1. The Internet of Things, Industry 4.0 and Automation Solutions
Glenn Graney, QAD
Astrid Rommens, QAD
May 9, 2017

2. The Internet of Things, Industry 4.0 and Automation Solutions
Safe Harbor
This presentation includes forward-looking statements about QAD and its business. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in QAD’s SEC filings, including the company's latest Annual Report on Form 10-K dated April 7, 2017 and in particular the section titled “Risk Factors” therein and other periodic reports the company files with the Securities and Exchange Commission thereafter. This presentation contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. This presentation identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company’s business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies. The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. QAD undertakes no obligation to update forward-looking statements.

3. Introduction Glenn Graney Senior Manager, Industrial and High Tech QAD
The Internet of Things, Industry 4.0 and Automation Solutions
Introduction
Glenn Graney Senior Manager, Industrial and High Tech QAD
Astrid Rommens Director, QAD Automation Solutions QAD

4. Agenda Industry 4.0 is All the Buzz Technology Foundations
The Internet of Things, Industry 4.0 and Automation Solutions
Agenda
Industry 4.0 is All the Buzz
Technology Foundations
Industry 4.0 Rationalization
QAD Automation Solutions and Operational Optimization
Pervasive connectivity
Smart sensors / enabled data sources
Data storage and advanced analytics
Accelerated computing orientations
Questions for Sure – Answers are Less Certain

5. Industry 4.0 – More Than Just a Number
The Internet of Things, Industry 4.0 and Automation Solutions
Industry 4.0 – More Than Just a Number
1st
Mechanization,
Water Power,
Steam Power
2nd
Mass Production,
Assembly Line,
Electricity
3rd
Computer and
Automation
4th
Cyber Physical Systems

6. Terminology Around the Globe
The Internet of Things, Industry 4.0 and Automation Solutions
Terminology Around the Globe
Industry 4.0
Smart Manufacturing
Made in China 2025

7. The Internet of Things, Industry 4.0 and Automation Solutions
Giants Are Coming
Pervasive connectivity
“If I have seen further than others it is by standing upon the shoulders of giants.”
-- Sir Isaac Newton
Smart sensors / enabled data sources
Data storage and advanced analytics
Accelerated computing
orientations

8. How are Enablers being Translated?
The Internet of Things, Industry 4.0 and Automation Solutions
How are Enablers being Translated?
Pervasive connectivity
Internet of Things (IoT)
Industrial Internet of Things (IIoT)
Big Data / Advanced Analytics
Smart sensors / enabled data sources
Data storage and advanced analytics
Accelerated computing
orientations

9. Industry 4.0 – Cyber Physical Systems and IoT
The Internet of Things, Industry 4.0 and Automation Solutions
Industry 4.0 – Cyber Physical Systems and IoT
IoT processes within the four walls of manufacturing
Industry 4.0 CPS and IoT
IoT embedded in product

10. Annual Economic Impact of IoT is $3.7 Trillion
The Internet of Things, Industry 4.0 and Automation Solutions
Annual Economic Impact of IoT is $3.7 Trillion
20-50% cost reduction
10-40% cost savings
5-12.5% cost reduction
Source: McKinsey & Company

11. Where Can You Purchase Industry 4.0?
The Internet of Things, Industry 4.0 and Automation Solutions
Where Can You Purchase Industry 4.0?
Connectivity
Cisco, Dell Boomi, OPC, Tridium, etc.
Smart devices
ThingWorx, Siemens, Rockwell, OEMs
Big data / analytics
SAS, GE Predix, PI, Oracle, SAP, QAD, etc.
Computing orientations
Microsoft, IBM, Hadoop, SAP, etc.
Smart Manufacturing
/ Industry 4.0

12. QAD Industry 4.0 Enablers Connectivity Smart devices
The Internet of Things, Industry 4.0 and Automation Solutions
QAD Industry 4.0 Enablers
Industry 4.0
Connectivity
Interoperability, QAD Automation Solutions, Channel Islands, QAD Enterprise Platform
Smart devices
QAD Automation Solutions: Scale integration, DC Engine, LPS Engine, QAD QMS
Big data / analytics
QAD end-to-end offering, QAD BI, QAD QMS, QAD Enterprise Platform
Computing orientations
QAD Enterprise Platform, QAD Cloud ERP, QAD Automation Solutions

13. QAD Automation Solutions and Operational Optimization
The Internet of Things, Industry 4.0 and Automation Solutions
QAD Automation Solutions and Operational Optimization

14. Industry 4.0 Enablers and QAD Automation Solutions (AS)
The Internet of Things, Industry 4.0 and Automation Solutions
Industry 4.0 Enablers and QAD Automation Solutions (AS)
Pervasive connectivity
Internet of Things (IoT)
Industrial Internet of Things (IIoT)
Big Data / Advanced Analytics
Smart sensors / enabled data sources
Data storage and advanced analytics
Accelerated computing
orientations

15. Pervasive Connectivity
The Internet of Things, Industry 4.0 and Automation Solutions
Pervasive connectivity
Pervasive Connectivity
MES Integration
AS Extensions
AS and APIs

16. Example: AS Extensions – Scale Integration
The Internet of Things, Industry 4.0 and Automation Solutions
Example: AS Extensions – Scale Integration
Challenge
Manufactured plastic rolls can vary in weight.
Solution
Weigh each roll and record against item for inventory / backflush.
Outcome
Improved costing, inventory accuracy and fulfillment to order specifications.
3.1
2.9
3.0
3.2

