Jim Heppelmann
President and Chief Executive Officer at PTC
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June 9, 2020, Online, USA
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Disrupted: Lessons Learned and the Path Forward
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About speaker

Jim Heppelmann
President and Chief Executive Officer at PTC

James (Jim) Heppelmann is the president and chief executive officer (CEO) of PTC, responsible for driving the company’s global business strategy and operations. During Mr. Heppelmann’s leadership tenure, PTC has assembled the industry’s leading industrial innovation platform and field-proven solutions and services that enable companies to design, manufacture, operate, and service things for a smart, connected world. He also serves on PTC’s Board of Directors.

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About the talk

The accelerating pace of digital transformation has forced many companies to "disrupt, or be disrupted", but the recent crisis has taught us all a new set of principles about the role of technology in an era of disruption. Join Jim Heppelmann (@JimHeppelmann), President and CEO, PTC for a visionary presentation that both summarizes the key lessons learned from a decade of disruption as CEO and delivers a clear vision for the technology and business strategies companies must adopt to survive and thrive.

The LiveWorx 2020 Content Archive is now available! Gain access to 9 keynotes and over 120 sessions from 15 different tracks focused on key areas of transformative technology.

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Good morning, good afternoon, and good evening. My name is ondine Winslow. And today I will be your host for the definitive digital transformation event for the Enterprise 20/20. We have over 15,000 attendees from around the world joining. Today's live stream welcome and thank you all so much for being a part of today's event. We really are glad that you can make it before we met and on behalf of the entire life work team. I wanted to take a moment to recognize all of the essential workers. The doctors nurses EMTs police officers firefighters truckers grocery store delivery

drivers and the countless others who have selflessly put themselves on the line to keep us safe and healthy during this unprecedented time. You all are heroes and deserve our deepest gratitude. Thank you. Now throughout the course of the day. You will hear from some remarkable thought leaders at the Forefront of Technology who would share with you they're inside and perspectives of digital transformation in addition beginning today. June 19th, we have over 100 additional sessions of amazing content ready for you to consume at your leisure and are on demand catalog. You should have check it

out. Also keep an eye out for an upcoming email to gain access to a Contin archived for an entire year. So without further Ado, let's jump right into our first session of the day from our presenting sponsor. TTC TTC doesn't just imagine a better world. They help created through a combination of their cat tlm industrial iot and augmented reality Solutions PTC technology helps industrial companies generate value for them self their customers and the world their Innovative CAD Solutions, improve collaboration that efficiency with 3D product design to get products to

Market faster and keep companies one step ahead of their competition there web-based PLM Solutions enable a digital thread of all the parts materials and configuration information required to connect team and bring rape. Products to life ptc's award-winning industrial iot Solutions Harvest data from products in the field and machines in the factory to deliver in size to drive better business outcomes and their market-leading augmented reality Solutions slim the digital and physical world to accelerate learning enhance collaboration and improve worker productivity, especially for those on

the front line this morning ptc's president and CEO will share his perspective on destruction by exploring some key Lessons Learned in this unprecedented time and delving into the technology and business strategy companies must have got to survive and thrive in this new normal. Ladies and gentlemen, it is my pleasure to introduce the president and CEO of PTC Jim heppelmann. Thank you idea I'm happy to be with you all today in the work from home edition of my annual Lifeworks Keno given the dramatic stage setups. The light

works has become known for in recent years. It seems crazy that I'm talking to you from my home office, but the past few months have been crazy across so many different dimensions. None of us has ever confronted a pandemic like the one which we're facing. Now the human to all of this crisis has been terrible in the economic tall is setting up to be equally bad, but the crisis has brought out some of the best enough till we pulled together to collectively reconfigure our daily lives for the greater good we've seen incredible demonstrations of commitment and compassion in our front-line

workers and we've seen incredible demonstrations of innovation and flexibility everywhere around us. The lockdowns and travel bans that are necessary to fight the pandemic have forced us into a massive work-from-home experiment. This experiment has been done at a global scale and with little advance planning and preparation. I know many of you are amazed at how effective work from home has been and we're pleased to see the efficiency Advantage is it Brinks digital has become the Big Hero It's amazing how much you can get done today working virtually without

the dead time of daily commuting and business travel. Everybody I talk to thinks we need to adopt more of this style of working going forward even after the pandemic Fades, but frankly, we all know that digital isn't working equally well for everybody. We definitely want to fix the problematic areas going forward the covid-19 pandemic is really just the latest in a series of global disruptions that impacted all of our lives in the last decade from terrorism to brexit to trade Wars and now covid-19.

