Digital Transformation with IoT
Digitization Trends Across Major Industries
ENABLE NEW BUSINESS MODELS
Create recurring revenue models with increased customer intimacy
TRANSFORM BUSINESS PROCESSES
Higher productivity by predictive maintenance and better asset utilization
Smart Manufacturing Grid Modernization Shopper Insights
IoT Enabling Transformation
Smart Cities Connected Transit Smart Space
Where is the value
Connect the
Unconnected 50Billion
Smart Connected Devices by 2020
Hyper-connectivity, IT and OT convergence
Interoperability across silo’ed systems
required to capture 40% of IOT value
<1% of data currently used, more can be
used for optimization and prediction
Over 60% of the IOT value will be
generated in Enterprise deployments
Source - McKinsey: The Internet of Things: Mapping The Value Beyond The Hype
Where Are You on the Digital Journey?
Smart
energy
consump-
tion Real-time
yield
optimization
Routing
flexibility
Machine
flexibility
Remote
monitoring and
control
Predictive
maintenance
Augmented
reality for MRO1
Human-robot
collabo-
ration
Remote monitoring
and control
Automa-
tion of
knowledg
e work
In situ
3D
printing
Real-
time SC
optimization
Batch
size 1
Statistical
process
control
(SPC)
Advanced process
control (APC)
Data driven
demand
prediction
Data-driven
design to
value
Customer
co-creation/ open
innovation
Concurrent
engineering
Rapid experimen- tation and simulation
Predictive
mainte-
nance
Remote
mainte-
nance
Virtually
guided
self-
service
Intelligent
lots
Digital
performance
manage-
ment
Digital quality
management
Supply/
demand
match
Time
to
market
Resource/
process
effective-
ness
Asset
utilization
Labor
efficiency
Inventories
Quality
Service/
after-sales
Asset visibility
Asset utilization
Employee productivity
Automation
Digitization Is the Key to Leapfrogging the Industry
Supply/
demand
match
Time
to
market
Resource/
process
effective-
ness
Asset
utilization
Labor
efficiency
Inventories
Quality
Service/
after-sales
Asset visibility
Asset utilization
Employee productivity
Automation
Faster time
to market
Lower
operational costs productivity increase
lower
downtime
Faster time to
completion
Lower inventory costs
Higher quality
Savings with
accurate
forecasts
Common Phases of IoT Journey
Asset Management
Predictive Maintenance
Field operations
Supply Chain Optimization
Safety & Compliance
Common IoT capabilities
Complexity Stands in the Way
Connectivity & Security
Data Aggregation
Real Time Visibility
Automation & Management
Value Monetization
Ecosystem Interoperation
We Can Solve These Problems By
New Innovations
in Connectivity
Cloud-Based
Infrastructure
Management
Analytics &
Actuation
Infr
astr
uctu
re
Ou
tco
me
s
Ca
pa
bili
tie
s
Analytics
and Applications
Unified Connectivity
End-to-End Security
Manage Data from Edge to Cloud
Integrated
Business Processes
Open Standards Network
Network as an Enforcer
Fog Compute
Analytics & Automation
+ Industry-Leading
Partner Ecosystem
Vertical-Specific
Digital Solutions
Tra
nsfo
rmation
Sources: Cisco IoT Purchase Process Global Study January 2015,
Forrester Research study commissioned by Cisco November 2014,
IDC Futurescape: Worldwide IoT Predictions Dec 3, 2014
IoT Made Simple -- Cisco Solution Framework for the Digital Journey
Vertical Solution -- Manufacturing
Immense Business Benefits Expected
What business benefits do you expect to derive from Digital Manufacturing?
Reduced
Downtime
48%
Unplanned
downtime down from
11% to 5.8%
Reduction in
Defects
49%
Defect rate
down from
4.9% to 2.5%
New Product
Introduction
23%
New product
introduction cycle
time reduced from
15 to 11 months
OEE
Improvement
16%
Average OEE
improved
from 74% to 86%
Improved
Inventory
35%
Inventory
turns increased
from 14 to 19
Reduction in
Energy Use
18%
Annual energy
cost down from
$8.4M to $6.9M
Source: SCM World/Cisco “Smart Manufacturing and the Internet of Things 2015” survey of 418 Manufacturing Business Line
Executives and Plant Managers across 17 vertical industries.
