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Connected 
Service 
Leveraging 
M2M 
and 
IoT 
Data 
to 
Create 
Proactive 
1:1 
Customer 
Engagements 
in 
Sales, 
Customer 
Care, 
and 
Field 
Service 
Prof. 
Dr. 
Michael 
J. 
Capone 
Principal 
Business 
Analyst, 
DCX 
michael.capone@capgemini.com 
+49 
151 
4025 
2836
Status 
Quo 
-­‐ 
Reactive 
The 
common 
post-­‐purchase 
practice 
today 
in 
many 
sectors 
is 
to 
respond 
(react) 
to 
inquires 
and 
requests 
from 
the 
customer 
or 
consumer. 
Academically 
speaking, 
it´s 
too 
late.
Status 
Quo 
M2M 
and 
IoT 
Systems 
are 
Immature 
Copyright 
© 
Capgemini 
2013. 
All 
Rights 
Reserved 
Connected 
World 
DF14.pptx 
3 
Only 
19% 
of 
manufacturers 
can 
acquire 
data 
from 
their 
products 
and 
15% 
actually 
do. 
9% 
analyze 
product 
data 
periodically 
and 
5% 
use 
the 
analysis 
to 
trigger 
follow-­‐up 
activities. 
Only 
3% 
of 
manufacturers 
acquire, 
analyze 
and 
act 
in 
near-­‐time.
Connected 
Service 
Principles 
1. Products 
do 
not 
suddenly 
fail. 
2. The 
data 
generated 
by 
connected 
products 
can 
be 
used 
to 
create 
a 
competitive 
advantage. 
It´s 
“internal 
data”. 
The 
product 
can 
report 
faster 
and 
more 
accurately 
than 
it´s 
human 
operator. 
3. The 
full 
value 
of 
internal 
data 
is 
realized 
when 
the 
data 
is 
analyzed 
and 
used 
in 
near-­‐time 
to 
trigger 
specific 
one-­‐to-­‐one 
customer 
interactions 
in 
sales, 
service, 
and 
customer 
care. 
4. Anything 
can 
be 
a 
connected 
product. 
Cars, 
machines, 
wind 
turbines, 
street 
lamps, 
trees...
Connected 
Service 
| 
Full 
Circle 
IoT 
When 
the 
data 
indicates 
an 
issue 
that 
can 
cause 
a 
problem, 
a 
case 
is 
created 
and 
assigned 
to 
the 
proper 
skill. 
Data 
from 
many 
connected 
devices 
is 
aggregated 
and 
stored. 
1 
MB 
new 
data 
per 
day. 
Performance 
and 
usage 
data 
is 
acquired 
and 
transmitted 
every 
x 
seconds. 
Interventions 
are 
performed 
to 
resolve 
the 
issue: 
1. Customer 
Care 
provides 
the 
operator 
tips 
and 
instructions, 
2. Sales 
proactively 
sends 
the 
customer 
offers 
and 
orders, 
and/or 
3. Technical 
Service 
is 
dispatched 
to 
perform 
maintenance 
or 
repair. 
Connected 
Service 
uses 
M2M 
and 
IoT 
data 
in 
real-­‐time 
to 
trigger 
a 
1:1 
post-­‐purchase, 
proactive 
dialog 
with 
the 
customer. 
1 
2 
4 5 
The 
resolution 
is 
recorded. 
Outages 
and 
accidents 
are 
prevented, 
sales 
captured, 
and 
customer 
dissatisfaction 
eliminated 
6 
Data 
is 
analyzed 
in 
real-­‐time 
to 
identify 
issues. 
3
Connected 
Service 
| 
Reference 
Architecture 
Solution 
Layer 
Description 
Technology 
Partners 
A1. 
Acquisition 
Sensor 
modules 
extract 
system 
logs 
or 
operating 
data 
from 
machines 
or 
vehicles 
and 
transmit 
wirelessly. 
A2. 
Aggregation 
The 
data 
from 
muiltiple 
machines 
or 
vehicles 
collected 
and 
stored. 
Up 
to 
1 
TB 
/ 
day 
/ 
machine. 
A3. 
Analysis 
Data 
is 
interpreted. 
Data 
that 
indicates 
a 
sales 
opportunity 
or 
service 
issue/problem 
are 
synchronized 
to 
SFDC. 
A4. 
Assignment 
A 
case 
is 
created 
and 
assigned 
to 
a 
representative 
in 
sales 
or 
service. 
A5. 
Action 
The 
assigned 
representative 
in 
sales, 
service 
or 
customer 
center 
receives 
an 
alert 
to 
take 
certain 
action. 
The 
representative 
records 
activities. 
Copyright 
© 
Capgemini 
2013. 
