Executive summary

Digital Industrial Transformation with the Internet of Things

How can European companies benefit from IoT?

Dr Milos Milojevic Industry Analyst

April 2017

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Digital Industrial Transformation with the Internet of Things ...... 3 introduction ...... 3 Key Findings ...... 4 Key Trends ...... 5 Digital Readiness and Appetite for IoT ...... 6 IoT Opportunities vs Challenges ...... 8 Moving Forward with IoT ...... 11 Conclusions ...... 13 Methodology ...... 14 About Accenture ...... 15 About Hitachi ...... 16 About Intel ...... 17 About Reply ...... 18 About Cognizant ...... 19 About Stratus ...... 20 About GE Digital ...... 21 About Logicalis ...... 22 About Salesforce ...... 23 About T-Systems ...... 24 About PAC ...... 25 Disclaimer, usage rights, independence and data protection ...... 26

TABLE OF FIGURES

Fig. 1: Will your IoT investment increase, stay the same or decrease in the next 3 years? ...... 7 Fig. 2: With respect to internal capabilities, will the following aspects be a major, minor or not a driver (goal) of your IoT initiatives in the next 3 years? ...... 9 Fig. 3: With respect to external capabilities, will the following aspects be a major, minor or not a driver (goal) of your IoT initiatives in the next 3 years? ...... 9 Fig. 4: Are the following third parties strongly, somewhat or not involved in developing your IoT strategy and initiatives? ...... 12

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 2 Digital Industrial Transformation with the Internet of Things

INTRODUCTION

Europe’s industrial companies, pressured by the competitive and fragmented European markets, ongoing economic headwinds and growing operational costs, need to streamline operations and boost 72% of industrial their product and service offering should they wish to build companies in Europe momentum and increase their competitive advantage. will increase their IoT Due to the asset-intensive nature of their business, players have spending, but what traditionally invested more in their operational technology (OT) than is the most important in information technology (IT), many of them being hamstrung by priority on their IoT decades-old legacy systems and processes. But as new digital agenda? technology developments take place, solutions that could integrate the OT and IT worlds are beginning to emerge. This integration could mean unlocking opportunities to make processes more efficient and products more valuable. The Internet of Things (IoT) is one such concept that brings the paradigm of connectivity into the business, and enables the integration of people, assets and processes into a single point of view, paving the way for obtaining valuable business insights for industrial players.

But how serious are industrial companies about moving forward with IoT and what do their IoT roadmaps look like? This study sets out to explore how European industrial companies are approaching IoT initiatives from an investment, implementation and strategy perspective. Based on interviews with 250 senior CXO-level, business and technology decision makers, this report explores the strategies and approaches that process manufacturers and discrete manufacturers are taking in order to embed IoT solutions into the core of their business and enable digital transformation.

The study also outlines specific IoT use cases from industry that companies have recently undertaken, and looks at what they are trying to achieve through this investment.

The study makes vital and interesting reading for senior decision makers at European industrial companies that are looking to better understand the progress their peers are making on the increasingly important topic of IoT.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 3 KEY FINDINGS

• 72% of the companies will increase their IoT spending in the next three years. A solid amount of companies plan to keep this increase between 10% and 30%, while some of them are willing to raise spending by more than 30%.

• 60% of the companies are already involved in IoT initiatives. More than half of these, however, are still in the early stages of deployment and have some ongoing IoT projects.

• Cost reduction is seen as the biggest driver of moving IoT initiatives forward for 69% of the companies. However, the fact that product improvement and development of new business models took second place on the list of drivers shows how IoT investment can be channeled towards driving top line growth rather than just reducing costs.

• Investment decisions for IoT solutions are mostly made within IT departments but line of business executives also have considerable influence. This, however, largely depends on the country in question and the scale of the projects under consideration.

Data security and privacy concerns top the list of challenges that are slowing down IoT adoption for 70% of the companies. Apart from fears of cyber attacks, there are also mounting regulatory burdens, especially ahead of the General Data Protection Regulation (GDPR).

