Io T Value Roadmap Io T Value Roadmap

Io. T Value Roadmap

Io. T Value Roadmap Key Io. T use cases from hundreds of customer interactions across connected products, operations, and systems are defined and linked to their business impact 2

Io. T Value Drivers Optimize Operational Performance Operational Effectiveness Improve Risk Management Reduce Product and Service Costs Improve Customer Experience Strategic Differentiation Differentiate Product and Service Offering Enable New Revenue Streams 3

26 Key Io. T Use Cases Across Business Functions MARKETING / SALES PRODUCT DEVELOPMENT OPERATIONS / MANUFACTURING SERVICE / SUPPORT Customer Insights and Opportunities Connected Product Usage Analysis Asset and Material Tracking Monitoring and Diagnostics Flexible Billing and Pricing Models Connected Product Quality Analysis Connected Operations Intelligence Remote Service New Value Added Services Connected Software Management Unified Key Performance Indicators Real-Time Asset Health Monitoring Operations Management Improvements Automated Service Execution Condition-Based Predictive Maintenance Connected Service Parts Planning Warranty Cost Management INFORMATION / OPERATIONAL TECHNOLOGY Flexible Product and Asset Connectivity Identity and Security Management Scalable Io. T Operations Management CUSTOMER Usage and Performance Dashboard Customer Self-Service Product Personalization Seamless Io. T Data Integration Automated Analytics and Actions Rapid Io. T Application Development 4

Optimize Operational Performance Combine real-time data from assets, enterprise systems, and people to increase operational efficiency of equipment, plants and logistics MARKETING / SALES PRODUCT DEVELOPMENT OPERATIONS / MANUFACTURING SERVICE / SUPPORT Asset and Material Tracking Connected Service Parts Planning Condition-based Predictive Maintenance Connected Operations Intelligence INFORMATION / OPERATIONAL TECHNOLOGY CUSTOMER Scalable Io. T Operations Management Seamless Io. T Data Integration Unified Key Performance Indicators Real-Time Asset Health Monitoring Operations Management Improvements 5

Improve Risk Management Improve ability to proactively identify and mitigate financial, safety, environmental, and regulatory compliance risk MARKETING / SALES INFORMATION / OPERATIONAL TECHNOLOGY PRODUCT DEVELOPMENT OPERATIONS / MANUFACTURING SERVICE / SUPPORT Connected Product Usage Analysis Asset and Material Tracking Monitoring and Diagnostics Flexible Product and Asset Connectivity Connected Product Quality Analysis Connected Operations Intelligence Warranty Cost Management Identity and Security Management Real-Time Asset Health Monitoring CUSTOMER Scalable Io. T Operations Management Seamless Io. T Data Integration 6

Reduce Product and Service Costs Implement proactive service, limit warranty costs and risks, and optimize service and product development processes MARKETING / SALES INFORMATION / OPERATIONAL TECHNOLOGY PRODUCT DEVELOPMENT OPERATIONS / MANUFACTURING SERVICE / SUPPORT Connected Product Usage Analysis Real-Time Asset Health Monitoring and Diagnostics Automated Analytics and Actions Remote Service Rapid Io. T Application Development Connected Product Quality Analysis Connected Software Management Automated Service Execution CUSTOMER Customer Self-Service Condition-Based Predictive Maintenance Connected Service Parts Planning Warranty Cost Management 7

Improve Customer Experience Make products smarter, easier to update, and more personalized to improve customer experience and value INFORMATION / OPERATIONAL TECHNOLOGY CUSTOMER Monitoring and Diagnostics Automated Analytics and Actions Usage and Performance Dashboard Remote Service Rapid Io. T Application Development Customer Self-Service MARKETING / SALES PRODUCT DEVELOPMENT OPERATIONS / MANUFACTURING SERVICE / SUPPORT New Value Added Services Connected Software Management Asset and Material Tracking Automated Service Execution Product Personalization 8

