MAKING A MORE INTELLIGENT, INTERCONNECTED …cdn.bdigital.org/PDF/FiC2016/PPT/DIA15_4_IBM.pdfMAKING...

MAKING A MORE

INTELLIGENT,

INTERCONNECTED AND

COGNITIVE INDUSTRYINDUSTRY 4.0

Juan Ramón Gutiérrez Villar

Industry 4.0 Lead, SPGI

AGENDA

CxO Survey – Industrial Sector

Industry 4.0: IBM PoV

IoT in industries: examples

Beyond 4th revolution…

©2015 IBM Corporation3

“There’s no one technology that matters

most. It’s connecting the dots between

them all that’s important.”Mike Mancuso, Executive Vice President & CEO, Philips Healthcare, United States

“There’s no one technology that matters

most. It’s connecting the dots between

them all that’s important.”Mike Mancuso, Executive Vice President & CEO, Philips Healthcare, United States


of CxOs in the Industrial Products

industry plan to expand their

partner network


OF GLOBAL CXOS ARE EXPERIMENTING WITH DIFFERENT

BUSINESS MODELS OR THINKING OF DOING SO

OF GLOBAL CXOS ARE EXPERIMENTING WITH DIFFERENT

BUSINESS MODELS OR THINKING OF DOING SO


“The biggest threat is new competitors

that aren’t yet classified as competitors.”Piotr Ruszowski, CMO, Mondial Assistance, Poland

“The biggest threat is new competitors

that aren’t yet classified as competitors.”Piotr Ruszowski, CMO, Mondial Assistance, Poland

©2015 IBM Corporation 14 June 20166

NOBODY SAID IT WOULD BE EASY: CXOS FACE MANY

OBSTACLES WHEN DEPLOYING NEW BUSINESS MODELS

NOBODY SAID IT WOULD BE EASY: CXOS FACE MANY

OBSTACLES WHEN DEPLOYING NEW BUSINESS MODELS

HOW TO CREATE A PANORAMIC PERSPECTIVEHOW TO CREATE A PANORAMIC PERSPECTIVE

Form your own futures squad and leverage existing

“things”

Take an ecocentric view of the world

Cultivate your cognitive capabilities

AGENDA

CxO Survey – Industrial Sector

Industry 4.0: IBM PoV

IoT in industries

Beyond 4th revolution…

THE BIRTH OF INDUSTRY 4.0?

Ind 4.0 - A German hi-tech

strategy project in 2013

Similar goals to the Smart Mfg

Leadership Coalition (US)

A collective term for technologies & concepts of value chain organization

A term invented by Kevin

Ashton in 1999

Cyber-physical

systems monitoring physical

processes, and making

decentralized decisions

Design based on interoperability,

virtualization, decentralization, real-

time capability, service orientation,

and modularity.

Enables

Network of physical objects or

"things“ embedded with electronics,

software, sensors and connectivity to

exchange data and other business

processes

and SOA

SINCE 1999…MANY INDUSTRY FLAVORS & TASTES

11

FROM “ALIKE” TO “ONE-BY-ONE” MOVING TO “JUST FOR ME”

In the beginning,

we just made them all alike(efficient, but it didn’t meet all customers’ needs)

…or we built them one-by-one

for each new customer (it met the needs, but was very expensive)

Now customers demand

increasingly specialized and

customized products and costs

are going through the roof!

Source: http://minicoopergraphics.com/

12

Mass Customization

From one car for all to a unique car for each of us!

Sources: Acatech: Recommendations for implementing the strategic initiative Industrie 4.0, April 2013;Gartner: Industrie 4.0- The Ten Things the CIO Needs to Know; Deutsche Bank

Research: “Upgrading of Germany’s industrial capabilities on the horizon “, April 2014

Autonomous

Systems

Internet of

Services

Analytics

& Cognitive

Flexible

Mfg

Internet of

Things

+

Internet of

People Industry 4.0

�Ability to connect and manage

devices

�Near real-time data collection

� Insights of what is happening

�New business models

� Flexible machines

� 3D printing

�Machine to machine

�New standards and

protocols

� The API economy

�Vertical / horizontal integration across value

chains

�New delivery channels and business

models

�Embedded in equipment, products and

services

�Predict what may happen

�Prescribe actions for best outcomes

�Self learning

�Communicate in natural language

�Smart and networked products

�Ability to communicate thru the Internet

�Self diagnose / self awareness

CAPABILITIES REQUIRED TO ENABLE THE 4TH INDUSTRIAL

REVOLUTION

13

INDUSTRY CHALLENGES; OR NOT THAT SO...

