The Digital/Physical Interface Transformation What Does it Mean for Celemi, Our Partners, and Our Customers?

What is the Digital/Physical Interface? Traditional manufactures, who produce and sell physical products, are now enhancing those products with the digital world of software, cloud platforms, automation, augmented reality, and artificial intelligence. They seek to deliver a higher level of value to their customers Today’s leading manufacturers are transforming the way they develop, market, and deliver solutions

Digital / Physical Convergence Impact The IDC (International Data Corp) predicts that by 2020, 50% of the Global 2000 will see the majority of their business depend on their ability to create digital products, services, and experiences

Some Examples and Benefits Rolls Royce now sells “power by the hour” due to enhanced digital monitoring enabling more efficient maintenance A leading packaging equipment manufacturer now remotely controls thousands of machines at customer locations, increasing their revenues and reach Some Examples and Benefits End users can better manage production, offer more customization, generate insight, and reduce costs of operations Companies that offer this higher value to their customers can increase margin and create greater competitive immunity

What Are the Challenges For Your Customers Experiencing This Transformation? Attracting the right talent Sales forces that have been selling physical products are resistant to change Marketing departments that are slow to react Engineering departments are evolving from industrial engineering to software engineering Transforming the strategic mindset Change management

What Does the Digital/ Physical Interface mean for Celemi solutions and how we sell? Some of our customers are experiencing this transformation by selling blended offerings Honeywell now has a new logo: “The Power of Connected” Customers have requested that we include this market trend in our simulations as they are experiencing many of challenges we identified and a new market reality

How has Celemi Responded Thus Far? Enterprise now has a version that reflects this market trend There is a variation of DB where teams can choose to pursue customers attracted to these offerings Tango also has an optional modification All of these require no changes to the core materials: Same participant guide Same game board Same basic rules