Manufacturing in an Era of Internet of Everything

Internet Business Solutions GroupJay ChungPuneet K Bhatia

Imagine ‘automobile as a service’ …. A disruptive automotive business model

+ safe city driving

+ artificial intelligence+ retailing

+ smart services (e.g. CBM)

+ traffic efficiency

+ infotainment

+ home networks

+ communicate

= Automobile as a service

= a whole new ecosystem .. Disruptive business model

Source: Cisco IBSG, 2013

+ green

1a

Imagine ‘fleet as a service’ .. A prosperity model for fleet owners

Source: Cisco IBSG, 2013

1b

+ Revenue max.

+ Safety

+ Fleet health (CBM)

+ Smart fueling

+ Network management

+ Smart services (e.g. insurance)

+ Compliance+ Driver behavior

+ artificial intelligence

= fleet as a service

= demand connected with supply..

Imagine hence smart products & services – new segments, new business models, new possibilities …

Source: Cisco IBSG, 2013

Personal

Commercial

Products Services

• Cars• Home appliances• Personal gadgets• Smart phones• ….

• Commercial fleet vehicles

• Industrial machinery and equipment's

• Aircrafts• ….

• Automobile as a service• Smart homes• Smart grid• Virtual assistants• ….

• Smart buildings/ campuses

• Industry exchanges (e.g. freight exchange, MRO exchange etc.)

• Smart utilities• ….

1c

….Shifts

Imagine maintaining assets ‘IN’ your plants smartly and virtually?

2a

Wireless data acquisition modules

M2M1 gateway

Video

Predictions/ Alerts/ Notifications

Virtual Operations.

Designated Maintenance Expert

Process command and instructions to nearest expert/ functional expert

Response

Instruction manual and Case Library

1 M2M is ‘Machine to Machine’

Sensor data and video images

LAN/ WAN

Virtual DC

Source: Cisco IBSG Manufacturing Engagement, 2013

Imagine providing a health and safety compliant environment to workforce?

2b

Source: Cisco IBSG Manufacturing Engagement, 2013

Wireless data acquisition modules

Video

Alerts/ Notifications

Virtual Ops.

Response

Staff wears sensor and activates ‘help button’

Location tag

Event Response Teams

Process command and instructions to nearest expert/ functional expert

Instruction manual and Case Library

3rd party access

M2M1 gateway1 M2M is ‘Machine to Machine’

Sensor, Location Tag and Video Images

LAN/ WAN

Virtual DC

Imagine maintaining assets ‘ACROSS’ your plants smartly and virtually?

2c

Virtual Ops. Center: Plant Monitoring, Preventive Maintenance, CBM, Trouble shooting complex units, Plant Simulation, Equipment Performance Evaluation, System Performance Evaluation, Training, Knowledge Management, Spare Parts Management, Risk Management, Safety and Security etc.

Enterprise cloud

Enterprise Apps

Tools & Apps

IT Department

Process execution

Users

Initiate WO

Notifications, Alerts etc.

Process fulfillment

Machine performance data

Instructions/ Troubleshooting

Enterprise Data

Core Applications Plant Maintenance Module

ERP/ CRM BI/ Analytics SCM

Industrial Partners e.g. Honeywell, Rockwell etc. (e.g. spare part supply, remote consulting, remote diagnostic, remote training)

Machine data, Trends etc.

Tools

Internal functional experts

Tools (e.g. )

Available across Enterprise network

Global Plant Network

Support

Source: Cisco IBSG Manufacturing Engagement, 2013

Imagine an interactive workforce across enterprise?

Source: Cisco IBSG Manufacturing Engagement, 2013

2c

Wireless data acquisition modules

Kiosks/ Signage's within sections of plant

M2M1 gateway

1 M2M is ‘Machine to Machine’

Automation Possibilities

Andon MES Data Information boards

Plant metrics Corporate Messaging

Safety information

Public announcements

HR Processes & Processes

Pull/ Distribute

Push

LAN/ WAN

Upload

Download

Remote Users (e.g. HR)

Global Plant/ Enterprise Network

Imagine having an end to end supply chain network visibility?

3

aSupply Hubs…. Connected warehousing

Connected warehouses (designed on VMI/ SMI principles) on a shared basis across the network servicing the key auto & aftermarket clusters and providing part visibility and accuracy across locations and consumption points

b cControl tower…. network visibility

Enabling OEMs and Part Suppliers to manage the events across the network (inbound and outbound) by connecting physical warehouses & transportation requirements

Transportation exchange … provide reach and access

Transport supply

Directly connect the transportation demand with the fleet owners and removing the intermediary layer – allow for efficient procurement of transportation services

Platform

Transport demand

Source: Cisco IBSG auto engagement in India

Imagine the customer data explosion across the omnichannel?

4a

Source: Cisco IBSG auto engagements

Information search and interaction points (e.g. social media)Unstructured

Self service interactive touch points (e.g. brand websites, interactive kiosks)Semi-structured

Access to experts – virtual dealership, mobility

Semi-structured

Purchase points – dealer showroom

Structured

Imagine an entirely new form of customer experience

4b

Source: Cisco IBSG auto engagements

Imagine being smart and relevant to customers across the omni-channel?

