The document discusses digital transformation and Industry 4.0. It defines digital business transformation as transforming and recoding business processes and models, changing culture to prioritize efficiency and innovation, and creating user-focused experiences. Industry 4.0 is described as the digitization of the manufacturing sector driven by increases in data, computing power, connectivity, analytics capabilities, and improvements in transferring digital instructions to the physical world. Successful digital transformation requires reimagining business, processes, managing data, security, and connectivity to drive analytics and applications.
2. Trasformazione Digitale e Industria 4.0:
La Quarta Rivoluzione?
Matteo Masi
mamasi@cisco.com
@masimatteo
3. from 2010 to 2020,
the digital universe will grow
Source: IDC Digital Universe in 2020 Report
The Digital Vortex
4. Cosa si intende
per
Digital Business
Transformation?
Trasformare e
Ricodificare i
processi ed i modelli
di business
Cambiare la cultura
e responsabilizzare
le persone verso
efficienza ed
innovazione
Creare un ambito
che agevoli
l’utilizzatore e
l’experience
complessiva
Digital business is the creation of
new business designs by blurring the
digital and physical worlds*
-Gartner
9. Asset Monitoring
Business Problems Solved
• Value from lighting up “dark” assets?
• What’s their location?
• What’s their condition?
• Are they secure?
IoE
Asset Monitoring
M2M
(IoT)
P2P
(Collaboration)
M2P
(Data and
Analytics)
10. Asset Monitoring
IoE
M2M
(IoT)
P2P
(Collaboration)
M2P
(Data and
Analytics)
Challenge
• Long tire assembly search times by operators increased cycle
times, decreased labor optimization, and noncompliance with
production schedules. High scrap rate associated with lost
carriers.
• Increase production and efficiency in manufacturing plants
Solution
• Wi-Fi sensors to make handlers/truckers/managers to monitor
production
• Integrate with inventory tracking system and search for components
• Alert low inventory on plant floor
Business Value
• Increased tire production by 13%
• Cut wasted tire components by 20%
• Payback n 6 months
11. Combinando Connessioni
IoE
Challenge
• Productivity: Improve production without increasing headcount or
other resources
• Optimize Business Process: Create greater visibility and
intelligence in underground operations
Solution
• Wi-Fi network combined with sensors on personnel and
equipment, instant video collaboration among miners and
engineers underground, on-site supervisors, and Toronto-based
experts
Business Value
• Improvement in mine’s production, improved safety
M2M
(IoT)
P2P
(Collaboration)
M2P
(Data and
Analytics)
+
Business Transformation in Action
Changing the dynamics of how the business is run:
Operational Excellence and Productivity
15. Combinando Connessioni
IoE
Challenge
• Management and monitoring of distributed
healthcare lab systems and solutions
• Speed and efficiency of interventions
• Visibility and intelligence in the operations
Solution
• Machine-to-machine (M2M) applications to extend the
management and monitoring capabilities
Business Value
• Reduction of on-site interventions and related costs
• Predictive modeling/analysis for maintenance
• Improved visibility
M2M
(IoT)
P2P
(Collaboration)
M2P
(Data and
Analytics)
+
Business Transformation in Action
Changing the dynamics of how the business is run:
Operational Excellence
16. Combinando Connessioni
Challenge
• Paper Only-Local (expert) Visibility of the Machine Operations
• Slow understanding of production dis-alignment in speed or quality
• Speed and efficiency in team and different organizations collaboration
Solution
• Full IT/OT integration through Industrial Ethernet capabilities to
achieve the operational
• Machine paperless real-time information
anytime/anywhere/anydevice
• Machine-to-machine (M2M) applications
• P2P Collaboration (cross team and remote diagnostics)
Business Value
• Productivity
• Visibility, Speed of Resolution, Reduction of on-site non-real-
time interventions and related costs
• New business processes: assistance production machines
remotely over the network
Business Transformation in Action
Changing the dynamics of how the business is run:
Operational Excellence and
Competitive Differentiation
+ +
IoE
M2M
(IoT)
P2P
(Collaboration)
M2P
(Data and
Analytics)
Highest-Value IoE
Business Models
and Innovations
Highest-Value IoE
Business Models
and Innovations
17. Digital Manufacturing Business Outcome
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?