Differentiate Product and Service Offering Quickly deliver compelling, differentiated products and services that meet or anticipate customer demands OPERATIONS / MANUFACTURING SERVICE / SUPPORT INFORMATION / OPERATIONAL TECHNOLOGY CUSTOMER Rapid Io. T Application Development Usage and Performance Dashboard MARKETING / SALES PRODUCT DEVELOPMENT Customer Insights and Opportunities Connected Product Usage Analysis Flexible Billing and Pricing Models Connected Product Quality Analysis Customer Self-Service New Value Added Services Connected Software Management Product Personalization Automated Service Execution 9

Enable New Revenue Streams Maximize revenue opportunities and value capture from new services or new business models MARKETING / SALES Customer Insights and Opportunities Flexible Billing and Pricing Models PRODUCT DEVELOPMENT OPERATIONS / MANUFACTURING SERVICE / SUPPORT INFORMATION / OPERATIONAL TECHNOLOGY CUSTOMER Rapid Io. T Application Development Usage and Performance Dashboard Product Personalization New Value Added Services 10

Customer Insights and Opportunities Description Value Drivers Collect and analyze product usage, condition, and consumable data to anticipate customer needs, automatically trigger alerts for cross-sell and up-sell opportunities, forecast future purchases, and create new consumable resupply models. • Differentiate Product and Service Offering Current State Measures • Slow pace of product and service innovation • Market share / growth (%) ($) • Inefficient identifying up-sell and crosssell opportunities • Increased product / service revenue or margin (%) • Losing market share to new or low cost competitors • Customer satisfaction, net promoter score (#) • Enable New Revenue Streams • Upsell revenue; cross-sell revenue ($) • Product / Asset / Equipment utilization rate (%) • Time to market MARKETING / SALES 11

Flexible Billing and Pricing Models Description Value Drivers Integrate product usage and performance data to enable usage, performance, or outcome based pricing and subscription models that create disruptive business models, and increase value captured and market penetration opportunities. • Differentiate Product and Service Offering Current State Measures • Inability to differentiate offering or enter new markets • Market share / growth (%) ($) • Losing market share to new or low cost competitors • Enable New Revenue Streams • Increased product / service revenue or margin (%) • Service contract renewal rate (%) • Connected products or assets under management (#) • Number of users, logins, data views (#) MARKETING / SALES 12

New Value Added Services Description Value Drivers Aggregate data from products across the installed base and combine it with domain expertise to provide information, advisory, and managed services that enhance the customer’s operation of the product or understanding of their business. • Improve Customer Experience Current State Measures • Slow pace of product and service innovation • Market share / growth (%) ($) • Inability to differentiate offering or enter new markets • Increased product / service revenue or margin (%) • Differentiate Product and Service Offering • Enable New Revenue Streams • Upsell revenue; cross-sell revenue ($) • Number of users, logins, data views (#) MARKETING / SALES 13

Connected Product Usage Analysis Description Value Drivers Analyze and benchmark product performance and usage data collected through remote connectivity with sensorequipped products or systems to inform and improve product requirements definition, prioritization of features, options and variants, market segmentation, life cycle costs, and supply chain coordination and planning. • Improve Risk Management Current State Measures • Inefficient identifying up-sell and crosssell opportunities • Upsell revenue; cross-sell revenue ($) • Inability to identify and manage the configuration of fielded products, systems, and assets • Limited visibility into product performance, usage, environment, and quality • Reduce Product and Service Costs • Differentiate Product and Service Offering • Customer satisfaction, net promoter score (#) • R&D / Sales / Manufacturing / Service Costs ($) • Equipment up-time / product quality (%) • Product / Asset / Equipment utilization rate (%) PRODUCT DEVELOPMENT 14

Connected Product Quality Analysis Description Value Drivers Continuously analyze field data collected through remote connectivity with sensorequipped products or systems to improve root cause analysis and corrective actions, product quality, reliability and safety, preventive maintenance, and service. • Improve Risk Management Current State Measures • Limited visibility into product performance, usage, environment, and quality • Product failure rate (e. g. MTBF, mean time between failure) (%) • Poor capture and management of qualityrelated feedback causing repeated problems • Reduce Product and Service Costs • Differentiate Product and Service Offering • Number of recalls, warning letters, and audits (#) • Customer satisfaction, net promoter score (#) • Difficult to track quality and identify root cause • R&D / Sales / Manufacturing / Service Costs ($) • Rising service and warranty costs • Equipment up-time / product quality (%) • Poor product / equipment performance or DEVELOPMENT PRODUCT • Warranty costs ($) 15