Of grit and determination and how companies have accomplished amazing things during a lockdown. Here at PTC. We managed to close the quarter ship to Big software releases and figure out ways to continue most aspects of our Global business without interruption one of our biggest accomplishments one that involved many hundreds of PTC people with our recent release of Creole 707 is one of PVCs most ambitious and Innovative releases ever and it was completed from home in the midst of this disruption journalist Aldean capture that

well when he said Creole 7 is one of the most impressive releases of a 3D design and Engineering system that I've seen in a good few years. 307 is full of amazing new capabilities from generative design multi body design real-time simulation including cfd using ansys technology additive manufacturing Cam and hundreds of enhancements the core functionality throughout. This is our largest release since we introduced Carrillo to you a decade ago, and I'm both impressed by and thankful to the PDC team that adapted in

stride and delivered this result. I mention that while digital work-from-home results were surprisingly positive in many areas. It's clear. They were not consistent across all Industries functions and workers. Thanks for the traction of cloud and say us across most offer sectors a majority of desk or knowledge workers in finance sales marketing and product management departments had a relatively seamless transition to remote work. But all those Engineers who have their software and data parked on a big workstation back at the office aren't so happy. We

want to fix that during this time and oecd study showed that traffic through internet exchange points has increased by up to 60% and Microsoft teams and zoom daily active user count increased exponentially because of remote collaboration, but what about all the people in the real world rather than behind a computer? They're not working from home and digital is not doing much to make their lives better. The vast majority approximately 75% of the global Workforce consists of front-line workers whose job must be done in the world world

because it involves physical work these people simply can't work from home. It's not an option for Frontline workers engaged in manufacturing installation field service in the like the disruption has been much more challenging digital wasn't really a hero for most it never even showed up. Companies have been forced to make the best of it and are celebrating what worked and making plans to fix what didn't as they think about life in The New Normal by observing how PCS customer the round-the-world have reacted to the crisis over the past few

months. I've realized that many are not just surviving but indeed some are thriving I summarize what I see is the four key driving skills of companies who have found ways to embrace agility flexibility and mobility in reaction to the new normal long after we forgotten about coronavirus industrial companies will continue to use these skills to differentiate from their peers. Let's start with mobility and resiliency required for your product development Workforce while cloud and SAS tools have already transformed

CRM Erp and most other enterprise software categories. The product development world has been legging. Our world is one of the few remaining categories of business software that remains largely on the premise. I've heard from numerous cios at Global manufacturers that while the bulk of their knowledge workers transition to work from home seamlessly mini said the organization there engineering organization struggled the big workstations sitting on the desk at the office contain the data and applications and switching to a different home device is not easily

done. Many have been forced to use Virtual desktop infrastructure Which is far from ideal. Put this on the list of things that really needs to change the world of engineering software. Simply has to go to the cloud PC reach this conclusion. Well before this latest crisis and it's why we completed the 470 million dollar acquisition of onshape last November before we heard of coronavirus onshape not only gives PDC and next-generation pure sass cadden PL. I'm offering it gives us the underlying multi-user

multi-tenant saas platform to use across our portfolio weave name that platform Atlas because it will ultimately carry the entire PTC SAS World on his shoulders using Atlas. We expected to deliver SAS versions of all our main software products over time. Pikachu is not alone in our belief that the cloud is the future IDC predicts that by 2022 70% of Manufacturers will use cloud-based Innovation platform and marketplaces for cross-industry and customer co-development IDC. Believe the Tipping Point for product

development has arrived. So do I as covid removed any lingering doubts that I had frankly our timing for the onshape Acquisitions could not have been better Educators have been among the first to recognize the power of Staff tools. Just in the past few months. We've been seeing a rapid transition to saski odd and feel them across universities in high schools who been forced to rethink engineering and stem programs in order to accommodate and mobile and work-from-home student body. Not only can your kid class use on shape from school or from home, but you

can also run it on a MacBook or a Chromebook or your favorite iOS or Android phone or tablet finally plus you can move between these devices easily because the latest version of the day to you were working on is always in the cloud schools and students alike are happy to see the on-campus PC computer room being shut down along with all of the upgrades in administrative work required to keep it operating. Is great the tomorrow's Engineers are adopting on shape, but let me share a few examples of the power of cloud and SAS tools and used by