All 
Rights 
Reserved 
Connected 
World 
DF14.pptx 
6
Connected 
Service 
| 
Combine 
Use 
Cases 
Business 
Case 
Manu 
Auto 
Trans 
Energy 
Predictive 
Maintenance 
Improve 
Uptime 
!!!!! 
!!!!! 
!!!!! 
!!!!! 
Improve 
Customer 
Satisfaction 
!!! 
!!!! 
!!! 
!! 
Improve 
Efficiency 
!!!! 
!! 
!!!!! 
!!!!! 
Enable 
Predictive 
Ordering/Selling 
!!!!! 
!!!!! 
!! 
!! 
Optimize 
Resources 
!!!! 
!! 
!!!!! 
!!!!! 
Enhance 
Safety 
!!!!! 
!!!! 
!!!!! 
! 
Lower 
Environmental 
Impact 
!!! 
!!!!! 
!! 
!!! 
Steer 
Product 
Development 
!! 
!!! 
! 
Enable 
New 
Revenue 
Models 
!!!! 
!! 
!! 
!!!
Business 
Cases 
| 
Automotive 
Copyright 
© 
Capgemini 
2013. 
All 
Rights 
Reserved 
Connected 
World 
DF14.pptx 
8 
Productivity 
„Change the fan 
belt in 6 days to 
prevent A/C from 
failing.“ 
Enviroment. „Improve 
your fuel efficiency by 
shifting before 2.200 
RPMs.“ 
Performance. 
„Extend the life of 
your vehicle and get 
more power by using 
higher octane fuel.“ 
Performance. 
„Deactivate ECO Mode 
to get more power for 
passing.“ 
Safety. „Avoid another 
accident by maintaining a 
5 meter distance.“ 
Service. „Stop 
ahead. Roadside 
assistance is 
behind you.“ 
Sales. „Upgrade to a 5 
series to get the 
performance you need.“ 
Economy. „Save 
money by down-shifting 
instead of 
breaking.“ 
Sales. „Change your 
tires in 2 weeks to get 
improve performance 
and ensure safety.“ 
Service. „Add 
coolant to prevent 
over-heating.“
Productivity & Sales. 
„Your hopper will be 
empty in 3 hours.“ 
Copyright 
© 
Capgemini 
2013. 
All 
Rights 
Reserved 
Connected 
World 
DF14.pptx 
9 
Performance. „Improve 
output 2% by opening air 
vent „A.“ 
Sales. „You need a 
new A27 fuse in 96 
hours.“ 
Safety. „Avoid 
accidents by closing 
the lid before 
activating the 
machine.“ 
Environment & Sales 
„Decrease emissions 
by using our new 
synthetic lubircant.“ 
Productivity. „This 
module will fail in 7 
hours. A service 
technician is already 
on the way.“ 
Efficency. „“Combine 
parts in trays to reduce 
tray inventory and 
reduce conveyor 
usage.“ 
Service & Sales. „Order 
parts or schedule service. 
This module has not been 
turned on in 2 days.“ 
Safety & Productivity. 
„The unit will over-heat 
in 3 hours. Add 
coolant or turn-off.“ 
Safety. „Schedule 
training. This unit is not 
being operated properly.“
Copyright 
© 
Capgemini 
2013. 
All 
Rights 
Reserved 
Connected 
World 
DF14.pptx 
10 
Safety. „Propeller B is 
oscilatting and 
requires re-balancing.“ 
Service. „Ventillation 
required. Nacell 
temperature increasing.“ 
Productivity. „Service 
required. Unit is 
outputting 3% less 
energy than comps.“ 
Efficiency. „Service 
required. This unit 
outputting 7% less energy 
than comps.“ 
„Safety. Beacon light 
will fail in 64 hours.“
Connected 
Service 
| 
New 
Revenue 
Models 
• Priority 
SLAs. 
The 
SLA 
or 
guaranty 
of 
the 
future 
will 
be 
pre-­‐emptive. 
Instead 
of 
a 
24 
hour 
response 
time, 
the 
manufacturer 
will 
offer 
to 
service 
a 
product 
before 
it 
breaks 
and 
before 
the 
customer 
repotrs 
an 
issue. 
This 
service 
level 
will 
have 
a 
price. 
• Personalized 
Rates. 
Companies 
will 
offer 
pay-­‐for-­‐use, 
where 
price 
or 
rates 
reflect 
actual 
usage 
and 
behavior. 
Customers 
will 
opt-­‐in 
to 
save 
money. 
• Factory-­‐as-­‐a-­‐Service 
or 
Product-­‐as-­‐a-­‐Service. 
Products 
will 
be 
free. 
The 
company 
will 
replace 
(or 
complement) 
the 
one-­‐time 
sale 
of 
a 
product 
with 
recurring 
revenue 
to 
support 
the 
customer. 
