Manufacturing in an Era of Internet of Everything. Internet Business Solutions Group Jay Chung Puneet K Bhatia

Transcription

1 Manufacturing in an Era of Internet of Everything Internet Business Solutions Group Jay Chung Puneet K Bhatia

2 Region s growth aspiration - manufacturing matters 40 World 35 Russia, Canada, Spain Thailand China Manufacturing (% of GDP) Germany Japan Italy UK France South Korea Malaysia Philippines Indonesia Singapore Mexico Vietnam Brazil India USA > 25% World GDP Growth (%) Source: World Bank, Cisco IBSG

3 Global manufacturing trends - high priority business agenda Industry trend Top 5 business agenda Digital consumers new ways of searching, comparing and consuming products and services Scarcity key resources raw materials, talent, real estate etc. Globalization and search for new markets Exports, JVs, M&As, Alliances etc. Regulatory environmental, labor etc. Financial markets access to capital, cost of capital and protecting cash Increasing complexity across products and market segments Technology diffusion virtual way of doing things, cloud, mobility etc. Global knowledge society harnessing knowledge across extended organization Customer experience Asset utilization Supply chain/ Logistics efficiency Employee productivity Smart products/ services Source: Cisco IBSG 2013

4 Key takeaways Internet of Everything (IoE) will transform manufacturing into a highly interconnected and a collaborative ecosystem It will create new possibilities for innovation and operational excellence ICT investments and their consumption models hence have to be viewed as a long term portfolio investment across 5 broad categories infrastructure, transactional, collaborative, information and strategic

5 Defining IoE connecting the unconnected IoE brings together people, process, data, and things to make networked connections more relevant and valuable than ever before turning information into actions that create new capabilities, richer experiences, and unprecedented economic opportunity for businesses, individuals, and countries.

6 Why connect - How much value is at stake? $14.4 trillion $9.5 trillion From industry-specific use cases (66%): smart grid, connected commercial vehicles, etc. $4.9 trillion From cross-industry use cases (34%): future of work (telecommuting), travel avoidance, etc. IoE represents an opportunity to grow aggregate global corporate profits ~21% by 2022

7 Internet in manufacturing evolving in accelerated waves Past Present Future Industrial revolution - Machines and factories power economies of scale and scope Internet explosion fixed computing, mobility, BYOD and Internet of things Internet of everything machine based analytics, science based, deep domain expertise, automated, predictive Time Source: General Electric & Co., Cisco IBSG, 2013

8 IoE in Manufacturing driving the top priority business agenda Smart products & services Smart operational processes Visual supply chains Customer experience 5 People at work Connect devices, machines, facilities, transport fleets, grids and networks with advanced sensors, controls and software apps Visual plant operations, asset and people visibility, interactive and mobile plant workforce Inbound and outbound visibility and risk management Omni-channel experience Connecting people (enterprise, partners and customers) anytime to support R&D, Operations, Maintenance, Service Levels and Quality 6 Advanced analytics Combination of power of science (physics, chemistry etc.), analytics, predictive algorithms, domain knowledge

9 1 Smart products & services new segments, new business models Personal Cars Home appliances Personal gadgets (e.g. watches) Smart phones. Smart homes Smart grid Virtual assistants. Commercial Commercial fleet vehicles Industrial machinery and equipment's Aircrafts. Products Smart buildings/ campuses Industry exchanges (e.g. freight exchange, MRO exchange etc.) Smart utilities. Services

10 1a Smart connected vehicles a broad set of applications

11 2a Video Smart factories asset visibility and maintenance Response Designated Maintenance Expert Wireless data acquisition modules Machine data and video images LAN/ WAN Instruction manual and Case Library Process command and instructions to nearest expert/ functional expert Wireless network gateway Alerts/ Notifications Virtual Ops.

12 2b Video Smart factories people visibility and response Response Event Response Teams Staff wears sensor and activates help button Wireless data acquisition modules Location tag Sensor, Location Tag and Video Images 3 rd party access LAN/ WAN Instruction manual and Case Library Process command and instructions to nearest expert/ functional expert Wireless network gateway Alerts/ Notifications Virtual Ops.

