Manufacturing in an Era of Internet of Everything Internet Business Solutions Group Jay Chung Puneet K Bhatia

Region’s growth aspiration - manufacturing matters

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5

10

15

20

25

30

35

40

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China Thailand

South Korea Malaysia

Indonesia

India

Vietnam

Philippines Germany

USA France

UK

Japan

Italy

Russia, Canada, Spain

Mexico Brazil

Singapore

Man

ufac

turin

g (%

of G

DP)

GDP Growth (%)

Source: World Bank, Cisco IBSG 2013

World

> 25%

World

1991 - 2011

Global manufacturing trends - high priority business agenda

Source: Cisco IBSG 2013

Industry trend Top 5 business agenda

• Digital consumers – new ways of searching, comparing and consuming products and services

• Scarcity key resources – raw materials, talent, real estate etc.

• Globalization and search for new markets – Exports, JVs, M&As, Alliances etc.

• Regulatory – environmental, labor etc. • Financial markets – access to capital, cost of capital and

protecting cash • Increasing complexity – across products and market

segments • Technology diffusion – virtual way of doing things, cloud,

mobility etc. • Global knowledge society – harnessing knowledge

across extended organization

“Customer experience” 1

“Asset utilization” 2

“Supply chain/ Logistics efficiency” 3

“Employee productivity” 4

“Smart products/ services” 5

Key takeaways • Internet of Everything (IoE) will transform manufacturing into a highly

interconnected and a collaborative ecosystem

• It will create new possibilities for innovation and operational excellence

• ICT investments and their consumption models hence have to be viewed as a long term portfolio investment across 5 broad categories – infrastructure, transactional, collaborative, information and strategic

Defining IoE – connecting the unconnected IoE brings together people, process, data, and things to make networked connections more relevant and valuable than ever before—turning information into actions that create new capabilities, richer experiences, and unprecedented economic opportunity for businesses, individuals, and countries.

Source: Cisco IBSG, 2013

Why connect - How much value is at stake?

Source: Cisco IBSG, 2013

$9.5 trillion From industry-specific

use cases (66%): smart grid, connected

commercial vehicles, etc.

$4.9 trillion From cross-industry use cases (34%):

future of work (telecommuting), travel avoidance, etc.

IoE represents an opportunity to grow aggregate global corporate profits ~21% by 2022

$14.4 trillion

Internet in manufacturing – evolving in accelerated waves

Source: General Electric & Co., Cisco IBSG, 2013

Industrial revolution - Machines and factories power economies of scale and scope

Internet explosion – fixed computing, mobility, BYOD and Internet of things

Internet of everything – machine based analytics, science based, deep domain expertise, automated, predictive

Past Present Future

Time

IoE in Manufacturing – driving the top priority business agenda

Smart products & services

Smart operational processes

Advanced analytics

Source: Cisco IBSG, 2013

Connect devices, machines, facilities, transport fleets, grids and networks with advanced sensors, controls and software apps

Visual plant operations, asset and people visibility, interactive and mobile plant workforce

Visual supply chains

Inbound and outbound visibility and risk management

Customer experience

Omni-channel experience

Combination of power of science (physics, chemistry etc.), analytics, predictive algorithms, domain knowledge

1 2 3 4

People at work

5

Connecting people (enterprise, partners and customers) anytime to support R&D, Operations, Maintenance, Service Levels and Quality

6

Smart products & services – new segments, new business models …

Source: Cisco IBSG, 2013

Personal

Commercial

Products Services

• Cars • Home appliances • Personal gadgets

(e.g. watches) • Smart phones • ….

• Commercial fleet vehicles

• Industrial machinery and equipment's

• Aircrafts • ….

• Smart homes • Smart grid • Virtual assistants • ….

• Smart buildings/ campuses

• Industry exchanges (e.g. freight exchange, MRO exchange etc.)

• Smart utilities • ….

1

Smart connected vehicles – a broad set of applications

Source: Cisco IBSG, 2013

1a

Smart factories – asset visibility and maintenance

Source: Cisco IBSG, 2013

Wireless data acquisition modules

Wireless network gateway

Video

Machine data and video images

LAN/ WAN

Alerts/ Notifications

Virtual Ops.

Designated Maintenance Expert

Process command and instructions to nearest expert/ functional expert

Response

Instruction manual and Case Library

2a

Smart factories – people visibility and response

Source: Cisco IBSG, 2013

Wireless data acquisition modules

Wireless network gateway

Video

Sensor, Location Tag and Video Images

LAN/ WAN

Alerts/ Notifications

Virtual Ops.

Event Response Teams

Process command and instructions to nearest expert/ functional expert

Response

Staff wears sensor and activates ‘help button’

Location tag

Instruction manual and Case Library

3rd party access

2b

Smart factories – interactive workforce

Source: Cisco IBSG, 2013

Wireless data acquisition modules

Wireless network gateway

Kiosks/ Signage's within sections of plant

Automation Possibilities

Andon MES Data Information boards

Plant metrics Corporate Messaging

Safety information

Public announcements

HR Processes & Processes

Pull/ Distribute

Push

LAN/ WAN

Upload

Download

Remote Users (e.g. HR)

2c

Visual supply chain – automotive supply chain hubs

3

Control tower …. network visibility

Transportation exchange … provide reach and access

Supply Hubs …. Connected warehousing

a b c

Enabling OEMs and Part Suppliers to manage the events across the network (inbound and outbound) by connecting physical warehouses & transportation requirements

Platform

Transport demand

Transport supply

Directly connect the transportation demand with the fleet owners and removing the intermediary layer – allow for efficient procurement of transportation services

Connected warehouses (designed on VMI/ SMI principles) on a shared basis across the network servicing the key auto & aftermarket clusters and providing part visibility and accuracy across locations and consumption points

Source: Cisco IBSG auto engagement in India

Omni channel experience – explosion of customer access points …

Source: Cisco IBSG, 2013

4a

High problem solving

Minimal problem solving

High context dependence

Low context dependence

Purchase points – dealer showroom

Information search and interaction points (e.g. social media)

Self service interactive touch points (e.g. brand websites, interactive kiosks)

Access to experts – virtual dealership, mobility

Omni channel experience platform – providing superior cust. experience

Source: Cisco IBSG, 2013

4b

Superior automotive experience – an engagement example

Source: Cisco IBSG, 2013

4c

People at work – manufacturing virtual operations

Source: Cisco IBSG, 2013

Key services: Virtual Plant Operations, Plant Monitoring, Preventive Maintenance, CBM, Trouble shooting complex units, Plant Simulation, Equipment Performance Evaluation, System Performance Evaluation, Training, Knowledge Management, Spare Parts Management, Risk Management, Safety and Security, Utilities Demand Management etc.

5a

People at work – virtual workspace

Source: Cisco IBSG, 2013

Virtualized Collaborative Workspace

1) User 1 on any device 2 at any location logs in

1 users can be external 3rd party consultants, vendors or internal Tata Steel employees in any location anywhere 2 any client – mobile, zero, thin or thick 5 data, voice and video

LAN/ WAN/ Internet

Virtualization aware borderless network

2) Virtualization aware network 3 assembles virtual desktop on demand 4 based on user profile and including OS and applications.

3 connects the data centers, Plant Campus, Other offices and Remote workers

Virtualized Data Center

User Profiles Applications Operating System

3) Dynamically mapped and adjusted in real-time based on user requirements 4

4) Delivered securely and with high-performance over LAN or WAN or Internet 4

4 Based on a Unified Data Center Architecture designed to create efficient, agile and transformative data centers – consolidate the DC infra, reduce energy costs, improve workforce productivity and ensure business continuity

Compute + Switching + Storage + Virtualization

5) Superior end user experience 5

5b

Simple steps to begin capturing your share of IoE value

• Identify the goal – governed by business but three different reasons

• Build a roadmap – leverage portfolio management approach

• Consider internal changes and key capabilities required to embrace IoE

• Consider ICT consumption models that will best support IoE

What’s your aspiration – three different reasons

Aspiration

Context

Run and rebalance IT portfolio

Redesign IT portfolio

Innovate IT portfolio

Better execution of current ops. to improve competitiveness

• Current IT architecture supports strategy

• Room for improvement in key business processes

Redesign operations to improve cost and/or increase growth

• Current IT architecture does not supports strategy or is inefficient

Change the game by innovating across the industry value chain

Industry discontinuity • Tap latent demand • Redefine roles • Change cost structure

Creating the tech. relevance – Portfolio management approach

Business direction Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Key aspiration

Run & rebalance

Redesign Innovate Illustrative distribution 1

x% y%

c%

z% e%

a% b%

c%

d% e%

k% l%

c%

d% m%

Examples • PSS • Business activity

monitoring

• Asset visibility • People monitoring • Workspace

• Customer exp. • Supply chain

visibility

Technology consideration

• Video surveillance • Plant Ethernet

• Industrial wireless • RFID • M2M • VDI/ VXI • BYOD/ Mobility • i-services

• Architectures • Platform

solutions • Collab.

s% t%

u%

v% w%

Baseline IT portfolio

Portfolio mix

Strategic Informational

Collab.

Infrastructure Transactional

Source: Cisco IBSG, 2013

Adopting and making tech. affordable – ICT consumption models

Source: Cisco IBSG, 2013

• Managed services … SP led models

• Architectural solutions … MSI’s/ OEMs (e.g. Rockwell/ Cisco)

• Invest and innovate … intelligent products and services

• Industry exchanges/ Vertical specialists … e.g. Supply chain solution providers

• Share and mutualize … common infra across suppliers and dealers

• Opex funding … lease models

• Consortium/ alliances at industry levels … ideal for SME’s

Questions?

Thank You

TOMORROW starts here.