MindSphere an open industrial cloud ecosystem for digital services. Dr. Peter Weckesser COO Product Lifecycle Management, Siemens AG Digital Factory

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1 MindSphere an open industrial cloud ecosystem for digital services Dr. Peter Weckesser COO Product Lifecycle Management, Siemens AG Digital Factory siemens.com/mindsphere

2 Digitization of industries The world is changing faster then ever before Page

3 Industrie 4.0 Defining the way forward in industry in the internet age An initiative of the German industry sponsored by the German Government Cornerstones of the initiative Industrie 4.0 Horizontal integration of the value-add networks Seamless integration of the engineering of the entire value-add chain Vertical integration and networked production systems Page

4 The evolution towards Industrie 4.0 in production From Industrie 1.0 to Industrie 4.0 First Industrial Revolution follows introduction of waterand steam-powered mechanical manufacturing facilities Second Industrial Revolution follows introduction of electrically-powered mass production based on the division of labor Third Industrial Revolution uses electronics and IT to achieve further automation of manufacturing Degree of complexity Fourth Industrial Revolution based on cyber-physical systems (CPS) First mechanical loom, 1784 First production line, Cincinatti Slaughterhouses, 1870 First programmable logic controller (PLC), Modicon 084, Today Time Page

5 New business models in the Internet age From bookstore to e-book From record store to streaming From Yellow Pages to marketplace From taxi to ride-sharing Page

6 Paradigm Shift From a product-focused to a user-centric mindset Page

7 Turning capex into opex? The Total Care service approach of Rolls Royce sells power by the hour Source: Internet Page

8 An industrial (r)evolution A global and cross-industry development Page

9 Easy to digitize industries have already started to change more complex industries will follow 1 Technical Drivers Degree of maturity of digital business models Digitization, Sensors, Connectivity, Bandwidth, Data Capturing and Storage, Clouds, Analytics Tipping-Point! Media Trade 2 Business Drivers Mobility New Business Models, Ecosystem concept and Paradigm shift: From product-focused to user-centric mindset Health Discrete & Process Industries Energy Less complex industry Based on "Smart Service Welt" report/accenture visualization More complex industry We're seeing an increasing digitization of industries Page

10 Digitalization requires and enables flexible development of business models Business Processes & Organization Innovation Project Service Offering Test Test Test Technology Page

11 Our answer at Siemens An open ecosystem and platform turning Smart Data into Value and Business Page

12 MindSphere the open cloud platform for industry customers Optimization of plants and machines as well as energy and resources Open standard (OPC) for connectivity of Siemens und third-party products Plug and play connection of Siemens products (engineering in the TIA Portal) Optional cloud infrastructure public cloud, private cloud or on premise solution Cloud for industry with open application interface for individual customer applications Transparent pay-per-use pricing model Opportunities for completely new business models (e. g. selling machine hours) MindSphere based on SAP HANA-Technology Page

13 Two easy steps: MindSphere for OEMs to create new data-driven services Step 1 Connect Step 2 Configure Run Service. Get MindSphere user-account, receive and integrate Connector Box into machine / equimpment Configure data acquisition, connectivity and Visual Analyzer via MindSphere Monitor e.g. health status of all assets in MindSphere with Fleet Manager and drill into details using Visual Analyzer Page

14 Know-How of branches, products and user data are the foundation for Digital Service Business Models Business models Intelligence Service contracts with availability guarantee and reduced down-times through predictive and preventive services Prediction of engine faults based on branche and product expertise Connectivity Send data to central cloud / data base Data source Measurement of partial discharge at motor winding and recording of operating temperatur (e-motor) Page

15 The Future: Business Models on a profit and performance-related basis Payment for Usage and Performance of industrial products? X as a Service Sale of driving performance, machine usage, compressed air, welding spots, pumped oil Page

16 Thank you! siemens.com/mindsphere Page

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