20140324 sdsc for id_tech_ex thorsten schroeer

The New Software Defined Supply Chain:How New Technology Is Re-Writing The Rules for Manufacturing, Global Trade & Investment

IBM Institute for Business Value Berlin, April 1st 2014

© 2014 IBM Corporation© 2014 IBM Corporation

Thorsten Schrö[email protected]+49 172 2039067

People can have the Model T in any

© 2014 IBM Corporation© 2013 IBM Corporation2

People can have the Model T in any color – so long as it’s black.

HENRY FORD

Ford Automotive Output, 1901-1914

$5 Daily Wage IntroducedAssembly time down to 1.5 hours

© 2014 IBM Corporation3

Shift to moving production line

Model T IntroductionAssembly Time Per Car: 14 Hours

Ford Automotive Output, 1901-1924


STANDARDIZATION MODULARIZATION DIGITIZATION


PARTSCUSTOM STANDARD

3 KEY RULESOF PRODUCT DESIGN


COMPONENTS MODULESASSEMBLY

MECHANICAL DIGITALCONTROLS

3 CHARACTERISTICSOF INDUSTRY STRUCTURE & TRADE

Economies of Scale BIG


Multi-Tier Supply Chains COMPLEX

Low Cost Supply Chains GLOBAL

3 NEWTECHNOLOGIES

3D PRINTING OPEN SOURCEINTELLIGENT ROBOTICS


STANDARDIZATION

3D PRINTING

NO ECONOMIES OF SCALE

COST PER UNIT VOLUME PRINTED$/CUBIC CM - BLENDED AVERAGE

-


ON DEMAND MANUFACTURING

LOCATION ELASTIC

-79% -

92%

MODULARIZATION

ROBOTICS

HARD AUTOMATION

FLEXIBLE

TYPICAL COST PER ROBOTIC ASSEMBLY STATION


FLEXIBLE ROBOTICS

INTELLIGENT ROBOTICS

-90%

DIGITIZATION

INTELLIGENCE

MOORE’S LAW

OPEN SOURCE HARDWARE DESIGNS ON THINGIVERSE


OPEN SOURCE

HARDWARE CONSTRAINED

BUILD A MOLD OR

CAST

HARDWIRE PRODUCTION

LINE

DEVELOP EMBEDDED

CHIP


SOFTWARE DEFINED

PRINT PARTS DIRECTLY BY SOFTWARE

RECONFIGURE ASSEMBLY THROUGH

SOFTWARE

DIGITAL CONTROLS USING SOFTWARE

SOFTWARE DEFINED


Will be most affected by

Strategies should you

Are the best locations to

Will these technologies

Do I need to re-engineer my

▶▶▶▶ WHO ▶▶▶▶ WHAT ▶▶▶▶ WHERE ▶▶▶▶ WHEN ▶▶▶▶ WHY


these technologies?

adopt to be competitive?

invest going forward?

impact investment decisions?

end-to-end business processes?

4 DIFFERENT PRODUCTS COSTVOLUMESIZECOMPLEXITYPERSONALIZATION


WASHING MACHINE

INDUSTRIAL DISPLAY

MOBILE PHONE

HEARING AID

5 GLOBAL LEADERS

IBM RESEARCHJohn Cohn

Phil Reeves Leo Bonnanni


John Cohn

PLANT LOCATION INTERNATIONALDavid Zaharachuk

Mike Watson Alex Scott

EACH PRODUCT INDIVIDUALLY TORN DOWN


1 INTEGRATED MODEL


PLANT LOCATION INTERNATIONAL

3 AMAZING RESULTS

COST

SCALE


SCALE

CO2 IMPACT

LOWER COST

23%

AGGREGATE NORMALIZED UNIT COST


23%CHEAPER

LOWER SCALE

90%

AGGREGATE NORMALIZEDMINIMUM ECONOMIC SCALE


90%LESS VOLUME

REQUIRED

NOT NECESSARILY GREENERAGGREGATE NORMALIZED CO2 ANALYSIS

9%HIGHER


HIGHER

67%LOWER

SMALL

SIMPLE


SIMPLE

LOCAL

RECOMMENDATIONSFOR INDUSTRY


FULL REPORT & MODEL NOW AVAILABLE

© 2014 IBM Corporation© 2013 IBM Corporation32

FULL REPORT & MODEL NOW AVAILABLE ONLINE AND ON YOUR MOBILE DEVICE

20140324 sdsc for id_tech_ex thorsten schroeer

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