ot meets it: vertical integration as key value driver for industry 4.0

OT Meets ITVertical Integration as Key Value Driver for Industrie 4.0

Oliver EdingerVice President and Head of Internet of Things/Industrie 4.0 GermanySAP Deutschland SE & Co. KG

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

The IIoT (Industrie 4.0) is about Devices to Insight to Outcomes


Source: Forrester Consulting on Behalf of SAP, May 2015

Bottom Line Contribution Requires Horizontal and Vertical Integration

1

ERP

MES

SCADA

EquipmentLayer

ManufacturingCompany

Example Scenarios:

2

2. Machine to Machine (M2M)Autonomous equipments

1

1. Shop floor to Top floorIntra company vertical integration

E-CommerceCustomer

3

3. Customer Integration- Direct integration of e-shops- Usage pattern improvement

3

Service Provider

IoT Apps andAnalytics

5. Analytics- Predictive maintenance- Predictive quality / Reduced scrap- OEE- Energy Mgmt

5

5

Quality Operator

5

Supplier

4. Manufacturing Collaboration- Track and Trace- Genealogy / Recipe- Direct replenishment- Asset Intelligence Network

Mfg Collaboration4

4


Top Line Contribution Requires New Digital Products and Services


Enabling the IIoT for Business with an SAP Platform

Slide contains current and planned features© 2016 SAP SE or an SAP affiliate company. All rights reserved.

PLC

Historian

MES

Database

SCADA

Home Grown

IPC

OPC

On premiseIoT platform

Local Backends

Local Storage

and Non-SAP;

External Services& Sources

…

(Web-)Socket

MQTT

JSON

http

WSDL

JDBC

REST

Cloud-basedIoT platform

MovingAssets

SmartHome

Cloud and on Premise

EdgeC

omputing

Operational Technologies (OT) Layer IoT Layer IT Layer

Data Lake I Analytics I Mobile Apps I CustomDevelopment I Process Integration

Data Lake I Analytics I Mobile Apps I CustomDevelopment I Process Integration

No Scale-out of the IIoT w/o Edge Computing Capabilities


IIoT Platforms Require Multi Tiered Storage Despite Edge Computing

Slide contains planned features.

Operational Technologies Layer (OT) IoT Layer IT Layer

Local Backends

Local Storage

and Non-SAP

External Services& Sources

Cloud and on Premise


PLC

Historian

MES

Database

SCADA

Home Grown

IPC

OPC

…

(Web-)Socket

MQTT

JSON

http

WSDL

JDBC

REST

MovingAssets

SmartHome

On premiseIoT platform

Cloud-basedIoT platformEdge

Com

puting

Example: SIEMENS – Industrial IoT Platform

Company

Solution Benefits

Siemens AG (industry sector),the leading global producer ofIndustry Automation and DriveTechnologies

Situation: Siemens wants to offer an open cloud-basedplatform (MindSphere) as a basis for an industrialecosystem. This will enable OEMs, app developers andcustomers to integrate devices and to offer data basedservices.

• Siemens Industrial Service Backbone (ISB)• HANA Cloud Platform for the Internet of Things• SAP analytical tools and apps• IoT apps from Siemens and partners• Business model: OEM PaaS

• Combine the best of both worlds• A unique, end-to-end and global IoT offering for OEMs,

app developers and industrial customers• Set a new industrial standard to access and make

sense of machine data

Technology and Business Innovation


Example: ifm electronic – Ready-made Sensor Integration

Company

Solution

Technology Innovation

Benefits

ifm electronic, an industrial automationtechnology manufacturer and producer ofsensors

Situation: intention to grow the business through built-in SAP integration

• SAP Plant Connectivity (PCo), embedded in the ifmproduct Connectivity Port

• Providing integration to SAP solutions like• SAP MII/ME• SAP Business Suite• SAP HANA

• Business model: OEM• Add value to the technology offering• Expand the business through innovation

Sensors

Connectivity

IFM-Products

LR-Agent LR-Agent LR-Agent LR-Agent

Line Recorder

EfficiencyObserver

SMARTObserver

SetupStationMachine

SAP-Products

Connectivity Port w/ SAP Plant Connectivity (SAP PCo)

Plant

Enterprise

SAP MII SAPME

SAPEWM

SAPNetWeaver

SAP ERP

SAPHANA


Example: Koehler Paper Group – Predictive Quality

Company

Benefits

Koehler Paper Group is a producer ofhigh-quality special papersSituation: Target to ensure a stable high quality in paperproduction

• Reduce waste and rework• Faster “Time-to-Quality” for small lot sizes and first

time materials• Superior product quality• Detailed automated quality documentation

Solution

Process Innovation

SAP ERP

SAP ManufacturingExecution

SAP HANA

PLC1 PLC2

Quality Tests

Defects

Realtime Quality Prediction

Data Model

SAP InfiniteInsight

Algo-rithms

User Interface

SAP Event StreamProcessing (via SAP PCo)

Data Selection

Visualization

Statistical Analysis

Expert Review Step-by-step root

causeanalysis

“Predictive Qualitymeans we calculate inreal-time what thequality of the productthat is currently inproduction will be”


The IIoT Requires Innovation Networks

SAP’s Toolsand Methodologies

to Drive Change

Think Bold- Design Thinking

- Business and ArchitectureAdvisory

- Global Innovation CenterNetwork

Start Small- Hackathons

- Rapid PrototypingEnvironments

- Starter Kits

Scale Fast- Application Mgmt Services

- Global Cloud Infrastructure

SAP’s Long Term Partnership ApproachSAP’s Global Network of

Domain Expertise Partners(Excerpt, in no specific order)


Oliver EdingerVice PresidentHead of IoT/I4.0 Germany

SAP Deutschland SE & Co. KGHasso-Plattner-Ring 769190 Walldorf

M +49 160 90 432 886T +49 6 22 77 49131E [email protected]

Additional Information and Contact


http://www.sap.com/iot

@SAP_IoT

SAP Internet of Things

SAP Internet of Things

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Confidential


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