Customers 
will 
subscribe 
to 
services 
in 
order 
to 
get 
tips 
to 
save 
fuel, 
improve 
performance, 
lower 
operating 
costs, 
and 
prevent 
accidents. 
• Data 
Remarketing. 
Products 
will 
be 
free. 
The 
data 
generated 
by 
the 
product 
will 
be 
packaged, 
sold 
and 
re-­‐sold 
to 
third-­‐parties. 
This 
revenue 
will 
more 
than 
offset 
the 
cost 
of 
the 
product, 
because 
it 
is 
recurring, 
and 
the 
marginal 
cost 
of 
the 
data 
is 
almost 
zero.
Connected 
Service 
| 
Live 
Demonstrations 
Copyright 
© 
Capgemini 
2013. 
All 
Rights 
Reserved 
Connected 
World 
DF14.pptx 
12
Connected 
Store 
| 
SmartPOS 
Presence 
of 
BING 
indicators 
triggers 
an 
intervention, 
i.e. 
assignment 
and 
action. 
Presence 
of 
BING 
indicators 
triggers 
an 
intervention, 
i.e. 
assignment 
and 
action. 
Data 
is 
aggregated 
and 
analyzed 
in 
real-­‐time 
to 
identify 
BING 
indicators. 
Consumer 
behavior 
is 
monitored, 
i.e. 
acquired. 
1 
2 
3 
3
www.capgemini.com 
About 
Capgemini 
With 
more 
than 
120,000 
people 
in 
40 
countries, 
Capgemini 
is 
one 
of 
the 
world's 
foremost 
providers 
of 
consulting, 
technology 
and 
outsourcing 
services. 
The 
Group 
reported 
2011 
global 
revenues 
of 
EUR 
9.7 
billion. 
Together 
with 
its 
clients, 
Capgemini 
creates 
and 
delivers 
business 
and 
technology 
solutions 
that 
fit 
their 
needs 
and 
drive 
the 
results 
they 
want. 
A 
deeply 
multicultural 
organization, 
Capgemini 
has 
developed 
its 
own 
way 
of 
working, 
the 
Collaborative 
Business 
ExperienceTM, 
and 
draws 
on 
Rightshore 
®, 
its 
worldwide 
delivery 
model. 
Rightshore® 
is 
a 
trademark 
belonging 
to 
Capgemini 
The 
information 
contained 
in 
this 
presentation 
is 
proprietary. 
Copyright 
© 
2013 
Capgemini. 
All 
rights 
reserved.

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Connected Service: Leveraging M2M and IoT Data to Create Proactive 1:1 Customer Engagements

  • 1. Connected Service Leveraging M2M and IoT Data to Create Proactive 1:1 Customer Engagements in Sales, Customer Care, and Field Service Prof. Dr. Michael J. Capone Principal Business Analyst, DCX michael.capone@capgemini.com +49 151 4025 2836
  • 2. Status Quo -­‐ Reactive The common post-­‐purchase practice today in many sectors is to respond (react) to inquires and requests from the customer or consumer. Academically speaking, it´s too late.
  • 3. Status Quo M2M and IoT Systems are Immature Copyright © Capgemini 2013. All Rights Reserved Connected World DF14.pptx 3 Only 19% of manufacturers can acquire data from their products and 15% actually do. 9% analyze product data periodically and 5% use the analysis to trigger follow-­‐up activities. Only 3% of manufacturers acquire, analyze and act in near-­‐time.
  • 4. Connected Service Principles 1. Products do not suddenly fail. 2. The data generated by connected products can be used to create a competitive advantage. It´s “internal data”. The product can report faster and more accurately than it´s human operator. 3. The full value of internal data is realized when the data is analyzed and used in near-­‐time to trigger specific one-­‐to-­‐one customer interactions in sales, service, and customer care. 4. Anything can be a connected product. Cars, machines, wind turbines, street lamps, trees...
