Developing the future.
Enabling Industry 4.0
The future role of IT in the industry
Klaus Hardy Mühleck. Darmstadt, October 9th, 2014
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
2 Developing the future.
Content
Introduction ThyssenKrupp 1
Focus of IT at ThyssenKrupp 2
Outlook: The future role of IT 3
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
3 Developing the future.
Content
Introduction ThyssenKrupp
• Introduction ThyssenKrupp group
• Current challenges in the industry
• Current role of the IT
1
Focus of IT at ThyssenKrupp 2
Outlook: The future role of IT 3
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
4 Developing the future.
Leading Engineering Competence
Leading market
positions
One integrated
company
Active portfolio
management
Benchmark
performance
Profitable
growth
Capital
efficiency
Diversified Industrial Company
ThyssenKrupp – Diversified Industrial Group
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
5 Developing the future.
Climate change
Urbanization
Globalization
Leading
engineering
expertise
in
Material
Mechanical
Plant
More consumer and capital goods
More resource and energy use
More infrastructure and buildings
Reduced CO2 emissions,
renewable energies
Efficient resource and
energy use, alternative energies
Efficient infrastructure
and processes
Demand (“more”)
Drivers
Demography
Finite resources
Political framework
Business opportunities Restrictions Demand (“better”)
Leading engineering expertise supports global sustainable progress
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
6 Developing the future.
Sales (€ mill)
EBIT** (€ mill)
Employees
Sales (€ mill)
EBIT** (€ mill)
Employees
Sales (€ mill)
EBIT** (€ mill)
Employees
Sales (€ mill)
EBIT** (€ mill)
Employees
Sales (€ mill)
EBIT** (€ mill)
Employees
Sales (€ mill)
EBIT** (€ mill)
Employees
*
**
Continuing operations (after reclassification of Steel Americas) before consolidation
Adjusted before consolidation
Components Technology
5,712
244
27,737
Elevator Technology
6,155
675
49,112
Industrial Solutions
5,641
640
18,841
Materials Services
11,700
236
26,978
Steel Europe
9,620
143
26,961
Steel Americas
1,867
(495)
4,112
Diversified industrial group: Our business areas
Key indicators – fiscal 2012/2013*
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
7 Developing the future.
Examples of our capabilities
Material
o Customer-specific material solutions
o Efficient materials manufacturing and processing
o Material services on the basis of powerful IT and logistics systems
Mechanical
o Design and manufacture of components for the automotive, machinery, energy and construction
sectors
o Design, production and servicing of elevators, moving walks and escalators
Plant
o Planning and construction of plants and machinery for the raw material and chemical industries
o Global engineering and service network
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
8 Developing the future.
Content
Focus of IT at ThyssenKrupp
• Current status
• Main chances & challenges
• Business needs driving the change
• Why is transformation necessary?
• How do we manage the transformation?