Enterprises today. The first door is related to win job. Let me remind you that unlike its competitors windshield has always been a Thin Client browser application wind chill has a well-known reputation as being the first fully web-based PLM system, perhaps as a consequence windshield has the largest PLM Cloud footprint in the market because of its Cloud nature windshield help that save the day for customers when their work for us went into lockdown. Let's look at an example. In the current price is an autonomous mobile robot that allows for touchless

interactions and minimize person-to-person contact in distribution centers is critical that with the Amazon effect where consumers now expect next or even same day delivery. This is where greyorange comes in and exciting Warehouse Automation and Robotics provider which relies on windshield Cloud technology for their product lifecycle management needs senior program manager, my aunt Verma noted that during covid-19 lockdown in which the design teams are all working from home windshield enable greyorange to remotely access designs for digital review and

release prophecies product information has been available to everyone for Effective collaboration and contribution. He went on to say that windshields helped us to remain productive during this lockdown situation. Similarly Fresenius one of the world's largest provider of dialysis services and equipment has also been on the front lines of the covid-19 force NES join the dialysis provider Coalition aiming to maintain continuity of care for dialysis patients by creating isolation capacity that can be shared. This eliminates the need for patients to enter a

hospital environment and put themselves at risk. Fresenius as long-term to PTC to manage and improve product quality and to connect a critical medical equipment using iot to maximize up time for their customers because they use Winchell. They didn't have any PLM disruption during the crisis as Bill Deanna cenzo Executive Vice President for manufacturing quality and Supply at Fresenius note Winchell has made the challenges of working remotely much easier from product development activities to sustaining engineering efforts. The windshield platform

has allowed us to continue our work even as so many employees are now collaborating remotely from home instead of our 37th facilities around the world. Windshield has long had a powerful Cloud story, but onshape takes cloud and say us to yet. Another level on shape is a key element of the digital transformation strategy Ed Garrett motion. Garrett is a Global Automotive supplier with a portfolio of turbocharging electric boosting and Automotive software solutions that empower the transportation industry the further Advanced motion,

like most of us prior to the pandemic Garrett's design team normally works in collaborate in a few large offices around the world. However, due to the crisis those offices were closed and the workforce of engineer has suddenly became distributed as it began working from home. Thanks for the use of onshape. You're an engineer as we're able to easily pick up the latest work from any device over they were unable to Garrett's product development process to be highly resilient. From this video showing on shape analytics over time.

You can see the distribution of Garrett's engineering organization as it was before the crisis during the crisis and today at the crisis begins to subside regardless of their location productivity of Garrett's product development organization was unfazed. I trust you'll agree that to embrace a new normal that accommodates a highly distributed mobile Workforce. We're going to need to take this part of the software industry to the cloud. It's a SASS and that's why PVC has taken a leadership position in driving this change. The second

driving skill so important in The New Normal is flexible and Innovative Supply chains by that. I mean the ability for impromptu Partners to easily join forces to blender ideas as they work together to design and Manufacturing new products. This is a powerful capability to have given the level of disruption of typical Supply chains first from trade Wars. And now from the coronavirus pandemic. It represents a very different approach than what is common today. Today's Supply chains have to install and deploy the same version of the same

software tools at each company in order to facilitate exchange of data. This means that upgrades have to be coordinated simultaneously up and down the entire supply chain to keep everybody interoperable asking. A motor supplier how much they like having to maintain specific versions of Siemens NX to work with General Motors while maintaining different specific versions of Catia to work with for it's a real pain. On shapes of very different story. There's no setup or maintenance required you just use it and there's no exchanging of files in the supply chain.

