Jon Hill InVMA - Real Industrial Case Studies creating Value with IoT
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The document discusses the Internet of Things (IoT) as a transformative force in the industry, emphasizing how smart, connected products can enhance productivity and create new business models. It highlights the potential economic impact of IoT, estimated to range from $2.7 to $6.2 trillion annually by 2025, and provides examples of companies using IoT for improved operational efficiency and customer engagement. The integration of hardware, software, and connectivity allows for new capabilities, enabling businesses to optimize performance and capture value through enhanced service offerings and predictive analytics.
Jon Hill InVMA - Real Industrial Case Studies creating Value with IoT
- 2. © 2015 InVMA and ThingWorx As advertised • Provide an everyday way of thinking about the Internet of Things in Industry • Share a simple way of describing the technology stack required for smart, connected products and some of the issues that are now being overcome by the Tech Industry. • Propose potential new ways that value will be created by things communicating with people and each other • He will bring this to life with real examples of additional and “unintended” value created from connecting to a Combined Heat and Power plant in a School.
- 3. Example Live ClientsOur Mission is to “Connect the World for Good” Founded in 2012 by directors of InControl True End to End Capability through Hardware, Software, Process and People Design, Development and Integration “The quality of the work they have carried out for us is reflected in the low call out ratios, minimal warranty costs and satisfied end users on each of the projects for which they provided assistance” 3
- 4. © 2015 InVMA and ThingWorx Definition • The Internet of Things (IoT) • A network of physical objects or "things“ • Embedded with electronics, software, sensors, and connectivity • Enable objects to exchange data with people, systems or other objects • The term was coined by British entrepreneur Kevin Ashton in 1999 when he was at MIT.
- 5. 5 PHYSICAL WORLD Traditional Reality: Distinct and Separate DIGITAL WORLD
- 6. 6 New Reality: Distinct but Inseparable Digital World Physical World INTERNET OF THINGS 6
- 8. © 2015 InVMA and ThingWorx What is IoT? RULES / ANALYTICS ENGINE SMART PRODUCT APPLICATIONS IDENTITY AND SECURITY PRODUCT DATA DATABASE BUSINESS SYSTEMS INTEGRATION APPLICATION PLATFORM NETWORK COMMUNICATION 010000101000001110001100 100101001100101010110001 010000101000001110001100 EXTERNAL INFORMATION SOURCES 11011001001100101100110100110010100011010100001111 0110101011100011001000011000010100001010000011100 SOFTWARE HARDWARE
- 9. © 2015 InVMA and ThingWorx What does that mean for a product? Electronics and Controls Ability to Process Smart Product Product Cloud Database, Application Platform, Rules / Analytics Engine, Smart Product Applications Sensors Ability to Sense Software Ability to Instruct Enhanced UI Ability to Interact Mechanical Smart, Connected Product Physical Product Electrical Connectivity One to One, One to Many, Many to Many 01101010111000110010000110 00010100001010000011100011 01010111000110010000110000 10100001010000011100110110 01001100101100110100110010 10001101010000111101101010 11100011001000011000010100 00101000001110001101010111 00011001000011000010100001 11100011001000011000010100 00101000001110001101010111 00011001000011000010100001 01000001110011011001001100 10110011010011001010001101 01000011110100110010110011 01001100101000110101000011 11011010101110001100100001 10000101000010100000111000
- 10. © 2015 InVMA and ThingWorx #1 Manufacturing industry will be the #1 industry sector by share of global economic value-add. – Forecast: The IoT, Worldwide, 2013 Estimated potential economic impact of The Internet of Things in 2025, range from $2.7 – 6.2 trillion annually – McKinsey Global Institute $6.2T Smart, connected products will give rise to the next era of IT-driven productivity growth at a time when the impact of earlier waves of IT has largely played itself out. –Harvard Business Review, November 2014 Jim Heppelmann President and CEO, PTC Prof. Michael Porter Harvard Business School Hype
- 11. © 2015 InVMA and ThingWorx What conversations would you have? 11 More people…I need cleaning More people…I need cleaning I need repair I need repair I’m at full capacity I’m at full capacity I’m using more energy than expected I’m using more energy than expected I need refilling I need refilling My water is corrosive My water is corrosive I detect a bio-hazard I detect a bio-hazard I’ll raise the bill for usage I’ll raise the bill for usage I’ve arrived on site I’ve arrived on site Bearing vibration is rising Bearing vibration is rising
- 12. © 2015 InVMA and ThingWorx What does this enable? Smart, connected products enable new categories of capabilities, with each building on the preceding one 1. Monitoring 2. Control 3. Optimization 4. Autonomy Sensors and external data sources monitor the product condition, environment, and operation, and alert/notify of changes Software embedded in the product or in the product cloud controls product operation and personalizes the user experience Monitoring and control capabilities enable algorithms that optimize product performance and perform diagnostic, service, and repair Combining monitoring, control, and optimization allows autonomous product operation, service, and coordination with other product systems
- 13. © 2015 InVMA and ThingWorx Weather System Irrigation System Seed Optimization System Farm Equipment System Farm Management System Platform Tillers Planters Tractors Farm Equipment System Combine Harvester + ++ Product is comprised of physical (i.e., mechanical, electrical) and other material components Product incorporates software, sensors, electronics and controls, and an enhanced user interface Product incorporates wired or wireless connectivity to exchange data remotely and enable new capabilities outside the physical product Smart, Connected Product integrates into a product system, usually within the same industry, to optimize product and system performance Smart, Connected Product is coordinated across other products systems, outside traditional partners, suppliers, and industry, to optimize product and system performance SYSTEM OF SYSTEMS PRODUCT SYSTEM SMART, CONNECTED PRODUCT SMART PRODUCT PHYSICAL PRODUCT What does this enable? © 2014 Harvard Business Review, November 2014
- 14. 14 VALUE New Ways to Capture Value Optimize Performance Improve Risk Management Reduce Product and Service Costs New Revenue Streams Operational Differentiate Offering Quickly deliver compelling, differentiated offerings that meet or anticipate customer demands Elevate Customer Relationship Make offerings smarter, easier to update, and more personalized to elevate customer experience Strategic Combine real- time data from assets, enterprise systems, and people to increase operational efficiency Improve ability to proactively identify and mitigate financial, safety, environmental and regulatory compliance risk Implement proactive service, limit warranty costs and risks, and optimize service and product development processes Realize new value-add opportunities and revenue streams Predictive- Based Outcomes Use predictive analytics of big data to launch business processes preemptively New Business Models Maximize revenue opportunities and value capture from new services or business models Disruptive
- 15. © 2015 InVMA and ThingWorx New Business Models - Accenture Source: Driving Unconventional Growth through the Industrial Internet of Things Copyright © 2014 Accenture All rights reserved. Single Invoice Transactional Subscription Based Ongoing Relationship
- 16. Michelin Example Source: Driving Unconventional Growth through the Industrial Internet of Things Copyright © 2014 Accenture All rights reserved.