13 2c Smart factories interactive workforce Automation Possibilities Andon MES Data Information boards Public announcements Plant metrics Corporate Messaging Safety information HR Processes & Processes Wireless data acquisition modules Kiosks/ Signage's within sections of plant Pull/ Distribute LAN/ WAN Upload Remote Users (e.g. HR) Wireless network gateway Push Download

14 3 Visual supply chain automotive supply chain hubs a b c Control tower. network visibility Transportation exchange provide reach and access Supply Hubs. Connected warehousing Transport supply Transport demand Platform Enabling OEMs and Part Suppliers to manage the events across the network (inbound and outbound) by connecting physical warehouses & transportation requirements Directly connect the transportation demand with the fleet owners and removing the intermediary layer allow for efficient procurement of transportation services Connected warehouses (designed on VMI/ SMI principles) on a shared basis across the network servicing the key auto & aftermarket clusters and providing part visibility and accuracy across locations and consumption points Source: Cisco IBSG auto engagement in India

15 4a Omni channel experience explosion of customer access points High context dependence Self service interactive touch points (e.g. brand websites, interactive kiosks) Purchase points dealer showroom Minimal problem solving Information search and interaction points (e.g. social media) Access to experts virtual dealership, mobility High problem solving Low context dependence

16 4b Omni channel experience platform providing superior cust. experience

17 4c Superior automotive experience an engagement example

18 5a People at work manufacturing virtual operations Key services: Virtual Plant Operations, Plant Monitoring, Preventive Maintenance, CBM, Trouble shooting complex units, Plant Simulation, Equipment Performance Evaluation, System Performance Evaluation, Training, Knowledge Management, Spare Parts Management, Risk Management, Safety and Security, Utilities Demand Management etc.

19 5b People at work virtual workspace Virtualized Collaborative Workspace Virtualization aware borderless network Virtualized Data Center 1) User 1 on any device 2 at any location logs in 2) Virtualization aware network 3 assembles virtual desktop on demand 4 based on user profile and including OS and applications. 3) Dynamically mapped and adjusted in real-time based on user requirements 4 User Profiles 5) Superior end user experience 5 1 users can be external 3 rd party consultants, vendors or internal Tata Steel employees in any location anywhere 2 any client mobile, zero, thin or thick 5 data, voice and video LAN/ WAN/ Internet 4) Delivered securely and with high-performance over LAN or WAN or Internet 4 3 connects the data centers, Plant Campus, Other offices and Remote workers Applications Operating System Compute + Switching + Storage + Virtualization 4 Based on a Unified Data Center Architecture designed to create efficient, agile and transformative data centers consolidate the DC infra, reduce energy costs, improve workforce productivity and ensure business continuity

20 Simple steps to begin capturing your share of IoE value Identify the goal governed by business but three different reasons Build a roadmap leverage portfolio management approach Consider internal changes and key capabilities required to embrace IoE Consider ICT consumption models that will best support IoE

21 What s your aspiration three different Innovate IT portfolio reasons Redesign IT portfolio Run and rebalance IT portfolio Aspiration Better execution of current ops. to improve competitiveness Redesign operations to improve cost and/or increase growth Change the game by innovating across the industry value chain Context Current IT architecture supports strategy Room for improvement in key business processes Current IT architecture does not supports strategy or is inefficient Industry discontinuity Tap latent demand Redefine roles Change cost structure

22 Creating the tech. relevance Portfolio management approach Informational Collab. Strategic Business direction Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Key aspiration Transactional Portfolio mix Infrastructure Baseline IT portfolio Run & rebalance Redesign Illustrative distribution 1 Innovate s% t% a% b% x% y% k% l% u% c% c% c% v% w% d% e% z% e% d% m% Examples PSS Business activity monitoring Asset visibility People monitoring Workspace Customer exp. Supply chain visibility Technology consideration Video surveillance Plant Ethernet Industrial wireless RFID M2M VDI/ VXI BYOD/ Mobility i-services Architectures Platform solutions Collab.

23 Adopting and making tech. affordable ICT consumption models Managed services SP led models Architectural solutions MSI s/ OEMs (e.g. Rockwell/ Cisco) Invest and innovate intelligent products and services Industry exchanges/ Vertical specialists e.g. Supply chain solution providers Share and mutualize common infra across suppliers and dealers Opex funding lease models Consortium/ alliances at industry levels ideal for SME s

24 Questions? Thank You

25 TOMORROW starts here.