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Leadership for the Next Industrial Revolution Driving the Digital Enterprise in Product Development and Manufacturing Ralf Leinen : Vice President, Siemens Digital Factory 6 th CSIR Conference, October 6 th , 2017

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Page 1: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

Leadership for the Next

Industrial Revolution Driving the Digital Enterprise in Product

Development and Manufacturing

Ralf Leinen : Vice President, Siemens Digital Factory

6th CSIR Conference, October 6th, 2017

Page 2: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 2 siemens.com

Page 3: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

Digitalization

changes

everything ”

The next trillion dollars will be

earned with data – for our customers

and for our industries. Michael Dell, founder of Dell Inc. ”

Digital is the main reason just over

half of the companies on the Fortune

500 have disappeared since the year

2000. Pierre Nanterme, CEO Accenture

Page 4: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 4 siemens.com

From Yellow Pages … From taxi …

From record store …

New business models in the internet age

are disrupting complete markets

… to ride sharing … to marketplace

… to e-book … to streaming

From bookstore …

Page 5: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 5 siemens.com

Demographic change

Urbanization

Climate change

Nationalization

Five Megatrends shaping our world

Digital transformation

Trend to bring

investment back

Growing and aging

population

Cities as main driver

of GDP growth

Global warming and

weather extremes

Contribution to global GDP growth,

2007-20253, in %

World population1, in bn Annual mean temperature

variations 1950-20142 (in °C)

Connected devices5, in bn

-0.3

0

0.3

1950 1970 1990 2010

0.3

-0.3

Other cities

and rural areas 38%

Cities >10mn

5mn – 10mn

2mn – 5mn

150k – 2mn

50

23

9

2012 2020 2016

Exponential

growth of

connected

devices ...

… and

digital data6

2.8 ZB 40.0

ZB ZB = Zettabytes = 109 Terabytes

9.00

0.16 1.92 0.83

6.10

0.12

2015

1.25 -0.01 0.00 1.36

2050

Developing

countries

Industrial

countries 15-65

65+

0-14

2015 2009 2013 2011

-19%

+14%

Imports vs. GDP4)

FDIs total5)

1) UN World Population Prospects (2012) | 2) Met Office Hadley Centre observations (2014) | 3) McKinsey Global Institute Cityscope (2011) | 4) UNCTAD: Import Flow merchandise: Total trade and share / GDP

| 5) 2008-2014: UN Conference on Trade and Development: FDI inward flow ; 2015: UNCTAD Global Investment Trends Monitor No.22

| 6) Cisco: The Internet of Everything (2013) | 7) IDC: The Digital Universe (2012)

Page 6: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 6 siemens.com

From Industry 1.0 to Industry 4.0,

an initiative of the German industry sponsored by the German

Government

First

Industrial Revolution

Second Industrial Revolution

Third

Industrial Revolution

Fourth

Industrial (R)Evolution

Based on the introduction

of mechanical production

equipment driven

by water and steam

power

Based on mass pro-

duction achieved by

division of labor concept

and the use of electrical

energy (electrification)

Based on the use of

electronics and IT to

further automate

production (automation)

… driven by Digitalization,

Integration and enhanced

Flexibility

1784: First mechanical loom 1870: First conveyor belt,

Cincinnati slaughterhouse,

1908: Ford T-Model

1969: First programmable

logic controller (PLC)

