Driving the Digital Enterprise. Dr. Helmuth Ludwig, EVP & Chief Digital Officer
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1 Driving the Digital Enterprise Dr. Helmuth Ludwig, EVP & Chief Digital Officer Siemens AG 2016 siemens.com/hm16
2 Digitalization changes everything Page 2
3 From record store Page 3
4 From to streaming record store Page 4
5 From bookstore Page 5
6 From to e-book bookstore Page 6
7 From human contact Page 7
8 From to this human :-/ contact Page 8
9 Really Digitalization changes everything! The products, business models and legacy positions that once gave companies their competitive edge are no longer secure Page 9
10 Smarter products are accelerating every industry Printed, self driving cars Pilotless planes Individual implants Self-optimizing energy supply Page 10
11 Smarter products and experiences are changing Consumer Products too Page 11
12 Transforming the Innovation Process Local Motors but soon also industrial 3D Food printing! Changing the way ideas come to life Crowdsourcing & gamification of design Available range based on local voting Changing the way products are realized Current benefits of edible AM include product differentiation, product customization, and directto-consumer relationships 3D printed in micro facility Fully customizable Page 12
13 There will be more change in CPG in the next five years than there was in the last 50 Nielsen Page 13
14 Digitalization is the key to playing OFFENSE in CPG Page 14
15 Digitalization enables disruptive business models Source : PWC Page 15
16 Digitalization is transforming the shopping experience and creating new business models CONSUMER FIRST TRADITIONAL RETAIL Consumers must shop in the store ECOMMERCE Consumers can shop on their computer MULTI-CHANNEL Consumers can shop on line and/or in store THEIR CHOICE OMNI-CHANNEL Consumers can shop anywhere anytime however, they want EASILY RETAILER FIRST Page 16
17 Digitalized products provide global reach & enhanced appeal Source : PWC Page 17
18 Innovation is everywhere in Packaging Siemens AG 2016 Seite April 2016 siemens.de/hm16
19 Innovation is everywhere in Formulation Classic Low Calorie Siemens AG 2016 Seite April 2016 siemens.de/hm16
20 Digitalization starts with the internal value chain Source : PWC Page 20
21 Traditional manufacturing: stamping Page 21
22 Traditional manufacturing: stamping Switch to new design: Tool change 6 months Page 22
23 Innovation cycles are getting shorter < 6 months Smart phone evolution process Page 23
24 Digitalization in manufacturing: machining Switch to new design: Digitalization is instantaneous Page 24
25 Switch to new design: Digitalization is instantaneous 10,000 machines working in parallel Page 25
26 Reasons for Additive Manufacturing Manufacture previously impossible geometries Eliminate manufacturing as a bottleneck for radical design concept production New Business Models Page 26
27 Will these technologies also impact CPG? Manufacturing Cycle Time Reduced from 44 weeks to 2 weeks Crowd-sourced designs customized and printed on the same day Printed mid-sole will reduce lead times from weeks to hours 3D printing restaurant opens in New York, Tokyo, Barcelona, Cape Town, and London Page 27
28 Simply focusing on the automation aspect of manufacturing is not enough. Page 28
29 It is necessary to integrate and digitalize the entire value chain planning Services engineering Product design execution Siemens AG 2016 Seite April 2016 siemens.de/hm16
30 It is necessary to integrate and digitalize the entire value chain Product design planning engineering execution Services Siemens AG 2016 Seite April 2016 siemens.de/hm16
31 The holistic approach Product design planning engineering execution Services Suppliers Siemens AG 2016 Seite April 2016 siemens.de/hm16
32 The holistic approach Holistic approach Product design planning engineering execution Services Suppliers Siemens AG 2016 Seite April 2016 siemens.de/hm16
33 The holistic approach Holistic approach Product design Digital Twin of planning the entire value engineering chain execution Services Product design planning engineering execution Services Suppliers Siemens AG 2016 Seite April 2016 siemens.de/hm16
34 Digital twin of the product Digital twin of the production process Digital twin of the equipment Siemens AG 2016 Seite April 2016 siemens.de/hm16
35 Integrating technical domains into one data model Siemens AG 2016 Seite April 2016 siemens.de/hm16
