Post on 18-Mar-2018
Total Societal Impact: The Strategic Imperative for
Leaders
Ed Monser
President of Emerson
Monday, 19th February, 2018
22
Emerson’s Values Guide How We Do Business
Our Values Are an Important Driver to Our Success
INTEGRITY
We are uncompromising in our honest and ethical behavior,
which creates trusting relationships with one another,
customers, suppliers, and communities.
SAFETY & QUALITY
We are unwavering in our commitment to the
highest standards of safety and quality for ourselves
and our customers.
CUSTOMER FOCUS
We actively listen to our customers to deeply understand
their needs and deliver the unique solutions that ensure
their success.
SUPPORT OUR PEOPLE
We attract, develop, and retain exceptional people in
an inclusive work environment, where all employees can
reach their greatest potential.
CONTINUOUS IMPROVEMENT
We constantly strive for improvement in all aspects of our
business, guided by metrics, feedback, and our disciplined
management process.
COLLABORATION
We work seamlessly across geographies, platforms,
business units, and functions to fully leverage our unmatched
breadth and expertise.
INNOVATION
We passionately pursue new technologies, capabilities, and
approaches to drive tangible value for our customers.
3
Core Business Platforms
• Making the greatest use of the world’s valuable resources
• Helping nations move their economies forwardin a responsible way
• Enabling the performance and safety of industry when it matters most
• Advancing the industries that are the backbone of daily life
• Ensuring human comfort and health
• Protecting food quality and sustainability
• Advancing energy efficiency and environmental conservation
• Creating sustainable infrastructure
EMERSON AUTOMATION SOLUTIONS EMERSON COMMERCIAL & RESIDENTIAL SOLUTIONS
We concentrate on the most complex and important challenges facing the world in the process, industrial, commercial and residential markets.
44
Emerson’s Presence in India
Our Manufacturing Presence in India Is a Key to Supporting the Region’s Needs
Engineering Centers
Manufacturing Locations
Head Office
6,600+
EMERSON EMPLOYEES
––––––––––––––––––––
––––––––––––––––––––
WORK IN INDIA
51–––––––––––––––
TOTAL LOCATIONS;
INCLUDING
MANUFACTURING,
ENGINEERINGS, AND SALES
4,000+–––––––––––––
EMERSON
ENGINEERS
IN INDIA
$1,700–––––––––––
$90IN INVESTMENT 2012-2017
––––––––––––––––––
NEW FACILITY IN 2019
$85M TOTAL EMERSON INVESTMENT
––––––––––––––––––––MANUFACTURING CENTER OF EXCELLENCE
34,000 SQM OF MANUFACTURING
Emerson’s Major Facilities
in India
Chakan – New Facility in 2019
MILLION–––––––––––––
THOUSAND
CONTRIBUTED
TO CHARITIES
IN 2017
–––––––––––––Mumbai
Mohali
NoidaGurgaon
Baroda
Pune
Chennai
Coimbatore
Atit
55
Emerson Philanthropy & Employee Volunteerism in India
Emerson Has a Corporate CSR Program That Consolidates Business Unit Contributions and Supports Local, Impactful Initiatives
NGO: Purkal Youth Develop. Society
• Funding for their expenses for
classes 1st, 6th, 9th, 10th & 11th
and to furnish the Girls Hostel
NGO: SOS Children’s Villages
• Funding to ‘Enable children through
employment linked education’ for
1000 students across 32 villages
NGO: Agastya Int’l Foundation
• Funding for Pune and Pilani Science
Ecosystem to bring science
education to government schools
NGO: Masoom
• Funding to conduct short term skill
development courses for 200
students
Our Contributions Focus on Supporting:• Education
• Women
• Socially backward individuals
• Economically backward individuals
• Rural development
NGO: Lend-A-Hand-India
• Funding to conduct short term skill
development courses for 30 schools
6
Emerson Automation Solutions Top Quartile Initiatives
Plantweb
Our Plantweb digital ecosystem provides a robust portfolio of hardware, software, intelligent devices and services for securely implementing the
Industrial Internet of Things, with measurable business performance improvement.
Our technology- and engineering-based program is designed to
help industrial companies achieve Top Quartile performance and
recover more than $1 trillion* in operational losses globally.
Operational Certainty
We combine innovative technology and engineering to
improve capital efficiency and boost project schedule
reliability—helping to address the billions of dollars lost due
to project excesses each year.
