© Datix 2015 Confidential

Presentation Title

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IoT and What it Means for Manufacturing

Bryan Sapot, CEO — Datix

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About MeBryan Sapot

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• CEO and Founder of Datix

• 18 years in enterprise software

• Custom Software

• Manufacturing

• Distribution

• Expertise in…

• Business process

• Systems integration

• Software development

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What is the Internet of Things?

Devices with electronics and sensors connected to the public telecom network and

the internet.

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Consumer Examples

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Manufacturing/Industrial Examples

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Big Data

Large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially

relating to human behavior and interactions.

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Big Data Example - Netflix

• Kevin Spacey +

• David Fincher +

• British political dramas =

• Guaranteed Hit

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Big Data

• The size of the data is not important

• It is not just for Google, Amazon and GE

• Ability to analyze the data, make informed decisions and take action

• You don’t need Artificial Intelligence to understand your data

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The Industrial Internet of Things

A network of physical objects, systems, platforms and applications that contain embedded technology to

communicate and share intelligence with each other, the external environment and with people.

IoT + Big Data = Industrial Internet

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Aren’t we already doing this?

• Yes! – (Sort of)• Machines already have sensors

• Machines can be connected to the internet or local network

• Software exists to monitor the machines

• But it is just the beginning

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Where We Are Today

• First step on the IIoT Journey • Focus on operational efficiency

• Utilization

• Productivity

• Tools• SCADA

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What is different now?

• Cheap hardware

• Unlimited computing power

• Internet access almost everywhere

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I can now predict what will happen and move from Reactive to Proactive

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Example: Predictive Maintenance

• Companies are seeing • Savings on scheduled repairs (12%)

• Reduced maintenance costs (nearly 30%)

• Fewer breakdowns (almost 70%)

• GE Predix• Cloud Service

• Analyzes machine data

Sullivan, G. P., R. Pugh, A. P. Melendez and W. D. Hunt. “Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency”.August 2010

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DemoA very simple one

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IIoT In the Future

World Economic Forum Agenda 2015, Accenture. Industrial Internet of Things: Unleashing the Potential of Connected Products and Services. January 2015

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New Product/Service Hybrids

• Pay per use• Number of parts produced

• Runtime

• Software based services• Additional revenue streams through software services and monitoring

• Data monetization• Analyzing collected data and selling the results or raw data

• Maintenance

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Rolls-Royce Total Care

• Rolls-Royce’s TotalCare

• Provides suite of predictive maintenance and

repair services for its jet engines

• Includes monitoring engine health, and

modifying engines to increase reliability and

durability.

• Customers pay for product reliability. As the

product-service provider, Rolls-Royce

assumes the entire risk of time-on-wing and

shop visit cost.Total

Care

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IIoT In the Future

World Economic Forum Agenda 2015, Accenture. Industrial Internet of Things: Unleashing the Potential of Connected Products and Services. January 2015

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Outcome Economy

• Shift from selling products or services to measurable outcomes

• Example: Monsanto• Mapped all 25 million acres of farms in the US

• By field shape, crop type, crop yields, soil capacity, etc.

• Added climate data

• Can predict what will grow best where

• Make recommendations to farmers

• Increases productivity, saves water and energy

• Could charge on outcome rather than seed, fertilizer cost

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Recap

• Shift from selling products or services to measurable outcomes

• Example: Monsanto• Mapped all 25 million acres of farms in the US

• By field shape, crop type, crop yields, soil capacity, etc.

• Added climate data

• Can predict what will grow best where

• Make recommendations to farmers

• Increases productivity, saves water and energy

• Could charge on outcome rather than seed, fertilizer cost

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Questions?

For slides download at DatixInc.com/MAMslides

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Summary

• IoT + Big Data = Industrial Internet

• What’s Different• Cheap hardware

• Unlimited computing power

• Internet everywhere

• Product/Service Hybrids• Change they way customers buy

• Rethink your go to market strategy

• Innovate & Dominate