Cloud as the enabler for new value chains

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1 Cloud as the enabler for new value chains Dr. Christian Schlögel CTO KUKA AG Page: 1 Agenda Digitalization Enablers 2 Dimensions Value Stream Transformation of Value Chain Cloud Architecture What we can offer Where to start Questions Page: 2

2 Digitalization has disrupted many areas. Manufacturing disruption is underway! 15 Years ago A fundamental new rule for business is that the Internet changes everything. Bill Gates, 1999 Listening to music Contacting people Watching a movie Reading the news Making music Today but in 1999, we had the Internet of people only! The Internet of Things (IoT) is changing much more! Today manufacturing The future of manufacturing is orange Source: based on IIC Page: 3 4 additional technological enablers will push the Industrie 4.0 (r)evolution: Cyber physical systems and the trend of softwarization Synergies and increasing integration of 3 central innovation fields within digital technologies Embedded systems mobile devices Global networks (WWW, Mobile TelCo) High performance software systems leading us to the world of Cyber Physical Systems Page: 4

3 Additional technological enablers will push the Industrie 4.0 (r)evolution: The Automation Pyramid vanishes regarding Communication IEEE Time Sensitive Networks Source: VDI/VDE Broschüre Cyber Physical Systems: Chancen und Nutzen aus Sicht der Automation Page: 5 Additional technological enablers will push the Industrie 4.0 (r)evolution: Fog Computing will work as an enabling technology for the shopfloor Public Cloud Layer Private Cloud Layer Fog/Edge Cloud Layer Thing Layer Sensor Act. Layer Device,, Analytics, Visualization, System, etc. see cloud scenarios Device,, Analytics, Visualization, System, etc. see cloud scenarios Gateway to the Cloud Layers (SIM, Outbound VPN, several protocols), Communication Infrastructure for the things (Switch, Access Point, Transparent listener to legacy field busses), Client for Smart Devices, Software installation and update in the things, Skills data base, collection from the things, Safe/Non safe control of several things, Navigation, Engineering, Simulation, Recognition, more tbd. Cloud Protocols and Interfaces (Northbound), Sensor/Actuator Interfaces (Southbound), Collection, Filtering, Logging, Localization, Identification, Alarms, Software installation and update, Client for Smart Devices, Remote Services Thing Interfaces, physical/chemical to digital converters, can also have elements of a thing Fog Computing will play a necessary bridge to connect the physical world to the internet Page: 6

4 4 additional technological enablers will push the Industrie 4.0 (r)evolution: Open standards are driving the next level of manufacturing systems Co founded by KUKA Combination initiated by KUKA Page: 7 2 High Level Use Cases in Focus High Level System Differentiation High Level Use Cases Cyber Physical Production Systems Digital Production & Logistics Production & Logistics Provider CPS (Cyber Physical Systems) + Connected to the Internet + Machine2Machine Connectivity Wireless Communication Sematical description Embedded Systems + Sensors & Actuators + High Performance Mini Computers Physical Systems How to increase flexibility & efficiency How to increase customer value Cyber Physical Systems Connected Smart Products & Components Product & Component Supplier Page: 8

5 Different use cases but similar requirements Digital Production & Logistics Benchmarking New Service Offerings Optimization Remote Monitoring Collection in Cloud(s) Higher Flexibility Real time Insights MES / LES Extension Asset Customer Value Optimizing of Value Chain Usage of New Business Models New Service Offerings Optimization Remote Monitoring Connected/Smart Products & Components Collection in Cloud(s) Continous customer value improvements Real time Insights Better offerings / pricing Extension Asset Aggregation & Control by Fog Smart Production Equipment & Machines Usage of Cloud Technologies Aggregation & Control by Fog Smart Products & Components Page: 9 Steps by using smart technologies Automation Monitoring Monitoring of: Product Status Environment Usage Control Control via Cloud/Fog of: Product Functions Personalization Safety Optimization Optimization to: Enhance product outcome Predict maintenance Remote Service Increase availability Enhance customer value Combination of monitoring, control and optimization enables Automated product usage Autonomous alignment across other products and systems Automated product extensions Self diagnosis and service Page: 10

