THE DIGITAL REINVENTION OF INDUSTRY. Ben Salama Industry 4.0 Summit 28 February, 2018

Size: px
Start display at page:

Download "THE DIGITAL REINVENTION OF INDUSTRY. Ben Salama Industry 4.0 Summit 28 February, 2018"

Transcription

1 THE DIGITAL REINVENTION OF INDUSTRY Ben Salama Industry 4.0 Summit 28 February, 2018

2 INDUSTRIAL LEADERS ARE BEING CHALLENGED CEO Our core business is no longer delivering the expected growth, others are capitalising on our products R&D EXECUTIVE VICE PRESIDENT We re not getting the right product out on time MANUFACTURING VICE PRESIDENT Our supplier network has grown, but we see our product quality has decreased FIELD SERVICE DIRECTOR Our warranty costs are increasing and we don t have insight into the root cause CIO We need to move from prototype to production faster 2

3 SPEED OF MARKETS MAKEUP OF A PRODUCT WORKFORCE OF THE FUTURE NEW ECONOMY AND THE LANDSCAPE IS CHANGING FOR INDUSTRIAL 3

4 DIGITALISATION IS ACCELERATING THE SHIFT IN THE INDUSTRY EXPONENTIALLY Mainframe Big data, analytics, visualization Client-server & PCs IoT & smart machines Public Cloud Mainstream Web 1.0 ecommerce Artificial intelligence 2010: Sales of PC Peak Web 2.0, cloud, mobile Quantum computing 1994: Amazon 2014, IDC: 4.4 Zettabytes of Data A.I 1991: Public Internet 2008: iphone Quantum 2006: AWS 1990: System/ : Web : Self Driving Cars 1950: Turing Test 1964: System/360 Server/Host 1977: PC 1999: Saleforce.com 1972: SAP 1969: ARPANET 1997: Big Data 1999: IoT, M2M 2007: IBM Deep Blue 2016: Pokemon Go Today 4

5 SUBSTANTIAL IMPROVEMENTS CAN BE ACHIEVED THROUGHOUT THE PRODUCT JOURNEY. 5

6 OUR RESEARCH SHOWS STEADILY RISING IN IMPORTANCE TO EXECUTIVES IN INDUSTRY OUR SURVEY OF NEARLY 1,000 C-SUITE EXECUTIVES IN INDUSTRY SHED LIGHT ON THEIR AMBITIONS... 99% cited leveraging digital to transform core businesses while growing new ones as a top goal. 64% agree that failure to leverage the components of digital value will cause them to struggle for survival. 92% want to deliver new experiences with smart, connected products. Source: Accenture Industry X.0 CAL Toolkit global survey in Products, Resources and High Tech industries 6

7 BUT JUST A FEW COMPANIES ARE LEADING IN THE NEW 44% COMPANIES THAT DRIVE NEW GROWTH 34% COMPANIES THAT TRANSFORM THE CORE ONLY 13% OF COMPANIES SUCCESSFULLY LEAD IN THE NEW SIMULTANEOUSLY DRIVING BOTH OPERATIONAL EFFICIENCY AND NEW BUSINESS GROWTH. 13% COMPANIES THAT DO BOTH 7

8 WE ARE ENTERING AN INDUSTRY X.0 ERA, WHICH HAS EVOLVED OVER A PERIOD OF TIME, CONVERGING INFORMATION AND OPERATIONAL TECHNOLOGY TODAY & TOMORROW INDUSTRY X.0 18TH CENTURY INDUSTRY 1.0 Mechanical production powered by water and steam 20TH CENTURY INDUSTRY 2.0 Mass production based on the division of labour and powered by electrical energy 1970 RECENT INDUSTRY 3.0 Electronics and IT for automation of production and front/middle/ back office TODAY INDUSTRY 4.0 Cyber physical production systems 8

