-inclusive monthly subscription (hardware and software) based on a set number of customers Fixed deployment timeframe (e.g. 6 months) In-field customer interviews conducted with you at regular intervals Available to expand to full production Summary of key findings Fixed price
8 Devices Network Cloud Application Functional Architecture Identify the functional blocks needed to complete the IoT ecosystem. Analysis of Alternatives Assess each functional block to determine the right solution based on your available options and performance criteria. Moving to full production: The systems integration process. Our comprehensive systems integration methodology incorporates a multidisciplinary approach to your full Internet of Things (IoT) solution. It includes a variety of analyses, verifications, simulations, and test protocols to assess all of the components of your system. Learning from the Adrenaline Pilot Service helps us transition quickly, shaving precious time from the development process. Logic PD has the technical and systems integration experience to assist you in any capacity from architecture definition all the way to full system development and launch. Define Interfaces Create the required connections between each block so data can transfer seamlessly. Develop Solution Develop the final solution to complete the IoT ecosystem.
9 Stakeholders EXTERNAL INTERNAL Delivering relentless value to your subscribers. You ve made the transition. Through careful planning and flawless execution, you ve transformed customers into subscribers. In order to continue to deliver that value on an ongoing basis and realize your financial expectations, you must consider a wide range of important business stakeholders. Each one will have unique needs you will need to consider. Throughout the development process and into deployment and management, Logic PD will continue to assist you as you grab your share of the Internet of Things (IoT) subscriber economy. Subscribers The core of your business you need to earn their business every month. Keeping up with their changing user expectations will be the focus to create and maintain meaningful relationships. Shareholders They ll want to understand the value you re generating with this transition. Making sure your subscription business is supported and funded requires communicating value with proof points along the way. Finance Month-end and year-end statements must evolve to meet new revenue and cost streams. Moving to a new business model requires finance to understand and support the change. Information Ongoing support of connectivity and integration with your business systems. By bringing IT in early, they will be able to support with technology solutions that allow the business to grow. Regulators You will need to demonstrate continued compliance. Transitioning to subscribers means making sure you continue to meet regulatory requirements as your offerings evolve. Admin/Support Expectations of customer service will increase as your subscribers increase engagement with you. Maintaining meaningful relationships will require a plan to support evolving customer needs.
10 Applications for a Smarter World Medical/ Life Sciences Medical/ Aerospace/ Medical/ Life Sciences Defense Life Sciences Aerospace/ Commercial/ Aerospace/ Defense Industrial Defense Commercial/ Commercial/ Industrial Industrial Doctors can monitor cardiac patients outside of the traditional hospital environment while maintaining the strictest level of data security and HIPPA regulations. By outfitting patients with a wearable sensor system that can read biometrics including ECG, heart rate, respiration rate, and activity level, physicians can review vital information without unnecessary appointments. Soldier modernization efforts require ongoing, untethered interactions between soldiers, decision makers, and machines including UAVs and other aircraft. Utilizing Internet of Things (IoT) technologies, militaries can create an integrated architecture of the complete battlefield by combining big data analytics, multilevel security capabilities, software defined networks, and a virtualization-aware network infrastructure, providing reliable and effective communication to remote troops. Sensors installed inside of industrial equipment will monitor parts that have exceeded their design thresholds and will send reports to owners. Early indications of equipment malfunction can trigger maintenance requests so service can be scheduled ahead of an actual part failure.
11 Logic PD Corporate Product Development Services 411 Washington Avenue N. Suite 400 Minneapolis, MN Tel: Fax: Eden Prairie Office Manufacturing Services 6201 Bury Drive Eden Prairie, MN Tel: Fax: Boston Office Product Development Services 5 Clock Tower Place West Lobby, Suite 400 Maynard, MA Tel: Montevideo Office Manufacturing Services 1646 North 9th Street Montevideo, MN Tel: Fax: San Diego Office Product Development Services 6005 Hidden Valley Road Suite 270 Carlsbad, CA Tel: Fax: Contact us at solutions@logicpd.com or visit our website at Logic PD All Rights Reserved. Rev Adrenaline is a registered trademark of Logic PD, Inc. All other trademarks are the property of their respective owners.
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