2
Outlook: The future role of IT 3
Introduction ThyssenKrupp 1
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
9 Developing the future.
ThyssenKrupp – Strategic Way Forward
Strategic Push
White/adjacent spaces
Anorganic growth: Acquisitions
Organic growth: Expand market positions
Strengthen innovation & technology
Balanced portfolio
Significant cash flow
Low net financial debts
Investment grade
Sustainable equity situation
Financial Stability
Company Positioning Diversified industrial company More & Better Sustainability
Active portfolio management
Continuous benchmarking
Profitable growth
Cost control
Capital efficiency
Cash generation
Performance Orientation
Brand ThyssenKrupp
Market intelligence
Sector strategies
Customer relationships
Sales excellence
Customers & Markets
Employee survey
Leadership Competencies
HR Global 2020
Change to perform
Lead to engage
Enable to grow
HR empowerment
People Success
Mission Statement
Governance
Code of conduct
Leadership
ACT: Network organization
Transparency
Compliance
Systems & processes
Change Management
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
10 Developing the future.
Group IT Strategy derived from Company Positioning
Change
Management People Success
Performance
Orientation
Customers &
Markets Financial Stability Strategic Push
Company Positioning Diversified industrial company More & Better Sustainability
Group IT Strategy Digitalization of Business Perform & Continue Improvement
Consolidate IT Infrastructure, Data & Processes
Foster Industry 4.0 ecosystem
Global collaboration &
exchange
Follow Cloud Platform Strategy
Handle large-scale Data & Analytics
Joint IT Service Proposition
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
11 Developing the future.
Transformation and Harmonization of IT Organization
CO ITM
CT ET IS MX SE
Company Standards
BA
Standards
BA
Standards
BA
Standards
BA
Standards
BA
Standards
Global Shared Services IT
External Service Providers
Harmonize
IT on
Business
Area level
Cooperate
with
outsourcing
partners
Centralize
steering of
the
organization
Cooperate
across
Business
Areas
Harmonize
infrastructure
services across
Business Areas
P
L
A
N
B
U
I
L
D
R
U
N
….
….
Regions
….
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
12 Developing the future.
Transformation: ThyssenKrupp IT Management Matrix and Governance
Global Shared Services IT
IT Components Technology
IT Elevator
Technology
IT Industrial Solutions
IT Steel
Europe
IT Material Services
IT Regionen
Programs/ Templates/ AMC
IT Sourcing Decisions
IT Planning & Controlling
IT Strategy & Architecture
Change Requests/ AMS
CO/ITM
Governance
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
13 Developing the future.
Business needs driving the Change
Run IT
Transform
Innovate
• Classic industry vs. digital business (e.g. Cooperation 4.0, Cloud Computing)
• IT as a product or within a product
• Cross-linking the Corporate Functions with IT solutions
• Process, added value • Methods of IT design
• Integrated network • Data center • Mobile communication • Desktop, Printers
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
14 Developing the future.
Example “Infrastructure Consolidation”
Public Cloud Services
Carrier AM
Carrier
EMEA
Carrier
APAC
Private Cloud Service
Public Cloud Service
GDC APAC GDC AM
GDC EMEA Secure
Zones
IAM & IAG
Global Help Desk
Global Operation Center
Group Company
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
15 Developing the future.
ThyssenKrupp SAP Landscape
TO BE AS IS
SAP + Non-SAP
Data and
Process
Harmonization
Transparency
Reduction of
Complexity and Costs
Operating Control Best-in-Class Processes
Corporate
SAP HANA
CT MX ET IS SE
Business Area templates
Core template + library
> 200 ERP systems 20+ ERP systems
CT
ET
IS
MX
CO
SE
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
16 Developing the future.
Content
Outlook: The future role of IT
• How does the new IT look like
• Chances to be taken: examples for enabling the business
• Outlook to innovative IT: technology enabling industry
3
Introduction ThyssenKrupp 1
Focus of IT at ThyssenKrupp 2
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
17 Developing the future.
Group IT Strategy derived from Company Positioning
Change
Management People Success
Performance
Orientation
Customers &
Markets Financial Stability Strategic Push
Company Positioning Diversified industrial company More & Better Sustainability
Group IT Strategy Digitalization of Business Perform & Continue Improvement
Consolidate IT Infrastructure, Data & Processes
Foster Industry 4.0 ecosystem
Global collaboration &
exchange
Follow Cloud Platform Strategy
Handle large-scale Data & Analytics
Joint IT Service Proposition
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
18 Developing the future.
Technology Push
Gain competitive advantage by exploiting new technologies
Technology Push
Mobile Computing
Hybrid IT & Cloud
Computing
Big Data & Analytics
Social Media
Internet of Things
Internal IT as Service Broker
Hybrid IT Scenarios
Cloud Integration becoming
standard in many companies
Demand for new skills
Real-time analytics
Data as new economic resource Collaboration Web 2.0
Digital Natives
New Communication mechanisms
IT Security
Machine to Machine
communications
Industry 4.0
Bring Your Own Device
Global seamless access
Cloud-Client Architecture
Mobile Devices only as gateway Raising amount of mobile devices
(Tablets, Phones, …)
