Growing trends of technology adoption within the chemical ... · Digital Platforms Invaders Journey...

© 2018 IBM Corporation

Mehtab Gilani

IBM Global Business Services (GBS)

Watson IoT Practice Area Lead

Chemical & Petroleum (C&P)

Growing trends of technology

adoption within the chemical

industry

IBM Confidential and Proprietary © Copyright IBM Corporation 20182

Fourth industrial revolution

Changing competitive landscape

Behavioral changes

New entrants with new business models

The chemicals industry has seen significant disruptions in the last five years driven by digital


Digitization improves

efficiency by applying

technology to individual

resources or processes.

Digital transformation

digitizes whole aspects of a

business producing

customer experiences that

support what individuals

need or want.

Digital Reinvention

incorporates digital

technologies like never before

to create revenues and

results via innovative

strategies, products and

experiences.

Digitization

Digital transformation

Digital Reinvention

To thrive in the face of technology led disruption, chemicals organizations need Digital Reinvention


Experience

New business models

Market activation

Actionable insights

Responsive operations

Orchestrated ecosystems

Restless talent

Emerging technologies

••••••••

Agile Design-driven

Digital PlatformsInvaders

Journey Augmented

mapping reality

Big Cognitivedata

Reach Cyber

market first security

Ecosystems Value

networks

Digital Fluid

acumen employees

Cloud Blockchain

-suite topic 2015 2006 2009 2012 2015 2018Embrace ecosystem and accelerate

Innovation

Optimize Operations & Digital

acumen with real time insights

Attract, grow, retain customers: New

insights & collaborative business models

Reduce costs and prioritize

investment for Innovation

Take long term view: Transform

Financial & Management processes

Flexible talent, analytical &

social: Employee Experience

Each C-suite executive focuses on a complementing set of trends and priorities to reinvent their business models


Differentiated

Embrace ecosystem

and accelerate

Innovation

Optimize Operations

& Digital acumen with

real time insights

Reduce costs and

prioritize investment

for Innovation

Efficient Optimized

Suite Executives

Top 3 Imperatives

Digital Reinvention

Enablers

Optimized Business

Operations & Applications

Efficient & Agile

Infrastructure

Self Service

Virtualization

Orchestration

MeteringSoftware Defined

Data Center

IaaS

ITSM

SecurityBusiness Process

Automation

Data Analytics &

Insights

Workforce Mobility

Business Integration

Business Intelligence

Mobile

DevOps Video

Weather

Social

Blockchain

Design Thinking

Internet of Things

EcosystemIntegration

Cognitive

Innovate with the new ecosystem to create differentiated value, business models and a customer rich experiences


Importance of Technology to Organization’s Strategy

16%

18%

43%

44%

45%

48%

51%

65%

68%

68%

91%

Blockchain

Drones

Augmented reality/virtual reality

Collaboration and social technologies

Machine-to-machine connectivity (e.g., connected devices within anoperation or company)

Robotics

Predictive analytics

Cognitive computing/artificial intelligence

Internet of Things

Mobile technologies and applications

Cloud computing

Source: IBM Institute for Business Value, “IBM Chemicals Digital Transformation Study”, 2017

Chemical companies view a combination of digital technologies as critical to their strategies


TextResearch &

DesignManufacturing

Distribution

& Logistics

Purchasing &

Procurement

Sales &

Marketing

Customer

Service

Chemical Industry and Digital Technologies

• Sensor

technology and

advanced

analytics (data

mining and

modeling) for

energy

management

• Intelligent digital

procurement

tools

• Sensors and advanced

analytics tools for

equipment monitoring

& predictive asset

management

• Augmented reality and

3D

• Process management

and control with

connected systems,

predictive analytics

and automated control

actions

• Production

simulation using 3D

visualization and

virtual reality

• Drones/UAVs

• Robotics

• Intelligent dynamic-

pricing engine

• E-commerce tools,

process digitization

and advanced

analytics

• Advanced

analytics

• Additive

Manufacturing

Chemical companies are using these digital technologies to drive operational efficiency and new growth


100M€Dedicated to forging ahead

with the digital change in the

chemical industry

5 Core capabilities including

Cognitive, Cloud, Industry 4.0,

Blockchain and Quantum

Computing

LeadershipIn overall productivity by empowering

employees to leverage data,

technology, new business models,

solutions and services

Digital Transformation partnership to accelerate business value


Digital transformation is accelerating in every industry

AI / COGNITIVEIoT BLOCKCHAINCLOUD

How can chemical companies apply these digital technologies?


