industry 4.0 and the internet of things

Property of Schneider Electric

Industry 4.0 and the Internet of ThingsWhat Does This Mean for You, Your Company and Your Future?

Ralf NeubertSenior Director – Innovation & Technology, Industry Business – Schneider Electric

URBANIZATION+2.5B people in cities by 2050

Source: United Nations, DESA

DIGITIZATION

Source: Cisco

50B connected thingsby 2020

INDUSTRIALIZATION+50% Energy consumption by 2050

Source: IEA

Confidential Property of Schneider Electric |

Megatrends are provoking a rise in Energy Demand

Confidential Property of Schneider Electric |

Resources in the next 40 years

Energy consumption will almost double

CO2 emissionsneed to be

halved

×1.5 ÷2We have to become

3 times more efficient

3×

Note: Forecast for 2050 compared to 2009 levels

Property of Schneider Electric |

• A dynamic industry is evolving around IoT technology and has a large potential

• IT is becoming an integral part of a product itself

• Technology will transform industrial production

Internet of Things/Industry 4.0 And Its Industrial ImpactAn evolutionary opportunity

McKinsey: Internet of Things offers a potential economic impact of $4 trillion to $11 trillion a year in 2025

Examples of transformation technologiesBCG, Federal statidtical office of Germany: Industry 4.0 is expected to generate significant productivity gains

Note: Conversion costs = manufacturing costs excl. material

Human

Retail

Cities

Factories

0 0.5 1 1.5 2 2.5 3 3.5 4

Low estimates [trillion $] High estimates [trillion $] Others

Mechanical engineering Machinery

Food and Bev

Automotive

0 10 20 30 40 50 60

Productivity conversion cost [%] Gross production share in GER [%]

Cybersecurity

Big Data and Analytics

Augmented Reality

Cloud

Robot –Assisted production

Simulation

Wireless

1995 2003 2010 2013 2015 20200

10

20

30

40

50 Connected people Connected objects

Energy Automation

Software &

Analytics

Convergence

Operational Technology meets Information Technology

IT

OT

The Internet of Things is going to enable data flow that you never thought was possible – from plant to plug

Source Cisco IBSG April 2011 / Internet World Statistics


Industry 4.0 represents an Evolution...

Com

plex

ity /

Pro

duct

ivity

3rd Industrial Revolution

1970s

Use of electronics and IT for automation

(1st PLC - Schneider Electric Modicon 084)

2nd Industrial Revolution

20th Century

Introduction of mass production powered by electrical energy

1st Industrial Revolution

18th Century

Introduction of mechanical production powered by water

and steam

4th Industrial Revolution“Industry 4.0”

2010+

Cyber-Physical Systems (CPS)


From steam towards intelligent systems

Industry 4.0 and (Industrial) Internet of Things

CPS – Cyber Physical Systems Source: Industrie 4.0 Platform

Business gets Digital Business



Some Key Challenges ...and

Opportunities

Getting a Customer Service Company

“The Internet of everything changes everything.” - John Chambers, Chairmen, former CEO Cisco. Property of Schneider Electric |

Understand Your Data - It‘s About Semantics...

“Do you wish me a good morning, or mean that it is a good morning whether I want it or not; or that you feel good this morning; or that it is a morning to be good on?” ― J.R.R. Tolkien, The Hobbit Property of Schneider Electric |

IoT and Standardization - IT/OT convergence

“IT is from Mars, OT is from Venus”-

Internet blog Property of Schneider Electric |

More Devices, More Complexity.

According to Gartner by 2020, the Internet of Things will consist of 26 billion devices and it will generate over $300 billion in incremental revenue, the majority generated by services. Property of Schneider Electric |

Talent Acquisition

Data Analysts is getting a profession that is highly demanded. Already today.


Breaking Down Silos

“We are heading towards a world where everything is connected and better decisions can be made in real time.” – Forbes Magazine 2014


Secure by Design

“Security needs to be built in as the foundation of the Internet of Things.”

– Michael Fey, CTO, Intel Property of Schneider Electric |


Take aways

Source: Intel

Your Business is Getting Digital

• Internet technology (smart connected products) is already there

• Cybersecurity is a concern.

• Business Practices fundamentally changing to real-time, forward looking decision making.

• We are just starting to understand the IoT opportunity

…and 85% of industrial end points are not yet connected*


You‘ve got questions?Follow Schneider Electric

Contact

Ralf NeubertSchneider Electric, USA800 Federal Street, Andover, MA 01810Email: [email protected]: +1 978 289 3084

http://blog.schneider-electric.com/internet-of-things/

@SCHNEIDERNA

https://www.facebook.com/SchneiderElectricUS

https://www.youtube.com/user/SchneiderCorporate