gartner the iot in manufacturing operations october 2016
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The IoT In Manufacturing Operations: Where Are We Now?
Simon F. JacobsonResearch VP
17 years at Gartner, 16 years Industry experienceSupply Chain
For a broader insight into Gartner you can find us: @Gartner_inc on Twitter and Gartner on LinkedIn.
@simonfk
https://www.linkedin.com/in/simonfkj
2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Transparency
Data and
Information
3 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
“We have
more data…"
"… but over 70% of it
never gets used!"
“Everything is
connected…"
“to what? Why?
and where?…"
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The Pieces Are
Already In Place
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Intranet of Things Internet of Things
ScopeIsolated Optimization
Local
Extended Optimization
Supply Network
Value Delivered
Controlled, efficient, and
flexible process capabilities
Agile, collaborative, and
ecosystem-based service
levels
Examples
Automated Test and Inspection
• Goal: Reduce warranty and
escapes in drivetrain production
• Approach: IP-addressable tools,
IoT platform for higher-fidelity
process monitoring
• Outcome: 50% decrease in
process disruptions
Digital Twin of Production Assets
• Goal: Boost factory reliability and
decrease service costs
• Approach: Virtual model of
production equipment, advanced
algorithms
• Outcome: Knowledge and
understanding, decreased
maintenance hours
The Intranet and Intranet of Things
6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Through 2018 three out of five Internet of Things projectsin manufacturing operations will only deliver benefitsto local plant operations
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Digitalization vs. Storm Windows
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Inwardly Focused Ecosystems Do Not Thrive
Source: "Factory of the Future Strategies Innovate How Production Delivers Value" (G00275084)
Process Granularity
Performance
9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Cultivate Information-Based Ecosystems
Process Granularity
Performance
Production
Plan Source Deliver Service
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Source: "Factory of the Future Strategies Innovate How Production Delivers Value" (G00275084)
10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Poll: Which styles of analytics does/will your organization use for its IoT data in manufacturing operations?
A. Descriptive
B. Diagnostic
C. Predictive
D. Prescriptive
Please do not vote if you have not already or are not planning to implement an
IoT project in the next 12 months
11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Difficulty
(to Scale)
Time Scale
Low
HighQuickSlow
Factory
Supply Chain
Reliability
Error proofing
Serialization
Energy Management
Asset Performance
Decision Quality
Labor Efficiency
Improved Inventoryand Cash Flow
Safety
IT TCODecision Latency
Pull-Based Replenishment
Degree of ConnectivityLowHigh
Traceability
Break The Plant Centric Benefits Model!
Intranet of Things
Internet of Things
Digital Twin
Availability
12 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
The Manufacturing Improvement PortfolioBalancing Innovation with Core Competency
13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Poll: If you have already or plan to implement an IoT project in the next 12 months, are you planning or have already used Digital Twins?
A. Yes
B. No
C. Maybe
Please do not vote if you have not already or are not planning to implement an
IoT project in the next 12 months
14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Matu
rity
Level
Inside-Out Outside-In
Connected Plants and Factories Connected Value Networks
Site Excellence
Anticipating
Improvement Projects to Drive Efficiencies
Integrated Manufacturing
Network
Integrating
Integrated "Excellence" Within the Manufacturing
Network
Outcome-drivenManufacturing
Collaborating
Customer-Driven With Integrated End-to-End
Processes
Solution-driven Manufacturing
Orchestrating
Value Translated Into Multiple Network
Participants
Standalone Manufacturing
Reacting
Accidental Excellence
Operating Efficiencies
Orchestrated Capabilities
The Trap
The Opportunity
Avoid Outpacing YourselfFive-stage Maturity Model Provides The Roadmap
15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Ask: "What opportunity are we creating?" and not "What problem
are we trying to solve?"
Remove barriers and build bridges between IT, OT and line-of-
business constituencies.
Connect value creation in the plant with value at the customer
Democratize production data across an ecosystem beyond the plant
Avoid letting short-term focuses sub-optimize long term opportunities
This Is More Than a Campaign for Manufacturing Excellence
16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research
Four Best Practices to Manage the Strategic Vision for the Internet of Things in ManufacturingSimon Jacobson (G00307794)
Understanding the Five Stages of Gartner’s Maturity Model for Manufacturing ExcellenceSimon Jacobson (G00294757)
Hype Cycle for Manufacturing Strategy, 2016Simon Jacobson (G00290219)
IoT Survey Analysis: Users Cite Increasing Complexity in Their IoT ImplementationsBenoit Lheureux, Angela Kreiter, Ted Friedman, Earl Perkins, Denise Rueb, etc. (G00304167)
17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
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Thank you –Don’t forget
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