the cognitive enterprise
TRANSCRIPT
The Cognitive Enterprise - Perspectives for the Aluminium Industry
Manish Chawla
Global Managing Director
Energy and Natural Resources Industries, IBM
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 1
Increase Customer Centricity
Leverage Sustainability Trends
Grow through Substitution
Portfolio and assets optimization
Strengthen
Core
Focus on
Profitability
Invest with
Future Focus
Disruptive environmental forces are driving seismic shifts within the
Aluminium Industry
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 2
“We're in the middle of three Climate Changes, not Just one. The world is moving from being an interconnected one, to being interdependent, and it is the most adaptive that survive” - Thomas Friedman, Business Commentator
Organizations
need adaptive
ecosystem-
coalitions
The Change The Imperatives
ENVIRONMENT
GLOBALIZATION TECHNOLOGY
The digital
experimentation
of the recent past
decade has set
the stage for
deeper
transformation at-
scale
CHAPTER 1 “Outside-in”
CHAPTER 2 “Inside-out”
Innovation Consumer-driven
Additive to core business
Enterprise-driven
Transformative of mission-critical
New ways of working
Incubated in labs, “digital islands”
Transformed enterprise-wide
Digital / exponential technologies
Inspire broad experimentation
Embed in the business, with focus and scale
Legacy process & infrastructure
Supportive of innovation – but rate-limiting
Modernized and responsive to future need
Data leverage 20% structured, visible, public
80% “behind the firewall”
Definition of done Pilots, POCs In production
Advantage Pure plays End-to-end integration
We call this holistically transformed organization …
the Cognitive Enterprise
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 4
Culture of agile innovation
Ecosystem of business platforms
Cognitive-enabled enterprise workflows
Exponential technologies
Fueled by data
Next-generation applications
Secure multicloud infrastructure
Industry platforms
Transaction platforms
Culture SkillsWays of working
Decision processes
Front-office processes
Back-office processes
Artificial Intelligence
Blockchain AutomationInternet of Things
5G
Licensed data
Proprietary data
Public data
Custom LegacyAPI-enabledapplications Cloud native Digital
Public Private On-premise Security
Key success
factors
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 5
2. Leverage the
incumbent advantage
in data
3. Architect your business
for change
1. Create platforms to
unleash Digital
Darwinism
6. Reinvent your workforce
to ignite talent
7. Win with trust
and security
5. Get agile, change fast
and build things
4. Redesign company
workflows around AI
Tradelens
Problem: Inconsistent information
across organizational boundaries
and “blind spots” throughout the
supply chain hinder the efficient
flow of goods.
Solution: Use IBM Blockchain to
create a Global Logistics Platform
that provides instant, secure access
to end-to-end supply chain
information; single source of the
truth.
+15% total trade volume
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation
Create platforms to unleash Digital Darwinism
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– Strategic clarity
– Ecosystem expansion potential
– Accelerative approaches
CEMEX built a platform
to provide superior
customer experience
IBM helped CEMEX revolutionize
the way they conduct commerce
with their consumers. A digital
platform enabled CEMEX to
connect with large contractors
and individual consumers on a
personal level, delivering the best
product to an entire market of
customers.
6
Leverage the incumbent advantage in data
2
– Curated for platform purpose
– Bias avoidance
– Data ownership
JFE Steel Corp
Challenge: To keep production
schedules moving and workers
safe, detecting and fixing
equipment failures is key.
Solution: AI capabilities mining
vast pools of unstructured
Japanese text creates safer,
more efficient plants, helping
technicians diagnose, fix and
prevent failures
Substantial Reduction in Mean
Time to Repair
7 Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation
Yara
Challenge: To feed a growing
global population sustainably,
farmers must increase food
production on existing farmland
to avoid deforestation
Solution: Yara’s vast trove of data
unlocked with IBM AI and
analytics to build a digital
farming platform, providing
holistic digital services and
instant agronomic advice
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Architect your business for change
3
– Target operating model
– Enabling architectures
– Open to ecosystem
Sandvik Mining
Built a platform to enable Sandvik
to provide high value aftermarket
services to their clients.
The solution results in an increase
of about 10% in productivity,
increase field workforce efficiency
& reduce repair costs, improve
customer satisfaction & increase
retention while increasing
equipment lifecycle revenue for
Sandvik.
10% Productivity Increase in
Mining Operations 8 Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation
9
Redesign company workflows around AI
4
– Humanized customer-facing workflows
– Self-learning operational workflows
– Open ecosystem workflows
Gerdau
Problem: Specialty steels require analysis of
hundreds of variables and many thousands
of previous materials. This learning process is
highly dependent on the level of experience
of metallurgists
Solution: Leveraging AI to Process Complex
Orders, IBMRFP Advisor enables Gerdau to
capture expertise and reduce the total time
of response
↓70% in Time Spent on RFP Process
Transform Products –
Cognitive Material Discovery
Expediting the development of
new products / alloys
Amplified R&D capabilities to
expedite product
development, creating new
products to better compete in
the marketplace.