Everybody is always on the latest version in always using the latest data. Let me share a few examples of how I'm shapes SAS technology lubricates supply chain flexibility. The first example is one of impromptu Innovation or flexible engineer when covid-19 hit the need for more ventilators came with it the friend the Francisco gavidia University in El Salvador in collaboration with multiple local companies. Wanted to help they knew that any ventilator would need to be produced with standard

materials that are locally accessible. In March, they started a project called a cat designing an artificial respirator. They quickly realized it on shape was the best way forward saying that on it behaves like Google Docs, but for cat were able to design and build prototypes in a matter of days vs weeks or months, the initial prototype started inside the university facilities and evolved collaboratively is they brought on more industrial Partners. This is the first design concept 2, testing the iterated and change form factors.

Upon obtaining increase support from local industrial Partners the design evolve further with many parts changing from 3D printing to metal Construction. From there the program found pdc's onshape covid-19 response Support Program, which has been providing many similar emergency response projects with free professional level subscription and support to better enable remote collaboration and induration against medical standards. To present to the government. They had attached a C+ at 1 and 2 Patient version and then a name them

pool which means ventilator mechanical pulmonar throughout the process Beyonce platform has been a vital importance to allow collaboration across the supply chain in real time. The intuitive interface of onshape is credited with allowing new collaborators to quickly come up to speed and provide their contributions. There's never been a cad system like on shape and some of you are probably wondering if it's really that easy to which I say try it yourself right now. Just click on the link on your screen or else open a web browser and type in PTC. Com /

respirator in about 15 seconds. You'll find yourself in a professional cat system interacting with the Vampire design. That's it. You're part of the team in production in 15 seconds. Nothing has to be set up an advance and nothing is Left Behind when you're done. I've been in and around cab for more than three decades that I'm still impressed by that. The assembly you're looking at is the actual them poutine design. So you've been invited to join in a read-only mode, but feel free to click on the rotate button to see the model from any angle on click the

rotate button and click the sectioning button to try the section in capabilities unclick sexually mode and click on Bo M2 Explorer the bill of material and then its interaction with the assembly model p o m is there and it's just in the background as you experience on shape. I trust you'll agree. This is an entirely different approach and one that will transform product development. There's nothing else like it out there. Jon hirschtick and John mceleney, both creators and former CEOs of SolidWorks founded on shape with several other colleagues that they worked with for

years. These guys know what they're doing and I'm very pleased to have them on the PDC team. The next examples about flexible production the ability to quickly and efficiently manufacturing new products based on Dynamic demands. Urban Mobility is facing major challenges because our inner cities are suffering from traffic and its emissions and ego has a solution ego is developing battery operated electric cars together with Partners from research industry and urban planning ego has made a very Innovative design that allows them to be profitable at low

price points and relatively low production volumes. But as their Innovation goes further to ramp up Global Production, they plan to implement a franchise model franchises in China and Mexico in around the world will take the design of a vehicle from Eagle localized it to their Market is necessary and produced it. So Eagle is really an intellectual property company rather than a traditional manufacturing company. They need where ways to share IP data with franchises yet. They must protect their precious IP from any party that might pass it on to competitors

Eagle realize that I'm shape might be the perfect answer as a franchisee portal because they can provide franchises with access to data without giving them copies of it. Plus they can collaborate on localization changes and monitor ongoing data access. Here's an example of a typical design collaboration scenario. The design for the ego is done in Creole in Winchell a styling change. The front bumper needs to be shared with the franchise so that they can adjust the surrounding local parts to change parts are published from windshield to the unsaved

portal to allow franchise access. Incidentally. This is done automatically using thing workflow the new BPM workflow engine and thing works the franchise gets a notification from on shape that gives them direct access to the modified model the franchise season on shape to change Incorporated in a separate design Branch. Thanks to an integrated comparison tool. It shows that the fog light in the bumper needs adjustment by the supplier that produces it. So we need to get another party involved. Let's see how I'm shape can support us in this situation. With one Mouse click

