Siemens Digitalization Strategy & Sinalytics Platforma...Siemens Digitalization Strategy &...

Unrestricted © Siemens AG 2016 siemens.com

Siemens Industry Analyst Briefing CallSiemens Digitalization Strategy & Sinalytics PlatformDr. Horst J. Kayser, Chief Strategy Officer Siemens AGDr. Norbert Gaus, Head of Siemens Research and Technology Center | Munich, January 20, 2016

Unrestricted © Siemens AG 2016January 2016Page 2 Corporate Strategy / Corporate Technology

– 26 high-speed trainsat Renfe Spanish RailCompany (Madrid-Barcelona-Malaga)

– Performance contractwith availabilityguarantee

– Passengers arereimbursed for delays>15 mins

– On-time rate of 99.9%

– 60% passengersswitched from aircraftto train


Demographic change

Urbanization

Climate change

Globalization

Five Megatrends shaping our world of tomorrow –changes in the markets are accelerating

1 UN World Population Prospects (2015)2 Met Office Hadley Centre observations (2014)

3 McKinsey Global Institute Cityscope (2011)4 UNCTAD (2013)

5 Cisco: The Internet of Everything (2013)6 IDC: The Digital Universe (2012)

Digital transformation

Trend to increaseinvestment abroad

Growing and ageingpopulation

Cities as main driverof GDP growth

Global warming andweather extremes

Contribution to global GDP growth,2007-20253, in %

Foreign direct investmentvs. global GDP, in %4

World population1, in bn Annual mean temperaturevariations 1950-20142 (in °C)

Connected devices5, in bn

-0,3

0

0,3

1950 1970 1990 2010

0.3

-0.3

0

2

4

6

1970 1976 1982 1988 1994 2000 2006 20122013

Other citiesand rural areas38%

Cities >10mn

5mn – 10mn

2mn – 5mn

150k – 2mn

50

239

2012 20202016

Exponentialgrowth ofconnecteddevices ...

… anddigital data6

2.8 ZB40.0ZBZB = Zettabytes = 109 Terabytes

9.000.16

1.92 0.836.10

0.12

2015

1.25 -0.010.00 1.36

2050

Developingcountries

Industrialcountries 15-65

65+

0-14

Age


Global trends

Siemens strategy – ‘Ingenuity for Life’

Market development (illustrative)

DigitaltransformationNetworked world of complexand heterogeneous systems

GlobalizationGlobal competition drivingproductivity and localization

UrbanizationInfrastructure investment needsof urban agglomerations

DemographicchangeDecentralized demand of agrowing and aging population

Climate changeHigher resource efficiencyin an all-electric world Efficient Energy

ApplicationPower Transmission,Distribution &Smart Grid

PowerGeneration

Imaging &In-VitroDiagnostics

Today Mid term – 2020

Electrification ~2–3%1Market growth

Automation

Digitalization~4–6%1Market growth

~7–9%1Market growth

Innovating along the electrical value chain

1 Est. market growth (CAGR) over cycle


Siemens Digitalization

Siemens Digitalization –Leveraging digital technology trends for concrete customer benefits

Connectivity andWeb-of-systems

Collaborationand mobile

Smart data andanalytics

Cloudtechnologies

Cyber-Security

Maintenance &services

Automation &operation

Design &engineering

Improved productivity &time-to-market

Higher flexibility &resilience

Increased availability &efficiency

Combining the virtual & physical world …… across entire customer value chains


Digitally enhancedelectrificationand automation

#1 automation player in industry,buildings, grids, power plants, and rail

€0.6 billion revenue in FY15

+15% yoy growth FY15

>300k devices– Remotely monitored and administered– Data driven– Analytics enabled

Digitalservices



Leading provideracross verticals

Verticalsoftware

Customer benefit translates to substantialrevenue growth for Siemens – Siemens Digitalization

XHQ


Digitally enhancedelectrificationand automation

#1 automation player in industry,buildings, grids, power plants, and rail



>300k devices– Remotely monitored and administered– Data driven– Analytics enabled

Digitalservices



Leading provideracross verticals

Verticalsoftware

Customer benefit translates to substantialrevenue growth for Siemens

XHQ


Sinalytics Platform powers Siemens Digital Services

Connectivity

300,000+connected devicesincluding wind turbines,buildings, trains

Advanced analyticsCreating new insightsfrom smart data byleveraging world-classtechnologies