- 17. Source: Driving Unconventional Growth through the Industrial Internet of Things Copyright © 2014 Accenture All rights reserved. General Electric Example
- 18. Client OEM Example Information Services Benchmarking, Analytics, Training Needs Demand or Impact Management Equipment Services Breakdown and Scheduled Maintenance Preventative Maintenance Air as a Service Products Compressor Connected Pump Pre-Digital Product Line Digital Product- Line New Market Client OEM Example Client is moving model from scheduled maintenance to using predictive analytics to manage preventative maintenance. Next step operator training and moving to connected demand management with energy suppliers
- 19. Auto Example Information Services Share Location Data and Traffic Conditions Equipment Services Breakdown and Scheduled Maintenance Preventative Maintenance Car as a Service Products Car Connected Car Pre-Digital Product Line Digital Product- Line New Market Auto Example Daimler experimenting with Car2Go. Uber in Taxi market, Waze, Mercedes and BMW with connected services
- 20. 20 Service: Diebold Reduces Downtime by 15% Diebold is a $2.9B provider of integrated self-service delivery and security systems, including ATMs Deployment results: • Average problem resolution time reduced from 3 hours to minutes • 17% of total issues resolved remotely without a field service visit • Overall Opteva ATM downtime reduced by 15% “With OpteView, I can achieve world-class ATM availability by making the most out of a close relationship with a trusted vendor – Diebold .” – Chad Lynch Services Manager, America First Credit Union
- 21. 21 Analyze: Elekta Delivers Preventative Maintenance Elekta is a $750 million company with approximately 3,500 employees worldwide. The company develops sophisticated, state-of-the-art tools and treatment planning systems for radiation therapy, radiosurgery and brachytherapy. Deployment results: • >20% of service requests resolved remotely without the need for an onsite visit • Increased system uptime and patient throughput • Improved product design through machine reliability data analysis “By harvesting machine data and using predictive analytics on the usage patterns and life-cycle of the systems, we can pre-position spares closer to machines where we know that a part is coming to the end of its duty cycle. This predictive support model truly maximizes the availability of the systems, providing an enhanced service experience for the customer and enabling them to deliver improved patient care .” – Martin Gilday VP of Service, Elekta
- 22. 22 Integrate: GE Power & Water Optimizes 7 Processes GE Power & Water is a world leader in power generation and water technologies for utilities, independent power producers and industrial applications. 1. Commissioning - Sales Efficiency 2. Contractual SLAs – Higher profitability 3. Training – Employee productivity 4. Remote Monitor, Diagnostics and Service – Fewer truck rolls, less downtime 5. Field Service – higher first time fix rate, faster time to repair 6. Spare Parts – Optimized inventory levels 7. Upgrades and Repair – predictive maintenance “We are using machine data to build algorithms to predict issues or changes. Often we see ‘this is different from the majority of engines’ and that will help us develop an appropriate procedure.” – Audi Lucas GE Power & Water
- 23. 23 Innovate: Joy Global Transforms Business Model Joy Mining is a worldwide leader in high- productivity mining solutions that manufactures and markets original equipment and aftermarket parts and services for the mining industries. Deployment results: • Anticipate equipment failures & efficiently respond to problems reducing equipment downtime • Optimize mining processes with new analytics to reduce the cost of resources & increase production • Manage the overall mining operation on behalf of the mine owner. Transition from pay per product to pay per tonnage of earth mined “The future gains in productivity will come from system improvements, not just the product itself. This requires smart connected product systems that can monitor and optimize the full system performance.” – Ted Doheny CEO, Joy Global
- 24. 24 Innovate: All Traffic Captures New Revenue Streams All Traffic Solutions is the leading manufacturer of signs used by police departments and local governments to help understand and manage traffic. Results: • Delivered an innovative solution for law enforcement professionals called the TraffiCloud • Faster time to market • Rapid development of mobile UI • Advanced data mining that All Traffic can now offer its customers “ThingWorx’s rapid application development environment and scalable platform allows us to extend our solution and deliver new services to our customers in ways that were previously impossible.” – Scott Johnson CEO, All Traffic Solutions
- 25. © 2015 InVMA and ThingWorx If you don’t move you don’t win