Connected Software Management Description Value Drivers Remotely identify and manage the asmaintained configuration of fielded products, systems and assets; control the release of software updates and security patches by securely distributing packages of software files and instructions remotely. • Reduce Product and Service Costs Current State Measures • Slow pace of product and service innovation • Product failure rate (e. g. MTBF, mean time between failure) (%) • Inability to identify and manage the configuration of fielded products, systems, and assets • Number of recalls, warning letters, and audits (#) • Rising service and warranty costs • Poor product / equipment performance or unscheduled downtime • Improve Customer Experience • Differentiate Product and Service Offering • Mean time to repair (MTTR); resolution time • Trips avoided; remote fix rate (#) (%) PRODUCT DEVELOPMENT 16

Asset and Material Tracking Description Value Drivers Easily locate and monitor key assets (e. g. raw materials, final products, and containers) to optimize logistics, maintain inventory levels, prevent quality issues, and detect theft. • Optimize Operational Performance Current State Measures • Limited visibility into product performance, usage, environment, and quality • Upsell revenue; cross-sell revenue ($) • Inability to aggregate, analyze, and visualize operational intelligence across systems, assets, and people • Write offs of missing assets or stock ($) • Improve Risk Management • Improve Customer Experience • R&D / Sales / Manufacturing / Service Costs ($) • Low service level agreement (SLA) compliance OPERATIONS / MANUFACTURING 17

Connected Operations Intelligence Description Value Drivers Connect disparate silos of operational data (e. g. manufacturing, supplier, and logistics) into unified, real-time visibility across heterogeneous systems, people and assets to make faster and better decisions and improve operational performance. • Optimize Operational Performance Current State Measures • Limited visibility into product performance, usage, environment, and quality • Number of recalls, warning letters, and audits (#) • Inability to quickly re-configure manufacturing systems and introduce new smart technologies • Inability to get real-time correlated data from proprietary systems and heterogeneous equipment • Improve Risk Management • Manufacturing cycle time; overall equipment effectiveness (OEE) • Equipment up-time / product quality (%) • Product / Asset / Equipment utilization rate (%) • Difficult to incorporate data from existing OPERATIONS / MANUFACTURING business systems and external sources 18

Unified Key Performance Indicators Description Value Drivers Aggregate and contextualize data from isolated manufacturing systems and assets into actionable web and mobile applications that provide role-based views into key indicators, while also allowing drill-down into correlated data to diagnose problems more quickly and improve performance. • Optimize Operational Performance Current State Measures • Limited visibility into product performance, usage, environment, and quality • Product failure rate (e. g. MTBF, mean time between failure) (%) • Inability to get real-time correlated data from proprietary systems and heterogeneous equipment • Difficult to incorporate data from existing business systems and external sources in Io. T applications • Number of recalls, warning letters, and audits (#) • Manufacturing cycle time; overall equipment effectiveness (OEE) • Equipment up-time / product quality (%) • Difficult to track quality and identify root OPERATIONS / MANUFACTURING cause 19

Real-Time Asset Health Monitoring Description Value Drivers Minimize downtime and avoid potential equipment failures by enabling detailed monitoring of critical equipment condition and operating parameters to automatically trigger alerts and proactively initiate response from maintenance teams or OEM service networks when problems are detected. Current State • Optimize Operational Performance • Limited visibility into product performance, usage, environment, and quality • R&D / Sales / Manufacturing / Service Costs ($) • Inability to get real-time correlated data from proprietary systems and heterogeneous equipment • Poor capture and management of qualityrelated feedback causing repeated problems • Improve Risk Management • Reduce Product and Service Costs Measures • Manufacturing cycle time; overall equipment effectiveness (OEE) • Equipment up-time / product quality (%) • Mean time to repair (MTTR); resolution time • No problem found (%) • Difficult to track quality and identify root cause OPERATIONS / MANUFACTURING • Rising service and warranty costs 20

