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Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. Bosch Software Innovations 1 IoT in Production Dr. Verena Majuntke, Bosch Software Innovations

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Page 1: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

1

IoT in Production

Dr. Verena Majuntke, Bosch Software Innovations

Page 2: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Agenda

Bosch Software Innovations

The Internet of Things

Internet of Things in Production

Business Ecosystem in the Factory of the Future

Technical Implementation of Industry 4.0 Use Cases

2

Page 3: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Agenda

Bosch Software Innovations

The Internet of Things

Internet of Things in Production

Business Ecosystem in the Factory of the Future

Technical Implementation of Industry 4.0 Use Cases

3

Page 4: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

4

Bosch Software Innovations

Industry Mobility Energy Building &

City

Banking &

Insurance

Key Markets – Bosch Software Innovations

Software Suite: BPM, BRM, M2M

Professional Services: Planning, Implementation, Training and Operations

Locations: Berlin, Immenstaad, Stuttgart, Chicago, Singapore, Shanghai & Melbourne

Employees: ~600 worldwide

Page 5: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Agenda

Bosch Software Innovations

The Internet of Things

Internet of Things in Production

Business Ecosystem in the Factory of the Future

Technical Implementation of Industry 4.0 Use Cases

5

Page 6: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

The Internet of Things

Everyone & Everything connected

1 billion

2 billion

5 billion

6.593 billion devices in 2015

0.062 billion vehicles

0.019 billion in telemedicine

0.070 billion in security

0.120 billion smart meters

0.260 billion TVs

0.625 billion tablets

3.000 billion mobile phones

1.498 billion laptops

0.895 billion desktops

0.044 billion servers

3 billion

4 billion

Devices connected People connected

World population

People connected to the internet

1995 2005 2015

1995 2005 2015

5.7bn

0,7%

6.5bn

15%

7.3bn

75%

6

Page 7: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

7

Layer

IoTS Reference Model

Applications, solutions

and services for industry

sectors

Service Service Service Service Service Service

Internet of

Things

Internet of

Services

Application

Domain Life

City

Agile composition of business processes, rules and data

Linking business services and system functionality

Flexible composition of system functions and real world data

Industry Mobility Energy

Enterprise

Integration Devices, Systems and System of Systems

Trends are drivers

Applications, solutions

and services for industry

sectors

The Internet of Things

Page 8: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

8

The Internet of Things – A highly connected world

Potential by 2022 – 5 Key Markets

Source: Bosch Software Innovations, 2014

Page 9: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Agenda

Bosch Software Innovations

The Internet of Things

Internet of Things in Production

Business Ecosystem in the Factory of the Future

Technical Implementation of Industry 4.0 Use Cases

9

Page 10: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Industry 4.0: The next Industrial Revolution

10

End of

18th century

First

mechanical

loom

(1784)

Co

mp

lexit

y, P

rod

ucti

vit

y

Start of

20th century

Start

of 1970s

Since

2010

Assembly line of

Ford Model T,

Detroit

(1913)

First

programmable

logic controller (PLC),

Modicon 084

(1969)

Time

Cyber-physical

Systems (CPS)

Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0

Source: Forschungsunion, acatech, Abschlussbericht Arbeitskreis Industrie 4.0

Internet of Things in Production: Industry 4.0

Page 11: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Simultaneously

Reduce costs

Reduce time-to-market

Increase product

diversity and

customizatioin

How?

Operative excellence

Efficient use of

ressources

Productivity & flexibility

High speed

Goal

Competitive,

sustainable industrial

production

Efficient production and business processes that are adaptable to volatile environments

(data & information accessible without system discontinuities)

Customized products at the costs of mass-produced goods

Integrate business partners into complex value networks

Connect products and production with valuable services

11

Industry 4.0 – connected production

nach U. Sendler (Hrsg.), Industrie 4.0, Springer Vieweg 2013

Page 12: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Smart Factory

12

Internet of Things in Production: Industry 4.0

Customer

Integrated

Engineering

Resilient

Factory

Networked

Production

Predictive Maintenance Technology Marketplace

Up-Cycling

Adaptive

Logistics

New business models through the convergence of IT & production

Source: Forschungsunion Wirtschaft & Wissenschaft

Page 13: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

13

“In future factories a single

object determines its production

flow and not vice versa. This

allows unprecedented flexibility

and optimal use of resources.” Prof. Dr. Henning Kagermann

acatech – National Academy of Science and

Engineering

Co-Chair of the Industrie 4.0 Working Group

Former SAP CEO

Internet of Things in Production: Industry 4.0

Page 14: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

14

Provide secure internal and external connectivity

Collect, process and analyze data

Trigger business processes

Enable integration of business partners in

growing value networks (new business models)

