accelerating industrie 4.0 with qio technologies · 1 accelerating industrie 4.0 with qio...

Accelerating Industrie 4.0 with QiO Technologies

A proven five-point plan for industrial and manufacturing companies

Fast track your digital transformation initiativesImprove safety, unlock productivity and enable closer customer relations

By Rick Haythornthwaite, QiO Technologies Chairman & Co-founder and Baz Khuti, CEO & Co-founder

January 2019

1

Accelerating Industrie 4.0 with QiO Technologies 2

Three Mega Trends Driving Industrie 4.0

Defining Industrie 4.0 and Industrial IoT

Industrie 4.0 is a term coined by the German Government as part of its strategic plan to digitise industrial,

manufacturing, supply chain and customer ecosystems.

Building on the progress of Industry 3.0, Industrie 4.0 promises to revolutionise business process automation across

functional and organisational silos — making use of new technologies such as smart sensors, 3D printing, robotics, data

analytics, mobility, cloud, artificial intelligence and collaborative applications — to deliver transformative results.

Industrial Internet of Things (IIoT) is a component of Industrie 4.0 or advanced manufacturing strategy.

Industrial IoT originates from GE’s strategy to become a digital industrial company through the development and

marketing of Predix™. IIoT focuses on the software platform components needed to integrate data from plants

(Operational Technology – DCS, SCADA) and IT (Information Technology – ERP, SCM) systems.

Industrie 4.0 and IIoT are happening right now. Every manufacturing and industrial company needs a plan that will get

them in the game and remain relevant.

1st Mechanisation, water power,

steam power – 1800’s

2nd Mass production,assembly line,

electricity – 1920’s

3rd Computer and automation – 1970’s

4th Cyber physical systems – Now

Industry 3.0 was a huge breakthrough. Companies invested heavily in complex plant automation systems and IT

systems to automate core business processes such as finance, sales and distribution. The results were transformative,

and the future looked bright. There were hidden downsides. Industry 3.0 created organisational and data silos while

locking companies into proprietary software and long-term maintenance contracts. Many companies are left with

engineering and manufacturing functions that have rigid software structures and mazes of spreadsheets tying up talent.

Complex user interfaces constraining internal communications resulting in inefficient collaboration and lack of

innovation across functional boundaries. These Industry 3.0 legacies cannot be easily adapted to current market

demand and today’s massive data flows. Companies find themselves paying large OT/IT vendors annual maintenance

fees when only 10% - 20% of the software features are used.

Industry 3.0’s solutions have created Industrie 4.0 problems

Manufacturers have increasing cost pressures from several perspectives; increasing wage costs, global supply chains,

increasing regulation, recent US/China trade wars and Brexit uncertainty. To remain competitive, manufacturers are

embarking on digital manufacturing initiatives. McKinsey & Company’s Digital Global Manufacturing Survey 2018 found

70% of respondents ranked digital manufacturing as a top priority for the company. However, companies are facing

challenges to move from limited proof of concepts and pilots to full-scale implementation across their plants. The key

inhibiting factors are tangible returns, technology architectures built for scale, lack of skilled workers, lack of standards

and engineering leadership with the necessary ambition and vision.

Digital manufacturing strategy – moving from concept to implementation

To stay relevant and restore productivity growth, manufacturers must adopt and deploy advanced manufacturing

technologies such as robotics, 3-D printing, digital software technologies (e.g., cloud, mobile, AR and AI). This will help

them drive product excellence, innovation, generate new revenue streams, reduce costs and operate in a labour market

with a shortage of skilled workers — made more difficult by tighter immigration laws making it harder to hire workers

from other countries.

Industrie 4.0 technologies are becoming increasingly essential

Make “Think Big, Start Small and Scale Fast” your

Industrie 4.0 mantra

Make decisions that protect your digital sovereignty right from the start

Servitisation — selling products and outcomes is the new 4.0 business model

Equip your people with tools that free them to innovate with curiosity

and courage

Achieve transformative outcomes using AI toolkits to gain insights from system-wide data

Proven 5-Point Plan for Accelerating Industrie 4.0

We see industrial and manufacturing companies struggling to follow a proven roadmap on how to tackle these mega

trends. The five-point plan below has been successfully implemented in production and at scale by our customers.

