internet of things and smart manufacturing
TRANSCRIPT
Internet of Things and Smart ManufacturingInternet of Things and Smart Manufacturing
Next Paradigm for the Manufacturing SectorNext Paradigm for the Manufacturing Sector
Karthik Sundaram
Jithendranath Rabindranath
July 10, 2014July 10, 2014
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Presenter’s Profile
Functional Expertise�Strategic Market Research expertise in the domain of Industrial Automation and ProcessControl.�Technical expertise in the field of Industrial Automation. Particular expertise in:Engineering, Design and Commissioning and of Safety Systems (Invensys Triconex)Industry Expertise�More than three years of intensive research expertise in the markets of distributedcontrol systems (DCS), programmable logic controllers(PLC), human machine interface(HMI), supervisory control and data acquisition (SCADA) and product lifecyclemanagement (PLM).�Specialized focus on future manufacturing process frameworks, with specific focus in theacross the concepts of Industry 4.0/Smart Manufacturing.
Karthik SundaramIndustry Analyst
Frost & Sullivanacross the concepts of Industry 4.0/Smart Manufacturing.
Frost & Sullivan
India
Jithendranath RabindranathResearch Analyst
Frost & Sullivan
India
Functional Expertise�Functional expertise in logistics and supply chain management industry, includingprojects mainly focused on:
oWarehouse Management System : Receiving and put-away, Replenishment andpicking, Packing and loadingoProject Management : Monitoring the work and cost, motivating the team, reportingprogress back to the organization, working with the team to solve project problemsand achieving the team goals.
Industry Expertise�Experience base covering broad range of sectors, leveraging long-standing workingrelationships with leading industry participants’ Senior Executives in
oEffective TransportationoSupply Chain Management
Agenda
Coverage Dimensions
�Industry 4.0/Smart Manufacturing: The Vision and its Implications�Industry 4.0/Smart Manufacturing -Functional Attributes�Challenges for IoT in Manufacturing�Industry Convergence Matrix: IT and ManufacturingManufacturing�IoT and Smart Manufacturing�Enabling Technology Platforms�Technology Convergence & Applicability�Funding Initiatives & Economic Scenario�Key Global Initiatives & Practices �Futuristic Preview�Investment Opportunities �Strategic Insights�Industry 4.0 and the End-user Equation
Industry 4.0/Smart Manufacturing: The Vision and its Implications
Industry 4.0
Technology
Industrial Cyber Security
Big Data Analytics
Cloud Platforms
Internet of Things
Industry ConvergenceIndustrial Revolution 4.0 - PursuitsIndustrial Revolution 4.0 - Pursuits
Industrial Revolution 1.0 – 3.0Industrial Revolution 1.0 – 3.0
• Mechanised Processes
• Mass Production
• Production Automation
The term “Industrial” in this context, refers to allsegments within the industrial world associated withdiscrete/process industries. It’s scope is inclusive ofenterprise applications in board rooms tomanufacturing production units in the shop floor.
Industry 4.0
Processes
Collaboration
Mass Customization
Flexible Production Models
Internet of Services
Sustainable Manufacturing
Lifecycle Assessment
• Product Innovation
• Increased Collaboration
• Operational Process Enhancement
• Cyber-Physical Production
�Convergence of applications will form crux of new advancements
�Energy efficiency and sustainability to gain greater business focus
�Greater presence of mobility and web-based information systems
�Convergence of applications will form crux of new advancements
�Energy efficiency and sustainability to gain greater business focus
�Greater presence of mobility and web-based information systems
Strategic Trends
Industry 4.0/
Smart Manufacturing
Industry Convergence
Services as New Profit
Centres
$
� Improved asset utilisation
� Energy optimisation
Integrated
ERP
Industry 4.0/Smart Manufacturing - Functional Attributes
Collaborative IT
Industrial Cyber
Security
$
� Fosters Innovation� Reduced time-to-market� Improved productivity� Minimal capital expenditure� Efficient training mechanisms
� Improved cost benefits� Reduced total cost of
ownership
Integrated Enterprise Ecosystem
PLM
MES
�Enabling enterprise integration�Enhanced production safety
Challenges for IoT in Manufacturing
Industry convergence alters
competitive landscape
Fast-changing consumer trends
impacts enterprise stability
Competitive pressures driving
Ineffective innovation
Risk of Cyber Attacks
Multiple challenges are set to impact
6
Burgeoning Competition
Increasing commodity
costs
Growing Energy
Demand
Global Economic
Woes
Uncertain Geopolitical Landscape
Volatility in Government
Policies
�Maximised production @minimal energy - A catch 22 situation
� Convergence of industries�Rise of disruptive technologies�Weak manufacturing output� Lower profit margins�Regulatory Pressures
Multiple challenges are set to impact enterprises during the course of their evolution. But the biggest
challenge that can derail progress is “Industrial Cyber Security”
Customer
Manufacturing EnterpriseManufacturing EnterpriseCore IndustryCore Industry
Ethernet DevicesCloud IT Infrastructure
3D Operator Training Assistance
VR Predictive Maintenance
Asset Management Apps
Digital Manufacturing
EMI
Mobile Maintenance
VR Simulation Systems
Wireless Communication
Industrial IT Market: Manufacturing Sector, 2014
Industrial Internet
Professional
Industry Convergence Matrix: IT and Manufacturing
CustomerFocus
Consumer
Industry FocusInformation & Communication
Technologies (ICT) Manufacturing
Commercial IT
Cyber Security Apps
Warranty Management Apps
Social Media Apps
Maintenance
Remote Home Control Apps
Note: Top five markets are in brown text boxes. Source: Frost & Sullivan
3D Printing
IoT and Smart Manufacturing
Internet of
Sensors
Computers
� The Internet of Things (IoT) is ascenario in which the information isgathered from sensory equipment andconnected devices that are uniquelyidentifiable and emit massive amountsof data.
