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Enabling Business Success

in a Connected World

...then an intelligent software

solution from Bosch is behind it.

BPM

M2M

BRM

Software Innovations

When technology

suddenly understands

itself much better...

InnovateIT

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Editorial Imprint

Main Story

In Brief

Case Studies

03 InnovateIT

04 Bosch Brings the IoTS to Life

Business & IT

08 Intelligent Processes: Gartner Magic Quadrant 09 3x1>3: The Software Suite

10 M2M Management Software Review 11 Predictive Maintenance

14 McDonald's, Education Services, Allgäuer Überlandwerk, Secom Taiwan, LGT Bank, New Representations in Australia and China, Elmer, Green Charge Networks, Revies Building Business Capability

17 Urban Electromobility in the Tropics 18 SBB: When Processes Gain Momentum 20 PostFinance: Credit Risk Rating Platform

About Bosch Software Innovations

22 Vodafone and Bosch: Two Strong Partners

Event Forecast

23 Forecast to Upcoming Events

Customer magazine of

Bosch Software Innovations GmbH

Editor

Bosch Software Innovations GmbH Elena Lucas Schöneberger Ufer 89-91 10785 Berlin, Germany Phone +49 30 72 61 12-257 [email protected] Publisher

Bosch Software Innovations GmbH Schöneberger Ufer 89-91

10785 Berlin, Germany

© Copyright

Bosch Software Innovations GmbH

Printed in Germany Circulation

2000

Any reprint or copy, even only in extracts, is only permitted with express consent of the editors. Changes and errors reserved. Product and company names used are trade-marks and / or registered tradetrade-marks. They are independent of marking property of their respective owners.

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Dear Readers,

Shaping the future together – this is the motto under which we have been working together towards one goal in recent months. Today we brought it to completion: Bosch Software Innovations and inubit have merged into one

company. We very much look forward to familiarizing you with our products and solutions under one name.

In this issue of InnovateIT, we delve deeper into the topic of the Internet of Things and Services: What challenges and opportunities does this trend have ready for us and our customers, and how does our software suite, available as the BPM+ or IoTS edition, make your business fit for the future? We also report on a number of successes in this field and on our core technology – with examples from customer projects as well as from collaboration with analysts and partners. I hope you enjoy reading InnovateIT!

Dr. Heinz Derenbach

President of Bosch Software Innovations GmbH

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Main Story

Without wishing to give the game away – although you have probably already guessed – we believe the follow-ing: no, we are not for connecting everything up at all costs. After all, not everything that is possible is actu-ally useful, and even useful ideas often call for particu-lar caution when it comes to issues such as fault toler-ance, security, and privacy. In our opinion, connecting up objects only begins to make business sense when it generates added value in a business model, for example through the creation of new online services.

Consider for a moment the possibility of communication between your running shoes and your central heating system. Should these two things be constantly exchang-ing data with each other? Of course not. But what if you were out running and the chip in your shoes were to send the central heating a command along the lines of: “Turn up the temperature. I’ll be home for a shower shortly”? Then there would be a point to it. Consumers would get a useful service, which they would be willing to pay for under the right circumstances, making it an attractive proposition for product manufacturers and service providers.

With our passionate commitment and strong team, Bosch Software Innovations wants to be your partner, helping you to navigate the world of the IoTS. Because we are shaping the future together, we will help you to master challenges that will accompany the big commer-cial opportunities. In this respect, we see ourselves not only as a partner accompanying you on your IoTS jour-ney with services and technical advice, but also as a de-velopment consultant for new business models.

More than 6 billion connected devices

Over the coming years, more and more devices and sys-tems will have the ability to send and receive data over the internet as part of their standard features. We com-piled a large volume of data from a variety of sources, did calculations, and came up with the figure of over 6.5 billion objects that will be online in 2015. Another fac-tor that is propelling the IoTS forward is internet access: whereas less than one percent of the world population was online in 1995, it is estimated that more than 5.5 billion people will have access to the internet by 2015 – about 75 percent of the world’s population. And thus our expectations as consumers, as we become increas-ingly connected up in our personal and professional lives, are a contributing factor to the IoTS’ transforma-tion of the economy and our everyday lives.

Bosch Brings the IoTS to Life

In the Internet of Things and Services (IoTS) the physical world of devices merges with the virtual world of software and the internet. We predict that by 2015 there will be over six billion IP-enabled devices sending and receiving data over the inter-net. People like to talk about the opportunities heralded by a fully connected world, a future in which everyone will be linked to everyone else and in which all objects communicate with one another. But does connecting everything up actually make sense? As with all technological upheavals, huge opportunities go hand in hand with equally big challenges.

The Internet of Things and Services

The Internet of Things and Services (IoTS) is the next generation of the internet. It is a global system of IP-connected computer networks, sensors, actua-tors, machines, and devices. Merging the physical world of devices with the virtual world of software and the internet enables companies and consumers to create and enjoy new services that are founded on web-based business models. Last but not least, the IoTS also marks the beginning of a series of technological, economic, and social changes that will have a big impact on the way we do business and go about our daily lives.

Fact check

In the IoT community, there are large discrepancies between different estimates of the number of devices connected to the internet: some companies cite the projected figure of 50 billion connected devices in 2020. We base our calculations of the number of connected devices on 20 sources. The figure we calculated of 6.5 billion relates to activated devices with TCP/IP connectivity that are connected to the internet. We deducted from the total all devices that have already been disposed of or replaced by new ones.

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Main Story

Creating a “virtual table” for new business partnerships

Development of the IoTS is still in its infancy, and we are by no means aware at this stage of all forms new busi-ness models might take. But what we can already see from our IoTS projects in the mobility, manufacturing, and energy sectors is that it pays off to have an open attitude: after all, for companies working in the IoTS, be-sides the question of who their competitors are, there is also the question of with whom they can join forces in partnership. We are witnessing how market participants and sectors that previously had no business relationship with each other are striking up partnerships. A good example of the multi-faceted nature of the virtual table is electromobility, where companies, energy suppliers, public utility firms, the public sector, charge spot and parking lot operators, retailers, and the drivers of elec-tric vehicles are all cooperating closely. To do this, they need a common technological basis.