14%

20%

25%

35%

37%

30%

40%

32%

31%

37%

31%

32%

29%

27%

37%

27%

38%

48%

Finance

Asset management

Research and development

Distribution and logistics

Human resources

Supply chain

Manufacturing and engineering

Sales and marketing

Customer management, quality, and warranty

Already invested Will invest this year

Usage of cloud computing across the chemical business

Source: IBM Institute for Business Value, “Converting to the digital formula: Digital Reinvention in chemicals”, 2017; Q16 Does your organization plan to invest in a cloud computing

initiative in any of the following areas?

79%

70%

67%

67%

64%

64%

57%

51%

51%

Chemical companies are applying cloud computing across their value chains


Crucible /ˈkruːsɪb(ə)l/

“a situation in which different

elements interact…

…leading to the creation of

something new”

Cloud

IoT AI

Blo

ckchain

Cloud computing allows chemical companies to

manage newer and larger volumes of asset

information as well as back-office systems. In

addition, cloud computing can help manage

existing available and dormant information.

Cloud brings that capacity without incurring

large infrastructure expansion.

Chemicals leaders are using cloud as a crucible to forge business transformation


Digital transformation is accelerating in every industry




11%

10%

11%

16%

22%

14%

16%

23%

17%

26%

28%

30%

27%

27%

37%

37%

32%

47%

Asset management

Finance


Human resources


Sales and marketing

Supply chain




Usage of IoT across the chemical business

Source: IBM Institute for Business Value, “Converting to the digital formula: Digital Reinvention in chemicals”, 2017; Q18 Does your organization plan to invest in an Internet of Things


64%

55%

53%

51%

49%

43%

41%

38%

37%

Chemical companies are applying IoT across their value chains


Equipment

Operator

Remote

Monitoring

Mobile

Access

Production

Engineer

Control

Center

Maintenance

Data Services

Advanced

Analytics

Optimization

Data Acquisition

ERP, EAM,

SCM, PLM Enterprise Systems

Direct & Indirect Procurement

MRO

Material Management

SRM

Logistics & Distribution Mgmt. Inventory Management

BOM ManagementPerformance Analysis &

ReportingFinancial Control

SCM

Create Sequenced Production Schedule

Demand / Supply Planning & Scheduling

Labor Management

Quality & Traceability Management

Production Planning

Finished Goods Management EAM

Printers

Assets Robots

PLCs /Controllers

Plant Floor Systems

Plant Floor Integration

Line Sequencing /Re-sequencing

Broadcast

Buffer Control(PBS, WBS)

WIP Tracking

Order Status / Management Data Collection

Flow Control Reporting and AnalysisAsset Monitoring &

Maintenance

SCM

Final Finish

Error Proofing Material Management

Quality ManagementTrack & Trace

Part Pick / Kitting /Labeling

MES / ALC

Material Handling

BarcodeScanner

RF Antenna& Tags

Plant Floor IntegrationIntegration Bus – Manufacturing Pack

IntegratedOperations

Information ModelMDM Data Warehouse

Business Rules Predictive AnalyticsModeling / Simulation Optimization & Decision Mgmt

GIS Services

Streaming Data Integration Bus AdaptersFile Transfer

Business Process Mgmt

Role Based VisualizationWorkflow

Alarms / Alerts Realtime Visualization

Reports

MES, CNC,

PLC

Data Acquisition

The convergence of operational technologies (OT) and information technologies (IT) will drive innovation in manufacturing


IoT Platform Services

Asset

Insight

Business

Insight

Business Analytics

Services

1. Anomaly detection &

prediction

2. Maintenance

optimization

3. Operation performance

optimization

Business Outcomes

Asset

Optimization &

Workflow

Efficiency

Statistic

Model

Result

Metrics

Physical Model

Big data (sensors)

Model Blending

Data Input

Asset sensor Data

Sensor: Vibrations, pressure,

“speed”, gauge

GPS and/or motion

Maintenance Data

Environment Data

Asset profile (locations,

model, age, etc.)