9 WHAT IS INDUSTRY X.0? INNOVATION & GROWTH INNOVATION HUMAN MACHINE INTERFACE & EXPERIENCE NEW SERVICES & EXPERIENCES R&D & Engineering Solutions TRANSFORMATION OF CORE SMART PRODUCTS & EMBEDDED SOLUTIONS Manufacturing & Production Solutions Support & Service Solutions + ACCELERATION & EFFICIENCY BUSINESS PROCESS SERVICES WORKFORCE & TALENT PLATFORMS, ANALYTICS AND SERVICES CYBERSECURITY DIGITAL ENABLERS SMART CONNECTED LIVING LEARNING 9

10 MADE SMARTER WAS A SECTOR-LED INITIATIVE TO SUPPORT THE UK INDUSTRIAL STRATEGY UK GOVERNMENT INDUSTRIAL STRATEGY GREEN PAPER JANUARY 2017 INDUSTRY SUPPORT FOR MADE SMARTER 10

11 1 254BN IS AT STAKE ACROSS SEVEN INDUSTRIES FROM THE ADOPTION OF DIGITAL TECH Construction ABSOLUTE ( BN) RELATIVE (%) bn Food & drink bn Pharmaceuticals bn Aerospace bn Energy utilities bn Water bn Oil & gas bn New revenue streams Cost savings 11

12 Limited Basic Emerging Advanced DIGITAL FACTORY WHERE TO BEGIN? Introduction Automated Machines without Data Logging Machines with No/Low Automation Static, Manual Local Machinespecific Data Store Most factory processes are managed with IT Applications Not all factory processes are Manual Data managed with Collection IT applications No Data Collection Data Lake for Analytics Manual, Variant Siloed Data Storage No Security Policy Operational Technology Process data is integrated into OS for Digital Factory Dashboard and Reporting (Manual) Not enabled by Technology Manual Process Information Technology Digital/Mobile Metrics Tracking Some processes have data for KPIs Edge and Cloud Computing for decision-making Access to factory-level Data (Manual) No Security Audits Data and Analytics Data Lake and Simple Analytics Most processes have rich-data for KPIs Leading Intelligent Process Control and Predictive Analytics Real-time Data Streaming, Analytics and Model Management Access to factory-level Digital Dashboards and mobile technologies for alerting Trialing technologies like Cobots, AGV and 3D printing Process Sensors for Real-time Automated Process Data Production Line integrated with SCADA, MES & ERP for Closed Loop Manufacturing Edge Intelligence Annual Security Audits End-to-End Integrated Platform for Closed Loop Manufacturing Comprehensive realtime view of all processes Workforce Access to on demand information via mobile technologies Ecosystem Integration Continuous Improvement using analytics and machine learning Implementing technologies like Cobots, AGV and 3D printing. Trial Artificial Reality capability Factory-level IT/OT Security Policy Digitally-enabled Worker (AR, Alerts, Mobile) Automation Digital Twin Cobots, AGV, AR and 3D printing technologies become mainstream. Security Liquid Workforce Current State Best in Class Global Security Policy Target Future State Selforganising, Dynamic, Demand Driven Adopting newer technologies like Drones Continuous Improvement Industry

13 SCHNEIDER ELECTRIC DIGITAL SERVICES FACTORY Accenture has helped Schneider Electric to develop this virtual factory to enable SE to rapidly build and scale new offerings in areas such as predictive maintenance, asset monitoring and energy optimisation. Also, to assist Schneider commercialise its as-a-service offerings and innovations, Accenture is working with Schneider on customer-centric solution development, business model development and analytics. Copyright 2017 Accenture. All rights reserved. 13

14 RIO TINTO MINE OF THE FUTURE Rio Tinto wants to develop innovative, adaptable and costeffective world-class information systems and technology delivery models. Accenture is helping Rio Tinto connect its infrastructure, software applications, data and operations capabilities making it more agile and accessible to its ecosystem of suppliers and customers. Also, to help Rio Tinto s workforce more productive and experimental, Accenture is working closely with Rio Tinto to identify technology applications that can create a more safer and innovative workplace. Copyright 2017 Accenture. All rights reserved. 14

15 THANK YOU! Ben Salama Managing Director Industry X.0 Lead Accenture 15

16 ABOUT ACCENTURE Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions underpinned by the world s largest delivery network Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 425,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at 16