6 Evolution of Service Models Customer Value Contracts Optimization of Assets, Processand Outcome Analysis are Basis for decisions Transactions Diagnosis & Repair Selling of parts and time Service Contracts and Service Level Agreements Sharing ofrisks Reduction of TCO Page: 11 Value stream inside the data stream sources Analytics Monitored usage Smart, connected products / smart production machines Location, Status, Usage Environment Weather, Inventories, Prices, Social Media Company Service history, SLA, Contracts, Incidents Lake Unstructured, Different Formats Location, Status, Usage, Environment Classical Evaluation of root causes of issues Predictive Recognition of patterns to predict future events Preventive Identification of actions to prevent events Information Knowledge Company Customer Partner Control & Optimization Page: 12

7 The new manufacturing company data as an additional company asset Product as data generator In the past: data were created by internal processes along the value chain combined with internal knowledge of markets and customers. Now: product/machine is generating data in a big way these data have to be combined with the intrnal data and environment data analytics New competitive advantage leads to a new corporate function, challenge is that these data lakes are unstructured and have to be analyzed by dedicated tools, digital twins are the anchor for the different types of data Page: 13 Usage of data is transforming the whole value chain I Product Development complex system of HW and SW, functions embedded in the product and functions in the cloud Product variability by SW and low costs; continous improvements of products; new UI technologies and augmented reality; continous quality management; remote and connected service; source for new business models; connection to other internal andexternal systems) Production/Manufacturing Connected and smart production machines Increased availability by predictive maintenance Higher output by optimization using big data Better quality by using data driven and real time quality management Simpler (mechanical) components by using software Usage of more sensors in production equipment and in production components New manufacturing processes (individualization at customer side) > scale effects Robot based production Continous manufacturing process (cloud SW offerings after delivery as standard) Cloud infrastructure as part of the production infrastructure Page: 14

8 Usage of data is transforming the whole value chain II Logistics Automated recognition of product movements about the movement, status of the product, path for the movement, environment during movement of big fleets of small automated vehicles Optimized delivery plan based on environment data Marketing / Sales Change of focus of the customer relationship: not the sales situation as a single event > ongoing optimization of customer values New ways of customer segmentation by evaluating realtime usage profiles of products Better fitting proposals based on usage data Direct and continous customer contact New business models based on customer value Focus on systems not single products: not function and quality of single product > system view Partnerships and Alliances to optimize systems New sales incentives and more complex revenue streams Page: 15 Usage of data is transforming the whole value chain III Service Efficient and predictive maintenance (remote repair preparation, asset management, digital repair assistant) Remote maintenance (complete remote repair, assisted remote repair) Predictive maintenance (Big data analytics and prediction models, SW distribution and update) Customer service assisted by augmented reality (new ways of collaboration) New service offerings (extension of guarantee, benchmarking, optimized usage and configuration) Security/IT Holistic responsibility for security by every function Smart products are broadening the field for Hackers and Cyber attacks Alliances for cyber security & Best practices HR Capabilities of HW and SW required > new competencies needed Cloud, Mobile, Agile Development Processes SW Business understanding SW company culture (different takt rate in SW) New payment models (flexible working time, sabbaticals, time for creativity, ) Page: 16

9 The new smart infrastructure Identity & Security (User Profiles, System Access, IT Security) Product Cloud Product Smart Product Applications (Control, monitor, optimization, Energy Efficiency, PredictiveMaintenance) Analytics Engine Product base (Usage, Sensor, Task ) Network connection (OPC-UA / TSN) Application Platform Software SW with Logging & Computing Hardware Hardware with sensors/actuators Enterprise Systems (ERP, CRM, PLM,, ) External Sources (Energy Prices, GPS, tbd ) Page: 17 KUKA offers a complete solution and opens up an Eco System Strategic partners augment our holistic solution Human Human/machine interface Apps for all layers Strategic partners Actual value Set value Standardized Communication Marketplace Cloud services Cloud platform Edge/Fog Robot and process Marketplace Asset efficiency & Big Mgmt. IIP Big Platform Real Time Fog Node 5G Communication Intelligent machines Page: 18

