mike holtkamp digitalization account executive siemens · 2018-11-01 · in areas such as data...
TRANSCRIPT
Breakfast Keynote
Mike HoltkampDigitalization Account Executive
Siemens
Industry 4.0Leading the Next Industrial
Revolution
© Siemens AG 2017
April 2017Page 6 siemens.com
© Siemens AG 2017
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The Founders of Sears
• Richard Sears
• Alvah Roebuck
• Born 12/3/1863 and 1/4/1864
• Founded Sears & Roebuck 1886
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Innovation Transforming Commerce in the U.S.
Time was right for mail order merchandise:
Homestead Act of 1862: westward expansion followed growth of
railroads
Postal system permitted the classification of mail order publications
as “aids in the dissemination of knowledge” entitling the catalogue to
a postal rate of 1 cent per pound
Rural Free Delivery in 1896 made distribution economical
Rapid pace of innovations:
Advertised “lowest prices, best values”
Added Spring and Fall editions and color sections
Offered cloth bound books as a cheap alternative to hardbound
Continual expansion to wide variety of goods
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The Old Chicago Main Post Office
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The end of an era . . .
The last Sears Catalogue was released in 1993
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J.P. Jorgenson
• Born Jan 12, 1964 in Albuquerque, NM
• Graduated Phi Beta Kappa from Princeton
Cadabra / Cadaver
Makeitso.com
AARD.com
Awake.com
Browse.com
Bookmall.com
Relentless.com
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Wall Street Journal
Thursday Aug 25, 2017
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The Old Chicago Main Post Office
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Chicago Bids on New Amazon Headquarters
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From Yellow Pages … From taxi …
From record store …
New business models in the internet age
are disrupting complete markets
… to ride sharing… to marketplace
… to e-book … to streaming
From bookstore …
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Digital Enterprise Account Executive
35 years in Power, Automation & Digitalization (Westinghouse, Siemens)
BSME (WVU), MA Bus. (SUNY), Add’l Training Smart Mfg. (MIT)
Work with small to large manufacturers & customers of all types
Mike Holtkamp
SIEMENS
377,000 employees, ~$100B in annual revenues,
Founded in 1847, business in 200 countries globally
$26M+ spent per day in R&D
$10B+ in last 10 years in acquisitions for Industry 4.0
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Achieving Digitalization / Business Transformation
“To survive disruption and thrive in the
digital era, incumbents need to become
digital enterprises, rethinking every
element of their business.”
Source: 2016 World Economic Forum
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- Pierre Nanterme
CEO Accenture
“Digital is the main reason just over half
of the companies on the Fortune 500
have disappeared since the year 2000.”
The Innovator’s Dilemma - Christensen
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Disrupt or Be Disrupted!
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Understanding Industry 4.0
What Does It Mean?
The term was introduced by the German government and Siemens at Hannover Messe in 2011.
“Industry 4.0 is a name for the current trend of automation & data exchange in manufacturing. It includes
cyber-physical systems, the Internet of things, cloud computing and cognitive computing.”
INFORMATION TECH
OPERATION TECH
Convergence Physical World Digital World
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The First Industrial Revolution
1800
First Industrial
Revolution
Use of mechanical
production with
the help of water
& steam power.
First mechanical
loom, 1784
1900
Second Industrial
Revolution
Introduction of
division of labor &
mass production using
electrical energy.
Assembly line
slaughterhouses, 1870
2000
Third Industrial
Revolution
Use of control systems
and IT begin to automate
the factory floor.
Siemens launches
the SIMATIC name
1958, first PLC 1969.
Fourth Industrial
Revolution
Introduction of cyber
physical twins, 3D
printing, cloud computing.
© Siemens AG 2017
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The Second Industrial Revolution
1800
First Industrial
Revolution
Use of mechanical
production with
the help of water
& steam power.
First mechanical
loom, 1784
1900
Second Industrial
Revolution
Introduction of
division of labor &
mass production using
electrical energy.
Assembly line
slaughterhouses, 1870
2000
Third Industrial
Revolution
Use of control systems
and IT begin to automate
the factory floor.
Siemens launches
the SIMATIC name
1958, first PLC 1969.
Fourth Industrial
Revolution
Introduction of cyber
physical twins, 3D
printing, cloud computing.
© Siemens AG 2017
April 2017Page 23 siemens.com
The Third Industrial Revolution
1800
First Industrial
Revolution
Use of mechanical
production with
the help of water
& steam power.
First mechanical
loom, 1784
1900
Second Industrial
Revolution
Introduction of
division of labor &
mass production using
electrical energy.