18. Digital Manufacturing Business Outcome
Reduction in
Defects
49%
Defect rate
down from
4.9%
to 2.5%
Reduced
Downtime
48%
Unplanned downtime
down from 11%
to 5.8%
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
The Real Economic Value is Immense
New Product
Introduction
23%
New product
introduction cycle
time reduced from 15
to 11
Source: SCM World/Cisco “Smart Manufacturing & the Internet of Things 2015” survey of 418 Manufacturing
Business Line Executives and Plant Managers across 17 vertical industries.
“Big value opportunity. We believe Cisco can help dramatically improve margins and profitability in manufacturing.”
19. Digitalizzazione come Rivoluzione (Industriale)?
18th Century
Steam
19/20th Century
Mass Production
70’s
Robots
Today
Digitization + Smart
Automation
Technology
Progress
Smart
Devices
20. Industry 4.0
Digitization of the manufacturing sector, driven by four disruptions:
1. Astonishing rise in data volumes, computational power, and connectivity
2. Emergence of analytics and business-intelligence capabilities
3. New forms of human-machine interaction such as touch interfaces and
augmented-reality systems
4. Improvements in transferring digital instructions to the physical world, such as
advanced robotics and 3-D printing.
21. Gestione del Dato
Memoria e Correlazione
2013 2020
4.4
ZB
44
ZB
L’ Universo Digitale è
immenso
e Cresce in modo
esponenziale
Oggi ne analizziamo solo l’1% - IDC
90% dei dati mondiali è stato creato negli ultimi 2 anni
Si sono creati più dati nel 2012 che nei precedenti 5.000 anni
Entro il 2020 il 40% dei dati arriverà dai sensori
25. Entro il 2020, l’80 percento delle realtà industriali tedesche avranno digitalizzato
l’intera supply chain e nel prossimo quinquennio investiranno il 3.3%del loro giro
d’affari annuo per trasformarsi in industrie 4.0.
Source: PWC, Dec 2014
26. Re-immaginare totalmente il proprio business
30%
#1
delle iniziative di digitalizzazione avranno successo
causa di insucesso…incapacita’ di re-immaginare il proprio
business
27. Come?
Siloed Networks
Data Overload
Need to automate extraction of insights and resulting actions
Complex Integration
Expanded Security Vulnerability
Time
BusinessValue
Business
Processes
Manage Data
from Edge to Cloud
End-to-End Security
Unified Connectivity
Analytics
and Applications
29. La Comunicazione fra noi ed il mondo
non e’ qualcosa che ci distingue dal resto della
natura.
Le cose del mondo interagiscono in
continuazione
l’una con l’altra e, nel fare cio’, lo stato di
ciascuna porta traccia dello stato delle altre
con cui ha interagito.
In questo senso esse si scambiano di continuo
informazione le una sulle altre
“
”
Carlo Rovelli
(fisico e filosofo della scienza
contemporaneo)
(30 seconds max)
In fact, IDC projects that by 2020 the digital universe will reach 40 zettabytes (ZB), which is 40 trillion GB of data, or 5,200 GB of data for every person on Earth.
This amount exceeds previous forecasts by 5 ZBs, resulting in a 50-fold growth from the beginning of 2010.
Lets begin with the million-dollar question – Wht is Digital Business Transformation?
Gartner defines this as “Digital business is the creation of new business designs by blurring the digital and physical worlds”
To transform into a successful digital business you will need 3 critical capabilities
Transform Processes and Business Models which leads to faster time to market and leaner operations
Explosion of connected devices disrupts value chains paving the way for Business Model disruption. By 2020, one million new devices will go online every hour which enabling quicker automated decisions driving efficiencies to a new level
Personalize Customer/Citizen experience which leads to increased customer loyalty and greater insight to predict future purchases
Why so?