The right attitude: open systems

For business models to be viable and sustainable in the internet, first you need technology that is open and scal-able for all business partners, that can be integrated into existing IT landscapes, and that connects with end con-sumers (for example, by means of online portals or apps),

while encryption and flexible authorization models en-sure that sensitive data is protected.

As the Bosch Group’s software and systems unit, the spir-it of the Bosch brand’s “Invented for life” slogan is the guiding principle behind the interoperability and open-ness of our software products and solutions. Our col-leagues in the area of home appliances share our view. For example, they do not want to limit the convenience of users of a smart home service when it comes to their choice of IP-enabled white goods by tying them to one brand

Product manufacturers: new services offering higher margins

By opening up new web-based possibilities, the IoTS ex-pands the portfolio range that companies can provide – an attractive proposition not just for internet companies. The IoTS also challenges classic product manufacturers and machinery and plant engineering firms. An existing product and machine portfolio can be quickly expanded to incorporate value-added services. For some compa-nies, the IoTS causes a shift in where the value of the manufactured product or machine resides: perhaps cus-tomers’ decisions are no longer primarily driven by the industrially manufactured hardware but rather the ser-vices the device allows them to access: a payment app or a service such as predictive maintenance, see page 11. “Service Business Development: Strategies for Value

Cre-ation in Manufacturing Firms”, a study published last year by the University of St. Gallen (HSG), shows that it is precisely such services that yield higher margins – some-times even five to ten some-times as high – compared to the pure product business.

Closing the integration gap: devices to become active participants in business processes

In order to run these services efficiently, however, the connected devices must be integrated into a compa-ny’s existing systems. This may sound easy at first, but in many sectors there is still a big gap between the planned new services and the devices – particularly when it comes to the full integration of devices into companies’ existing system and process landscapes. It only becomes possible for companies to realize sus-tainable business models in the IoTS once they have managed to turn devices into active participants in busi-ness processes. Consider the following comparison: in conventional offline business models, objects give the user a simple piece of information. For example, a ve-hicle odometer provides the following information: “50,000 kilometers. Time for a service!” Business

mod-1995 2005 2015

6.593 billion devices in 2015

0.062 billion vehicles 0.019 billion in telemedicine 0.070 billion in security 0.120 billion smart meters 0.260 billion TVs 0.625 billion tablets 3.000 billion mobile phones 1.498 billion laptops 0.895 billion desktops 0.044 billion servers 1 billion 2 billion 3 billion 4 billion 5 billion

Internet access worldwide and the number of IP-enabled devices connected to the internet are the key for future products and services in the IoTS. Both areas will experience rapid growth: in 2015, 75% of the world’s population will have access to the internet and more than six billion objects will be exchanging data over the Internet.

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els in the IoTS go a step further and connect the vehicle data up with additional information in the cloud, servic-es, and processes: “50,000 kilometers. Time for a ser-vice! Shall I arrange an appointment for you in the near-est garage offering the bnear-est value?”

Speed is a key competency in the IoTS

If you are currently involved in implementing an IoTS project, you will have noticed that it changes at a breathtaking pace. Business models and their underly-ing business logic are constantly changunderly-ing: new busi-ness partners come along, new features are added to services, new types of devices go online. Flexibility in the IoTS is also assuming new importance because we are presently engaged in shaping the future. When de-veloping business models in an exploratory manner, shifts in the marketplace are pretty much guaranteed. And of course this also has a big impact on key business processes such as product management or production and sales planning.

The key to successful web-based business models: low costs, high efficiency

If you are anxious about the IoTS turning into a black hole for resources, then we have reassuring news for you: it does not have to be that way. On the contrary, intelligent software can be the key to the fail-safe, trans-parent, and efficient networking of distributed market partners – from providers to end users – devices, ser-vices, and business processes. Although connectivity could also be realized by means of hardware, it would be very infrastructure-intensive, with associated high costs and construction investment – think, for example, of the energy sector with its large number of decentral-ized plants and consumers. An electromobility project undertaken by one of our customers at New York’s La-Guardia airport almost foundered on this issue, as the costs for expanding the infrastructure over the last mile amounted to over half a million U.S. dollars. In the end,

the company used software to integrate the required ob-jects (charge spots, power sources, storage equipment, etc.), business partners, and drivers into the existing in-frastructure for a third of the price the hardware would have cost.

Being that little bit faster with model-driven software Our experience over the past few years has shown that once IT systems and business processes have been set up, most adjustments are the result of changes in busi-ness logic in the market rather than changes in the sys-tem and process landscape. Accordingly, speed and agility are becoming decisive factors when it comes to business innovation. Carrying out manual reprogram-ming for every change in business logic is expensive and requires a lot of coordination. Protracted development and change cycles, drawing up and working through re-quirements and functional specifications, and manual programming are scarcely affordable with web-based business models.

A model-driven, graphical software development ap-proach efficiently bridges the gap between the IT de-partment and the respective specialist, for example the business developer or operations manager of an elec-tromobility project. Cooperating closely, they can react flexibly to new requirements while still working on a common platform. The software’s intuitive design means that specialists can implement changes in business logic themselves. The processes modeled by the specialists are then automatically converted into technical

process-Main Story

Bosch Software Innovations is applying the expertise it has accumulated over many years in the optimization and automation of business processes in the energy market to the development of new approaches for the smart management of decentralized energy systems. This includes the realization and operation of new, open

software concepts in the smart grid as well as our know-how in helping to actively shape new business models and value-added services for decentralized energy producers, grid operators, traders, and other market participants.

Our software products offer a broad range of graphic tools for developing and managing business processes and rules. The tools are intuitive to use and follow a unique modeling approach.

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es, refined by the IT department, and executed without delay. The division of tasks between IT and the special-ist department is clearly defined by this software con-cept, with each side concentrating on its core role. This graphics-based, modeling software approach has been a specialty of Bosch Software Innovations for over ten years and forms part of all our software products. More than 500 international projects have already been suc-cessfully accomplished using this approach.

