Konica Minolta Business Innovation Center

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Konica Minolta Business Innovation Center Advance Technology/Big Data Lab May 2016

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Konica Minolta BIC Technology and Research Initiatives Data Science Program Technology Trials (Technology partner Eco- System) University Program SDK, API, Forum Big Data Lab (BDL) built on ATL Cloud Platform 5

Big Data Lab Enable to quickly procure, provision, configure and deploy big data platform and analytical engines using collection of 3rd party technology and components A place to bring technology partners to integrate their data analytics applications, solutions and show live demonstration of data analytics services and hosted vertical solutions Test-bed for rapid prototyping, interoperability testing and evaluation of data analytics technologies, applications and services Hosting facility for rapid PoC development, testing and demonstration Enable rapid technology transfer of vertical solutions to KM BUs for scaling and productization 6

Big Data Infrastructure BATCH PROCESSING ANALYTIC SQL SEARCH MACHINE LEARNING STREAM PROCESSING 3 RD PARTY APPS SPARK MAPREDUCE IMPALA SOLR MAHOUT SPARK HDFS HBASE BIG DATA Platform Cloud Platform 7

Big Data Cloud Performance and Integrity Management Predictive Maintenance Image Analysis (Medical & Manufacturing) Real time Anomaly Detection & Streaming Analytics Prediction Analytics Deep Learning BATCH PROCESSING SPARK MAPREDUCE ANALYTIC SQL IMPALA SEARCH SOLR MACHINE LEARNING MAHOUT STREAM PROCESSING SPARK 3 RD PARTY APPS HDFS HBASE BIG DATA Cloud 8

Applied Analytics IT Optimization Maintenance Services Healthcare Industrial/Manufacturing 9

IT Services Optimization: Application Performance and Integrity Management Real Time Business Insight Delayed business insights cost companies millions of dollars 10

KM s Self Service Cloud KONICA MINOLTA Built on Predictive Analytics Platform With Augmented Reality KONICA MINOLTA SERVICE CLOUD 11

Predictive Maintenance Printing/Robots 1 2 3 4 Raw data fed into Predict Solution: Collected sensor data from deployed machines, including I/O and internal measured states and failure modes. Printer prediction target signals are failure logs and yield metrics. Printer prediction target events are occurrences of failure modes and yield thresholds. Failure and yield prediction: Predictive maintenance reducing lost production. Revenue forecast per deployed asset based on actual field data. Classification/grading using machine history 12

Application Performance and Integrity Management IT OPTIMIZATION

Miss Nothing Data Collection Plus: One collector per OS also collects ANY APPLICATION ANYWHERE We See Every Event Across Configuration Data Log Files Application Data (Stats D) System Metrics Plugins Every Socket Every Thread Every File Operation Every Registry Operation Every Network Connection Every CPU Call All Response Times, Transactions Bandwidth, Memory, Page Faults The most detailed data in the industry All Correlated Into A Single Time Series 14

Apply Analytics to find the Problem Real Time Controls Millions of metrics from IT Infrastructure & Applications. Real time anomaly detection across millions of metrics Automatically correlate related metrics to avoid event storms Predict outcomes to enable preventive actions Machine Learning Anomaly Detection Predictive Analytics 15

Automatic Anomaly Detection in Five Steps Metrics Collection Universal, scale to millions Normal behavior learning Abnormal behavior learning Behavioral Topology Learning Real Time Insights 1 2 3 4 5 16

System features Universal Any type of time-series data Tracks millions of metrics; no need to prioritize which metrics to track Automatic Automatically learns no thresholds to set Accurate alerts in real time Composite metrics track advanced business logic Concise Unique IP quickly & accurately learns normal behavior Automatic metric correlation reduces noise for rapid resolution Together these lead to Self Service Analytics with Swift TTV 17

Normal Behavior Automatic Learning Normal Behavior Learning should take into account seasonality, different signal types 18

