Industry 4.0: Digital Transformation Prepare, implement and profit

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1 Industry 4.: Digital Transformation Prepare, implement and profit São Paulo, May 9 th 26

2 Framework Industry 4.: Digital Transformation WHY? WHAT? HOW? Exponential environment Content Transformation Need for action Fields for action MVP* action Customer expectations Products & services Service offer Customer Kunde Enterprise & processes Performance delivery Competitive dynamics Retail & interactions Interaction instead of transaction * Minimum Viable Product Disruptive technologies 2

3 Digital Transformation Prepare, implement and profit Why do I need Industry 4.? What is relevant for me? How do I prepare and profit from Industry 4.? 3

4 Why Germany started Industry 4.? USA Germany Media Retail Finance Automotive Machinery Industry? One out of five Germans is related to Mechanical Engineering and Automotive Sector 4

5 Connected machines optimize themselves and their environment independently Autonomous order of spare parts Flexible work sequence and routing Networked demand & capacity management Big-Data Analytics, Fotolia.de 5

6 In 23 2% of Automotive revenues will come from new digital services External Partners Mobile Devices Car-to-Car Communication Smart Home, Porsche AG, Fotolia.de 6

7 Some of our basic believes What can be digital, will be digital. 2 Software is eating hardware. 3 Sharing* is the future. 4 Disrupt yourself, before others do. 5 Think big. Start small. And scale up what works. * Cooperation and Networking for end-to-end customer satisfaction 7

8 Digital Transformation Prepare, implement and profit Why do I need Industry 4.? What is relevant for me? How do I prepare and profit from Industry 4.? 8

9 Combine evolution and revolution! EVOLUTION Linear growth REVOLUTION Exponential growth Increase Operational Excellence. Self-controlling System 2. Collaboration in Networks 3. Artificial Intelligence Survival of the fittest Develop new business models. Changed access to customers 2. Platforms 3. Service Offerings Survival of the quickest 9

10 Industry 4. offers a competitive advantage when it comes to costs and productivity Industry 3. Industry 4. Automation Intelligent Automation Shopfloor Cost per Hour: ~ 4 U$ Engineering Periphery Robot 3 Cost per Hour: ~ 2 U$ Engineering 2 Periphery 3 Robot x 2 productivity Knowlegde Worker Manual Administration Automated Administration x 3 productivity

11 as well as increased speed and flexibility in the supply chain AS IS Lead time: Information flow Customer week Sales week OEM 3days st Tier 2 weeks 2nd Tier 3 weeks 3rd Tier 8 Weeks TO BE idcm Integrated demand & capacity management Synchronization Real time: Information flow Weeks Customer Sales OEM st Tier 2nd Tier 3rd Tier Reduction of inventory Increasing flexibility Improving delivery capacity Stabilizing and reducing lead times Transparency on bottlenecks Increasing customer satisfaction

12 Operational Excellence is the basis for Industry 4. 3 Management Decisions & Actions Forecasts Reports KPIs A B C 2 Network Organization Value chain networks Process experts Factory Shopfloor management JIT- Production System Manufacturing 2

13 Industry 4. evolves beyond Operational Excellence through self controlling closed system 3 2 Digital Factory Network Factory Decisions & Actions Organization Shopfloor management Advanced Simulation Cloud Computing and Storage Broadband Internet Next Generation HMI* Computing Power Machine Learning/ Deep Learning Smart Data & Analytics Process experts Smart Sensors Smart Robotics 3D-Printing 4 system Closed loop *Human Machine Interface 3

14 Digital Transformation Prepare, implement and profit Why do I need Industry 4.? What is relevant for me? How do I prepare and profit from Industry 4.? 4

15 Many industries have already separately digitalized its core processes AS IS Suppliers Performance Delivery Service Offers PCP SCM CRM R&D Production Sales PLM ERP Support processes CRM Enterprise & processes Retails & Interactions Products & Services Customer PCP Product Creation Process 5

16 Data integration and new Smart Services are key to success AS IS TO BE Maintenance Service Suppliers New purchase Usage Performance Delivery Service Offers PCP SCM CRM R&D Production Sales PLM ERP Support processes CRM Enterprise & processes Retails & Interactions Products & Services Customer Need for integration Need for interaction Need for innovation Meet new expectations PCP Product Creation Process 6

17 Framework Industry 4.: Digital Transformation in detail WHY? WHAT? HOW? Exponential environment Content Transformation Need for action Fields for action MVP* action Customer expectations Customer Kunde Competitive dynamics Transfer of requirements to other products Product requirements new, fast, intensive, individual, self-intelligent, safe Convenience Customer journey: Unique touch points New technical options lead to new business opportunities New partnerships and networks Transaction costs decrease, less importance of economies of scales Disruptive technologies Physical automation Networking Intelligent machinery 7

18 Contact data Rüdiger Leutz General Manager / CEO Porsche Consulting Brazil Mail: ruediger.leutz@porsche.de Tel.: Gregor Grandl Partner Industry Goods Digital Transformation Mail: gregor.grandl@porsche.de Tel.: Porsche Consulting Ltda. Rua Henri Dunant 383, 25 andar 479- São Paulo, SP Brasil Tel.: Porsche Consulting GmbH Porschestraße 7432 Bietigheim-Bissingen Deutschland Tel.: AKQGRG_57_2_GRG_Maschinenbau_Präsentation_Erstgespräch.pptx

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