Modicon 084,

1800 1900 2000

Time

2025

Characteristics

• Humans, devices and systems are

connected along the entire value

chain

• All relevant information is available

in real-time – across suppliers,

manufacturers and customers

• Parts of the value chain can

constantly be optimized with

respect to different criteria, e.g.,

cost, resources, customer needs

Page 7: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 7 siemens.com

Our customers have essential requirements –

throughout the manufacturing industry

Security

Speed Flexibility Quality Efficiency

Page 8: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 8 siemens.com

Technological forces transforming industry

Changing the way

products are realized

Advanced

robotics

Additive

manufacturing

Intelligent

automation

Changing the way

products come to life

System of

systems

Intelligent

models

Generative

design

Changing the way

products evolve

Knowledge

automation

Big data

analytics

Cloud

ecosystems

Page 9: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 9 siemens.com

Technological forces transforming industry

Advanced

robotics

Additive

manufacturing

Intelligent

automation

System of

systems

Intelligent

models

Generative

design

Knowledge

automation

Big data

analytics

Cloud

ecosystems

Ideation Utilization Realization

Manufacturers must embrace the technologies

and transform their business into a digital enterprise

Page 10: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 10 siemens.com

Applied across the entire value chain

Ideation Utilization Realization

Services Production

execution

Production

engineering

Production

planning

Product

design

Page 11: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 11 siemens.com

A common digital thread enables

continuous business transformation

Ideation Utilization Realization

Services Production

execution

Production

engineering

Production

planning

Product

design

Page 12: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 12 siemens.com

By compressing the innovation lifecycle

Ideation Utilization Realization

Services Production

execution

Production

engineering

Production

planning

Product

design

Page 13: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 13 siemens.com

Siemens’ approach to integrating

and digitalizing the entire value chain

Cloud-based, open IoT operating system: MindSphere

Third party applications

Suppliers and logistics

Collaboration platform: Teamcenter

Services Production

execution

Production

engineering

Production

planning

Product

design

Analyze assets as they perform with MindSphere and

feed back insights to continuously optimize the value chain

Page 14: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 14 siemens.com

Create a powerful Digital Twin of the entire value chain

Cloud-based, open IoT operating system: MindSphere

Third party applications

Suppliers and logistics

Collaboration platform: Teamcenter

Services Production

execution

Production

engineering

Production

planning

Product

design

Product

design

Production

planning

Production

engineering

Production

execution

Services

Collaboration platform: Teamcenter

Suppliers and logistics

Third party applications

Cloud-based, open IoT operating system: MindSphere

Product

design

Production

planning

Production

engineering

Production

execution

Services

Page 15: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 15 siemens.com

Page 16: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 16 siemens.com

Product design

Design and

simulate

the product

NX CAD/CAE/CAM

1 2 3 4 5

Page 17: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 17 siemens.com

Product design

Simulate

the physical

behavior

Simcenter

1 2 3 4 5

Page 18: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 18 siemens.com

Product design

Perfect your

product in the

virtual world

NX CAD/CAE/CAM

1 2 3 4 5

Page 19: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 19 siemens.com

Product design

Design and

simulate

electronic

systems

Mentor Graphics

1 2 3 4 5

Page 20: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 20 siemens.com

Product design

Develop,

simulate,

validate,

and manage

embedded

software

Polarion ALM

1 2 3 4 5

Page 21: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 21 siemens.com

Digital Twin

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

Digital Twin of

the product

Page 22: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 22 siemens.com

Production planning

Plan and

validate your

production

process

Teamcenter

Manufacturing

1 2 3 4 5

Page 23: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 23 siemens.com

Production planning

Simulate

working

conditions

for humans

Tecnomatix

Process Simulate

1 2 3 4 5

Page 24: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 24 siemens.com

Production planning

Simulate work

processes

for robots

Tecnomatix

Process Simulate

1 2 3 4 5

Page 25: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 25 siemens.com

Production planning

Simulate and

optimize your

production

processes

Tecnomatix

Plant Simulation

1 2 3 4 5

Page 26: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 26 siemens.com

Production engineering

Automatically

generate the

PLC code for

TIA Portal

Automation Designer

1 2 3 4 5

Page 27: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 27 siemens.com

Production engineering

Validate the

PLC code

in the virtual

world

Tecnomatix

Process Simulate,

PLCSIM Advanced,

TIA Portal

Digital Twin

of SIMATIC

S7-1500

1 2 3 4 5

Page 28: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 28 siemens.com

Fast and

efficient

engineering

and

commissioning

Totally Integrated

Automation Portal

Production engineering

Digital Twin

of SIMATIC

S7-1500

1 2 3 4 5

SIMATIC

S7-1500

Page 29: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 29 siemens.com

Digital Twin

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

Digital Twin of

the product

Digital Twin of

the production

Page 30: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 30 siemens.com

Production execution

Schedule

your work

operations

SIMATIC IT Preactor

1 2 3 4 5

Page 31: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 31 siemens.com

Production execution

Easily process

work

operations

SIMATIC IT

Unified Architecture

1 2 3 4 5

Page 32: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 32 siemens.com

Production execution

Run quality

inspection

operations

SIMATIC IT

Unified Architecture

1 2 3 4 5

Page 33: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 33 siemens.com

Production execution

Efficient

and secure

production

with TIA

SIMATIC, SINUMERIK,

SIMOTION, SIMOTICS,

SINAMICS and SIRIUS

1 2 3 4 5

Page 34: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 34 siemens.com

Services

MindSphere

Let your

products and

your production

speak to you

MindSphere –

the cloud-based, open

IoT operating system

1 2 3 4 5

Page 35: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 35 siemens.com

Digital Twin

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

feed back insights to continuously optimize product and production

MindSphere

Page 36: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 36 siemens.com

Automation

Systems

Data Analytics

Product Lifecycle

Management

Manufacturing

Operations Management Collaboration

Platform

Page 37: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 37 siemens.com

Rolls Royce

50 Global Plants : Machining & Assembly

PLM / MOM in

Closed-Loop

reduces engine

assembly time

by 60 hours

Bill of Process

Page 38: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 38 siemens.com

Maserati : FIAT Chrysler

70,000 different

product

combinations

are produced

3x faster with

30% decrease

in Time to

Market

Page 39: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 39 siemens.com

We embrace digitalization in our own operations

1 per second

99.99895%

A growing portfolio of

1300 products

We produce more than 1

million products per month –

one per second.

digitally designed for

60,000 different

customers.

Quality level of

or 10.5 defects per

million.

Speed Flexibility Quality

Page 40: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 40 siemens.com

Page 41: Leadership for the Next Industrial Revolution · Global warming and weather extremes Contribution to global GDP growth, Imports vs 2007-20253, in % World population1, in bn Annual

© Siemens AG 2017

April 2017 Page 41 siemens.com

Thank you