Solutions Driving Manufacturing Value
Process
Optimization Supply
Chain Factory
Security Control
Network
Cisco Security
ZDT Service Center Portal Alert Monitoring, Schedule Parts and Maintenance, Enhanced Customer Service Tools
ZDT Customer Portal Track alerts, View ZDT network status, Access ZDT reports, Authorize users, etc.
Web Services
Business Intelligence/
Reporting Area
Plant 1 Plant 2 Plant X Data
Receive
FANUC CLOUD
Persistent, Secure Encrypted
ZDT D/C Customer
Cisco Customer Security
Data Analytics
Machine Learning
Data Visualization
ZD
T D
ata
C
olle
ctor
@
Challenge
Solution
Business Outcomes
Save estimated $40M in machine downtime Provide visibility on machines are utilized and increased the overall equipment efficiency (OEE)
No visibility on how machines are utilized Machine downtime cost millions Data collection and edge compute Cloud managed service across plants
ZDT data collector with UCS on-prem Streaming machine data to Cisco Cloud service and perform data analytic with Cloudera cluster
Process
Optimization
Process Optimization
at FANUC
Challenge
Solution
Business Outcomes
300% Internal Rate of Return (IRR) increased production and overall equipment efficiency (OEE) by 10%
Enable connectivity Mazak machines for predictive maintenance and MaaS business model
Cisco-enabled iSmart Machines with imbedded network switch, security and MTConnect Agent
Process
Optimization
Process Optimization
at Mazak
Solutions Driving Manufacturing Value
Process
Optimization Supply
Chain Factory
Security Control
Network
Supply Chain Use Cases Supply
Chain
• Engineered to order
• Customer commitments – schedule adherence
• Pallet tracking factory to customer for end to end
traceability
• Inbound inventory visibility
• Freight verification and real time visibility
• Asset management
• Increased margins
• Lean manufacturing
• eKanban & Kaisan principles Material Flow
Manufacturing
Flexibility
Supply Chain
Visibility
Production
Optimization
Cisco Supply Chain Organization Transformation for Improved Resiliency and Agility
Business agility constrained by
highly customized supply chain
system and multiple ERP
instances
Country enablement and ability
to introduce new business
models hampered
Few industry-standard
processes and automation
efficiencies in the supply chain
Simplified operations using
out-of- the box Oracle
functionality
Incorporated build-to-stock
model into supply chain;
integrated industry-standard
business practices
Time to add new node (factory)
shrunk from 18 to 6 months
30-50% reduction in time to market
Up to 73 percent reduction in order
cycle times
About 25 percent reduction in
product touches
Eliminated redundancies and
duplicate transactions
Results Challenge Solution
“For seven consecutive years, Cisco has placed in the Top 10 of Gartner’s prestigious
ranking! Led by Cisco Senior VP John Kern, the supply chain operations team here at
Cisco has undergone an extensive transformation and continues to be recognized globally
as a best-in-class practitioner.”
Chet Namboodri in Cisco Manufacturing Blog
Sub-Zero Wolf
Meet launch schedule for 60 new
products
Adhere to stringent quality
requirements and manage issues
from new supply-chain partners
Increase staff productivity time and
collaboration while reducing travel
and costs (engineering was not in
same location as manufacturing
Integrated manufacturing mobile
video capabilities into daily
workflows and processes
Upgraded wireless networks to
support mobile devices and video
streaming and conferencing within
manufacturing facilities
Integrated solution into existing
video infrastructure and tools
Results Challenge Solution:
“With this solution, we found a way to see and discuss very detailed video and images
from afar in a highly secure manner. We are now using video collaboration on a daily
basis to finalize designs, correct production line issues, work with suppliers, and train
installers and servicers.”
-Paul Sikir
VP of Engineering
Premium Appliance Manufacturer Innovates with IoE
Shaved 10-20% off new product
introduction cycle time
Estimated internal savings in
downtime costs of $2,500 per
production line per hour through
faster resolution of design or
manufacturing issues.
For one project, Sub-Zero
estimates an annual travel savings
of more than $40,000.
Over $100,000 savings in field
testing costs.
Solutions Driving Manufacturing Value
Process
Optimization Supply
Chain Factory
Security Control
Network
Factory Security Challenge
Plant
Physical
Remote Access
Open Port
Malware
Proximal
• Today’s control’s
environments have “soft
middles”
• Today’s solutions not geared
to protect against threats
like APTs
Factory
Security
Factory Security Solution
Let’s do some
maintenance!