the franchise can share the design and their thoughts with a supplier. So jointly they can Define what needs to be done all very intuitively and inside the tool. We have three companies working together in real time and nobody has done any set up because there are no massive file set to download any of these collaborators can be on a phone or a tablet to on shape is the only cat system that has full functionality on mobile devices. When the suppliers implemented the change and released it the activity thread gives Eagle full visibility to what is transpired. Eagles an amazing

story Creole and wind chill and thing works in vuforia now with help from onshape are helping ego to create an amazing automotive company one that got to Market in half the time until Tesla and with production start-up costs that are about 10% of what a traditional OEM would need. Ego is certainly using digital to the fullest advantage. Another example of flexible or impromptu production comes from our partner Rockwell Automation by collaborating with Rockwell. We're finding new opportunities, for example in manufacturing engineering

where we can help factories to leverage a digital twin to reduce risk in downtime related to bringing up new production lines or making line changes and then to accelerate line optimization. So lines can achieve higher performance levels. We've seen we can reduce line commissioning and validation Times by at least 50% and reduce operator training invalidation Times by up to 75% given the amount of capital involved. It's a very strong value proposition. This use case starts as a concurrent engineering problem that involves can

feel them but morphs into a digital twin for manufacturing that uses iot in AR. Usually deploying or modifying a production line involves collaborating with many different partners across geographies to coordinate. All the needed changes Partners can include OEM machine Builders system integrators and component or technology providers. It's necessary to bring their design contributions together to create a design for the whole line traditionally designs are delivered as zip files representing a snapshot in time and using a file sharing solution like

SharePoint or Dropbox, but what if you could gather each party and other data together from around the world in the cloud with everybody collaborating early and often in the design process? In this scenario you're saying right now to engineers in Boston and Tokyo are collaborating in real time incorporating their respective changes in a multi user session. Like you do a Google. It is clear in real time to each engineer what the other is doing. They help the automation Engineers. We can capture all of the critical stop-and-start points in the assembly

without having to go back and make changes or create extra copies of your standard automation designs. Changes can be quickly reincorporated across other assemblies. There's no notion of moving files and waiting for the next update. This allows your team's to leverage the seam agile principles. They get in software development right in their engineering designs. Iran shaped pill m is part of the process, but it's never in the way and it can expand the real-time single source of Truth to the entire supply chain. Now that I machine design is beginning to take shape.

We can start collaborating with the automation engineers in real time as well. Typically automation. Testing can't start until the machine is built which increases risk, but using Rockwell's emulate 3D Factory simulation technology. We can virtually test the functionality of the machine that we catch in the design. This allows the automation Engineers to test an optimized their control code in the digital world versus having to wait until the machine and subsequently. The entire production line is Bill and using this digital twin teams can get a jump on it shaving nose High overall

equipment efficiency or Ocoee goals much sooner pipe reintegrating with iot using thing works. I'd like to thank Rockwell for the traffic partnership this creating so much new value like this example shows for a joint customers. I trust these stories will help you see how important on shape and Atlas will be to the way we think of supply chain collaboration going for it. The third thriving scale necessary to succeed The New Normal is to bring digital to the 75% of workers 2.7 billion of them globally who are part of the Frontline Workforce.

Knowledge workers have Microsoft Office and YouTube and zoom these all work great on computer screens. None of them work at all in the real world. What we need for front-line workers is a way to bring Digital Data into the real world where they work. That's the very definition of augmented reality AR is essentially the front line equivalent of the tools that knowledge workers rely. So heavily on just as Zoom allows us to collaborate with content on the screen vuforia chalk allows us to collaborate with content mapped onto the real world

just as Microsoft Word allows us to publish content on pay-per-view for a a studio publishes content on real-world objects and in real-world places and just as YouTube allows us to share movies that capture how-to information before your expert capture allows us to capture how-to information this map back onto the road. Like a growing number of you I'm a big believer that augmented reality is going to bring massive productivity advantages to those enormous ranks of front-line workers. Let me show you a few great examples where

