Connected Service: Leveraging M2M and IoT Data to Create Proactive 1:1 Customer Engagements
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The document discusses the potential of connected services utilizing M2M and IoT data to enhance customer engagements in sales, service, and care, moving from a reactive to a proactive approach. It outlines principles of connected services, including the importance of real-time data analysis for creating 1:1 customer interactions and identifies various business cases showcasing improved efficiency and customer satisfaction. Additionally, it highlights new revenue models, such as subscription services and data remarketing, that can arise from these connected services.
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.