Get Started Today with Smart Connected Operations
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1 Get Started Today with Smart Connected Operations
2 Some Key Messages Industry 4.0, the IIoT and Smart Manufacturing are going to do to today s manufacturing business what the industrial revolution did to blacksmiths You may go to bed as a manufacturer but one day your going to wake up a software & services company $ LNS Research 2017
3 Agenda About LNS Research DX, IIoT, & Smart Connected Operations: It s Already Here ERP, MES, and Analytics as the Foundation Use Cases, Benefits, and Actionable Recommendations
4 About LNS Research We are thought leaders and trusted advisors for Business, IT, and Automation executives Our differentiators: Experienced analysts Primary social research Deep industry contacts Interactive data visualizations
5 LNS Research s Council Members Include
6 Research Demographics: Metrics that Matter Survey 600+ executives and senior leaders took LNS Research s IIoT Survey in 2015 & 2016
7 IIoT and Smart Connected Operations: It s Already Here
8 Traditional Enterprise Architecture LNS Research 2016
9 Industry 4.0 and Smart Manufacturing Governments of U.S. and Germany have invested $1B+ Smart Manufacturing Leadership Coalition (SMLC) / IIC Industry 4.0
10 What is the IoT and IIoT IIoT refers to the network of networks encompassing IP connected people, processes, and things to enable new cyber-physical systems Enabled by ubiquitous connectivity, scalable compute, and pervasive sensing. LNS Research 2016
11 Industrial Internet of Things Platform Platform providers are emerging Security is embedded at each level
12 A New Approach is Needed LNS Research 2017
13 Digital Transformation Framework
14 What are Smart Connected Operations
15 How does IIoT Data Flow? Traditional Control Some IIoT Even Split Mostly IIoT Other Exclusive IIoT 2/3 of Industry Moved from Traditional Hierarchical Systems Means OEM Access
16 The Impact of IIoT Today 2015 year of education 2016 year of pilot 2017 year of adoption
17 Current IIoT Adoption 3/4 of market is eventually expecting to Invest in IIoT 10% increase last year
18 Crossing the Chasm We are at the tipping point of IIoT adoption Early adopters are spread across industries
19 ERP, MES, and Analytics as the Foundation
20 ERP Leads to the Cloud Which best describes your current and planned ERP deployment model? On-premise Public cloud hosted by software vendor Private cloud Public cloud hosted by third party 4% 7% 11% 25% 25% 30% 34% 64% 0% 10% 20% 30% 40% 50% 60% 70% Planned Current Flexible cloud based ERP can form foundation of Smart Connected Operations
21 MOM/MES Deployment Follows - Slowly On- Premise Private cloud Public cloud hosted by software vendor Public cloud hosted by third party 3% 3% 21 % 74 % Flexible cloud based MOM/MES is still a ways off for many companies LNS Research 2016
22 Analytics Expertise Strong Team External Consultants Stumbling Block Don t Know Hire Vendor Provided Manufacturers aren t honestly assessing internal analytics capabilities
23 Understanding Big Data and Machine Learning
24 Analytics OEM Competitive Advantage Analytics are understood in terms of the questions that can be answered Big Data & ML driving down costs
25 Data Used in Corporate Analytics Even companies using manufacturing data in corporate analytics include very little unstructured data.
26 Algorithms Used in Manufacturing Most algorithms today are for structured data and Descriptive or Diagnostic analytics Adoption of Big Data predictive analytics algorithms is still woefully low
27 Use Cases, Benefits, and Actionable Recommendations
28 Real World Example # 1 - Internalized How will you adapt your plant & operations when: Your suppliers do all their own maintenance You buy capacity not tools
29 Real World Example # 2 Your partners become competitors
30 Real World Example # 3 Working smarter & safer Redefining Manufacturing Execution
31 Potential Benefits: One Year Financial Improvements Many companies are outperforming the typical 1%-2% yearly performance improvement.
32 Potential Benefits: One Year Operational Improvements Many operational metrics can improve even more than financial metrics
33 Insights and Actionable Recommendations The IIoT is real and your competitors already started. Begin the Digital Transformation journey today. Smart Connected Operations is not rip and replace. ERP, MES, and Analytics can be the starting point. IIoT Platforms are designed to start small with pilots
34 Thank You!! LNS Research LNS Research 2015
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