Maintenance history

Geometry / Topology

Weather conditions (e.g., wind,

temperatures, humidity,…)

Operation Plan Data

Operation schedule

Feedstock and prices

Physical/Statistical

Analytics Services

Prediction /

Prescription

Reduced NPT &

Downtime

Best Operational

parameters for

optimal

performance

Risk Mitigation

Compliance1. Physical models

• Physical & chemical models

• Physics of failure

2. Statistical models

• Dynamic models

• Machine Learning

• Probabilistic graphical models

Market Data

Demand forecast

Price projection

Chemical companies will leverage IoT capabilities to horizontally integrate global operations to drive new sources of effectiveness and efficiency as well as explore business model enhancement


Near Real time monitoring of temperature,

pressure, humidity and prevent seed loss by

tracking the location of trucks


6%

9%

11%

16%

10%

10%

10%

18%

15%

24%

21%

24%

24%

32%

33%

34%

29%

40%

Finance

Human resources

Asset management



Supply chain

Sales and marketing




Usage of cognitive computing across the chemical business

Source: IBM Institute for Business Value, “Converting to the digital formula: Digital Reinvention in chemicals”, 2017; Q14 Does your organization plan to invest in a cognitive computing


55%

47%

44%

43%

42%

40%

35%

30%

30%

Chemical companies are applying AI / cognitive computing across their value chains


Order

Production

Fulfillment

Delivery

Consumption

Forecast

Purchase

Cognitive forecasting tool

projects product trends

using internal and external

data and news

Exogenous data, analytics, IoT

and Sensors detect potential

issues with goods in transit

Cognitive Order Management

provides prescriptive order commits

based on delivery options and

predicted customer behavior

Dynamic Scheduling: Real-time

connection between incoming orders

and production schedule reduces lead

times and inventory

Smart Storage Devices at

customer sites notify ChemCo

when materials are consumed (or

not)

Blockchain-enabled supplier

visibility and purchasing

improves responsiveness

and surety of supply

Smart Storage Devices and

analytics improve picking

decisions and overall inventory

quality

Future supply

availability

Demand

signals

Delivery confirmations Right product, right documentation

Near-term production

completions

Demand trends to buy

into

Real-time order feed

Customer

Blockchain, AI / cognitive and analytics offer the promise to dramatically improve supply chain performance by improving end to end visibility and analytics enabled decision support


Machine data from

PLCs, and systems

Equip./Asset data

Weather, social and

other types of data

Exogenous data

Sensors provide real-

time information

Sensor data

Dig

ital T

win Cognitive

Analytics

Natural

Language

Processing

Text

Analytics

Machine

Learning

Image/Video

Analytics

Utilized Performance, Operations & Asset

data to drive Insight for making Cognitive

decisions over operations, people & process

IBM Watson IoT Platform

Recommend

actions that

initiate

decisions

based upon

real time Data

Providing EAM data such as

historical asset and

maintenance data

Maintenance Efficiency

Providing Personal and

Environmental sensor

data

Workforce Safety

Providing Integrated

Operations & logistic data

Supply Chain & Logistics

Product

Quality

Planning &

Scheduling

Process

Optimization

Anomaly

Detection

User In

terfa

ce

Edge A

naly

tics &

Ecosyste

m

Project

Health

Our Industry 4.0 solutions and services are built off our cognitive manufacturing platform


Piloting a platform that uses blockchain technology to track the shipment of goods

“provide information about the position and movement of goods within the supply chain”


We recommend that chemical companies embrace digital drivers

New focus: Employ advanced analytics across

organization and build new business models

New expertise: Build the right talent for an

agile and innovative organization and actively

participates in ecosystems

New ways to work: Digitize product, services

and processes across organization and employ

design driven innovation

New experiences: Create experiences that

customers desire and want

New

Focus

New

Ways to

Work

New

Expertise

Experience


Thank You

Growing trends of technology adoption within the chemical ... · Digital Platforms Invaders Journey...

Documents

Transcript of Growing trends of technology adoption within the chemical ... · Digital Platforms Invaders Journey...