Steve Apps Senior Manager Accenture South Africa

Steve Apps Senior Manager Accenture South Africa

Agenda Smart Grid Research IoT Introduction Business Value from IoT IIOT Capability Model IoT Infrastructure Architecture Product Service Hybrids Implementation Approach

Smart Grid Research Utility Executive Predictions 2013 2014 Performance Grid Faults to increase by 2020 as a result of distributed renewable generation (Low Voltage Connections) Grid Faults to increase by 2020 as a result of large/utility scale renewables (Medium Voltage Connections) 41% 61% 33% 53% Revenue Impacts Distributed Generation to have an impact on revenue by 2030 43% 61% Microgrids to have an impact on revenue by 2030 30% 51% Competition Competition from new entrants in power electronics hardware and services will increase in the next five years Competition from Plug-in-Vehicles and associated infrastructure will increase in the next five years 46% 73% 59% 81% Source: Accenture s Digitally Enabled Grid Program, 2013 and 2014 Executive Surveys

IoT is about making things work together seamlessly Today Tomorrow Smart device at the center of an ecosystem of instruments An ecosystem of smart devices and instruments that talk to each other

Delivery Of Digital Services

Projections of IoT Growth Sensors Devices Networks APIs Apps Data 212B sensors expected by 2020 Location 50B devices expected by 2020 2.5B Connections accessing 4G-LTE by 2020 75% Fortune 1000 could offer public APIs by end of 2014. Billing 4.4B Total number of app users by 2017. Touch interfaces 16EB Mobile data traffic per month by 2018. User data Motion Chemical Light Heat Mapping Social Search Gesture Tracking Augmented Reality Transaction data Field data Inventory data Sound Marketing Voice Recognition Performance data

Typical problem statements for our clients? Achieve operational efficiency Move from product focus to service focus Discover unconventional revenues

Business Value from the IoT Value Categories Unconventional Revenues Incremental Revenues Approach Product as a Platform NextGen Products/Services Most Valuable Information Provider New Business and Operating Models Operations and Predictive Maintenance Commercial Optimization Value New Customer Experience and M2M Applications Preventive Maintenance Operational Efficiency Process Automation Operation Optimization Global Asset Visibility

Security and Privacy (HMI) Human Machine Interface Cloud and Infrastructure IIoT Capability Model Information Technology Strategy, Governance & Operating Model (*) Level 4 Business Applications and Decision Support Level 3 Operations Management Level 2 Data and Complex Event Management Level 1 Intelligent Devices IT / OT Convergence Business Service Architecture (*) Operational Technology (*) Business Capabilities Built on the ISA-95 international standard for the integration of enterprise and control systems

IoT Infrastructure Architecture Internet of Things Digitalisation Connected Devices Telecoms Platform Service & Security Management Application & Services Customer Satellite Transmission Infra Service & Security

Competing Standards And Platforms Proliferate Open Internet Consortium Communication Integration 50 members including: Siemens Industrial Internet Consortium Integration of Products 100+ members including: IBM AllSeen Alliance Solution Alignment 100+ members including: Qualcomm Thread Group Home Connectivity 50+ members including: Samsung Intel Intel Microsoft Tyco Samsung AT&T Panasonic Freescale Cisco GE Haier Big Ass Fans Honeywell Samsung Electrolux ARM MediaTek Cisco Nest HP Sony Silicon Labs Atmel LG GE Sharp Dell Technicolor ADT

Product-Service Hybrids Product Makers Product as a Platform NextGen Products/Services Most Valuable Information Provider Asset Owners / Operators Operations and Predictive Maintenance Commercial Optimization New Customer Experiences and Machine Applications New business and Operating Models Boost Productivity Improve Equipment Performance Increase Customer Trust & Loyalty

IoT Implementation Approach A Value- Focused IoT Strategy An IoT operating model Quick-win IoT Pilots with Partners IoT Solution Development Capabilities IoT Lifecycle Management Process Research market demand competitor initiatives technology art of the possible Mobilize a crossfunctional task force to execute on the strategy Partner with technology vendors to launch initial set of pilots Design full-scale solution with technology vendors based on pilot results Deploy solution on top or in place of existing processes and channels Prioritize existing processes customer channels Govern, through a centralized vendor assessment investment vetting process Run small scale pilots across priority use cases (<30 days from design to roll-out) Define hardware API integration data model vertical applications user experience Use data insights to increase workforce productivity asset utilization consumer adoption Define initiatives from top of IoT stack down, starting with data monetization scenarios Measure execution against strategy via a checklist pre-defined KPIs Validate priority use cases technical operational commercial Test full-scale solution to ensure interoperability security stability Innovate: Redefine processes pilot new revenue stream opportunities 13