Role of IT in Future Manufacturing

Internet of Things in Production: Industry 4.0

Page 15: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Agenda

Bosch Software Innovations

The Internet of Things

Internet of Things in Production

Business Ecosystem in the Factory of the Future

Technical Implementation of Industry 4.0 Use Cases

15

Page 16: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Supply and Demand Integration

Business Ecosystem in the Factory of the Future

‘Connected Product’

Supplier Customer Manufact. Distributor

‘Connected Ecosystem’

Supplier Customer Manufact. Distributor

‘Connected Plant’

Supplier Customer Manufact. Distributor

‘Connected Operations’

Supplier Customer Manufact. Distributor

Maximum Level of Connectivity

Demand chain connectivity

Supply chain Connectivity

16

Source: Demand chain management in manufacturing and services: Web-based integration, drivers and performance, Markham T. Frohlich , Roy Westbrook

Page 17: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Classical value chain today

17

Classical functions and role models

Mostly closed value chains with fixed and constant set of participants

Not linked to other value chain entities

Engineering

Production

Marketing &

Sales Logistics

Supplier Customer Logistics

Business Ecosystem in the Factory of the Future

Page 18: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Value Networks: Business Innovation

18

Chains become Networks: Data exchange, business process APIs

Business Ecosystem in the Factory of the Future

Page 19: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Predictive Maintenance

19

Predictive Maintenance Increase Overall Equipment Effectiveness (OEE)

Service Portal for customers and employees

Integration of machines and systems

Real-Time data acquisition of machine conditions

Tool supported data analysis for malfunction

prognosis

Planning of optimal maintenance effort

Reduction of repair, resources and energy costs

Increase of productivity by preventing

unplanned downtimes

Customer Benefit

Business Ecosystem in the Factory of the Future

Page 20: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

20

Remote Service / Predictive Maintenance – Example of a business model in the value network of the future

Source: Gassmann, Frankenberger, Csik, “The St. Gallen Business Model Navigator“, 2013

Revenue

Revenue through new

services

Increased margins by

offering services from

remote

How?

Collection of machine and

sensor data

Analysis of machine data to

predict malfunction

What?

Minimized downtime

Minimized resource consumption

Optimized maintenance services

Who?

Machine users

Business Ecosystem in the Factory of the Future

Page 21: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Agenda

Bosch Software Innovations

The Internet of Things

Internet of Things in Production

Business Ecosystem in the Factory of the Future

Technical Implementation of Industry 4.0 Use Cases

21

Page 22: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Software Innovations

Solution Architecture

22

CRM = Customer Relationship Management, ERP=Enterprise Resource Planning, M2M=Machine to Machine

Ne

two

rk p

roto

cols

Machine &

shop floor

level

Device

Management

Integration

Level

Applications

Business

Frontend

CRM ERP

Field

Service

Logistics

Software

Data Analysis

Big Data

- Data Analysis

- Data Processing

- Workflows & Business

Process Integration

- Device Abstraction

- Device Data

- Device Access

- Event Management

Remote Service Portal (UI Integration)

Adaptive

Testing

… Communication

Platform

Condition

Monitoring

Predictive

Maintenance Logistics

Object-based Data

Server-based

Close-to-machine

Technical Implementation of Industry 4.0 Use Cases

Page 23: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

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23

Production

Apps

Cycle time

monitoring

Notification -

analysis

Erosion-

analysis

Energy

Management

Business

Process

IT Systems

BPM BRM M2M

Powered by BOSCH SI

Technical Implementation of Industry 4.0 Use Cases

Factory Cloud

Page 24: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

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24

Backend – Systems

Communication Production line

IMD

„Realtime“ data and

information

(line and production)

Plan data

(line and production)

Employee

integration

Benefits

•Consistent data management and visualization

•Automatic triggering of processes based on

„realtime“ data (notification, escalation, problem

solving process)

•Basis for optimized, trackable and sustainable

problem solving processes

Industry 4.0

• Interactive Manufacturing Dashboard as

integration point:

human – machine – production processes

•Plant „intelligence“ made transparent

•Paperless plant

Technical Implementation of Industry 4.0 Use Cases

Interactive Manufacturing Dashboard

Page 25: IoT in Production - FHI, federatie van technologiebranches · Integration Devices, Systems and System of Systems Trends are drivers Applications, solutions ... Csik, “The St. Gallen

Public | INST/MKC | 07.2014 | © Bosch Software Innovations GmbH 2014. All rights reserved, also regarding any disposal,

exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

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25

Technical Implementation of Industry 4.0 Use Cases

Strategic Plan Service Portal –

Machine Manufacturer Services

New, direct sales channel to enlarge business with >50.000 end

customers (Business, Consulting and opportunities for follow-up

business), customer relations

Interactive interface customer machine to the machine manufacturer,

with the possibility to connect >10.000 machines per year (Basis are

components which are able to communicate, I4.0 approach)

Profitable data usage, combination of data for customers and the

machine manufacturer (service contracts, RCM, Energy, Safety,

Q-improvement, standardization)