Operations Management Improvements Description Value Drivers Quickly improve how complex processes are monitored, managed, and optimized, and accelerate smart factory and Industry 4. 0 initiatives, by extending existing equipment and ERP/MES systems with connectivity, interoperability, mobility, and crowd sourced intelligence. • Optimize Operational Performance Current State Measures • Inability to quickly re-configure manufacturing systems and introduce new smart technologies • R&D / Sales / Manufacturing / Service Costs ($) • Inability to get real-time correlated data from proprietary systems and heterogeneous equipment • Manufacturing cycle time; overall equipment effectiveness (OEE) • Product / Asset / Equipment utilization rate (%) • Difficult to incorporate data from existing business systems and external sources in Io. T applications • Poor capture and management of quality. OPERATIONS / MANUFACTURING related feedback causing repeated 21

Monitoring and Diagnostics Description Value Drivers Interact with connected products to identify and diagnose product issues remotely to eliminate unnecessary service calls and improve first time fix rate. • Improve Risk Management Current State Measures • Inefficient identifying up-sell and crosssell opportunities • Mean time to repair (MTTR); resolution time • Limited visibility into product performance, usage, environment, and quality • No problem found (%) • Difficult to track quality and identify root cause • Reduce Product and Service Costs • Improve Customer Experience • First time fix rate (FTFR) • SLA compliance (%) • Inability to hire and retain skilled technical staff • Rising service and warranty costs • Poor product / equipment performance or unscheduled downtime • Low service level agreement (SLA) SERVICE / SUPPORT 22

Remote Service Description Value Drivers Interact real-time with connected products to perform remote service activities including machine adjustments, software updates, and self-tests to avoid downtime and eliminate need for on-site service calls. • Reduce Product and Service Costs Current State Measures • Inability to differentiate offering or enter new markets • R&D / Sales / Manufacturing / Service Costs ($) • Inability to identify and manage the configuration of fielded products, systems, and assets • Equipment up-time / product quality (%) • Difficult to track quality and identify root cause • Service contract renewal rate (%) • Inability to hire and retain skilled technical staff • First time fix rate (FTFR) • Rising service and warranty costs • Poor product / equipment performance or unscheduled downtime SERVICE / • Improve Customer Experience • Mean time to repair (MTTR); resolution time • No problem found (%) • Trips avoided; remote fix rate (#) (%) • SLA compliance (%) SUPPORT 23

Automated Service Execution Description Value Drivers Automatically trigger service events based on preemptive connected product alerts, diagnose issues, determine the best service response and dispatch technicians based on SLA entitlements and resource availability. • Reduce Product and Service Costs Current State Measures • Inability to hire and retain skilled technical staff • Customer satisfaction, net promoter score (#) • Rising service and warranty costs • R&D / Sales / Manufacturing / Service Costs ($) • Poor product / equipment performance or unscheduled downtime • Low service level agreement (SLA) compliance • Improve Customer Experience • Differentiate Product and Service Offering • Mean time to repair (MTTR); resolution time • Service contract renewal rate (%) • First time fix rate (FTFR) • Trips avoided; remote fix rate (#) (%) SERVICE / SUPPORT • SLA compliance (%) 24

Condition-based Predictive Maintenance Description Value Drivers Monitor connected product operating characteristics and combine with thresholds, trends, and analytics to move from reactive to proactive maintenance. • Optimize Operational Performance Current State Measures • Limited visibility into product performance, usage, environment, and quality • Product failure rate (e. g. MTBF, mean time between failure) (%) • Difficult to track quality and identify root cause • Product / Asset / Equipment utilization rate (%) • Inability to hire and retain skilled technical staff • Mean time to repair (MTTR); resolution time • Rising service and warranty costs • Service contract renewal rate (%) • Poor product / equipment performance or unscheduled downtime SERVICE / • SLA compliance (%) • Reduce Product and Service Costs • Equipment up-time / product quality (%) SUPPORT 25