Ability to investigate new ideas
and products possibilities
faster
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Get agile, change fast and build things
5
– Strategic agility
– Operational flow
– DevOps for business
Co-create, co-locate,
co-innovate with
experts at scale
THINK
Enterprise
Design Thinking
THRIVE
Talent & Change
DevOps
Agile &
Distributed Agile
TRANSFORM
Lower the risk of
building strategic
business platforms
Evolve enterprise
culture over the
journey
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 10
Reinvent your workforce to ignite talent
6
– New skills & continuous learning
– AI-enabled skills development
– Agile teaming
Customer
experience +10 pts
while driving cost
savings and
establishing a
model for ethical AI
adoption
75% Reduction in searching time across multiple data sources in
exploration
Skill Transfer using Watson Woodside Engineers have the knowledge of 1000
Accelerates expertise by giving staff unlimited access to 30 years
of tribal knowledge
IBM developed an easily accessible body of knowledge that all
engineers can access, effectively placing the combined history
and knowledge of all engineers into the hands of every single
engineer.
IBM Watson
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Win with trust and security
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– Bias-free automation and algorithms
– Protected workflows and data
– Expertise with integrity and values
IBM and Industry Partners
Working together as part of a larger consortium across the
mining and metals industry leveraging blockchain
technology to ensure a secure and trusted environment
for business transactions .
12 Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation
Aluminium Industry has significant digital opportunities to generate new avenues of growth as
well as drive efficiency
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 13
Bauxite Mining Alumina Refining Primary Aluminum
(Smelting) Casting
Rolling, Extrusion
& Component
Manufacture
Market: Final
Consumption
Secondary Aluminum Recycle
Portfolio optimizer, dynamic value
based pricing
Cognitive plant advisor
Cognitive equipment advisor
Cognitive Ore Body Discovery
Circular Economy and Responsible Sourcing
Blockchain for supply-chain operations
Cognitive material design
Cognitive marketing and lead
generation
Digital Order to Cash and data
monetization platform
Watson Blockchain IoT Cloud
Disruption is a catalyst for provocative business opportunities and Digital ReinventionTM
provides pathways to drive growth and profitability
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 14
Digitization Improve efficiency by applying technology to individual
resources or specific domain processes
Example: Digitizing manual processes
Digital Transformation Digitize whole aspects of a business producing
customer experiences that support what individuals
need or want
Example: AI-based plant maintenance
Digital Reinvention Incorporate digital technologies to create results via
innovative platforms, product strategies, and consumer
experiences
Example: Create new markets through platform based
ecosystems
“Doing Things Smarter”
“Doing Smarter Things”
“Doing New Things”
Incremental, purposeful innovation and sustainable culture change
Bring together the right
people from IBM, our
clients, and ecosystem
A platform for
data &
technology
With
enterprise
scale ways
of working Structured network of global and
local capabilities (Industry, Domain)
Program 4
MVP 5
Program 2
MVP 2
MVP 4
CoE 1
BUSINESS PLATFORMS BUILT OVER TIME: BRICK BY BRICK
DATA FIRST, CUSTOMER LED, GOVERNANCE & TRANSPARENCY
POC 1
Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 15
Cognitive
Enterprise:
CEMEX
17 Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation
2. Leverage the incumbent
advantage in data
Executing data curation strategy,
driven by analytics CoE in
connection with lines of
business
3. Architect your business for
change
Legacy systems re-architected
to cloud with open standards
and API-enabled microservices
Ecosystem-facing “Ventures”
function to engage startups,
partners and industry bodies
1. Create platforms to unleash
Digital Darwinism
CEMEXGo: customer-facing
platform for order placement,
shipment tracking, invoicing and
payments
Expanding to adjacent platform
plays in last mile logistics and
scheduling efficiency
6. Reinvent your workforce to
ignite talent
Top executive leadership trained
on digital reinvention, agile
practices and new technologies
7. Win with trust
and security
Pricing consistency and
transparency enabled by
CEMEXGo
Enterprise security standards
enhanced and unified to support
new global platforms
5. Get agile, change fast and
build things
Opened Monterrey Hub to
house and govern innovation
efforts by co-located teams
IT skills fully transformed to
integrate Design Thinking, Agile
and DevOps
4. Redesign company
workflows around AI
Core business processes
re-engineered to bring
digitization and global
consistency to Finance,
Procurement and HR
2018
Implementation of
DevOps and Agile in I.T.
Agile for
Executives
July 2018
The Digital Hub is
established
Industry Solution
Business Model Strategy C-Suite Study
Digital Customer
Insights
Digital Customer
Insights Emerging Tech Education &
Use Case Development
E-commerce Strategy &
Enablement
T R A N S F O R M I N G
T O G E T H E R
E X E C U T I N G
T O G E T H E R
B U I L D I N G T O G E T H E R
Digital Freight
Management Analytics CoE
Digital Marketing
Strategy
2019
Voice of the
Customer
Cemex Cognitive Enterprise Roadmap: executing and transforming together
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