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MAKING A MORE
INTELLIGENT,
INTERCONNECTED AND
COGNITIVE INDUSTRYINDUSTRY 4.0
Juan Ramón Gutiérrez Villar
Industry 4.0 Lead, SPGI
AGENDA
CxO Survey – Industrial Sector
Industry 4.0: IBM PoV
IoT in industries: examples
Beyond 4th revolution…
©2015 IBM Corporation3
“There’s no one technology that matters
most. It’s connecting the dots between
them all that’s important.”Mike Mancuso, Executive Vice President & CEO, Philips Healthcare, United States
“There’s no one technology that matters
most. It’s connecting the dots between
them all that’s important.”Mike Mancuso, Executive Vice President & CEO, Philips Healthcare, United States
©2015 IBM Corporation4
of CxOs in the Industrial Products
industry plan to expand their
partner network
©2015 IBM Corporation5
OF GLOBAL CXOS ARE EXPERIMENTING WITH DIFFERENT
BUSINESS MODELS OR THINKING OF DOING SO
OF GLOBAL CXOS ARE EXPERIMENTING WITH DIFFERENT
BUSINESS MODELS OR THINKING OF DOING SO
©2015 IBM Corporation6
“The biggest threat is new competitors
that aren’t yet classified as competitors.”Piotr Ruszowski, CMO, Mondial Assistance, Poland
“The biggest threat is new competitors
that aren’t yet classified as competitors.”Piotr Ruszowski, CMO, Mondial Assistance, Poland
©2015 IBM Corporation 14 June 20166
NOBODY SAID IT WOULD BE EASY: CXOS FACE MANY
OBSTACLES WHEN DEPLOYING NEW BUSINESS MODELS
NOBODY SAID IT WOULD BE EASY: CXOS FACE MANY
OBSTACLES WHEN DEPLOYING NEW BUSINESS MODELS
HOW TO CREATE A PANORAMIC PERSPECTIVEHOW TO CREATE A PANORAMIC PERSPECTIVE
Form your own futures squad and leverage existing
“things”
Take an ecocentric view of the world
Cultivate your cognitive capabilities
AGENDA
CxO Survey – Industrial Sector
Industry 4.0: IBM PoV
IoT in industries
Beyond 4th revolution…
THE BIRTH OF INDUSTRY 4.0?
Ind 4.0 - A German hi-tech
strategy project in 2013
Similar goals to the Smart Mfg
Leadership Coalition (US)
A collective term for technologies & concepts of value chain organization
A term invented by Kevin
Ashton in 1999
Cyber-physical
systems monitoring physical
processes, and making
decentralized decisions
Design based on interoperability,
virtualization, decentralization, real-
time capability, service orientation,
and modularity.
Enables
Network of physical objects or
"things“ embedded with electronics,
software, sensors and connectivity to
exchange data and other business
processes
and SOA
SINCE 1999…MANY INDUSTRY FLAVORS & TASTES
11
FROM “ALIKE” TO “ONE-BY-ONE” MOVING TO “JUST FOR ME”
In the beginning,
we just made them all alike(efficient, but it didn’t meet all customers’ needs)
…or we built them one-by-one
for each new customer (it met the needs, but was very expensive)
Now customers demand
increasingly specialized and
customized products and costs
are going through the roof!
Source: http://minicoopergraphics.com/
12
Mass Customization
From one car for all to a unique car for each of us!
Sources: Acatech: Recommendations for implementing the strategic initiative Industrie 4.0, April 2013;Gartner: Industrie 4.0- The Ten Things the CIO Needs to Know; Deutsche Bank
Research: “Upgrading of Germany’s industrial capabilities on the horizon “, April 2014
Autonomous
Systems
Internet of
Services
Analytics
& Cognitive
Flexible
Mfg
Internet of
Things
+
Internet of
People Industry 4.0
�Ability to connect and manage
devices
�Near real-time data collection
� Insights of what is happening
�New business models
� Flexible machines
� 3D printing
�Machine to machine
�New standards and
protocols
� The API economy
�Vertical / horizontal integration across value
chains
�New delivery channels and business
models
�Embedded in equipment, products and
services
�Predict what may happen
�Prescribe actions for best outcomes
�Self learning
�Communicate in natural language
�Smart and networked products
�Ability to communicate thru the Internet
�Self diagnose / self awareness
CAPABILITIES REQUIRED TO ENABLE THE 4TH INDUSTRIAL
REVOLUTION
13
INDUSTRY CHALLENGES; OR NOT THAT SO...
