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Bringing IT and OT together with theInternet of Things?Martin Dube
Managing Director IoT Solutions Sales APJ-C
27th May 2016
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Are you a Disruptor?
Or are you being Disrupted?
40%of the top incumbents in the
industries will be displaced in
5 years
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Point-of-Sale HotelTaxi
Bookstore MusicPrint Advertising CarBookstore MusicPrint Advertising Car
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And some more: Digital Technologies and Business Models Are Disrupting and Redefining Industries
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Where Did We Start?
• Offers: Products to customer centric use cases
• People profile: IT sales to LOB solution sales
• Systems: BU centric to solution centric ie Cloud, SW, IOT
Cisco’s IoT Journey
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The New Industrial Revolution
18th Century
Steam
20th Century
Mass Production70’s
Robots
Today
Digitization
Technology
Progress
Smart
Devices
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It’s a New Way of Thinking about Manufacturing
IDC FutureScape: Worldwide Manufacturing 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
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11
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Changing Trends Are Driving Changing Priorities
How canI better
manage my
globalsupplychain?
How can I
reduce downtime?
I need toimprove
productquality
How do Iimprove
workforceproductivity?
How can
innovation drive
profits?
I need to achieve
real-time visibility
How can Iintroduce
new products faster?
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Efficient
Secure
Connected
Flexible
Imagine the Possibilities…
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Immense Business Benefits Expected
What business benefits do you expect to derive from Digital Manufacturing?
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 increased
from 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” survey of 418 Manufacturing Business Line
Executives and Plant Managers across 17 vertical industries.
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Unleashing Digital Manufacturing Outcomes
Lower
Downtime
Reduce
Defects
Reduce
Energy
Faster
NPI
Maximize
OEE
Lower
Inventory
Reduce
Risk
• Factory
Network
• Analytics and
Big Data
• Factory
Wireless with
LBS
• Factory
Wireless
• Connected
Machine
• Factory
Network
• Energywise
• Factory
Network
• Plant Floor
Virtualization
• Factory
Wireless
• Factory
Collaboration
• Factory
Security
“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-National
Brewery
“$40 million downtime
reduction for customer”
Make Money Save MoneyStay out of
Trouble
“Significantly reduced factory vulnerabilities.”
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Where Are You Today? Where in 2020?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Off-lineFactory
ConnectedEnterprise
ConnectedSupply Chain
Orchestration
Today 2020Source: SCM World/Cisco “Smart Manufacturing and the Internet of Things ” survey of 418
Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.
© 2015 Cisco and/or its affiliates. All rights reserved.
Off-LineFactory Network
Factory Security
Factory Wireless
Connected
FactoryAnalytics & Big Data
Virtualization & Compute
Connected Machines
Factory Collaboration
Location Services
Connected
Enterprise
Supply Chain Collaboration
(SXP)
Design Collaboration
Supply Chain
Orchestration
Digital Manufacturing Journey
+ 16% OEE
- 35% Inventory
+ 23% NPI
- 49% Defects
- 48% Downtime
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Digital Manufacturing Solutions
Analytics & Big DataSupply Chain
Collaboration
Connected Machines & Edge Compute
Factory Security
Factory Network
Factory Wireless
Co
nn
ecte
d F
acto
ry
Infr
astr
uctu
reC
om
pu
teA
pps
Factory Virtualization Data Center and Cloud
Factory
Collaboration
Digital Manufacturing Solutions
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Connected Factory
Wireless
Connected Factory
Network
Connected Factory
Security
Ethernet
IoT-Readiness in Today’s Typical Factory
Managed Switches
Connected IT/OT Network
Management in OT Tools
SDN for Plug & Play Factory
Factory Wi-Fi (ad Hoc)
Unified Factory-Wide Wi-Fi
Wi-Fi Management Tools
LBS-Ready WiFi
Hyper Location
Industrial DMZ
Network Access Control
Central Identity and Policy
Secure Remote Access
Industrial Protocol DPI
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
Where are You?
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Converged Network Design (CPwE)
Gbps Link for Failover Detection
Firewall(Active)
Firewall(Standby)
FactoryTalk Application Servers
CiscoASA 5500
CiscoCatalyst Switch
Network Services
Cisco Catalyst6500/4500
Cisco Cat. 3750Switch Stack
Patch ManagementTerminal ServicesApplication Mirror
AV Server
Cell/Area #1(Redundant Star Topology)
Drive
Controller
HMI Distributed I/O
Controller
DriveDrive
HMI
Distributed I/O
HMI
Cell/Area #2(Ring Topology)
Cell/Area #3(Linear Topology)
Layer 2 Access Switch
Controller
Cell/Area ZoneLevels 0–2Layer 2 Access
Manufacturing ZoneLevel 3Distribution and Core
Demilitarized Zone(DMZ) Firewalls
Enterprise NetworkLevels 4–5
Web Apps DNS FTP
Internet
© 2015 Cisco and/or its affiliates. All rights reserved.
Harley Davidson
Revolutionizing its
Manufacturing Approach
Manufacturing
Challenge
• Respond to economic downturn by reducing costs and increasing operational efficiencies
Solution
• Traffic flow and dwell time analytics to identify valued locations, underperforming stores
• Historical location-based analytics to improve effectiveness of marketing events
Results
Manufacturing agility supports ongoing expansion of product lines and continued market success
Contributed to overall worker productivity increases—2.4% per year
ChallengeLong Tire Assembly Search Times by
Operators Increased Cycle Times, Decreased Labor Optimization, and Noncompliance with Production Schedules. High Scrap Rate Associated with Lost Carriers.
SolutionImplement LBS Solution to Track All Carriers in Real-time Using T2 Tags and Cisco Unified Wi-Fi network
Allow Material Handlers/Truckers and Managers to Search for Component by ID, Tread Number, Material Code (FIFO))
Business OutcomesContinuous Real-time Visibility Across Entire
Plant
20% Reduction of Breaker Component
Tire Loss
Increase in tire machine utilization ensuring increased production and overall equipment efficiency (OEE)
Factory Wireless at Continental Tire
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Cisco Confidential
© 2015 Cisco and/or its affiliates. All rights reserved.
Is Your IoT Strategy Ready to enable Digital capabilities for your customers?
Can you design
architectures to
support the
growing number of
devices in different
environments?
Can you provide the
services and secure
connectivity for IT &
OT convergence
and support
standard protocols
for interoperability
and scale?
Can you efficiently
operate, analyze
and manage data
from the edge to the
cloud?
Can you provide
the infrastructure
and tools necessary
to combine IoT
analytics with
business analytics?
Can you assist in
the creation of
highly sophisticated
applications needs
of your customers?
Can you enable
convergence of OT
and IT networks to
create and implement
a consistent policy for
your customers?
Connectivity Security Fog Computing Data Analytics Management &
AutomationApplication Enablement
Thank you.