vuforia AR tools are empowering Frontline productivity. Toyota Motor Company is renowned as one of the world's leading automotive manufacturers as with all of us. It can be difficult for Toyota employees and subcontractors to communicate effectively from a remote distance. For example contractors Carry Out Construction and maintenance of factory assets during plan down time over holidays and weekends if they experienced unexpected or unsafe site conditions at EMC employee who is the expert may not be available to assist them on

site. Like video conferencing vuforia chalk allows expertise to be digitized and shared remotely but unlike video conferencing shock has one foot in the digital world and the other foot in the physical world effectively serving as a bridge between these worlds. TMC uses before you talk to a naval experts to help employees and subcontractors tackle complex or unfamiliar challenges. Since implementing a remote assistance solution with before you chalk Toyota has been able to eliminate for on-site visit per month per section

manager minimizing downtime cost and increasing employee safety and compliance. Back in Europe that UK ventilator challenge was established to solve a very different problem, but they are again proved to be a key part of the solution for front-line workers. A Consortium of UK industrial Technology and Engineering businesses from across the Aerospace automotive and medical sectors came together to jointly produce Medico ventilators for the UK Smiths medical is one of the many companies that stepped up during this crisis and they

participated in the UK Consortium in an effort to increase the production of their top-tier life-saving ventilator the pair of back plus the programs on target to increase production of these portable and lightweight ventilators by roughly two orders of magnitude to 10,000 units per month. PDC provided vuforia software to help Smith scale knowledge transfer between Frontline workers using smartphones tablets computers in the Microsoft hololens to this used you for your expert capture to capture its Frontline manufacturing

process knowledge including procedures for ventilator production and deliver. Those guided step-by-step instructions to production workers at GKN who's in automotive and Aerospace manufacturer by capturing and distributing Smith's expert knowledge. The company's been able to digitally guide workers from companies having no prior medical device expertise in the making of the very same ventilators. Izzy's example show the opportunity that a r represent In The New Normal is profound PDC has worked hard and

invested aggressively to ensure that our vuforia suite is the best in class solution for industrial companies who want to bring digital transformation to their front-line Workforce. The 4th driving skill necessary to thrive in The New Normal is remote monitoring of products in factories, which allow companies to continue operation despite work-from-home orders travel bans quarantine areas and limited staff. Iot enable remote monitoring and remote service improves up time in critical environments it saves massive

technician labor and travel costs and it provides new ways to transform the relationship with your customers. Another leader in medical equipment is Electa a Swedish company that provides radiation therapy radiosurgery and clinical management for the treatment of cancer and brain disorders. Alexis customers are private and public hospitals. Both of them need to ensure that the equipment needed to care for their patients is available. When required in order to deliver the best patient care possible remote connectivity is the answer but getting hospitals do an evil

conductivity was initially very challenging until they saw the compelling benefits that came from it the first and most important metric intellectus customers is the avoidance of clinical downtime, which is the amount of time that they're not able to provide care for their patients unexpected downtime creates health risks on one hand and scheduling Nightmares on the other. One specific example that contributes significantly to the amount of down down time is part change with previously created an average of 60 hours of downtime, but now with better plan

things to iot in AI that can be completed in an average of 15 hours. Plus, they're kind of Kimmy solution as an able to elekta to remotely resolved about 50% of service issues without a service technician needing to visit. Of course in normal time a technician and visit technician visit involves costed delay, but during the covid-19 says was sometimes not even possible. So thanks to iot Services far more effective. Spell let's switch gears and take that same concept of remote conductivity of medical equipment in hospitals

to manufacturing equipment and assets on the factory floor. I'd like to talk about autoliv who's the worldwide leader in Automotive Safety supplying all major car manufacturers globally autoliv 65,000 employees operate in 27 countries and each year there airbags seat belts and steering wheels save more than 30,000 lives in prevent 10 times as many injuries PDC and autoliv created in iot solution to enable real-time detection out of control variation in process. He's

related to product quality and reliability. The solution gathers data from many sources and it uses configurable statistical calculations and rules to flag variants in process controls this iot in a eye solution eliminate paper-based manual processes bringing real-time visibility into operations through improvements in Ocoee and enables the implementation of analytics base workforce planning. The solution uses a hybrid deployment model with on-premise and Linux of machine and cite specific data and uses Cloud for cross-site

