the value of a connected factory

Accelerate Growth and Improve Operations to Boost Visibility and Agility

The Value of a Conneted factory

Hazid MangroeCisco IOE SalesLead11 November 2015

2C97-735861-00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Waar gaan we het over hebben

Introductie Cisco

Trends

De waarde van IOE

Ecosystem van partners

Next Steps


Two Cables and a Desire to Connect

Cisco Confidential 4© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Intelligent Connections at the Heart of Cisco

Intelligent Connections

Internet ofEverything

Digitize the World

Connecting:• People• Process• Data• Things

ConnectivityDigitize Access to Information• Email• Web Browser• Search

ImmersiveExperiences

Digitize Interactions (Business & Social)

• Social• Mobility• Cloud• Video

NetworkedEconomy

Digitize Business Process

• E-commerce• Digital Supply Chain• Collaboration

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Shifting Manufacturing Trends AreTransforming the Industry

Gain Share with LoB in FY16!(Momentum: Bookings Growth = 2x TAM)

FY16-18 TAM: Products $64.5B, CAGR +5.2%Services $64.6B, CAGR +5.4% New IoT $6.2B, CAGR +16%

Digital Disruption Across the Value Chain

Bottom Line: Manufacturers Seek Speed and Simplicity, with New Innovations

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Supply Chain Demand Chain

Right-ShoringCapacity Rationalizations

Velocity, Variation, Volume …Faster Inventory Turns

New Product and Service Innovations, DigitalBusiness Models

Flexibility with Agility for Mass Customization


Markets Are Driving New Business Priorities

How canI better

manage myglobalsupplychain?

How can Ireduce

downtime?

I need toimproveproductquality

How do Iimproveworkforceproductivity?

How caninnovation drive profits?

I need to achievereal-time visibility

How can Iintroduce

new products faster?


It’s a New Way of Thinking about ManufacturingIDC FutureScape: Worldwide Manufacturing2015 Predictions:

“Our next phase of investment in the factory of the future includes a more transparent manufacturing model. … not only to advance our cost competitiveness, but to drive a different conversation with our customers and suppliers.” - Rob Goldiez, Scott Fetzer, a Berkshire Hathaway company

"If you went to bed last night as an industrial company, you're going to wake up today as a software and analytics company.”- Jeff Immelt, CEO, GE

“…the lines between hardware, software, and services are blurred or are disappearing”- Tim Cook, CEO, Apple


Digital Disruptors Are Changing the Game

But up to 40 percent of manufacturers may be damaged by digital disruptors

58 percent of CEOs see tech change as a top challenge

They can innovate fast, and raise the stakesCPG manufacturers among those with maximum potential for disruption

The winners will be those who can harness digital for today’snew priorities

Digital Vortex: How Digital Disruption Is Redefining Industries,” Global Center for Digital Business Transformation, June 2015 18th Annual PwC CEO Survey, 2015


Unleashing Dramatic Business Outcomes

Lower Downtime

Reduce Defects

Reduce Energy

Faster NPI

Maximize OEE

Lower Inventory

• Automation Network• Analytics and Big Data

• Wireless with LBS

• Wireless • Connected Machine• Automation Network• Energywise

• Automation Network• Plant Floor Virtualization

• Wireless• Collaboration

“Reduced labeling error rateby 16%”

“Achieving 20% energy reduction with real time visibility.”

“Shaved10-20% off NPI cycle time”

“Increased OEE mid 70s to high

80s”

“Reduced breaker

component tire loss by 20%.”

Multi-NationalBrewery

“Experienced $40 million downtime reduction”

Make Money Save Money


What If You Could Drive BetterBusiness Outcomes?

The Real Economic Value of Digital Manufacturing is Immense

Reduced Downtime

48%Unplanned

downtime down from 11% to 5.8%

Reduction in Defects

49%Defect rate down from 4.9% to 2.5%

New Product Introduction

23%New product

introduction cycle time reduced from 15 to 11 months

OEE Improvement

16%Average OEE improved

from 74% to 86%

Improved Inventory

35%Inventory

turns increasedfrom 14 to 19

Reduction in Energy Use

18%Annual energy cost down from $8.4M to $6.9M

Source: SCM World/Cisco “Smart Manufacturing and the Internet of Things 2015” survey of 418 Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.


But To Get There, You Need to Span the Entire Supply Chain

Off-Line

Connected Factory

Connected Enterprise

Supply Chain Orchestration

+ 16% OEE

+ 23% NPI

- 48% Downtime

- 49% Defects

- 35% Inventory

• Factory Network• Factory Security• Factory Wireless

• Analytics and Big Data• Virtualization and Compute• Connected Machines• Factory Collaboration• Location Services

• Supply Chain Collaboration (SXP)

• Design Collaboration


One is the Loneliest Number

Sports & Entertainment

Smart+Connected Communities

Connected Energy

ConnectedIndustries

ConnectedTransportation

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From Use Case to Business Value

Potential Use Cases(Long List)

ü In place today or already underway

X Not interesting…at least at this time (too complex;; value is not clear;; timing is not right;; etc.)

ü Interesting…worthy of further analysis

1

2

3

4

5

6

7

8

9

10

Prioritization (based on business value;; complexity to implement;; dependencies;; etc.)

1

2

4

6

Select 3-4 Use Cases for further study:ü Architecture & Designü Business Value Assessment

ü POCs (lab)…and potentially…ü Pilots / Wider Deployment

the value of a connected factory

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