Evolving Technology Trends Impacting Manufacturing Industry

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1 Evolving Technology Trends Impacting Manufacturing Industry 6-7 th July 2017 Raman GM & VP India & SEA ARC Advisory Group

2 About ARC Advisory Group Established in 1986 in Boston, USA Global: US, Canada, Germany, Belgium, Japan, China, India, Brazil, Argentina, Singapore Activities: Focused on Industry and Infrastructure Corporate Advisory Services, Market Research Reports, MIRA, STAR & Guides Forums, Custom Projects VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 2

3 Research Domains Analytics and Big Data Asset Lifecycle Management Energy Management and Sustainability Governance and Risk Management Industrial Networks and Cyber Security Industrial Internet and M2M Manufacturing IT and Cloud Computing Machine Control and Safety Operations Management PLM and Virtual Manufacturing Process Automation and Safety Sensors, Transmitters, and Actuators Smart Cities and Infrastructure Supply Chain and Logistics ARC s Collaborative Management Model VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 3

4 Key Industries Covered Aerospace and Defense Automotive and Heavy Machinery Chemical, Cement, and Glass CPG, Food, and Beverage Electric Power and Smart Grid High-Tech and Discrete Infrastructure and Smart Cities Life Sciences Logistics and Transportation Mining and Metals Oil and Gas Pulp and Paper Water and Wastewater VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 4

5 Agenda Key Takeaways and Messages Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 5

6 Agenda Key Takeaways and Messages Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 6

7 Key Takeaways and Messages Trends are Evolution, not Revolution, But Evolution is Faster Consumerization Continues to Infiltrate, Especially Mobility Change is Still ROI Driven, and ROIs Get Shorter IIoT Has Tremendous Potential, But Customers Need Help Biggest End User Challenge is Unscheduled Downtime Digital Transformation must Embrace Legacy Assets Number of Analytics Applications & Companies Exploding Use of Cloud Computing Accelerating for Historians, MES Process Control and Business Systems Converging The Control Room is Less Staffed, More Remote Must Cater To Millennials, Know Technology, Not Process VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 7

8 Agenda Key Takeaways and Messages Summary of Megatrends in Automation Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 8

9 Modern Business Trends and Challenges Increasing Global Competition Dynamic Customer Requirements Requiring Agility More Distributed Operations Requiring Collaboration Shrinking Product Lifespan Pressure to Lower Costs More Customer- Imposed Standards Lower Energy Costs Cyber Attack Defense Excessive IT Support Costs Aging Assets Aging Workforce in Manufacturing Plant and Personnel Safety Proliferation of Regulations Modern Business Pressures are Driving Manufacturers to become Real-time, Integrated Enterprises and Achieve Operational Excellence VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 9

10 Summary of Megatrends in Automation IT/OT are converging Microsoft, Intel, IBM, Accenture, ATOS, etc. Industry 4.0, IIoT products everywhere Some machinery companies are taking the lead Number of software companies is increasing Analytics & cloud services are becoming pervasive Product companies are trying to become service companies Intel PLC on a chip, it also had TSN, HMI & Security embedded All chip companies are developing chips for IIoT Products with embedded cybersecurity are starting to become available Robotics, Digital Twin & 3D printing are growing VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 10

11 Summary of Megatrends in Automation - Continued Integrated, Standards-Driven Systems Control, Electrical & Safety Systems Unification from Business to Manufacturing More Built-in Security Not just cyber security but other vulnerabilities Software-defined Systems Broad array of hardware dependent on software for functionality Leverage Augmented Reality/Virtual Reality for Training, Simulation, Field Service Location-Independent Software Applications run anywhere SaaS as well as License options Distributed Devices (not just instruments) Smarter, Ubiquitous (everywhere!) Continued VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 11

12 Summary of Megatrends in Automation- Continued Application Software More emphasis on role of the user and workflow Mobility Not just Operator Consoles, but mobile devices ranging from tablets to cell phones More Virtualization Less dependency on physical hardware some applications can go to the Cloud now Automation system virtualization of servers, HMI, etc. already accepted Engineering 3D Modeling and Simulation, Virtual Commissioning, Digital Twin, Project Decisions Workforce Changing Demographics,Changing Roles, Mobility BYOD, Automated Procedures Why are These Trends Important to Address Your Business Challenges? VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 12

13 Agenda Key Takeaways and Messages Company, Geographic and Industry Performance Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 13

14 Industrial Internet of Things ARC s Definition Industrial Internet of Things (IIoT): The transformation of industrial products, operations, value chains, and aftermarket services that is enabled through the expanded use of sensors, digitization, networking, and information systems. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 14

15 Industrial Internet of Things : IIoT Drivers Reduced Downtime and Faster Service are Top Drivers Now Most Industrial IoT Building Blocks are Already in Place ARC Survey with 200+ responses Q VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 15

16 Industrial IoT and Industry 4.0 Distinct Opportunities SmartProduct by OEMs SmartPlant by Owner/Operators Smart, Connected Products Sensors Embedded intelligence Communications Aftermarket Services Remote condition monitoring & predictive maintenance Maintenance services, SLA Product as a Service Optimize Maintenance Predictive Maintenance Reduce Unplanned Downtime Optimize Production Connect machines, workers, tools, supply chain, components, etc. More data and analytics for improved process optimization Coordinate with nearby processes VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 16

17 Agenda Key Takeaways and Messages Company, Geographic and Industry Performance Summary of Megatrends in Automation Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 17

