driving unconventional growth through the industrial internet · driving unconventional growth...

Driving Unconventional Growth through The Industrial Internet

Prith Banerjee

Managing Director

Global Technology R&D

Accenture

What is the Industrial Internet?

“The industrial Internet is the universe of

intelligent industrial products, processes and

services that communicate with each other

and with humans over the Internet”

Intelligent Product, Environment and Services

Copyright © 2014 Accenture All rights reserved. 2

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The benefits of Internet of Things are in the trillions of dollars


Source: World Bank 2011, GE 2012 Source: Cisco, 2013

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Internet of Things is not new, so why now?

Cloud Storage

Inexpensive & abundant storage

enables aggregation of data

streams from a variety of sources

Industrial Internet

Embedded Sensors

Powerful but miniaturized sensors

becoming universal connectors

between physical & digital world

Ubiquitous connectivity Ubiquitous connectivity extended

to physical products,

infrastructure & things Real-time Analytics A combination of cloud and edge

analytics enables real-time response to

cyber-physical systems Copyright © 2014 Accenture All rights reserved. 4 Source: BGI

Accenture’s Investment in Industrial Internet


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http://www.marathonpetroleum.com/

Copyright © 2014 Accenture. All rights reserved. 6

The Industrial Internet as the universe of

intelligent industrial products, processes and

services that communicate with each other

and with people over a global network

Driving Growth from the Industrial Internet (Point of View Published Sep. 2014)

The Industrial Internet has been heralded primarily as a way to improve operational efficiency. But in today’s environment, companies can also benefit greatly by seeing it as a tool for finding growth in unexpected opportunities.

Operational Efficiency Automation, more flexible production techniques and

predictive maintenance

Top-Line Growth New digital products and services, and generate entirely

new sources of revenue


The Industrial Internet will enable the capture of significant value – of which operational efficiency is only a small part

Value Categories Strategic Approach

Value

Unconventional Revenues

NextGen Products/Services

Product as a Platform

New Business and Operating Models

Most Valuable Information Provider

Operations and Predictive Maintenance

Commercial Optimization

New Customer Experience and M2M Applications

Treating Services as R&D for

products

Enabling third parties to create

information services

Locking customers into the

information services

Sensors, analytics, and real time

data for insights

Flexible production techniques to

boost productivity

Data to work as digital service for

equipment performance

Gain opportunities to create

customer touch points

Avoiding unnecessary product

shutdowns

Computerize repetitive tasks and

workflows

Improved supply chain and

logistics performance

Reduce costs of energy,

maintenance, repair etc.

Incremental Revenues

Operational Efficiency

Preventive Maintenance

Process Automation

Operation Optimization

Global Asset Visibility

Examples:


Four steps to exploit revenue-generating opportunities

1. Innovate through Product-

Service Hybrids

Intelligent technologies will fuel

innovation

2. Be the most valuable

information provider 3. Intelligent technologies 4. Create the Industrial Internet

workforce

Data from Wearable devices

Digital Workforce

Management

Analytics from

devices

Inputs

Outputs

Industrial Internet Platform

M2M comm.

on-board devices

Intelligent

Plants

9

1. Innovate through product-service hybrids

Asset Owners / Operators

Preventive Maintenance

Automation

Operation Optimization Services

Reduce Resource cost

NextGen Products/Services

Product as a Platform

Data Analysis & Recommendations

Most Valuable Information Provider

Boost Productivity

Improve Equipment Performance

Increase Customer trust & loyalty

Product Makers

10

Bringing additional value to both existing and new customer segments

Next purchase

Time

Iss

ues

• Few point of contacts between company

and the client. Limited to purchase moments

and infrequent maintenance engagements

• Very little insight into the client needs and

behavior.

• High risk of attrition due to inadequate

value proposition to the client.