Why a combination of process, rules, and device management is just right for IoTS projects

The technological vision of Bosch Software Innovations is to offer software products in the IoTS that provide the greatest commercial utility. Depending on the business model, it must be possible to integrate a great variety of different kinds of devices from all kinds of manufactur-ers into a single system in a logical manner. Only then is it possible for business partners, providers, and users to offer or experience truly networked services.

Quickly adaptable processes are essential in web-based business models. As the nature, logic, participating part-ners and users of a service are just developing, all un-derlying processes and the business logic must remain adaptable. Moreover, companies must be able to swiftly implement new ideas so as not to lose their competitive edge.

This is why the combination of Business Process Man-agement (BPM), Business Rules ManMan-agement (BRM),

and Machine-to-Machine Communication (M2M) is ide-al for implementing viable business models in the IoTS. Only on this basis can a great variety of devices interact seamlessly with intelligent business processes. We call

this end-to-end integration concept “device-to-process” and realize it in the IoTS edition of our software suite. My colleague Dirk Slama presents this springboard into the new possibilities of the Internet of Things and Ser-vices on page 9.

Author: Anita Bunk www.bosch-si.com/IoTS

All-in-one solution for better business: our software suite

Our software suite is a combination of integrated software products for process, rules, and device management. It enables the quick and efficient implementation of IoTS projects, new cloud services, and also traditional enterprise applications such as business process and business rules management. In our connected world, this

allows customers to swiftly and efficiently create new business processes and models and improve existing ones. Our soft-ware suite is available in two editions: BPM+ and IoTS.

Main Story

Application in the IoTS:

Putting predictive maintenance in place allows companies to predict faults in the production process long before they actually arise. This reduces maintenance and repair costs and increases productiv-ity through less downtime.

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Through the integration of analysis tools as well as social and mobile technologies, companies are preparing their processes for the future. Gartner has published a Magic Quadrant in this regard, listing Bosch Software Innovations in it as a “Visionary”.

Intelligent Processes

Business & IT

Enterprise processes and applications are becoming more intelligent. Gartner, one of the world’s leading market research and consulting firms for the technology sector, picks up this trend and introduces a new genera-tion of intelligent Business Process Management Suites (iBPMS).

Intelligent processes for agile enterprises

But what does that mean precisely? In times of accel-erated business cycles, managers need to make well-founded decisions more and more quickly in a changing environment. This requires that information about pro-cesses and their status can be called up and evaluated at any time. It also requires software that adapts the processes continuously and in real time according to the information in the sense of “context awareness”.

This is where previous BPM-Suites reached their limits: reports are usually limited to static evaluations and it is only possible to adjust ongoing processes to a limited extent. For this reason companies are relying to a great-er extent on new technologies – intelligent technologies. Gartner is seizing on this development with the Magic Quadrant for Intelligent Business Process Management Suites.

An iBPMS expands the traditional BPMS by adding new functionality, such as real-time business analytics, deep complex-event processing (CEP), powerful support

for rule management, social media to support social behavior and collaboration, and expanded technolo-gies to support growing requirements for mobility. This new functionality focuses on adding more machine and human intelligence in a much friendlier work environ-ment that is characterized by role-based workspaces. Bosch Software Innovations listed as a “Visionary” With the consolidation of our products for BPM and BRM, our vision for the Internet of Things and Services, and the worldwide presence of Robert Bosch GmbH, we were able to convince Gartner: our placement in the “Visionary” category of the Magic Quadrant confirms the capability of our technology to implement current requirements in the spirit of an iBPMS as well as our strategy of driving future developments forward. The report emphasizes the following points in particular: ` The strengths of the technology in application

integration

` Our model-based development environment

` Good capabilities in the processing of process rules using Visual Rules

` Deep industry expertise and capabilities for integration of any hardware devices

Author: Elena Lucas

Source: Gartner, Inc. Magic Quadrant for Intelligent Business Process Management Suites Jim Sinur et al. 27 September 2012 From BPMS to iBPMS Key Challenge: better and faster decisions Requirement: improved visibility into organizations and environments What organiza-tions need: intelligent business operations by inte-grating analytics New scenario for BPMS: Intelligent Business Operations Enhanced BPMS: to reflect IBO scenario > iBPMS

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Business & IT

The suite as BPM+ edition:

Process-centric applications cover the familiar products for BPM and BRM:

` BPM (Business Process Manage-ment): Based on inubit, with exten-sive capabilities in the area of BPM, the complete lifecycle of processes in the enterprise is supported here,

from technical modeling and automatic generation of technical implementation workflows to refinement by IT and operations. The picture is rounded out by sophisticated tools for business and technical pro-cess monitoring.

` BRM (Business Rules Management): BRM is based on the international award-winning software Visual Rules. It enables full visual modeling of busi-ness rules by experts. The busibusi-ness models can be used to automatically generate rule

implementations for runtime that can be executed both online and in batch mode, providing support for optimal decision-making.

The suite as IoTS edition:

In the IoTS edition, BPM and BRM are expanded to in-clude the topic of M2M:

` M2M (Machine-to-Machine): A powerful and flex-ible software that allows not just devices to be integrated and managed, but also complex sys-tems that consist of multiple devices: a virtual power plant, for example. The focus here is on

what are known as Information Models, which allow the complexity of the real world to be abstract-ed and handlabstract-ed. This means that the M2M software ensures that the equipment can be

safely interacted with even in complex scenarios, and that the company al-ways has an overview of all devices in the field.

Model-based development and unified identity management bring the products together

An important basis for the integration of all three prod-ucts is what is known as model-based development. Each of the products uses models with a high degree of abstraction. An example of model integration is “Device-to-Process,” which enables interaction between devices and processes. Based on the business models, the ba-sics of the application are generated, which can be fur-ther refined by IT experts. This significantly increases collaboration between business areas and IT and is im-portant for mastering complex projects.

Through the provision of unified identity management (IM) that is used by all products, “single sign on” can be provided for all portal users. In addition, IM is the basis for the client capability of all applications. This in turn is the basis for successful operation of applications in the cloud.

