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SMART FACTORY SUMMIT2019
SaaS and PaaS: New Paradigms for Digital Transformation
John Auld
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The language of today
what can data do?
digital transformation
predictive maintenancedata analytics
AI
machine learning
big data
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Can data redefine entire industries?
vs
HUMAN MACHINEExploiting
Inefficiencies
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Can you really predict the future with data?
2014 Sports Illustrated Predicted 2017 World Series Winners
2014 Team Numbers$44M vs $235M
30/30 – Lowest payroll
2nd to last in their division
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And the results are…
$124,343,900 $242,065,828VS
#18/30 #1/30
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to smart home
From
manual control
to efficient fleet operations
From
trucksto powerby the hour
From
turbines
to streaming
From
record store
Digital business models – On the way to a user centric mindset generating new values
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to streaming
to powerby the hour
to smart home
to efficient fleet operations
Digital business models – On the way to a user centric mindset generating new values
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The new economy is customer centric platforms with a managed eco-system of applications
… something is happening …
The world’s largest taxi company, owns no vehicles
The world’s most popular media owner, creates no content
The most valuable retailer, has no inventory
The world’s largest accommodation provider,
owns no real estate
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90% of the data in the world today has been created in the last two years
Source: IBM, “10 Key Marketing Trends For 2017,”
A lotcan happenin a year
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5.5 million new “things” get connected every day, and 50 billion by 2020
A lotcan happen
Source: Gartner Research
in a day
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Digitalization Changes Everything, EverywhereThe pace of technological advances is fueling digital transformation
DRONES
3DPRINTING
INDUSTRIALROBOTS
SENSORS
SMARTPHONES
COST PER UNIT
2018
2018
$40,000$100
2007
2018
2007
2007
2007
2018
2007
2018
The cost of key technologies is falling
Cost of technology200
100
10
1
0
$ PER 1 MILLION TRANSISTORS
Source: Accenture Technology Vision 2015
Transistor density
’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13 ’14 ’15 ’16
Source: Leading Technology Research Vendor
$100,000$200
$550,000$20,000$30,000
$50$449
$10
100000
10000
1000
100
10
1000000
1000 TRANSISTOR COUNT
Implications of Moore’s Law
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Does the story sound familiar?
vs
HUMAN MACHINEExploiting
Inefficiencies
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Industry 4.0Digital Enterprise à digital transformation
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Industry 4.0Digital Twins realized
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Asset Management
Condition Monitoring
Predictive Maintenance
Optimized Maintenance Scheduling
Energy Optimization
Logistics
…..
Digitalization Changes Everything, EverywhereBusiness and economic boundaries will change dramatically
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20MindSphere Application Centers
57Locations in 17 countries
across the globe
>940Software developers, data specialists and engineers
Oil & Gas
Distribution System
OperatorsPower UtilitiesAutomotive Healthcare Providers
Cities Industry ServicesChemical, Pharma
Rail Mobility &
Infrastructure
Minerals, Cement,
Fiber
Battery Technology Water & Waste Water
Road Mobility &
InfrastructureMining Airports
Buildings Machine Tool Builders
Distributed Energy
Systems
Pumps, Fans,
Compressors Food & Beverage
Digitalization Changes Everything, Everywhere
Business and economic boundaries will change dramatically
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• If you’re a race car team or custom car enthusiast, building your own vehicle can be more important than time and cost.
• For everyone else, we depend on the experts to deliver world class service at the best price.
Multiple subsystem vendors Leverage managed service
OR
Digitalization Changes Everything, EverywhereBuild vs Buy
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IaaS PaaS SaaS MindSphere
Generic overview of different cloud models
HW
Operating System
Virtual machine
DatabasesSecurity
Apps / Services
Analytics
Managed by provider
Managed by "user" Agent based device
connectivity
+
Digitalization Changes Everything, EverywhereNew IT landscapes
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Digitalization Changes Everything, EverywhereOpen platform, open opportunity
MindAppsPowerful industry applications and digital services leveraging best in class cloud technologies
MindSphere
Open Platform as a Service (PaaS/IaaS) for scalable, global IoT connectivity, application development, and deployment
Secure plug and play connection of Siemens and third-party products and equipment
MindConnect
MindServices
Infrastructure as a Service (IaaS)
PLMCRM Others…Historian
ERP SLM MES Analytics
SIMATICSINUMERIKOPC UAHTTPMQTTAMQPLoRaWANModbusCoAPXMPP6LowPANLWM2MEtc.
Protocols Gateways & Devices
Integration with new field assets
Integration with IT and Cloud systems1
2
Digitalization Changes Everything, Everywhere
Data from every source
Enabler: Connectivity to any brand of “Industrial Thing” (sensors, PLC’s, Meters, Enterprise Applications, etc…)
MindSphere The cloud-based, open IoT operating system Platform as a Service
Enabler: Low / No code App development.
Process
Industries
Manufacturing MobilityPower
Generation
Buildings Wind Health-
care
Grid Agriculture Logistics
Partner Smart InfrastructureGas & Power Digital IndustriesCustomer ........Value Added Applications Orchestrated by Siemens and the MindSphere EcoSystem
Digitalization Changes Everything, EverywhereData to every source
Example partners
• Consulting and strategy
• Application developers
• System integrators
• Technology
• Hybrid OT
• Connectivity
160+ MindSphere partners
Digitalization Changes Everything, EverywhereOpen eco-system of innovation
Leveraging PaaS / SaaS allows you to focus on orchestrating value for industry
Thank You!
SCADA connectivityIPC/PC and connectivity software1)
Integrated connectivityFor example MindConnect function blocks forS7-15001)
MindSphere
S7 OPC UA
Gateway/network connectivity• MindConnect (Nano, IOT2040) …)• IPC/IOT and connectivity software1)
• SCALANCE and connectivity software1)
MindConnect
MindConnect Open gateway
SCADA
Field device Field deviceField device Field deviceField device Field device
Company IT-expertise and infrastructure
Flexible Connectivity
Core Services
Application & API Gateway
Data Management
Service Logging
Analytics Service
Content Distribution 3rd Party Apps
Data Storage
MindSphere Supported AWS Interfaces
IoT Service
NotificationConnectivity
Services
IAM
CI/CDProcesses, Tools, Ops Management
Interfaces
VPC peering
Amazon Route 53 Amazon ELB
DeveloperServices
AWS ALB
Elastic Beanstalk LambdaSQSSES KinesisStep Functions ECSSWF
VPC
IAM
CloudWatch
CloudTrail
MindSphere Gateway
MindSphere on AWS
Value CreationSolution Maturity
Solution Complexity & Scope
Phase 1Connect & Monitor• Connect to existing assets
and systems• Use data for simple
alerting and condition-based monitoring
Phase 2Analyze & Predict
• Use integrated data sets and modern data analysis tools to find insights and build analytic models
• Drive to automated predictive and prescriptive processes.
Phase 3Digitalize & Transform• Build and use targeted,
transformative applications
• Develop new products and business models
AssetMgmt.
Condition Monitoring
Asset Performance
Mgmt.
PrescriptiveMaintenance
Supplier Quality
Analysis
Integrated Field Failure
Analysis
Asset as a Service
Closed Loop Digital
Thread
Digital Twin Production
Predictive Maintenance
Optimized Predictive
Maintenance
Digital MaturityEntry points