Accenture surveyed ~13,000 consumers in 33 different countries and found that 66% i.e 2 out of every 3 consumers switched providers due to poor customer experience and by 2016 Gartner predicts that “89%i.e 9 out of every 10 companies will compete primarily on the basis of the customer experience
Empower their workforce for efficiency and innovation which leads to increased productivity and better employee retention
Again, why does this matter?
Gallup surveyed over 1000 employees each in about 142 countries representative of 98% of the world population and found that about 87% of employees are disengaged and when companies address this dissatisfaction and bring it town to 10%, their earnings per share jumps by a whopping 50%
These changes are forcing companies to become more digital when people and things interact to conduct business
Source:
Digital Business Definition
Gartner IT Glossart - http://www.gartner.com/it-glossary/digital-business/
18M quote
Gartner G00293702, 30 Oct 2015, Forecast Alert: Internet of Things — Endpoints and Associated Services, Worldwide, 2015
“…Gartner is now projecting shipments of 6.6 billion Internet of Things (IoT) endpoints in 2020 …”
Logic
In 2020 devices shipped = 6600 million
365*24 hours = 6600
Devices shipped every day in 2020 = 6600/365 = 18.082 M
87% quote
Gallup 2013, State of the Global Workplace: Page 7
“…Overall, among the 142 countries included in the current Gallup study, 13% of employees are engaged in their jobs, while 63% are not engaged and 24% are actively disengaged…”
1.5x quote
Gallup 2013, State of the Global Workplace: Page 7
“…Organizations with an average of 9.3 engaged employees for every actively disengaged employee in 2010-2011 experienced 147% higher earnings per share (EPS) compared with their competition in 2011-2012. In contrast, those with an average of 2.6 engaged employees for every actively disengaged employee experienced 2% lower EPS compared with their competition during that same time period…”
66% quote
Accenture 2013 Global Consumer Pulse Survey – Page 10
“…Globally, there is a 4 percent increase in switching due to poor customer service to 66%...”
Sample size: 13168 consumers in 33 countries
89% quote
Gartner Survey Finds Importance of Customer Experience is on the Rise; Marketing is on the Hook, Jake Sorofman, Laura McLellan, Sep 2014
Actual quote – “…The trend is clear: the percentage of companies competing primarily on the basis of customer experience is rising from 36% two years ago to 58% today to a whopping 89% two years from now. The implication is that customer experience has become a strategic imperative.”
Andiamo brevemente a vedere in estrema sintesi alcune potenziali applicazioni e benefici quantitativi sperimentati in alcuni casi reali in cui siamo stati coinvolti di alcuni settori menzionati abitualmente per il M2M …
Sempre perche’ non mi fido solo delle previsioni ed analisi interne, sono andato a vedere cosa dicono I futurologi.
Nello specifico Vito DI Bari, che relativamente a M2M dice alcune cose interessanti;
Conferma la rilevanza di M2M per il fenomeno IoT complessivo
Identifica nove settori chiave di applicazione (qua riportati)
Identifica il M2M come le piattaforme/tecnologie che consentono a sistemi di comunicare con altri dispositivi della stessa tipologia.
Ed in questo senso, se mi e’ consentito, mi trova leggeremente in disaccordo …
… dicevo di non concordare al 100% con l’analisi di Di Bari in quanto la vera sfida ed il vero valore si ottiene da soluzioni che:
Da un lato comportano potenzialmente interazioni fra entita’ di tipologia differente. Di Bari diceva entita’ della stessa tipologia. In realta’, in beneficio e la sfida in termini prosepttici e’ riuscire a connettere e correlare entita’ di tipologia differente. Abbiamo parzialmente visto: non solo connettere parti di un auto e auto con manutenzione o con altre auto, ma connettere piu’ efficemente auto con il sistema e con il contesto in cui operano Smart City, Parking, Mobilita’, Traffico …ecc ecc
In seconda battuta, in quanto il massimo valore ed I veri aspetti di business transformation e di innovazione li otteniamo quando combiniamo nella soluzione connessioni di tipologia differente quindi connessioni M2M, M2P, P2P … La rappresentazione grafica qui proposta ci aiuta a comprendere il concetto , visualizzando l’ambito di massimo valore in quella regione di intersezione di connessioni IoE di tipologia differente.
