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Informa/Siemens webinarFebruary14,2018

IndustrialIoTinManufacturing:TheNextBigDigitalDisruptionPresenter:JagannathRao,SeniorVicePresident,IoTandGo-To-MarketStrategy,SiemensIndustry,Inc.

Overview

Digitaltechnologiesaredramaticallychangingmanufacturing.CustomersandthemarketareexpectingInternet-likeflexibilityandtime-to-market.Manufacturersaregrabbingholdofnewtechnologies—likethecloud,edgecomputing,machinelearning,andapplicationprogramminginterfaces(APIs)—togivethemacompetitiveadvantage.

ManufacturersarealsolookingtotheIndustrialInternetofThings(IIoT),amanufacturing-centricimplementationofIoT,tocollect,siftthrough,andanalyzedatacomingfromtheirplants.IIoTispoisedtobethenextbigdigitaldisruption,providingmanufacturerseverythingtheyneedtodecreasecosts,increaseuptime,andimproveproductstomeetcustomerandmarketdemands.

Context

JagannathRaodiscussedmajorchangesmanufacturersarefacingandintroducedtechnologiesthatmanufacturerscanusetosucceedinthechangingmarketplace.

KeyTakeaways

Manufacturingisinthemidstofadigitaltransformation.

Changingmarketandcustomerdemandsaredrivingthedigitaltransformationofmanufacturing,creatingnewbusinessmodelsandecosystemswheremanufacturerswillneedtobecomeproactiveandflexibletoremaincompetitive.

Asbusinessestransform,dataanalysistakesonanevenmorecriticalrole.Today,lessthan5%ofalldatageneratedinmanufacturingplantsisanalyzedforinsights,eventhoughthatanalysiscanbeusedtoincreasereliabilityandpredictpotentialfailures.Analyticscanpredictproblemsthatleadtocommonissuesinthefactory—warrantyissues,rejects,rework,poorquality,andwaste—andimprovereliability

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fortheparallelprocessesinwhatMr.Raoreferstoasthe“HiddenFactory.”TheHiddenFactoryincludesaspectsoffactoryoperationswherevisibilityisoftenlacking.

“Wearestillreacting;wearenotproactive.Weneedtobedoingmuchmorewiththisdatainharnessingtherichnessthatenablesustobepredictive.”–JagannathRao

Fourkeydigitaltechnologiesaredrivingchangeinmanufacturing.

Thesefourdigitaltechnologiesarecloudcomputingandanalytics,edgecomputingandanalytics,machinelearninganddeeplearning,andAPIs.

CloudComputing

Cloudcomputingmovesdataandprocessesfromthepersonalcomputer,whichhaslimitedstorageandprocessingpower,totheInternet.

WhatistheCloud?

• Hostsservers,networks,virtualmachines(VMs),applications,andservicesovertheInternet

• Offersunlimitedscalablecomputepower• Providesunlimitedscalablestoragecapacity• Isasecuresolutionwithrobustperformance• Enablescomplexapplicationdevelopmentwithadvancedanalytics• Offerspay-as-you-usepricingmodelsforflexiblebudgeting,

processing,andstorageneeds

EdgeComputing

Edgecomputingoptimizescloudservicesbyperformingdataprocessingandanalyticsnearthesourceofthedata,pre-processingdatatoavoidsendinglargevolumestothecloud.Edgecomputingisidealfor

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mission-criticalapplications,whereproblemsneedstobeidentifiedandresolvedquickly,beforeinsightcomesbackfromthecloud,aswellasforsensitivedata.Remotefacilitieswithlowbandwidth—includingoilrigsinthemiddleoftheoceanthatonlyreceivea2Gcellularsignal—findedgecomputingbeneficialsotheyarenotreliantonthecloud.Thistechnologyalsoreduceslatency,meaningdatacanbeworkedwithinnearrealtime.

MachineLearningandDeepLearning

Machinelearningusesalgorithmstoparsepastdata,learnfromit,andmakeapredictionorinfersomethingabouttheworld.Thesealgorithmscanlearnfromexperienceandbuildmodelswithoutexplicitprogramming.Deeplearningisasubsetofmachinelearning,inwhichartificialintelligence(AI)hasnetworksthatarecapableoflearning—unsupervised—fromdatathatisunstructuredorunlabeled.Imageclassification,objectdetection,andfacialrecognitionarealldrivenbydeeplearning.

