Customers today have new expectations. And never before has the customer experience been so critical than in the world IoT. Learn monetization strategies as well as the infrastructure require for delivering memorable customer experiences.

1. Monetizing The Internet of Things:
Creating a Connected Customer Experience
Rich Becker, Industry Solutions

2. Today’s Presenters
Rich Becker
IoT Solutions and Strategy Leader
Chris Kuntz
VP, EcoSystem Programs

3. ThingWorx
is
the
1st
Applica4on
Pla6orm
for
the
Connected
World™
–
one
that
combines
the
key
func4onality
of
Web
2.0,
social
media
and
Connected
Intelligence™,
and
applies
it
to
any
process
that
involve
things.
3
Rela4onship
Business
Management

4. Agenda
1. Introductions
2. The “Shift” to Subscriptions
3. IoT – Market Trends & Impact on Product Companies
4. IoT – Harnessing the Shift
5. Subscriptions & Connected Products Monetization Strategies
6. Q&A

5. We build modern, flexible and easy to use
enterprise software (RBM) that enables
companies to manage all aspects of their
relationship with their subscribers
5
Rela4onship
Business
Management

6. 6.8 Billionpotential subscribers on
mobile, social and web.
71%of consumer spend will be
on access, not ownership.
By 2018,
- 2014 McKinsey Global Media Report
The world has shifted to the Subscription
Economy

7. Customers today have new expectations
Personal Real-Time Immediate
fulfillment
On Going
Value
Memorable
Services

8. consumer
goods
communication
healthcare Internet
Of Things
technology
education music entertainment
Every
industry is
shifting

9. Winners are delivering the Subscription
Experience
Personal Real-Time Immediate
fulfillment
On Going
Value
Memorable
Services

10. Relationships start with with the “Subscriber
Identity”
Name
Email
Twitter
TRADITIONAL RECORD
SUBSCRIBER IDENTITY RECORD
Phone
Company
Facebook
Purchases
Products
Local Pricing
Promotions
Adjustments
*Usage metrics (outcome based billing)
*Add-Ons, Associated Products or Provisioned Assets
*Service Requests, Inquiries, Exchanges
*Service Programs
*Consumables, Training, & Programs
Payment history
Refund history
Lifetime Value
Renewal Value
Aging balance

11. The Subscription Experience
Requires
Relationship Business Management
Commerce Billing Finance
RBM

12. Transformational across a business
5 Clicks 4 Hours 3 Days
< 180
Days
Change Pricing Send 3M Bills Shorten Close
Launch New
Product
Pricing flexibility Operational Scale Revenue Automation Technical Agility
CMO COO CFO CIO

13. Payment Gateways
Taxation
Mediation
Provisioning
Relationship Business Management (RBM) Ecosystem
BILLING FINANCE
Recurring & Usage Rating
Taxation
Intuitive, Accurate Invoices
Global Payment Collections
Revenue Recognition
Accounting Close
GL Integration
Reporting
COMMERCE
Product Catalog
Quotes and Guided Selling
Commerce APIs and Checkout Pages
Subscriber Lifecycle Management

14. PTC
IoT is
Transforming
Every Industry

15. consumer
goods
communication
healthcare transportation technology
public safety wearables entertainment
IoT is
transforming
every industry

16. New Capabilities of Smart, Connected Product
New Capabilities of Smart, Connected Products

17. VALUE REDEFINED

18. HARDWARE
SOFTWARE
EMBEDDED
CLOUD
PRODUCT
SERVICE

19. Improve
Customer
Experience
Leverage data
from connected
products for
improved service,
support and
usability
Optimize
Business
Processes
Combine real-
time data with
existing systems
to increase
efficiency
Differentiate
Offering
Increase pace of
product and
service
innovation
New
Revenue
Streams
Unlock new
business models
and realize new
value-add
opportunities
$
Value is Created with New Capabilities

20. © 2014 ThingWorx
Communications
Elements
Internet
Mobile Networks
Device Clouds
Wireless Provisioning
The Network
Connect
Application
Enablement
BUSINESS LOGIC
3D STORAGE
ENGINE
REST APIs
SERVICE
INTEGRATION
COMMUNICATIONS
MASHUP BUILDER SQUEAL 3RD PARTY TOOLS
Sensors, Devices
& Smart Products
Enable
Apply
Applications
Cloud
Services
Business
Systems
Value
IoT Solution Framework

21. © 2014 ThingWorx
Communications
Elements
Internet
Mobile Networks
Device Clouds
Wireless Provisioning
The Network
Connect
Application
Enablement
Subscriptions
Selling a Service
Usage-based Billing
Service Contracts
Cloud
Services
Business
Systems
BUSINESS LOGIC
3D STORAGE
ENGINE
REST APIs
SERVICE
INTEGRATION
COMMUNICATIONS
MASHUP BUILDER SQUEAL 3RD PARTY TOOLS
Sensors, Devices
& Smart Products
Enable
Apply
Monetize
Zuora: Subscription Billing Platform

22. IoT App Store
• Accelerates platform
adoption through global
sharing of IP
• Improve IoT solution time-
to-market through
application “assembly”
• Creating additional
revenue streams for Apps,
Extensions, etc.