�Maturity level of required technologies
� The technology base to build large-scale safety-critical CPS-based solutions correctly, affordably, flexibly, and on schedule is not there yet. YES IT IS!!!
� Difficult to quantify business benefits for Industry 4.0
� New solutions require significant changes & lack clear cost/benefit case. PARTNERHIP is the key.
� Industry standards
� Establish: Define and agree upon / Vendor & Government Support. E.g. MQTT
� New employee skills & qualifications required
� A digitized enterprise with new processes & business models
�Company cultures may inhibit collaboration and adoption of new technology
14
IBM INDUSTRY 4.0 APPROACH
IBM Watson IoT and Industry 4.0
On December 2015 IBM opens its Global
Site for Watson IoT in Munich, to extend
its ecosystem, capabilities and offering
around Watson
This is one of the biggest investments
IBM has carried out in Europe in the last
two decades. This will allow:
• Building the first innovation center in
IoT and Watson in Europe.
• Increase its relationship with clients
and partners.
• Build new solutions in Cognitive IoT.
• Develop industry specific solutions.
+ 1000 experts in Múnich for IoT,
Cognitive and industry 4.0
de datos – integración, automatización y análisis
10/06/2016
Composable
smart mfg solutions
(aka CPS systems)
Edge/Gateway
Internet of Services
Existing Systems
Public Shared
Services
Internet of (Operations) Things
IOT, IOS, & IOP USING THE IOT PLATFORM (WATSON IBM PLATFORM)
Internet of People
connecting
machines, people
and services
to achieve levels of
productivity and
specialization
Application
Mgt Svcs ManagedAPIs
Registration
& Messaging
Partners Customers
Developers
Employees
More People
Real-timeAnalytics
AnalyticsData Storage
ServicesCloud Operating
Environment
Cognitive
Services
Cyber Security
CPS Platform Support
Composition
& Configuration
Web/Mobile
UI Support
EILM
Predictive
Maintenance
Operations
AnalyticsEmployee
Safety
Predictive
Quality
Service
Advisor
(Deploy and run on premise (factory or enterprise), on the cloud)
Example CPS Solutions
17
enabling
innovation and
differentiation.
EILM
Structured and non-
structured Information
from Operations devices
systems combined with a
Watson “corpus” takes
knowledge beyond
human capabilities to
create advisors for
operators and
technicians. Edge/Gateway
Internet of (Operations) Things
ManagedAPIs
Registration & Messaging
Partners
Developers
Employees
More People
Real-timeAnalytics
Analytics Data StorageServices
Cloud Operating
Environment
Cognitive Services
Cyber Security
Composition
& Configuration
COGNITIVE COMPUTING HELPS TO ACCELERATE INDUSTRY 4.0
✓
✓Application
Mgt Svcs
Web/Mobile
UI Support
CPS Platform Support
Predictive
Maintenance
Operations
Analytics
Employee
Safety
Example CPS Solutions
Predictive
Quality
Service
Advisor
✓
18
Internet of PeopleInternet of Services
Existing Systems
Public Shared
Services
Tabulating
Systems Era
Programmable
Systems Era
Cognitive
Systems Era
1900 1950 2011
WATSON IS USHERING IN A NEW ERA IN INDUSTRY
19© 2015 IBM
WHY WATSON NOW IN INDUSTRY?
80%of the world’s data today is unstructured
90% of the world’s data was created in the last two years
20%is the amount of data traditional systems leverage
20© 2015 IBM
COMPANIES ARE DRIVING TOWARD PREDICTIVE INSIGHT AND BEYOND
DescriptiveGet in touch with reality, a single
source of the truth, visibility
PredictiveUnderstand the most likely future
scenario, and its business implications
PrescriptiveCollaborate for maximum business
value, informed by advanced analytics
CognitiveDeeply analytical computing systems
that learn & interact naturally with people
What happened?
What will happen?
What should we do about it?
How do we optimize a dynamic,
Big Data environment?
Volume (data at rest)
Velocity (data in motion)
Variety (many forms of data)
Veracity (data in doubt)
Watson Analytics
ASK DISCOVEREXPLORE DECIDE VISUALIZE
Ask questions for
greater insight
Natural language
dialogue
Natural language
dialogue
Find external
information in real
time
Monitor social
sentiment
Find rationale for
given responses
Prompt for inputs
to yield improved
responses
Ingest and analyze
domain sources,
info models
Evidence-based
decisions with
greater confidence
Consolidate and
visualize
information
across enterprise
applications and
big data assets
Watson enables five classes of cognitive services working across structured and
unstructured data with Natural Language Processing and Machine Learning
WATSON’S 5 CORE CAPABILITIES
https://www.youtube.com/watch?v=_Xcmh1LQB9I
https://www.youtube.com/watch?v=M2RXDI3QYNU
Watson: How it Works?