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When we examine the three types of connections graphically, additional insights emerge.
Solutions that exist in the overlapping areas, especially the middle where all three types of connections come together, generate the most value for businesses.
Let’s look at three examples to show how the business value from IoE increases as different types of connections come into play.
Andiamo ora ad analizzare tre semplici casi reali, andando ad osservare come la combinazione di connessioni ci consenta di accrescere il valore complessivo ben oltre alla risoluzione degli specifici problemi di business percepiti ex-ante, portando reale beneficio di tipo competitivo, di innovazione e di business trasformation.
Il primo caso e’ un caso che possiamo quasi identificare come classico in ambito IoE e di connessioni M2M:
Uso la piattaforma tecnologica di comunicazione e l’interazione fra macchine per operare efficacemente il monitoring di asset specifici.
In questo caso, i business problems identificati ex-ante sono quelli qua riassunti:
Qual e’ la location, il luogo dove risiedono questi asset
Quale la specifica condizione
Quale il livello di sicurezza.
E’ tracking e monitoraggio di asset che porta prevedibilmente a migliorare l’efficienza operativa e ad un risparmio di costi.
----------
Caso reale di applicazioni di questo tipo e’ quello realizzato in Continental pneumatici con Aeroscout.
Cliente con enormi e dispersi stabilimenti, in cui il principale challenge era il corretto e veloce tracking dei componenti nella fase di assemblaggio
le lacune in tal senso provocavano:
Spreco di risorse nella ricerca dei componenti da parte di tutto il personale (operai, manager, addetti ecc…)
Minor produttivita’ tempi di produzione lunghi e impredicibili
Spreco di componenti e alto rate di prodotti finali da scartare
Con aeroscout (che ha fornito ed integrato tag wifi e software di gestione della priattaforma), e’ stata realizzata una soluzione di tracking degli assets integrata in mobilita’ WiFi, correlazione della inforrmazione integrata con la piattaforma di inventory management che ha consentito a Continental di indirizzare le probleamtiche con I risultati misurabili come espresso in questa sintesi:
13% di incremento della produzione
20% di decremento nello spreco di componenti e prodotti
6 mesi di payback
Siamo sempre nel puro M2M.
--------
And here is an example of asset monitoring success, where Cisco played a key role. This is Continental Tire. They were experiencing production delays due to misplaced components for tire manufacturing in their enormous warehouses and factory floor environments. By using wi-fi sensors integrated with an inventory management system, Continental was able to increase production efficiency, and cut wasted tire component costs.
Source: Cisco Case Study
http://www.aeroscout.com/files/RFID-Journal-AeroScout-and-Continental-Tires-04-25-2012.pdf?1
Vediamo ora un caso reale in cui si sono combinate connessioni IoE di tipologie differenti e si e’ arricchito lo scenario M2M con connessioni P2P.
Dundee e’ una societa’mineraria, di estrazione di metalli. Canadese ma con plant sparsi in varie regioni del mondo (anche in europa).
I businessproblem in questo caso erano principalmente relativi a:
produttivita’, capacita’ operativa a parita’ di personale utilizzato
Visibilita’ ed intelligence nelle operazioni sotto terra, nelle miniere.
Cio che e’ stato realizzato e’ una piattaforma di copertura wireless con sensoristica di presenza su personale e euqipaggiamento, con strumenti di collborazione per la comunicazione di persone e cose nelle operazioni sottoterra (remote monitoring, comunicazione e safety control), andando quindi ad intercettare I ritardi di comunicazione o di report degli eventi (batch) che avvenivano solo quanto il personale emergeva.