analytics and visibility. The result is improved oee and on-time delivery reduced cost of scrap and rework while identifying indicators of quality risk and logging details contextual data around rule violations for subsequent analysis. I trust you and see that high OG two will play a profound role in The New Normal that lies ahead. If you'd like to hear more about inspiring stories about iot in situations like these please join Rockwell's chairman and CEO Blakemore at later today as he talks about Rockwell's

vision for expanding human possibility talks about the factory talk Innovations. Sweet and the PDC partnership Blake will share insights on rosh who's also using iot to Monitor and remotely service Diagnostics testing equipment used in Laboratories worldwide. We want to thank Rocco by the way for their support of hurts a lot worse. As you can see these four skills have enabled industrial companies to not only survive but to thrive thanks to increased levels of agility flexibility and Mobility across their business and work for us

when the pandemic began to disrupt business we knew this was a time to lean into our customers the PBC executive team brainstormed. What can we do to help our customers get through this week and we agreed that we should show ultimate licensing flexibilities for companies who are trying to get their workers back online from home. We agreed that we'd offer White Glove service to so many of our health Tech customers on the front lines of this pandemic. We decided to make our vuforia chalk offering free during the crisis and we've now

extended that program through August the uptake on free chart was amazing and more than 10,000 industrial companies. Try using a r for the first time to enable remote support of their front-line workers the usage Spike with chalk Zoomer teams. We also provided onshape free for schools and Educators to enable the future generation of engineer has to continue to develop skills, even though their schools are closed. The adoption of on tape in education has been truly amazing and we estimated on shape has gained 5 to 10

percentage points of educational market share in the past 3 months along. Weather Corona coronavirus crisis is a terrible health and economic problem. It's definitely accelerating the movement toward digital Technologies, like a coyote and a are in SAS the type of technologies that PPC has been prioritizing and then make our company. So unique plus it's graded new opportunity to do our customers to reimagine our customer success programs and then work more collaboratively with customers to identify and solve the

biggest challenges. Unfortunately, the bad guys don't like to let a crisis go to waste either and as many of you have seen the number of malware and phishing attacks has increased dramatically. In particular nation-state hackers are going after organizations such as Healthcare institutions and research facilities who are actually working on treatments for covid-19. This is a good reminder for all of us that cyber Safety and Security are everyone's responsibility. We at PTC are committed to doing our part and to helping you understand and do

yours know before I close. I want to share with you some of our latest thinking regarding our vision and our path forward. Three of shared a dozen examples of how our customers and partners have leverage digital technology like SAS to enable resiliency and Mobility across your knowledge workers and flexibility across design supply chain and Manufacturing. We saw how AR is being used to enable front-line workers to collaborate in new ways to improve their productivity and we saw how iot combined with a i and Abel's factories in product

leads to achieve double-digit improvements in their operations at time saving both money and lives now. I want to close with our vision for how all of these Technologies iot come together with our heritage in 3D. Our vision is called spatial computing. Spatial Computing is the ultimate example of physical and digital convergence. And once again PTC is out front defining division for how industrial companies can capitalize on this amazing emerging technology. It's more than just a vision

because our recent release of euphoria special tool box represents a big down payment. Let me start with some definitions. You can probably agree did Microsoft Word is a way to virtualize documents and zoom is a way to fertilize knowledge workers. Then our way to virtualize products is a way to virtualize every unique instance of that product including the ability to monitor control and optimize that product incidents throughout its full lifecycle. AR is a way to virtualize a front line worker including the ability

to monitor control and optimize their work. I like to say that AR is iot for people. How many of you have seen how depth sensing cameras can capture a space such as you might experience in an online virtual tour of a homeless for sale the same technology works great to capture 3D models of factories and plants. Spatial Computing allows us to combine it in a Grade what we know from iot and AR and Chad and PLM together with what cameras see happening in that same workspace so that we can create an

amazingly powerful 3D digital twin didn't understand all the dimensions of people product process and place and we can use vr2go. They're virtually any time we want. Of course, we can apply a i with n i o t and within a r and we can apply AR across or AI across the combined Dimensions spatial Computing is the ultimate way to Monitor and optimize entire work sites, including coordinating the work of every asset and every worker involved in the process.