23. NEW CAPABILITIES OF SMART CONNECTED
PRODUCTS
The way products create value is changing
VALUE REDEFINED
Improved customer experience and differentiated
offerings
IoT SOLUTION FRAMEWORK CAPTURES VALUE
Technology platform purpose-built for IoT with App
Dev and Marketplace tools to drive value
Creating Value from the Internet of Things

24. PTC:
Smart
Connected
Products
IoT
Infrastructure,
Solution, Case
Studies

25. Joy Mining is a worldwide leader in high-
productivity mining solutions that manufactures
and markets original equipment and
aftermarket parts and services for the mining
industries.
Deployment results:
• Anticipate equipment failures & efficiently respond
to problems reducing equipment downtime
• Optimize mining processes with new analytics to
reduce the cost of resources & increase
production
• Manage the overall mining operation on behalf of
the mine owner. Transition from pay per product
to pay per tonnage of earth mined
“The future gains in productivity will come from
system improvements, not just the product
itself. This requires smart connected product
systems that can monitor and optimize the full
system performance.”
– Ted Doheny
CEO, Joy Global
Innovation: Joy Global Transforms Business Model

26. All Traffic Solutions is the leading
manufacturer of signs used by police
departments and local governments to
help understand and manage traffic.
Results:
• Delivered an innovative solution for law
enforcement professionals called the TraffiCloud
• Faster time to market
• Rapid development of mobile UI
• Advanced data mining that All Traffic can now
offer its customers
“ThingWorx’s rapid application development
environment and scalable platform allows us
to extend our solution and deliver new
services to our customers in ways that were
previously impossible.”
– Scott Johnson
CEO, All Traffic Solutions
Innovation: All Traffic Captures New Revenue Streams

27. Usage-­‐based
Billing

28. Usage-­‐based
Billing

29. Monetization
Strategies
Subscription-Based
Strategies &
Case Studies

30. The Internet of Things
Connected
Home
Connected
Consumer
Devices
Connected
Car
Enterprise /
Industrial
Devices
• Smart Energy,
Utilities
• Security,
Surveillance
• Automation &
Control
• Appliances
• Routers, Gateways
• Telematics,
Emergency
• Fleet
Management
• Insurance,
Tracking
• Infotainment
Head unit
• Wearables
• Person, Pet
Tracking
• Health, Medical
• eReaders, Frames
• Gaming consoles
• ATM, Vending
• POS, Digital
Signage
• Enterprise
Tracking
• Hand Held
Terminal
• Retail Kiosks, PoS
• Intelligent Digital

31. IoT
App
Store
After
Market
4 Monetization Strategies
Box
Data

32. 32
The “Box” strategy
Strategy 1:
Small B ox
• Design product
• Sell product
• Market price
Old World
• Design platform
• Consumer driven choice
• Revenue model
New World
Big Box
• Design equipment
• Sell, install, train,
deploy
• T&M for service
• Bill for consumables
• Service Contracts
Old World
• Design platform
• Outcome based billing
• Consumables, service &
training based on outcome
metrics & personalied
programs
New World
Box

33. What we learned from Life Technologies
From equipment provider to genomics as a service provider
Science is very close to a vaccine for malaria
Subscriptions are a major win for scientists
Favorite feature: Ability to have rate plans that include a bundled cost for
hardware

34. Old Way
New Way
• Equipment Cost
• Services
• Training
• Upgrades, etc.
Capital Equipment
OEM Manufacturing
Opportunity?
• Cost/test
• Improve Flexibility
• Optimize Supply Chain
New Experience &
Optimized Costs
Real Revenue
Impact!

35. 35
The “App Store” strategy
Strategy 2:
Hardware + SW + Data =
Customer Centric
applications
“Your” App Store
Offerings
&
Provisioning
SUBCRIBER IDENTITY RECORD
Commerce
Billing
Finance
App
App Store
• Platform w/ OEM supported
apps
• Little or no updates
• One time fee
Old World
• Consumer driven platform /
device
• OEM + 3rd party apps developed
• Flexible revenue models
New World

36. The “After Market” strategy
Strategy 3:
After
Market
After Market
• Extended warranty
options = one price fits
all
• Upgrades & continued
relationship not
supported
Old World
• Sign up for initial service or
outcome based on contract
• Aligned after market contract
to customer specific options
New World

37. The “Data” strategy
Strategy 4:
Small Data
• No collected data
• Customer collects
data if they want
Old World
• Data from connected
products
• Solution based programs for
consumers
New World
Bi g Data
• Analytic tools for
collection &
reporting
Old World
• Data from connected
products
• Outcome based on
applications created for
New World
Data

38. Use smart connected
products, cloud
solution, and new
partners to transform
business.
Sell & Support each
customer as
Individual
Use IoT to enable
new solutions for
each customer
Replicate processes
across all business
units
Transform internal
processes & selling
channels
DELIVER A NEW EXPERIENCE
“Move 60% of current
revenue to new “Digital
Experience”
“We are good at creating single invoices for $1Million, but to create
a million individual invoices takes new thinking, new processes, and
new systems.”

39. 39
Rela4onship
Business
Management
Define the Future of IoT
May 4-7, 2015 Boston, MA

40. Q&A

41. Thank You