Project Certainty
*Emerson internal estimate
7
Sources: Refining and Petrochemical Benchmarks,
API, Solomon, OSHA, IHS Markit and Company Reports
Safety
Production
Industry Benchmarks Reveal Significant Business Improvement Opportunities From Average to Top Quartile Performers
4% higher availability
Half the
maintenance
costs
3X fewer
recordables and process
incidents
20% lower operating costs
Reliability
Emissions
Process
Incidents
4th 1stQuartiles
Utilization
4th 1stQuartiles
Energy Use
CO2 Emissions
4th 1stQuartiles
Availability
Maintenance
4th 1stQuartiles
30% lower emissions
30% less energy use
Operating Costs
Recordables
10% higher Utilization Rate
Our Goal
is for each of our customers to achieve
Top
Quartile
PerformanceBy using our devices
and systems
8
Shell’s Prelude Project Is an Industry First and Utilizes Our Automation Technology for Safety, Reliability, and Production
Project Prelude
FIRST OF ITS KIND
New Floating LNG technology; design began in 2010
Operates 200+km from the nearest land
MINIMIZE CAPEX & OPERATING COSTS
Complex design – aim to minimize cabling
5x more expensive to host an employee on-site
Maintenance analytics required
Profitable through oil price cycles
SAFETY & RELIABILITY
Designed to minimize human capital
Operational life designed for 25 years
Project Prelude Was Built in South KoreaConstruction Began in 2015
An Ambitious Project Utilizing Innovative Technology
Prelude Is Located 200+ km from Australia
Source: Shell
99
We Provided a Comprehensive Solution of Innovative Automation Technology in Order to Build Project Prelude
Emerson’s Technology Prelude
Project Prelude Contains 9,000 Emerson Devices to Collect Data and Automate Processes
A single integrated system architecture to
maximize remote monitoring capabilities
Extensive pre-testing and inspections on-site
to avoid project cost, carry-over work and
schedule overruns
Proactive maintenance program enabled by
real-time diagnostics and remote
equipment monitoring Project Prelude Shipped in June, 2017
and Arrived in Australian Waters in July
10
Our Ovation Virtual Power Plant Solves Customers’ Operational, Lifecycle, and Compliance Issues
BREAKTHROUGH TECHNOLOGY
Five years of software development
3.5 million lines of new software code
Multiple US patents granted
POWERFUL SIMULATION
Complete working model of existing power plant operating in parallel
Supports “faster-than” or “slower-than” real-time execution
Mirrors actual plant behavior high accuracy
Minimizes human error
TRANSFERABLE KNOWLEDGE
Operator training
Engineering development
Analytics
VIRTUAL+
PHYSICAL
11
Our Global Engineering Center in Noida Is a World-Class Engineering Facility Empowering Global Technology
Established, July 1997
GLOBAL ENGINEERING
Completed 800 projects in 50 countries
300 plus Engineers in Noida
Focused on Power and Water Industry automation
BEST-IN-CLASS
ISO 9001:2015 certified
Emerson safety award for eight consecutive years
All Power and Water Control Solutions tested at the center
Expertise in Digital Twin Simulation and CyberSecurity
SUITE OF CAPABILITIES
Product design and development
Project management and field engineering
Customer training
1212
The Ovation Virtual Power Plant Enables the Working Environment of the Future
Emerson Is Collaborating With a Large North American Utility to Host Its Entire Fleet in the Cloud
Emerson-Ovation’s Digital Twin
13
Digital Transformation Addresses the Challenges of 4D Operations
Dull
Routine reporting processes
Outdated operating procedures
Dirty Unnecessary equipment repairs & rework
Required physical observations of plant/field equipment
Dangerous
Hazardous area exposure via routine, manual data collection rounds and unnecessary work
Distant Non-productive (travel, wait, etc.) time
Contingency time (scheduling & collaboration bottlenecks)
EngagedElevate roles from routine monitoring to responsibility for business metrics with optimization tools
CleanEliminate unnecessary field work through use of predictive tools and practices
SafeMitigate exposure to personnel in hazardous areas through elimination of routine data collection rounds
DesirableUse remote collaboration to optimize project execution/test and resolve operational problems
14
Digital Transformation Changes the Role of Core Production Workers
FUTURE
CURRENT
“In many cases we redeploy the workforce into doing more intelligent tasks...the integrity, quality, andproductivity of the process is improved by them doing more intelligent tasks.”
- CTO, Integrated O&G
Routine Physical
Collecting Data
Routine Data Reporting
Control System Engineer
Process Engineer
Instrument Technician
Control Room Operator
Unit Maintenance Technician
Source: Harris Insights & Analytics Digital
Workforce Study (2017)Source: Human Centered Design Personas, Customer Proven Results & Emerson Analysis
Control System Engineer
Process Engineer
Instrument Technician
Control Room Operator
Unit Maintenance Technician
Non-Routine Physical
Interpersonal Collaboration
Analytical Expertise
1515
The Next Era of Value Creation Will Be Enabled by Digital Transformation
Emerson Innovations and the Digital Transformation Will Change How Employees Work. This Will Require Upskilling the Industry’s Workforce and Enabling Workforce Productivity
With New Technologies
Automated Workflow
Decision Support
Workforce Upskilling
Mobility
Change Management
Workforce
Productivity
Adoption of
Best-In-Class
Behaviors 5 ESSENTIAL COMPETENCIES
OF DIGITAL TRANSFORMATIONIncremental
Continuous
Improvement
FutureHistoric Business Practices
1616
Digitalization Is Powering a Shift in Workforce Productivity
Digital Transformation Enables & Requires Organizational Transformation
5 ESSENTIAL COMPETENCIES
OF DIGITAL TRANSFORMATION
Decision
Support
Automated
Workflows
Mobility Workforce
Upskilling
Change
Management
Eliminate repetitive
tasks and
streamline
standard
operations
Leverage
analytics and
embedded
expertise
Enable workers
to acquire
knowledge &
experience
faster
Secure,
on-demand
access to
information and
expertise
Accelerate the adoption of operational best practices
17
Key Messages
• Emerson has a long history in the process automation industry and is
poised for continued technology and market leadership.
• India is a strategic partner in Emerson’s regional engineering
excellence and manufacturing goals.
• Future of Automation: More sensing, data, operations software,
consulting, virtualization, and connected services – leading to safer,
more reliable, more environmentally friendly plants and working
conditions.
• More automation enables an empowered, highly intelligent workforce,
which will require new skills and will increase overall quality of life.