Author: Dirk Slama

www.bosch-si.com/SoftwareSuite

Based on its core products, Bosch Software Innovations has developed a software suite for BPM, BRM, and M2M. It is available in both BPM+ and IoTS editions.

3x1>3: The Software Suite

Customers Partners Employees

Processes

e.g. Sales, Provisioning, After-Sales Services

Portal (Web & Mobile)

e.g. Order, Device-Status, Device-Configuration

EAI, SOA, EDI Partner,

Legacy

Applications Rules e.g.

validation of device status

Device Management

Device abstraction (Information Models) remote access, asset management, security

Device-to-Process, Process-to-Device Master Data, Device Data Identity Management

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For many years now, the research company Analysys Mason has been studying the machine-to-machine – M2M for short – market and evaluating current and fu-ture developments. In 2012, Bosch Software Innovations was invited to take part in the study for the first time in its capacity as a manufacturer of technology products – alongside the classic players in the M2M market, the communication service providers (CSPs).

With our software products for business process man-agement (BPM), business rules manman-agement (BRM), and infrastructure management, we do not see ourselves as a classic M2M provider; rather we offer farther-reaching solutions and services for the Internet of Things (IoTS). The Internet of Things and Services goes beyond M2M In Analysys Mason’s view, IoTS represents a more ad-vanced stage beyond simple M2M applications that merely use communication technology for transmit-ting data and events from devices and machines in or-der to profitably use them in the respective business context. In the Internet of Things and Services, even smaller entities such as actuators and sensors can be automated to supply data for intelligent applications. If required, the units themselves can be equipped with active, smart functions that enable them, for ex-ample, to initiate the transmission of data in certain contexts. This creates the basis for providing com-pletely new applications in the form of cloud services. In the Internet of Things and Services, communities play an important role and new ecosystems are formed dynamically. Participants who previously had no busi-ness relationship with each other can take a seat at a virtual table in a brand new business context.

The M2M study from Analysys Mason is divided into a

market part and a manufacturer part:

` Analysis of the global M2M management market, including a 5-year forecast (up to 2016) based on sales revenue (CAGR, compound annual growth rate) and the number of M2M device connections

` Recommendations for CSPs and solutions provid-ers for orientation of their product/service ranges according to identified market trends, derived from these findings

` Identification of general market drivers in the differ-ent sectors as well as market hurdles to be overcome ` A structured evaluation of the manufacturing mar-ket based on five distinct software management segments along the value chain

` Classification of CSPs based on the phase they are in as regards implementing their M2M management software range

Innovative solutions for the Internet of Things and Services from Bosch Software Innovations

Analysys Mason sees the strengths of Bosch Software Innovations as an active provider of M2M solutions above all in the innovative strength and market power of the Bosch Group, the scalability of its applications, and the amount and variety of technological expertise it possesses as the basis for innovative M2M/IoTS solu-tions. Bosch is placing a clear emphasis on developing new services and is already integrating existing standard systems, such as billing systems for example.

Find more information about the partnership with Vodafone on page 22 of this issue.

Author: Stefanie Peitzker

www.bosch-si.com/company/information-materials/analyst-reports/m2m-management-software.html

In 2012, Bosch Software Innovations took part in the M2M management software review by the analysts Analysys Mason for the first time. It was classed – including partnerships with communication service providers such as Vodafone – as a full-service solutions provider.

M2M Management Software Review

Business & IT

Supplier capabilities in each of the five management segments

Bosch Software Innovations Key: = yes; X = no

Device management

Rating and pricing Authentication

and security

Managed connectivity

Company Device data aggre-gation and analysis

X X

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If the production process is brought to a halt due to a defective machine, this causes unplanned revenue loss for companies. If the machine cannot be repaired imme-diately because spare parts need to be ordered or a ser-vice technician needs to be commissioned, for example, these costs can sometimes soar.

To prevent system failures, many companies pursue a strategy of preventive maintenance, which is carried out in accordance with fixed time or output intervals. This method, however, is not the best possible solution. On the one hand, it is associated with high costs because components are replaced before their actual service life has been exhausted. On the other hand, unplanned ma-chine failures can only be reduced through a preventive approach, but cannot be avoided altogether.

Proactive service and repair for the industry of tomorrow

Predictive maintenance opens up new perspectives for efficient design of maintenance measures of production operations. By employing a holistic approach, Bosch Software Innovations provides software-based support for the entire maintenance process: from data analysis and early error detection to procurement of spare parts and handling of maintenance measures.

The software takes action even before possible failures arise. Sensors are used to record status data of machine components while they are running in order to detect conspicuous patterns or tendencies. The data is trans-ferred over the Internet in regular intervals to the

soft-ware developed by Bosch Softsoft-ware Innovations. This software uses rule and process management techniques to analyze the data and make precise forecasts about possible failure dates.

Central service portal

A service portal is used to centrally monitor the results gained and organize subsequent measures. In combina-tion with informacombina-tion from third-party systems, such as ERP or CRM systems, services for remote maintenance can be offered and deployments of technicians on site can be planned.

Software supplements existing systems

The software is also a perfect addition for companies that already use remote maintenance systems or condi-tion monitoring systems. To expand its service offerings relating to all aspects of maintenance, Bosch Software Innovations, together with one of the world’s leading mechanical engineering companies, is putting a solution into practice for early detection of machine faults. With their cooperation, the two companies are pursuing very different objectives. One objective allows maintenance measures to become much more plannable for the cus-tomer than was previously the case. The other shows the customer possible ways to save resources, because predictive maintenance is actually far more than just service and repair.

Author: Alexandra Enderle

www.bosch-si.com/industries/manufacturing/manufacturing. html

Reduce costs. Minimize downtime. Increase productivity. Early detection of machine faults provides for more efficiency in the maintenance process.

Predictive Maintenance

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When technology in the Internet of Things and

Services suddenly understands itself much better, then

an intelligent software solution from Bosch is behind it.

Thanks for

everything,

service technician!

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When technology in the Internet of Things and

Services suddenly understands itself much better, then

an intelligent software solution from Bosch is behind it.

I know,

low-voltage line,

I know...