• Companies cannot bear the fruits of IoT on their own, and will require assistance along the way. More than 50% of them are strongly involved with IT services companies and consulting firms, which is reasonable bearing in mind that successful IoT requires significant expertise both from a solution delivery and business advice perspective.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 4 KEY TRENDS

Key trends by industry

63% have ongoing IoT projects and, apart from being driven by cost reduction, companies think significantly about creating connected Automotive and products as well as improving customer experience and product quality, discrete with more than 50% of them seeing these as major drivers of IoT initiatives. 51% of companies are strongly involved in working with IT services companies on IoT developments.

56% have started their IoT initiatives, which are mostly driven by IT departments (45%), but at some companies (22%), digital business units have a prevailing influence. 67% plan to increase their investment in IoT whilst 92% expect to measure the success of these initiatives in terms of Process cost reductions. The majority of the companies (56%) are strongly involved in collaboration with consulting companies, and the majority of the companies surveyed (81%) need the largest amount of assistance in terms of solution design and prototyping.

Key trends by region

Apart from cost reduction, French companies see process automation and France improvement of product quality as equally strong drivers of IoT adoption. 80% say they plan to increase IoT spending.

52% of German companies do not see the development of connected products as a driver for IoT. They are more reluctant to use IoT for Germany connected product applications, as people in Germany are more sensitive to data protection and privacy issues.

Nordics is the most advanced region in terms of IoT adoption where 83% of Nordics companies are already running their IoT initiatives. Cost reduction is seen as equally important as developing new connected products.

Companies show that their biggest drivers – apart from cost reduction – Italy are improving asset servitization and the improvement of supply chain management.

88% need assistance in terms of solution design and prototyping but are UK less involved in collaboration with third parties than peers in other countries.

Companies show the least amount of willingness to increase their Benelux investments in IoT compared to other regions.

77% are strongly involved in collaboration with IT services companies and Austria & Switzerland mostly need solution design and prototyping services.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 5

DIGITAL READINESS AND APPETITE FOR IOT

At the heart of the digital transformation of asset-intensive industries, such as manufacturing, is the leveraging of emerging technology to 72% of industrial streamline decade-old processes and operations, improve existing companies in products and launch new ones, create new channels to the Europe plan to customers and develop new business models. As a result of this increase their IoT transformation, industrial companies should be able to increase their spending in the next value in the value chain by becoming organizations that are more three years agile and lean and that know more about their customers’ needs and can tailor their products accordingly.

Implementing IoT-based digital solutions at any part of the enterprise, from the shop floor to the back office, brings an opportunity to trim costs and increase revenues and, as such, IoT should be at the top of their digital agenda.

There are many examples of companies which, by incorporating a digital mindset and adopting IoT solutions, are one way or another bearing the fruits of their investments, either by boosting their products or cutting operational costs.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 6 But are these examples indicative of wider progress and success, and to what extent are European industrial companies responding to IoT? IoT in action: ESAB This study sets out to understand what is the existing appetite of European industrial companies for IoT solutions going beyond Industry This Swedish manufacturer of welding and cutting 4.0 concepts that focus on the internal silos "production & logistics" to equipment deployed IoT more holistic and externally-oriented IoT applications within an solutions to transform its enterprise, such as development of connected products and new global operations. Its machines and equipment services. We also evaluate what are the major concerns standing in were not connected and the way of faster IoT adoption. their data was collected manually and no central These findings are based on interviews with 250 senior business and IT overview of the decision makers at large and medium-sized manufacturing equipment’s performance existed. As part of the companies in both process and discrete manufacturing – a more transformation process, the detailed breakdown of the sample is available at the end of this company implemented document. various connectivity technologies and One of the first key questions to set the scene for the rest of the integrated data collected analysis is do European industrial companies plan to increase their into its cloud platform. This initiative resulted in investments in IoT in the next three years? improved operations and productivity, and time to market was reduced by Increase 72% 40%. On top of cutting the time to market, the initiative will also bring a Stay the same 26% significant competitive advantage to ESAB.

Decrease 2%

n = 253 © PAC - a CXP Group Company 2017 Fig. 1: Will your IoT investment increase, stay the same or decrease in the next 3 years?

The answer consolidating the responses from all European regions reveals the trend that the majority of the companies have a 60% of industrial willingness to invest in IoT solutions in the short term, regardless of the companies are particular local market, the type of manufacturing company and its already running IoT size. Nevertheless, some companies in some regions such as initiatives and have Germany, France and Italy are more eager to invest than companies live IoT projects, 45% in other regions. of which are

But are these claims backed up in terms of current IoT activities and generating business at what stages are existing IoT developments of industrial companies? impacts.

