digital transformation & industry 4.0: key trends to …...2018/04/19 · • increased output •...

© Copyright 2019 OSIsoft, LLC© Copyright 2019 OSIsoft, LLC

Digital Transformation & Industry 4.0: Key Trends to Look for in 2019

Neil Strother and Michael Kanellos

April 18, 2019

© Copyright 2019 OSIsoft, LLC 5Contact info: Neil Strother – Principal Research Analyst – [email protected]

mailto:[email protected]

© Copyright 2019 OSIsoft, LLC 6

IIoT: A $144.6 Billion Opportunity


So How Come Some Succeed While Others Stall?


We Decided to Find Out


But Then We Kept Getting the Same Question?


How Do I Get the Green Light?

© Copyright 2019 OSIsoft, LLC

The Seven Steps to IIoT Proposal Success

11


Step One: Develop a Plan that Reminds Everyone That Software Costs Less than Capital


• $20-$25 Million Invested• Integrated Collaboration

Center• Digitizes assets across a

continental network– 61 Gas plats– 57,000 miles of pipelines– 1400+ compressors

13

DCP Midstream Maps Out a Comprehensive Transformation


• Goal: ROI in 1 Year • Results: – $20-$25 Million in First

Year from increased production, lower repairs

– $20M Returned Yr. 2

• The Same Results With Capital? $350 Million

14

The Results


Step Two: The Technology Is Here


A Plethora of IIoT Vendors

16

Source: Navigant Research


Step Three: A Single Platform Can Deliver Multiple Applications


AGL Started with Visibility and Daily Optimization


Predictive Maintenance Followed


Next up: Optimizing Wind and Thermal Plants


Step Four: You Can Achieve Quick Wins and Long Term Success At the Same Time


Calculating ROI: The Easy Part

Outcomes

Investments


The Hard Part: Tabulating Long, Short Term Outcomes

Revenue Reduced Apex/Capex Added Benefits• Increased Output

• More product, same footprint

• Less downtime• New Products &

Services• Faster Time to

Market/Value

• Energy• Maintenance• Avoided Capital

Expenditures• Avoided Upgrades

• Safety• Quality/Brand• Reduced Risk• Avoided

Recalls/Fines• Customer Loyalty• Streamlined

Supply Chains


And Long, Short-Term Investments

Up Front Over Time• Hardware• Software• Implementation • Strategy

• Bandwidth• Cloud Services• Training• Employee Time• Coding and Developer Time• Support & Servicing


Bondtech: ROI at the Airport

Made in Kentucky, Found Anywhere

Repair calls took three days

Remote diagnostics cut travel by 50%

ROI in three months

$250K+ saved in first year

Better yet: improved customer, employee satisfaction

25


Step Five: You Don’t Need An Armada of Consultants


A Small Utility with a Major Problem

100,000 customers

600 square miles of service territory

Losing approx. 32% of water through leaks

Old technology (acoustic sensors) not easily scalable

Facing major plant upgrade


The Plan: Work While The District Sleeps

• Meters subdivide district into 33 DMAs

• Water use monitored from 1 a.m. to 4 a.m.

• Usage plotted on map

28


Reduced Leakage: $1.6 million a year • $400K in yr 1• $900,000 in yr two• $350,000 in yr three

Reduced Data Prep• 6 hours data prep reduced to 10 mins• $30,000 est. savings

Avoided SCADA Upgrade • $200,000 avoided costs

A Boost to the Public Profile• Flat Rock Springs is not a streamAnd...

29

$1.3 Million Invested. The Outcomes:


A $15-$20 Million Facility Delayed for 11 Years


Step Six: Your Employees Will Embrace It (Seriously)


A Nasty Buttery Smell• Solved with a sensor and

Monitoring• Payback in 3 months• $450,000 increase in output

Next• Let’s remove a cooler• And reduce manual checks• A data driven culture

32

The Earn While You Learn School of Engineering


Industrial Attention Deficit Disorder

Before• Fixed metals recovery goals• Employees ability to act constrained

After• Simulator enables employees to

change processes with ore grades• 4.5 more “days” per month• A data-driven culture

34


Step Seven: You Can Move Ahead of the Competition


It Starts As A Tale of Woe

Hera Processing Plant


• Gold Recovery Low (74.6%)

• Debt High (A$125 million)• 700 Jobs on the Line• Two Vendors Flopped• So They Turned to This Guy

37

Six Months to Live


• Crushing to Grinding to Flotation

• Recovery Climbs to 88.6%• PI System Return in 12

Days• Facility Above Nameplate • Vendor Hugs Integrator

38

A Step-by-Step Transformation


Summary/Conclusion?

Step 1: Develop a Plan that Reminds Everyone That Software Costs Less than Capital

Step 2: The Technology Is Here

Step 3: A Single Platform Can Deliver Multiple Applications

Step 4: You Can Achieve Quick Wins and Long Term Success At the Same Time

Step 5: You Don’t Need An Armada of Consultants

Step 6: Your Employees Will Embrace It (Seriously)

Step 7: You Can Move Ahead of the Competition


Questionsand

Answers

30


Slide Number 1Digital Transformation & Industry 4.0: Key Trends to Look for in 2019�Slide Number 3Slide Number 4Slide Number 5IIoT: A $144.6 Billion OpportunitySo How Come Some Succeed While Others Stall?We Decided to Find OutBut Then We Kept Getting �the Same Question?How Do I Get the Green Light?The Seven Steps �to IIoT Proposal SuccessStep One: Develop a Plan that Reminds Everyone That Software Costs Less than CapitalDCP Midstream Maps Out a Comprehensive TransformationThe ResultsStep Two: The Technology Is HereA Plethora of IIoT Vendors Step Three: A Single Platform Can Deliver �Multiple ApplicationsAGL Started with Visibility and Daily OptimizationPredictive Maintenance Followed Next up: Optimizing Wind and Thermal PlantsStep Four: You Can Achieve Quick Wins and Long Term Success At the Same TimeCalculating ROI: The Easy PartSlide Number 23Slide Number 24Bondtech: ROI at the AirportStep Five: You Don’t Need An Armada of ConsultantsA Small Utility with a Major ProblemThe Plan: Work While The District Sleeps$1.3 Million Invested. The Outcomes:A $15-$20 Million Facility Delayed for 11 YearsStep Six: Your Employees Will Embrace It (Seriously)The Earn While You Learn School of EngineeringSlide Number 33Industrial Attention Deficit DisorderStep Seven: You Can Move Ahead of the CompetitionIt Starts As A Tale of WoeSix Months to LiveA Step-by-Step Transformation Summary/Conclusion?Slide Number 40Slide Number 41

digital transformation & industry 4.0: key trends to …...2018/04/19 · • increased output •...

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