  • 5. Connected Service | Full Circle IoT When the data indicates an issue that can cause a problem, a case is created and assigned to the proper skill. Data from many connected devices is aggregated and stored. 1 MB new data per day. Performance and usage data is acquired and transmitted every x seconds. Interventions are performed to resolve the issue: 1. Customer Care provides the operator tips and instructions, 2. Sales proactively sends the customer offers and orders, and/or 3. Technical Service is dispatched to perform maintenance or repair. Connected Service uses M2M and IoT data in real-­‐time to trigger a 1:1 post-­‐purchase, proactive dialog with the customer. 1 2 4 5 The resolution is recorded. Outages and accidents are prevented, sales captured, and customer dissatisfaction eliminated 6 Data is analyzed in real-­‐time to identify issues. 3
  • 6. Connected Service | Reference Architecture Solution Layer Description Technology Partners A1. Acquisition Sensor modules extract system logs or operating data from machines or vehicles and transmit wirelessly. A2. Aggregation The data from muiltiple machines or vehicles collected and stored. Up to 1 TB / day / machine. A3. Analysis Data is interpreted. Data that indicates a sales opportunity or service issue/problem are synchronized to SFDC. A4. Assignment A case is created and assigned to a representative in sales or service. A5. Action The assigned representative in sales, service or customer center receives an alert to take certain action. The representative records activities. Copyright © Capgemini 2013. All Rights Reserved Connected World DF14.pptx 6
  • 7. Connected Service | Combine Use Cases Business Case Manu Auto Trans Energy Predictive Maintenance Improve Uptime !!!!! !!!!! !!!!! !!!!! Improve Customer Satisfaction !!! !!!! !!! !! Improve Efficiency !!!! !! !!!!! !!!!! Enable Predictive Ordering/Selling !!!!! !!!!! !! !! Optimize Resources !!!! !! !!!!! !!!!! Enhance Safety !!!!! !!!! !!!!! ! Lower Environmental Impact !!! !!!!! !! !!! Steer Product Development !! !!! ! Enable New Revenue Models !!!! !! !! !!!
  • 8. Business Cases | Automotive Copyright © Capgemini 2013. All Rights Reserved Connected World DF14.pptx 8 Productivity „Change the fan belt in 6 days to prevent A/C from failing.“ Enviroment. „Improve your fuel efficiency by shifting before 2.200 RPMs.“ Performance. „Extend the life of your vehicle and get more power by using higher octane fuel.“ Performance. „Deactivate ECO Mode to get more power for passing.“ Safety. „Avoid another accident by maintaining a 5 meter distance.“ Service. „Stop ahead. Roadside assistance is behind you.“ Sales. „Upgrade to a 5 series to get the performance you need.“ Economy. „Save money by down-shifting instead of breaking.“ Sales. „Change your tires in 2 weeks to get improve performance and ensure safety.“ Service. „Add coolant to prevent over-heating.“
  • 9. Productivity & Sales. „Your hopper will be empty in 3 hours.“ Copyright © Capgemini 2013. All Rights Reserved Connected World DF14.pptx 9 Performance. „Improve output 2% by opening air vent „A.“ Sales. „You need a new A27 fuse in 96 hours.“ Safety. „Avoid accidents by closing the lid before activating the machine.“ Environment & Sales „Decrease emissions by using our new synthetic lubircant.“ Productivity. „This module will fail in 7 hours. A service technician is already on the way.“ Efficency. „“Combine parts in trays to reduce tray inventory and reduce conveyor usage.“ Service & Sales. „Order parts or schedule service. This module has not been turned on in 2 days.“ Safety & Productivity. „The unit will over-heat in 3 hours. Add coolant or turn-off.“ Safety. „Schedule training. This unit is not being operated properly.“
  • 10. Copyright © Capgemini 2013. All Rights Reserved Connected World DF14.pptx 10 Safety. „Propeller B is oscilatting and requires re-balancing.“ Service. „Ventillation required. Nacell temperature increasing.“ Productivity. „Service required. Unit is outputting 3% less energy than comps.“ Efficiency. „Service required. This unit outputting 7% less energy than comps.“ „Safety. Beacon light will fail in 64 hours.“
  • 11. Connected Service | New Revenue Models • Priority SLAs. The SLA or guaranty of the future will be pre-­‐emptive. Instead of a 24 hour response time, the manufacturer will offer to service a product before it breaks and before the customer repotrs an issue. This service level will have a price. • Personalized Rates. Companies will offer pay-­‐for-­‐use, where price or rates reflect actual usage and behavior. Customers will opt-­‐in to save money. • Factory-­‐as-­‐a-­‐Service or Product-­‐as-­‐a-­‐Service. Products will be free. The company will replace (or complement) the one-­‐time sale of a product with recurring revenue to support the customer. Customers will subscribe to services in order to get tips to save fuel, improve performance, lower operating costs, and prevent accidents. • Data Remarketing. Products will be free. The data generated by the product will be packaged, sold and re-­‐sold to third-­‐parties. This revenue will more than offset the cost of the product, because it is recurring, and the marginal cost of the data is almost zero.
  • 12. Connected Service | Live Demonstrations Copyright © Capgemini 2013. All Rights Reserved Connected World DF14.pptx 12
  • 13. Connected Store | SmartPOS Presence of BING indicators triggers an intervention, i.e. assignment and action. Presence of BING indicators triggers an intervention, i.e. assignment and action. Data is aggregated and analyzed in real-­‐time to identify BING indicators. Consumer behavior is monitored, i.e. acquired. 1 2 3 3
  • 14. www.capgemini.com About Capgemini With more than 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model. Rightshore® is a trademark belonging to Capgemini The information contained in this presentation is proprietary. Copyright © 2013 Capgemini. All rights reserved.