The results show that IoT adoption is considerable, with 60% of the companies being beyond the planning and evaluation stage, indicating that manufacturers are well aware of IoT, and the majority of them having live IoT projects of different scales. It is also clear that large-scale projects are still limited as less than 10% of the companies have reached an advanced stage of IoT adoption, with the majority being at the PoC (proof-of-concept) stage. This is completely aligned with what PAC sees in the market on the vendor side: a large number of vendors have many IoT PoC projects but the number of those large-scale IoT projects addressing more than one problem is still very limited.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 7

IOT OPPORTUNITIES VS CHALLENGES

IoT solutions can come in various shapes and sizes and can be applied across an entire enterprise, helping companies to reach their digital momentum. These include using IoT to improve internal Almost 70% of performance such as on the shop floor, empowering the workforce companies see cost and improving their performance, as well as transforming back-office reduction as a main operations with IoT-enabled enterprise mobility solutions. On the other driver while the hand, it can be used on the more customer-facing side of the second place goes business, such as embedding the IoT in products that can provide to product better service to customers and collect valuable customer data. improvement

But which of these IoT applications have raised interest from companies in Europe, in which direction are their IoT investments channeled, and what benefits are they looking to achieve with IoT?

IoT applications can be roughly divided into two categories: the first one aims at improving a company’s internal capabilities while the second one aims at making their external customer-facing capabilities better.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 8 Major driver Minor driver Innovation in action: Krone

Driving cost savings and operational 69% 28% More than a century old, efficiency this German manufacturer of farming machinery and Improving asset servitization with equipment adopted IoT predictive maintenance and reducing 48% 45% unplanned downtime technologies to transform its machinery. Its machinery is now equipped Achieving process automation 48% 43% with sensors that collect real-time data during the farming process. With Enabling digital workforce and improving mobility 47% 40% additional sensors placed at the farms, all the data collected is sent to the Improving schedule optimization 42% 48% cloud where it is processed and made available to the farmers. They can get an Improving health, safety or 40% 41% insight into the quality of environmental monitoring their crops, adjust the nutritive values of the food "Not a driver" not shown n = 253 © PAC - a CXP Group Company 2017 given to dairy cows, as well as adjust and plan the Fig. 2: With respect to internal capabilities, will the following aspects be a usage of fertilizers. This is a major, minor or not a driver (goal) of your IoT initiatives in the next 3 best practice example that years? shows how the adoption of IoT increases the value of the product. In the former category, the majority of European companies (almost 70% of them) see the IoT as a tool for driving their operational costs down, which could enable them to unlock cost savings and improve operational efficiency. This finding does not come as a surprise as these companies mostly have tight margins and operate expensive industrial machines and systems integrated into complex production processes and production lines. Data security and On the other side, a glance at the IoT drivers that could improve the external capabilities of an industrial company shows that they are privacy concerns mostly geared to boosting their products, which could enable the are seen as the most development of new services and business models. Such IoT challenging issues in applications have the potential to shift the paradigm of IoT initiatives and manufacturers and turn them into service providers – these strategies applications are especially appealing to companies that directly interact with consumers.

Major driver Minor driver

Creating new connected products, services or business models 51% 38%

Improving product quality 51% 37%

Improving customer engagement 49% 37%

Improving supply chain management 46% 46%

"Not a driver" not shown n = 253 © PAC - a CXP Group Company 2017 Fig. 3: With respect to external capabilities, will the following aspects be a major, minor or not a driver (goal) of your IoT initiatives in the next 3 years?

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 9 What are the main challenges making companies hesitate with their IoT investments?

Understandably, data security and privacy is perceived as the major challenge by more than 70% of companies. This fear is certainly justified due to a general growing number of cyber attacks but also the fact that IoT significantly increases the number of potential entry points into the network. With IoT, every connected machine or asset becomes an endpoint that could potentially be breached if not properly secured. On top of cyber attacks, mounting compliance and regulatory burdens in some of countries like Germany or the upcoming General Data Protection Regulation (GDPR) can also raise concerns and slow down the pace of adoption.

