enabling industry 4 - minister of economy, trade and … · enabling industry 4.0 the future role...

Developing the future.

Enabling Industry 4.0

The future role of IT in the industry

Klaus Hardy Mühleck. Darmstadt, October 9th, 2014

Enabling Industry 4.0. The future role of IT in the industry

October 9th, 2014

Klaus Hardy Mühleck, CIO ThyssenKrupp AG

2 Developing the future.

Content

Introduction ThyssenKrupp 1

Focus of IT at ThyssenKrupp 2

Outlook: The future role of IT 3


October 9th, 2014



Content

Introduction ThyssenKrupp

• Introduction ThyssenKrupp group

• Current challenges in the industry

• Current role of the IT

1




October 9th, 2014



Leading Engineering Competence

Leading market

positions

One integrated

company

Active portfolio

management

Benchmark

performance

Profitable

growth

Capital

efficiency

Diversified Industrial Company

ThyssenKrupp – Diversified Industrial Group


October 9th, 2014



Climate change

Urbanization

Globalization

Leading

engineering

expertise

in

Material

Mechanical

Plant

More consumer and capital goods

More resource and energy use

More infrastructure and buildings

Reduced CO2 emissions,

renewable energies

Efficient resource and

energy use, alternative energies

Efficient infrastructure

and processes

Demand (“more”)

Drivers

Demography

Finite resources

Political framework

Business opportunities Restrictions Demand (“better”)

Leading engineering expertise supports global sustainable progress

http://picsus.eu/image/eab8fd25/


October 9th, 2014



Sales (€ mill)

EBIT** (€ mill)

Employees

Sales (€ mill)

EBIT** (€ mill)

Employees

Sales (€ mill)

EBIT** (€ mill)

Employees

Sales (€ mill)

EBIT** (€ mill)

Employees

Sales (€ mill)

EBIT** (€ mill)

Employees

Sales (€ mill)

EBIT** (€ mill)

Employees

*

**

Continuing operations (after reclassification of Steel Americas) before consolidation

Adjusted before consolidation

Components Technology

5,712

244

27,737

Elevator Technology

6,155

675

49,112

Industrial Solutions

5,641

640

18,841

Materials Services

11,700

236

26,978

Steel Europe

9,620

143

26,961

Steel Americas

1,867

(495)

4,112

Diversified industrial group: Our business areas

Key indicators – fiscal 2012/2013*


October 9th, 2014



Examples of our capabilities

Material

o Customer-specific material solutions

o Efficient materials manufacturing and processing

o Material services on the basis of powerful IT and logistics systems

Mechanical

o Design and manufacture of components for the automotive, machinery, energy and construction

sectors

o Design, production and servicing of elevators, moving walks and escalators

Plant

o Planning and construction of plants and machinery for the raw material and chemical industries

o Global engineering and service network


October 9th, 2014



Content

Focus of IT at ThyssenKrupp

• Current status

• Main chances & challenges

• Business needs driving the change

• Why is transformation necessary?

• How do we manage the transformation?

