The digitalized forestry ecosystem - fuelled by digital twins
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1 The digitalized forestry ecosystem - fuelled by digital twins Forest & Photonics September 2017, Koli, Finland Jaakko Kuusisaari
2 The speaker and background Favourite topics: Industry ecosystems Digitalization New business models Digi meets Bio Director, Wood and Fibre Solutions at Tieto Corporation Heading solutions business for wood and fibre supply chain and sawmilling industries Worked within IT and digitalization services for forest, process and manufacturing industries for more than 20 years 2 Tieto Corporation
3 Contents The speaker & Tieto in a nutshell Forest Industry - the three viewpoints Digitalization Digi meets Bio Ecosystems Digital Forest Twin War against bark beetle Virtual forest The bio-digital world 3 Tieto Corporation
4 Tieto, the leading Nordic software and services company 3000 Projects annually Serving Nordic clients since 1968 Around 1500 clients Turnover of approximately 1.5 billion Employing experts globally, in close to 20 countries Serving customers in over 85 countries worldwide Investments in technology and services more than 100 million* per year *incl. capital expenditure and operational costs Tieto Corporation
5 Tieto - global leader in forest industry IT solutions Over 40 years experience with leading forest companies employees dedicated to forest industry services the world s largest forest IT specialist
6 Forest industry value chain - engineer view Sourcing Production Distribution Consumption Sawmill Converting Wood products Forestry & harvesting Board mill Packaging Tissue mill Converting Hygiene wholesale / retail Logistics, Mill reception, Wood yard, Deinking Pulp mill Other fibre-based production line Paper mill Various industrial materials, specialty papers, non-woven Newsprint, P&W Consumer Biorefinery Converting Biochemicals, Biomaterials, Biofuels Recycled fibre Power plant Grid power & heat 6 Tieto Corporation
7 New forest industry - consumer view Sustainable Bioeconomy Renewable Zero-waste Innovative Bio-business Forest industry has got a new name and a new image, and it s again a trendy business New bioproducts Bioenergy New businesses
8 What Digitalization really is Disruptive business models The age of the customer Data explosion and real-time visibility Globally networked economy Ubiquitous connectivity, smart devices, big data, powerful analytics Profound change in customer behaviour and expectations New business models and ways to create value, new market entrants
9 Digital revolution progresses with every new bit of information Unlimited capacity Autonomous Cyber security Digital supply chains Virtual reality Artificial intelligence Blockchain Machine learning, robotics Natural language processing Personalized for every individual Tieto Corporation Available on-demand Accelerates businesses and society
10 Digitalization journey Digitalization is progressing on different levels and at varying speeds in different segments. Nevertheless, all domains will be impacted. Digitalization should be seen as an opportunity. Although, it can appear as a threat to those who are not able or willing to transform and innovate. From evolution to disruption Re-innovating business New business models, value chains, networked business Digitalized products and services Digital, intelligent and connected Digitalized customer experience Intelligent channels, integrated with physical Digitalized business processes Intelligent, automated, agile Disruption Evolution
11 Digi meets Bio - union of powerful forces Boosted by global trends and technological innovations Bioeconomy World, industry and consumers Resource scarcity, competition for fibre Volatile energy and raw-material costs Fluctuating demand, short lead-times Ageing population, workforce imbalance Global data-driven marketplace Consumerization - customer experience as critical success factor, also in B2B Social connectivity, real-time, transparent Forest industry disruption Innovation and technology* AI and machine learning, intelligent apps Intelligent things (robots, drones, vehicles) Virtual and augmented reality Digital twins Blockchain Mesh and digital ecosystem platforms Adaptive security Additive manufacturing (3D printing) Digitalization *) source: Top 10 Strategic Technology Trends for 2017, Gartner
12 Future winners drive ecosystems! To provide real-time end-to-end supply chain visibility, improved delivery accuracy, stock level optimization and alignment with demand planning you need to connect different actors in the ecosystem together. Tieto Corporation
13 Enabling ecosystem collaboration - connecting everyone! Current Future From point-to-point connections of the few to ecosystem platforms connecting all the actors in the segment 13 Tieto Corporation
14 The ecosystem view - case Finland 650 forest services companies 1000 harvesting companies 450 transportation companies forest owners Wood and Fibre Supply Ecosystem 550 forest industry companies Tieto Corporation
15 Extended ecosystem example: Machinery vendors Forest machinery manufacturers The availability of the machines, in terms of uptime and performance, has an impact on the quality of harvesting production planning and execution. This is a clear example of a use case for machine connectivity and predictive analytics through the ecosystem service. 650 forest services companies 1000 harvesting companies 450 transportation companies Tieto Corporation forest owners Wood and Fibre Supply Ecosystem 550 forest industry companies
16 Asset owner APIs Other info sources Forest companies papinet Mill reception Stakeholder APIs Service Providers Interest Parties Developer communities Logistics operators Services Forestry Purchase Harvesting Logistics Harvesting companies Forest industry companies Apps Transportation companies Solution Providers Internet of Things papinet Forest owners Forest services companies Authorities Forest Hub Vision B2B Exchange Real time sharing Financial Clearinghouse Information Sharing Web Apps for Small Companies (API Gateway & Management) Exchange of B2B information Data Storage / Big Data Information Processing Data Analytics Business Activity Monitoring 16 Tieto Corporation
17 Transactional business Use Cases Data acquisition Digital Forest Twin Drone/Plane/ Satellite Health status bark beetle Volume & valuation Terrestrial measurement Fast response Growth models Other use cases Digital services Forest Hub Forest Big Data prediction and optimization Forest planning Purchase Harvesting Logistics Mill reception Processing 17 Tieto Corporation
18 The war against bark beetle Scan a forest area using drones equipped with a special camera to build a digital model Use intelligent analytics to detect bark beetle attacks before they are visible to the human eye React early Update the model and learn source: 18 Metsä Tieto Group Corporation
19 The war against bark beetle NDVI image RGB image source: Metsä Tieto Group Corporation
20 Dive into the digital twin - Virtual Forest Digital representation of the physical world and its dynamics Visualization, simulation, planning, optimization, decision making source: Metsä Group
21 The Bio-Digital World New business models On-line, real-time delivery and design Globally transparent competition - consumers freedom of choice Immediate - even anticipatory - delivery, full tracking Transparent wood fibre market - competition for fibre Merging of physical and digital products On-line optimization throughout the ecosystem, maximized efficiency, minimized waste Produce locally, optimize globally
22 Thank You! Check my LinkedIn article: When Digi met Bio - Why digitalization will make bioeconomy thrive Jaakko Kuusisaari
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