� An increasing trend towards the realizationof plant wide optimization, informationaggregation and analytics, networkinfrastructure and multi disciplined controland intelligent assets are driving theadoption of the this technology in variousmarket sectors.
Benefits
� Enterprise-wide traceability
� Converged supply chain automation
Megatrends Influence
� New Business models and
� Increase in popularity with thedevelopment of readily availablesensors, real time analytics androbots.
of Things
Computers
Video
Analytics Engine
Cloud Datacenter
IntelligenceUser
� Converged supply chain automation
� Efficient resource utility
� Process optimization
� Data-driven sensor awareness
� Enhanced data-driven decision analytics
New Business models andInnovating to Zero are the two megatrends that are expected to achievedthrough enabling IoT with smartmanufacturing.
Enabling Technology Platforms
Applicability
Manufacturing/Production
Sensors• Smart Sensors• SCADA• Wireless Sensors & Networks• MEMS/Nanosensors• Energy Harvesting
Electronics• RFID• Touch & haptics• Gesture recognition• Advanced displays• Wireless charging•Near field communication (NFC)
Internet�Manufacturing/Production�Inspection�Security�Service Support�Business Operations
Communication• Cloud Platform• Big Data• Data Centres• Augmented Reality
Software• Information and discovery services
(IDS) • Contiki• Mantis• GPS
Internet• WPAN’s• Wi-Fi• 3G• LTE
Video• CCTV• Stereo Cameras• 3D Cameras
ApplicationsSensorsICTOthers Electronics
Technology Convergence & Applicability
RFIDAugmented Reality
Smart
Big Data
CloudRFID
GPS
Wi-Fi
NFC
WPAN’s
NFC
RFID
SCADA
SCADA
MEMSCloud
Smart Sensors
GPS
Augmented Reality
RFID
GPS
Cloud
GPS
Big Data
NFC
RFID
3G
3G
Wi-fi
3G
MEMS
Smart Sensors
Funding Initiatives & Economic Scenario
� The EU Commission under its horizon 2020 initiative has granted funds for various projects.
Europe - GDP –
Manufacturing – 2013
� The UK Government has announced a funding of $61 Million for companies working on developing the IoT platform in order to enable it in different application sectors.
�Advanced Manufacturing Control Systems, Ireland received $39 million from
� In the USA, corporate and venture capital funding are driving initiatives.�Puppets Lab, US, received about $45.5 million from venture capital funding for development of IT automation software.
US - GDP –
Manufacturing – 2013
20%; Growing trendManufacturing – 2013
16% ; Declining trend
received $39 million from venture capital funds.
20%; Growing trend
Though Asia is the
manufacturing base for several
products, smart manufacturing
has not garnered significant
interest.
Key Global Initiatives & Practices
High-Tech Smart Factories for Higher Productivity and Efficiency•A key market player in Germany has built a futuristic plant with high-tech
facilities.
• It has smart machines that are coordinated with the company’s control devices.
•This has enabled the company to significantly reduce the lead time and material
wastage thereby improving the overall process efficiency.
Adoption of Smarter Solutions to Boost Growth•A key market player in the USA, has enabled the Industrial internet in its plant
and it is expected to play a critical role in the company’s growth over the next few
years.