Enterprise Network
VPN
DMZ
Supervisory Network
Control System Network
Remote Facility
IEDs, PLCs, Sensors,
Actuators
Historian
SCADA/DCS Historian
Cloud Systems
App Server Web Server
Enterprise Network
DMZ
Supervisory Network
Control System Network
Web Server App Server
Historian
Database
Historian
IEDs, PLCs
Sensors,
Actuators
Remote Facility
VPN
Field Network
Sensors
Cloud Systems
Internet
Actuators
SCADA/DCS
Remote Services
VPN
Enterprise Network
DMZ
Supervisory Network
Control System Network
Web Server App Server
Historian
Database
Historian
IEDs, PLCs
Sensors,
Actuators
Remote Facility
VPN
Field Network
Sensors
Cloud Systems
Internet
Actuators
SCADA/DCS
Remote Services
VPN
Enterprise Network
DMZ
Supervisory Network
Control System Network
Web Server App Server
Historian
Database
Historian
IEDs, PLCs
Sensors,
Actuators
Remote Facility
VPN
Field Network
Sensors
Cloud Systems
Internet
Actuators
SCADA/DCS
Remote Services
VPN
Remote Services
VPN
Field Network
Actuators Sensors
Internet
Application Visibility, IPS/IDS
Identity Services Engine
Switching
Video Surveillance Manager
Routers
Firewalls Access Points
Network and Security Mgmt.
Layers
Secure Zones
Cells Zones Plants
Segmented Access
(Role-Based) Security Policy, AAA and Identity Services
Industrial Cyber Security
Security Monitoring, Threat Detection, Incident
and Event Monitoring
Physical Security Smart, Programmable Cameras
Factory
Security
Solutions Driving Manufacturing Value
Process
Optimization Supply
Chain Factory
Security Control
Network
Control Network Use Case Control
Network
Networking
the Factory
of the Future
Reduced
Network IT TCO
by 18%
Increase
Line
Uptime
Flexibly
Meeting
Demand Shifts
Sugar Creek Packaging
Get better transparency of real-time
production to schedule
Expand into a new product portfolio
that needs sensors everywhere
(Sous-Vide) for ideal production
Need to understand effects of
emergency issues and help first
responders in case of issues
Gain better visibility to real-time OEE
for all users in all locations
Leverage Cisco Connected Factory
Architecture in the plant
Combine with AeroScout RFID tags,
Cisco Wireless
Integrate machine data to digital
signage and mobility applications
Results Challenge Solution:
“With the help of the Cisco and Cisco Services, we have been able to expand our
product portfolio by adding a new plant. This has also allowed us to add additional
insight into our operations that was not possible before.”
-Rob Daley
CEO Sugar Creek
Food Manufacturer expands product portfolio
Met new factory schedule for
implementation
Reduced labeling error rate by
45%
Improved labor utilization from
65% to 88%
Improved visibility of workers on
job at hand to speed product
introductions
New sensor visibility
Nestle Reduces Downtime Wireless Network Increases Visibility to Production Processes
Reduced business risk of
downtime with network visibility
Reduced requirement for SLA-
based service, thereby saving on
operational costs
Allows for mobile workforce in new
head office building and
manfufacturing facilities
Results Challenge Solution
““IT now truly supports Nestlé’s business-critical production processes, because we have full
visibility of connectivity to networks across all our manufacturing facilities.”
-Kavi Garrib,
senior systems engineer Nestlé Southern Africa Region
Cisco Prime Network
Control System provides full
visibility of connectivity
across sites
Cisco solution allows for
remote monitoring and
management
IT team had to physically
travel to support 10
geographically dispersed
manufacturing facilities
Needed to improve uptime
of the network for the
tracking of business-critical
production processes
Can you support
the growing
number of devices
in different
environments?
Can you provide the
secure connectivity
for IT & OT
convergence and
support standard
protocols for
interoperability
and scale?
Can you efficiently
analyze and manage
data from the edge
to the cloud?
Can you provide
the infrastructure and
tools necessary to
combine IoT
analytics with
business analytics?
Can you assist in the
creation of highly
sophisticated
applications needed
for your business?
Can you enable
convergence of OT
and IT networks to
create and enforce
a consistent policy
across the entire
Enterprise?
Connectivity Security Fog Computing Data Analytics Management &
Automation Application Enablement
Is Your Digitization/IoT Strategy Ready?