Industry In Transition: Realizing the Digital Enterprise

Transcription

1 Industry In Transition: Realizing the Digital Enterprise Prepared for the ARC Industry Forum, Japan 11 July, 2017 Tokyo, Japan Harry Forbes Research Director ARC Advisory Group

2 ARC Advisory Group Digitization Strategy Model Six Dimensions of Digitization VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 2

3 Trends Analytics and Machine Learning everywhere Worker displacement on the horizon Platform vs. Platform Ecosystem for apps Open Source, Open Systems Platforms/Apps level Automation level Edge and Fog Smart Products and Services Outcomes Smart Factories, Plants, Operations Asset Performance Management Augmented reality and voice interface Smart Environments VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 3

4 Digital Enterprise: Two Distinct Industrial Opportunities Digital Industrial Operations Digital Products and Services Optimize Maintenance Predictive Maintenance Improve Asset Uptime (APM) Share Machine Health Data Optimize Production Coordinate with Maintenance Improve responsiveness and flexibility Risk reduction & Compliance Connected machines, workers, tools, supply chain, components, etc. Build Smart, Connected Products Sensors, data Embedded intelligence, communications Local apps and analytics Operating environment data Provide Aftermarket Services Remote Monitoring & Diagnostics Predictive Maintenance Enhanced Services/ Product as a Service SLA VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 4

5 What is a Digital Enterprise? Characteristics of a Digital Enterprise Information-driven Leverage data, advanced analytics, and modern platforms throughout the enterprise Close to customer Solve the customers problems through new services Smart production systems Highly connected, smart operations through technology; advanced APM Connected ecosystem Dynamic, real-time information throughout the value chain; adaptive business processes Core and contract Optimize around core strategic capabilities, outsource the rest Smart Products, Smart Environments Data rich, remote monitoring, as-a-service enabled, connected, software defined, etc. Service savvy Services as or more important than products; connected business models VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 5

6 Achieving Digital Transformation is Critical to Success In your opinion, how important is achieving a digital transformation to your company's future success? (Chart reflects those answering Important or Very Important ) Source: ARC Digital Transformation Survey, Q VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 6

7 Business Transformation Opportunities What are the biggest potential IIoT business improvement areas for your organization? Source: ARC Digital Transformation Survey, Q VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 7

8 Digital Enterprise by Industry Key Focus Areas in Selected Industries Chemicals Modern platforms New services for customers Ecosystem processes APM Connected assets Analytics for performance Asset health AR, Voice, etc Etc. Note: Cybersecurity is also a key requirement across all sectors Oil & Gas Upstream Smart devices Analytics for optimization Predictive maintenance Wearables Asset tracking SC optimize Etc. Midstream APM Analytics for performance Modern platforms Asset health Connected assets AR, Voice, etc Etc. Auto Product/Service Connected products Autonomous capable Voice, mobile Infotainment Infrastructure aware S/W defined As-a-Service Production Modern Platform Connected assets Analytics for performance Asset health AR, Voice, etc Etc. OEM Product/Service Connected products Data rich Autonomous capable S/W defined As-a-Service Production Modern Platform Connected assets Analytics for performance Design for IIoT Asset health AR, Voice, etc Additive Mfg Etc. Utilities Cybersecurity Distributed energy, storage Regulatory compliance Utility-scale renewables Asset health & APM AMI & grid analytics Grid modernization Operational process efficiency Network model visibility Customer engagement Ind l Machines Product/Service Connected products Data rich Ecosystem Friendly Autonomous capable S/W defined As-a-Service Production Modern Platform Connected assets Analytics for performance Design for IIoT Asset health AR, Voice, etc Additive Mfg VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 8

9 What Platforms Do You Need for Your Digital Enterprise? Analytics Platforms Cloud Application Platform Compute Platform Device Connectivity Platform Network Communications Platform Embedded Compute/Comms Platform Mobile Device Platform VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 9

10 Example: ExxonMobil Open Process Automation Project Scope ExxonMobil Need: Replace LARGE ExxonMobil installed base of DCS Want commercial products in year 2021 Lower automation system replacement costs ExxonMobil Objectives: Go beyond present DCS replacement process Move to smaller modularity system Standards basis enables multiple suppliers New technical and business models Never need to rip and replace the system again VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 10

11 Example: Technology Program - Open Process Automation Forum 58 members 11 end user companies Aramco Services, BASF, BP, Chevron, Dow, ExxonMobil, Koch, Merck, Praxair, Shell Seeking additional end user members 47 supplier companies Includes all major DCS suppliers Mission is: Define architecture Create specifications Develop business guidance Forum Co-Chairs function as project managers VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 11

12 Example: ExxonMobil - Open Process Automation System Architecture VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 12

13 Example: National Programs - Industrie 4.0 National manufacturing competitiveness programs have begun in several countries: Germany, USA, Japan, China, South Korea German initiative perhaps most influential Stated objectives: Maintain manufacturing advantages For high value-added manufacturing Promote digital structural change Provide a consistent digitalization framework Engage industry, labor, research, government Note that industrial automation is a critical component of this vision VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 13

14 Example: Industry Programs NAMUR NOA NAMUR (namur.net) an end user group 145 companies, mainly German chemicals Need to address Industrie 4.0 For process automation rather than factory Many NAMUR members have modern DCS Very unlike ExxonMobil Plan is to enhance existing systems Add to existing structures Additions follow secure by design principle Simplify integration/reduce costs No risk to availability and safety of current systems VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 14

15 How to Become a Digital Enterprise Stay Abreast of Emerging Technologies and Trends Today s rapid pace of development will only accelerate! Assess Your Current State Identify Target Areas to Focus On As appropriate for your industry and situation Identify Potential Technologies and Platforms Design New Business Processes Create Stage Gate Project Plan Select Technology and Implementation Partners Plan to Manage Change Execute Project, Capture Learnings Repeat Pick focus areas appropriate for your situation VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 15

16 Questions?

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