17. Smart Sensors/Enabled Data Sources
The Internet of Things, Industry 4.0 and Automation Solutions
Smart sensors / enabled data sources
Smart Sensors/Enabled Data Sources
Purpose-built Access
Device Support Data Structures
Cognitive Context
Directed Intelligent Action
Adaptability
Wizard-driven

18. High Level Architecture Data Collection Engine
The Internet of Things, Industry 4.0 and Automation Solutions
High Level Architecture Data Collection Engine
Inline client side processing
DATABASE
Custom 1
QAD EE std
Validations/ functions / data retrieval
Transaction Processing
Error / ANTI-LOCKING MECHANISM
CALL QAD BUSINESS LOGIC
QAD EE Business Logic
(SIAPI) 2
*Additional Post processing
DATA COLLECTION
Framework
LABEL PRINTING SERVICE 3 18

19. Example: Adaptability – Data Collection Engine
The Internet of Things, Industry 4.0 and Automation Solutions
Example: Adaptability – Data Collection Engine
Fully Interface Configurable

20. Example: Adaptability – Data Collection Engine
The Internet of Things, Industry 4.0 and Automation Solutions
Example: Adaptability – Data Collection Engine
Transaction 1:
Pack Transfer
Transaction 2:
Pack Decommission
Linked Transactions:
Multiple steps in .NET, seamlessly combined inside one DC transaction
Single Screen in DC

21. High Level Architecture Label Printing Engine
The Internet of Things, Industry 4.0 and Automation Solutions
High Level Architecture Label Printing Engine
Complete Set of Resources
Label Template
Data Extraction
Dataset Definition
Basic Label Setup

22. Example: Context / Direct Intelligent Action Label Format and Routing
The Internet of Things, Industry 4.0 and Automation Solutions
Example: Context / Direct Intelligent Action Label Format and Routing
10-100
10-200
GENERIC LEVEL
10-300
10-400
10-100
Exception #1
10-200
10-200
Exception #2 22

23. Data Storage and Advanced Analytics
The Internet of Things, Industry 4.0 and Automation Solutions
Data storage and advanced analytics
Data Storage and Advanced Analytics
Audit Trail
Trends
Correlation
Integration Text, Images

24. Example: Image Remanufacturing Receipt Case Study
The Internet of Things, Industry 4.0 and Automation Solutions
Example: Image Remanufacturing Receipt Case Study
Challenge
Customer misidentified items returned.
Solution
Scan a bar code on the returned item to bring up a picture of the part, compare the picture to the returned item.
Outcome
Greater accuracy at receiving, reduced remanufacturing cycle times. PO
Receipt X

25. Accelerated Computing Orientations
The Internet of Things, Industry 4.0 and Automation Solutions
Accelerated computing
orientations
Accelerated Computing Orientations
Flexible Architecture
No Disruption
Configurable

26. Example: Flexible Architecture / No Disruption AS Production Reporting
The Internet of Things, Industry 4.0 and Automation Solutions
Example: Flexible Architecture / No Disruption AS Production Reporting
QAD ERP
(Settings and Data Sent to Local DB)
QAD Events Database
Sync
Ack
Local Database
(Settings, Download, Off-line Collect)
SIAPI
Device
Local
Cloud
Server
Settings Download
Other Applications

27. Example: Flexible Architecture / No Disruption AS Production Reporting
The Internet of Things, Industry 4.0 and Automation Solutions
Example: Flexible Architecture / No Disruption AS Production Reporting

28. Smart Manufacturing / Industry 4.0
The Internet of Things, Industry 4.0 and Automation Solutions
Smart Manufacturing / Industry 4.0
QAD Automation Solutions is a critical element
in QAD’s ability to enable Industry 4.0
Business Services
API
QAD Automation Solutions
Process Management
Logic
Storage
Analytics and Data
Finance
Manufacturing
Supply Chain
Customer
Base

29. Summary: Industry 4.0 via QAD
The Internet of Things, Industry 4.0 and Automation Solutions
Summary: Industry 4.0 via QAD
Tighter connection to point of knowledge
Uniform real-time status view
Increased response capability
Adaptive planning and scheduling
Shared organizational insights
Increased operational collaboration
Foundation for continuous improvement
QAD Enterprise Platform
Extensibility and interoperability
Atomic migration paths

30. Questions and Answers Glenn Graney gfg@qad.com
The Internet of Things, Industry 4.0 and Automation Solutions
Questions and Answers
Glenn Graney
Astrid Rommens

31. The Internet of Things, Industry 4.0 and Automation Solutions
Highlighted Sessions
Vit-Best: Continuous Improvement with QAD Automation Solution
Michael Ochi, QAD
Scott Blaska, Kingdomway
Tuesday, May 4:15 pm
Ambassador 3
Supply Chain Futures
Dr. Larry Lapide, Research Affiliate, MIT-CTL
Lecturer, University of Massachusetts Boston
11:00 am
Renaissance Ballroom
How to Convert an Acquired Plant with Extensive Shop Floor Integration
Helmut Oehring, CIO, CoorsTek
Wednesday, May 4:15 pm
Ambassador 1

32. Highlighted Sessions Dude – Save Me Time!
The Internet of Things, Industry 4.0 and Automation Solutions
Highlighted Sessions
Dude – Save Me Time!
Sylvia McFadden and Joan Profetta
Harris Corporation
Thursday, May 9:45 am
Ambassador 1

33. The Internet of Things, Industry 4.0 and Automation Solutions
©QAD Inc. 2017