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Driving Growth from the 
Industrial Internet of Things
“For those companies looking to build a more innovative 
mousetrap – a new product-service hybrid that will 
completely re...
What is the Industrial Internet of Things (IIoT)? 
The Industrial Internet of Things is the incorporation of intelligent i...
IIoT’s Top-Line Opportunity 
Optimistic predictions of the value created by the Industrial Internet range 
as high as $15 ...
Significant Value will be Realized from IIoT 
Value Categories Value Levers 
Value 
Unconvention 
al Revenues 
Product as ...
Four steps to exploit revenue-generating opportunities 
1. Innovate 
through 
Product- 
Service 
Hybrids 
2. Become 
the m...
1. Innovate through product-service hybrids 
Product Makers Asset Owners / Operators 
Preventive Maintenance 
Automation 
...
2. Be the VIP – Most Valuable Information Player 
Sell products, and your customers interact with you only when they have ...
3. Treat Services as R&D 
To innovate more quickly, industrial equipment makers will take a page from 
technology companie...
4. Integrate Digital and Human Labor 
While the adoption of the Industrial Internet will accelerate and expand the use of ...
Next Steps on IIoT Journey 
There are a number of initial steps that companies should be considering 
now to help them tak...
Get the report: 
www.accenture.com/iiot 
#IIoT 
Copyright © 2014 Accenture. All rights reserved. 12
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Driving Unconventional Growth through the Industrial Internet of Things

The emerging Industrial Internet will unleash new energy into the world of industrial products and services. To be a desirable supplier as well as partner in the digitally contestable future—and thus generate new revenues—companies will need to make the necessary changes. The time to push is now.

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Driving Unconventional Growth through the Industrial Internet of Things

  1. 1. Driving Growth from the Industrial Internet of Things
  2. 2. “For those companies looking to build a more innovative mousetrap – a new product-service hybrid that will completely revolutionize their company or industry – now is the time to harness the emerging Industrial Internet of Things to identify new growth opportunities and, with the right vision and leadership, turn them into reality.” Paul Daugherty CTO Accenture Copyright © 2014 Accenture. All rights reserved. 2
  3. 3. What is the Industrial Internet of Things (IIoT)? The Industrial Internet of Things is the incorporation of intelligent industrial products, processes and services that communicate with each other and with people over a global network. Intelligent technologies to fuel innovation across the eco-system Data from Wearable devices Analytics from mobile devices Digital Workforce Management Inputs Outputs M2M comm. on-board devices The Industrial Internet of Things Platform Intelligent Plants Copyright © 2014 Accenture. All rights reserved. 3
  4. 4. IIoT’s Top-Line Opportunity Optimistic predictions of the value created by the Industrial Internet range as high as $15 trillion of global GDP by 2030. Operational Efficiency Automation, more flexible production techniques and predictive maintenance Top-Line Growth New digital products and services, and generate entirely new sources of revenue Copyright © 2014 Accenture. All rights reserved. 4
  5. 5. Significant Value will be Realized from IIoT Value Categories Value Levers Value Unconvention al Revenues Product as a Platform NextGen Products/Services Most Valuable Information Provider Data Analysis & Recommendations Boost Productivity Improve Equipment Performance Increase Customer trust & loyalty Incremental Revenues Operational Efficiency Preventive Maintenance Automation Operation Optimization Services Reduce Resource cost Copyright © 2014 Accenture. All rights reserved. 5
  6. 6. Four steps to exploit revenue-generating opportunities 1. Innovate through Product- Service Hybrids 2. Become the most valuable information player 3. Treat services as R&D 4. Create an IIoT workforce Copyright © 2014 Accenture. All rights reserved. 6
  7. 7. 1. Innovate through product-service hybrids Product Makers Asset Owners / Operators Preventive Maintenance Automation Operation Optimization Services Reduce Resource cost Product as a Platform NextGen Products/Services Most Valuable Information Provider Data Analysis & Recommendations Boost Productivity Improve Equipment Performance Increase Customer trust & loyalty Copyright © 2014 Accenture. All rights reserved. 7
  8. 8. 2. Be the VIP – Most Valuable Information Player Sell products, and your customers interact with you only when they have a problem. Sell services, and you gain multiple opportunities to create customer touch points, build trust and become the preferred provider for new services. Make the consumer aware of their “Internet of Things” and then work with the ecosystem partners to drive next generation customer experiences. • Increase ability to have context rich interactions within value chains • System offers analytics on large real-time data for diagnostic and recommendation • Share data with partners for value – added services across the eco-system e.g. carrier, vehicle and payment services M2M in the home Loosely connected Consumer M2M on the move Today Future devices Networked Enterprise M2Ms Cross selling & new value-add services New Consumer M2M Copyright © 2014 Accenture. All rights reserved. 8
  9. 9. 3. Treat Services as R&D To innovate more quickly, industrial equipment makers will take a page from technology companies: they will treat services as a speedy laboratory for discovering the features that their customers want. Products start to sound off. A product once installed a the customer will be the primary feedback to the vendor from maintenance status to request for feature enhancements. Hardware is not that hard after all. R&D intensity is high in industrial sectors where scientists and technologies are needed in electro-mechanical devices. However embedded software can be upgraded in the field with new functionality that allows innovation to be pushed out sooner. Cooperative product development. The common drivers that influence the R&D efforts of makers of products are energy management, safety, sensing and measurement. A new driver will be more about the eco-system of intelligence machines, processes and people in a global network Copyright © 2014 Accenture. All rights reserved. 9
  10. 10. 4. Integrate Digital and Human Labor While the adoption of the Industrial Internet will accelerate and expand the use of digital labor (in the form of automation using intelligent software and robots), greater returns and productivity gains will come from augmentation, which seamlessly blends digital and human labor in task-specific environments Examples Self-driving cars create an entirely different kind of commute and driving experience Adaptive robots working side-by-side with people on the factory floor Remote operation of mining equipment from the Command Center Copyright © 2014 Accenture. All rights reserved. 10
  11. 11. Next Steps on IIoT Journey There are a number of initial steps that companies should be considering now to help them take advantage of the growth potential of the Industrial Internet of Things including: Think boldly about value potential from product-service hybrids. Cultivate tomorrow’s partner ecosystem. Start now to design and develop Industrial Internet platform. Closely study Industrial Internet financials. Prepare marketing/sales/service to promote new digital products and services. Clarify legal rights, obligations and secure access to data generated from machines to deliver new digital services. Think about how to augment workforce with smart machines. Copyright © 2014 Accenture. All rights reserved. 11
  12. 12. Get the report: www.accenture.com/iiot #IIoT Copyright © 2014 Accenture. All rights reserved. 12

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