APIs

APIsenabledeveloperstodesignproductspoweredbyaservice,likethoseavailableinthecloud.ModernAPIsadheretostandards,typicallyhypertexttransferprotocol(HTTP)andrepresentationalstatetransfer(REST),thataredeveloper-friendly,easilyaccessible,andbroadlyunderstood.WhilemanyAPIsarefreetouse,somehavebecomesovaluablethattheycomprisealargepartofrevenueformanybusinesses.

IIoTbringstogetherdatafromdisparatesources,enablingholisticanalysisandinsight.

Individualcomponents,machines,andsystemsinmanufacturingplantsgeneratelargeamountsofdata.Butbecausetheinformationcomesfromdisparatesourcesandtypicallyremainsseparate,itisimpossibletogainaholisticview.Usingcloudandedgecomputing,machineanddeeplearning,andAPIs,IIoTbringstogetherthisdata,offeringmanufacturerstheabilitytogainholisticinsightthroughanalysis.

Mr.RaosharedanexampleofhowIIoTwasusedinabottlingandpackagingplanttodecreasecostsassociatedwithunplanneddowntimewhenonemachinefailed.

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UseCase:IIoTinabottlingandpackagingplant

Pre-IIoT:Plantchallenges Post-IIoT:Benefits

• Planthasmultipleconveyerlines,eachwith250ormorefractionalhorsepower(FHP)motors

• Motorswereallowedtoruntofailure;thecostofmonitoringeachmotorismoreexpensivethanthemotoritself

• Unplanneddowntimeimpactsproductivity,leadingtowaste,rework,excessinventories,andotherhiddenfactoryissues

Usingdatafrominexpensivesensors($10each)placedoneachmotor,themanufacturerwasabletopredictmotorfailure,sofailingmotorscouldbereplacedduringaplannedplantshutdown

“IIoTisaverycost-effectivesolution,andatthesametime,verymeaningfulinthecontextofthemanufacturingplant.”–JagannathRao

NotonlydoesIIoTincreaseproductivityandloweroverallcosts,butitisquicklybecomingtablestakes.AsIIoTuserises—50billiondevicesareexpectedtobeconnectedby2020,andby2025,85%ofmanufacturerswillbeusingIIoT—businessesthatdonotadaptwillbedisruptedandwillnotremaincompetitive.

EquipmentsuppliersalsoseeincreasedbusinessvaluewithIIoT.

ManufacturersoperatingIIoT-connectedequipmentaren’ttheonlyonesseeingbenefits;equipmentsuppliersarealsoexperiencingvaluefromIIoT.

Bycapturingandanalyzingequipmentdata,supplierscanincreaseserviceefficiencyandreducewarrantycostswhileofferingcustomersadditionalanddifferentiatingservices,suchasavailabilityandperformanceguarantees.SupplierscanalsousedatainafeedbackloopwithR&D,allowingimprovementsbasedonreal-worldmetrics.

Siemensoffersdeveloper-friendlyIoTsolutionsforrapidandrobustimplementations.

Developer-friendlyIoTandIIoTsolutionsallowbusinessestoputrobustsolutionsinplacequickly.MindSphereofferseasyaccess,providesrapidsolutionimplementation,anddeliversrobustsupport.

MindSphererobustandsmartdeveloperservices

Easyaccess • DedicatedIoTtenant• Openplatform-as-a-service(PaaS)• Scalableandcosteffective

Rapidlyimplementsolutions

• OpenAPIs• Reusablemodules• Nativecloudaccessibility

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Robustsupport • Developercommunity• Flexibletraining• MindSpherestore

AdditionalInformation

FormoreinformationonSiemensMindSphere,visitwww.siemens.com/mindsphereorwww.mindsphere.io.

Biography

JagannathRaoSeniorVicePresident,IoTandGo-To-MarketStrategy,SiemensIndustry,Inc.JagannathRaoistheSeniorVicePresidentfortheIoTandGo-to-MarketstrategiesfortheCloudApplicationServicesbusinessunitintheDigitalFactoryDivisionforSiemens.Heisresponsibleforthedatadrivenservicesbusiness(IIoT)whichincludesMindSphere,theBigDataplatformtechnologyforSiemensforDigitalServices.Theportfolioincludesthewidespreadapplicationof“BigData”technologiesintherealmofmanufacturing,coveringtopicssuchasplantanalytics,assetanalyticsandotherdigitalservices.