Intelligent Asset Network: An Innovative Approach to Operational Excellence. Sunil Srinivasan, Senior Principal, Industry Value Engineering, SAP

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1 Intelligent Asset Network: An Innovative Approach to Operational Excellence Sunil Srinivasan, Senior Principal, Industry Value Engineering, SAP

2 AGENDA HERE 1 Digital transformation impacting business processes across the Extended Supply chain 2 Trends shaping the Asset Management How intelligence in the assets provides an opportunity for innovation SAP s Next generation Asset management solutions Q&A 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 3

3 Digital transformation in the extended supply chain Bridging traditional lines of business Supply chain R&D/Engineering Manufacturing Asset management Sustainability Resource scarcity Sustainability People and resources Suppliers and logistics Sharing economy Business network End-to-end visibility Individualized products Industry 4.0 Products and assets Customers and markets Customer centricity Omnichannel 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 4

4 Trends shaping Asset Management Process harmonization across industries based on ISO 55001, ISO 14001, and ISO Managing cost, risk, and performance holistically Balancing operating expenditures (OPEX) with capital expenditures (CAPEX) with focus on asset lifecycle costing Collaboration of engineering, procurement, and construction (EPC) contractors, OEMs, service providers, and operators Empowerment of users with simplified applications Increasing stakeholder expectations that require operating safely and reliably under cost pressure Business Challenges Technology Enablers Cloud to establish an asset network Big Data to predict behavior of assets, people, and processes Analytics to monitor performance of assets, people, and processes Enterprise Mobility to be more effective and efficient as well as to empower employees Internet of Things (IoT) to connect the assets to the business (IT/OT convergence) Machine-to-machine (M2M) communication to build cyber-physical systems 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 5

5 Asset Management in an ever-more-connected world... Cost Risk Connecting corporate objectives with the asset system Performance Asset Plan and design Procure and build Commission Operate Maintain Decommission Manufacturer Connecting all stakeholders alongside the asset lifecycle Service provider Supplier Owner/operator EPC IT Connecting IT with OT OT Dealer 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 6

6 tactical to strategic Maintenance Strategies Decide on Strategies Holistic Enterprise Asset Mgmt SAP Enterprise Asset Management Asset Management Strategies getting more sophisticated Integrated Information Big Data Few Data fragmented to integrated Source: taken from Gartner and modified SAP SE or an SAP affiliate company. All rights reserved. Public 7

7 Asset Health Control Center (AHCC) as the core application of the solution makes unplanned machine downtime a thing of the past AHCC FEATURES: Monitor asset health and prevent failures Initiate preventive counter measures that trigger service or maintenance notifications/orders/requests (e.g. Plant Maintenance, Multi Resource Scheduling) Enable a closed-loop maintenance and service process EXAMPLE CUSTOMER BENEFITS 31% 8.2% 25% Lower annual maintenance costs Higher asset productivity Lower unplanned downtime TYPICAL VALUE DRIVERS Improve asset availability and performance by enabling maintenance engineers to detect health issues and fix equipment long before failures occur Improve return on assets by promoting overall equipment effectiveness, enhancing maintenance efficiency, and lowering maintenance costs Reduce annual service and maintenance cost by improving first-visit-fix rate Increase asset utilization by monitoring and analyzing asset health to predict future failures and reduce unplanned downtime 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 8

8 Where is Asset Maintenance and Service Today? Different Stakeholders with Different Concerns How can I improve my product s reliability and up-time? How can I reduce service and operational cost? Which quality problems are arising with purchased components? Asset Manufacturer Asset Operator How can I improve efficiency and improve processes? Which service level do we need to provide? 3 rd Party Service Provider How can I provide the best service at the right time? 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 9

9 Asset Network SAP Asset Intelligence Network OEMs Service Providers Operators Applications Pump OEM Chemicals Valve OEM Business Partner Network Services Shared Model Database Global Equipment Registry Mill / Mining Service Provider Content Integration Network Oil&Gas 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 10

10 SAP Asset Intelligence Network SAP solution for collaborative asset management Apps Apps for collaborative processing of service bulletins, performance improvement, and spare parts change management Combined together to deliver Content Network A cloud portal of standardized content that defines and documents equipment and models, shared and stored, for a consistent definition between business partners A secure network to connect multiple business partners for inter and intra company collaboration SAP Asset Intelligence Network 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 11

11 SAP Predictive Analytics Gain completely new insights from your assets Telemetry data Sensor measurements Geospatial data Diagnostics Events Design improvements Selling performance / pay per use Business data Warranty information Maintenance/ service history Customer profile Dealer events Cost and risk Machine health and early warnings to prevent downtime Prioritizing maintenance and service activities Third-party data Structured and unstructured, such as a weather forecast Optimized warranty and spare parts mgmt. Benchmarking 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 12

12 New user experience for asset management Embedded SAP 3D Visual Enterprise, side panels, QuickViews, new list views, enterprise search, mass change, personalization, SAP SE or an SAP affiliate company. All rights reserved. Public 13

13 Spatially enabled SAP solutions Example: Enterprise Asset Management Desktop Mobile 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 14

14 Many companies are actually doing this today Across many industries Train Operator 40% of maintenance effort is for corrective maintenance. Implemented remote train diagnostics, engineering rules and predictive models, resulting in lower maintenance costs, less effort and higher passenger satisfaction. Equipment Manufacturer Target to strengthen company brand by improving product quality and reliability through analysis of equipment telematics data. Resulted in warranty cost reduction and shortened detection-to-correction cycle, while improving equipment up-time. Compressor Manufacturer Changed the business model from selling compressors to selling compressed air. Resulted in improved ability for compressor stations and a move from unplanned to planned maintenance. Utilities Company Business requirement to improve asset performance. Predictive maintenance resulted in reduction in equipment failures, while improving reliability and customer satisfaction SAP SE or an SAP affiliate company. All rights reserved. Public 15

15 Contact information: Sunil Srinivasan Senior Principal Toronto, SAP Canada Thank you