�Maturity level of required technologies

� The technology base to build large-scale safety-critical CPS-based solutions correctly, affordably, flexibly, and on schedule is not there yet. YES IT IS!!!

� Difficult to quantify business benefits for Industry 4.0

� New solutions require significant changes & lack clear cost/benefit case. PARTNERHIP is the key.

� Industry standards

� Establish: Define and agree upon / Vendor & Government Support. E.g. MQTT

� New employee skills & qualifications required

� A digitized enterprise with new processes & business models

�Company cultures may inhibit collaboration and adoption of new technology

14

IBM INDUSTRY 4.0 APPROACH

IBM Watson IoT and Industry 4.0

On December 2015 IBM opens its Global

Site for Watson IoT in Munich, to extend

its ecosystem, capabilities and offering

around Watson

This is one of the biggest investments

IBM has carried out in Europe in the last

two decades. This will allow:

• Building the first innovation center in

IoT and Watson in Europe.

• Increase its relationship with clients

and partners.

• Build new solutions in Cognitive IoT.

• Develop industry specific solutions.

+ 1000 experts in Múnich for IoT,

Cognitive and industry 4.0

de datos – integración, automatización y análisis

10/06/2016

Composable

smart mfg solutions

(aka CPS systems)

Edge/Gateway

Internet of Services

Existing Systems

Public Shared

Services

Internet of (Operations) Things

IOT, IOS, & IOP USING THE IOT PLATFORM (WATSON IBM PLATFORM)

Internet of People

connecting

machines, people

and services

to achieve levels of

productivity and

specialization

Application

Mgt Svcs ManagedAPIs

Registration

& Messaging

Partners Customers

Developers

Employees

More People

Real-timeAnalytics

AnalyticsData Storage

ServicesCloud Operating

Environment

Cognitive

Services

Cyber Security

CPS Platform Support

Composition

& Configuration

Web/Mobile

UI Support

EILM

Predictive

Maintenance

Operations

AnalyticsEmployee

Safety

Predictive

Quality

Service

Advisor

(Deploy and run on premise (factory or enterprise), on the cloud)

Example CPS Solutions

17

enabling

innovation and

differentiation.

EILM

Structured and non-

structured Information

from Operations devices

systems combined with a

Watson “corpus” takes

knowledge beyond

human capabilities to

create advisors for

operators and

technicians. Edge/Gateway

Internet of (Operations) Things

ManagedAPIs

Registration & Messaging

Partners

Developers

Employees

More People

Real-timeAnalytics

Analytics Data StorageServices

Cloud Operating

Environment

Cognitive Services

Cyber Security

Composition

& Configuration

COGNITIVE COMPUTING HELPS TO ACCELERATE INDUSTRY 4.0

✓

✓Application

Mgt Svcs

Web/Mobile

UI Support

CPS Platform Support

Predictive

Maintenance

Operations

Analytics

Employee

Safety

Example CPS Solutions

Predictive

Quality

Service

Advisor

✓

18

Internet of PeopleInternet of Services

Existing Systems

Public Shared

Services

Tabulating

Systems Era

Programmable

Systems Era

Cognitive

Systems Era

1900 1950 2011

WATSON IS USHERING IN A NEW ERA IN INDUSTRY

19© 2015 IBM

WHY WATSON NOW IN INDUSTRY?

80%of the world’s data today is unstructured

90% of the world’s data was created in the last two years

20%is the amount of data traditional systems leverage

20© 2015 IBM

COMPANIES ARE DRIVING TOWARD PREDICTIVE INSIGHT AND BEYOND

DescriptiveGet in touch with reality, a single

source of the truth, visibility

PredictiveUnderstand the most likely future

scenario, and its business implications

PrescriptiveCollaborate for maximum business

value, informed by advanced analytics

CognitiveDeeply analytical computing systems

that learn & interact naturally with people

What happened?

What will happen?

What should we do about it?

How do we optimize a dynamic,

Big Data environment?

Volume (data at rest)

Velocity (data in motion)

Variety (many forms of data)

Veracity (data in doubt)

Watson Analytics

ASK DISCOVEREXPLORE DECIDE VISUALIZE

Ask questions for

greater insight

Natural language

dialogue

Natural language

dialogue

Find external

information in real

time

Monitor social

sentiment

Find rationale for

given responses

Prompt for inputs

to yield improved

responses

Ingest and analyze

domain sources,

info models

Evidence-based

decisions with

greater confidence

Consolidate and

visualize

information

across enterprise

applications and

big data assets

Watson enables five classes of cognitive services working across structured and

unstructured data with Natural Language Processing and Machine Learning

WATSON’S 5 CORE CAPABILITIES

https://www.youtube.com/watch?v=_Xcmh1LQB9I

https://www.youtube.com/watch?v=M2RXDI3QYNU

Watson: How it Works?