2




October 9th, 2014



ThyssenKrupp – Strategic Way Forward

Strategic Push

White/adjacent spaces

Anorganic growth: Acquisitions

Organic growth: Expand market positions

Strengthen innovation & technology

Balanced portfolio

Significant cash flow

Low net financial debts

Investment grade

Sustainable equity situation

Financial Stability

Company Positioning Diversified industrial company More & Better Sustainability

Active portfolio management

Continuous benchmarking

Profitable growth

Cost control

Capital efficiency

Cash generation

Performance Orientation

Brand ThyssenKrupp

Market intelligence

Sector strategies

Customer relationships

Sales excellence

Customers & Markets

Employee survey

Leadership Competencies

HR Global 2020

Change to perform

Lead to engage

Enable to grow

HR empowerment

People Success

Mission Statement

Governance

Code of conduct

Leadership

ACT: Network organization

Transparency

Compliance

Systems & processes

Change Management


October 9th, 2014



Group IT Strategy derived from Company Positioning

Change

Management People Success

Performance

Orientation

Customers &

Markets Financial Stability Strategic Push


Group IT Strategy Digitalization of Business Perform & Continue Improvement

Consolidate IT Infrastructure, Data & Processes

Foster Industry 4.0 ecosystem

Global collaboration &

exchange

Follow Cloud Platform Strategy

Handle large-scale Data & Analytics

Joint IT Service Proposition


October 9th, 2014



Transformation and Harmonization of IT Organization

CO ITM

CT ET IS MX SE

Company Standards

BA

Standards

BA

Standards

BA

Standards

BA

Standards

BA

Standards

Global Shared Services IT

External Service Providers

Harmonize

IT on

Business

Area level

Cooperate

with

outsourcing

partners

Centralize

steering of

the

organization

Cooperate

across

Business

Areas

Harmonize

infrastructure

services across

Business Areas

P

L

A

N

B

U

I

L

D

R

U

N

….

….

Regions

….


October 9th, 2014



Transformation: ThyssenKrupp IT Management Matrix and Governance

Global Shared Services IT

IT Components Technology

IT Elevator

Technology

IT Industrial Solutions

IT Steel

Europe

IT Material Services

IT Regionen

Programs/ Templates/ AMC

IT Sourcing Decisions

IT Planning & Controlling

IT Strategy & Architecture

Change Requests/ AMS

CO/ITM

Governance


October 9th, 2014



Business needs driving the Change

Run IT

Transform

Innovate

• Classic industry vs. digital business (e.g. Cooperation 4.0, Cloud Computing)

• IT as a product or within a product

• Cross-linking the Corporate Functions with IT solutions

• Process, added value • Methods of IT design

• Integrated network • Data center • Mobile communication • Desktop, Printers


October 9th, 2014



Example “Infrastructure Consolidation”

Public Cloud Services

Carrier AM

Carrier

EMEA

Carrier

APAC

Private Cloud Service

Public Cloud Service

GDC APAC GDC AM

GDC EMEA Secure

Zones

IAM & IAG

Global Help Desk

Global Operation Center

Group Company


October 9th, 2014



ThyssenKrupp SAP Landscape

TO BE AS IS

SAP + Non-SAP

Data and

Process

Harmonization

Transparency

Reduction of

Complexity and Costs

Operating Control Best-in-Class Processes

Corporate

SAP HANA

CT MX ET IS SE

Business Area templates

Core template + library

> 200 ERP systems 20+ ERP systems

CT

ET

IS

MX

CO

SE


October 9th, 2014



Content

Outlook: The future role of IT

• How does the new IT look like

• Chances to be taken: examples for enabling the business

• Outlook to innovative IT: technology enabling industry

3




October 9th, 2014



Group IT Strategy derived from Company Positioning

Change

Management People Success

Performance

Orientation

Customers &

Markets Financial Stability Strategic Push


Group IT Strategy Digitalization of Business Perform & Continue Improvement



Global collaboration &

exchange





October 9th, 2014



Technology Push

Gain competitive advantage by exploiting new technologies

Technology Push

Mobile Computing

Hybrid IT & Cloud

Computing

Big Data & Analytics

Social Media

Internet of Things

Internal IT as Service Broker

Hybrid IT Scenarios

Cloud Integration becoming

standard in many companies

Demand for new skills

Real-time analytics

Data as new economic resource Collaboration Web 2.0

Digital Natives

New Communication mechanisms

IT Security

Machine to Machine

communications

Industry 4.0

Bring Your Own Device

Global seamless access

Cloud-Client Architecture

Mobile Devices only as gateway Raising amount of mobile devices

(Tablets, Phones, …)


October 9th, 2014



Group IT Strategy derived from Business Objectives Gaining competitive advantage by innovating new technologies

Hybrid IT and Cloud Computing

Change Management

Transparency & Compliance

People Success IT skill profile management

Performance Orientation

IT Efficiency

Customers & Markets

Clear Customer-orientation

Financial Stability IT Agility

Strategic Push Technology Innovation

Internal IT as service broker

Big Data & Analytics

Internet of Things

Mobile Computing

Data as economic resource

New business models

Global seamless access



Facilitate global collaboration & exchange



Group IT Strategy Business Objectives Technology Push


Social Media New collaboration

mechanisms

Strategic Directions Top IT Trends Group-wide Business Objectives


October 9th, 2014



• Development

• Production

• Logistics

• Service

Cooperation 4.0 defines the interaction between business and IT

Collaboration

Platforms

IT Process Optimization

IT Service Mgmt.

