adient’s digital roadmap - ward's auto · exponential = 10x faster, better and cheaper. ......
TRANSCRIPT
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Adient’s Digital RoadmapRandy Urban, VP Digital Office Improving the experience of a world in motion
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Introduction
˃ 29 years of experience
˃ 20+ years in automotive
˃ IT, Finance, Supply Chain, Procurement, Manufacturing
˃ Leading Adient’s Digital Office
˃ Digital Innovation: "We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10. Don't let yourself be lulled into inaction." — Bill Gates
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Adient today
FY2017~$16.2BConsolidated revenue
~$8.7BUnconsolidated seating revenue
~$8.6BUnconsolidated interiors revenue
Revenue by geography*
Europe /Africa
China
Americas
26%
6%37%
31%
Asia /Pacific
NYSE: ADNT
Adient is the largest global automotive seating supplier, supporting all major automakers in the differentiation of their vehicles through superior quality, technology and performance#1
We supply oneout of every three automotive seats
worldwide
Global market share*
Adient
Other
Lear
Faurecia
33%
ToyotaBoshokuMagna
*Adient share includes non-consolidated revenue (market share based on FY2016). Revenue by geography based on FY2017 (consolidated and non-consolidated). Source: IHS Automotive and management estimates.
25M+seat systems
per year
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Products
> Complete Seat systems capabilities including complex logistics and supply chain management, Just-In-Time in sequence delivery, quality, craftsmanship and change management> ~100 Assembly plants> ~130 Manufacturing plants
> What’s causing us to think about our digital strategy?
ADIENT
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Revenue by Geography
˃ Our two largest markets have active digital initiatives
˃ Germany “Industry 4.0”
˃ China “Manufactured in China 2025” 26%
6%
37%
31%
Americas Europe / Africa
Asia / PacificChina
The industry is shiftingTrends & key questions 2020 and beyond
Traditional manufacturers ... Industry trends
> Autonomous driving > Electrification> Internet of things> Connectivity> Urbanization> Alternative propulsion> Slim & lightweight> Smart materials> Individualization> New shapes> Safety> Shared ownership
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Sample of traditional OEMs and the new players who could accelerate industry trends.
Examples
... and the new players
ADIENT
Adient Investor Day – Product / Technology / Innovation 8
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The progression of digital disruption
> Moore’s law is the foundation. Computational power drive advancement in other areas.
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What happens when things go “Exponential”?
> This is how you get Ubered!
Exponential = 10x faster, better and cheaper
What Megatrends and Technologies will emerge and go “Exponential”?
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6 D’s of Digital Distribution
˃ The roadmap to advance technologies impacting your business˃ Follow the exponential curve˃ AI is moving into the disruption phase
Adient / Presentation Title / Date11
DigitalizationOnce represented in 1’s and 0’s it will enter exponential growth
DeceptionStays below the surface but is doubling every 18 months
DisruptionStarts when exponential intersects linear
DemonitizationMoney is removed as an obstacle
DematerializedPhysical products are removed and condensed
DemocratizedAccess to large populations
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Smart is the new normal
Smart Factory
Smart Mobility
Smart Grid
Smart Logistics
Business Web
Social Web
Smart Homes
Smart Buildings
Internet of things
Internet of service
> Competing in the “Data Layer”
Internet of data
Internet of people
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Adient’s journey towards digital
We have begun to make progress
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> Working with Marketing and Communications
> Digital Marketing> Aftermarket
> Current focus> Digital robots at shared services
center and help desk> Mobile data entry at plants> Program launch analytics> Digital twin during product
development> Industry 4.0 analytics for shop
floor efficiencies
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> Uber-model> Software/Information Technology
in products
Customer Experience> Customer understanding> Top line growth> Customer touch points
Operational Processes> Process digitization> Worker enablement> Performance management
Business Models> Digitally-modified business> New digital business> Digital globalization
* MIT Center for Digital Business and Capgemini Consulting, “Digital Transformation: A Roadmap for Billion-Dollar Organizations”
Digital transformation initiatives are centered in three areas
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IT strategy needs to support current business AND digital business of our future
