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The value of a connected factory
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The value of a connected factory
1.
Accelerate Growth and
Improve Operations to Boost Visibility and Agility The Value of a Conneted factory Hazid Mangroe Cisco IOE SalesLead 11 November 2015
2.
2C97-735861-00 © 2015
Cisco and/or its affiliates. All rights reserved. Cisco Confidential Waar gaan we het over hebben Introductie Cisco Trends De waarde van IOE Ecosystem van partners Next Steps
3.
3C97-735861-00 © 2015
Cisco and/or its affiliates. All rights reserved. Cisco Confidential Two Cables and a Desire to Connect
4.
Cisco Confidential 4©
2013-2014 Cisco and/or its affiliates. All rights reserved. Intelligent Connections at the Heart of Cisco Intelligent Connections Internet of Everything Digitize the World Connecting: • People • Process • Data • Things Connectivity Digitize Access to Information • Email • Web Browser • Search Immersive Experiences Digitize Interactions (Business & Social) • Social • Mobility • Cloud • Video Networked Economy Digitize Business Process • E-commerce • Digital Supply Chain • Collaboration
5.
Cisco Confidential 5©
2013-2014 Cisco and/or its affiliates. All rights reserved. The image part with relationship ID rId5 was not found in the file.
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6C97-735861-00 © 2015
Cisco and/or its affiliates. All rights reserved. Cisco Confidential Shifting Manufacturing Trends Are Transforming the Industry Gain Share with LoB in FY16! (Momentum: Bookings Growth = 2x TAM) FY16-18 TAM: Products $64.5B, CAGR +5.2% Services $64.6B, CAGR +5.4% New IoT $6.2B, CAGR +16% Digital Disruption Across the Value Chain Bottom Line: Manufacturers Seek Speed and Simplicity, with New Innovations The image part with The image part with relatio The image The image Th e im The image Supply Chain Demand Chain Right-Shoring Capacity Rationalizations Velocity, Variation, Volume … Faster Inventory Turns New Product and Service Innovations, Digital Business Models Flexibility with Agility for Mass Customization
7.
7C97-735861-00 © 2015
Cisco and/or its affiliates. All rights reserved. Cisco Confidential Markets Are Driving New Business Priorities How can I better manage my global supply chain? How can I reduce downtime? I need to improve product quality How do I improve workforce productivity? How can innovation drive profits? I need to achieve real-time visibility How can I introduce new products faster?
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8C97-735861-00 © 2015
Cisco and/or its affiliates. All rights reserved. Cisco Confidential It’s a New Way of Thinking about Manufacturing IDC FutureScape: Worldwide Manufacturing 2015 Predictions: “Our next phase of investment in the factory of the future includes a more transparent manufacturing model. … not only to advance our cost competitiveness, but to drive a different conversation with our customers and suppliers.” - Rob Goldiez, Scott Fetzer, a Berkshire Hathaway company "If you went to bed last night as an industrial company, you're going to wake up today as a software and analytics company.” - Jeff Immelt, CEO, GE “…the lines between hardware, software, and services are blurred or are disappearing” - Tim Cook, CEO, Apple
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Cisco and/or its affiliates. All rights reserved. Cisco Confidential Digital Disruptors Are Changing the Game But up to 40 percent of manufacturers may be damaged by digital disruptors 58 percent of CEOs see tech change as a top challenge They can innovate fast, and raise the stakes CPG manufacturers among those with maximum potential for disruption The winners will be those who can harness digital for today’s new priorities Digital Vortex: How Digital Disruption Is Redefining Industries,” Global Center for Digital Business Transformation, June 2015 18th Annual PwC CEO Survey, 2015
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Cisco and/or its affiliates. All rights reserved. Cisco Confidential Unleashing Dramatic Business Outcomes Lower Downtime Reduce Defects Reduce Energy Faster NPI Maximize OEE Lower Inventory • Automation Network • Analytics and Big Data • Wireless with LBS • Wireless • Connected Machine • Automation Network • Energywise • Automation Network • Plant Floor Virtualization • Wireless • Collaboration “Reduced labeling error rate by 16%” “Achieving 20% energy reduction with real time visibility.” “Shaved 10-20% off NPI cycle time” “Increased OEE mid 70s to high 80s” “Reduced breaker component tire loss by 20%.” Multi-National Brewery “Experienced $40 million downtime reduction” Make Money Save Money
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Cisco and/or its affiliates. All rights reserved. Cisco Confidential What If You Could Drive Better Business Outcomes? The Real Economic Value of Digital Manufacturing is Immense Reduced Downtime 48% Unplanned downtime down from 11% to 5.8% Reduction in Defects 49% Defect rate down from 4.9% to 2.5% New Product Introduction 23% New product introduction cycle time reduced from 15 to 11 months OEE Improvement 16% Average OEE improved from 74% to 86% Improved Inventory 35% Inventory turns increased from 14 to 19 Reduction in Energy Use 18% Annual energy cost down from $8.4M to $6.9M Source: SCM World/Cisco “Smart Manufacturing and the Internet of Things 2015” survey of 418 Manufacturing Business Line Executives and Plant Managers across 17 vertical industries.
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Cisco and/or its affiliates. All rights reserved. Cisco Confidential But To Get There, You Need to Span the Entire Supply Chain Off-Line Connected Factory Connected Enterprise Supply Chain Orchestration + 16% OEE + 23% NPI - 48% Downtime - 49% Defects - 35% Inventory • Factory Network • Factory Security • Factory Wireless • Analytics and Big Data • Virtualization and Compute • Connected Machines • Factory Collaboration • Location Services • Supply Chain Collaboration (SXP) • Design Collaboration
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Cisco and/or its affiliates. All rights reserved. Cisco Confidential One is the Loneliest Number Sports & Entertainment Smart+Connected Communities Connected Energy Connected Industries Connected Transportation * * * * *
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Cisco and/or its affiliates. All rights reserved. Cisco Confidential From Use Case to Business Value Potential Use Cases (Long List) ü In place today or already underway X Not interesting…at least at this time (too complex;; value is not clear;; timing is not right;; etc.) ü Interesting…worthy of further analysis 1 2 3 4 5 6 7 8 9 10 Prioritization (based on business value;; complexity to implement;; dependencies;; etc.) 1 2 4 6 Select 3-4 Use Cases for further study: ü Architecture & Design ü Business Value Assessment ü POCs (lab) …and potentially… ü Pilots / Wider Deployment
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