Smarter Planet Meets Manufacturing: Big Data and Analytics

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Smarter Planet Meets Manufacturing: Big Data and Analytics Bruce Anderson General Manager Global Electronics Industry, IBM

As we look at the electronics industry landscape today, there are at least five key mega-trends driving change. Drivers of Change (Mega-Trends) Technology Growth Markets Globalization Sustainability Customers Page 1

These mega-trends present both challenges and opportunities. Mega-Trends Technology Key Industry Challenges & Opportunities Managing Complexity Managing complexity & advances in technology while enabling dynamic value chains Growth Markets Globalization Sustainability Consumers Ecosystem-Wide Operations Enhancing ecosystem-wide operations & performance; optimizing asset utilization The Demanding Consumer Satisfying rising consumer expectations and executing in globally dispersed markets From Products to Services Expansion beyond products to new business models and service delivery platforms Page 2

The growing velocity of the volume, variety, and granularity of information is driving new, unprecedented complexity Page 3 Image provided by Go-Globe.com at http://www.go-gulf.com/blog/60-seconds

Volume of Digital Data Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries. By 2010, the codified information base of the world is expected to double every 11 hours. Page 4

Variety of Information Today, 80% of new data growth is unstructured content, generated largely by email, with increasing contribution by documents, images, and video and audio 38% of email archiving decisions receive input from a C-level executive and 23% from legal/compliance professional Page 5

Velocity of Decision Making 70% of executives believe that poor decision making has had a degrading impact on their companies performance Only 9% of CFOs believe they excel at interpreting data for senior management Page 6

With this explosion in information organizations are operating with blind spots Business leaders frequently 1in3 make decisions based on information they don t trust, or don t have Volume of Digital Data Business leaders say they don t have access to the information 1in2 they need to do their jobs Variety of Information 83% of CIOs cited Business intelligence and analytics as part of their visionary plans to enhance competitiveness of CEOs need to do a better job capturing and understanding information rapidly in order to 60% make swift business decisions Velocity of Decision Making Page 7 Source: IBM Institute for Business Value

We can sense and see the exact condition of everything in Smarter Manufacturing. Instrumented Interconnected Intelligent 87 trillion There are 87 trillion measurements performed world wide in semiconductor plants annually 2 million There are 2 million RFID s embedded tags world wide in semiconductor plants use to track product 130 billion There are 130 billion Chips produced in the world wide in semiconductor plants annually Page 8

Smarter Manufacturing can communicate and interact with in entirely new ways. Instrumented Interconnected Intelligent 1.4 quadrillion 1.4 quadrillion pieces of data transfer annually in semiconductor plants 119,000 There are 119 thousand servers worldwide in semiconductor plants 5.73X There are 143 thousand miles of cable to support the communication network 5.73 times the Earth s circumference Page 9

Our world is becoming smarter Instrumented Interconnected Intelligent creating a need for a new kind of intelligence Page 10 10

Fishkill video Page 11

Smarter Manufacturing Characteristics and Benefits Characteristics Benefits Instrument Manage V ariability Interconnect Drive V elocity Intelligence Create Meaningful V isibility Page 12

Imagine what can change when manufacturing is Instrumented Bridge and Fill the GAPS at every level and manage V ariability ISA 95 Manufacturing Technology Stack ERP vs. L4 Manufacturing Network Planned Actual L3 MES Plant L2 SCADA/HMI Line Realize lower cost structure through Instrumentation. L1 L0 PLC/Controls Equipment and Material Sensors/Actuators Process and State Collecting the correct data and measuring against expected performance Immediately breaks down the wall between Planned and Actual performance Page 13 Measure and monitor Everything because Everything Matters!

Imagine what can change when manufacturing is Interconnected Immediately drive V elocity by reducing unnecessary buffers Eliminate buffers when you: Know what to do next Sustain priority Buffer 35 Buffer 20 Manage constraints Leverage capability Buffer 45 Connect and Synchronize Everything because Everything Matters! Buffer 10 Buffer 20 Page 14

Imagine what can change when manufacturing is Intelligent You can only fix problems you can see with meaningful V isibility M F G N E T W O R K VISIBILITY More than dashboards: Predictive Alerts Anticipate performance Accurate System Prediction Collaborate across the Mfg. network Intelligence at the point of decisioning Apply Analytics to Everything because Everything Matters! Would your company pass the test? Page 15

Smarter Manufacturing delivers V 3 thru instrumentation, interconnection & intelligence because everything matters. Page 16

Something Profound has Happened Manufacturing tools have evolved and converged; enabling us to meet the challenge of manufacturing volatility head on! Use resources effectively by managing: Turn cash quickly by driving manufacturing: Be predictive and adaptable with meaningful: V ariability V elocity V isibility Page 17