OLD:

Products

NEW:

Connected /

Intelligent

products

Maker

Owner

Time

Maker

Owner

Ou

tco

me

s

• Continuous engagement with client, even

post purchase, through digitization of

consumption

• Deep insight into client needs and behavior

• Increase customer lock-in through

personalized offerings

• Address new customer segments through

new services in a test & learn approach

• Build a Direct to consumer relationship

Product purchase - Engagement moments between customer and company

Product purchase Next purchase Next purchase

Product purchase Next purchase

Continuous data usage sent .

Product purchase

Service Purchase

Product-Service Hybrids will be a primary enabler of new value for product owners / operators and makers

Michelin move to Service vision Tire Manufacturer Business-as-a-Service ecosystem

Scale up existing Tire-as-a-Service business

Bring new services to the market

Federate an ecosystem of business partners

1

2

3

Fuel -Efficiency

Uptime

Veh

icle

Fle

et

Eco

-Driv

ing

Strategic Usage Data

To get stronger and faster in the Services business

Convergence of interest

Able to support ambitious growth over the next 10 years

Global footprint

11

12

Michelin is helping truck fleet managers reduce fuel consumption and costs, and allowing them to pay for tires on a kilometers-driven basis.

Products

Information

Services

Equipment

services

Product

or service

Go to market approach

Pre-digital product line Digital product line New market segment

Tires

(Michelin)

Tires with sensors

(Michelin)

Tires as a service (Michelin

Solutions)

Fuel consumption reduction

service (Michelin Solutions)


2. Be the VIP – Most Valuable Information Provider

Sell products, and your customers interact with you only when they have a problem.

Sell services, and you gain multiple opportunities to create customer touch points, build trust and become the preferred provider for new services.

• Increase ability to have context rich interactions

within value chains

• System offers analytics on large

real-time data for diagnostic and recommendation

• Share data with partners for value –added services

across the eco-system e.g. carrier, vehicle and

payment services

Make the consumer aware of their “Internet of Things” and then work with the

ecosystem partners to drive next generation customer experiences.

Consumer

Today

Future

M2M on the

move

M2M in the home Loosely connected devices

Networked Enterprise

M2Ms

Cross selling & new value-

add services

New Consumer M2M

14

Precision farming requires information about soil chemistry, location, weather to optimize yield per acre or hectare.

Behind the scene John Deere’s digital services strategy:

4

6

7 8 9 10

11

1. Weather Base Station collects on-site

weather data, transmitted wirelessly

2. Field Probe collects soil moisture data,

transmitted to base station

3. Weather Data provides site-specific

weather data, but without direct

measurement 6. Soil Sample collected by agronomist

determines composition and nutrient level of

the soil, collected every 3 years

4. Imagery from satellites allows farmers to

divide land into micro-fields, enabling

precision

5. Drones will be a cheaper alternative that

also scout fields and check plant health 11.Mobile/Computer allows

farmer to input information

about their farming

decisions

7. Tractor Sensor measures seed inputs

8. Sprayer Sensor measures

fertilizer/pesticide inputs

9. Harvester Sensor measures crop yield

10.Telematics measures machine location,

performance

1 2 3

5

3. Intelligent Technologies that will fuel innovation

15

Se

cu

rity

CO

NV

ER

GE

NC

E

OPERATIONAL TECHNOLOGY

Sensor-Driven &

Mobile Computing

Industrial Analytics /

Big Data

Intelligent Machine

Applications

INFORMATION TECHOLOGY

Cloud / Infrastructure

Strategy,

Governance,

Operating

Model

Se

rvic

es

Innovation is critical to developing and delivering differentiated new product-service hybrids that drive growth. To reap the full benefits of the Industrial Internet, companies will need to excel at exploiting these technology capabilities: sensor-driven computing, industrial analytics and intelligent machine applications.