Always nice

to work with

you, charging

station!

I'm thinking

of you,

wind turbine!

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McDonald’s Deutschland auto-mates the processing of documents

McDonald’s Deutschland Inc. has automated its document processing with inubit. With its fast and trans-parent processes with no discon-tinuity of media, the company achieves a high degree of automa-tion and reduces the time-consum-ing switchtime-consum-ing between paper-based and electronic communication. To achieve this goal, the steps in-volved in document processing which were handled via Excel, Access and paper documents were made transparent and with no dis-continuity of media. “The challenge was to integrate the offered solution into the heterogeneous system land-scape at our company, connecting various distributed systems. Now we have an excellent solution which allows document processing without any need of stamps and mailboxes,” explained Dieter Opitz, IT manager at McDonald’s Deutschland.

inubit integrates the existing IT systems and enables document processing with no discontinuity of media, including the connection of digital archiving systems, from the automatic generation of accompa-nying documents and storage in a master data management system to the transfer of accounting data to the financial accounting system.

For electricity providers, the chang-es required in the course of switch-ing from one provider to another can be handled quickly and easily. The software collects data on busi-ness and communication partners at a central point, checks incoming change applications, manages them and completes their processing. Incoming messages are immediately checked for validity and plausibil-ity. Only if an application fails the automated check, an employee will be involved in the review process. In the end, the employee always de-cides whether to approve the change or reject it based on lack of infor-mation. To maintain an overview of the applications, AÜW staff use the Process Monitor. This tool graphi-cally represents the processing and message status of the transmitted market data and compiles reports on the number of implemented or rejected change processes.

Werner Kessler, IT manager at AÜW, on the advantages: “This function is particularly important for our staff, since they can access and actively control processes very simply here by clicking buttons. This means that the user ultimately handling the change process is not distracted by the complex procedures occurring in the background.”

Bosch Software Innovations Training Center – Now in Berlin

To support the knowledge develop-ment that is crucial for the success of the enterprise, we offer our users and partners a variety of education services in our Training Center based in Berlin.

It is important to us that the practi-cal work is not given short shrift. After the theoretical introduction and demonstrations, it is then the participants’ turn to implement what has been learned to train the required capabilities for success-fully transferring and deploying the course topic knowledge in your own context.

Transparent Change Processes in Electricity Measurement

Allgäuer Überlandwerk GmbH (AÜW) has opted for inubit in meeting the German Federal Network Agency requirements in the area of change processes in measurement (WiM). For almost 90 years, Allgäuer Über-landwerk GmbH has supplied elec-tricity to households that today number more than 94,000, and now it offers easy switching of meter op-erators with the aid of inubit. End customers can now select from the diverse service offerings for their electric meter.

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New representations in Australia and China

Bosch Software Innovations is con-tinually expanding its international presence. In the past months we established a presence in Melbourne (Australia) and Shanghai (China) to meet the growing regional demands for intelligent software solutions in the Internet of Things and Ser-vices. Amin Manji and Wang Jianguo are our pioneer employees who will spearhead the development of these markets.

“China’s leading role in the manufac-turing business and growing prow-ess as a technology provider align perfectly with our vision to become a leader in the Internet of Things and Services (IoTS).

It is estimated that by 2015, more than 50 billion devices will com-municate which each other to drive sophisticated Machine-to-Machine (M2M) applications and business process integration,” explained Thomas Jakob.

“Our strong technology platforms, combined with our global experi-ence, will help our clients in China to generate increased value on their investments,” he continued.

First eMobility customer in Greater China

Bosch Software Innovations has signed its first contract with a cus-tomer in Greater China. SVS Cor-poration, which is part of Taiwan Secom Group, will be using our eMobility solution developed to set up and manage an electric vehicle charging infrastructure across Tai-wan. The first charging stations are expected to be installed by early 2013.

SVS Coporation wants to lead Tai-wan’s electric mobility industry by developing a world-class electric vehicle program. They chose Bosch Software Innovations as a solution and service provider because of our comprehensive vision and capabili-ties for intelligent charging networks.

The charging network will be based on Bosch Software Innovations‘ eMobility solution and includes for instance:

` Secure cloud-based service for the networking of charging sta-tions;

` Full-fledged administration of charging stations via a compre-hensive management portal; ` Accurate logging of consumption

data as a basis for billing;

` Intelligent back-end as a basis for the establishment of a compre-hensive eco-system for electric mobility services.

Compliance: LGT Bank in Liechtenstein uses MAID

LGT was looking for software that fulfills the minimum requirements for preventing market abuse as laid down in Liechtenstein’s Market Abuse Act as well as further bank-specific requirements.

In addition, the software was to be used for monitoring personal ac-count dealing and ensuring compli-ance with internal standards and guidelines, for example in relation to lock-up periods, maximum number of trades allowed per month, etc. It was also important that the software should enable LGT to model the auditing of all derivative products based on their underlyings.

LGT opted for the MAID software so-lution. This solution, which is based on the Visual Rules technology, is capable of automatically identifying the complexity of security master data and critical transactions. At the same time, it results in a significant reduction in integrated case process-ing. LGT uses MAID to monitor both customer and proprietary transac-tions for signs of potential abuse, thereby creating transparency and rooting out problems at an early stage.

The LGT Group is the largest family-owned private banking and asset management group in Europe.

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Automatic invoice processing using the invoice receipt ledger

The Elmer consortium, one of the leading specialized wholesale com-panies of the German plumbing/ heating/air-conditioning sector, has automated its processes for invoice receipt using inubit. Since the launch six months ago, 25,000 in-voices have already gone through the automated verification. While it was previously the case that verification was carried out only on a random sampling basis, the rate is now 100 percent.

The invoice receipt ledger (IRL) of-fers the ELMER employees an on-line portal that allows all incoming invoices to be viewed on the item level. The automated verification process runs in the background: In-voices are compared with the corre-sponding orders and deliveries and checked to ensure that they match. Invoice items that differ from the order are visibly marked for the veri-fier.