4c

Source: Cisco IBSG auto engagements

Enterprise cloud

Enterprise Apps

Tools & Apps

IT Department Process fulfillment

Customer interaction data

Interactions

Enterprise Data

Core Applications Plant Maintenance Module

ERP/ CRM BI/ Analytics SCM

Partners e.g. Component Suppliers, Advtg. Firms, Banks, Insurance, Trainers

Customer/ Enterprise needs

Tools

Internal functional experts

Tools (e.g. )

Available across Enterprise network

Support/ Experience enablers

Customer touch points

Process execution

Customers Search, view, compare and request test drive

Notifications, Alerts etc.

Initiate purchase process

Enterprise functions e.g. R&D, Marketing, Sales, Training etc.

Imagine an entirely new model of enterprise collaboration – a smart workplace

5a

Source: Cisco IBSG customer engagementsEnterprise functions e.g. R&D, Marketing, Sales, Training etc.

Collaboration effectiveness

Collaboration reach

Within function (same location)

Across functions (same location)

Within functions (across locations)

Across functions (across locations)

Customers, Suppliers, with same IT base

Customers, Suppliers regardless of base

Anyone, anywhere

Text Voice & Video

DocumentsTelepresence

Meeting rooms

Video on demand

Unified communications

Contact center

Voice mail

Social Networking

Discussion forums

Wikis/ Blogs

Emails

IMsVirtual Experts

Connected workplace

Workstation

Quiet rooms

Touchdown

eCafe

Project rooms

Open project areas

Conference/ trainingDesign studios/ rooms

Virtual office

… requires a new way of provisioning resources in the smart workplace

5b

Source: Cisco IBSG customer engagements

Enterprise functions e.g. R&D, Marketing, Sales, Training etc.

Virtualized Collaborative Workspace

1) User 1 on any device 2 at any location logs in

1 users can be external 3rd

party consultants, vendors or internal employees in any location anywhere2 any client – mobile, zero, thin or thick5 data, voice and video

Virtualization aware borderless network

LAN/ WAN/ Internet

2) Virtualization aware network 3 assembles virtual desktop on demand 4 based on user profile and including OS and applications.

3 connects the data centers, plants, retail outlets, Other offices and Remote workers

Virtualized Data Center

4 Based on a Unified Data Center Architecture designed to create efficient, agile and transformative data centers –consolidate the DC infra, reduce energy costs, improve workforce productivity and ensure business continuity

User Profiles

Applications

Operating System

3) Dynamically mapped and adjusted in real-time based on user requirements 4

Compute + Switching + Storage + Virtualization

4) Delivered securely and with high-performance over LAN or WAN or Internet 4

5) Superior end user experience 5

IoE value in Manufacturing – The 5 high priority business themes

Smart products .. services

Smart operational processes

Advanced analytics

Source: Cisco IBSG, 2013

Connect devices, machines, facilities, transport fleets, grids and networks with advanced sensors, controls and software apps

Visual plant operations, asset and people visibility, interactive and mobile plant workforce

Visual supply chains

Inbound and outbound visibility and risk management

Customer experience

Omni-channel experience

Combination of power of science (physics, chemistry etc.), analytics, predictive algorithms, domain knowledge

1 2 3 4

People at work

5

Connecting people (enterprise, partners and customers) anytime to support R&D, Operations, Maintenance, Service Levels and Quality

In summary each of the business themes link to an industry trend….

Source: Cisco IBSG 2013

Industry trend Top 5 business themes

• Digital consumers • Scarcity of key resources• Globalization and search for new markets• Regulatory (environmental, labor etc.)• Financial markets • Increasing complexity (across products

and segments)• Technology diffusion (virtual way of doing

things)• Global knowledge society

“Smart products… services”1

“Asset utilization & people visibility”2

“Supply chain/ Logistics efficiency”3

“Customer experience”4

“Smart workplace”5

Simple steps to begin capturing your share of IoE value

• Identify the goal – governed by business but three different reasons

• Build a roadmap – leverage portfolio management approach

• Consider internal changes and key capabilities required to embrace IoE

• Consider ICT consumption models that will best support IoE

What’s your aspiration – three different reasons

Aspiration

Context

Run and rebalance IT portfolio

Redesign IT portfolio

Innovate IT portfolio

Better execution of current ops. to improve competitiveness

• Current IT architecture supports strategy

• Room for improvement in key business processes

Redesign operations to improve cost and/or increase growth

• Current IT architecture does not supports strategy or is inefficient

Change the game by innovating across the industry value chain

Industry discontinuity• Tap latent demand• Redefine roles• Change cost structure

Defining the IoE roadmap and investments

Short term Medium term Longer termBusiness direction

Business demands

Technology themes

• Improved operating efficiency

• Workforce mobility and visibility

• Industrial wireless• Smart workplace

Business Aspiration

Run and rebalanceBetter execution of current ops. to improve competitiveness

Key technology considerations

• To be defined

• Optimized property, plant and equipment

• Improved HSE • Real time BI

• Smart factories• Supply chain

visibility

RedesignRedesign operations to improve cost and/or increase growth

• New business and ops. Models

InnovateChange the game by innovating across the industry value chain

• Innovative retail models• Connected products/

services

• To be defined • To be defined

Key takeaways

• Internet of Everything (IoE) will transform manufacturing into a highly interconnected and a collaborative ecosystem

• It will create new possibilities for innovation and operational excellence

• … hence will need a new form an enterprise – “smart workplace”

• ICT investments hence have to be aligned to 5 business themes and aspirations

• … and will require a completely new approach to investments – a portfolio approach

Questions?

Thank You

TOMORROW starts here.