36 Teamcenter connects 12,000 Siemens Engineers and over 11,000,000 customers. Siemens AG 2016 Seite 36 One single Teamcenter System connects more than 12,500 Siemens engineers globally. This is a small fraction of the 11,000,000 total customers that benefit from Teamcenter April 2016 siemens.de/hm16
37 Inability to Handle Mass Data that Speeds Innovation Small data generally historic in nature is now Big data, increasing exponentially. Digital Information increases 10 fold every 5 years What is the effect of CPG mass data on the organization today? Siemens AG 2016 Seite April 2016 siemens.de/hm16
38 Feeding Back Insights from Realization and Utilization Makes a Smart and Agile Value Chain Product design planning engineering execution Services Suppliers Siemens AG 2016 Seite April 2016 siemens.de/hm16
39 Digitalization Ingredients You need these digital companions to transform into a digital enterprise Revolutionary Results with an Evolutionary Process Intelligence of Digital Twin Connectivity of + + Digital Thread Insight from Lifecycle Analytics Siemens AG 2016 Seite April 2016 siemens.de/hm16
40 Siemens answer to Industrie 4.0 Digital Enterprise Software Suite Siemens answer to Industrie 4.0 and the Manufacturing Renaissance Siemens AG 2016 Seite April 2016 siemens.de/hm16
41 Digitalization and Integration Seamlessly connecting digital and physical worlds. Bringing ideas to life faster. Siemens AG 2016 Seite April 2016 siemens.de/hm16
42 Siemens continuously invests in the future which is increasingly Digital Example: Manufacturing From Vision to Reality with the holistic Digital Factory Software portfolio Start of production automation: Siemens receives the patent for SIMATIC Totally Integrated Automation (TIA) enables inter-operability between all automation components TIA Portal provides access to all automation tasks Siemens is currently the only company whose technologies combine the real and the virtual production world under one roof Future - virtual and real production worlds increasingly merge. On a Digital Enterprise Platform, product development and production are integrated step-by-step through industrial IT and Industry software engineering and execution Beginning ca software for product and manufacturing design becomes increasingly important / billion in investments since 2007 Product development 2007 Siemens AG 2016 Seite April 2016 siemens.de/hm16
43 speed flexibility efficiency quality Siemens AG 2016 Seite April 2016 security siemens.de/hm16
44 Siemens AG 2016 Seite April 2016 siemens.de/hm16
45 Siemens: Realizing the Digital Enterprise Siemens AG 2016 Seite April 2016 siemens.de/hm16
46 Complete Value Chain in Amberg Requirements 0 Management Product design planning engineering execution Services Siemens AG 2016 Seite April 2016 siemens.de/hm16
47 Siemens Amberg plant Fast! Flexible! Efficient ~1 Million monthly production of SIMATIC products Teamcenter managed products shipped to 60,000+ customers worldwide each year 24 hour lead time for new orders 75% OEE plus 20% buffer for overcapacity Quality! Siemens AG 2016 Seite April 2016 ~11 dpm means near perfect quality every time siemens.de/hm16
48 Complete Value Chain for Assembled Goods & Packaging Requirements 0 Management Package Design BOP Authoring Engineering Execution Services Siemens AG 2016 Seite April 2016 siemens.de/hm16
49 Complete Value Chain for Formulated Goods 0 Requirements Management Digital Formulation Recipe Authoring Plant Engineering Execution Services Siemens AG 2016 Seite April 2016 siemens.de/hm16
50 The Complete Value Chain for CPG 0 Requirements Management Digital Formulation Package Design Recipe Authoring BOP Authoring Plant engineering Engineering execution Services Siemens AG 2016 Seite April 2016 siemens.de/hm16
51 Siemens answer to Industrie 4.0 Digital Enterprise Software Suite Siemens answer to Industrie 4.0 and the Manufacturing Renaissance Siemens AG 2016 Seite April 2016 siemens.de/hm16
52 Siemens digitalized its own operations, Siemens is ready to lead digitalization in Consumer Products. Digitalization changes everything! It is the key to a leap forward in competitive advantage But change happens quickly in a digital world. Siemens and other visionary customers have already started their journey Siemens has proven that our open platform enables revolution through evolution Page 52
53 Digitalization in the Consumer Products Industry Page 53
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