Cognitive robot

BLUEMIX: IBM’S CLOUD PLATFORM

Bluemix service categories

Developer experience

• Rapidly deploy and scale

applications in any language.

• Compose applications quickly

with useful APIs and services and

avoid tedious backend config.

• Realize fast time-to-value with

simplicity, flexibility and clear

documentation.

Enterprise capability

• Securely integrate with existing

on-prem data and systems.

• Choose from flexible

deployment models.

• Manage the full application

lifecycle with DevOps.

• Develop and deploy on a

platform built on a foundation of

open technology.

Built on a foundation of open technology.

Build, run, scale, manage, integrate & secure applications in the cloud

• DevOps

• Big Data

• Mobile

• Watson

• Business Analytics

• Database

• Web and application

• Security

• Internet of Things

• Cloud Integration

• API management &

Integration

23

Security

Analytics

Commerce

Watson

Healthcare

A WIDE RANGE OF SERVICES FROM IBM AND THIRD

PARTIES

Preparado para la Empresa

Contenido Diferenciado

Transformación Cultural

El inicio de una nueva forma de trabajo

EmpresasStartups

Productividad Instantánea

Comience poco a poco, crecimiento sin límites

Sofisticado, servicios de fácil uso

Marketplace

¿QUÉ ESTÁN HACIENDO LOS CLIENTES CON BLUEMIX

INDUSTRY 4.0 EXAMPLES

© 2015 IBM 27 Baosteel & IBM Confidential

CPS

Production Optimization

Smarter Operations

Orders

� Customer

� Order quantity,

price, due date

� Production routing

CPS

Equipment Health

CPS

Worker Safety

• Sub-assembly / component lifetime wear indicators

• Leading failure indicators• Engine alerts• Overload / over speed alerts• Permit to work• Use of safety equipment• Unsafe condition of equipment

• Fatigue• Alertness• Fall / Injury• Production real-time status• Equipment utilization• Best time to perform maintenance

• Worker productivity

INSIGHTS

Production data

� Production status

� Inventory (WIP, FG..)

� Equipment status

� Workstation status, etc.

Worker equipped

with wearables

Example: Equipment Health, Worker Safety, & Production Optimization


• Smart Operations of Industry 4.0, Cyber-Physical Systems monitor physical processes and make

decentralized decisions.

• Over the Internet of Things, Cyber-Physical Systems communicate and cooperate with each other

and humans in real time.

• Via the Internet of Services, both internal and cross-organizational services are offered and

utilized by participants of the value chain.Wikipedia definition

EXAMPLE: MINING OPERATIONS


Internet of Services: services providers

(maintenance services, condition

monitoring services) that are

performed by specialized crews within

the company or by external parties.

These services guarantee the continuity

of the operations over time and in line

with the safety standards

Internet of Things: it provides the

medium to connect the cyber physical

systems to the real world and also to

enable the cyber physical systems to

communicate to each other

autonomously to execute other tasks of

high value

EXAMPLE: MINING OPERATIONS

30

EXAMPLE: SMART FACTORY

31

Data

Historian

Integration Layer1 2

3Real-time Dashboard Predictive Analytics

Transparency and Visualization in real timeEXAMPLE: SMART FACTORY

Analyze manufacturing equipment data to identify impending equipment

detiorartion or failure, impacting production line cycle time

Monitor health

and condition of

mfg equipment

Predict mfg

equipment

failures &

detiorartion prior

to outages

Benefits

� Reduce downtime and service outages for production line

� Forecast failures/deterioration for equipment with actions

� Optimize inventory and spare parts planning

� Reduce operational, maintenance and service costs

Benefits

� Reduce downtime and service outages for production line

� Forecast failures/deterioration for equipment with actions

� Optimize inventory and spare parts planning

� Reduce operational, maintenance and service costs

Forecast repair

and replacement

requirements

Integrate with

asset

management

and alert systems

to act on

impending failure

PRE-INTEGRATED INDUSTRY SOLUTION –

IBM ANALYTICS FOR MANUFACTURING EQUIPMENT

MES Equipment

Data

Maintenanc

e Data

Master

Data

Financial

Data

32

IBM ELECTRONICS INDUSTRY SEGMENTS

3

3

Semiconductor Suppliers

& Mfg ServicesPower & Automation

Equipment

Office Products &

Computers

Network Equipment

Providers

IoT can help semiconductor companies optimize Fab processes & equipment usage, delivering fully secure factory visibility, equipment automation, pro-active maintenance, and energy management.