10 connyun.connect I4.0 Middleware Edge/Fog 1 middleware, 3 usages, 1 success formula: Enabling Machine as a Service 1 Digital Visibility 2 Digital 3 Digital Machine Machine as a Service: Machine Analytics Secure Remote Access Secure Communication Protocol Conversion Collection/Aggregation Extraction Machine UI Machine as a Service : SW System Manager Secure Remote Access Secure Communication Protocol Conversion SW Distribution & Rollback Machine as a Service : Sensor Integration Supervision Safety Supervision Control Object Recognition Machine Configuration Digital visible machine Digital managed machine Cloud machine Page: 19 What is our offering? Holistic Industry 4.0 offering Eco System Partners Central Industry 4.0 team Apps & Cloud Services Eco System Digital production & Logistics / Smart Products focus Technology Components Industry 4.0 Middleware Evangelization, I4.0 Program coordination Enabling New Business Models Coordination of KUKA Apps & Cloud Services Industry 4.0 ready Intelligent Machines Domain Process Content We are able to offer a complete stack combined with domain knowledge & machines Page: 20

11 Deployment Models weareplayingin all environments Cloud native Cloud OEM Cloud embedded AppStore AppStore AppStore Cloud Cloud Cloud Microsoft Siemens SAP, Customer Customer benefits: Center & upgrade provided Usage Fee Scalability Customer Customer benefits: No public cloud access Own Center. Customer Customer benefits: Embedded in customer cloud. Page: 21 Use Case: Smart Production & Logistics The power of a holistic asset management: moving into asset efficiency Operations Efficiency Production Optimization (OEE) Prod. Planning & Scheduling Inventory Optimization Statistical Quality Control Maintenance Efficiency Condition Monitoring Predictive Maintenance Maintenance Plann. & Schedul. Root cause analysi. & anomaly detect. Service Efficiency Remote Field Service Material Mgmnt Spare parts Supply Chain Analytics Energy/Safety Efficiency Energy Asset Sustainability Safety Mgmnt (EHS, Alarming) Regulatory Compliance Efficiency Master Modelling Digital Birth Certificate Asset Lifecycle Model Knowldege Master Process Digital Twin Service Dynamic Configuration Digital Insight Suite Asset Efficiency Page: 22

12 Use Case Smart Products & Components Customer Benefits Reliable Product Optimized Usage Higher Uptime Smart Service UpSell on Demand and on Situation based on Energy Effic & Safe Product Connected Smart Products & Components Production Digital Birth Certificate Location Information Usage Condition Monitoring Matching Develop.&Usage Service Remote Predictive Maintenance Energy / Safety Energy Usage & Optim. Safety Regulations Smart Services Based on Supplier Benefits Faster Diagnosis Better fitting products Service upsell Compliance & Regulations Page: 23 connyun Focus on customer value Your fast start to Industrie 4.0 connyun.connect connyun.cloud 1 Connectivity Kit 2 Automation Cloud 3 connyun.apps Appstore Connect your production fleet Extract data & Create insight First prototype in 1 day Drive asset efficiency to the next level Optimize by big data analytics content Enable new service oriented business models Make use of the available automation know how Get solutions of our eco system Extend by your fingertips Page: 24

13 Where to start Define digital strategy based on customer value Do a fast Proof of Concept to learn by implementing Select partners for an implementation (focus on months, not years) Use Pay as you go models as far as possible Start to collect data and extend by sensors to build the basis for analytics Use Fog computing to minimize impact on your current networks Edge/Fog Rethink digital implications along your value chain Page: 25 Any questions? Page: 26

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