Orders are also compared with the delivery note data and the received goods from the stock item entries. For cases in which an order refer-ence is missing, the system has a logical sequence to follow for finding the order number that matches the invoice. It is also possible to directly consult employees about a specific problem in case of discrepancies.

Visual Rules helps manage grid ef-ficiency and reliability

Green Charge Networks, an innova-tor in smart grid technology, uses Visual Rules for an energy manage-ment application to address peak-load issues.

The business rules product has been integrated into Green Charge Net-works’ GridSynergy™, which helps meet the growing demand for elec-tricity in the US by increasing the utility’s asset utilization and reduc-ing their capital expenditures.

Due to the growing population and economic growth as well as the in-creased presence of electric ve-hicles, grid reliability and efficiency are key concerns for utilities.

In order to modernize the nation’s electric grid, smart meters are being rolled out nationwide providing utili-ties with vast amounts of data. The challenge is to create action-able intelligence in real time. Being a central part of the application, Vi-sual Rules provide utilities with real-time status updates, decision aids and recommended options for load relief.

The integrated business rules tech-nology has already been deployed in a smart grid demonstration project in New York City.

In Brief

BBC ‒ technologies and techniques to create an agile organization

From October 28 to November 1, 2012, Building Business Capability (BBC) played host to over 850 at-tendees looking for ways to make their organizations more agile and effective.

For the third year, BBC united five co-located forums and summits un-der one roof: Business Analysis, Process and Rules Forum; Business Architecture Summit, and Business Strategy & Transformation Summit. Attendees could choose sessions from the comprehensive conference program offering insight and educa-tion through a broad range of topics from Business Rules through Busi-ness Process Management, BusiBusi-ness Intelligence and many more.

With so many topics in play, the true strength of this event lies in its depth and case studies present-ed by recognizpresent-ed analysts such as Jim Sinur, James Taylor and Sandy Kemsley and experts from interna-tional companies.

Being a main sponsor with various speaking engagements, the five days of learning and networking provided valuable social opportunities for Bosch Software Innovations’ attend-ing associates to connect with peers and key analysts.

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Case Study

Located 137 kilometers north of the equator, Singapore is acknowledged to be a modern and technology-savvy city-state. Known for its many extraordinary projects and initiatives, some people like to call it a living laboratory. One of these projects that gained world-wide attention is an electromobility pilot program. The so-called elec-tric vehicle (EV) test-bed started in 2011 and is to eval-uate the challenges and opportunities of introducing electric vehicles in Singapore. It is a government initia-tive and led by the Singapore inter-agency EV Taskforce comprising several government agencies.

Bosch Software Innovations – The charging service provider

Each EV user in the test-bed receives a normal charging station from Bosch. As of February 2013, 50 charge spots have been installed. With the increase of electric vehicles on Singapore’s streets, the network will be ex-panded to up to 87 charge spots.

Bosch Software Innovations has been developing an open software platform that supports a broad range of eMobility services. That includes e.g. finding charging stations, identification of drivers and EV charging. The technology allows real-time connectivity, monitoring and remote software updates for the charging stations. The

software also enables the EV driver to locate the nearest available charging station via an online portal.

To complement the software, a bilingual 24/7 call center support is available to assist EV users. In terms of the various pricing models which are used in pilots through-out the world, Singapore adopted a flat subscription fee of S$180 per month. The flat fee covers all the eMobility Services offered by Bosch and is being paid directly to the company. To charge their EV, each user has a credit card-sized card to identify him- or herself at the charging station.

Future outlook

The current phase of the test-bed is supposed to end in 2013. Until then, data from the charging stations will continue to be collected from every single participant in the pilot to find out more about their driving pattern and charging behavior. The final examination of all the data, including a cost benefit analysis, will enable the task-force to draw a final conclusion whether it is feasible to introduce electric cars in Singapore.

Author: Stefanie Kowallick

www.bosch-si.com/internet-of-things/mobility/projects/test-bed-singapore/projects-ev-test-bed-singapore.html

The city-state of Singapore relies on Bosch Software Innovations’ eMobility Solution to support the national electric vehicle test-bed.

Urban Electromobility

in the Tropics

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Fiberglass and copper cable, analog radio systems, landline and mobile telephone communications: SBB Telecom – the internal telecommunications service pro-vider of Swiss railways (SBB) handles 37,000 GSM sub-scriptions with an order volume of 5,000 SIM cards, 8,000 cell phones, 5,000 orders for accessories and 10,000 mutations with an annual growth of 20 percent. In order not to lose the overview of all these items, all processes – from ordering up to invoicing for these services – have been automated with inubit.

The enormous growth meant that the existing Access-based billing and commission calculation system was becoming obsolete. In addition, the many media discon-tinuities required manual entries at many points, which naturally resulted in a high error rate. What was needed was a new solution that could handle these ever-increas-ing quantities while retainever-increas-ing the necessary quality and service time and use the available resources. The spe-cial feature of this: Not only the ordering processes in the area of railway communications (GSM-Rail) were to be made more efficient. The processes for commission

calculations and invoicing the GSM-Public devices for the Swisscom network were also affected.

In the light of the complex and high order volume, the task was to optimize the processes using a Business Process Management tool. Comprehensive documenta-tion was to be provided to make the processes repro-ducible and transparent. The main aim was to standard-ize and model the processes so that media discontinuity could be avoided and so that the processes could be automated with workflows. Manual tasks such as printing and sending paper correspondence were to be reduced to a minimum. Agile adaptation to new requirements was a prerequisite.

The integration of existing systems, such as the compa-ny-internal ordering application, database and the LDAP protocol using a central integration platform was also to optimize communications between SBB employees, customers from the franchised transport companies, the Business Mobile area, GSM-Rail and the provider.

SBB Telecom, the telecommunications service provider of Swiss railways, has automated the order and billing processes in train communication. From now on, processes around 5.000 SIM cards, 8.000 mobile phones, 5.000 orders for accessories and 10.000 mutations are being processed anually with inubit.