Ma in piu’ la completa copertura WL ha consentito di connettere tutto cio’ che stava sottoterra: personale, sistemi di collaborazione, video camere, video sorveglianza, ma anche sistemi di operation mining: PLC delle piattaforme di estrazione, luci, sistemi di erogazione dell’energia, ventilazione ecc .ecc
E’ cosi’ evidente che, in questo caso, combinando connessioni differenti ed entita’ differenti (anche solo nel M2M) ottengo veramente una business transformation, un cambiamento radicale delle dinamiche con cui opero il business specifico.
Nello specifico, l’impatto e’ stato non solo nella pura produttivita’ (400% di incremento), non solo negli aspetti complessivi di safety, ma anche e soprattutto (ex-post) in termini di operational excellence, che quantitativamente sono difficilmente valutabili perche’ connessi ad una vera e propria trasformazionei di come il business viene realizzato.
---------------------------
Now let’s look at a situation where connections are combined, in this case M2M and P2P connections. As you can see, when we combine connections, we begin to address higher-order business problems. Here, these problems involve operational excellence—not just tracking the location of assets, but actually changing the dynamics of how the business is run.
Business Problems Solved
How can I use the intelligence of the network to optimize business processes?
What is the most resource-efficient way to increase productivity?
Dundee
Cisco.com link:http://www.cisco.com/web/tomorrow-starts-here/manufacturing/index.html
YouTube link: https://www.youtube.com/watch?v=SGxJLUS7hQQ
The case study for operational excellence is Dundee Precious Metals, a Canadian mining company which owns Europe’s largest goldmine (located in Bulgaria). Mining hasn’t really changed all that much in the last few centuries. And although there may be hundreds of personnel underground at a given time, not a lot of information comes out of a mine. Reports tend to be paper-based and issued after miners and supervisors come off shift every eight hours. This creates all kinds of inefficiency in terms of how the mine is run, and operating “blind” can compromise worker safety.
DPM is one of very few mining companies in the world using a wireless IP network at large scale. The network connects everyone and many things. These include Cisco Unified Wireless IP Phones. Vehicles. In-vehicle tablets. Video surveillance cameras. Cisco TelePresence units. An internally developed mining operations application. Programmable logic controllers (PLCs) on the conveyor system in the mill. Lights, fans, and power. Even the blasting system.
The Internet of Everything makes processes more efficient. For example, at the DPM mine site, drivers, supervisors, and managers use Cisco Unified Wireless IP Phones to communicate from anywhere, above ground or below. Shift supervisors and drivers anywhere in the mine can now exchange instant messages using Cisco Jabber, on iPhones, iPads, Android devices, PCs, and Macs. Drivers receive messages telling them where to go. They also see how many buckets they have dumped, and how many more before the end of the shift. If an issue gets in the way of making the goal, such as a vehicle problem, drivers can use their tablets to capture video and share it with an expert in real-time. The new collaboration capabilities also extend to other company locations. For example, managers, geologists, and metallurgists in different locations can collaborate with an in-person experience, using Cisco TelePresence and Cisco WebEx. Finally, the mine’s blasting system is integrated with location-tracking applications to ensure no personnel or equipment are in the area. The result is greater safety for personnel, lower IT and communication costs, and increased mine production—from half a million tons to two million per year.
Here is an important point: as you can see here, when combine connections, and we solve higher-order business problems, the dependency on the network increases, making Cisco, and the solutions we provide more prominent. Look at the extent of the products and services from Cisco that made the Dundee Precious Metals project a reality.
For workplace analytics, you can collect data by building, by floor, and by team. You can use this data to determine occupancy & utilization, dwell times and more. You can use this data to understand and optimize real estate utilization. Real estate is typically the second biggest expense in a corporation after people capital. Therefore, understanding and optimizing real estate utilization can lead to significant benefits in a corporation.
