iot & asset management...hitachi digital solutions & services hitachi smart cloud solutions...

Industry Roundtable Event

IOT & Asset Management

27th November 2019

▪ 09:30 Arrive & Coffee and Pastries

▪ 10:00 Welcome to MTC

▪ 10:15 IOT & Asset Management Drivers

for Manufacturing

▪ 10:45 IOT as a catalyst for change -

BAE Systems

▪ 11:15 Tour of MTC Environment

▪ 12:30 Round table discussion –

including Buffet Lunch

▪ 2:30 Close

Agenda

Welcome to the MTC

Nick Kamen, Hitachi Consulting

James Lowe, Google

Hitachi Digital Solutions & Services

Hitachi Smart

Cloud Solutions

Hitachi

Global Data Office

Hitachi Predictive

Maintenance

Hitachi

Process Intelligence

Hitachi Live StreamHitachi Smart

Customer Experience

Hitachi

Water Solutions

Hitachi Regulatory

Data Management

Management consulting & digital solutionshelp clients transform and

thrive in the digital eraServing

130

25of Global 100

and

ofFortune 500

Platforms & Technologies

Lumada

Big Data & Analytics

Artificial Intelligence

Robotics

Machine Learning

Industry Knowledge

Energy

Financial Services

Pharma

Health & Life Sciences

Manufacturing

Transportation

Urban

Strategic Alliances

Amazon

Google

Microsoft

Oracle

SAP

Services

Management Consulting

Managed Services

Organization Effectiveness

Product Engineering

Global Delivery NetworkWorld class solutions development ecosystem, with 20+ years experience

Hitachi Energy &

Environmental

Efficiency

Smart Cities &

Video Intelligence

Hitachi

Optimized Factory

Hitachi

Smart Healthcare

Co-creating transformational business solutions

100+ global

professionals with

Google Training

1,000’s of

professionals dedicated

to digital transformation

Hitachi and

End to end

capabilities

• Strategy & Assessment

• Implementation

• Managed Services

• Global SAP Practice

(SAP on GCP)

11,000+ IoT patents

50+data scientists

Manufacturing &

Industrials Heritage

107 years of experience developing

operational technologies

6 Industry Solutions built on the Google Cloud Platform

Global Systems

Integrator (GSI)

Partner

1 of 12 partners

globally with this

distinction

We accelerate the creation and

delivery of industry-specific digital

solutions powered by GCP

To sustain ongoing growth, today’s manufacturers are hyper-focused on

three key mandates:

▪ Improve utilization rates of expensive fixed assets that are below

optimal capacity.

▪ Fill the current and increasing void of specialized labor. Estimates that

by 2028, the skills gap in the US will result in 2.4 million unfilled seats

out of a total of 16 million manufacturing jobs.

▪ Protect operating profit as industry average EBITDA margin continues to

decline from 11.2% in 2015 to 8.6% in 2018.

Manufacturing Industry Context*

*Source: The Future of Manufacturing Technology, Columbia Business School, August 2019


OEEMonitoring

Anomaly

Detection

Predictive

Maintenance

Predictive

Quality

The Digital Journey

Dynamic Scheduling

DigitalThread

Single Pane of Glass

Operational View

Blend data to detect

unseen equipment

and line problems

Preventative to

Condition-Based

Maintenance

Minimize losses by

predicting quality

problems

Optimize processes:

equipment and people

Full lifecycle

production insights

© Hitachi Vantara Corporation 2019. All Rights Reserved.© Hitachi Vantara Corporation 2019. All Rights Reserved.© Hitachi Vantara Corporation 2019. All Rights Reserved.

Ilya Billig

IoT Business Development

Director, EMEA

Industrial IoT –the rollercoaster ride

to the future

© Hitachi Vantara Corporation 2019. All Rights Reserved.

State of the Industry

The Story


IoT JourneyYellow Brick Roadto the Emerald city

“75 billion devices due to arrive in the IoT market by 2025”

“The global IoT market is expected to grow to $212 billion USD in size by the end of 2019”


“The road to the bright future of IoT is covered with blood and dead bodies”


Why?


What has changed?


