The Benefits of IoT in Manufacturing

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Rockwell Automation TechED 2016 @ROKTechED #ROKTechED 1

Transcript of The Benefits of IoT in Manufacturing

Page 1: The Benefits of IoT in Manufacturing

Rockwell Automation TechED 2016 @ROKTechED #ROKTechED 1

Page 2: The Benefits of IoT in Manufacturing

Rockwell Automation TechED 2016 @ROKTechED #ROKTechED

The Opportunity for Manufacturing

The Internet of Things represents an opportunity to grow aggregate global corporate profits approximately 21% by 2022

Between 2013 - 2022$4.7T

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Rockwell Automation TechED 2016 @ROKTechED #ROKTechED

How ready are companies?

Have a comprehensive strategy for IIoT

Yet to make concrete progress with IIoT

Create new service-based income streams

from the IIoT

84% 73% 7%

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Rockwell Automation TechED 2016 @ROKTechED #ROKTechED

MarketGlobal Competitiveness

WorkforceTalent Shortages & Skills Gap

RisksChanging Risk Patterns

TechnologyIndustrial Internet of Things

Opportunities and challenges in changing global landscape

IoT value at stake and growthof internet enabled assets

Macro Trends and PRESSURES

Global challenge hiring and retaining

Highly publicized and expensive incidents worldwide

New engineers every year until 2022 to connect the unconnected The World Bank Studies

220,000 Suffered a security breach in the last year2014 Ponemon Institute survey

70% Of worlds economy in 2025 will be provided by IoTMcKinsey & Co 2015

11%

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Rockwell Automation TechED 2016 @ROKTechED #ROKTechED

$65BAutomation systems reaching End of Life

~75%U.S. plants are more than 20 years old

78% Companies experienced 1-4 health/safety recalls

$20B cost of unscheduled downtime

<14 % US Plants fully integrated

21% Suffered a loss of IP in the past year

SOURCE: Industry Week SOURCE: Kapersky (2014)SOURCE: GMASOURCE: ARC SOURCE: Industry WeekSOURCE: ARC

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Business Risks & DriversRealizing Smart Manufacturing has become a BUSINESS IMPERATIVE

Page 6: The Benefits of IoT in Manufacturing

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How canI better

manage myglobalsupplychain?

I need toreduce

downtime?

I need toimprove

productquality

I need to improve

productivity?

How caninnovation

drive profits?

I need to achieve

real-time visibility

I need tointroduce

new products faster?

Business Risks & DriversRealizing Smart Manufacturing has SHIFTED PRIORITIES

Page 7: The Benefits of IoT in Manufacturing

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CHALLENGES

Organizational Alignment

Competency, Talent

Technology Adoption

Data Security, Privacy

Interoperability Standards

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Page 8: The Benefits of IoT in Manufacturing

Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.

Organization structure and skill set will be critical

Build a solid IP information infrastructure

Technology for the digital

world

Develop a training

strategy that will help drive collaboration

and build trust

Build partnerships to fill gaps

Don’t underestimate the dramatic

cultural changes this

can have

Keys to Success

Faster Time to Market

Improved AssetUtilization$ Lower Total Cost

of OwnershipEnterprise Risk Management

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Rockwell Automation TechED 2016 @ROKTechED #ROKTechED

The Industrial Internet of Things (IIoT)

50 “Smart Objects”by 2020Source: Cisco

Systems able to interact with one another, analyze data, self configure, and adapt to changes within the manufacturing process itself

billion

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