industrie 4.0: preparing tomorrow’s digital manufacturing
TRANSCRIPT
Industrie 4.0: Preparing Tomorrow’s Digital Manufacturing
Deepak Achuthashankar, Industry Analyst
Industrial Automation & Process Control
23 September 2014
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Today’s Presenter
Experience in the field of consulting and market research across the
Industrial Automation and Process Control Division. Has 5+ years of industry
experience in end-to-end project management & marketing of Power
Distribution, Substation Automation & Process Automation solutions. Worked
with various industrial end-user verticals such as Power Generation, Oil &
Gas, Metals & Mining, Cement, Automobile & Ancillaries and Infrastructure
segments.
Deepak Achuthashankar, Industry Analyst
Frost & Sullivan
India
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The 4th Industrial Revolution is Around the Corner
4th
Industrial Revolution
FutureSmart: based on
integration of virtual
and physical
production systems
Source: DFKI
1st
Industrial Revolution
2nd
Industrial Revolution
3rd
Industrial Revolution
1760s-1900Use of steam and
mechanically
driven production
facilities
1900-1970sElectric Power
driven mass
production based
on division of
labor
1970s to dateExtensive use of
Controls, IT and
Electronics for an
automated and high productivity environment
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Industrie 4.0 - The Vision and Implications
Industrie 4.0
Technology
Processes
Collaboration
Wireless Intelligence
Big Data
Cloud Platforms
Internet of Things
Integrated Industries
Social Innovation
IP Centralization
Internet of ServicesSustainable
Manufacturing
Lifecycle Assessment
Industrial Revolution 4.0 - Pursuits
•Product Innovation
•Increased Collaboration
•Operational Process Enhancement
•Cyber-Physical Production
Industrial Revolution 1.0 – 3.0
• Mechanized Processes
• Mass Production
• Production Automation
� Convergence of applications will form crux of new advancements
� Energy efficiency and sustainability to gain greater business focus
� Greater presence of mobility and web-based information systems
Strategic Trends
The term “Industrial” in this context, refers
to all segments within the industrial worldassociated with discrete/processindustries. It’s scope is inclusive ofenterprise applications in board rooms tomanufacturing production units in the shop
floor.
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Functional Attributes
Industrie 4.0Wireless
Intelligence
Smart Clouds
Collaborative IT Solutions
Distributed Manufacturing
� Scalability� Lower IT cost� Mobility� Reduced
complexity
� Fosters Innovation� Reduced time-to-market� Improved productivity� Minimal capital
expenditure� Efficient training
mechanisms� Cost efficiency� Local manufacturing
� Mobile maintenance� Operator empowerment
Integrated Enterprise Ecosystem
ERP
PLM
MES
$
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Challenges
Burgeoning Competition
Increasing commodity
costs
Growing Energy Demand
Global Economic
Woes
Uncertain Geopolitical Landscape
Volatility in Government
Policies
Industry convergence
alters competitive landscape
Fast-changing consumer trends
impacts enterprise stability
Competitive pressures driving
ineffective innovation
Risk of Cyber Attacks
Global Challenges
Technological Challenges
Immediate Challenges
�Maximized production @minimal
energy - A catch 22 situation
� Convergence of industries
� Rise of disruptive technologies
�Weak manufacturing output
� Lower profit margins
� Regulatory Pressures
Multiple challenges are set to impact enterprises during the
course of their evolution. But the biggest challenge that can derail
progress is “Industrial Cyber Security”
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A Look Into Some of the Attributes
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Industry Convergence Matrix: Industrial and IT—2013
CustomerFocus
Consumer
Industry FocusInformation & Communication
Technologies (ICT)
Industrial Automation & Process Control (IPC)
Manufacturing Enterprise
Commercial IT
Core Industry
Ethernet DevicesCloud IT Infrastructure
Cyber Security Apps
Warranty Management Apps
3D Operator Training Assistance
VR Predictive Maintenance
Asset Management Apps
Digital Manufacturing
EMI
Social Media Apps
Mobile Maintenance
Remote Home Control Apps
VR Simulation Systems
Wireless Communication
Note: Top five markets are in brown text boxes. Source: Frost & Sullivan
Industrial IT Market: Manufacturing Sector, 2013
Industrial Internet
Professional
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The Enterprise Pyramid—Changing Architectures
Source: ANS/ISA standard 95 and Frost & Sullivan analysis.
PLCPLC MotorsMotors DrivesDrives
SCADASCADA DCSDCS HMIHMI
Production Planning, Scheduling,
Tracking, Traceability
Strategy, Resource Planning
Le
ve
l 4
Le
ve
l 3
Le
ve
l 2
Le
ve
l 1
The Enterprise Pyramid
Including the PLM Layer
Enterprise Pyramid in Transformation
The aspect of product design and engineering is traditionally perceived as a part of Level 4, along with enterprise resource planning. However, with growing significance, PLM is expected to gain its own position in the enterprise hierarchy and be ensconced exclusively between Levels 3 and 4.
The Enterprise Pyramid is a comprehensive
representation of different operational layers at
their respective positions.
This includes factory floor at Level 1, followed by
controls and automation in Level 2, MES at Level
3, and ERP at Level 4.
In a new development, product life cycle
management is expected to be included in the
future of enterprise hierarchy, between Levels 3
and 4.
