Industrial internet lecture (Tampere University of Technology)
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The document introduces the concept of industrial internet business models, highlighting the impact of advances in technology on business practices. It discusses various models such as predictive maintenance, condition monitoring, and pay-per-use, which leverage data analytics for improved machine operations. Additionally, it emphasizes the importance of integrating diverse engineering disciplines and adapting education systems to meet the evolving needs of the manufacturing sector.
Industrial internet lecture (Tampere University of Technology)
- 1. Industrial Internet Business Models MEI-62006 Introduction to Industrial Internet Tampere University of Technology
- 2. About Me Karan Menon Ø Bachelor’s in Chemical Engineering, India Ø Master’s in Material Science, TUT, Finland Ø PhD Fellow, Laboratory of Industrial and Information Management, TUT, Finland Ø Researcher, DARE Business Data Research Group Ø Research funded by TEKES & Academy of Finland Projects, Finnish Cultural Foundation (Suomen Kulttuurirahasto), The Jenny and Antti Wihuri Foundation (Jenny ja Antti Wihurin rahasto) Ø Topics: Industrial Internet, Industry 4.0, Business Models, Platforms Email– karan.menon@tut.fi Twitter - @menonkaran Slideshare - https://www.slideshare.net/menonkaran
- 3. What is Industrial Internet? 5.4.2018 3https://www.youtube.com/watch?v=Cy9DhBab3rc
- 5. What is the industrial internet market potential? 5.4.2018 5
- 6. Why is industrial so good for business? 5.4.2018 6 a sharp decline in the cost of sensors and, thanks to advances in cloud computing, a rapid decrease in the cost of storing and processing data Machines have become Predictive, Reactive and Social Source: https://archive.org/details/MarcoAnnunziata_2013S
- 7. What is a business model? 5.4.2018 7 Model: "a simplified description and representation of a complex entity or process". Business: "the activity of providing goods and services involving financial, commercial and industrial aspects". A business model is a conceptual tool containing a set of objects, concepts and their relationships with the objective to express the business logic of a specific firm. Source: Osterwalder, Alexander; Pigneur, Yves; and Tucci, Christopher L. (2005) "Clarifying Business Models: Origins, Present, and Future of the Concept," Communications of the Association for Information Systems: Vol. 16, Article 1.
- 8. Business model components & their relations 5.4.2018 8 Source: Toor, M. Junaid. INDUSTRY 4.0 AS SMART ENABLER FOR INNOVATIVE BUSINESS MODELS. MS thesis. Universitetet i Agder; University of Agder, 2017. Relationships Core Competences
- 9. 5.4.2018 9 Source: Osterwalder, Alexander, and Yves Pigneur. Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons, 2010.
- 10. Industrial Internet enabled Business models 5.4.2018 10 • Condition Monitoring – Advanced analytics to monitor the condition of the machine in order to provide/sell optimal machine control parameters to the customer and in future develop a customized machine for the customer • Predictive Maintenance – Instead of scheduled maintenance change it to maintenance when needed • Pay-per-use – Customer pays only for the use of the machine • Outcome based Business Model – Pay for the outcome that the machine generates instead of paying for the machine itself. • And others….
- 11. Industrial Internet based Condition Monitoring & Predictive Maintenance 5.4.2018 11
- 12. Power by hour – Rolls Royce 5.4.2018 12 "They pay a fixed charge per hour of operation, per ship, and Rolls-Royce will monitor the equipment aboard each vessel from on shore by means of onboard sensors. The agreement also covers planned maintenance, while day- to- day maintenance aboard ship will be carried out by the shipping company itself. The service builds on experience with similar agreements that Rolls-Royce Group has had in the airline market for many years.” Source: https://www.rolls-royce.com/media/our-stories/discover/2017/discover-power-by-the- hour.aspx
- 13. Team Work – 15 Mins Max. 5.4.2018 13 Ø Take up one of the models from here or propose a new industrial internet based BM of your liking and fill up the BM canvas • Condition Monitoring – Advanced analytics to monitor the condition of the machine in order to provide/sell optimal machine control parameters to the customer and in future develop a customized machine for the customer • Predictive Maintenance – Instead of scheduled maintenance change it to maintenance when needed • Pay-per-use – Customer pays only for the use of the machine • Outcome based Business Model – Pay for the outcome that the machine generates instead of paying for the machine itself. • And others…. Ø Once done, present your group’s canvas to the class in 1-2 mins
- 14. Take aways 5.4.2018 14 Ø Industrial internet based technologies are interesting and creating worldwide interest because of the new business opportunities they create. Ø Novel Business Models such as outcome based, pay per use, condition monitoring, predictive maintenance and others can be effectively understood if proper tools such as the BM canvas are used. Ø Digitalization in manufacturing creates competition from players who traditionally don’t belong to the industry, such as google, amazon etc. Ø Digitalization in manufacturing requires the education system to integrate different streams of engineering such as mechanical engineering, computer science, signal processing, industrial engineering together. Ø Job portfolio in manufacturing companies is expanding to data science, data analytics etc Ø Novel Business models will be able to create requirements for future automation systems and machine configurations, hence studying them is important
- 15. 5.4.2018 15 Contact Information Email– karan.menon@tut.fi Twitter - @menonkaran Slideshare - https://www.slideshare.net/menonkaran Kiitos! Thank you! ध"यवाद