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SKF GroupJohan Tommervik – Group Chief Information Officer
DXC CAB – London October 2017 – Proprietary and confidential information
© SKF Group
SKF vision and mission
A world of reliable rotation
The undisputed leader
in the bearing business
https://www.youtube.com/watch?v=JGpaEK0c3_w&t=7s
SKF Corporate film (short
© SKF Group
• Established 1907
• Sales 2016 SEK 72,787 million
• Employees 44,868
• Manufacturing units 108
• SKF presence 130 countries
• Distributors/dealers 17,000 locations
• Global certificates ISO 14001
OHSAS 18001 certification
ISO 50001
SKF – a truly global company
© SKF Group
Net sales for Industrial 2016
Industry general 17%
Industry, heavy and
special 12%
Industrial distribution 40%Aerospace 9%
Energy 8%
Off-highway 5%
Railway 5%Other 4%
© SKF Group
Net sales for Automotive 2016
Cars and light trucks 49%
Vehicle aftermarket 27%
Trucks 16%
Two-wheelers and Electrical 6%
Other 2%
© SKF Group
• More competitive
landscape across the
value chain
• Asian companies
going global
• Overcapacity in heavy
and investment-
driven industries
• Automation,
electrification and
digitalization drive the
change
• New technology
requirements for new
applications
• Technology for cost
competitiveness
• New, emerging
competitors gaining
ground
• Chinese competitors
strengthen position
fueled by local market
• New Asian customers
going global
• More transparent
supplier market gives
stronger buying power
• Strong price/cost
focus
• Tougher competition
and SKF traditional
customer base under
competitive pressure
Changing business reality
Globalization Technology Competitors Customers
© SKF Group
Two value propositions in focus
Customer need:“I want on-time delivery, quality and field
performance, flawless launches of new
products, technology and price”
Customer need:“I want your products and my assets to reach technical
end of life with trouble-free operation”
1. Rotating
equipment
performance
2. Product
© SKF Group
Rotating equipment performance value proposition
• Right solution
• Right performance
• Right total cost
of ownership
Rotating
equipment
performance
Advanced bearing
and sealing solutions
Sealing
Technology
upgrades
Maintenance
procedures
Quality
Lubrication
Safety
Bearing remanufacturing
and customizations
Bearings
and units
Power
transmission
Environ-
mental
Reliability
services
Machine health
© SKF Group
SKF technology areas
Bearings
and units
Seals Services Lubrication
systems
Linear actuation
© SKF Group
Industry specialist and partner to many industries
Energy
• Renewable
• Traditional
Aerospace
Railways
Off-highway
Vehicle aftermarket
Industry, heavy and
special
• Metals
• Mining and cement
• Pulp & Paper
• Marine
• Food & Beverage
Industry general
• Automation
• Industrial drives
• Machine tools
• Medical
• Health care
Cars and light trucks
Trucks
• Trucks, trailers and buses
Two wheelers and electrical
• Two wheelers, home
appliances, portable power
tools and electric motors
© SKF Group
IT @ SKF – a quick view
Slide 13
1/2/110Mainframe/Midrange//Unix servers
25 000Managed Workplaces
215Active IT projects/year
928 000 000 (~29tr/s)Business Transactions/year over GAIA (trans./sec 24/7)
11 000 000 000Network events/month
285+SKF connected sites
110 000 000e-mails/year from/to the internet
16 500Service Desk Interactions per month
16 122 000Order lines processed by SKF IT Systems/year,
1 line every other second
2 600 000Dispatch orders processed by SKF IT Systems/year
5700Managed Tablets/Smartphones
654/1322Business Apps & Installations
1 030Windows Servers
2370 (~11)Functional/Operation application changes in central systems /year
(11 changes per working day)
© SKF Group
What digitalization means at SKF
REP
• Remote monitoring (low cost sensors)
• Enlight Centre
• Connect to partners (Honeywell,
Siemens, Schneider, GE)
• Lubrication (Smart Lube Systems)
• Machine learning / auto-diagnostics
• Interface with competitor CoMo equip.
DD
Customer Digital Interface
OEMSKF.com
Mfg 4.0
SC 4.0
REPProducts
SC 4.0
Brg Tracker
REPProducts
Digital Product Description
• Inconsistent image
representation & quality
• Small % of assortment
covered
• Manual process
Digital Product Data
(Windchill)
Eng & Research
Digital Product
Content
© SKF Group
Digital Business – the approach!