Cognitive robot
BLUEMIX: IBM’S CLOUD PLATFORM
Bluemix service categories
Developer experience
• Rapidly deploy and scale
applications in any language.
• Compose applications quickly
with useful APIs and services and
avoid tedious backend config.
• Realize fast time-to-value with
simplicity, flexibility and clear
documentation.
Enterprise capability
• Securely integrate with existing
on-prem data and systems.
• Choose from flexible
deployment models.
• Manage the full application
lifecycle with DevOps.
• Develop and deploy on a
platform built on a foundation of
open technology.
Built on a foundation of open technology.
Build, run, scale, manage, integrate & secure applications in the cloud
• DevOps
• Big Data
• Mobile
• Watson
• Business Analytics
• Database
• Web and application
• Security
• Internet of Things
• Cloud Integration
• API management &
Integration
23
Security
Analytics
Commerce
Watson
Healthcare
A WIDE RANGE OF SERVICES FROM IBM AND THIRD
PARTIES
Preparado para la Empresa
Contenido Diferenciado
Transformación Cultural
El inicio de una nueva forma de trabajo
EmpresasStartups
Productividad Instantánea
Comience poco a poco, crecimiento sin límites
Sofisticado, servicios de fácil uso
Marketplace
¿QUÉ ESTÁN HACIENDO LOS CLIENTES CON BLUEMIX
INDUSTRY 4.0 EXAMPLES
© 2015 IBM 27 Baosteel & IBM Confidential
CPS
Production Optimization
Smarter Operations
Orders
� Customer
� Order quantity,
price, due date
� Production routing
CPS
Equipment Health
CPS
Worker Safety
• Sub-assembly / component lifetime wear indicators
• Leading failure indicators• Engine alerts• Overload / over speed alerts• Permit to work• Use of safety equipment• Unsafe condition of equipment
• Fatigue• Alertness• Fall / Injury• Production real-time status• Equipment utilization• Best time to perform maintenance
• Worker productivity
INSIGHTS
Production data
� Production status
� Inventory (WIP, FG..)
� Equipment status
� Workstation status, etc.
Worker equipped
with wearables
Example: Equipment Health, Worker Safety, & Production Optimization
© 2015 IBM 28 Baosteel & IBM Confidential
• Smart Operations of Industry 4.0, Cyber-Physical Systems monitor physical processes and make
decentralized decisions.
• Over the Internet of Things, Cyber-Physical Systems communicate and cooperate with each other
and humans in real time.
• Via the Internet of Services, both internal and cross-organizational services are offered and
utilized by participants of the value chain.Wikipedia definition
EXAMPLE: MINING OPERATIONS
© 2015 IBM 29 Baosteel & IBM Confidential
Internet of Services: services providers
(maintenance services, condition
monitoring services) that are
performed by specialized crews within
the company or by external parties.
These services guarantee the continuity
of the operations over time and in line
with the safety standards
Internet of Things: it provides the
medium to connect the cyber physical
systems to the real world and also to
enable the cyber physical systems to
communicate to each other
autonomously to execute other tasks of
high value
EXAMPLE: MINING OPERATIONS
30
EXAMPLE: SMART FACTORY
31
Data
Historian
Integration Layer1 2
3Real-time Dashboard Predictive Analytics
Transparency and Visualization in real timeEXAMPLE: SMART FACTORY
Analyze manufacturing equipment data to identify impending equipment
detiorartion or failure, impacting production line cycle time
Monitor health
and condition of
mfg equipment
Predict mfg
equipment
failures &
detiorartion prior
to outages
Benefits
� Reduce downtime and service outages for production line
� Forecast failures/deterioration for equipment with actions
� Optimize inventory and spare parts planning
� Reduce operational, maintenance and service costs
Benefits
� Reduce downtime and service outages for production line
� Forecast failures/deterioration for equipment with actions
� Optimize inventory and spare parts planning
� Reduce operational, maintenance and service costs
Forecast repair
and replacement
requirements
Integrate with
asset
management
and alert systems
to act on
impending failure
PRE-INTEGRATED INDUSTRY SOLUTION –
IBM ANALYTICS FOR MANUFACTURING EQUIPMENT
MES Equipment
Data
Maintenanc
e Data
Master
Data
Financial
Data
32
IBM ELECTRONICS INDUSTRY SEGMENTS
3
3
Semiconductor Suppliers
& Mfg ServicesPower & Automation
Equipment
Office Products &
Computers
Network Equipment
Providers
IoT can help semiconductor companies optimize Fab processes & equipment usage, delivering fully secure factory visibility, equipment automation, pro-active maintenance, and energy management.
