8/29/2018 Tata Consultancy Services: Powering Enterprise-Wide Transformation in the Business 4.0 Era - The IoT Way

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POWERING ENTERPRISE-WIDETRANSFORMATION IN THEBUSINESS 4.0 ERA - THE IOT WAYby Rajaravisankar Shanmugam, June 5 2018

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Connected digital enterprise is not futuristic. It’s here and now. Today,Internet of Things (IoT), is enabling enterprises adopt a closed loopapproach across their entire value chain. With connected devicesproliferating and data availability becoming ubiquitous, informationflows seamlessly and in a unified manner across the product lifecycle.Right from product design, manufacturing process design, shop floorproduction systems, to maintenance and services in the field, there isa need for a common thread for communication and information flow.This is called the Digital Thread.

Digital thread along with Digital Twin, form the building blocks of aconnected digital enterprise - the way forward for IoT led Business4.0 transformation. World over, we find, enterprises are investing indigital thread and digital twin with successful outcomes. Gartnerpredicts that, by 2020, at least 50 percent of manufacturers withannual revenues in excess of $5 billion will have at least one digitaltwin initiative launched for either products or assets.

Re-imagine business models to realize exponentialvalue

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Today IoT is empowering enterprises to innovate with data, bringingcontext sensitive, real time business capabilities for avant-gardeoutcomes that can drive both operational and businesstransformation. For example, predictive monitoring and preventivemaintenance can eliminate crippling downtime; worldwide real timeasset visibility can improve supply chain operations; enhancedexperience can delight customers. Servitization of products or newbusiness models can bring in unconventional revenues. What’s more,enterprises can take advantage of platforms that can easily develop,deploy, administer, and even monetize applications, together withmicroservices, for new business opportunities.

Here are some specific examples of how a connected digitalenterprise delivers exponential value across various industries:

IoT enabled Industry 4.0 solutions can enable a productivityimprovement of ~26% for manufacturers

Product differentiator model: OEMs sell analytics insights andpredictive/performance services derived out of the digital twins oftheir products as differentiators to their products. This helps themgain more market share and customer delight.

Transitioning fromTraditional to AgileMethods: Tweaking forSuccess Agile, Enterprise Agility

The Collision ofTechnology andOpportunity Analytics, ArtificialIntelligence, Automation,Technology, Transformation

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For commercial airlines, 1% efficiency improvement in fuelmanagement means $2B savings per year overall

Utility with a 10GW generating capacity has potential for $50Msavings

Improved on-shelf availability can boost sales in retail by 11%

Connected healthcare reduces a patient’s hospital stay by asmuch as 50%

Seek foresights to embrace risk

Enterprises are transforming themselves by embracing risk to tacklemacro-economic and geo-political uncertainties, and thwart beingdisrupted. Enterprises across industries are gaining insights into theirproduct performance, reliability, service lifecycle, to factor risks intotheir business models and provide an enhanced value proposition totheir customer. If you are a utility provider, preventive/predictivemaintenance can improve response for outages and increasereliability. If your enterprise is in to the insurance business, in tandemwith a tracking technology like RFID, predictive monitoring canempower you to identify, monitor, and mitigate risks. You can reducecosts as well as be flexible enough to gain superior customersatisfaction. IoT enabled enterprises can also improve supply chain

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efficiencies and mitigate risk in manufacturing, and logistics andtransportation as well.

Choose a value chain ecosystem play for an efficiententerprise

With IoT enabling a connected digital enterprise, we can get real timeproduct, process, and performance information across the valuechain. Enterprises are taking the digital route to break silos andbridge the information gaps across various stake holders, to deriveinsights based on data across the product lifecycle and make holisticdecisions. Connecting the products and systems, provides acomplete value chain view. Such a cohesive view for each persona inan enterprise’s design, quality, and commissioning team can avoiddelays and rework, thereby driving large scale enterprise efficiencyand cost savings.

For example, an automotive OEM provides diagnostic devices to itsservice dealers across the world. These diagnostic trouble codesfrom disparate devices across the OEM’s gamut of automobileplatforms, are stored in a cloud repository. Persona based insightsare derived and send to various OEM teams. They then leveragethese insights to eliminate the trouble triggers in subsequent productlaunches.

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Achieve customer gratification through masspersonalization

With the increasingly ubiquitous presence of connected devices, inthis Business 4.0 era, enterprises should gather data-driven insightsabout changing customer behavior as they look to harness theabundance of information. With IoT, mass personalization becomespractical and cost efficient for enterprises to improve customersatisfaction and internal efficiencies. For example, when amanufacturer is running multiple facilities such as press or machiningshops simultaneously, it is possible to proactively manage the energyconsumption. By having real time insights to the peak load energyconsumption, manufacturers can sequence these machines andschedule their operations so that such high energy equipment are notrun simultaneously. Such unique and highly customized insights canachieve significant energy consumption savings. Another instance iswhere IoT can help in real time supply chain and logistics ofperishable goods. Availability, temperature, humidity, moisture level ofthese goods can be measured in real time and this data can be usedto alert the customer. Real-time insights into changing customerexpectations and enhanced visibility across value chain, enabled byIoT, open up many other opportunities for up-selling and enjoyongoing business with every individual customer of your enterprise.

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With IoT powering opportunities for exponential value creationthrough reimagining business models, and countering disruption byembracing risk, enterprises stand to make substantial business gainsby transforming themselves in the Business 4.0 era.

Join us at SAPPHIRE NOW from June 5–7 in Orlando, Florida toconnect with our Digital Twin and IoT experts to transform youroperations for agility, efficiency, and growth.

About the author

Rajaravisankar Shanmugam (Raja Shan), is the GlobalHead - Business Development for the Internet ofThings (IoT) Business at TCS. He is responsible fordeveloping the IoT Business, thus leading the globalIoT Sales, Marketing & Analyst Relations, anddeveloping strategic Alliances & partnerships. He is aleading voice in Internet of things space, delivering thekeynote address at prominent industry events and haspublished various works of thought leadership includingan article on realizing business value from Internet ofthings.

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CONTINUE YOUR JOURNEY

Raja is an experienced leader with a well demonstratedrecord for tremendous success in Product Engineering,Project management, Strategy & Businessdevelopment, Marketing and Analyst relations in theareas of Internet of things, Engineering Services &PLM for TCS. He has developed long standingrelationships with customers from leading enterprisesacross industries such as Manufacturing, Hi-Tech &Energy.

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