Run Strong Drive ROI Race Ahead
Reliability˃ Prevention management˃ Operations reviews
Availability ˃ Support (HD – L1)˃ Detailed diagnostic procedures
Maintainability˃ Correct defects or their cause˃ Maximize a product's useful life˃ Improve how maintenance is performed˃ Reduce ongoing costs
Security˃ Risk management˃ Audit compliance
˃ Major projects on core technologies
˃ Continuous improvement ˃ Remain current (N-1)˃ Value stream based architecture
roadmaps˃ Security upfront˃ Rationalization of technologies &
application˃ Examples:
˃ Projects (Business, GI & Security)˃ Project reviews˃ Major technology upgrades
˃ New to Adient ˃ New capabilities / products˃ New processes ˃ New technologies ˃ New locations / markets ˃ New methodologies ˃ New skills˃ Examples:
˃ Marketing automation ˃ Digital twin˃ Virtual reality˃ Augmented reality˃ Agile
(operational excellence through effective execution) (continuous improvement of our core) (deployment of innovative solutions)
1 2 3 Digital focus
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Race ahead through implementation of digital technology
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Business BenefitsDefinition of Digital
Traditional Information Technology
+ Social media+ Smart mobile devices, including ones from
customers and suppliers+ Analytics+ Cloud+ Artificial Intelligence+ The Internet of Things+ Industry 4.0: convergence of Operational
Technology (OT) and IT+ IT embedded in products+ New business models+ Agile organization
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>
Core applications with digital wrapper
People Data Product Data
Operations DataCustomer Data
Collaboration
Digital
AICloud
Industry 4.0Analytics
MobileSocial
Process Automation
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Digital is changing the IT delivery model … increased focus on customer, more proofs of concepts, faster delivery
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˃ Problem Statements˃ Hypotheses˃ CI ideas˃ Lean
˃ Experimentation˃ Rapid Proofs of concept˃ Accept - Reject˃ Estimate
˃ Rapid solution delivery˃ Minimal viable product˃ Continuous delivery˃ Value realization˃ SMAC + IoT, AI
Innovation often doesn’t come from linear thinking. It requires a more creative approach that combines iterative and experimental approaches.
Follow a three-phase approach:• Design Thinking sessions and tactics are used to understand the customer and define the real need• Lean Startup provides opportunities to create prototypes and conduct proof of concepts to experiment and
demonstrate feasibility of the idea• Use Agile practices to implement the solution in smaller segments for more control and allow flexibility
Measure
LeanStartup AgileDesign
Thinking
Build
Learn
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Digital team identifying business opportunities and applying technology to solve
179 business problems
captured
43 Digital proofs of
concepts (POCs)
15+ Projects in production
8Design thinking
workshops
> Program launch> Machine utilization> SMRR mobility> Non-connected
employees> Help desk chat bot> Rockenhausen RFID
on containers> Etc.
> North America training
> Shanghai training> Europe training > Detroit IT leadership
exposure> Recaro aftermarket> GBS automation> Program launch> Warren operations
> Digital boardroom> Fabrics quality defects> Inventory pick list> Foam pump analytics> Exchange rate update> Automate legal entity
creation> Dig4IT work streams> iApprove app
> Container tracking RFID> eLPA app on tablets> Vehicle content> Program translator> Infosys NIA> PPA IoT for Recaro> Accounts Receivable
dashboard> Various IT
enhancements> Cloud apps
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PPA – High level architecture
IT Manufacturing - Shop Floor Application December 201720
Non IoT capable devices (PLCs, Tools, etc.)
IoT capable devices
Field Gateway
MQTT
Adient’s Authentication
Storage
Azure’s Cloud
On premise equipment
Stream AnalyticsIoT Hub
Service Bus
Function/ Routing
Cold Path
Hot Path / Reference Data
Machine Learning (Future dev)
Solution UX, Maintenance
screens
Device Registry
Analytics, Dashboards
Device Orchestrator
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> Manual and time consuming> Many people performing audits
in average plant > Significant time is spent on
audit planning, audit execution, documentation, corrective action planning and reporting
> Lack of visibility to audit data and findings
> High overhead of a manual process results in lack of compliance - plants are not performing audits
> COPQ reduction> Potential savings of 220
hours saved per plant per month
> Increased compliance> Increase visibility
Problem Statement Digital Enabler Business Benefits
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Example: Electronic Layered Process Audit
˃ Mobile capability˃ Applications
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What are you waiting for?
THANK YOU!