Business Analytics is more than just Business Intelligence its increasing the level of analytics sophistication allows an organization to improve results and adopt new ways of working Analytics Sophistication Use structured and unstructured Data Numeric Text Image Audio Video Captured Detected Inferred Made consumable and accessible to everyone, optimized for their specific purpose, at the point of impact, to deliver better decisions and actions through: What happened? How many, how often, where? What exactly is the problem? What actions are needed? Descriptive Analytics What could happen? Simulation What if these trends continue? Forecasting What will happen next if? Predictive Modelling Predictive Analytics How can we achieve the best outcome? Optimization How can achieve the best outcome and address variability? Stochastic Optimization Prescriptive Analytics Page 18

Can we design a computing system that rivals a human s ability to answer questions posed in natural language, interpreting meaning and context and retrieving, analyzing and understanding vast amounts of information in real-time? Page 19

Watson video here Page 20

Watson s analytics is more than search Web search returns a ranked list of possible web pages containing the requested data Search engines results are based on popularity and page ranking User must still analyze results sift through a web page -- to find the best answer Watson s analytics understand the structure and wording of the question asked Finds a specific answer Ranks its answer and provides a level of confidence that it is correct based on experience Watson answers natural language questions Can contain puns, slang, jargon and acronyms that must all be evaluated Page 21

Automatic Learning From Reading Sentence Parsing Generalization & Statistical Aggregation Volumes of Text Syntactic Frames Semantic Frames subject verb object Inventors patent inventions (.8) Officials Submit Resignations (.7) People earn degrees at schools (0.9) Fluid is a liquid (.6) Liquid is a fluid (.5) Vessels Sink (0.7) People sink 8-balls (0.5) (in pool/0.8) Page 22

Find the answer to a question Question Answer, Confidence Clue/ Category Analysis Primary Search & Candidate Generation 1000s of Candidates Shallow Scoring & Filtering 100s of Candidates Supporting Evidence Retrieval 10ks Pieces of Evidence Deep Evidence Scorers 100ks of Scores Final Merging / Ranking 100s of Hits Distributed Search Engine 10ks of Hits Statistical Models DeepQA System Page 23 Reads huge volumes of text to acquire wide range of knowledge 100s of Millions of facts inform and refine text interpretation

Keyword Evidence In May 1898 Portugal celebrated the 400th anniversary of this explorer s arrival in India. In May, Garyarrived in India after he celebrated his anniversary in Portugal. arrived in celebrated Keyword Matching celebrated In May 1898 Keyword Matching In May 400th anniversary Keyword Matching anniversary Portugal Keyword Matching in Portugal This evidence suggests Gary is the answer BUT the system must learn that keyword matching may be weak relative to other types of evidence arrival in India Keyword Matching India explorer Gary Page 24

Deeper Evidence In May 1898 Portugal celebrated the 400th anniversary of this explorer s arrival in India. On the 27 th of May 1498, Vasco da Gama landed in Kappad Beach Search Far and Wide Explore many hypotheses celebrated Find Judge Evidence Many inference algorithms landed in Portugal May 1898 400th anniversary Temporal Reasoning 27th May 1498 Stronger evidence can be much harder to find and score arrival in India explorer Statistical Paraphrasing GeoSpatial Reasoning Date Math Paraphrase s Geo- KB Kappad Beach Vasco da Gama Page 25 The evidence is still not 100% certain.

DeepQA: The Technology Behind Watson Generates and scores many hypotheses using Natural Language Processing, Information Retrieval, Machine Learning and Reasoning Algorithms. These gather, evaluate, weigh and balance different types of evidence to deliver the answer with the best support it can find. Question Answer Sources Primary Search Candidate Answer Generation Answer Scoring Evidence Sources Evidence Retrieval Deep Evidence Scoring Learned Models help combine and weigh the Evidence Models Models Models Models Models Models Question & Topic Analysis Question Decomposition Hypothesis Generation Hypothesis and Evidence Scoring Synthesis Final Confidence Merging & Ranking Hypothesis Generation Hypothesis and Evidence Scoring Answer & Confidence Page 26

From battling humans at Jeopardy! to transforming business Page 27

Watson s capabilities for business applications Watson s technology is a powerful tool for information gathering and decision support Responds to questions in natural language Returns a ranked list answers based on confidence Provides summaries of justifying or supporting evidence Business applications could include: Customer Relationship Management Regulatory Compliance Contact Centers Help Desks Web Self-Service Fighting Chronic Disease Reducing Customer Churn Reducing Traffic & Pollution Business Intelligence Reducing Energy Dependence Averting Fraudulent Transactions Preventing Contamination Streamlining Supply Chains Page 28

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