TCS Global Trend Study – July 2015

Internet of Things:The Complete Reimaginative Force

− N ChandrasekaranCEO and Managing Director

"Most of the companies we studied are committed to investing big in their IoT initiatives this year−an average $86 million per company. What sets IoTleaders apart is what they are investing in, and how they are changing the way they do business to capitalize on the investment."

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based on a TCS survey of

795companies

with $22b average revenue

from 13industries

in 4 regions of the world

8 Key

$ $ $ $

Findings

on how they use IoT technologies for

PremisesMonitoring

ProductMonitoring

CustomerMonitoring

Supply ChainMonitoring

$ $ $

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IoT has Arrived

Four out of five companies use IoT technologies to track their products, customers, premises, or supply chains

1 in a Big WayKEY

FINDING

Already significant, averageinvestments in IoT set to grow

$103mn

$86mn2015

2018

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Companies with higher priced offerings are

investing more in the IoT

Average Expenditure on the IoT

> $10mn< $100

$39mn

$335mn

Sticker Price DrivesIoT Investments2KEY

FINDING

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Track consumer behavior using mobile apps

47%

Track goods moving through production and distribution on their way

to customers

45%

Track products after sale using

embedded sensors

26%

Monitor business locations withdigital sensors

25%

Mobile Apps Most FrequentlyUsed IoT Technology3KEY

FINDING

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NorthAmerica

Europe

LatinAmerica

4KEY FINDING

Percentage of total revenue spent on IoT initiatives by companies across four regions

North American &European CompaniesLead in IoT Adoption

0.45%0.40%

0.23%

0.34%

Asia Pacific

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Average rise in revenues in 2014

Rise in revenues for9% of companies

16%

60%

Impact Areas

More customized offerings

Better tailored marketing campaigns

Faster product improvements

More effective customer service

The Impact

IoT Initiatives DriveRevenue Growth5KEY

FINDING

$

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Have and project more than 25% revenue growth from IoT initiatives

Lead in the use of the IoTto monitor products sold, with around 40% companies doing so

Second in average IoT spend ($121 mn) across sectors, only next to travel industry ($129 mn)

Industrial Manufacturers Ahead of Other Sectors6KEY

FINDING

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Strategic & Cultural FactorsKey to IoT Adoption;7KEY

FINDING Technology a Key Challenge

Strategic CulturalIdentifying NEW business opportunities made possible by the IoT

Changing how managers THINK about customers, products, and processes

Determining the RIGHT data to collect using the IoT

Having top executives who BELIEVE in the IoT

Handling BIG DATA

Deciding which IoT systems to DEVELOP internally vs. externally

Technology

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Digitally reimagine their businesses to create value for customers—not just for themselves

Deliver value through new business models, product and service offerings, product bundles, and data

Understand the breakthrough potential of the IoT in delivering real insights on how products and services perform and are used by customers

Respond swiftly to insights revealed by data

Deal better with organizational resistance to the truth IoT technologies can reveal

Make the IoT reliable in the field by reducing security risks

Invest selectively before making large, across-the-board commitments

7 Things that SetIoT Leaders Apart8KEY

FINDING

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What IoT Pioneers Say

William Ruh, VP and Global Technology Director, General Electric Co.

The two primary things we look at as success: enabling a change in the services business at GE and enabling the outcomes we see with our customers. Everything is based on an outcome. Do we make pipelines safer? Do we save fuel for a customer?

Jonathan Ballon, VP, IoT Group,Intel Corp.

We are using image analytics to detect defects in about a tenth of the time it takes through manual inspection.

Naresh Shanker,CIO, HP Inc.

Hyper integration offers endless possibilities... There are now millions of HP printers that can provide services in homes.

John Canosa, Chief Strategist, Connected Products at ThingWorx, PTC

A company that’s doing IoT right is putting together cross-functional teams that involve R&D and IT at a minimum...

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TCS Global Trend Study – July 2015

Internet of Things:The Complete Reimaginative Force