Manufacturers can take advantage of secure IoT intelligent devices and systems to make better business decisions around asset utilization and performance, while optimizing equipment interoperability and service efficiency.

IoT will connect all devices in the office, delivering new and secure business value with personalized end-user services, energy efficiencies, and improved business processes such as field service optimization.

To address the challenges of price competition, cost containment, and data explosion, Network Equipment Providers (NEPs) need to have deep IoT capabilities in service after sales (including predictive maintenance), network traffic optimization, and software development.

Medical Devices

As chronic diseases and patient data continue to escalate, IoT has a tremendous role to play to open up new medical markets, new segments for existing product categories, and help deliver high quality services with exceptional efficiency.

Consumer Electronics

& Appliances

IoT is hugely effective in capturing device data, applying analytics to understand the data, and using these newfound insights to optimize operations, extend product functionality and to securelydeliver innovative end-user experiences,

DRIVER INSIGHTS

IoT for Automotive

34

� Driving behavior (acceleration, turning, idling, �)

� Driving context (speed pattern, weather, ��)

� Origin & destination and trajectory patterns

� Personal driver information and record

Features

� Personalized Navigation

� Driver Health Monitoring

� Location-based Couponing and Advertisement

� Concierge Services

� Geo-Fencing & Stolen Vehicle Tracking

� Driver Behaviour Analysis (for Fleets)

� PAYD Insurance

� Usage-based Tolls

� Car-Sharing and Ride-Sharing

Enables Use Cases

�Additional Revenues & New

Business Model � Brand & Product Differentation � Customer Relationship Management

VEHICLE INSIGHTS

� Vehicle Driving & Incident History

� Vehicle Diagnostics / Health

� Failure Prediction & Alerts

� Vehicle Usage context (weather, road type)

� Trigger Additional Data Collection

� Location & Environment Awareness (Vehicle History)

Features

� Advanced Driver Assistant Systems

� Predictive Maintenance and Quality

� Dynamic Service Scheduling

� Vehicle Record and Warranty Management

� PAYD Leasing

� Remote Vehicle Status and Control

� Over-the-Air Updates & Vehicle Lifecycle Management

Enables Use Cases

35�Additional Revenues & New

Business Model �Internal Cost Savings &

Product Improvement � Customer Relationship Management

IoT for Automotive

INFRASTRUCTURE INSIGHTS

� Map Event Management (patterns in spatial map & road network context)

� Event Pattern Analysis (accumulation of corresponding events)

� Traffic Pattern Analysis

� 3rd Party Integration (e.g. weather, traffic lights, public events, roadworks)

Features

� Dynamic Traffic Information and Traffic Prediction

� Road Condition Warning

� Map Learning (e.g. new streets, detours, hazardous areas)

� Environmental Awareness (Air Pollution Exposure)

� Intermodal Navigation & Transportation

� Green Wave Assist

� Parking Finder

� Events / PoI Integration

� EV Charging Management

Enables Use Cases

36�Additional Revenues & New

Business Model � Brand & Product Differentiation � Data Usage for internal and 3rd party

IoT for Automotive

Open development platform for smarter cities and buildings

KONE joins forces with IBM for IoT cloud services and

advanced analytics technologies

Source: http://www.kone.com/en/press

KONE agreement with IBM will transform KONE's operations and technology

capabilities around the world, using IBM's technology and experience to

harness the potential of digitalization and the Internet of Things (IoT).

store equipment data,

build applications

develop new solutions

Elevators

Escalators,

Doors

Turnstiles

new services

new experiences

Business Partners

1MWatson

Develop

ment

Cloud

cities

and

buildings

Pushing strategy to the excellence level and beyond

Our agreement with IBM is exciting and it is an important

stepping stone to deliver the best People Flow experience

Henrik Ehrnrooth, President & CEO of KONE Corporation

We operate in a connected world and by working with IBM,

new solutions like improved remote diagnostics and

predictability means we will deliver better services for our

customers and great experiences for the people who use our

equipment.

Henrik Ehrnrooth, President & CEO of KONE Corporation

GETTING STARTED…

Getting Started – Industry 4.0 (Example)

40

THANK YOU

Your Feedback is Important!

Juan Ramón Gutiérrez Villar

Cognitive IoT, Consultative Sales (Industrial Sector)

Industry 4.0 Lead, SPGI

[email protected]

+34 635 520 267

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