Manufacturing Business Transformation
with ICT technology
2015.11.06
PTC Korea
Bong Ki Lee ([email protected])
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Manufacturing Business Transformation with ICT technology
Smart Connected Product
Smart Factory
Smart City
Internet of Things Big Data
Predictive Analytics
Machine Learning
Virtual Reality
Augmented Reality
Connectivity
Digital Twin
Mobile
Cloud
Industry 4.0
Manufacturing
Innovation 3.0
Deep Learning
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PHYSICAL
WORLD
Traditional Reality: DISTINCT AND SEPARATE
DIGITAL
WORLD
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New Reality: DISTINCT BUT INSEPARABLE
Digital World Physical World
INTERNET OF THINGS
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System Of Systems Product System Smart, Connected
Product Smart
Product Product
Tillers Planters
Tractors
Farm
Equipment
System
Combine
Harvesters
Weather Data
System
Irrigation
System
Seed Optimization
System
Farm Equipment
System
Farm
Management
System Platform
Rain, humidity,
temperature sensors
Weather
maps
Weather
forecasts
Weather data
application
Farm performance
database
Seed database
Seed optimization
application
Field sensors
Irrigation
nodes
Irrigation
application
THINGS are Changing
The changing nature of products is disrupting value chains, forcing companies to rethink and retool nearly everything they do internally.” “
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New PRODUCT DEFINITION and TECHNOLOGY STACK
Digital PRODUCT CLOUD
Physical PRODUCT
COMMUNICATIONS Identity &
Security
External
Information
Sources
Integration
with
Business
Systems
Smart Product Applications
Rules/Analytics Engine
Application Platform
Product Data Database
Network Communication
Product Software
Product Hardware
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• Design becomes a systems engineering problem with increased IT and R&D collaboration
• Software-driven product variability enables new low-cost options
• Design enables evergreen products that can be continually upgraded, often remotely
• New user interfaces and augmented reality reduce the need for controls on the product itself
• Continuous monitoring of real-world performance data enables ongoing quality management
• Product designs can allow remote service and support new business models
• Products of broader systems require system interoperability and codesign
New Principles of Product Design
Configurable
Engine
Transforms PRODUCT DEVELOPMENT
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New Production Requirements and Opportunities
• Manufacturing goes beyond physical production via a cloud-based system for continuous
product operations
• Industrie 4.0 and Smart Manufacturing network machines to automate and optimize
production
• Shift from mechanical parts to software eliminates and simplifies physical components and
production steps
• Reconfigure assembly processes so product design changes and customization can be
incorporated later, even after delivery
Transforms MANUFACTURING/OPERATIONS
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New Service Delivery Approaches
Elevator / Escalator Manufacturer
Urban Mobility Solutions
Transforms AFTER-SALES SERVICE
• Technicians can diagnose problems remotely to enable one-stop service
• Shift from reactive to proactive and remote service and potential to optimize or disrupt
service channels and providers
• Predictive analytics can anticipate problems and enable preventative service
• Augmented-reality-supported service increase service efficiency and effectiveness
• Service expands to new value added services via the new data, connectivity, and analytics
available
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26 KEY IOT USE CASES Across Business Functions
MARKETING /
SALES
PRODUCT
DEVELOPMENT
OPERATIONS /
MANUFACTURING
SERVICE /
SUPPORT
INFORMATION /
OPERATIONAL
TECHNOLOGY
CUSTOMER
Rapid IoT Application
Development
Customer Insights
and Opportunities
Connected Product
Usage Analysis
Flexible Billing and
Pricing Models
New Value Added
Services
Connected Product
Quality Analysis
Connected Software
Management
Customer
Self-Service
Usage and
Performance
Dashboard
Product
Personalization
Connected
Operations Intelligence
Unified Key
Performance Indicators
Real-Time Asset Health
Monitoring
Operations Management
Improvements
Asset and Material
Tracking
Monitoring and
Diagnostics
Remote Service
Condition-Based
Predictive Maintenance
Automated Service
Execution
Warranty Cost
Management
Connected Service
Parts Planning
Flexible Product and
Asset Connectivity
Identity and Security