Standards

• Industrial plants

• Lifts

• Conveyor systems

• …

Product Portfolio Value Chain

Horizontal cooperation across

value-added networks

Vertical cooperation by

engineering across the entire

value chain

Cooperation 4.0 is characterized by increased cooperation and a high degree of standardization

Cloud-enabled Business Processes

Semantic Security

Augmented Reality

Social IT

Digitalization of the Business

Context-based Services

3D Printing

Seamless Collaboration

Big Data

Cooperation 4.0

Corporate IT


October 9th, 2014



Example Steel Europe: Inter-site production at BA SE calls for autarkic

production network segments to avoid production losses

Business requirements to be met by IT:

Complex network of processing units

• Support of continuous production and discrete

production processes, integrating them in business

control systems

• Uninterruptible supply of the delimited production

stages specific and highly available IT services

• Improvement of planning and control processes and

systems in order to improve adherence to delivery

dates


October 9th, 2014



Example Steel Europe: Planning process must also take into account broad

product portfolio and complex plant structures

ThyssenKrupp Steel Europe

Duisburg, Meeting30.07.2010

3

Beeckerwerth

Bruckhausen

Duisburg Süd, HKM Eichen, Finnentrop

Strangguss

Warmband

Adjustage, Nacharbeit

sonstige Dimensionierung

Kaltband (inkl. Kombi)

Glühen

Feuerbeschichtung

EBA, BBA

Dortmund

Nachwalzen

Bochum

Komplexes Unternehmensumfeld

Werksübergreifender Materialfluß

Network

Orders

Portfolio

Techn.

require-

ments

▪ Complex network consisting of 13 structurally different sites

▪ high logistic effort of on average ~ 3 site changes per order

▪ > 300,000 customer order items per year involving an order volume of ~ 12 million tons

▪ High flexibility conc. order modifications at short notice by customer

▪ Requirement of short delivery times

▪ Dynamic allocation of material to customer orders (subsequent reallocation of material)

▪ Fluctuating backlogs of orders

▪ Broad product portfolio including ~ 28,000 articles of~ 950 steel grades

▪ Almost exclusively customer-specific production ab initio and of products with by-product/by-program requirements

▪ Complex system of rules comprising ~ 15,000-20,000 rules for determining the technical production parameters for an

order (up to 2,800/order)

▪ Many technical restrictions have a non-deterministic impact on the sequencing at the units

▪ Finalization problems in continuous casting


October 9th, 2014



Development of Corporate IT 4.0

IT Basics

Guidance

End-2-End

„Integrators“

Grown IT Working Model Cooperative IT Working Model to support

Cooperation 4.0

IT Control/ Governance

IT Services/ Execution

Plan

Build

Run

IT Architecture Innovation Management

Commodity Infrastructure

Cloud Platform

Templates Patterns Networking Application

Services

Communities … …


October 9th, 2014



Innovative IT: Technology enabling Industry 4.0

It's very hard for me to get a new car.

It's really hard for me to get a new house.

It's really hard for me to move on from

the things that give me stability. Jodie Foster

Stability and flexibility in IT seem to be contradictory at first, but for an innovative, business enabling IT - you need the best of both worlds working together.

ThyssenKrupp is innovating with SAP in many areas including Cloud, Big Data and Analytics in order to gain a competitive advantage.

A vital IT is key for Industry 4.0, Cooperation 4.0 and Digital Business.


October 9th, 2014



Any questions?

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