Assembly line
slaughterhouses, 1870
2000
Third Industrial
Revolution
Use of control systems
and IT begin to automate
the factory floor.
Siemens launches the
SIMATIC name 1958,
first PLC 1969.
Fourth Industrial
Revolution
Introduction of cyber
physical twins, 3D
printing, cloud computing.
© Siemens AG 2017
April 2017Page 24 siemens.com
The Fourth Industrial Revolution – Industry 4.0
1800
First Industrial
Revolution
Use of mechanical
production with
the help of water
& steam power.
First mechanical
loom, 1784
1900
Second Industrial
Revolution
Introduction of
division of labor &
mass production using
electrical energy.
Assembly line
slaughterhouses, 1870
2000
Third Industrial
Revolution
Use of control systems
and IT begin to automate
the factory floor.
Siemens launches
the SIMATIC name
1958, first PLC 1969.
Fourth Industrial
Revolution
Introduction of cyber
physical twins, 3D
printing, cloud computing.
© Siemens AG 2017
April 2017Page 25 siemens.com
Understanding Industry 4.0
What Are the Drivers?
• Companies are using more complex, worldwide supply chains and data networks in their operations.
• Physical connectivity is being replaced with digital links — many of which are stored in the cloud.
• Greater international collaboration is possible. Using cloud-based software, any staff member in any
geographical location can contribute to a design.
• Cheap data storage and transfer will increase the decentralization and flexibility for businesses.
1990
800 times as much data
for less than 2 tenths of
one percent of the price!
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Understanding Industry 4.0
What Are the Impacts?
• Companies must now compete on a global scale; cannot rely on their physical location to win business.
• Companies must focus on meeting ever-changing consumer demands requiring flexible manufacturing
and production flexible.
• Industry 4.0 requires changing the workforce and increasing the ease of access to services.
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Our customers have essential requirements –
throughout the manufacturing industry
Security
Speed Flexibility Quality Efficiency
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Demographic change
Urbanization
Climate change
Nationalization
Five Megatrends shaping our world
Digital transformation
Trend to bring
investment back
Growing and aging
population
Cities as main driver
of GDP growth
Global warming and
weather extremes
Contribution to global GDP growth,
2007-20253, in %
World population1, in bn Annual mean temperature
variations 1950-20142 (in °C)
Connected devices5, in bn
-0.3
0
0.3
1950 1970 1990 2010
0.3
-0.3
Other cities
and rural areas38%
Cities >10mn
5mn – 10mn
2mn – 5mn
150k – 2mn
50
23
9
2012 20202016
Exponential
growth of
connected
devices ...
… and
digital data6
2.8 ZB40.0
ZBZB = Zettabytes = 109 Terabytes
9.00
0.161.92 0.83
6.10
0.12
2015
1.25 -0.010.00 1.36
2050
Developing
countries
Industrial
countries15-65
65+
0-14
20152009 20132011
-19%
+14%
Imports vs. GDP4)
FDIs total5)
1) UN World Population Prospects (2012) | 2) Met Office Hadley Centre observations (2014) | 3) McKinsey Global Institute Cityscope (2011) | 4) UNCTAD: Import Flow merchandise: Total trade and share / GDP
| 5) 2008-2014: UN Conference on Trade and Development: FDI inward flow ; 2015: UNCTAD Global Investment Trends Monitor No.22
| 6) Cisco: The Internet of Everything (2013) | 7) IDC: The Digital Universe (2012)
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Understanding the Needs of Modern Manufacturing
What Do The Customers Say
“We are aggressively reducing costs and reallocating capital to the
products and markets with the highest potential for growth and
returns. As we improve the efficiency and focus of our business for
today, we also are accelerating our efforts to be a leader in the smart
vehicles and mobility services of tomorrow.”
“We took steps to strengthen our capabilities
in areas such as data analytics, avionics, actuation
and additive manufacturing—high-value work that
benefits from our internal expertise and global scale.”
Competition is intensifying and consumers’ expectations are shifting.
Likewise, digital disruption is reshaping how consumers connect and
communicate, buy products, and engage with companies. We are
anticipating these changes and responding to them with a healthy sense
of urgency, setting an agile course for the future.
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Understanding the Needs of Modern Manufacturing
Terms You Will Hear
Lean Manufacturing
AGV
IIoT
MES
AM
Predictive Analytics
Virtualization
Real Time Capability
Big Data
“If all you have is a hammer, everything looks like a nail."
Abraham Maslow
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Digitalizationchanges
everything
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Change is Inevitable, Success is Not
Digital Darwinism is a significant threat
“More than 50% of companies that attempt
to move to a digital model will fail.”
