digital transformation in manufacturing industries · logistics chain trough logistics business...

PUBLIC

Dr. Hans Jörg Stotz, SVP IoT Strategy & Innovation6th, March 2018

Digital Transformation in Manufacturing Industries

2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The future consumer-driven economy will be digital and networked

Consumerization

NetworksDigitization

Effectivenessalong the

customer journey

Efficiency along the digital

supply chain

Superior valuedelivered by the

ecosystem

Urbanization Demographic fragmentation

Purposeful brands

Real-time interactions

Re-localizationReal-world awareness

Platform economy

Immersive experiences


- Design collaboration with partners and customers

- Virtual design &integration to digital twin

- Real-time demand sensing & factory simulation

- Need based asset and resource optimization leveraging big data

- Paperless processes- Live Manufacturing Quality analytics- Agile distributed manufacturing (e.g.

3D printing)- Lot Size One – profitability (I4.0)- Digital twin as basis for production

(product and asset)

- Autonomous driving vehicles in WH- Connected products and fleets- Real time track and trace of goods

and route optimization / re-planning- Integration between stakeholders in

logistics chain trough Logistics business networks (ad hoc shipments, container exchange)

- Digital twin as exchange platform for stakeholder data

- Augmented reality & service delivery- Real-time after service and asset

optimization- Insurability of connected assets

Enabling significant innovation in business processes

PlanDesign & Plan

MakeRespond &

Produce

DeliverStore &

Distribute

MaintainOperate &

Service

Bus

ines

s pr

oces

s im

pact

Now

| Yes

terd

ay

- Midterm product planning- Experience-based design by

vendor- One time factory design- Weekly /daily demand sensing

- Resource allocation optimized for volume to reduce cost of item

- Paper based process- Expert based quality management

after the fact- Just in sequence production with

fixed tiers of suppliers

- Regular route scheduling- Reduced storage based on

process optimization & warehouses automation

- Tracking of goods based on handover points

- Scheduled maintenance- Paper-and-pen / manual based

service management- Lack of data exchange between

stakeholders on assets- No insurance of production process


Path from traditional manufacturing to data-driven business ecosystems

Business Model

Business Driver

IoT skills

Integration and technology

Standards

Product and after-sales services

Process optimization

Analytics, machine learning, optimization

Horizontal integration (from design to delivery)

Semantic standards

Product-as-a-service and value-added services

Services growth

Services management (portfolio, product mgmt.)

Services platform, SLA management, services billing

Interoperability of services

SMART SERVICES

Data-driven digital business

Ecosystem expansion

Ecosystem business development

Open data platform, business network

Cross-industry standards

INNOVATION BUSINESSOPTIMIZED PRODUCTION

Product and support services

Product sales

Embedded systems, augmented reality

Vertical integration (OT-IT), machine connectivity

Connectivity (e.g. OPC-UA)

Connect & act liveOptimize & deliver efficiency

Expand & grow revenue

Innovate & grow ecosystem

Source: SAP, Acatech

“We are seeing improved uptime of equipment, decreased time to resolution, reduced operational risks and accelerated innovation cycles. Most importantly, we have been able to align our products and services more closely with our customers’ needs.”

Falko Lameter, CIO Kaeser Kompressoren GmbH.

Source: http://www.kaeser.de/

The predictive maintenance solution coupled with usage monitoring as prerequisite for Kaesers innovative SIGMA AIR UTILITY Pay per Use Business Model


Integration as a precondition for innovation

Vertical Integration

Platform Integration

Horizontal Integration

• Shop-floor to Top-floor• Analysis of machine data• Connection to business processes

• Product journey along the value chain• Communication of Product, Machine

and Transport

• Data exchange between platforms• Collaboration between companies


Standards for integration

Vertical Integration

Platform Integration

Horizontal Integration

Stan

dard

s

Industrie 4.0 Components / Admin Shellon the basis of industry standards

OPC UA Companion Specificationsan an instance of the Admin Shell


SAP Leonardo helps drive Digital Transformation for customers

Systemof Record

SAP S4/HANASAP Hybris

SAP SuccessFactorsConcur

SAP FieldglassSAP Ariba

Systemof Innovation

SAP LeonardoIoT

Machine LearningBig Data

Modern AnalyticsBlockchain

Data Intelligence

SAP Implementation Services SAP Design Thinking Services

SAP HANA SAP Cloud Platform


SAP Leonardo as a Digital Innovation System

Analytics Big Data

Blockchain MachineLearning

Internetof Things

Data Intelligence

SAP Leonardo

SAP Data Center

SAP Cloud Platform

Multi-Cloud Infrastructure

Microservices | Open APIs | Flexible Runtimes | Integration

SAP Suite of IoT Applications

Connected Goods | Assets | Fleets | InfrastructureDigital Manufacturing | Logistics | Asset Management


IoT and Networks are driving the Digital Supply ChainN

etw

orks

Inte

rnet

of

Thin

gs

Design Make Deliver Maintain

SAP Predictive Quality

SAP Vehicle InsigtsSAP Global Track & Trace

SAP PredictiveMaintenance and Services

SAP Intelligent Product Design

SAP Distributed Manufacturing

SAP Logistic Business Network

SAP Asset Intelligence Network


Evolving business processes into a business networks

Plan

Make

Design

Deliver

Operate & Service

Logistics Networks

Manufacturing

Service

Procurement

Digital Manufacturing

Connected AssetsConnected Design

Connected Vehicles Digital Planning

Digital Logistics

Design

Connected Goods

Dr. Hans Jörg StotzSenior Vice President IoT Strategy & [email protected]

Thank you.

mailto:[email protected]

Appendix

digital transformation in manufacturing industries · logistics chain trough logistics business...

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