Manufacturers can take advantage of secure IoT intelligent devices and systems to make better business decisions around asset utilization and performance, while optimizing equipment interoperability and service efficiency.
IoT will connect all devices in the office, delivering new and secure business value with personalized end-user services, energy efficiencies, and improved business processes such as field service optimization.
To address the challenges of price competition, cost containment, and data explosion, Network Equipment Providers (NEPs) need to have deep IoT capabilities in service after sales (including predictive maintenance), network traffic optimization, and software development.
Medical Devices
As chronic diseases and patient data continue to escalate, IoT has a tremendous role to play to open up new medical markets, new segments for existing product categories, and help deliver high quality services with exceptional efficiency.
Consumer Electronics
& Appliances
IoT is hugely effective in capturing device data, applying analytics to understand the data, and using these newfound insights to optimize operations, extend product functionality and to securelydeliver innovative end-user experiences,
DRIVER INSIGHTS
IoT for Automotive
34
� Driving behavior (acceleration, turning, idling, �)
� Driving context (speed pattern, weather, ��)
� Origin & destination and trajectory patterns
� Personal driver information and record
Features
� Personalized Navigation
� Driver Health Monitoring
� Location-based Couponing and Advertisement
� Concierge Services
� Geo-Fencing & Stolen Vehicle Tracking
� Driver Behaviour Analysis (for Fleets)
� PAYD Insurance
� Usage-based Tolls
� Car-Sharing and Ride-Sharing
Enables Use Cases
�Additional Revenues & New
Business Model � Brand & Product Differentation � Customer Relationship Management
VEHICLE INSIGHTS
� Vehicle Driving & Incident History
� Vehicle Diagnostics / Health
� Failure Prediction & Alerts
� Vehicle Usage context (weather, road type)
� Trigger Additional Data Collection
� Location & Environment Awareness (Vehicle History)
Features
� Advanced Driver Assistant Systems
� Predictive Maintenance and Quality
� Dynamic Service Scheduling
� Vehicle Record and Warranty Management
� PAYD Leasing
� Remote Vehicle Status and Control
� Over-the-Air Updates & Vehicle Lifecycle Management
Enables Use Cases
35�Additional Revenues & New
Business Model �Internal Cost Savings &
Product Improvement � Customer Relationship Management
IoT for Automotive
INFRASTRUCTURE INSIGHTS
� Map Event Management (patterns in spatial map & road network context)
� Event Pattern Analysis (accumulation of corresponding events)
� Traffic Pattern Analysis
� 3rd Party Integration (e.g. weather, traffic lights, public events, roadworks)
Features
� Dynamic Traffic Information and Traffic Prediction
� Road Condition Warning
� Map Learning (e.g. new streets, detours, hazardous areas)
� Environmental Awareness (Air Pollution Exposure)
� Intermodal Navigation & Transportation
� Green Wave Assist
� Parking Finder
� Events / PoI Integration
� EV Charging Management
Enables Use Cases
36�Additional Revenues & New
Business Model � Brand & Product Differentiation � Data Usage for internal and 3rd party
IoT for Automotive
Open development platform for smarter cities and buildings
KONE joins forces with IBM for IoT cloud services and
advanced analytics technologies
Source: http://www.kone.com/en/press
KONE agreement with IBM will transform KONE's operations and technology
capabilities around the world, using IBM's technology and experience to
harness the potential of digitalization and the Internet of Things (IoT).
store equipment data,
build applications
develop new solutions
Elevators
Escalators,
Doors
Turnstiles
new services
new experiences
Business Partners
1MWatson
Develop
ment
Cloud
cities
and
buildings
Pushing strategy to the excellence level and beyond
Our agreement with IBM is exciting and it is an important
stepping stone to deliver the best People Flow experience
Henrik Ehrnrooth, President & CEO of KONE Corporation
We operate in a connected world and by working with IBM,
new solutions like improved remote diagnostics and
predictability means we will deliver better services for our
customers and great experiences for the people who use our
equipment.
Henrik Ehrnrooth, President & CEO of KONE Corporation
GETTING STARTED…
Getting Started – Industry 4.0 (Example)
40
THANK YOU
Your Feedback is Important!
Juan Ramón Gutiérrez Villar
Cognitive IoT, Consultative Sales (Industrial Sector)
Industry 4.0 Lead, SPGI
+34 635 520 267