SURVEY REPORT 2015 MONETIZING THE INDUSTRIAL INTERNET OF THINGS CHANGING BUSINESS MODELS ACCELERATING MARKET ADOPTION MANAGING DATA AND NEW TECHNOLOGIES INDUSTRIE 4.0 CONNECTED DEVICES FOR MORE INFORMATION, GO TO: WWW.INDUSTRYOFTHINGSWORLD.COM

STUDY PROFILE RESEARCH PURPOSE Industrial Internet platforms industry research TARGET SUBJECT Cross-industry IoT & Industrie 4.0 managers from leading international companies PROCEDURE Online-Survey PARTICIPANT GENERATION Email and social media invitations STUDY SAMPLE SIZE n = 738 INQUIRY PERIOD January 29, 2015 April 06, 2015 PUBLISHED MAY 2015 WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 2

TABLE OF CONTENT IoT PROJECT ANALYSIS 4 Importance of IoT & Industry 4.0 5 IoT Project - Implementation Stage 6 IoT Project - Ownership 7 IoT Project Team 8 IoT Project Budget 9 IoT Project Budget Ownership 10 INDUSTRY TRENDS 11 IoT Technologies Impact on Businesses 12 Description of IoT Impact on Businesses 13 IoT Implementation Challenge 14 IoT Implementation Opportunity 15 IoT MARKET OVERVIEW 16 Top IoT Technologies 17 In-House IoT Projects & Outsourcing Partners 18 IoT Leading Companies & Start-ups 19 IoT Thought Leaders 20 SURVEY RESPONDENT PROFILE 21 Respondent profile 22 Target market overview 23 WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 3 3

IoT PROJECT ANALYSIS WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 4 4

IMPORTANCE OF IoT & INDUSTRIE 4.0 2% 9% 13% 34% 41% Think about the next 5 years. How high on your agenda and strategic outlook is IoT / Industry 4.0 in your company? *1 being the least important, 5 the most WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 5 5

IoT PROJECT - IMPLEMENTATION STAGE Planning to implement in the next 12 months 40% IoT enabling technologies are already in place 28% In the implementation process now 22% IoT is not relevant for us 10% What stage are your IoT enabled project(s)? WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 6 6

IoT PROJECT - OWNERSHIP Research and Development IT Which department in your company is responsible for implementing IoT Production enabling technologies/projects? Engineering Strategy WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 7 7

IoT PROJECT - TEAM Research & Development Production IT Marketing Which teams are involved in IoT/Industrie 4.0 projects across your company? Sales WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 8 8

IoT PROJECT - BUDGET > 10.000.000 5.000.001 10.000.000 6% 9% 1.000.001 5.000.000 16% 500.001 1.000.000 < 500.000 No budget at the moment 17% 22% 27% What would be an estimate of the overall IoT budget within your organization? WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 9 9

IoT PROJECT - BUDGET OWNERSHIP Research & Development IT Production Engineering Marketing Which department does this budget sit with? WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 10 10

INDUSTRY TRENDS WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 11 11

IoT TECHNOLOGIES IMPACT ON BUSINESSES YES OR NO? Yes 76% No 24% Has your industry/branch been affected by IoT enabling technologies? WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 12 12

DESCRIPTION OF IoT IMPACT ON BUSINESSES It will change the entire industry from device centric to user centric. New possibilities for service: new business models as well as cost efficient service processes. Completely different view of customers and retail processes (r)evolution. Flexibility with new products into the fast market. It s a big new opportunity. In Germany there will be a new Standard Technology called Smart Meter Gateway. This must be implemented if usage is above 6000 kw/h pa or if the customer produces electricity itself (Erneuerbare Energien Gesetz). New requirements in increased customer experience, innovated service or industry solutions. It has become our core business. Instead of building IoT ecosystems from ground up, focus is partner with 3rd party vendors and provide E2E IoT solution. 13 WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 13

IoT IMPLEMENTATION - CHALLENGE How it is impacting business models 35% How to capitalise on IoT 24% Big Data / Analytics / Cloud Computing Lack of standardisation Privacy Predictive Maintenance Security Network connectivity Competition pressure PLM 13% 10% 5% 4% 4% 4% 3% 1% What is the biggest challenge you are facing in implementing IoT? WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 14 14

IoT IMPLEMENTATION - OPPORTUNITY Gaining competitive advantage 32% New revenue channels 27% Operational efficiency 14% Better customer insight Cost efficiency / savings Leaner management processes 4% 12% 9% What do you consider to be the biggest opportunity for your company? Other 2% WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 15 15

