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THE VALUE OF IOT AS PART OF AN ORGANIZATIONS DIGITAL TRANSFORMATION Sohvi Rajamäki Schneider Electric, General Manager Baltics

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Page 1: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

THE VALUE OF IOT AS PART OF AN

ORGANIZATIONS DIGITAL TRANSFORMATION

Sohvi Rajamäki

Schneider Electric, General Manager Baltics

Page 2: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Page 2Confidential Property of Schneider Electric |

Transformation

No Internet, only GPS

Traditional way from A to B

Internet + real time decisions

More efficiency, more savings

Page 3: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

By 2025,

there will be

almost

more connected

things than people

in the world.10x

(Cisco)

Page 4: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Page 4Confidential Property of Schneider Electric |

Business challenges Digital OpportunitiesUnravelled

through

Cloud

Digital

Twin

AR/VR

Analytics

Machine

Learning

IoT

Mobility

Big Data

Digital Business TransformationLeading

to

Reliability

& Performance

Efficiency

& Profitability

Sustainability

& Transformation

Safety

& Security

EcoStruxure Plant SolutionsAddressed

by

Generation

Shift

Commodity

Prices

Immediate

ROI

CapEx

& OpEx

Market

Regulations

Ageing

Infrastructures

Optimized

Assets

Digitized

Products

Agile

Operations

Empowered

Users

Digital technologies open unprecedented opportunities to

increase productivity and efficiency

Page 5: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Making the digital transformation simple

reactive to proactive

of data is utilized today.

Unlimited benefits, help your business go from…

on-site to mobile and remote

site by site toenterprise

limited to a new scaleof computing andartificial intelligence

~10%

¹IDC report

Page 6: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

What makes a successful digital transformation

Domain expertise,

solid architecture, and

a successful platform

Ecosystem and open architecture

support of heterogenous environments

Easy to get started with

cost-effective scaling

Integration of industrial and

engineering software

Page 7: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

What makes a successful digital transformation

Domain expertise,

solid architecture, and

a successful platform

Page 8: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

(Floor space)

(Electrical room)

Plant

Machine (Factory)

Apps,

Analytics

& Services

Edge

Control

Connected

Products

End-to-end offering for industrial automation

and energy management

Page 9: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Page 9Confidential Property of Schneider Electric |

Page 10: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Schneider Electric factory in Riga

Esmikko Integrated

Security and Access

Control

Fire Alarm System with

Esgraf graphical controlBuilding Management System and

Power Monitoring Expert System

62% savings in lighting energy consumption

50% less consumption in multi devices usage

ventilation, cooling and heating)

ISO 5001 energy management

* Production statistics from monitoring

Page 11: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

What makes a successful digital transformation

Easy to get started with

cost-effective scaling

Page 12: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Discover EcoStruxure Machine Advisor

TRACK MONITOR FIXMachine maintenance

Page 13: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Page 13Confidential Property of Schneider Electric |

Studio to cut video to run

from start to 0.15

And then from 01:41 to

the end

Page 14: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

What makes a successful digital transformation

Integration of industrial and

engineering software

Page 15: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Project phase 2-6 years Operation phase up to 50 years

CapEx OpEx

BuildDesign Operate Maintain

⅓ of project spend ⅔ of project spend

Page 16: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Lidl logistic center in Finland

100% renewable energy sources

CO2 emissions cut by 40%

The logistics center uses 50% less energy than

current two operational centers

BREEAM excellence award for the building

Page 17: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

What makes a successful digital transformation

Ecosystem and open architecture

support of heterogenous environments

Page 18: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

The ecosystem in actionA powerful virtuous circle

Connected EcoStruxure

installed base

Increase # of

developers

More

applications

on the market

Value increases for customers

More assets connected and

managed

Digital twin of assets and

processes

Market expansion

Page 19: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

The value of intuitive industries digitized

Up to

~65%average (30%)

Up to

-50%CapEx (integration)

-30%OpEx

Up to

50%fewer incidents

Aiming at

Energy efficiency Productivity Reliability and

safety

Sustainability

0carbon emissions

*From monitoring and analysis of data

Page 20: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Page 20Confidential Property of Schneider Electric |

Manufacturing accounts to more than 20% of total GDP in Lithuania

It also generates almost 80% of Lithuanian Export

Lithuania is rated No.1 in Europe and No.2 in the world (after China) on the

attractiveness for global manufacturing according to Manufacturing Risk Index (2018)“

Lithuanian perspective

Major Challenge for Lithuania is to lower dependence on

manufacturing of low-value-added products

Source: Lithuanian industry digitalization roadmap 2019-2030

Page 21: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Additive manufacturing

Industrial Robots

Mechatronics

Sensors

Photonics

Artificial intelligence

Most Influential Technological Trends for Lithuanian

Industry Digitalization

Cyber security technologies

Virtual/Augmented/Mixed Reality Technologies

Internet of Things

Automated Warehouse Management Systems

Cloud manufacturing

Big Data

Source: Lithuanian industry digitalization roadmap 2019-2030

Page 22: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source:

Digitization opportunities identified for

End-user value chains

Machinery and equipment

Timber and furniture

Electrotechnics

Plastics

Food

Solution providers value chains

Information and communication technologies

(ICT)

Automation and robotics

Digital manufacturing processes technologies

(electronic systems and components

providers)

2019.05.30

22Source: Lithuanian industry digitalization roadmap 2019-2030

Page 23: THE VALUE OF IOT AS PART OF AN ORGANIZATIONS …Mobility Big Data Digital Business Transformation Leading to Reliability & Performance Efficiency ... Lithuanian perspective ... Source: