hype or necessity? what motivates industrial...
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voith.com
Hype or necessity?What motivates industrial manufacturers to develop their own IIoT platformsJürgen Käser | 2019-04-03
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Agenda
Hype or necessity? | Jürgen Käser | 2019-04-03 2
1. Company presentation
2. From 3.0 to 4.0 offerings
3. Driving forces
4. Make or buy?
5. Platform as a business model
6. Summary
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Hype or necessity? | Jürgen Käser | 2019-04-03 3
Four Group Divisions A well positioned company
HydroFull-line supplierfor hydro power plant equipment
PaperPartner and pioneer in the paper industry
Digital VenturesSolutions for the internet of things: networking and digitalization
Voith Group
TurboIntelligent drive systems and solutions
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Hype or necessity? | Jürgen Käser | 2019-04-03 4
519 53560Sales
employees
In more than
R&D ratio
countries markets
18675.4 % € 4.2 Billion
Voith in figures
As of: 2017/18
Family-owned since
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Hype or necessity? | Jürgen Käser | 2019-04-03 5
Voith stands for massive products made of steelExample of a papermachine
• Total weight = 100 t
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Hype or necessity? | Jürgen Käser | 2019-04-03 6
Voith stands for massive products made of steelExample of a papermachine
• Free width = 12 m• Total weight = 100 t
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Hype or necessity? | Jürgen Käser | 2019-04-03 7
• Free width = 12 m• Total weight = 100 t
• Diameter = 1.5 m
Voith stands for massive products made of steelExample of a papermachine
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Hype or necessity? | Jürgen Käser | 2019-04-03 8
Voith stands for massive products made of steelExample of a papermachine
• Free width = 12 m• Total weight = 100 t
• Max speed = 2000 m/min• Diameter = 1.5 m
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Hype or necessity? | Jürgen Käser | 2019-04-03 9
Voith stands for massive products made of steelExample of a papermachine
• Free width = 12 m• Total weight = 100 t
• Max speed = 2000 m/min• Max tolerance = 20 µm
• Diameter = 1.5 m
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Hype or necessity? | Jürgen Käser | 2019-04-03 10
Why should we care about bits and bytes?Because data is the world’s most valuable resource
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11
Customer is owner of the
data
Open softwarestandards
Industrial competence>150 years
ROI forcustomers
We are your reliable partner to leverage today’s industrial opportunities for a smarter digital tomorrow.
Vision
Hype or necessity? | Jürgen Käser | 2019-04-03
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Why Industrial Internet of Things (IIoT)?From 3.0 to 4.0 offerings
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End Users
Machines• Intelligence at the edge• Filter data• Perform edge analytics• Data informs and
directs devices
Cloud Management& Data Center
Gateways• Hardware verification• Software verification
Turn data into insight• Process and store data• Perform data analytics• Manage networks
Visualize data, optimize processes & maximize profit• Provide actionable information • Automate operations• Offer services
3.0 offerings• Automation• Machine Level Optimization• Competitiveness and Connectivity• IIoT Supply Chain/ Enterprise
Level Optimization
Domain specific 4.0 offerings• OnCumulus• Deep Domain Expertise and
Commitment• Shared Learnings and Best
Practices
Hype or necessity? | Jürgen Käser | 2019-04-03
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Addressing customer needsBasis for solving pain points
13
Customer Needs
Data reliabilityIncrease the performance of all features (e.g. cost tracking, controls) by verified, reliable data.
Raw materialPredict raw material impact on product quality. Optimize raw material utilization.
Problem solvingIncrease the speed of decision making through experience management and data analytics.
Intelligent alarmingReact on alarms with
defined measures and given priority.
Cost transparencyKnow the cost impact of measures,
ideally in advance.
Safe operationImmediate notification on all
deviations from normal.
Hype or necessity? | Jürgen Käser | 2019-04-03
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Hype or necessity? | Jürgen Käser | 2019-04-03 14
Successful IIoT solutions apply domain knowledge to data gathered from customers, increasing the customers benefit – and enable to get a share of this.
In this business the only way to scalable solutions is standardized domain driven applications addressing customer pain points.
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Driving force – Customer pullCustomers expect answers to “Digitalization”
Hype or necessity? | Jürgen Käser | 2019-04-03 15
Digital Twin
Industry 4.0Process Integration
Machine Learning
Value Chain Integration
Smart MachinesPredictive Maintenance
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Driving force – New revenue streamsBusiness opportunities in the existing eco system
Hype or necessity? | Jürgen Käser | 2019-04-03 16
Continuous revenue out of the sold steel
New business models
Closer customer relation
Performance contracts
Service contracts
Boost spare part sales
Share benefits
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Hype or necessity? | Jürgen Käser | 2019-04-03 17
https://
No data – no Big DataLocal data storage
ERPCRMetc.
Plant Edge Device
API
Scalable domain specific apps
• Machine learning
• Anomaly detection
• ….
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Make or buy?Build own IIoT platform
Hype or necessity? | Jürgen Käser | 2019-04-03 18
Build up in-house knowledge
Reuse “automation edge” and connect to platform
Establish internal processes for software development
Grows with the incoming tasks
Slow implementation
High initial cost
IaaS reduces independence
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Make or buy?Use public IIoT platform
Hype or necessity? | Jürgen Käser | 2019-04-03 19
Fast implementation
IaaS is part of the offering
Managed services speed up platform / app development
Low customer acceptance
IP protection?
Strong binding to one supplier
Not suitable for all industry applications
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The Platform as a business model?There will not be “the” IIoT Platform
Hype or necessity? | Jürgen Käser | 2019-04-03 20
• Customers will not accept proprietary, isolated IIoT solutions of single suppliers
• Data will be interfaced from host to apps if requested by the customer
• Apps will run “somewhere”
• IIoT platforms will be a commodity and not add value to the supplying company
• Still they are the vehicle to get started NOW
Edge
Cloud(s)
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Hype or necessity? | Jürgen Käser | 2019-04-03 21
Over all industries IIoT applications will be a part of most future business models
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Summary
Hype or necessity? | Jürgen Käser | 2019-04-03 22
1. IIoT applications will be an essential part of future business models
2. The value is within the applications – the platform is a commodity
3. Key to be ready is to build up internal processes & knowledge
The questions are not
“Are we building and IIoT platform” or “make or buy”?
The main question is
“Are we fast enough to remain the technology lead in our industry?”
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Hype or necessity? | Jürgen Käser | 2019-04-03 23
Thank you!
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Hype or necessity? | Jürgen Käser | 2019-04-03 24
Contact:Jürgen KäserDirector Process ApplicationsPhone +49 751 83 [email protected]
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