QiO offers these proven methods and mindsets to accelerate your Industrie 4.0 journey.

3Accelerating Industrie 4.0 with QiO Technologies

2

3

This concept created by a large U.S. corporation to drive their global brand and operational excellence across all stores,

is your key to Industrie 4.0 success.

What “Think Big” means. It is not a lofty vision of your future spun by consultants which looks great in PowerPoint but

doesn’t deliver buy-in or a viable path to success. Think Big is about an internal vision that is well beyond that is currently

predictable but grounded in that it must be realistic, consider operating constraints, adapt to current realities and focus

on achieving high-value business outcomes rapidly.

Why “Start Small” is key. High-value quick wins that achieve bottom-line results are what actually create organisational

buy-in. Not only can early successes inspire your organisation to take on more Industrie 4.0 challenges, the cost savings

these efforts create can help you fund future progress by identifying high value, transformative use-cases tied to clear

business outcomes which can be delivered within weeks. However, to scale these quick wins, Industrie 4.0 initiatives

must include security principles, design and governance at the start of the project and not as an afterthought. Security is

often seen as a hurdle to delay a project, but by building trust, inclusiveness and collaboration into digital programs,

security can become a key enabler to scale a solution without rework, risk and delays. Bridging IT and OT infrastructures

and using cloud providers (private, public or hybrid) can create unknown risks and vulnerabilities for cyber-attacks. As

such, security becomes critical to ensuring trusted identities (humans and machines) can securely connect and that the

truth of the data is never compromised.

“One obstacle is the paralysis that sets in when organizations think about the gargantuan effort required. Our experience

shows that success comes from building a platform iteratively, piece by piece.”

McKinsey & Company “Building a great data platform.” July 2018

How to “Scale Fast.” QiO works with manufacturing and industrial leaders to create and launch initiatives to deliver their

visions for their plants — co-creating digital solutions with fast agile pilots lasting a few weeks which achieve a tangible

return (within a year or less). Some examples of QiO’s customer success stories delivered within weeks are:

Aerospace company cut lead times by 20%

Oil & gas company reduced downtime by 30%

Maritime company saved ~$100,000 in fuel per ship, per year

These solutions can be rapidly scaled to other plants and assets at speed — without the usual large consulting

implementation costs, high software license fees and unforeseen rework. This is true disruption.

Our lean and proactive design workshops explore the art of the possible. We identify the questions of tomorrow and

challenge answers of today by identifying processes that can be easily digitised and configured to meet the specific

needs of users.

The methodology is based on the four points covered below.

Make “Think Big, Start Small and Scale Fast” your Industrie 4.0 mantra1


Internally driven with supporting expertise, as needed. Available only to selected partners, ecosystems are

restricted in knowledge sharing. The Intellectual Property (IP), data and customer relationships are retained by the

customer. What’s missing from this approach? The rich insights that are emerging from the vanguard use cases on

technologies, routes to value and the evolution of organisations and ecosystems.

Consultancy driven with internal resources to support the transformation. Consultants drive digital transformation

with internal teams participating through process and data knowledge transfer — using the consultant’s proprietary

software tools or those of their IT partners, such as SAP or Microsoft.

What’s missing from the above scenario? Your internal engineers! They are often not included in change and

transformation programs, which can not only lead to delay, rework, misinterpretation of requirements or restrictions

on integration. The IP, data and customer information are all transferred to the consultants. Your organisation is now

beholden to the consulting firm and locked into the technology choices they made for you.

A hybrid of the two options above.

The above traditional implementation models present you with profound dilemmas that can hinder your Industrie 4.0 efforts. To combat these dilemmas and lead the way to Industrie 4.0 success, QiO created a new path – teaming with our customers. This collaborative implementation model path:

Transfers knowledge to you so you can become self-sufficient and create your own digital cells

Co-creates and helps you innovate by making the created IP accessible

Provides experts from manufacturing with a digital workbench and software knowledge which is transferred to upskill and liberate

Provides digital tools that do not lock you into any cloud or IIoT provider

Secures, protects and rapidly leverages valuable, newly created competitive advantage


Controlling your digital destiny is a critical topic that needs to be considered before embarking on digital transformation

initiatives. Right now, there are three implementation models for these initiatives:

Industrie 4.0 has turned traditional theories of change upside down.