Other evaluated concerns were not flagged as major ones by the majority of companies, at least when the results of the analysis are consolidated on a European level. Cost-related challenges are not considered as a major concern, which indicates the certain amount of readiness to invest in the IoT. Concerns related to internal capabilities are also more considered as minor than major ones, which outlines the certain level of confidence companies have when it comes to IoT initiatives and strategy.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 10

MOVING FORWARD WITH IOT

Despite showing a certain level of confidence in internal capabilities with regards to deployment of IoT and the required transformation, industrial companies are working very closely with the third-party providers. These include the likes of technology players in the Italian companies software and IT services space, as well as other emerging players mostly collaborate entering the IoT market such as digital agencies, hardware with consulting firms, companies and industrial companies that have reinvented German companies themselves to offer various IoT value propositions. mostly collaborate The question remains which of these players are the most involved in with hardware helping industrial companies transform themselves with IoT and what companies while types of engagement are industrial companies after? French companies

The overall European results show that industrial players are mostly collaborate with IT taking the hand of IT services providers and consulting companies. services players the This doesn’t come as a surprise as the former are those with already most. built PoC’s and have already deployed these solutions for their clients. They also take care of end-to-end solution design, delivery and management, which is favorable for those industrial players wanting to stay focused on their products and be more agile in operations. The latter, on the other hand, comes from the need to justify an IoT solution with a business case and make the most use of the gathered IoT data, which is where consulting firms take the lead.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 11 Innovation in action: Strongly involved Somewhat involved Not involved at all Piaggio

IT services companies 51% 36% 13% The Italian motorbike manufacturer is using IoT and other digital Consulting firms 51% 35% 13% technologies such as predictive analytics to Software companies / platform drive sales of its vehicles by 47% 41% 11% providers improving the customer experience and enabling Hardware companies 44% 40% 16% personalization. Users will benefit from the mobile

application via which they Telecom companies 40% 44% 16% can remotely locate and mange their vehicles as Digital agencies 33% 42% 25% well as enjoy a personalized customer experience. The entire Industrial companies 30% 44% 26% solution is integrated into Piaggio’s existing IT systems, which allows the Universities or research institutions 26% 37% 36% performance of advanced analytics on gathered 0% 20% 40% 60% 80% 100% customer and vehicle data. This use case outlines n = 253 © PAC - a CXP Group Company, 2017 the application of IoT for improvement of customer Fig. 4: Are the following third parties strongly, somewhat or not involved in experience and developing your IoT strategy and initiatives? personalization, as well as a good practice of integration, which provides an opportunity to derive A bit less involvement can be seen from software companies, maximum value from the platforms providers, hardware companies and telcos. This is probably data. because these types of players grow mostly through the channels and partnerships network, hence their smaller involvement in IoT initiatives.

It should be highlighted that the swing towards some of these categories also largely depends on which sector the industrial company operates in and what is its final product. For example, manufacturers of home appliances are more likely to collaborate with hardware companies that provide embedded technologies that can gather and process device data. Whereas manufacturers in the mining industry are more likely to work with IT services providers, as they require a partner with strong delivery capabilities on a global scale. Additionally, PAC acknowledges the importance of industrial companies for the IoT ecosystem because some of them have recently entered the IoT market as vendors, offering IoT solutions and platforms to other industrial companies. As such, they have optimized their own operations and developed IoT platforms, solutions and services along the way, and PAC expects their influence on IoT adoption to increase.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 12 CONCLUSIONS

Innovation has become an imperative for European industrial companies. Dealing with cost pressure tops the priority list for companies and technologies under the IoT umbrella can be powerful tools for addressing the major challenges in their internal operational performance. Companies are aware of this and the vast majority are planning to increase spending in this area.

Apart from improving operational efficiency, IoT solutions open the gates for innovation and put companies in a position to move up their value chains by offering better and connected products, and new services based on them, as well as to gather valuable customer data that can be monetized.

The majority of companies are already running IoT initiatives in different phases of deployment, maturity and scale, which confirms that the IoT is perceived as a potential solution of multiple issues and as the key to unlocking the doors of wider digital transformation of both operational technology and information technology systems. This is why IoT gets a significant amount of the overall digital transformation budget.