Business Value

Operational Efficiencies

New Services & Pricing Models

Unconventional Growth

IOT / Industrial Internet Capability Model


4. Integrate Digital and Human Labor

While the adoption of the Industrial Internet will accelerate and expand the use of digital labor (in the form of automation using intelligent software and robots), greater returns and productivity gains will come from augmentation, which seamlessly blends digital and human labor in task-specific environments

Examples

Remote operation of mining equipment from the Command Center

Adaptive robots working side-by-side with people on the factory floor

Self-driving cars create an entirely different kind of commute and driving

experience


Flexible Solutions

Customizable solutions that achieve your

business goals:

• design missions to satisfy your business

needs

• select type of UAV, number of UAVs and

identify vendor

• determine the right set of sensors to meet

the mission objectives

• customize analytics engine for your use

case

• deploy flexible solutions through integration

with any Industrial Internet platform

Illustrative Console: Fleet Management of UAVs for Asset Monitoring

Assets such as Oil & Gas pipeline can be remotely monitored, using sensors on UAVs,

to detect intruders, pipeline leaks, etc.

Robotics As Digital Labor: Reduce the Time to Location and Risk Exposure at location

Product-Hybrid Services Delivery Vision

End-to-End View of a Connected Services Solution

Apps &

Services Analytics Sensor/Mobility/

Collaboration

Connected Equipment

Centralized Cloud

Customer Device

Service

Business

Support

Service

Enablers

Infrastructure

Network

Connectivity

3rd Party Support

Integration &

Orchestration

Network Edge Platform

Edge Cloud

18


RESOURCES OG PRODUCTS OG

Accenture Tech Labs IIoT Platform

Platform Candidates: Accenture DCPP, Amazon, Microsoft ISS, SF, SAP HANA, Open Source

Intelligent Machine

Application

Industrial Data Mgmt &

Analytics

Sensor-Driven

Computing

Ind

ustria

l Co

ntro

l

Secu

rity

Go

vern

an

ce &

Op

era

tion

s

Example Platform: Industrial Data Management & Analytics

20

Kinesis API Java

Redshift

AMR or

OSIsoft

D3

1. Ingest

Kinesis

Producer

Kinesis

Consumer Dynamo

3. Serving Layer

Talend

0. Batch Layer

Spark

Streaming

2. Speed Layer

Kinesis

Consumer

Labs Build

Non-labs Build

Spark SQL

4. Analytics Layer

Labs Team augments existing Analytics as a Service Platform’s batch capability (0) to handle streaming time-series at scale—ingest (1), near-real time analyze (2), serve and visualize (3), and analytic modeling (4).

Working with Clients on IIoT Solutions

21

SINGAPORE

Resources Products CMT H&PS

Labs Operating Model

Digital OGs

Resources OG

Products OG

…

Mobility

Analytics

…

World Economic Forum


Final Report Structure

Impact of Industrial Internet of Things

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Standards Bodies and Consortia

• Industrial Internet Consortium founded in March 2014 by AT&T, GE, Intel, Cisco, IBM

• www.iiconsortium.org/

• 85 member companies with an emphasis on industrial applications

• Accenture joined as member in June 2014

• The main aim of the IIC is to define an open architecture that will ensure extensibility

and interoperability,and a test bed to prove the architecture and test implementations

• AllSeen Alliance founded by Qualcomm in Feb 2014

• https://www.alljoyn.org/

• About 60 member companies focusing on consumer applications and device level interconnection standards (Qualcomm, Panasonic, Sharp, LG, Electrolux, CISCO, HTC)

• Open Internet Consortium founded in July 2014 by Broadcomm and Intel

• www.openinterconnect.org/

• About 10 member companies focusing on consumer applications and device level interconnection standards (Broadcomm, Intel, Atmel, Dell, Samsung, Windriver)

http://www.iiconsortium.org/



https://www.alljoyn.org/



http://www.openinterconnect.org/

http://www.openinterconnect.org/

Challenges and Opportunities

Unreliable

Infrastructure

Cyber-Security

Concerns

Volume of

Data

Modernization

of legacy

systems

Data Sharing &

Privacy Concerns

Labor/Skill Shift

Concerns

Data & Infrastructure

Interoperability

Real-time

Analytics


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QUESTIONS? POV can be downloaded from

http://www.accenture.com/us-en/technology/technology-labs/Pages/insight-industrial-

internet-of-things.aspx

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