Management
Scalable IoT Operations
Management
Seamless IoT Data
Integration
Automated Analytics and
Actions
11 VALUE
New Ways to CAPTURE VALUE
Opt im ize Per f o rmance
Improve R isk Management
Reduce Produc t and Serv ice Cos ts
New Revenue S t reams
Operational
Di f f e ren t ia te O f fe r ing
Quickly deliver compelling, differentiated offerings that meet or anticipate customer demands
Eleva te Cus tomer Re la t ionsh ip
Make offerings smarter, easier to update, and more personalized to elevate customer experience
Strategic
Combine real-time data from assets, enterprise systems, and people to increase availability and operational efficiency
Improve ability to proactively identify and mitigate problems that represent financial, safety, environmental and regulatory compliance risk
Implement proactive service, limit warranty costs and risks, and optimize service and product development processes
Realize new value-add opportunities and revenue streams with incremental services and offerings
Subs t i t u te O f fe r ings
Breakthrough new offerings that capture demand from traditional products and services
New Bus iness Mode ls
Maximize revenue opportunities and value capture from new services or business models
Disruptive
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The DEFINITIVE ARTICLES on the Internet of Things
Smart, connected products will give rise to the
next era of IT-driven productivity growth at a
time when the impact of earlier waves of IT has
largely played itself out. – November 2014
Jim Heppelmann
President and CEO,
PTC
Michael Porter
Harvard Business
School
Smart, connected products are transforming
how companies design, manufacture, operate
and service products, and ultimately, how they
organize to create and capture value. – October 2015
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Enables Breakthroughs in both DIFFERENTIATION and
OPERATIONAL EFFECTIVENESS
• Smart, connected products and the data they generate enable 4 new categories of
capabilities, where each category builds on the preceding
• These new capabilities enable companies to create both:
– Differentiation (e.g. New and unique value-added services)
– Operational Effectiveness (e.g. Monitor products to improve service efficiency)
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2
3
4
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8
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10 Which product capabilities to pursue?
Functionality: embedded in the
product vs. the cloud?
Open or closed system?
Technology development:
internal or outsource?
What data to capture? How to manage data rights
and access?
Disintermediate distribution
or service channels?
Change the business
model?
Sell data to outside parties?
Expand scope?
New STRATEGIC CHOICES for Companies
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• Data now stands with people, technology, and capital as a core asset
• Product data value increases exponentially when integrated with other data
• Companies unearth powerful insights directly from the product or by identifying patterns with new data analytics tools
• To better understand the rich new data companies are also beginning to deploy a “digital twin”
Creates NEW SOURCES OF DATA and VALUE UNLOCKED
BY ANALYTICS
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Requires a New ORGANIZATONIAL STRUCTURE
Organizational structures are in rapid flux, but a number of important shifts are
becoming evident
– IT & R&D Collaboration: Reflecting the new need for IT in product development
– Unified Data Organization: Handles enterprise-wide data management and analytics
– Dev-Ops: Oversees ongoing product updates and efforts to shorten product-release cycles
– Customer Success Management: Ensures customers gain ongoing value to reduce churn
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Business Transformation in manufacturing business
Manufacturing business can be transformed in terms of its business model and processes by
new paradigm of current era : Internet of Thing
Transform business processes Predictive maintenance, better asset
utilization, higher productivity, smart factory
Enable new business models e.g. : remote monitoring enables
anything-as-a-service, lease business, rev. share Traditional
Manufacturing
& Business
Internet of
Things
Industry Transformation enabler Types of new opportunity
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PTC Technology Platforms & Enterprise Applications
TECHNOLOGY PLATFORMS
IoT Application Enablement & Integration
ENTERPRISE APPLICATIONS
Augmented Reality*
Digital Twin*
*Beta
Big Data Analytics
CAD
PLM
ALM
SLM