Get Started Today with Smart Connected Operations
Some Key Messages Industry 4.0, the IIoT and Smart Manufacturing are going to do to today s manufacturing business what the industrial revolution did to blacksmiths You may go to bed as a manufacturer but one day your going to wake up a software & services company $ LNS Research 2017
Agenda About LNS Research DX, IIoT, & Smart Connected Operations: It s Already Here ERP, MES, and Analytics as the Foundation Use Cases, Benefits, and Actionable Recommendations
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LNS Research s Council Members Include
Research Demographics: Metrics that Matter Survey 600+ executives and senior leaders took LNS Research s IIoT Survey in 2015 & 2016
IIoT and Smart Connected Operations: It s Already Here
Traditional Enterprise Architecture LNS Research 2016
Industry 4.0 and Smart Manufacturing Governments of U.S. and Germany have invested $1B+ Smart Manufacturing Leadership Coalition (SMLC) / IIC Industry 4.0
What is the IoT and IIoT IIoT refers to the network of networks encompassing IP connected people, processes, and things to enable new cyber-physical systems Enabled by ubiquitous connectivity, scalable compute, and pervasive sensing. LNS Research 2016
Industrial Internet of Things Platform Platform providers are emerging Security is embedded at each level
A New Approach is Needed LNS Research 2017
Digital Transformation Framework
What are Smart Connected Operations
How does IIoT Data Flow? Traditional Control Some IIoT Even Split Mostly IIoT Other Exclusive IIoT 2/3 of Industry Moved from Traditional Hierarchical Systems Means OEM Access
The Impact of IIoT Today 2015 year of education 2016 year of pilot 2017 year of adoption
Current IIoT Adoption 3/4 of market is eventually expecting to Invest in IIoT 10% increase last year
Crossing the Chasm We are at the tipping point of IIoT adoption Early adopters are spread across industries
ERP, MES, and Analytics as the Foundation
ERP Leads to the Cloud Which best describes your current and planned ERP deployment model? On-premise Public cloud hosted by software vendor Private cloud Public cloud hosted by third party 4% 7% 11% 25% 25% 30% 34% 64% 0% 10% 20% 30% 40% 50% 60% 70% Planned Current Flexible cloud based ERP can form foundation of Smart Connected Operations
MOM/MES Deployment Follows - Slowly On- Premise Private cloud Public cloud hosted by software vendor Public cloud hosted by third party 3% 3% 21 % 74 % Flexible cloud based MOM/MES is still a ways off for many companies LNS Research 2016
Analytics Expertise Strong Team External Consultants Stumbling Block Don t Know Hire Vendor Provided Manufacturers aren t honestly assessing internal analytics capabilities
Understanding Big Data and Machine Learning
Analytics OEM Competitive Advantage Analytics are understood in terms of the questions that can be answered Big Data & ML driving down costs
Data Used in Corporate Analytics Even companies using manufacturing data in corporate analytics include very little unstructured data.
Algorithms Used in Manufacturing Most algorithms today are for structured data and Descriptive or Diagnostic analytics Adoption of Big Data predictive analytics algorithms is still woefully low
Use Cases, Benefits, and Actionable Recommendations
Real World Example # 1 - Internalized How will you adapt your plant & operations when: Your suppliers do all their own maintenance You buy capacity not tools
Real World Example # 2 Your partners become competitors
Real World Example # 3 Working smarter & safer Redefining Manufacturing Execution
Potential Benefits: One Year Financial Improvements Many companies are outperforming the typical 1%-2% yearly performance improvement.
Potential Benefits: One Year Operational Improvements Many operational metrics can improve even more than financial metrics
Insights and Actionable Recommendations The IIoT is real and your competitors already started. Begin the Digital Transformation journey today. Smart Connected Operations is not rip and replace. ERP, MES, and Analytics can be the starting point. IIoT Platforms are designed to start small with pilots
Thank You!! LNS Research LNS Research 2015