When Processes Gain

Momentum

Case Study

Automation throughout the sales support chain

Provisioning Billing / Rating

NOMS – New Order Management System Cus tomer / or der ing par ty (U and UE) SBB or der ing t ool, in vent or y DB Pr oduct cat alog 0-2 le vel aut hor ization

MAC Mobile Services SBB Telecom

(Processes and interaction) Ser

vice in voicing Repor ting Cus tomer GSM-P DB GSM-RDB Customer

Pre- & After-Sales Support

ordering

PBMS

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Case Study

Implementation

To achieve the aim of more efficient processes, the differ-ent procedures were first extensively analyzed, standard-ized and documented in workshops: In this way users were involved in the change process right from the start and priorities could be set for the different requirements. The iterative procedure had many phases with user and system tests to check whether all requirements have been met and whether the solution is suited to current needs. Fallback scenario was set up to enable a clean migration procedure and to avoid data losses. Railway operation could not be endangered at any time.

Special features

` The processes for the subscription provisioning in the GSM-Rail area must be processed particularly reliably as network elements of the GSM network are configured here and an error could have fatal consequences for railway operation. In extreme cases it could mean that intercity trains come to standstill on the track because the safety installa-tions were triggered.

` Complex user interaction was required for com-mission calculation for the various contract types, as many different roles and users are involved. The user interface was implemented with ExtJS – the standard for complex GUIs.

` The contract parameters had to be dynamically con-figurable and input masks had to adapt automati-cally to the parameters. For example, GSM-Rail has different parameters to those of GSM-Public. The configuration of the services was therefore adjusted dynamically in the GUIs, i.e. without extra program-ming. The main advantage of this is the consider-ably lower costs in the case of adjustments to the services. These user interfaces were also imple-mented with the aid of ExtJS.

Result

The introduction of inubit as a process platform eliminat-ed all cases of meliminat-edia discontinuity and processes could be largely automated by the tool:

` Order verification ` Order creation / updating

` Commissioning (registration – activation of SIM cards)

` Programming the SIM card via Card Reader or OTA (Top Security Over The Air Transmission) In addition, a web-based GUI could be created: ` Process monitoring from order to delivery ` Monitoring of the rating process (traffic data) ` Monitoring of the invoicing process (cost allocation) ` Task-controlled ordering workflow

What is next? Currently SBB is implementing other services and optimizing processes already realized. Among other areas, the internal dispatch solution is to be integrated. An additional service is to be established for the users with which they can monitor their own costs for mobile services via a web solution. This means that everything is still very much in motion at SBB – trains, processes and naturally employees as well.

Author: Elena Lucas

www.bosch-si.com/company/information-materials/success-stories/download-success-stories.html

Urs Fankhauser,

project manager at SBB summarizes:

“Approximately 70 percent of the orders and muta-tions are now processed fully automatically to a degree of 90 percent. In addition, all processes are now documented. We can use this basis to continu-ously optimize our business processes.”

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As one of the leading Swiss financial service providers, PostFinance assesses the creditworthiness of all busi-ness and retail customers with the help of the CRRP. To do so, the institution makes use of account balances,

including the credit card transactions. The credit de-fault risk can be precisely expressed by scoring models based on typical credit key ratios.

Clear requirements for a new solution

The decision for Bosch Software Innovations was sub-ject to clear requirements. Before implementing the Credit Risk Rating Platform, Post Finance had in place a self-developed solution to determine credit key ratios and default probabilities from changes in customer ac-count balances. The applied scorecards were not as user friendly as desired nor were they graphically modeled. Increasing demands on performance and audit

com-pliance, as well as the demand for fully integrated and automatic processes, were the reasons for replacing PostFinance’s in-house developed solution.

The aim of the new solution was to calculate for each business and private customer a credit risk score and key ratios such as loss-given default (LGD), expected loss (EL) and probability of default (PD). These values should be automatically determined periodically.

PostFinance Extends Usage

of Credit Risk Rating Platform

Case Study

With the Credit Risk Rating Platform (CRRP) from Bosch Software Innovations Post Finance, the financial institution of Swiss post, professionalizes its control over credit risk.

“The visual representation provides us with rela-tively simple and intuitive modeling without programming knowledge. The scorecard models are extremely adaptable!”

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Essential for PostFinance was that the new solution needed to integrate into the IT landscape and to tie to automated Data Warehouse processes. Extensive behavioral data, including all account activity, should serve as a database for behavioral scoring and for cali-bration of the models. Rating models should flexibly adapt to changing conditions.

In addition, important to PostFinance was the audit-proof historicization of scores and loan defaults.

Visual Rules is already familiar

The Credit Risk Rating Platform is based on the rule technology of Visual Rules from Bosch Software Innovations. This technology is already successfully deployed within the area of Compliance at PostFinance and enables the rule-based detection of compliance risks linked to customers.

The risk control process, for both business and retail customers, starts with the automated validation of data coming from the Data Warehouse. Subsequently, it traverses the entire data set by running the score-card’s rule models in a batch process.

The data for the credit assessment are restored back over a standard interface in the Data Warehouse and are then made available to different departments of the financial institution. As a statistical tool, PostFinance uses, for example, R-Scripts in order to specify the danger of the clustering of risk, or to determine the influence of individual factors in balance sheet analysis for the optimum weight in the scorecard.

For the recently implemented development phase, the rating models were enhanced and now also take into account credit card data for the calculation of the expected loss (EL).

Successful implementation and operations

During the implementation of the Credit Risk Rating Platform at Post Finance, the experts at Bosch Software Innovations supported the internal IT department of PostFinance, especially with the adjustments of inter-faces and with the data handling.

The modeling of the scorecard’s business rules is done by the bank’s risk management team itself. Here, too, the experts at Bosch Software Innovations could assist PostFinance in the implementation phase.