$
$
$
User Value
• Smart Services
• Smart Manufacturing
Asset Layer
• Smart Products
• Smart Factory
Service Layer
• Digital Platform
• Data ScienceDigital Platform
Sales, Bus. Development, Manufacturing
R&D, Prod. Development, Manufacturing
SKF IT
© SKF Group
SKF Digital Strategy Core Projects
Co
nn
ect –
Co
llect –
Co
rre
late
–C
olla
bo
rate
Supply Chain 4.0
World Class Manufacturing
360 DX – Digital Experience
Smart Data Programme
World Class Manufacturing
Supply Chain 4.0
360 DX – Digital Experience
Smart Data Programme
© SKF Group
SKF’s Enlight connects you to the world’s experts in rotating equipment performance
SKF Quick
Collect
Sensor
Data Collect appSKF Quick
Collect
SKF Enlight Collect
Expert Portable devices
On-line systems
Wireless systems
Remote Diagnostic
Services
Insight Apps
Lubrication systemGrease Gun
• Action Centre
• User Views
• Dashboards
SKF Enlight Centre Hololense
© SKF Group
Railway Insight
Smart Product
Service Layer
Associated services
Product Life Cycle- Bearing maintenance extension
- Maintenance recommendation
- Bearing refurbishment
- Root cause analysis
Customer service
- Forecast bearing orders
- Proactive offering
© SKF Group
InGenuity and Identification of Product Packaging
App for customers to authenticate SKF products
based on a globally unique code which is stored
and managed in a central accessible database!
© SKF Group
Myrina Project
Mining Industry
Single Point Lubricator
LORA
Gateway
Central
Data
Storage &
Access
SKF Cloud
Visualization
Users
WebShop
Order
© SKF Group
Smart manufacturing 5G project
Collaboration between Chalmers,
Ericsson and SKF:
Drive digitalization and innovation
in manufacturing through
unlimited 5G connectivity
• 4 demonstrators built, ready for testing
- Stationary connectivity
- Mobile connectivity
- Network and cloud
- Factory radio design
• Full 5G standard and industrialization expected for 2019/2020
• Dramatic improvement in environmental and economic
efficiency, flexibility and traceability
© SKF Group
• A wall-to-wall ERP global transformation programme - Unite
• Cyber defense programme
• Service Now implementation
• Workplace & Automation
• ’Cloudification’
• Next Generation Connectivity
Other major initatives
© SKF Group
UNITE(Global SAP Roadmap*) // 2017-05
Legend:
Roll-out
Parallel project roll-out
Pilot roll-ut
Design, Build, Test
SAP CoE Change Management and Retrofit
Template
2.0(Seals / Lubrications)
Template
1.1(Bearings /
Service)
Tmplt
1.2(Bearings /
Service)
Sales
Service
Finance
Purchasing
Manufacturing
Demand Chain &
Logistics
Template 1.0 ‘Drop 1’
(Bearings/Service)
Russia
Singapore
Singapore DC
China
Shanghai DC
India
Indonesia
Malaysia
USA
Canada
Crosswill DC
Mexico
Brazil
Argentina
South
Korea
KenyaMozamb.S AfricaZambiaUAE
Thailand
Pakistan
Vietnam
Taiwan
AustraliaNewZealandPhilippin.Japan
UruguayChileColombiaPeruVenezuela
Pilot SWE, FIN
Hyp
erc
are
Poland
Spain
1.0
Germany
BelgiumNetherl.Czech R.DenmarkNorway
HungaryPortugalSwitzerl.Greece TurkeyEurotrade
UK
France
Austria
Italy
Bulgaria
Ukraine
Europe; remaining
Bearings Units
Europe; all Sealing Solutions and
Lubrications
2016 2017 2018 2019 20212015 2020 2022 2023
Template
1.0
‘drop 2’(Bearings /
Service)
EDC (Entrepreneur)
Disclaimer: Subject to detailed planning
*unconstrained plan
AeroJuly 12, 2017Slide 31
© SKF Group
UNITE Template v1.0 SAP Application StrategyE
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SAPConnected
ComponentsLegend:
Supply Chain
End to End Process Integration
Financial MgmtServicesManufacturingPurchasingProduct Dev &
Engineering
Marketing & Sales
IT Infrastructure Services
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Business Support
AribaSAP C4C
SA
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Lif
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SAP Enterprise Core Component (ECC)
ECC/SD, ECC/CPM ECC/MM ECC/PP, ECC/PM, ECC/QM ECC/LE, ECC/PP ECC/PS ECC/FI-CO
SAP SCM/APO
SAP PCo
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SAP BW/BI
xDW
HANA Sybase
SAP GRC/PC
SAP GRC/GTSSAP Success Factors
SAP Extended ECM by
OpenText
SAP NW-BC
SAP SMPSAP MDG (Hub)
SAP IdM
SAP GRC/AC
SAP PI/PO
Oracle JCAPS
SAP ME/MII SAP C4C
TrMS
So
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AG
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IS
HP
AL
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Qu
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Cen
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DXC VPC
Informatica
SO99+
People Portal
Cornerstone On-Demand
WCL
WASS (Outb)
SAP EWM (FMH)
Windchill
SAP Cloud
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