Looking towards the future of some of these technologies, you can imagine how augmented reality has real-world use cases that will massively improve the business. We see the next stage is to free up workers’ hands so they can actually work on the machines.
[CLICK]
Here, you see how a worker wearing smart glasses can do his job better with augmented reality.
Get information about the machines or objects he is looking at.
[CLICK]
Get help from experts with tasks he doesn’t know how to do.
This is one time where industrial use cases will leapfrog technology adoption in the consumer world..
Sub-Zero changed this by connecting factory workers with mobile devices.
Here, you see
Factory worker having a video call with a remote designer
Giving feedback about a prototype model that was just constructed in the factory.
He can show exactly what he sees and highlight areas that need to be re-designed
without having to wait for the designer to schedule a factory visit.
Rapid iteration cycles.
That’s just the first step.
[SOURCE: Sub-Zero case study:
https://www.youtube.com/watch?v=lh4ep1bNsZM]
… ecco un’altra situazione.
Questa mi sta particolarmente a cuore perche’ riguarda una situazione del nostro mercato italiano.
Non vedete pertanto ne nome cliente, ne un dettaglio di grande profondita’ perche’ rappresenta un progetto tuttora in corso.
La situazione specifica riguarda una societa’ che produce/realizza sistemi in ambito heathcare, tipicamente automazione nei processi di analisi.
Quando si parla di sistemi IoE in ambito industriale, dei plant, delle connected/samrt industries, spesso si menziona il fatto che il manifatturiero in Italia sia ormai ridotto.
E vero pu tuttavia che rimaniamo un eccellenza non tanto nel manifatturiero in se’, quanto nella costruzione di macchine specifiche, di apparati industriali complessi inseriti in fliere o ambiti complessi.
I business challenge dell’azienda in questo caso erano:
Monitoraggio e gestione remota degli apparati (ancora asset tracking per certi versi)
Velocita’ e efficienza negli interventi on-site
Visibilita’ ed intelligence nell’utilizzo
Quello che e’ stato fatto e’ di realizzare una soluzione di collegamento sicuro M2M delle varie macchine con una piattaforma applicativa in grado di amplificare le capacita’ di gestione e monitoraggio remoto.
Ma il business value si estende con la capacita’ di integrare questo M2M, aggiungendo connessione di tipo M2P, raccolta dati in grado di inserire aspetti di visibilita’ ed intelligence dei macchinari.
E’ qua che la trasformazione del business risulta piu’ evidente, in quanto alla parte di monitoraggio e gestione remota (che ha portato ad una migiore diagniostica ed una relativa diminuzione dei costi di intervento) ha aggiunto l’utilizzo dei dati raccolti in modo correlato (in modalita’ M2P) per effettuare analisi predittive sull’utilizzo, sulla parte manutentiva e sulla previsione dei malfunzionamenti in base agli MTBF calcolati ex-ante.
Anche in questo caso, con aspettative di benefici legati ai costi ed all’efficienza operativa, si e’ arrivati alla trasformazione del business che si conforma, con tratti di piena eccellenza operativa, quasi come un vero e proprio business in cloud a servizio (Machine as a Service)
IoT e nello specifico la crescita di connessioni ed applicazioni M2M, porta automaticamente peraltro ad un verosimile cambio, trasformazione del paradigma architetturale.
Dallo scenario piu’ tradizionale Client-Server che ha caratterizzato il modello dell’IT e basato su dispositivi/endpoints che si connettevano, comunicavano con un layer di risorse in cloud o in DC ad un modello necessariamente piu’ distribuito.
E basato sul concetto di Fog Computing, attualmente in fase di definizione anche negli organismi di standardizzazione.
Il modello infrastrtturale e di computing per soluzioni IoT e’ quindi basato su un layer addizionale, di tipo distribuito.