Source: John Chambers, McKinsey & Company Report
March 2016
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Why will these Companies Fail?
• Digital is not central to their corporate strategy
• They perceive digital only as a tool for incremental efficiency gains
• Companies invest in the latest point solutions or siloed digital technologies
and fail to work horizontally (“localized optimization”)
• They do not drive the necessary cultural changes for success
ServicesProduction
execution
Production
engineering
Production
planning
Product
design
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Technological forces transforming industry
Changing the way
products are realized
Advanced
robotics
Additive
manufacturing
Intelligent
automation
Changing the way
products come to life
System of
systems
Intelligent
models
Generative
design
Changing the way
products evolve
Knowledge
automation
Big data
analytics
Cloud
ecosystems
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Manufacturers must embrace the technologies
and transform their business into a digital enterprise …
Advanced
robotics
Additive
manufacturing
Intelligent
automation
Systems of
systems
Intelligent
models
Generative
design
Knowledge
automation
Big data
analytics
Cloud
ecosystems
Ideation UtilizationRealization
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Digital Twin
Digital Twin of
the product
Digital Twin of
the production
Digital Twin of
the performance
Digital Twin of
the product
Digital Twin of
the production
Digital Twin of
the performance
feed back insights to continuously optimize product and production
MindSphere
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Digital Twin
Digital Twin of
the product
Digital Twin of
the production
Digital Twin of
the performance
MindSphere
One integrated data model
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We embrace digitalization in our own operations
1 per second 99.9985%
A growing portfolio of
1300 products
We produce more than 1
million products per month –
one per second.
digitally designed for
60,000 different
customers.
Quality level of
or 10.5 defects per
million.
Speed Flexibility Quality
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30% shorter
development time
More than 70,000combinations
available
3 times more
cars produced
With Siemens’ integrated technologies, Maserati reduced
development time while increasing production output
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MachineSense
Power Analyzer Component Analyzer
Vacuum Pump Analyzer
Power Analyzer measures
and tracks: Avg. 3-phase voltage
Avg. 3-phase current
Power factor
Active “working” power
Power waveforms
Cumulative active energy
Ground faults
Power quality harmonic distortion
for current & voltage
All values needed for energy
optimization
Reports phase imbalance
Machine on-time
Measures and predicts: Filter condition
Vacuum analytics
Oil condition
Bearing condition
Pump Health
Measures and predicts: Filter condition
Vacuum analytics
Oil condition
Bearing condition
Pump Health
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Air Curtain App
Control of air curtains from a smartphone.
• Allows users to:
Program their Berner Air Curtain
Change settings
Monitor usage
.
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Digitalization Can Introduce Uncertainty
How will digitalization
impact my business?
Will new digital players go after
my core business?How can I create
business value from digital
technologies?
Do I have the right
business
partner to guide
and support my
decisions?
How do I develop the
new skills needed
to lead the digital
transformation?
How can I create
new Business
Models from
digitalization?
CUSTOMER SUPPLIER
Where is my roadmap to lead my
product development?
How can I align my
business for things
like successful
co-creation?
How can I move
from a product
based model
to a value
based
model?
How can I create thrive in
Industry 4.0?
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How Can Industry 4.0 Help Me?
Some things we know…
• New business models can create new revenue streams
• Digitalization addresses many challenges of today
(…and the ones you haven't thought of yet…)
• Elevates you among suppliers
• Industry 4.0 is not going away
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Industry 4.0
Next Steps - General
• Keep an open mind
• Talk to others
• Accept that it is a journey
• Embrace the Culture of Change
• “Evolution not Revolution”
• Understand the “Road Map”
“The journey of a thousand miles begins with but a single step.”
Lao Tzu“We’re lost… but we’re making good time”
Thank you.
siemens.com© Siemens AG 2017
Closing Remarks
Mike HoltkampDigitalization Account Executive
Siemens
Industry 4.0Leading the Next Industrial
Revolution
© Siemens AG 2017
April 2017Page 260 siemens.com
Digitalizationchanges
everything
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Industry 4.0
Next Steps - Specific
• Identify current system capabilities & gaps
• Make sure you fully understand and can document the current
business processes
• Leverage proven critical analysis methodologies to conduct
workshops and perform benchmarking
• Develop a full digital architecture and desired data flow
• Define future investments based upon the road map
• Prioritize investment
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Now is the time to realize the
Digital Enterpriseand your opportunity to lead the next
Industrial Revolution
Thank you.
siemens.com© Siemens AG 2017
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