Let me show you some simple examples using before use facial tool box to help bring this big idea to life. This video which was created by Anna one of our Engineers shows the use of euphoria special tool box as a way for her to program a robot in the space of her apartment before his facial tool box understands the space of the apartment and is talking to Anna with a r and to the robot with iot being human and I must get data through her senses soon. As I like to say a r converts Bits & bytes to sounds and sights

so that Anna can understand and process the data in her human way, but a robot this case of Lego robot can neither see nor hear but we can talk to his wirelessly through an iot connection using a protocol essentially made of X Y and Z coordinates Vuforia special tool box is the bridge between these two worlds of man and machine and the space that they share. After mapping out the desire path on the floor and a place is a virtual on off switch in space and connected to the start point on the path when she hits the on button the

robot precedes to the start point and follows the path that and a requested. This is a great example of reducing cognitive distance as compared to the traditional programming model Anna and the robot both have a shared understanding of the physical space and what is supposed to happen there. Naturally the same concept applies to programming and Industrial robot in three dimensions. No, spatial Computing introduces the topic of spatial analytics in addition to getting data from machines and from workers cameras using computer vision can

watch him perform analytics against what they see is happening in this work-from-home example that uses a typical smartphone are vuforia computer vision engine can see and track the box of sugar in the box of tomato juice in the upper left before his facial toolbox can show you where the sugar is and how to navigate there in the upper, right? It can show you where the sugar has been because it's moving around in the lower, right? It can show you the velocity of the sugar box as it moves around and in the lower left, it can show you how close the tomato juice is to the sugar at

any point in time sort of a social distancing concept, I guess. No, let's dive a bit deeper to understand how industrial companies can use the spatial Computing techniques to create strong business value on the 17th floor of our Seaport headquarters in Boston. It's a physical room, but using depth-sensing cameras for Microsoft. This room is digitized many times per second, including all the machines and people that are present there because it's a 3D model we can go into god mode and use this digitized version of the space as

a real-time virtual reality model that allows us to navigate and observe and monitor and optimize the work of both man and machine. Using spatial analytics, we can analyze the entire process understand the performance for each work step in analyze the way that the space is utilized. How does the worker and the agv move in space and where and why do they seem to stop and linger we can quickly get to a timeline in a process waterfall showing work time is spent at each step in the process with this knowledge. We can optimize the word process

and if necessary rearrange the physical space we can now think about the performance of a process what it means on a per step basis and average basis or an ideal basis. And with this day that we can also assess where performance bottlenecks are coming from. For example, whether it's starving for material cueing or wasting time in motion. With a powerful Insight you can derive from spatial Computing. There's a tremendous opportunity to improve performance across all the dimensions of assets workers process in space spatial Computing

can be an interface for machines in humans and that changes our perspective on what's possible there. No need to go to the work site to interact with workers and machines. Now, you can walk the floors from your home office. These examples may look like sci-fi, but they're based on vuforia spatial tool box and open sores offering we've created to allow developers innovators and researchers to begin experimenting with spatial Computing within their own companies. We chose the open-source model because this is clearly a field with nearly unlimited possibilities in a

situation where a whole ecosystem of innovation will be needed to fully capture the possibilities before you special tool box is available on our website today, and we believe this incredible Innovation represents the first spatial Computing offering available in the industrial Market. Let me wrap up when uncertainty and disruption becomes the expectation then accelerating digital transformation is the ideal response. The level of digital innovation has never been faster than it is right now, and somebody will have noted that

five years of it and Innovation that happened in the past five months simply because of necessity, but now it's time to take stock of what's working. And what's not in to think Beyond this essity to business Advantage going forward, and without I want to thank you for joining me from my home office in Boston. I hope these ideas help you and your company to make it through these challenging times and then to be better position to thrive in The New Normal that is to follow. Thanks again, and please enjoy the rest of virtual liveworx 2020. Thank you, Jim.

Session of the day coming up next to the top of the hour. We will take a deeper dive into digital transformation and a technology and support you need to succeed. Break.

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