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
19 Developing the future.
Group IT Strategy derived from Business Objectives Gaining competitive advantage by innovating new technologies
Hybrid IT and Cloud Computing
Change Management
Transparency & Compliance
People Success IT skill profile management
Performance Orientation
IT Efficiency
Customers & Markets
Clear Customer-orientation
Financial Stability IT Agility
Strategic Push Technology Innovation
Internal IT as service broker
Big Data & Analytics
Internet of Things
Mobile Computing
Data as economic resource
New business models
Global seamless access
Consolidate IT Infrastructure, Data & Processes
Foster Industry 4.0 ecosystem
Facilitate global collaboration & exchange
Follow Cloud Platform Strategy
Handle large-scale Data & Analytics
Group IT Strategy Business Objectives Technology Push
Joint IT Service Proposition
Social Media New collaboration
mechanisms
Strategic Directions Top IT Trends Group-wide Business Objectives
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
20 Developing the future.
• Development
• Production
• Logistics
• Service
Cooperation 4.0 defines the interaction between business and IT
Collaboration
Platforms
IT Process Optimization
IT Service Mgmt.
Standards
• Industrial plants
• Lifts
• Conveyor systems
• …
Product Portfolio Value Chain
Horizontal cooperation across
value-added networks
Vertical cooperation by
engineering across the entire
value chain
Cooperation 4.0 is characterized by increased cooperation and a high degree of standardization
Cloud-enabled Business Processes
Semantic Security
Augmented Reality
Social IT
Digitalization of the Business
Context-based Services
3D Printing
Seamless Collaboration
Big Data
Cooperation 4.0
Corporate IT
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
21 Developing the future.
Example Steel Europe: Inter-site production at BA SE calls for autarkic
production network segments to avoid production losses
Business requirements to be met by IT:
Complex network of processing units
• Support of continuous production and discrete
production processes, integrating them in business
control systems
• Uninterruptible supply of the delimited production
stages specific and highly available IT services
• Improvement of planning and control processes and
systems in order to improve adherence to delivery
dates
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
22 Developing the future.
Example Steel Europe: Planning process must also take into account broad
product portfolio and complex plant structures
ThyssenKrupp Steel Europe
Duisburg, Meeting30.07.2010
3
Beeckerwerth
Bruckhausen
Duisburg Süd, HKM Eichen, Finnentrop
Strangguss
Warmband
Adjustage, Nacharbeit
sonstige Dimensionierung
Kaltband (inkl. Kombi)
Glühen
Feuerbeschichtung
EBA, BBA
Dortmund
Nachwalzen
Bochum
Komplexes Unternehmensumfeld
Werksübergreifender Materialfluß
Network
Orders
Portfolio
Techn.
require-
ments
▪ Complex network consisting of 13 structurally different sites
▪ high logistic effort of on average ~ 3 site changes per order
▪ > 300,000 customer order items per year involving an order volume of ~ 12 million tons
▪ High flexibility conc. order modifications at short notice by customer
▪ Requirement of short delivery times
▪ Dynamic allocation of material to customer orders (subsequent reallocation of material)
▪ Fluctuating backlogs of orders
▪ Broad product portfolio including ~ 28,000 articles of~ 950 steel grades
▪ Almost exclusively customer-specific production ab initio and of products with by-product/by-program requirements
▪ Complex system of rules comprising ~ 15,000-20,000 rules for determining the technical production parameters for an
order (up to 2,800/order)
▪ Many technical restrictions have a non-deterministic impact on the sequencing at the units
▪ Finalization problems in continuous casting
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
23 Developing the future.
Development of Corporate IT 4.0
IT Basics
Guidance
End-2-End
„Integrators“
Grown IT Working Model Cooperative IT Working Model to support
Cooperation 4.0
IT Control/ Governance
IT Services/ Execution
Plan
Build
Run
IT Architecture Innovation Management
Commodity Infrastructure
Cloud Platform
Templates Patterns Networking Application
Services
Communities … …
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
24 Developing the future.
Innovative IT: Technology enabling Industry 4.0
It's very hard for me to get a new car.
It's really hard for me to get a new house.
It's really hard for me to move on from
the things that give me stability. Jodie Foster
Stability and flexibility in IT seem to be contradictory at first, but for an innovative, business enabling IT - you need the best of both worlds working together.
ThyssenKrupp is innovating with SAP in many areas including Cloud, Big Data and Analytics in order to gain a competitive advantage.
A vital IT is key for Industry 4.0, Cooperation 4.0 and Digital Business.
Enabling Industry 4.0. The future role of IT in the industry
October 9th, 2014
Klaus Hardy Mühleck, CIO ThyssenKrupp AG
25 Developing the future.
Any questions?