Industrial IoT Derive business value from the Internet of Things, People and Services Ronald Binkofski General Manager Microsoft MC CIS

Technology innovation has outpaced business process innovation, putting new pressures on manufacturers Internet of Things, People and Services Advanced analytics and optimization Energy Management and Sustainability Cloud hyper-connectivity - data volume and variety Emerging robotics and automation technology Artificial Intelligence – equipment and wearables Big Data technologies – information velocity Technology democratization impacts margins

Digital is transforming the way manufacturers do business… Digital transformation requires a new mindset $10.6T Cumulative GDP impact of IIoT by 20302 $913B Market opportunity by 20181 Operational improvement 82% increased efficiency 4 49% experienced fewer product defects 4 45% increased customer satisfaction 4 The internet of Things, People and Services is enabling manufacturers to create new, more profitable customer experiences by digitally transforming end-to-end operations

Business leaders are transforming now Business must become more responsive Increased prediction accuracy to over 80% to reduce scrap and rework with savings of 17% Digital disruption means innovation and revenue $1 M/day avoidance of unplanned downtime and fuel conservation impacting 40% of total operational cost Customer experience matters most Reduce idle time of customer equipment up to 50% with innovative field service

A unique value proposition Align partnerships around a new digital ecosystem Enable productivity with artificial intelligence Drive platform interoperability across the cloud continuum

Microsoft’s role in the Industrial IoT revolution

Digital Transformation © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. PRISM FY16 6/26/2018 11:23 PM Digital Transformation Systems of Intelligence Engage your customers Empower your employees Optimize your operations Transform your products

Microsoft and OPC-UA Enable productivity with artificial intelligence Align partnerships around a new digital ecosystem Drive platform interoperability across the cloud continuum “What all this boils down to for users is easing the process of adopting IIoT and Industrie 4.0 initiatives.” David Greenfield Director of Content/Editor-in-Chief, Automation World

Digital Enterprise Vision Automotive Retail Industrial Healthcare Security & Surveillance Energy Smart Home Smart Cities Custom LOB App Dash-boarding Tools Big Data Visualization Tools Social Integration Enterprise Integration Windows 10, Azure IoT Services, Analytics Platform Services, Azure ML, Azure SA, Data Market, Mobility Device Connectivity & Management Data management & Insights Advanced Analytics Business Productivity & Process Optimization Gain visibility, access and control to devices and processes Manage KPIs to improve operational performance and decision making Anticipate problems and deliver new value added services Integrate People and Business Processes Connectivity Device Management Event Processing & Portal Security and IP protection Insight Performance Process Excellence Predictive Analytics Predictive Maintenance Asset, Quality and Energy Mgmt Engineering Services Field Manufacturing Proactive upsell and cross sell Vehicle Tracking Device Cameras Power Meter Load Meter Smoke Fire Alarms Humidity Sensor Flow Meter Occupancy Sensor Temperature Sensor Vehicle Tracking Smart Grid General Equipment Retail Kiosk Fire Detection Healthcare Smart Building Automation Digital Advertising Smart Home Automation

Actionable intelligence Microsoft IoT solutions can help you take a modular, low risk approach to digitally transforming your business Sensors & Equipment End-user devices & experiences SECURELY CONNECT AND MANAGE DEVICES Gain visibility, access and control of your physical world STORE AND MANAGE DATA EASILY Improve operational performance and decision making APPLY ADVANCED ANALYTICS Proactively anticipate operational disruptions and deliver new value- add services CONNECT PEOPLE TO BUSINESS PROCCESSES Make better and faster decisions by connecting the right people with the right data Storage Big Data Analytics Business Insights Event Processing Actionable intelligence

Microsoft in the Industrial IoT Ecosystem The internet of things, people and services The Industrial IoT Value Chain Source: Bosch Software Innovation 2012-2015 MS Strategic partnerships Semiconductor Edge & Network Devices Communication Standards – Protocols Industry Standard Bodies – Protocols Mobile Network Operators System Integrators Enterprise Systems Independent Software Vendors

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