On the road to innovation, IoT companies are usually guided by third parties and are engaged with a range of stakeholders, the most prominent of which are IT services companies and consulting firms.

The pace of IoT adoption will depend on the internal organizations and decision-making rights in terms of IoT investments. Despite the fact that most companies make these decisions within the IT department, there is a significant amount of diversity as some companies lead initiatives from the lines of business or the boardroom. Integrating these departments and fostering collaboration will improve the chances of deployment of enterprise-wide solutions that could maximize the benefits to the business.

A major concern of most companies comes from a data security and privacy perspective which, due to growing cyber threats and burdening regulations, could slow down the overall adoption of IoT solutions.

Supporting IoT initiatives requires investment not only in IoT solutions but also in the underlying infrastructure such as IoT and analytics platforms, which need to be integrated into companies’ IT systems. Results show that there is a solid number of companies making steps in this direction.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 13 METHODOLOGY

This study is based on interviews with senior business and IT decision-makers with responsibility for driving innovation strategies at 250 large European manufacturing companies. The study was completed during the first quarter of 2017. Here is a more detailed breakdown of the participants in the study:

Respondents by region Respondents by position 1% CEO 8% UK 17% 4% 8% CIO / Head of IT 12% Germany 7% 6% Head of Digital Austria & Switzerland 5% Head of Data 14% 20% France Head of IoT Nordics 8% Head of Production Italy 18% 12% 61% Head of Product Development Benelux Other IoT decision-maker

Respondents by industry Respondents by size of workforce

Automotive and 41% discrete industries 40% 500-2,500

More than 2,500 59% Process industries 60%

n = 253 © PAC - a CXP Group Company 2017

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 14 ABOUT ACCENTURE PREMIUM SPONSOR

Accenture Digital, comprised of Accenture Analytics, Accenture Interactive and Accenture Mobility, offers a comprehensive portfolio of business and technology services across digital marketing, mobility and analytics. From developing digital strategies to implementing digital technologies and running digital processes on their behalf, Accenture Digital helps clients leverage connected and mobile devices; extract insights from data using analytics; and enrich end- Contact: customer experiences and interactions, delivering tangible results from the virtual world and driving growth. Ben Salama Connected Operations lead Accenture Mobility Learn more about Accenture Digital at www.accenture.com/digital. Phone: +44 203 335 0796 Email: [email protected]

Marcello Tamietti ABOUT ACCENTURE IoT EALA Sales lead Accenture Mobility Accenture is a leading global professional services company, Phone: +39 011 507 7302 providing a broad range of services and solutions in strategy, Email: [email protected] consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives.

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 15 ABOUT HITACHI PREMIUM SPONSOR

Hitachi Insight Group is responsible for driving the global unified internet of things (IoT) business and go-to-market strategy for Hitachi, Ltd., and is dedicated to driving business and societal transformation through digitalization. Its digital solutions deliver connected intelligence and actionable insights that support better decision- making, exceptional outcomes and smarter, safer, healthier, more efficient societies. Leveraging Hitachi's rich industrial heritage and Contact: extensive expertise in both operational and information technologies Hope Nicora (OT and IT), Hitachi Insight Group accelerates solution creation with Global Corporate Communications Hitachi Insight Group Lumada, Hitachi's IoT platform and serves public and private sector Phone | mobile: +1-831-227-3660 customers across three market categories: Smart City, Energy IoT and Email: [email protected] Industrial IoT. Sachin Andhare For more information, visit www.hitachiinsightgroup.com. Director, Industrial IoT Solutions Hitachi Insight Group Phone | mobile: +1-510-565-5330 Email: [email protected]

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 16 ABOUT INTEL PREMIUM SPONSOR

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 17 ABOUT REPLY PREMIUM SPONSOR

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 18 ABOUT COGNIZANT GOLD SPONSOR

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 19 ABOUT STRATUS GOLD SPONSOR

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 21 ABOUT LOGICALIS SILVER SPONSOR

Logicalis is an international multi-skilled solution provider providing digital enablement services to help customers harness digital technology and innovative services to deliver powerful business outcomes.

