AUGUST 2017 RODRIGO ANDAI VP ABB ENTERPRISE SOFTWARE. Writing the digital future takes ability. ABB Ability TM.

Transcription

1 AUGUST 2017 RODRIGO ANDAI VP ABB ENTERPRISE SOFTWARE Writing the digital future takes ability. ABB Ability TM.

2 What is Digitalization? Digitization is the conversion of analog information in any form (text, photos, voice, etc.) to digital form with suitable electronic devices (smartphone, laptop, sensor, etc.) so that the information can be processed, stored, and transmitted digitally Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities - it is the process of moving to a digital business By 2020, 50% of the Global 2000 will see the majority of their business depend on their ability to create digitally-enhanced products, services, and experiences. For industry leaders, the fastest revenue growth will come from information-based products and services. To facilitate the development of these products and services, worldwide investment in (digitalization) initiatives will reach $2.2 trillion in 2019, almost 60% more than in Source: IDC, 2016 Examples: Starwood's SPG Keyless Lets Guests Access Their Room With a Smartphone Babolat Play Connected Tennis Racquet Lets Players Analyze Their Game British Gas Provides a Smart Home Heating Controller Called Hive Active Heating

3 Digital technologies are driving new innovation in industrial markets Media is focused on B2C but the killer app is in B2B Virtual/augmented reality Software-defined machines Machine learning Time-sensitive networking Big data Inexpensive computing Cloud computing Cybersecurity Connectivity Blockchain August 30, 2017 Slide 3

4 ABB is in the eye of the storm for massive value migration A $4 11 trillion digital opportunity by 2025 Range of sized potential economic impact Low High Disruptive technologies will have substantial impact by 2025 (economic impact of 12 most significant technologies, $ trillions, annual) Internet of Things Mobile internet Automation of knowledge work Cloud technology Advanced robotics Autonomous and near-autonomous vehicles Next-generations genomics Energy storage 3D printing Advanced materials Advanced Oil & Gas exploration and recovery Renewable energy August 30, 2017 Slide 4 1 Based on top-down estimate of potential net economic benefit, including consumer surplus Sources: McKinsey Global Institute

5 Industrial markets primed to adopt digital technologies Computing + connectivity + cloud + analytics set to unlock value Level of digitalization Digital S-Curve Time August 30, 2017 Slide 5 Note: relative size of industry for advanced economies Source: ABB analysis ABB end-market Enterprise Software customers Other industries

6 Augmented Reality Service August 30, 2017 Slide 6

7 Cyber Security U.S. Department of Homeland Security test Staff secretly dropped computer discs and USB thumb drives in the parking lots of government buildings and private contractors. Of those who picked them up, 60 percent plugged the devices into office computers, curious to see what they contained. If the drive or CD case had an official logo, 90 percent were installed. and The Stuxnet (?) story. August 30, 2017 Slide 7

8 What is Big Data (Wikipedia) Big data is a term for data sets that are so large or complex that traditional data processing application software is inadequate to deal with them. August 30, 2017 Slide 8

9 More Data

10 Interesting Facts At least for some people If we would burn CD's with the internet data flow of a single day, the pile would reach up to Mars and back ( Lo and Behold, W. Herzog) *** Well, not quite There is more processing power in the cloud behind the Xbox one than the complete processing power that was on the planet in year August 30, 2017 Slide 10

11 Is all Big Data equal? Key applications of Big Data in Retail and Banking Big Data in Retail Big Data in Banking 1. Recommendation Engines 2. Customer Market Basket Analysis 4. Path to Purchase 5. Social Listening for Trend Forecasting 6. Price Optimization 7. Workforce and Energy Optimization 8. Inventory Optimization 9. Fraud Detection 1. Fraud Detection & Prevention 2. Enhanced Compliance Reporting 3. Customer Segmentation 4. Personalized Product Offerings 5. Risk Management

12 Industrial Big Data Industrial big data refers to a large amount of diversified time series generated at a high speed by industrial equipment known as the Internet of things. The term emerged in 2012 along with the concept of Industry 4.0. Industrial big data takes advantage of industrial Internet technology. It uses raw data to support management decision making, so to reduce costs in maintenance and improve productivity and efficiency. Industrial big data is usually more structured, more correlated, more orderly in time and more ready for analytics. August 30, 2017 Slide 12

13 Industrial Big Data characteristics Background General "Big Data" analytics often focuses on the mining of relationships and capturing the phenomena. "Industrial Big Data" analytics is more interested in finding the physical root cause behind features extracted from the phenomena. Effective "Industrial Big Data" analytics will require more domain know-how than general "Big Data" analytics. August 30, 2017 Slide 13 Broken Compared to "Big Data" analytics, "Industrial Big Data" analytics favors the "completeness" of data over the "volume" of the data Due to communication issues and multiple sources, data from the system might be discrete and un-synchronized. Pre-processing is an important procedure before actually analyzing the data to make sure that the data are complete, continuous and synchronized. Bad-Quality The focus of "Big Data" analytics is mining and discovering, so the volume of the data might compensate its low-quality Fo"Industrial Big Data", since variables usually possess clear physical meanings, data integrity is of vital importance Low-quality data or incorrect recordings will alter the relationship between variables and have a catastrophic impact on the estimation accuracy.

14 Sensor Data Density in Mining (not in mobile equipment)

15 ABB Ability Smart Sensor August 30, 2017 Slide 15

16 Evolution of digital business and analytics Analytics Human input Descriptive What happened? Diagnostic Why did it happen? Data Predictive What will happen? Decision Action Prescriptive What should I do? Decision support Decision automation ABB Asset Health Center August 30, 2017 Slide 16 Source: Gartner (February 2015)

17 Prescriptive analytics for asset performance Collect Predict Inform Act Unified view of all asset data in proven analytics platform Algorithms codify experience to predict and prioritize risk Industry-standard KPIs and expert decision support Prescribe, Automate and Perform Continuous actionable intelligence August 30, 2017 Slide 17

18 The ABB Expert System Emulates human expert s reasoning Look for abnormalities Follow levels/trends Recommend Actions EXPERT SYSTEM Flag Issues & Identify potential failure modes

19 ABB Asset Health Center Prescriptive analytics turning data into action Enterprise Solution 1 Purpose built enterprise solution on world class platform. Expert Knowledge 2 Expert knowledge built into the solution extendable by utilities. Actionable Intelligence 3 Continuous actionable intelligence not just data The ability to assess and manage critical assets increases reliability and reduces risk August 30, 2017 Slide 19

20 Potential annual savings 8% O&M +3 years Optimized maintenance strategy Increased life of assets 2% Overtime costs 4% O&M Optimized labor Risk Safety Environmental Regulatory millions Capital replacement & deferred depreciation August 30, 2017 Slide 20

21 Industry Improved productivity (>200%), reduced energy (<30%), & longer product life (<30%) SELECTION Connected robots Manufacturing execution systems Energy assessment Cybersecurity assessment Digital simulation for robot deployment Power quality monitoring & demand-response Distributed control systems Remote monitoring & optimization August 30, 2017 Slide 21

22 ABB Ability : security, data, and IP Making solutions and data safe for mission-critical applications We secure your systems: Secure operations Threat detection Secure communications Secure updates Secure boot ABB cybersecurity standards You own your data: Identity Measurement data You know what we do with your data We only share data with your consent ABB IoT data manifesto 1 f(x)=$ You own your IP: No loss of intellectual property when using ABB Ability solutions ABB intellectual property position 2 August 30, 2017 Slide 22 1 Link to blog post; 2 Link to blog post

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