Static Thresholds versus Anomaly Based Alert Anomaly Based Alert will find the problems hours before the static based one 19

Behavioral Topology Learning and Correlation Viewing correlated metrics in context enables correct problem identification 20

Predictive Maintenance and Service Optimization Maintenance Services

Disruptive Technologies for Supply Chain Management 22

Market Size World's GDP in 2014 is expected to reach $74 trillion, but the value of all assets is much higher. Maintenance spend alone is estimated at $447 billion. Managing assets efficiently makes a difference! 23

Predictive Maintenance and Service IOT Operational Data Sensor measurements Geospatial data Diagnostics Events Performance metrics Battery status Business & Product Data Sales contract Warranty information Maintenance/ Service history Customer profile Dealer events Cost and risk Unstructured data Weather forecast Traffic information Web Blog Entries Machine health monitoring Design improvements Early warnings to prevent downtimes Prioritized maintenance and service activities Optimized warranty and spare parts mgmt Benchmarking 24

Use Case: Printers Adjust service intervals according real-life usage Improve reliability with predictions derived from actual usage conditions Reduce inventory Significant reduction in cost per service event Customer self service with utilization of the HUD, wearables and new automated workflows and communications capabilities Production: use data to further improve quality 25

SMART Maintenance thru Logistics Optimization, Inventory Reductions and 3D Printing of Parts Major Disruptor in Global Supply Chain and Next Multi-Billion Dollar Opportunity

Traditional Supply Chain 27

3DP Supply Chain 28

Flexible and Smart Manufacturing The real potential is to transform the way we manufacture by disrupting the age-old supply chain and replacing it with something entirely new: a globally connected, local supply chain. Manufacturers are using 3-D printing at their facility, reducing stock levels and warehousing space. Some vendors are installing 3-D printers at their customers' facilities, providing the software designs for products and parts to be manufactured as needed. 29

Market Sizing The Wohler report estimates that the 3-D printing industry will be a $5.2 billion market in the next 5-10 years 30

3D Printing and Supply Chain The influence on inventory and logistics is that you can "print on demand," meaning that you don't have to have the finished product packed on shelves or stacked in warehouses any longer. This reduces the cost of distribution from component to final assembly, while reducing scrap and improving assembly cycle times. The traditional supply chain model is founded on established constraints of the industry, which are the efficiencies of mass production, the need for low-cost, high-volume assembly workers, real estate to house each stage of the process and so on. 3-D manufacturing eliminates those constraints. 3-D printing abolishes the need for high volume production facilities and low level assembly workers, thereby cutting out at least half of the supply chain in a single blow. It is no longer efficient to ship products across the globe to get to the customer when manufacturing can take place almost anywhere at the same cost. This not only affects the manufacturing facility, but the distribution warehouse and trucking. With the spotlight on driving down costs and increasing consumer acceptance, 3-D printing s role is showing up in innovative supply chains and these advances are opening up new opportunities. 31

Use Case Aerospace: $3.4 billion in MRO savings Reduction in total cost of parts, $bil 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 A global aerospace MRO costs could be reduced by up to $3.4 billion, assuming that 50% of parts are printed. Even if 15% of aerospace replacement parts could be printed, we could expect over $1 billion 0.0 10% 20% 30% 40% 50% Implementation rate, % of parts inventory 32

Use Case Airline: $1.8B in incremental pre-tax profit Benefit to cash, $ bil 0.30 0.25 0.20 0.15 0.10 0.05 0.00 10% 20% 30% 40% 50% Implementation rate, % of parts inventory Assuming that half of MRO materials are 3D printed, the global airline industry could realize about $1.8 billion in additional pre-tax profits annually as a result of the printing technology savings. Incremental pre-tax profits could top $1 billion for the global industry, even at a more conservative 3DP penetration rate. A third analysis suggests that the airline industry could benefit from 3D printing through lower global airline industry inventory costs. This analysis estimates additional liquidity of between $50 million and $250 million for the industry, depending on 3DP penetration rate. 33