Industrie 4.0 Die Notwendigkeit!

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Industrie 4.0 Die Notwendigkeit! Wolfgang Beeck, CTO, SAG Deutschland GmbH München, 1. Oktober 2014 1

Software AG helps Organizations Transforming into Digital Enterprises CUSTOMER BASE More than 70 % of the Global 1000 2.5M+ Users 2M+ Developers 1B In Revenue 5,000+ Employees Worldwide Dedicated to Customer Innovation for over 45 years 2

Industry 4.0 Chances and Risks DIGITAL ATTACKERS INDUSTRY 4.0 VISION TRADITIONAL COMPANIES SMART FACTORY Self-organizing networks of machines and other resources that autonomously exchange information in real-time and control each other. *) Source: Prof. Dr. Siegfried Russwurm Digitize your Factory in The Digital Enterprise, 2013 3

Traditional: Handgun from Smith & Wesson Smith & Wesson - established 1852 4

Digital: Open Source firm Defense Distributed The Liberator Physible, 3D-printable single shot handgun 15 plastic + 1 metal parts 5

Traditional: Factory-based car manufacturing 6

Digital: Co-creation and micro-manufacturing Local Motors Strati Chassis printed in just 44 hours 7

moving into the industry arena Google Car Boston Dynamics Titan Aerospace NET INCOME: US$ 12.92 billion (2013) 8

moving into digital manufacturing Siemens electronics plant in Amberg, Germany Record-low 15 defects per million 99% reliability 100% traceability 9

Industry 4.0 integrates the digital and the real world Digital Product Models DEVELOP, TEST, PRODUCE, DISTRIBUTE Digital Supply Chains CONSUMER, SUPPLIER, PARTNER, MANUFACTURER Cyber-Physical Production Networks MATERIALS, MACHINES, PRODUCTS Smart Factories ERP, MES, ROBOTS, 3D-PRINTERS, SENSORS 10

Industry 4.0 is based on real-time capabilities Production Networks Intelligent components Self-organizing production processes Traditional Production Cyber Physical Systems Ad-hoc changes Industry 4.0 Production Constant monitoring, real-time analysis and instant action 11

Response time is key to success Traditional Historical Analysis Real-time Streaming Analytics required Batch Analytics/ Data Warehouse Intra-day Batch Analytics Continuous inmemory Analytics Low Latency Analytics 100 ms < 1 ms 20 min 30 sec 8 hr 10 sec 1 day 5 min 1 day 15 min 3 days 1 min 1 week 0.5 hour 5 days 2 hrs. 4 weeks 1 day Algorithmic trading Airline operations Call center inquiries Track financial position Supply chain updates Phone activation Refresh data warehouse Trade settlement Build-to-order PC Typical Business SLAs weeks days hours minutes seconds milliseconds Rapid and proactive response is the key to surviving the pace of competition 12

Value New Business Process Dynamics Act Now! Business event Data captured Information delivered Action time Action taken Time SOURCE: Richard Hackathorn The BI Watch: Real Time to Real Value 13

Value New Business Process Dynamics Act Now! Business event Data captured Information delivered Action taken Action time SOURCE: Richard Hackathorn The BI Watch: Real Time to Real Value Time 14

Essential IT capabilities for Industry 4.0 Integration of disparate data sources Storage of data streams Analysis of data streams Visualization of complex data sets Instant or predictive Action 15

Providing Agility to Transform Manufacturing Business Models Digital Agility Layer Markets Innovation Products Customer Processes Integration Fast Big Data IT- & Technology- Silos IT-Systems Productionsystems Factories Warehouses Products 16

Industry 4.0 @ work - The Smart Factory Company Integration Monitoring & Smart Dashboards Digital End2End Processes Right Time Actions Digital Agility Layer M2M-Connectivity M2M-Connectivity Supplier Logistic IT-Systems Productionsystems Factories Warehouse Customer Products 17

Digital Agility Layer - Conceptual Architecture Intelligent Business Operations Business and IT Transformation Adaptive Applications Integration 18

Intelligent Business Operations Platform Features Visualization Constant Monitoring Real-time Analysis Integration Instant Action 19

Transforming Pharma Through Process Automation and Integration Leading Pharma Manufacturer R E S U L T : 75% FASTER PRODUCT APPROVALS from 2 years to 6 months 20

Transforming Manufacturing Through service excellence PROACTIVE & PREDICTIVE MAINTENANCE SAVES $3,5 MILLION PER YEAR 21

Transforming Manufacturing Through production excellence Stability and high product quality FOR 140.000 kilometers OF COPPER WIRE PER DAY! 22

Transforming Manufacturing Through Intelligent Process Prediction based on Big Data Analytics Mastering Big Data in complex sensor networks Volume: Hundreds of terabytes Variety: 1.5 million data objects Velocity: real-time Research project iprodict still ongoing 23

The Digital Enterprise The Moves and Motives of the Digital Leaders 23 examples of how market-leading corporations are transforming into Digital Enterprises 25