I concetti guida sono abbastanza semplici:
Cio’ che tipicamente e’ necessario in queste soluzioni sono capacita’ di Networking, di Computing/elaborazione e di Storage.
Quindi prima di tutto, Fog prevede la concentrazione delle tre componenti in un layer univoco ed in dispositivi unificati.
In secondo luogo, il modello architetturale previsto con fog prevede un cambio nei flussi informativi.
In un modello tradizionale, il dato fluisce dal dispositivo, sensore, attuatore ecc al cloud o datacenter, dove viene processato, elaborato, memorizzato per ragioni di sicurezza, recording, normative e poi innesca le contromisure, comandi attuativi e le notifiche agli operatori.
Nel modello fog, la presenza di risorse in un layer periferico consente di processare ed alaborare il dato in periferia, innescare le attuazioni e successivamente o in parallelo inoltrare il dato centralmente per il recording e la operazioni necessarie per regolamenti e compliance.
L’obiettivo e’ quindi di un layer che massimizzi l’agilita’ e localita’ del trattamento del dato, senza perderne il valore assoluto. Mantenendo resilienza e sicurezza, in un ambito in cui latenza e volumi di dati sono aspetti primari.
This new fog layer will create a paradigm shift in the network infrastructure. Today, businesses deploy three disparate devices for their networking, computing, and storing. Fog introduces a concept to combine all those devices into a single unified platform—instead of having to manage three things, companies will just worry about one.
Fog also shifts how data is processed. Today, data is first transmitted to the cloud and stored. From there, it’s analyzed and commands are sent to act upon that information, then operators are notified. Fog helps overcome the costly need to constantly move data around and allows analysis and notification to occur before the critical information in stored to meet compliance and regulation policies.
We believe this is all critical in accelerating the Internet of Things and today we’re excited to share with you our role in making this reality.
Only Cisco brings all aspect of the technology, solutions and strategy together to enable you successfully navigate the Journey to a digital business
Cisco has itself transformed the way it operates through the application of this process
Our operating models are changing to a more consumption based model
The industrial sector has seen a fourth industrial revolution, characterized by the increasing digitization and interconnection of products, value chains and business models. The study by PWC is based on a survey of 235 German industrial companies that belong to manufacturing, engineers, automotive and process industries as well as the electronics and electrical systems and ICT industries.
One quarter of companies surveyed have already extensively digitized their value chains. However, mostly only individual units and isolated applications have been automated and digitized to date. The companies expect that 86% of the horizontal and 80% of the vertical value chains will be highly digitized by 2020 and will therefore be closely integrated.
It predicts that by 2020, they will invest 3.3% of their annual turnover in Industrial Internet solutions, on average, over the next five years. This is equivalent to nearly 50% of planned new capital investment and equates to an annual figure in excess of €140 billion in terms of the European industrial landscape.
http://www.pwc.de/en/digitale-transformation/pwc-studie-industrie-4-0-steht-vor-dem-durchbruch.jhtml
The first step to embracing the Fourth Revolution by IOE is to become fully digital
In order for entire cities, countries and economic systems to embrace the IoE, each institution must become fully digitized, turning connected people, process, data and things into insights and new value for employees, customers and citizens. Today many organizations are taking their first steps towards the IoE:
By 2020, 75% of businesses will be a digital business or will be preparing to become one.
While many organizations have digital business transformation initiatives planned or underway, Gartner predicts that only 30% of these efforts will be successful due to lack of talent and technical expertise.**
The number one reason companies fail in their digital transformation efforts is they fail to re-imagine their business from top to bottom before they begin.*
Becoming a digital business requires an agile IT model, and the ability to rethink core processes for the digital era. Embracing new security, cloud, mobile, social and analytics technologies required to fully digitize takes imagination, investment and expertise.
**Gartner: Top 10 Strategic Predictions for 2015 & Beyond: Digital Business Is Driving 'Big Change'
*Gartner Research Consulting – Cisco IoE Engagement Findings December 2014