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 22 ABOUT SALESFORCE SILVER SPONSOR

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 23 ABOUT T-SYSTEMS SILVER SPONSOR

With a footprint in more than 20 countries and external revenues of 6.5 billion EUR (2016), T-Systems is one of the global information and communications technology (ICT) leaders. T-Systems offers a range of integrated solutions for business customers, including the secure operations of legacy systems and traditional ICT services, the transformation to cloud-based services (including tailored infrastructure, platforms and software) as well as new business models and innovation projects for the business fields of the future, such as data analytics, the Internet of Things, machine-to-machine (M2M) Contact email: [email protected] communications and Industrie 4.0. These offerings are based on the provider’s global reach in fixed-network and mobile communications, its highly secure data centers, a comprehensive cloud ecosystem built around standardized platforms and global partnerships, and the ability to ensure highest levels of security.

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About Deutsche Telekom

Deutsche Telekom is one of the world's leading integrated telecommunications companies. The group provides fixed- network/broadband, mobile communications, Internet, and IPTV products and services for consumers, and information and communication technology (ICT) solutions for business and corporate customers. Deutsche Telekom is present in more than 50 countries and has about 218,300 employees worldwide. In business year 2016, the company generated revenues of 73.1 billion EUR, about 66,3 percent of it outside Germany. For Deutsche Telekom, the business customer segment in Europe is a strategic area of growth. Together with T- Systems, Deutsche Telekom’s daughter company for the large accounts segment, Deutsche Telekom provides small and medium businesses as well as multinational corporations ICT solutions for an increasingly complex digital world. The core offering comprises cloud- based services, M2M and security solutions, complementary mobile and fixed-line communications products, solutions for virtual collaboration and IT platforms, which serve as basis for customers’ digital business models.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 24 ABOUT PAC

Founded in 1976, Pierre Audoin Consultants (PAC) is part of CXP Group, the leading independent European research and consulting firm for the software, IT services and digital transformation industry.

CXP Group offers its customers comprehensive support services for the evaluation, selection and optimization of their software solutions PAC - CXP Group and for the evaluation and selection of IT services providers, and 15 Bowling Green Lane EC1R 0BD London accompanies them in optimizing their sourcing and investment United Kingdom strategies. As such, CXP Group supports ICT decision makers in their Phone: +44 207 251 2810 digital transformation journey. Fax: +44 207 490 7335

Further, CXP Group assists software and IT services providers in [email protected] optimizing their strategies and go-to-market approaches with www.pac-online.com quantitative and qualitative analyses as well as consulting services. Public organizations and institutions equally base the development of their IT policies on our reports.

Capitalizing on 40 years of experience, based in 8 countries (with 17 offices worldwide) and with 140 employees, CXP Group provides its expertise every year to more than 1,500 ICT decision makers and the operational divisions of large enterprises as well as mid-market companies and their providers. CXP Group consists of three branches: Le CXP, BARC (Business Application Research Center) and Pierre Audoin Consultants (PAC).

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Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 25 DISCLAIMER, USAGE RIGHTS, INDEPEN- DENCE AND DATA PROTECTION

The creation and distribution of this study was supported by premium sponsors Accenture, Hitachi, Intel and Reply, gold sponsors Cognizant and Stratus, and silver sponsors GE Digital, Logicalis, Salesforce and T-Systems.

For more information, please visit www.pac-online.com.

Disclaimer

The contents of this study were compiled with the greatest possible care. However, no liability for their accuracy can be assumed. Analyses and evaluations reflect the state of our knowledge in April 2017 and may change at any time. This applies in particular, but not exclusively, to statements made about the future. Names and designations that appear in this study may be registered trademarks.

Usage rights

This study is protected by copyright. Any reproduction or dissemination to third parties, including in part, requires the prior explicit authorization of the sponsors. The publication or dissemination of tables, graphics etc. in other publications also requires prior authorization.

Independence and data protection

This study was produced by Pierre Audoin Consultants (PAC). The sponsors had no influence over the analysis of the data and the production of the study.

The participants in the study were assured that the information they provided would be treated confidentially. No statement enables conclusions to be drawn about individual companies, and no individual survey data was passed to the sponsors or other third parties. All participants in the study were selected at random. There is no connection between the production of the study and any commercial relationship between the respondents and the sponsors of this study.

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 26

Digital Industrial Transformation with Internet of Things – Copyright CXP Group, 2017 27