18 Modern Business Trends and Challenges : IT/OT Convergence is Essential for Digital Transformation Systems Cloud, Virtual Software Developers Cybersecurity Experts Data Scientists People Collaboration, Social Processes Information Analytics, 3D Process Engineers Process Safety Experts Automation Experts Things/ Assets Mobile, IoT Self-learning IT s role is more important than ever VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 18

19 OT & IT Convergence IT Analytics Cloud Cybersecurity etc. Business Management, Enterprise Apps ERP, EAM System Equipment Data Work Orders OT Control Safety Manufacturing Execution etc. Engineering, Process Control & Optimization Smart, Connected Machines VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 19

20 Digital Transformation, Machine Learning and Analytics : Smart Connected Self-learning Machines are Emerging Smart sensors & measurement devices Smart actuators & valves Smart motors & drives Smart pumps & compressors Smart machine tools Smart robots & drones Autonomous cars Smart machines need open systems to work together Connected Machine Apps Connectivity Platform Smart Machines - Connected - Softwaredefined - Agents, Apps - Sensors Remote Monitoring & Services Advanced Analytics IIoT Smart Module VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 20

21 Digital Transformation, Machine Learning and Analytics : Comes to Process Data Process Industries Do Not Make full Use of The Data Currently Collected Knowledge Capture and Erosion is an Issue Machine Learning and Analytics Can Predict Process and Equipment Failures VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 21

22 Agenda Key Takeaways and Messages Company, Geographic and Industry Performance Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 22

23 Cloud Computing : The Cloud Connected Plant is at Hand XYZ Company XYZ Company XYZ Company XYZ Company Maintenance Engineering Purchasing Corporate Machine Mfr. Service Provider New IoT Analytics and Applications Private Cloud Enterprise Business Systems Private Cloud Share Asset Data with 3 rd Parties Secure Connection Monitor in-service Products Secure Connection XYZ Company Smart Module Smart Machine Physical asset with sensors, actuators Plant Operations Emerging Option: Suppliers Remotely Monitor Big Assets VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 23

24 Cloud Computing : Industrial Software (MES) Technology Evolution From Distributed MES : Distributed Org Centralized MES To Centralized MES Cloud Level 4 ERP & Supply Chain Corp DC ERP & Supply Chain MOM / MES Service Provider ERP & Supply Chain MOM / MES Upper Level 3 Lower Level 3 MOM / MES APC & APPs MOM / MES APC & APPs MOM / MES APC & APPs Sites APC & APPs APC & APPs APC & APPs Sites APC & APPs APC & APPs APC & APPs Central Governance Economies of Scale Cyber Security Simplification of Automation Footprint What little plant software remains, will be highly vendor supported for cyber security Drivers For Change Requirement for Upper Level 3 is Diminishing VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 24

25 Agenda Key Takeaways and Messages Company, Geographic and Industry Performance Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 25

26 Process Control : Many Installed DCSs are Not Designed for Modern Business Challenges A Collaborative Process Automation System (CPAS) strategy is needed. Plant Operations IT Modern Business Requirements Control Outdated Control System There are many lost opportunities to improve, if you are always just maintaining what you have VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 26

27 Process Control : CPAS Collaborative Environnent Information-Driven Manufacturing But if they are not integrated with the business, they remain an Island. Modern Process Automation Systems are Essential to putting Information in Context to the Current State of Operations. VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 27

28 Process Control : DCS Technology Trends CPAS Evolution ISA 95 Provides Functional Level Definitions but physical layers collapse Level 4 Business Planning & Logistics Level 3 Plant Production Planning & Scheduling engineering design, purchasing, customer order handling, etc. Level 3 Manufacturing Operations Management Level 2, 1 Production, maintenance, quality testing, inventory and material flow management, etc. Level 2 Batch Control Continuous Control Discrete Control VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 28

29 Process Control : Simulation & APC Technology Trends Models in Multi-Purpose Role: Design, System Checkout, Training, Optimization, Predictive Guidance Larger Range of Application for APC: Small Applications become more practical as adaptive becomes more main-stream Reduction in Expert requirement to keep APC tuned Increased Operator Information More Human Empowerment More workflow More auto-configuration More self-checking More variety of HMI Visualization Virtual Reality VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 29

30 Agenda Key Takeaways and Messages Company, Geographic and Industry Performance Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 30

31 The Control Room : Standards Based Decision Support Display - ISA101 HMI Management Detect - ISA18.2 Alarm Management Take Action - ISA106/88 Procedure/Batch Management VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 31

32 The Control Room : Capturing Procedural Knowledge Much procedural knowledge is in the heads of the most experienced operators They have their own tweaks that are often not in the SOPs or are their interpretation of an SOP Automated procedures can capture the knowledge of the best operator on his/her best day every day! VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 32

33 Agenda Key Takeaways and Messages Company, Geographic and Industry Performance Summary of Megatrends in Automation 2016 Industrial Internet of Things Digital Transformation, Machine Learning and Analytics Cloud Computing Process Control The Control Room Conclusion VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 33

34 Conclusion End Users and OEMs Cannot Ignore Megatrends Consumer Devices Grow : Raspberry PI, Tablets, Smart Phones Customers Need Help with ROI Justification of Megatrends IIoT Initial Focus is Asset Management, Downtime Prediction Legacy Assets Must Be A Part of Megatrend Solutions Most Machines will have a Digital Twin to Simulate, Test First Many Analytic Applications, Many Companies Acquired Barriers to Cloud Will Continue to Fall Closer to Control Future DCS will be Open, Standards-Based, Follow CPAS Knowledge Capture Great Challenge, Workforce Turnover Augmented/Virtual Reality Will Go Beyond Training & Simulation VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 34

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