digital business transformationsoiconsortium.eu/wp-content/uploads/2017/05/cisco_soi.pdf · aglaia...

Aglaia Kong CTO/VP, IoT Vertical Solutions April, 2016

Digital Business Transformation Why IOT is changing everything?

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Digitization Trends Across Major Industries

ENABLE NEW BUSINESS MODELS

Create recurring revenue models with increased customer intimacy

TRANSFORM BUSINESS PROCESSES

Higher productivity by predictive maintenance and better asset utilization

Smart Manufacturing Grid Modernization Shopper Insights

IoT Enabling Transformation

Smart Cities Connected Transit Smart Space

Where is the value

Connect the Unconnected

50Billion Smart Connected Devices by 2020

Hyper-connectivity, IT and OT convergence

Interoperability across silo’ed systems required to capture 40% of IOT value

<1% of data currently used, more can be used for optimization and prediction

Over 60% of the IOT value will be generated in Enterprise deployments

Source - McKinsey: The Internet of Things: Mapping The Value Beyond The Hype

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Digitization through IoT is Transforming Businesses

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UPS My Choice Delivery Control

Personalized Service

Workforce Efficiency WIP Inventory &

Part Tracking

Starbucks Apps Order Ahead Skip the Line

Connected Cars New Experiences &

Business Models

Industrial Manufacturing Improve productivity & quality of operations

New Customer Experiences

Operations Automation

Recurring Monetization

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Changing Trends Are Driving Changing Priorities

How can I better

manage my global supply chain?

How can I reduce

downtime?

I need to improve

product quality

How do I improve

workforce productivity?

How can innovation

drive profits?

I need to achieve

real-time visibility

How can I introduce

new products faster?

Think Bigger

of factories are highly automated, but

not digitized

$6.9 Trillion value at stake

Machine Builders

CPG/Food & Bev

Automotive

Pharma & Biotech

Semiconductor

Other $1.9T

$1.8T $1.2T

$759B

$690B

$621B

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A New Industrial Revolution Digitizing Manufacturing to Capture the Value of the Internet of Everything

18th Century Steam

20th Century Mass Production

70’s Robots

Today Digitization

Technology Progress

Smart Devices

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The Value of Real-time Visibility

CELL 1

CELL 2

CELL 3

Siloed

Delayed

Low Visibility

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The Value of Real-time Visibility

CELL 1

CELL 2

CELL 3

Synchronized

Instant

Detailed

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75 hrs per month

lost revenue per year $1B

$20K per minute

The Cost of Downtime

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Next step: Augmented Reality

Shall I call the robot OEM?

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Targets of “Industrie 4.0”

Work Life Balance

Sustainability / maintain limited resource

Mitigate Demographic Change / Life Learning Journey

Development •  Concept •  Construction

Production •  Planning •  Process

Usage •  Service •  Life Cycle Mgmt.

Sales •  Marketing •  Communication

Cyber-Physical Systems (CPS)

Flexible Assembly Lines / Faster Product Life Cycles

Solution based on Industry Standards

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IT/OT Protocol Convergence

Security Built In (Cyber/Physical)

Consumption Ready (API/SDK)

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