About 30 employees work with the Credit Risk Rating Platform at PostFinance as credit specialists working with business customers. In addition, further staff is employed as software application managers in risk management. Advantages

` Automatic, periodic scoring of business and retail customers

` Use of internal sources of information for account and credit card transactions

` Models for the assessment of default and recovery of credit customers

` Audit-proof historicization of process and resulting data

` Provision of data for the calibration of rating models Author: Peter Schrameyer

www.bosch-si.com/solutions/risk-management/risk-manage-ment-software.html

Case Study

“Bosch Software Innovations has given us super support throughout the project. This has made a very good impression!” Peychyn Lai, Risk Management specialist

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An interview with Dr. Heinz Derenbach, Chairman of the Executive Board of Bosch Software Innovations:

“The aim of our partnership with Vodafone is to fur-ther unlock the potential of the Internet of Things and Services – often referred to as M2M – by combining Bosch’s broad technological expertise with the strength of Vodafone’s international footprint in the area of con-nectivity.

There is a growing demand for networked smart de-vices, and with a strong partner at its side Bosch will be able to create groundbreaking innovations in fields such as electromobility. E-mobility entails a whole new set of mobility behavior. We need to provide the basic services to facilitate the charging and parking of electric cars and further value-added services.

Accordingly, charging stations have to provide completely new services which gas stations traditionally do not pro-vide: reserving a charge spot or parking space via mobile phone, authenticating the driver, monitoring the charging process, and transmitting all the data needed for billing. To do all this, the charging stations contain a

communi-cations unit, which uses a Vodafone SIM card to activate communication and enable these new services.

The SIM card is an important system component in the Internet of Things and Services because it ensures secure, stable, and reliable communication between devices and back-end systems.

Given the combined force of the two partners’ innova-tive passion, we expect to deliver even more innovations with Vodafone in the future. To put it a different way: for 1 and 1 to make more than 2 – that is our goal.

That is what the globally respected Bosch and Vodafone brands stand for. With our technological experience and our expertise in controlling and evaluating information flows, and with our comprehensive domain knowledge and wealth of creative ideas, the two companies togeth-er will be able to provide genuine added value and cre-ate new services in the Internet of Things and Services. This represents both a challenge and an opportunity.”

The interview was conducted by Stefanie Peitzker www.youtube.com/watch?feature=player_ detailpage&v=NJCygNhfsBs

About Bosch Software Innvovations

The technology group Bosch and the communications specialist Vodafone have teamed up as partners to cooperate on the development of a host of innovative software solutions based on machine-to-machine communications (M2M).

Electromobility applications are just one example: here, the focus lies on connecting devices, systems, and participants in order to offer new value-added services.

“It takes two strong partners to provide new business models and services in the Internet of Things and Services.”

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At CeBIT we will be presenting our Software Suite as basis for business models in the Internet of Things and Services. Visitors are invited to dive into the world of IoTS themselves by picking up the tablet and holding it up to the architectural model: houses, office buildings, factories, and wind turbines will come to life and tell their story of how our technology supports every single branch.

Bosch Software Innovations will exhibit at the GARP convention and present its solutions for companies in the banking, financial services and insurance industry. GARP is the annual gathering of leading international risk management unites experts, policy makers and financial risk academics. The speakers will discuss the

most up-to-date information and strategies on under-standing the complexity, interconnectedness and unin-tended consequences of the economic, environmental, geopolitical and technological risks shaping the global financial system.

With the strength of our favorable positioning in the Gartner Magic Quadrant, Bosch Software Innovations will exhibit its solutions for BPM also in 2013 at the Gartner BPM Summits in London and National Harbor. At the premier meeting place for IT and business, we demonstrate how the integration of analytics and social as well as mobile technologies into our software has allowed us to leap into the MQ.

Charging Ahead “Eco, Electric, Efficient” – Driving Sus-tainable Mobility: Bosch Software Innovations will be participating at the E-Mobilia in Kuala Lumpur as a thought leader in different panel discussions about eMobility and share its experiences from projects around the world. E-Mobilia is a platform for regional and international industrial practitioners to meet, ex-change views, discuss trends and leverage from the rapidly evolving Energy Efficient Vehicle market in the region.

www.bosch-si.com/company/news-events/events/events.html

Bosch Software Innovations presents its products and solutions for BPM, BRM and the Internet of Things and Services at numerous events worldwide. We have summarized some of the most important here.

Upcoming Events

Events Forecast

Dates

05-09/03/2013 CeBIT | Hannover

12-13/03/2013 GARP Annual Risk Management Convention | New York 13-14/03/2013 Gartner BPM Summit | London

26-27/03/2013 E-Mobilia | Kuala Lumpur

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Schöneberger Ufer 89-91 10785 Berlin Germany Tel. +49 30 72 61 12 0 Fax +49 30 72 61 12 100 [email protected] www.bosch-si.de 161 N. Clark Street Suite 3550

Chicago, Illinois 60601/USA Tel. +1 312 368-2500 Fax +1 312 268-6286

[email protected] www.bosch-si.com

c/o Robert Bosch (SEA) Pte Ltd

11 Bishan Street 21 Singapore 573943 Tel. +65 6571 2220 Fax +65 6258 4671 [email protected] www.bosch-si.sg

Bosch Software Innovations GmbH, the Bosch Group’s software and systems house, designs, develops, and operates innovative software and system solutions that help our customers around the world both in the traditional enterprise environment and in the Internet of Things and Services. We place particular focus in this field on the topics of mobility, energy and building, manufacturing, and financial services. Whether in its special, targeted BPM+ and IoTS editions or as flexible standalone products, our software suite is the perfect foundation not only for projects relating to the Internet of Things and Services but also for projects in the fields of Business Process Management (BPM) and Business Rules Management (BRM).

With some 550 associates worldwide, Bosch Software Innovations has locations in Germany (Immenstaad, Waiblingen, and Berlin), Singapore, China (Shanghai), Australia (Melbourne), and the United States (Chicago, Palo Alto, and Vienna).

Additional information is available online at www.bosch-si.com

The Bosch Group is a leading global supplier of technology and services, active in the fields of automotive technology, energy and building technology, industrial technology, and consumer goods. According to preliminary figures, more than 306,000 associates generated sales of 52.3 billion euros in 2012. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in some 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent some 4.5 billion euros for research and development in 2012, and applied for over 4,700 patents worldwide. The Bosch Group's products and services are de-signed to fascinate, and to improve the quality of life by providing solutions which are both innovative and beneficial. In this way, the company offers technology worldwide that is "Invented for life".

References

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