digital manufacturing it's all about flexibility, adoption...

Digital Manufacturing – it's all about flexibility, adoption of edge intelligence with AI & economics

Matthias Roese, Chief Technologist, Global Manufacturing, Automotive & IoT, Hewlett Packard Enterprise

Data can transform businessesUnlocked through AI and advanced analytics

Planned AI investments next 12 mths

0.48% of revenue

For comparison – average IT spending in the manufacturing industry:

1.95% of revenue

63% say AI will not be a Job KillerNew jobs created by AI will balance or outweigh jobs

made redundant by AI

n= 858

Application areas and goals of AI in the industrial sector

8

12

17

19

20

21

24

24

29

32

34

38

Procurement

Marketing

Supply chain…

Production planning

Sales

Demand forecasting

Quality assurance

Product design and…

Services

Operations

Maintenance

Research & development

31

32

34

37

40

41

45

57

Create new product categories or…

Improve forecasting and planning

Create new business models

Quickly adapt to changing…

Increase employee productivity

Enhance products and services

Improve customer experience

Increase efficiency of operations

Functions/activities where AI has been/will be implemented% of respondents

Goals of AI% of respondents

– % of respondents

6

12

12

13

15

16

19

34

42

47

Don't see the benefits

AI technology is too immature

Lack of industry-specific AI solutions

Lack of C-level support

Lack of budget

Lack of trust in AI making accurate decisions

Hard to identify viable use cases

Lack of data governance and architecture

Lack of AI expertise

Lack of data quality or quantity

Obstacles for AI adoption

The Enterprise of the Future

Edge-Centric Cloud-EnabledData-Driven

2

1960-1970MainframeCentral

1980-2000Client-ServerDecentral

2005+Cloud/Mobile Central

2006

DATA

2008 2010 2012 2014 2016 2018 2020

0.3ZB

0.8ZB

1.2ZB

1.8ZB

4.4ZB

7.9ZB

15.8ZB

31.6ZB

44ZB

Data volume

From “Systems of Record” to “Systems of Action”

Structured Data

40 Petabytes

Walmart’s database

Human Data

4 Petabytes/day

Daily uploads of content to

Facebook

Digitization of the physical world

40,000 Petabytes/day

10 Mio. partly autonomous cars in 2020

Frontcamera

20MB/Sec.

Front-Ultrasound-Sensor

10kB/Sec.

Infraredcamera

20MB/Sec.

Side-Ultrasound-

Sensor

100kB/Sec.

Front-, Rear- und

Topcameras

40MB/Sec.

Rear-

Ultrasound-

Sensor

100kB/Sec.

Rear-Radarsensor

100kB/Sec.

Crash-Sensor

100kB/Sec.

Front-Radar-

Sensor

100kB/Sec.

of all enterprise data is generated and

processed outside the data center

10%

2018

of all enterprise data is generated and

processed outside the data center

10%

2018

of all enterprise data is generated and

processed outside the data center

75%2025

1960-1970MainframeCentral

1980-2000Client-ServerDecentral

2005+Cloud/Mobile Central

2020+Edge IntelligenceDecentral

2006

DATA

2008 2010 2012 2014 2016 2018 2020

0.3ZB

0.8ZB

1.2ZB

1.8ZB

4.4ZB

7.9ZB

15.8ZB

31.6ZB

44ZB

Data volume

2006

Processing power

DATA

2008 2010 2012 2014 2016 2018 2020

0.3ZB

0.8ZB

1.2ZB

1.8ZB

4.4ZB

7.9ZB

15.8ZB

31.6ZB

44ZB

Data volume

94%of generated data is not used

Customer Examples

50% reduction in planned

maintenance costs

Increased data

processing speed of its

smart meters by 800%

100% time reduction

to manually inspect

production systems

19B projected reduction

in operational and capital

costs by 2020

Edge-to-Cloud

Intelligence will be

embedded everywhere

Everyone and everything connected and secure

Everything will

be understood

But…

Thank you