Customer outcomes─ Higher availability─ Lower costs─ Increased

performance─ More security

Know-how─ Product, domain and

data science know-how─ Overall IT know-how

with about 17,500software engineers

─ 160 Data Scientists


The Digital Transformation of Services

Improving efficiency of classical services

Performance & Outcomebased Contracting

Classical Time &Material Maintenance

NetworkPlatforms

E.g. Digitaldiagnostics

E.g. AugmentedReality for trainingand MaintenanceRepair andOverhaul

E.g. digitallyoptimised workscheduling



1. Predictive Maintenance 2. Performance-based contracts 3. Outcome-oriented contracts



NetworkPlatforms

E.g. Healthcare E.g. Power ServicesE.g. Mobility

Power Services

ObjectivesImprove customerROI through flexibleservice in anymarket condition

ObjectivesPrevent unplanneddowntime of CTscanners causedby tube failures

ObjectivesIncrease availa-bility and reliabilityof trains

PreventiveMaintenance

ReactiveMaintenance

Condition-basedMaintenance

PredictiveMaintenance

PrescriptiveMaintenance


Digital Service

Siemens Digital Services Portfolio – Overview

Remote servicesbased on deviceconnectivity– Data generated by

connected devices andtransferred for evaluation

Data analytics-enabled services– Value added by additional

insights generated fromavailable data

Network Platforms– Generation of additional

value by bringing togetherrelevant experts and data

Division view (examples)

PGPower generation, transmission & distribution

PSWP EM

– Power Plant optimization, remote support/-operation– Flex LTP, data-driven upgrades of turbines– Fleet statistics of power plants and wind farms– Wind farm optimisation– Performance contracts / consulting– SCADA, WTC3 and vibration diagnostics– Remote Monitoring (Switchgear and Transformers)– Smart Grid Asset performance management / security

services– Smart Grid Asset operation services

BT

– System performance services– Building performance / energy optimisation services

– Smart Guidance– Smart Monitoring– Smart Data Analysts– 3D printing for optimised parts logistics

MO

– Master Asset Uptime– Optimise energy performance– Maximise process efficiency– Enhance Industrial Cyber security

DF PD

– Predictive maintenance– Network platform for diagnostic exchange

HC

Building Technologies

Mobility

Healthcare

Digital Factory & Process and Drives


Drive train analytics

Industrial NetworkAnalytics

Machine tool analyticsSecurity Assessments andImplementation

Security ManagedServices

Digital Services Example –Digital Factory

Master asset uptime Enhance Industrial Cyber-SecurityOptimize Energy Performance

Maximize process efficiency

Control performanceanalytics

Process event analytics

Dynamic processoptimization

Energy analytics


Siemens Digital Services demonstrateproven success in diverse industries

US car manufacturerEnergy Analytics

EU car manufacturerAsset Analytics

Global pharma companyEnergy Analytics

Food and Beverages

EU Coffee ProducerEnergy Analytics

Pharma

Higher resourceefficiency

Higher plantavailability

12% energycost savings

Target – 5% energycost savings

EU Manufacturerof asphaltEnergy Analytics

Antea Cement (ALB)Asset Analytics

Pilkington (UK)Energy Analytics

Int. Oil & Gas companySecurity Services

147% RoINo unplannedsystem downtimes

Over £1 millionenergy cost savings

0% incidents within18 months

Minerals Glass ChemicalCement

Automotive





NetworkPlatforms

Fieldlevel

NetworkPlatformFocus

Benefit

MindApps

Industrial equipment dataUsage, dose,protocol,image data

– Increased utilization– Improved dose quality– Enhanced fleet management & standardization– Clinical collaboration

– Optimized energy performance– Increased asset up-time– Maximized process efficiency– Enhanced cyber-security

Teamplay – connect, compare, collaborate Mindsphere – Cloud for Industry


‒ Availability guarantee andshared risk is only possiblewith highly advanced analytics

‒ Trains are fitted with hundredsof sensors to monitor criticalparameters

‒ Siemens Sinalytics providesthe data basis to ensure veryhigh availability and reliability


Siemens Digital Services powered by Sinalytics – Combiningtechnology with domain and context know-how for customer value

Context of data from installed basis

Installedproducts,systems,processesand sensors

Domainknow-how

+Context

know-how

+Analyticsknow-how

− Improved performance

− Energy savings

− Cost reductions

− Risk minimization

− Quality improvement

= Digital Servicespowered by Sinalytics

Customer valueOptions for actionInformationData analysisData


Siemens Digital Services powered by Sinalytics –Example: Predictive maintenance of trains and locomotives