Collaborative Model Leading to Realization of Factories of the Future•One of the major players in the USA market has collaborated with a university for
the creation of an appropriate, smart IT infrastructure.
•They are showing manufacturing companies a realistic route to the intelligent
factory of the future.
Futuristic Preview
Headquarters Testing
Customer
A company has an R&D center in North America, testing operations in North America and Europe, and sourcing of materials for the
finalized design happens in APAC and ROW. Finally, the item goes into manufacturing at a site in China.
Headquarters Testing
R&D Facility
Manufacturing
Sourcing
Customer
Through sensors located across the supply chain, information is
transmitted to the appropriate systems and personnel from each
segment, each region, and each business unit.
A typical Internet of things environment fits into a company’s exhaustive supply chain and transmits
information through a robust network infrastructure to enterprise solutions, which makes use of the data that
is obtained.
Investment Opportunities
What is it for
Countries across the globe consider the manufacturing sector to be one of the
key sectors to increase the economy of the country.
With IoT , the manufacturing companies are expected to achieve
a number of benefits in terms of optimizing their production
In the USA and Europe there has been an increased interest in achieving the
Industrie 4.0 and smart factories in the near future. IoT is seen one of the technology for enabling the same.
Other than the manufacturing sector, IoT is expected to have an impact in
various other market sectors such as retail, healthcare and infrastructure
thereby increasing the business What is it for the
investment community?
IoT is considered to be one of the key enablers for realization of
smart manufacturing/factories of the future concepts leading to
improved productivity and efficiency.
optimizing their production process by reduced lead time,
increased efficiency and reduction in time taken for the product to
reach the market.
thereby increasing the business opportunities.
IoT in Smart Manufacturing will provide a gateway for
commercial ICT vendors to enter the manufacturing space.
With the advent of IoT in Smart Manufacturing, existing industrial suppliers are set to witness
increased competition from commercial IT vendors in the future.
Strategic Insights
Commercialization Strategy
•Active funding for R&D activities and commercialization, in addition to
demonstrating increasing the capabilities.
•Improving the product features will further increase the wide scale adoption by
users for their various needs.
Marketing Strategy •Increased awareness of the concept in order to demonstrate the capabilities and
advantages of this novel technology platform to realize futuristic efficient
factories.
Target Markets•Increasing the capabilities in order to cater to various manufacturing industries
and targeted specific application sub- segments.
Asia is the manufacturing hub, initiatives to gain the attention of the stakeholder•Asia is the manufacturing hub, initiatives to gain the attention of the stakeholder
ecosystem in this region.
Ecosystem Diversification•Expanding the strength of service providers and stakeholders in the market will
help users to adopt the IoT concept without having to invest a lot of money in the
initial installation.
Co-opetiton Model –Collaborate with Major Tier Players & Compete
•It is beneficial if the incumbent join with one of the key players and enter the
market. Through this collaboration, the incumbent can have successful sales and
can also avoid the need of a creating a positive brand image considering it has
never commercialized its products earlier. Additionally, it can also avoid the
growing pains to establish itself in the market, especially when it’s competitors
are considered as giants globally.
Industry 4.0 and the End-user Equation
Vendor Proposition
What the End-user wants: The Missing Link in I4.0 Discussion
Industrial vendors have embraced the idea of Industrie 4.0 within their product framework, repositioning theirexisting solutions in line with this industrial paradigm. However, in the discussion on I4.0 and the Smart Factoryinitiative, there is a need to understand end-user perception. We, at F&S, firmly believe that the end-user factorwill decide the future of the I4.0 vision.
Global Economic
Woes
Global Economic
Woes
Uncertain Geopolitical Landscape
Uncertain Geopolitical Landscape
Volatility in Government
Policies
Volatility in Government
Policies
Macro ChallengesIndustrie 4.0: Key Stakeholders
State Policy
End-user Acceptance
Industry convergence
alters competitive landscape
Risk of Cyber Attacks
Fast-changing consumer trends
impacts enterprise stability
Competitive pressures driving
Ineffective innovation
Burgeoning CompetitionBurgeoning Competition
Increasing commodity
costs
Increasing commodity
costs
Growing Energy
Demand
Growing Energy
Demand
WoesWoes LandscapeLandscape PoliciesPolicies
Ma
rke
t
Fu
nct
ion
al
Ch
all
en
ge
s
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For Additional Information
Jithendranath Rabindranath
Research Analyst
Technical Insights, Frost & Sullivan
+91-44-6681-4134
Karthik Sundaram
Industry Analyst, Frost & Sullivan
Industrial Automation & Process Control (Europe)
+91-44-6681-4035
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Program Manager
Technical Insights, Frost & Sullivan
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