RolesDataCustomers


State of the Industry

The Reality


State of the Industry AssessmentThe Transformation – Progress and Stages

22%Defining or

early phase20%

Have made

progress, company

seeing value

37%Pilot phase

8%IS REAL SUCCESS (business benefit and

speed of impact)

13%Stuck in

pilot, unclear

results

30%

30%

40%

Small: $0-$250M

Medium: $250M-$1B

Large: $1B+41%

36%

18%

5%

GeographyColor by HQ Location

North America

Europe

Asia Pacific

Rest of World

25%

44%

23%

8%

IndustryColor by Industry

Batch

Discrete

Process

OtherRevenue

Color by Company

Revenue

Survey: 275 valid global responses


Most IoT Vendors Lack Domain Knowledge

• Lack of OT knowledge or focus on

installed-base industry

Disconnected Environment

• 60 million machines in factories globally

with 90% not connected2

• 70% of machines are more

than 15 years old2

Data Sits in Silos

• Manufacturing shop floor is a highly

heterogeneous environment, with a

large variety of machine types and OEMs

that speak proprietary protocols (OT Data

Silos)

• Data from different departments

across planning, production, to quality

inspection that sits in its own

databases (IT Data Silos)

Difficult to Calculate ROI

• Most IoT projects fail due to lack of

understanding of OT business drivers,

and focus too much on technologies

• 88% of survey respondents list

“Uncertain ROI” as the largest only

nontechnical barrier

State of the Industry AssessmentRoadblocks and Speed Bumps


OEEMonitoring

Anomaly

Detection

Predictive

Maintenance

Predictive

Quality

IoT Journey

Dynamic Scheduling

DigitalThread


Operational View


unseen equipment

and line problems

Preventative to

Condition-Based

Maintenance

Minimize losses by

predicting quality

problems

Optimize processes:


Full lifecycle

production insights


How we recommend to

approach the Digital

Transformation project

© Hitachi Vantara Corporation 2019. All Rights Reserved.CONFIDENTIAL – For use by Hitachi Vantara Corporation employees and other audiences under NDA only.

Hitachi Across Diverse Verticals

Mobility Smart Life Industry Energy IT


Lumada Portfolio

Lumada Edge

Manufacturing Energy/Utilities Logistics Transportation Mining Oil and Gas Smart Cities

Lumada Services

Maintenance Insights Manufacturing Insights Video Insights

Lumada

Delivery

Services

◼ Lumada Industry solutions ◼ Lumada applications ◼ Lumada platform services ◼ Edge-to-cloud infrastructure

Edge controllers /

appliances

Converged and

hyperconverged

Block-, file- and

object storage

Hybrid cloud and

multicloud


IoT Overview Conceptual Architecture

Low-power

short or

long range

comms

Industries Things

& Industrial

Control

Systems

Sensors

&

Actuators

IoT Endpoints IoT Edge / Gateways IoT Platform & Integration OutcomesApps / Visualisation

/ Data Science

CPU

1010

1010

1010

Compute

Logic

Storage

DATA

CONTROL

CPU

CPU

CPU

CPU

1010

1010

1010

1010

1010

1010

1010

1010

1010

1010

1010

1010

Compute

Logic

Storage

INTEGRATION

Aggregate local data

Store & forward

Local decisions

Processing power

Aggregate enterprise data

Integrate to core systems

Processing power

Test hypotheses

Create insight

Fuel decision-making

Local

Analysis &

visualisation

Local

action

DATA

CONTROL Enterprise

Analysis &

visualisation

Enterprise

action

Enterprise

Integration

New business models

Increased Revenues

ecosystems

Increased operational

efficiency

New business models

Better processes

SENSE COMMUNICATE INTEGRATE ANALYSE ACTSTRATEGY

Understand how to light-up dark devices, what data you need, and where you have it / need it Convert data to insight to wisdom Shift and automate processes and behaviours