IoT MARKET OVERVIEW WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 16 16

TOP IoT TECHNOLOGIES Which technologies will have the biggest effect on your company? Big Data Automation Data Analytics M2M Tracking Solutions Operational Intelligence Infrastructure & Network Smart Energy & Devices Smart Technologies Software Communication Connectivity & Communication & Connectivity WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 17

IN-HOUSE IoT PROJECTS & OUTSOURCING PARTNERS Do you have in-house capabilities to implement IoT projects? If no, which external partners did you work with? SIEMENS No 26% BOSCH Yes 74% T-SYSTEM SAP BITKOM WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 18 18

IoT LEADING COMPANIES & START-UPS Who are the top 3 leading companies in the field of IoT enabling technologies? Which are the top 3 start-ups disrupting the IoT field? SIEMENS THINGWORX GOOGLE APPLE LINEMETRICS AXEDA WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 19 19

IoT THOUGHT LEADERS Peter Marsh Made Here Now Sridhar Kota Universíty of Michigan Prof. Dr. Elgar Fleisch ETH Zürich & University of St. Gallen Jim Heppelmann PTC Sanjay Sarma MIT Dr. Markus Weinberger Bosch Software Innovations Thinking about Elmar Frickenstein BMW Wolfgang Wahlster DFKI Michael Holdmann ConnectingYourThings business and thought leaders, who are the top 3 influencers in David Beberman Aicas David Richards WANdisco Peggy Smedley The Peggy Smedley Show terms of industrial IoT? Florian Huber Semantic Web Company Joerg Wende IBM John Chambers CISCO WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 20 20

SURVEY RESPONDENT PROFILE WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 21 21

IoT SERVICE PROVIDER OR END USER? INDUSTRY 27% INFORMATION & COMMUNICATION TECHNOLOGIES 37% END USER 20% SERVICE PROVIDER 30% BOTH 10,001-50,000 37% 201-1,000 10% 1,001-5,000 26% 20% AUTOMOTIVE & TRANSPORTATION 12% MANUFACTURING 11% PROFESSIONAL & CONSULTING SERVICES 8% HEALTHCARE & LIFE SCIENCE 6% ENERGY & POWER SYSTEMS 12% OTHER 5,001-10,000 14% 5% CHEMICALS, MATERIALS & FOOD 4% FINANCE, BANKING & INSURANCE 4% CONSUMER PRODUCTS & RETAIL 3% OTHER WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 22

JOB LEVEL ORGANIZATION SIZE 44% MANAGER / SENIOR MANAGER / PROJECT MANAGER 26% DIRECTOR / HEAD OF / LEADER 20% BOARD MEMBER / VICE-PRESIDENT / C-LEVEL 6% OTHER 62% WESTERN EUROPE 16% NORTH AMERICA GEOGRAPHICAL SPLIT 14% CENTRAL / EASTERN EUROPE 4% ASIA / PACIFIC 3% SOUTH AMERICA 21 50 23% 1% MIDDLE EAST / AFRICA 6 20 18% > 100.000 15% 50.001 100.000 7% 10.001 Leader / Head 50.000 of / Director 14% 36% 5.001 10.000 11% < 1.000 34% Manager / Senior Manager 57% 1.000 5.000 19% WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 23 23

For a chance to hear from leading experts in the field of the industrial Internet of Things and exchange experiences and knowledge on how your business can benefit from new technologies, join us at the Industry of Things World on September 21-22, 2015. 21 50 23% 6 20 18% Manager / Senior Manager 57% Over 500 cross-industry attendees and speakers will challenge current thinking, unveil the latest innovations and define the future of the 4 th industrial revolution. To book your ticket for the biggest industrial event of the year, go to: WWW.INDUSTRYOFTHINGSWORLD.COM WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 24 24

MONETIZING THE INDUSTRIAL INTERNET OF THINGS CHANGING BUSINESS MODELS ACCELERATING MARKET ADOPTION MANAGING DATA & NEW TECHNOLOGIES SUPPORTED BY: and many more! WWW.INDUSTRYOFTHINGSWORLD.COM Copyright by Industry of Things World no reproduction without permission 25 25

Legal Notice INDUSTRY OF THINGS WORLD - SURVEY REPORT 2015 Publisher we.conect Global Leaders GmbH Reichenberger Str. 124 10999 Berlin +49 (0)30 52 10 70 3-0 Managing Director Daniel Wolter Henry Fuchs Project Management: Maria Relaki Event Director Email: maria.relaki@we-conect.com Elise Orhan Marketing Development Manager Email: elise.orhan@we-conect.com FOR MORE INFORMATION, GO TO: WWW.INDUSTRYOFTHINGSWORLD.COM 26