Results

Improved assetavailability

Avoidance ofunnecessarymaintenance

Reduction ofmaintenance costs

Rail Transport– Market drivers– Rail operator challenges– Rail user demands

Trains/Locomotives– Rail vehicle engineering– Mechanical vibrations– Sensor properties– Maintenance operations

Data Science– Pattern identification– Machine learning– Automated alert generation

Domainknow-how

Contextknow-how

Customervalue

Analyticsknow-how

Siemens


Siemens Digital Services powered by Sinalytics –Example: Optimization of gas turbine operations

Results

Reduced NOxEmissions

Extension ofservice intervals

Energy System– Market drivers– Customer needs– Product cycles

Gas Turbines– Mechanical Engineering– Thermodynamics– Combustion chemistry– Sensor properties

Autonomous Learning– Neural Networks– Smart Data Architecture

processes data from 5,000sensors per second

Domainknow-how

Contextknow-how

Customervalue

Analyticsknow-how

Siemens


Sinalytics: Our new platform architecture for data-based services

We build on common technology platforms …+ Latest technology for all Siemens businesses+ Reduction of technical complexity in the company+ Leveraging synergies through scaling+ Faster development

… and use the customer proximity of ouroperating units to develop applications

+ Know-how regarding large installed bases of productsand systems

+ Deep know-how of customer processes and challenges+ Many existing applications that already generate value

for our customers

ProcessIndustries& Drives

DigitalFactory

EnergyManagement

Healthcare

Power and Gas,Power Generation

Services

Wind Power

Mobility

BuildingTechnologies

SinalyticsData analyticsData visualization

Modeling/Analysis

Data management

Data integration

Cloud/ConnectivityCyber Security

Availability Security

Productivity Energy efficiency


…EnergyIPMindsphere

Sinalytics builds on a strong technology stack for connectivity,data analytics supported by state-of-the-art cyber security

Variety of data sources and types~300,000 devices cRSP, ISB ...

BTDF PD PG PS WP EM MO HC

Data analysis

Data integration

Data management

Data presentation

On premise Cloud

Usecase 1

Usecase 2 … … …

Usecase n

Customizable analytics solution packages

Sinalytics

BU specific use case implementations

Common industrial data analytics platform‒ Several off-the-shelf tools are available in each layer‒ Tools are integrated with each other through “glue code”‒ On-premise and cloud deployment possible

Common data analytics set-up‒ Modular analytics solution packages

Connectivity‒ Build on reliable and secure solutions

e.g. common Remote Service Platform

Cyb

erse

curit

yso

lutio

ns

Industry specific Applications/Platforms

Siemens Digital Services


We continue developing data analytics capabilities of Sinalytics:From predictive to prescriptive analytics

Same functional architecture

Predictive analytics for service

On-premiseand in the cloud

“Data and models at rest”

Streaming analytics and

for decision support

On-premise, in the cloudand in the field

“Data and models in motion”

Operationalprescriptive analytics

On-premise, in the cloudand in the field

“Automated data analytics”

Wave 1 Wave 2 Wave 3

distributed analyticsUsing Webof Systemstechnologies


Siemens leverages the Internet of Thingsto the needs of our customers in industry and infrastructure

+ The Web of Systems puts devices, machines andtheir interactions in the center of digitally-networked industries

+ Devices process data locally and make decisions+ Owners decide what happens with their data+ Devices organize themselves and communicate

with each other+ New functionalities can be installed as with apps on

smartphones+ The installed base can be digitalized with the Web

of Systems+ Siemens delivers infrastructure and industry

solutions characterized by:• Reliability• Durability• Data security

ProcessIndustries& Drives

DigitalFactory

EnergyManagement

Healthcare

Power and Gas,Power Generation

Services

Wind Power

Mobility

BuildingTechnologies

Web ofSystems


Web of Systems technologies already work –Example: The Intelligent Secondary Substation in a Smart Grid


Sinalytics brings together the technologies neededin an increasingly digitalized world

Energymanagement

Powergeneration

Energyconsumers

IQ

IQ

IQ

IQIQ IQ

Data analyticsOn-premise, in the cloud andsoon in-the-field leveragingWeb of Systems technologies

Cyber securityProtecting customer data inopen, interconnected industrialIT systems

ConnectivitySecure and proventechnologies connectingalready ~300k devices

Smart networkeddevices & systemsSystem-aware, autonomousand app-enabled to meetindustry and infrastructureneeds

Sinalytics

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