DATA

CONTROL

Sensors

Actuators

IP Devices

Securable

Non-IP

Devices

Unsecured

Devices

IP Devices

Securable


Customer Use cases


Auto PartsStruts Assembly Line

Operating Metrics

Repository

CUSTOMER BUSINESS OBJECTIVE

Reduce rejects and losses through predictive quality

VALUE TO CUSTOMER

• Identify machine/process parameters leading to increased rejects

• Provide automated dashboard for daily Gemba sessions

• Show cycle times across line, to identify bottlenecks

• Facilitate Pareto analysis identifying dominant reject reasons and stations

• Visualize cycle time and reject rate trends over various time periods

• Predict increased reject rate based on historical correlations

SQL

Store

SQL

Store

NoSQL

Store

Asset Hierarchy

Admin

Cycle Time

Analytics

Gemba

Dashboards


Oil and Gas DrillingSmart Rig Monitoring and Analytics

CamerasLIDARHistorian

PDI


“Smart Rig’: Monitor operations, equipment degradation, monitor processes

VALUE TO CUSTOMER

• Reduce unplanned downtime by predicting equipment issues

• Optimize drilling performance by minimizing drilling run time

• Remote monitoring of widely-dispersed assets

• Platform for doing more advanced analytics in the future

• Hierarchical digital twin for 200 drilling rigs

SQL

Store

SQL

Store

NoSQL

Store

Asset Hierarchy

Admin

Process

Analytics

OEE Dashboards


AutomotiveFoam Unit Station Deployment

IBC StationMaterial Supply

Station

High Pressure

Unit

Application

Robot

Foam Unit Station CUSTOMER BUSINESS OBJECTIVE

Minimize downtime and line losses

VALUE TO CUSTOMER

• Anomaly detection to identify unseen issues with equipment

• Asset analytics dashboard to mine historical asset/anomaly data

• Maintainer/analyst note entry

• False anomaly and undetected warning flags to support model training

• Asset hierarchy roll-up of anomalies, notes, and flags

• Lays a foundation for prediction and true condition-based maintenance

SQL

Store

NoSQL

StoreSQL

Store

SQL

Store

Asset Hierarchy

Admin

ML Anomaly

Detection

Asset Analytics

Dashboard


Train Carriage ManufacturerWelding Robot, Milling Analytics


Monitor operations, predict quality/equipment issues that slow line output

VALUE TO CUSTOMER

• Single-pane-of-glass monitoring across three factories

• Reduce scrap through predictive quality for welding robots

• Optimize milling performance through process analytics

• Perform asset analytics and historical data mining across operations

SQL

Store

NoSQL

StoreSQL

Store

SQL

Store

Asset Hierarchy

Admin

Cycle Time

Analytics

OEE Dashboards


Rolled Steel ProcessingSlitter Station

Crane Coil ArborKnife/

Spacer

Assembly

Lumada

Platform


Automate quality inspection, optimize equipment/operator efficiency

VALUE TO CUSTOMER

• Enable more consistent and efficient cut-width checks with automation

• Optimize operator and order scheduling with cycle time analysis

• Enhance crane safety by predicting crane cable failure

• Monitor and detect equipment anomalies to increase uptime and quality

• Minimize shipping errors by detecting incorrect bar code label placement

SQL

Store

NoSQL

StoreSQL

Store

SQL

Store

Lumada

studio

Lumada

analytics

Lumada

core


OEEMonitoring

Anomaly

Detection

Predictive

Maintenance

Predictive

Quality

The Digital Journey

Dynamic Scheduling

DigitalThread


Operational View


unseen equipment

and line problems

Preventative to

Condition-Based

Maintenance

Minimize losses by

predicting quality

problems

Optimize processes:


Full lifecycle

production insights

Round Table Discussion

▪ By 2020, Discrete Manufacturing, Transportation & Logistics and Utilities industries

are projected to spend $40B each on IoT platforms, systems, and services.

▪ McKinsey predicts the IoT market will be worth $581B for ICT-based spend alone

by 2020, growing at a Compound Annual Growth Rate (CAGR) between 7% and

15%.

▪ Industrial products lead all industries in IoT adoption at 45% with an additional 22%

planning to adopt IoT in the next 12 months according to a recent Forrester survey.

▪ The Industrial Internet of Things (IIoT) market is predicted to reach $123B in 2021,

attaining a CAGR of 7.3% through 2020.

▪ Harley Davidson reduced its build-to-order cycle by a factor of 36 and grew overall

profitability by 3% to 4% by shifting production to a fully IoT-enabled plant

IOT Is not a Hype – Its here already!


Insights for IOT Strategy


Security is a critical part

of an IIOT strategy


OEEMonitoring

Anomaly

Detection

Predictive

Maintenance

Predictive

Quality

The Digital Journey

Dynamic Scheduling

DigitalThread


Operational View


unseen equipment

and line problems

Preventative to

Condition-Based

Maintenance

Minimize losses by

predicting quality

problems

Optimize processes:


Full lifecycle

production insights

Industry Roundtable Event

Thank You

IOT & Asset Management

iot & asset management...hitachi digital solutions & services hitachi smart cloud solutions...

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