Industrial Internet - business and technology

Size: px
Start display at page:

Download "Industrial Internet - business and technology"

Transcription

1 VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD Industrial Internet - business and technology Nordic Meeting on Brewing Technology 19. May 2016, Maarianhamina Heikki Ailisto

2 Contents What is Industrial Internet Traditional supply chain vs. ecosystem view point Some examples Digitalization 20/05/2016 2

3 Industrial internet and IoT are the next step in Digitalization Industrial internet connects smart machines and devices, and people using them which enables the use of advanced data analytics for decision making with the goal of better productivity or new business. 1 Intelligence machines 2 Advanced analytics IoT means augmenting everyday objects with embedded electronics and computing and the ability to communicate via internet thus increasing their value through networking. 3 People at work 20/05/2016 3

4 Why is it happening now? Affordable technology is here Computing power grows Smart machines Intelligent analytics, decision support systems Big data Store everything paradigm (dirty cheap GB) Connectivity like newer before Internet IPv6, no limit to nodes IoT paradigm connected objects Low power communication Identify and track everything (QR, RFID, GPS) Sensing everything in real time Extremely low cost and small Connected Advanced sensing Bio-mimiking People are ready for it Competences Average person has good competences with digital services and products. Acceptance People in all age groups use web, smart phones, car computers at home and on free time. Digital natives, Y-generation, not only accept, they expect! 20/05/2016 4

5 Is it evolution or revolution? What changes? M2M Stand alone Not a business disruption Industrial intranet Inside a company More technology and process than business change Industrial internet Business chnage Network of players New entrants: creative destruction 20/05/2016 5

6 Supply chain vs. ecosystem

7 We can use II / IoT technology to make this work better and more efficiently 20/05/2016 Source : 7

8 But should we start rethinking the system? Digitalisation in manufacturing industry Design, supply, production and customers in the chain 20/05/ Ref ActionPlanT

9 Benefiting from digitalisation Improved internal efficiency with new ways of working and processes Disruptive change New business opportunities in existing/new domains Disruptive change in roles and business models Internal efficiency Digital transformation External opportunities Parviainen, Teppola & Kääriäinen (2016, Forthcoming) Tackling the Digitalisation Challenge: How to Benefit from Digitalisation in Industrial Practice. 20/05/2016 9

10 How to benefit from Industrial Internet Model Remote support Optimize current process Transformation to service Pay per use Revenue share Case Remote maintenance support in fleet management (Finnish company X) Tana Smart site: shredder productivity, cost Tires as service to truck companies. Fuel optimization. (Michelin) Advanced leasing, e.g. vehicles, machinery Split the savings in energy (Facility automation company) Players Equipment supplier/service provider ( Customer) End user Supplier Service supplier Customer Supplier User (customer) Supplier (maintenance, analytics ) Customer Technologies Voice & video connectivity, augmented reality, 24/7 call center with experts Data collection Measurement communication data-analysis, optimization, visualization control Measurement communication data-analysis Reliable trusted measurement, communication Reliable trusted measurement, analytics 20/05/

11 IoT in use

12 Wood supply chain logistics optimisation Customer: Stora Enso Optimization of harvesting and transport of wood in multi-actor network. Tailored optimization models, their implementation, interfacing with customer s ERP and other IT systems, testing, validation and updates.. Customer estimates that the savings in logistic costs is around 5% per annum. Less effort needed for operational planning. 20/05/

13 13 ENEVO Optimointi ja prosessien tehostaminen Creating New Efficiencies And New Business From Data Enevo creates both new efficiencies and new business from collecting waste management data with sensors attached to waste bins. The collected data is is analysed to optimize bin collection routes, which offers direct savings to waste management companies. The data and the insights derived from it are valuable also for several other parties, allowing Enevo to expand into data integration business in the future. BENEFITS: Significant savings to customers from improved collection route optimization New business can be created from selling collected data to other parties, e.g. companies using demographics Enevo is a startup, with one of the founders coming from gaming industry. This gives the company the ability to look at a traditional industry from a new, data and analytics based angle Courtesy of Teknologiateollisuus ry.

14

15 Knowing your ingredients: networked sensor for measuring grain in the field The GrainSense hand-held device measures the protein, moisture, fat and carbohydrate content of cereals and other crops i.e. key determinants of the harvest value and processing cost while they are still in the field. GrainSense is a VTT spin-off. 20/05/

16 SpectralEngines - VTT spin-off Matchbox-sized near-infrared and infrared spectrometer engines Portable models Industrial sensor models Applications Food, beverages, pharma, polymers, 20/05/

17 Digitalization

18 How we work VTT steps to move forward with digitalisation 20/05/

19 Digitalisation Industry - Future How is the value created Tangible assets: machines, production lines, factories Intangible assets: data, algorithms, analysis Time span Long term, predictable Short term, unpredictable Environment Controlled supply chain Open network, digital platforms Key player Manufacturing or integrating company Platform enterprise What does industrial internet and digital platforms mean in your business? 20/05/

20 TECHNOLOGY FOR BUSINESS