Winning with Tech

Harnessing Technology and Innovation to Change the Way You Approach Your MarketsAugust 16th

Richard SkinnerPartner, Strategy, PwC Singapore

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Industrial revolutions have been the key drivers for GDP and productivity growth…

Mechanical production (steam)

Mass production(electricity)

Process automation(computer)

?

End of 18th

centuryEnd of 19th

centuryEnd of 20th

century Now

1.0

2.0

3.0

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However, GDP growth rate has been declining for the past 50 years…

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…due to the lack of productivity growth

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Digitization brings new industrial revolution – Industrial 4.0

Mechanical production (steam)

Mass production(electricity)

Process automation(computer)

Digitization of

manufacturing(Advanced technology)

End of 18th

centuryEnd of 19th

centuryEnd of 20th

century Now

Industrial 4.0 brings “Digitization of Manufacturing”

1.0

2.0

3.0

4.0

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Traditional model of manufacturing faces challenges with rising labor costs and rapidly changing market needs

Offshore

Consumer Market

Large factory in countries with cheap

labor costs

Large

One Product

Made to stock

Traditional model of manufacturing

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With advanced technologies, Industry 4.0 will bring about a new paradigm of manufacturing

Consumer Market

Factory

Close to demand

Small

Multi Product

Customizable

New model of manufacturing

Factory

Factory

FactoryFactory

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Here are 5 new technologies that will fundamentally change how we do business

IoTConnected devices

AIAutonomous Machine

3D printingDigital-to-physical

conversion

Advanced roboticsAutomation of complex

processes

AR and wearablesMobile and virtual

reality

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IoT - Connected devices

• Connected robots: assess everything from conditions in a robot’s environment to its usage program path, travel distance, motor torque profile

• “Repair before failure”

Cisco has collaborated with FANUC and Rockwell Automation to create a predictive maintenance solution deployed with hundreds of robots at General Motors’ factories to prevent downtime

“Unplanned downtime can cost as much as $20,000 potential profit loss per minute, and $2 million for a single incident. Manufacturers expects a 48% reduction in unplanned downtime from these kinds of connected machines solutions”

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AR and wearables - Mobile and virtual reality

Ford revolutionizes vehicle design process by virtually simulating the assembly line

• This program reduces employee injury rate by 70% and ergonomic issues have been lowered by 90%.

• Outfitting employees with immersive graphic headset to create a virtual environment to simulate the assembly of models

• Engineers can target issues and find solutions before the production process starts

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3D printing - Digital-to-physical conversion

• 3D printing allows the creation of smaller batches of shoes. These could be small runs tailored for particular events or location, or they could even be expensive one-offs —molded to suit an individual’s foot-shape or gait

• The mid-sole of the shoe is created using a process known as Continuous Liquid Interface Production

• 100,000 pairs of Futurecraft sneakers will be made by the end of 2018

Adidas reveals the first 3D-printed shoe it’ll mass-produce

Futurecraft sneakers

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Advanced Robotics - Automation of complex processes

• Significant saving in labor costs• High tractability of product defects• Less downtime

• Production quality is at 99.99885% and a series of test stations detect the few defects that occur

• Production is largely automated with 75% of the value chain on their own handled by machines

Siemens is building a self-organizing factory wherein Robots are operating complex tasks

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AI - Autonomous Machine

Ford’s robots using "deep learning" capabilities through AI to figure out their tasks while on the job instead of being programmed beforehand

• Cost reduction

• Quick to set up and operate

• Minimal programming

• Minimum space required to work safely around people

• “Deep learning" capabilities through AI

• Co-bots immediately stop if they detect an arm or even a finger in their path, ensuring worker safety

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How those technologies potentially affect manufacturing -digitization brings enormous benefits

Digitization

• Digital product design and testing, simulation

• Faster prototyping with 3D printing

• Faster production ramp-up by 3D printing technology

• Complete automation and autonomous production system

• Workforce training through VR

• Individualized products/solutions

• Deeper understanding on customer behaviour

• Enhanced customer experience with VR

Faster time-to-market Higher productivity

Better customer experienceLess downtime

• Predictive maintenance: “repair before failure”

• Real-time spare parts production (3D printing)

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Getting there won’t be easy - how we transform ourselves

1 2 3 4 5 6

Create initial pilot project

Define the capabilities you need

Transform your

production line

Actively plan an

ecosystem approach

Become a virtuoso in

data analytics

Map out your

industry 4.0 strategy

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GE’s “Brilliant factory” put together all the key technologies into one integrated concept

AI

3D printing

IoT

Robotics

AR andwearables

GE Brilliant factory

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How GE transformed into digital industrial company –strong commitment from top management and Predix role out

“We are going to be a digital industrial company.”

Jeff Immelt, GE CEO

GE’s platform for innovation

Develop skills & culture

Top management training programs

Emphasis on creating

common understanding

Collaborate within GE

Integrating collective talent across functions

Cross-disciplinary engagement

Full commitment from CEO

Redefining corporate strategy

Committment to invest in digital transfromation

Collaborate with customers

Discovery sessions with customers

Sharing tools and resources, & studying new solutions

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Challenges

How do we monetize? What is the right business model?

Which technologies to invest in?

How do we make a transition from legacy systems to new systems?

How do we deal with new competitors?

Who should we partner with?

How do we train and enable people to adopt to this new paradigm?

Thank you!

Richard SkinnerPartner, Strategy, PwC Singapore

Mobile: +65 98233771E-mail: richard.skinner@sg.pwc.com