Connected Service Parts Planning Description Value Drivers Leverage connected product data including configuration, utilization, and location to improve balancing of service level objectives with service parts inventory levels. • Optimize Operational Performance Current State Measures • Rising service and warranty costs • Write offs of missing assets or stock ($) • Low service level agreement (SLA) compliance • First time fix rate (FTFR) • Reduce Product and Service Costs • SLA compliance (%) SERVICE / SUPPORT 26

Warranty Cost Management Description Value Drivers Continually monitor connected product usage to identify and prevent potential warranty compliance issues; automatically notify operator when compliance issues occur to avoid potential product failures and reduce warranty cost. • Improve Risk Management Current State Measures • Poor capture and management of qualityrelated feedback causing repeated problems • Number of recalls, warning letters, and audits (#) • Difficult to track quality and identify root cause • Rising service and warranty costs • Reduce Product and Service Costs • R&D / Sales / Manufacturing / Service Costs ($) • Warranty costs ($) • No problem found (%) • Trips avoided; remote fix rate (#) (%) SERVICE / SUPPORT 27

Flexible Product and Asset Connectivity Description Value Drivers Leverage proven agent technology and connectivity services to easily and flexibly connect to any wired or wireless asset via third-party device clouds, direct network connections, open APIs or edge devices. • Improve Risk Management Current State Measures • Slow pace of product and service innovation • R&D / Sales / Manufacturing / Service Costs ($) • Inability to quickly re-configure manufacturing systems and introduce new smart technologies • Time to market • Reduce Product and Service Costs • Connected products or assets under management (#) • Inability to hire and retain skilled technical staff • Increasing demand for new views into production / operation data • Inability to securely connect products and manage and analyze data INFORMATION / OPERATIONAL TECHNOLOGY • Internal development of Io. T projects are 28

Identity and Security Management Description Value Drivers Provide secure real-time bidirectional communication with devices and ensure compliance with policy management for access control, logging, and auditing of interactions with connected products and assets. • Improve Risk Management Current State Measures • Inability to securely connect products and manage and analyze data • R&D / Sales / Manufacturing / Service Costs ($) • Internal development of Io. T projects are slow and costly • Time to market • Reduce Product and Service Costs • Number of users, logins, data views (#) • Existing Io. T solutions unable to scale or meet new data requirements INFORMATION / OPERATIONAL TECHNOLOGY 29

Scalable Io. T Operations Management Description Value Drivers Establish a highly scalable system for provisioning and deploying large numbers of products and assets, managing complex event processing and Big Data, and operating in an evolving and heterogeneous environment. • Optimize Operational Performance Current State Measures • Inability to securely connect products and manage and analyze data • R&D / Sales / Manufacturing / Service Costs ($) • Internal development of Io. T projects are slow and costly • Time to market • Existing Io. T solutions unable to scale or meet new data requirements • Improve Risk Management • Connected products or assets under management (#) INFORMATION / OPERATIONAL TECHNOLOGY 30

Seamless Io. T Data Integration Description Value Drivers Rapidly integrate with enterprise data from business systems, time series data from connected things, and unstructured feedback from people to rapidly respond to changing business requirements and uncover actionable insights. • Optimize Operational Performance Current State Measures • Inability to get real-time correlated data from proprietary systems and heterogeneous equipment • R&D / Sales / Manufacturing / Service Costs ($) • Difficult to incorporate data from existing business systems and external sources in Io. T applications • Number of users, logins, data views (#) • Improve Risk Management • Time to market • Internal development of Io. T projects are slow and costly • Existing Io. T solutions unable to scale or meet new data requirements INFORMATION / OPERATIONAL TECHNOLOGY 31

