driving unconventional growth using industrial internet...

Driving Unconventional Growth using Industrial Internet of Things

Confidential Property of Schneider Electric |

Prith Banerjee EVP and CTO Schneider Electric

Outline

• Industry Trends in Energy

• Opportunity of Industrial Internet of Things

• How Schneider Electric is Delivering Value using IOT

• Ecosystem and Partnerships

• Summary



• …and the present way of managing energy is

unsustainable We believe access to energy is a

basic human right

billion people currently do not have access to electricity


.3 1 Another billion people have unreliable and intermittent supply of electricity 1 Source : IEA, Economist


Megatrends are provoking a rise in Energy Demand

URBANIZATION +2.5B people in cities by 2050 Source: United Nations, DESA

DIGITIZATION

Source: Cisco

50B connected things by 2020

INDUSTRIALIZATION +50% Energy consumption by 2050 Source: IEA


Resources in the next 40 years

Energy consumption will almost double

CO2 emissions need to be halved

× 1 ÷ 2 We have to become

3 times more efficient

3 × .5

Note: Forecast for 2050 compared to 2009 levels


Our World will be…

MORE ELECTRIC

MORE CONNECTED

MORE EFFICIENT

MORE DISTRIBUTED

• Provide local energy to facilities, around positive energy and micro grids, to empower users

• Falling prices of renewable energy

• 2/3 of energy efficiency potential remains untapped1

• Buildings, industry & infrastructure end-users and datacenters all look to improve performance, efficiency and environmental footprint

• Demand for electricity driven by sustainability, intelligent devices, and evolution of key energy consumers (motion and cooling)

• Internet of Things will connect • at least 50bn devices by 2020

Untapped energy efficiency potential by segment1

82% Buildings & Data

Centers 79% Infrastructure

58% Industry

1: World Energy Outlook 2012, OECD / IEA, Internal analysis


At Schneider Electric, we combine Energy Management, Automation and Software serving 4 markets, i.e. 70% of the world energy consumption

Energy Automation

Software and

Analytics

% are calculated on final energy

Industry & Infrastructure

> 30% ~2%

Data Centres & Networks

Residential Buildings

> 30%

Source: IEA Explore 2015


Schneider Electric, the Global Specialist in Energy Management and Automation

Diversified end markets – FY 2014 revenues1

Utilities & Infrastructure

Industrial & Machines

Data Centers & Networks

Non-residential & Residential Buildings

27% 26% 14% 33%

Balanced geographies – FY 2014 revenues1

25% North America

19% Rest of World

28% Western Europe

28% Asia Pacific

€25 billion FY 2014 revenues

~170,000 people in 100+ countries

~5% of revenues devoted to R&D

1987 1st industrial Human Machine Interface

1979 1st protocol to connect devices and systems with Ethernet TCP/IP

Driving an evolutionary revolution

INNOVATION LEADERSHIP OT / IT PORTFOLIO 1 2 3

Energy Automation

Software and

Analytics IT

OT Convergence • Medium Voltage

• Smart Grid • Distributed Generation • Power Systems • Home/Building Low Voltage • Software and Services • Power Protection • Data Center • Critical Cooling • Secure Power • Energy Storage • Automation & Control • #2 Discrete Manufacturing • #4 Process Manufacturing

2013 1st ePAC With Ethernet built-in at core

#1

What is the Industrial Internet of Things (IIOT)?

“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, Processes and Services

11

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=7TqL2RY59TaE7M&tbnid=_8-XvXD7nHCF-M:&ved=0CAUQjRw&url=http://changeforgreen.com/blog/?p=113&ei=njRkU46XOY30oATh74E4&bvm=bv.65788261,d.cGU&psig=AFQjCNGJrAat9igSgyqhXZeR7AK4ixwLMw&ust=1399162060210859

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 12 Source: BGI

Benefits of IOT are in trillions of dollars

13

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

https://www.google.com/imgres?imgurl&imgrefurl=https://www.card.com/blog/cardcom-and-ceo-ben-katz-forbes-magazine&h=0&w=0&tbnid=UiA4O-dnexz3YM&zoom=1&tbnh=137&tbnw=368&docid=GhYxCoPlMwqa8M&tbm=isch&ei=2T1lU9KcO5btoASu2YGgAw&ved=0CAIQsCUoAA

14

Source: www.weforum.org/reports/industrial-internet-things-unleashing-potential-connected-products-and-services

say that the disruption will

occur within five years

78%

have a funded IIoT strategy

7% indicate that

businesses are not ready for it now

88%

believe that the Industrial Internet

is disruptive

72%

World Economic Forum Study: There is a big gap between aspiration and investment

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.fotosearch.com/clip-art/track.html&ei=SnL7VIjMIoipogTI-ICYCQ&bvm=bv.87611401,d.cGU&psig=AFQjCNGklfycGhGLG_Sd3_gxNdwvMraLPg&ust=1425851315176888

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.fotosearch.com/illustration/starting-gun.html&ei=MxsSVY-MIIS4ggTcioGgAw&psig=AFQjCNGC3HOlWyNWbqWpqj5wbeO24crtXA&ust=1427336355460387

15

Unleashing Unconventional Growth in Industrial IOT

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:

Remote diagnostics & operation

Individually customized outcome-based business models

Outcome-based business model

Digitization route of existing service businesses

Resource Sharing (ala Uber)

Support for Pay-per-

use model

Data Monetization

Smart products and services enable many of the uses cases for IOT and will transform business models

product

services

information & ecosystem

Unconnected Products (HW)

Smart but Unconnected Products

Smart and Connected

Product

Ecosystem of products

Customizable/ configurable products

Self-optimize, self-diagnose

product

Mobile- accessible products

OTA upgradable/ customizable products

Collaborate with other products

from same vendor

Cloud- enabled products

API-enabled products

Product as a platform (e.g., app store)

Collaborate with other products across

vendors

Scheduled equipment maintenance

On-demand & on-spot training

Predictive maintenance

Real-time optimization (e.g., fuel savings)

Service Aggregation

Outcome-based service (single vendor)

Ecosystem of services

Shared Revenue

model

Advisory Services

(based on captured data)

Interconnected system of systems Smart & Connected Products Smart but Standalone Outcome based services

Mar

ket O

fferin

gs

More advanced business models and higher level of disruption


Harnessing the power of IoT to fuel

INNOVATION VALUE PARTNERSHIP

VALUE Confidential Property of Schneider Electric |

Smart, Productive, Profitable Operations through reduction of waste and downtime

Mobile Insight and Proactive Risk Mitigation through simulation, situational awareness, and digitization

Optimized asset availability & performance through predictive analytics, and proactive maintenance

Maximum Energy Efficiency & Sustainability Through smarter systems and real-time data-driven decisions

We see value of IoT in four key areas

Smart, Productive, Profitable Operations

Mobile Insight and Proactive Risk Mitigation

Optimized asset availability & performance

Maximum Energy Efficiency & Sustainability

Value is maximized through connectivity and context


INNOVATION

Automation & Control Systems

Platforms Services

Open System Architectures

Software

Schneider Electric applies IoT-fueled

innovation across a diverse set of capabilities

Connected Products

Nearly all our products ship with System-on-Chip technologies, enabling the “things” in the Internet of Things.

ENERGY EFFICIENCY & SUSTAINABILITY



Smart Public

Services

Smart Buildings

Smart Water

Smart Mobility

Smart Energy

Smart Integration

We connect energy & automation across the enterprise With a common architecture and software suite

• Digitally connect citizens • improve energy efficiency up to 30% • Reduce CO2 emissions, water loss, street crime, and traffic • Enable faster response and better urban services

Utility Bill Data

Energy Metering Devices

Buildings Factories Cities

Building Management

Systems

Weather Monitoring Systems

Energy Efficiency and Sustainability Services delivered in the cloud

Water Usage

Occupancy Data

Schneider Cloud

ASSET AVAILABILITY & PERFORMANCE



DUKE energy saved big with predictive modeling

SMART, PRODUCTIVE, PROFITABLE OPERATIONS



Building Management System Workplace Efficiency Services

Metering, Monitoring, Analysis and Management of Electrical, HVAC, Lighting, Blinds, and Safety.

Employee badges with RFID sensors transmit people location data to an automation server in the cloud

Visitors and employees can connect to a “service portal” enabling control of lighting, temperature, and blinds

Advancing Building Control and Automation increases efficiency, comfort, and space management


“Schneider Electric’s solution meets our expectations in a digital way, which is perfectly in line with our vision of the commercial property.”

Bruno Donjon de Saint Martin Managing Director

Offices France at Unibail-Rodamco

Majunga Tower La Defense, France (Owned by Unibail-Rodamco)

Advancing Smart Grid Control and Automation enables utilities to be more agile, flexible, and efficient

Smart Meters Substation

Easergy T300 Data node

Minera SGrid Controllable Transformer

LV monitor module and Zigbee sensor

Premset Smart Grid Switchgear

Smart meters services that manage rollout, remote meter configuration, reading collection, and system monitoring.

Advanced Distribution Management System

Control Center

MOBILE INSIGHT & PROACTIVE

RISK MITIGATION



Augmented Reality overlays real-time data in industrial applications

Downtime Prevention

Improved Service Speed and Quality

Mobile Operators see critical information triggered by tagged machines and shape recognition

Avoid costly downtime by looking inside the machine without opening a cabinet door

Reduce amount of time spent searching by accessing digital specs and user manuals from tablet


Darren Schulz

Deputy Public Works Director Carson City, Nevada

“ The ability for our engineers and operators to use tablets and smart phones for controlling city services has greatly increased situational awareness and allowed us to become more efficient.”

WonderWare™ In Touch™ , Historian, SmartGlance™


PARTNERSHIP

We are partnering for success

INDUSTRY CONSORTIUMS HIGHER EDUCTAION 1 2 3 TECHNOLOGY

…and on the ground. On platforms… in the Cloud…

We partner at every level of the value chain

at the edge…

Premise

Cloud

Smart Connected Pipelines ensure safety, security & reliability

Pipeline Automation Architecture

Secure access to the whole network

A safe, secure, and automated network and telcom infrastructure

High availability and secure remote access to pipelines with integration of video in’ SCADA systems


Energy is the base of life.

• Safe • Reliable • Efficient

• Connected • Sustainable

when energy is on. everywhere, for everyone and at every moment.

driving unconventional growth using industrial internet...

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