Structured top-down directives — once the primary driver of corporate transformation — can actually now hamper it. As

McKinsey & Company state in their paper ‘Building a great data platform’, “No such ‘big-bang effort’ is needed.”

Equip your people with digital tools that free them to innovate with curiosity and courage 3

Make decisions that protect your digital sovereignty right from the start2


Instead, QiO helps customers create digital cells (teams of 6-8 engineers) that co-create and collaborate at the frontiers

of breakthrough performance that sit between the enterprise and 1) its customers, 2) its supply chain and 3) the

information and operational systems within the enterprise ensuring strategic alignment between operations, digital

initiatives and IT.

Software suppliers, armies of consultants or central functions are no longer the “gatekeepers”. The new keys to

unlocking freedom and innovation are your liberated engineers working at crucial performance frontiers — using a new

breed of digital tools to move from pattern solving (silos of data and spreadsheets) to pattern seeking (exploring and

experimenting) to improve productivity.

These liberated engineers are “shape shifters.” They permeate through and melt the permafrost of organisational silos.

They act as trusted internal advisors to senior management, evangelists and mentors. They are critical to your Industrie

4.0 success and subsequent business growth.

Imagine a vendor-independent software framework that lets you instantly determine asset worthiness as easily as the

financial industry assess credit worthiness with FICO® scores.

QiO PARCS® (Performance, Availability, Reliability, Capacity and Serviceability) is a thought-leading AI framework for the

construction of dynamic digital representations (digital twin), defining characteristics of physical asset systems

(such as cars, trucks, compressors). PARCS® enables the modeling, simulating, predicting and prescribing of behavior

without physical risk, leveraging the best human tendencies – imagination, curiosity and collaboration – and avoiding

the worst – confirmation biases. PARCS® allows companies to build a master-system-of-record across design,

manufacturing and operations.

Achieve transformative outcomes using AI to gain insights from system-wide data4

Plant

Visibility

Manage complexity

Predict failures

Improve uptime

Improved efficiency

Business Model

Utilisation

Power-by-the-hour

Service contracts

Intellectual property

Competitiveness

PERFORMANCE

AVAILABILITY

RELIABILITY

CAPACITYSERVICEABILITY


Case in point: We offer our customers pay-per-usage pricing for our products. This saves money and eliminates the

archaic perpetual licensing model and high maintenance fees. This service helps us create, maintain and grow positive

customer relationships.

Soon customers will be able to offer customers pay-per-usage pricing.

How? By gaining insights from your data through the use of digital tools such as QiO PARCS®. This dramatically changes

the dynamics of how customers recognise revenue and their customers fund capital asset investments. An example

from the automotive sector is ZipCar where customers only pay for the use of the vehicle.

Usage-based pricing could mean a future where car manufacturers focus less on creating auto brands and more on

helping customers move easily across multiple transportation methods – from car to bus to air — creating seamless

mobility.

QiO believes servitisation will be a critical business model for manufacturers and industrials. Key to its success is a

framework for digital twins such as PARCS®, as well as creating systemic intelligence ecosystems that are at the heart

of their business models for the future.

Servitisation – selling products and outcomes is the new 4.0 business model5

PARCS® profiles can exist at:

Individual component level (motor within a pump)

The asset level (the pump)

Composite level to enable system intelligence (all drives controlling power to pumps)

Our Foresight Platform®, recognised in Gartner’s IIoT Magic Quadrant report, was built from the ground up based on

decades of experience, born in the cloud, open-source based and no legacy roadblocks. The Foresight Platform®

enables:

Data integration from any source (IT, OT and Office formats such as Excel, PDF, etc.)

Analysis of your data to create complex AI driven analytical models (collaboratively)

An application framework to deploy AI models wrapped in scalable applications on any cloud

(edge, public or private)

Use of industry best practices such as ISO-27001, ISA-98, ISA-95 and others for cloud and application security,

independently validated, to ensure that trust and truth of the data are not compromised


Why QiO?We are an industrial SaaS software analytics company founded and run by software engineers with decades of deep

expertise working in industrial and manufacturing companies. We understand your toughest challenges because we’ve

wrestled with and solved many of them.

We’ve developed a modular set of templatised applications created on an open IIoT platform with self-service

capabilities, infused with AI models and interoperability with IT and OT systems.

Our Foresight Suite® of applications leverage the significant investments in IT and OT systems your business operates

on today. They will also transform how your business operates in the future – driving 2x–20x improvements in efficiency

and service.

Our software capabilities are summarised below:

AI Infused Applications

Augmented analytical applications to predict and prescribe next course of action for performance, production, maintenance and energy.

Application Enablement

Configuration driven application services for user management, workflow, notifications, visualisation and analytics.

Security

Secure access control (machines and humans), data protection and encryption. ISO 27001 certified and externally validated by accredited agencies.

IT/OT Enablement

Dynamic integration to any Industrial data source, any enterprise IT data sources and any sensors.

Cloud

Support for any cloud provider: AWS, Microsoft Azure, Google and combination of deployments: public, private and edge. Full edge cloud deployment and management.

Cloud

IT/OT Enablement

Applications Enablement

AI Infused Applications

Security

Accelerate implementation using templates for improving operational performance for

lean, safety, supply chain and quality

Increase worker productivity through mobile access and integrated AI tools such as Chatbots

to dynamically identify best practices across manufacturing cells

Enable workers to collaborate across plants globally on company standards and share

best practices

Digitise manual, spreadsheet and word-driven processes for compliance to company and

industry standards

Foresight Suite® of SaaS applications Our applications are designed to accelerate your digital journey — with best-practice templates and AI models

embedded within them. These templates help you reduce time-to-value as well as reduce implementation and technical

risk.

Built on our Foresight Platform®, Foresight applications are also IIoT platform agnostic, so you can seamlessly

use them across your organisation with your existing IIoT platforms and cloud providers.


ForesightEnergy®

ForesightSuite®

ForesightPerformance®

ForesightMaintenance®

ForesightProduction®

Compliance

QualityOperational Excellence

Inventory Optimisation

Scenario ModelingPredictive Planning

Energy Efficiency

Scenario ModelingPredictive Energy

Asset Optimisation

Forensics

PredictiveMaintenance

Foresight Energy®

Foresight Performance® empowers industrial and manufacturing companies to:

Provides a step change in energy management to create a real-time predictive and prescriptive Energy

Efficiency Index (EEI) to allow manufacturing sites, industrial plants (such as steel mills or glass

manufacturers) and transportation companies to predict future energy consumption and recommend

efficiency actions based on current operating and environmental conditions to dramatically

save money.

Foresight Maintenance®

Enables customers to take a more data-driven and collaborative approach to maintenance

challenges. This application harnesses the power of advanced analytics and artificial intelligence

to identify why and when a failure will happen in the future, then prescribe the recommended best

course of action for your maintenance teams to be more productive, take safer actions and

increase the asset lifetime.

Foresight Production®

Facilitates the ability to manage production capacity based on predictive insights vs. expediting

product or being locked into production and capacity plans based on rigid, preset schedules.

Foresight Production integrates with your existing ERP, MES and supply chain execution systems to

provide mitigation scenarios for your production challenges. The application continuously monitors

schedules, demand signals and production processes in real-time through a self-learning, AI

engine. This allows users to make real-time, in-context decisions on the best course of action to

meet production, quality and safety objectives.

For more information on our innovative suite of products and services and

a free demo, email us at: [email protected] or call on: +44 (0) 203 300 0177

QiO Technologies Limited is a limited company registered in England & Wales.No.1 High Street, Egham, Surrey, TW20 9HJ UK. Company Number: 09368431

Need help accelerating your digital journey to Industrie 4.0?


accelerating industrie 4.0 with qio technologies · 1 accelerating industrie 4.0 with qio...

Documents