Automated Analytics and Actions Description Value Drivers Establish rules, business logic, and algorithms that analyze and correlate unstructured, time-series, and transactional data to optimize business processes and discover new opportunities and insights that answer key business questions. • Reduce Product and Service Costs Current State Measures • Limited visibility into product performance, usage, environment, and quality • R&D / Sales / Manufacturing / Service Costs ($) • Inability to securely connect products and manage and analyze data • Trips avoided; remote fix rate (#) (%) • Internal development of Io. T projects are slow and costly • Improve Customer Experience • No problem found (%) • Time to market • Existing Io. T solutions unable to scale or meet new data requirements INFORMATION / OPERATIONAL TECHNOLOGY 32

Rapid Io. T Application Development Description Value Drivers Leverage an Io. T platform with a modelbased application development environment to reduce the time, cost, and risk required to build and maintain innovative connected applications that differentiate products and services and provide a competitive edge. • Reduce Product and Service Costs Current State Measures • Slow pace of product and service innovation • Increased product / service revenue or margin (%) • Inability to hire and retain skilled technical staff • Time to market • Improve Customer Experience • Differentiate Product and Service Offering • Enable New Revenue Streams • Number of users, logins, data views (#) • Increasing demand for new views into production / operation data • Internal development of Io. T projects are slow and costly INFORMATION / OPERATIONAL TECHNOLOGY 33

Usage and Performance Dashboard Description Value Drivers Enable customer to monitor and track the usage and performance of their products or benchmark with anonymized peers to optimize the value they extract. • Improve Customer Experience Current State Measures • Inability to differentiate offering or enter new markets • Upsell revenue; cross-sell revenue ($) • Limited visibility into product performance, usage, environment, and quality • Increasing demand for new views into production / operation data • Differentiate Product and Service Offering • Enable New Revenue Streams • Increased product / service revenue or margin (%) • Customer satisfaction, net promoter score (#) • Product / Asset / Equipment utilization rate (%) • Service contract renewal rate (%) • Number of users, logins, data views (#) CUSTOMER 34

Customer Self-Service Description Value Drivers Enable customers to quickly diagnose and resolve issues themselves by suggesting actions based on connected product data to maximize product availability. • Reduce Product and Service Costs Current State Measures • Inability to differentiate offering or enter new markets • Customer satisfaction, net promoter score (#) • Losing market share to new or low cost competitors • Warranty costs ($) • Rising service and warranty costs • Number of users, logins, data views (#) • Improve Customer Experience • Differentiate Product and Service Offering • Trips avoided; remote fix rate (#) (%) • Poor product / equipment performance or unscheduled downtime CUSTOMER 35

Product Personalization Description Value Drivers Enable personalization capabilities by allowing users to remotely add features or change parameters to enhance their user experience and product performance. • Improve Customer Experience Current State Measures • Inability to differentiate offering or enter new markets • Increased product / service revenue or margin (%) • Losing market share to new or low cost competitors • Customer satisfaction, net promoter score (#) • Inability to identify and manage the configuration of fielded products, systems, and assets • Number of users, logins, data views (#) • Differentiate Product and Service Offering • Enable New Revenue Streams CUSTOMER 36

Connected Product Usage Analysis Case Study Challenges • The company was looking to have a smooth implementation but didn’t have the required technical resources with Apache and PTC Windchill skills inhouse • From previous experience the decision-makers knew that a PLM implementation could be a complex project and that they needed skilled resources to guarantee PTC Windchill Flex. PLM would run at optimal performance and stability. However, they were looking to buy this expertise and not build it internally in order to get a headstart y l n o t u o y a l e l p m a S Founded in 1926, Colony Brands quickly evolved to one of the world’s largest and most successful catalog companies, employing over 4, 500 people. Colony Brands successfully implemented PTC Windchill Flex. PLM in the Cloud which aligns with their overall IT strategy to move all hardware and application management into the Cloud. “Apart from one 10 -minute outage that was needed to update security certificates, we haven’t seen any disruptions in the 15 months since we moved to the PTC Cloud. ” Value Drivers • Colony Brands had developed a risk management plan for implementing PTC Windchill Flex. PLM which relies on leveraging PTC Cloud Services taking over the application management (AMS) of the system. By having experts configure, tune, and support the system, they would be able to avoid performance issues or creating an unstable system Company photo here – Carrie Baumhover Colony Brands 38