ERP
MES
Manufacturing Process Integration and Visualization
Factory Floor
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Integrated Enterprise Ecosystem– A Snapshot
Product Lifecycle Management
Computer-aided design, computer-aided manufacturing,
product data management, digital manufacturing
iDevices (intelligent)
Wireless technology Intuitive control rooms
Mobile technology
Smart services
•Enterprise integration
•Enterprise integration
•Cloud computing
•Cloud computing
Software as a Service
Social media integration
Source: Frost & Sullivan Analysis.
Cyber Security
In future, integration between multiple enterprise layers is likely to change the hierarchical structure of operation that wesee today, forming a horizontal enterprise architecture where various disciplines interact seamlessly with each other.
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Industrial Internet - Unearthing the Potential of a Globalized Manufacturing Network
Source: Frost & Sullivan Analysis.
Manufacturing Access Points
Real-time data acquisition
from the entire gamut of the
manufacturing supply chain,
including specialized devices,
sensing applications, and
software solutions
Data Processing &Analytics
Intensive analytics founded on
cloud-based service models,
supporting predictive and
preventive threat assessment,
coupled with manufacturing
process planning
Empowered Human Network
An agile workforce armed with
advanced mobile devices that
provide access to synchronized
intelligence, facilitate
instantaneous alerts, and support
on-the-spot decision making
Industrial Internet—Functional Facets in Manufacturing
Global Indicators, 2013 Estimates*
Global GDP $72.0 tn
Industrial Economies (share of GDP) $21.0 tn
Manufacturing Industries (share of GDP) $12.0 tn
Potential for IndustrialInternet as a % of Global GDP, 2013
Industrial + Non-industrial
Industrial Manufacturing
Percent Share of Global GDP
46.0% 29.2% 16.5%
Industrial Internet and Enterprise Integration
In addition to a strong, integrated network offering,industrial Internet, as part of the I4.0 Vision, is set tosupport the evolution of specialized solutions such ascloud computing, advanced mobility, and augmentedreality systems in the manufacturing landscape.
In addition, in 2013, 16.5 percent of the global GDPwas estimated to arise from manufacturing and isreflective of the global potential for the expansion ofindustrial Internet.
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Big Data Analytics
End-user
Data Acquisition & Analysis
Simulation & Contextualization
Actionable Intelligence
Management Decision
Big Data Implications
Maximizing asset utilization with reduced downtime
Reducing energy consumption through efficient plant processes
Optimizing production with varying demand scenarios
Big Data analytics forms the cornerstone of future industries. With vast process/production information generated across
the supply chain, Big Data analytics helps end-users optimize production, reduce downtime and minimize manufacturing bottlenecks. Key questions on the future of Big Data analytics in end-user industries remain unanswered. Will Big Data analytics necessitate investments in cloud architecture? Will the onset of Big Data compromise intellectual capital?
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Industrial Services – How Does it Fit into the Industrie 4.0 Perspective?
Product Services
Asset Services
Plant Services
Ecosystem ServicesThe amalgamation of Internet of Services with the Internet of Things will give birth to a new cloud-based maintenance and service model , that is poised to transcend plant operation and help improve efficiency across the enterprise.
The dynamics of the emerging service framework will create new seats of ownership in the value-chain of industries
Comprehensive asset services that are product neutral will be a key segment of opportunity for expansion in the future.
Services to become an exclusive entity with little or nodependence on product sales. This will give rise to a newbusiness model that will promote “product as a service”
The focus on service as the new business model has gained considerable traction in the developed world. The trends of plant outsourcing and value-added services have disrupted traditional business strategies of industrial vendors, resulting in major transformations across the value-chain. In the current context, the business model of services is at a crossroads. With the advent of I4.0, the service proposition is expected to grow in complexity, necessitating a need for discerning end-user needs in line with the vision of I4.0.
How are end-users planning to approach
service partnerships in future?
Will increasing service needs decline end-user stakes in production?
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Our Future Focus
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Industrie 4.0 and the End-user Equation
Vendor Proposition
State Policy
End-user Acceptance
What the End-user wants: The Missing Link in I4.0 Discussion
Industrial vendors have embraced the idea of Industrie 4.0 within their product framework, repositioning their
existing solutions in line with this industrial paradigm. However, in the discussion on I4.0 and the Smart
Factory initiative, there is a need to understand end-user perception. We, at Frost Sullivan, firmly believe that
the end-user factor will decide the future of the I4.0 vision.
Industry convergence
alters competitive landscape
Risk of Cyber Attacks
Fast-changing consumer trends
impacts enterprise stability
Competitive pressures
driving Ineffective innovation
Burgeoning CompetitionBurgeoning Competition
Increasing commodity
costs
Increasing commodity
costs
Growing Energy
Demand
Growing Energy
Demand
Global Economic
Woes
Global Economic
Woes
Uncertain Geopolitical Landscape
Uncertain Geopolitical Landscape
Volatility in Government
Policies
Volatility in Government
Policies
Macro Challenges
Ma
rke
tC
ha
lle
ng
es
Industrie 4.0: Key Stakeholders
Fu
nc
tio
na
l C
ha
lle
ng
es
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For Additional Information
Julia Nikishkina
Communications Executive
Industrial Automation & Process Control
+7 (499) 213 0156 [email protected]
Deepak Achuthashankar
Industry Analyst
Industrial Automation & Process Control
(+91) – 44-6681 4034
Sivakumar Narayanaswamy
Research Manager
Industrial Automation & Process Control
(+91) – 44-6681 4038
Muthukumar Viswanathan
Practice Director
Industrial Automation & Process Control
(+44) – 20-7915 7804