MAY 2017 Digital Industrial Revolution · A $4 –11 trillion digital opportunity by 2025 “Eye of...
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MAY 2017 Digital Industrial Revolution Bearing Specialists Association Greg Scheu, President ABB Americas
Transcript of MAY 2017 Digital Industrial Revolution · A $4 –11 trillion digital opportunity by 2025 “Eye of...
MAY 2017
Digital Industrial RevolutionBearing Specialists Association
Greg Scheu, President ABB Americas
Industrial Revolutions
April 7, 2017 Slide 2
1st Industrial Revolution
1784
• Steam engine
• Water
• Mechanical production
2nd Industrial Revolution
1870
• Electricity
• Mass production
• Division of labor
3rd Industrial Revolution
1969
• Computers
• Automation
• Electronics
4th Industrial Revolution
Now
• Artificial intelligence
• Internet of Things
• 3D printing
Media is focused on B2C but the growth opportunity is in B2B
April 5, 2017 Slide 3
Digital technologies are driving new innovation in industrial markets
Virtual/augmented
reality
Software-defined
machines Machine learning
Time-sensitive
networking Big data
Inexpensive computing Cloud computing Cybersecurity Connectivity Blockchain
A $4 – 11 trillion digital opportunity by 2025
“Eye of the storm” for massive value migration
April 5, 2017
1Based on top-down estimate of potential net economic benefit, including consumer surplus
Sources: McKinsey Global InstituteSlide 4
Range of sized potential
economic impact Low
High
Disruptive technologies will have substantial impact by 2025 (economic impact of 12 most significant technologies, $ trillions, annual)
3.9 – 11.1
3.7 – 10.8
5.2 – 6.7
1.7 – 6.2
1.7 – 4.5
0.2 – 1.9
0.7 – 1.6
0.1 – 0.6
0.2 – 0.6
0.2 – 0.5
0.1 – 05.
0.2 – 0.3
Internet of Things
Mobile internet
Automation of knowledge work
Cloud technology
Advanced robotics
Autonomous and near-autonomous vehicles
Next-generations genomics
Energy storage
3D printing
Advanced materials
Advanced Oil & Gas exploration and recovery
Renewable energy
1
2
3
4
5
6
7
8
9
1
01
11
2
Computing + connectivity + cloud + analytics set to unlock value
Industrial markets primed to adopt digital technologies
April 5, 2017
Note: relative size of industry for advanced economies
Source: ABB analysisSlide 5
Time
Digital S-Curve
Level of
digitalization
Industrial end-market
Other industries
Not “business as usual”
April 5, 2017 Slide 6
Accelerating rate of change: new entrants
42
22
0
10
20
30
40
50
2009 2015
Median Age of new entrants to the S&P 500
Customer value
April 5, 2017 Slide 7
Benefit
Security
Safety
Yield
Speed
Uptime
On-premise, in the cloud, and in an ecosystem
Interoperability
April 5, 2017 Slide 8
Fog Cloud Intercloud
Edge
Device
Cloud
Edge
Device
Lumada
Predix Mindsphere
Ecostruxure
ABB Ability™
Making solutions and data safe for mission-critical applications
Security, data, and IP
April 5, 20171Link to blog post; 2Link to blog postSlide 9
Secure systems:
Secure operations
Threat detection
Secure communications
Secure updates
Secure boot
Customers own their data:
Identity
Measurement data
You know what we do with your data
We only share data with your consent
Customers own their IP:
No loss of intellectual property
𝑓(x)=$
Mastering the industrial customer
April 5, 2017 Slide 10
What does it take to win in digital?
From physical to digital differentiation
Maintenance
Operation
Control
Service action
Set points
Control signals
Plant / equip. health
Operational data
Measurements
Improved productivity (<200%), reduced energy (<30%), & longer product life (<30%)
April 5, 2017 Slide 11
Industry SELECTION
Connected robots
Manufacturing execution
systems Energy assessment Cybersecurity assessment
Digital simulation for robot
deployment
Power quality monitoring &
demand-response Distributed control systems
Remote monitoring &
optimization
Digitally connected products and services providing expertise
April 5, 2017 Slide 12
Auto service analogy
Digitally connected products and services providing expertise
April 5, 2017 Slide 13
Auto service analogy
Digitally connected products and services providing expertise
April 5, 2017 Slide 14
Auto service analogy
Digitally connected products and services providing expertise
April 5, 2017 Slide 15
Distributor Opportunity
Upsell sensors
Digitally connected products and services providing expertise
April 5, 2017 Slide 16
Distributor Opportunity
Upsell sensors
Upsell monitoring
Digitally connected products and services providing expertise
April 5, 2017 Slide 17
Distributor Opportunity
Upsell sensors
Upsell monitoring
Your value to customers increases as solutions
advance
Digitally connected products and services providing expertise
April 5, 2017 Slide 18
Distributor Opportunity
Upsell sensors
Upsell monitoring
Your value to customers increases as solutions
advance
New models for distribution a win for customers
and a win for distributors
Using connected digital solutions to deliver expertise for customer value
Future blueprint for digital
April 5, 2017 Slide 19
Integrated
Connected
Supported
Data-driven
Physical + Digital
Flexible
Secured & Trusted
Expertise
April 5, 2017 Slide 20
Digital Industrial Revolution
Questions & Answers
