Technology is rapidly moving from a business enabler to the core of the business. New technologies such as “big data” and analytics, the internet of things (IoT), robotics, mobile technology, artificial intelligence and cybersecurity are transforming the way business gets done. We explore the business implications of technology and their impact on businesses of all sizes and scopes, and presents strategies for charting a path through these disruptive times.

1. Future-Proofing Your Business
With Technology
David Mustin, MBA
June 19, 2019

2. 2
Contact
David R. Mustin, MBA
Partner
440-605-7222
dmustin@skodaminotti.com

3. 3
Learning Objectives
After completing the session,
participants will …
• Be familiar with the rapidly changing landscape
of emerging business technology
• Gain an understanding of how to build a solid
foundation and a roadmap for adoption of
current and emerging technologies
• Identify opportunities for a return on your
investment
• Learn how to address organizational and
human factors related to successfully adopting
emerging technology
“In the long run, men hit only what they aim at.” – Henry David Thoreau

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Exponential Growth of Computing
Source: Transcending Moore’s Law

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Internet Connected Devices
Today Billions of Devices
Source: Statistica

6. 6
Reaching an Audience of 50m
62
38
13
7
3 2
0.05
0
10
20
30
40
50
60
70
Car Radio TV Internet iPod Facebook Pokemon
Go
19 Days

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1st IR 2nd IR 3rd IR 4th IR
1700 – 1800s 1870 - 1914 1980s - ? Now
Iron
Textiles
Steel
Oil
Electricity
Digital
Technologies
Robotics
Nanotechnology
Biotechnology
Steam
Engine
Telephone
Light Bulb
Phonograph
Personal Computer
Internet
Communications
Artificial Intelligence
Internet of Things
3D Printing
Industrial Revolutions

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Manufacturers Adopting
Technology
34%
33%
27%26%
25%
15%
11%
9% 6%
Smart / connected machines
General, non-robotic automation
Basic 3D printing (like prototyping)
Big Data / predictive analytics
Smart / connected products
Advanced 3D printing
Collaborative robots
Lightweighting
Augmented or virtual reality
Source: 2019 State of NEO Manufacturing Report

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The Digital Ecosystem
Administrative Operational Customer
Networks / Cloud Computing
Cybersecurity
Additive
Manufacturing
Marketing
Automation
Data Analytics
Internet of
Things
Robotic Process
Automation
Robots /
Cobots
eCommerce
Platform
Financial /
Admin. System
ERP System
CRM
System

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Laying the Technology Foundation
Administrative Operational Customer
Networks / Cloud Computing
Cybersecurity
Additive
Manufacturing
Marketing
Automation
Data Analytics
Internet of
Things
Robotic Process
Automation
Robots /
Cobots
eCommerce
Platform
Financial /
Admin. System
ERP System
CRM
System

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Core Foundational Systems
• Billing
• Accounts
Receivable
• Accounts Payable
• General Ledger
• Human
Resources
• …
Financial /
Admin. Systems
• Sales
• Order
Management
• Inventory
• Warehousing
• Production
Management
• Purchasing
• …
ERP System CRM System
• Sales
• Customer
Management
• Customer Service
• Marketing
Automation
• …
These core systems functionally overlap, yet are the foundational
systems that any digital transformation strategy resides on.

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On-Premise
• Hosted in company’s data
center
• Company responsibilities:
– Acquiring / supporting
servers and network
– Installing and upgrading
software
– Testing and installing
patches
– Staffing
– Cybersecurity
Cloud
• Hosted in vendor’s data
center
• Vendor responsibilities:
– Acquiring / supporting
servers and network
– Installing and upgrading
software
– Testing and installing
patches
– Staffing
– Cybersecurity
Cloud Computing

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Cloud / On-Premise Comparison
On-Premise Solution Cloud Solution
Up Front Costs
Ongoing Costs
Software Update
Responsibility
Client Vendor
Server / Hardware
Updates
Client Vendor

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Exponential Data Growth
Source: Patrick Cheesman
Source: Lauro Rizzatti
SI Prefix Scientific
Notation
Name
Yotta (Y) 1024 1 septillion
Zetta (Z) 1021 1 sextillion
Exa (E) 1018 1 quintillion
Peta (P) 1015 1 quadrillion
Tera (T) 1012 1 trillion
Giga (G) 109 1 billion
Mega (M) 106 1 million
Kilo (K) 103 1 thousand

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Data
• Data is a
collection of
raw facts and
figures
• It must be
processed to
be turned into
information
Information
• Data
organized into
a sequence or
context
• Examples:
• Red = Stop
• Green = Go
Context
Knowledge
• Information
acquired
about a
situation
• Familiarity or
awareness of
facts or
information
Insight
• Deep intuitive
understanding
of a situation
or thing
Transforming Data into Insight

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Business Case:
Expenses and Innovation
Source: NewVantage Venture Partners, Big Data Executive Survey 2017 (PDF, 16 pp.)

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Talent Challenges
86% Challenges in
Hiring Qualified
Staff
60% Hindering Growth
53% Negatively Impact
Bottom Line
Source: 2019 State of NEO Manufacturing Report

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What is Robotic Process
Automation (RPA)?
• RPA automates business
processes (i.e., worker actions)
such as data entry, billing, form
creation, etc. without the need
for detailed programming.
• The intent is to relieve the
worker from mundane tasks to
allow them to do higher value
activities.

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Processes That Are a Good
Fit for RPA

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Robotic Process Automation
Benefits
Source: Laserfiche

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What is the
Internet of Things (IoT)?
A network of devices such
as vehicles, appliances,
phones and sensors that
contains electronics and
connects to the internet
which allows these things to
connect, interact and
exchange data.
- Wikipedia
(paraphrased)
Kuva 1. Internet of Things. Lähde: Huffington Post

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Sensors and Their Impact
22
Data
Infographic by Postscapes and Harbor Research

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How Does IoT Work?
23
03
Source: New Line Technologies

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Industrial IoT (IIoT) Case Study
24
Issues:
- Bowden sought to enhance production efficiency and on-
time delivery of products to clients.
- Bowden did not have clear visibility to machine utilization,
labor efficiency or drivers of productivity.
Solution:
- Implemented technology to monitor energy
utilization of milling machines.
- Installed sensors on approx. 13 milling
machines to establish baseline.
- Conferred with staff on objectives.
- Installed large monitors on shop floor to
monitor machine utilization.
- Tracking monthly dashboards on machine
utilization.
- Currently installing sensors on an additional
30+ machines.
Cost / Benefits:
- Total one-time costs of ~$5,000.
- Ongoing maintenance costs: ~$500/month.
- Immediate productivity improvement: 15 –
20%.
- Ongoing productivity improvements: 13 –
15%.
- Staff is engaged and supportive (no jobs
lost).
- Target is to improve on-time delivery of
products and “guarantee” product delivery
dates, thereby differentiating in market.

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Robot Evolution
• Task focused
• Heavy lifting, welding,
painting, gluing
• Big, bulky
• “Dumb”
• Predominantly automotive
• More broad based
• Assembly and quality
focused
• Lightweight / more agile
• “Intelligent and
interconnected”
• Aware of other robots and
people
• Other “light industrial”
First Generation Second Generation
Digitalization and robotics can drive manufacturing costs down so that
they may offer the “Global” price advantage.

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Robots and Sensors
• Advanced sensors are
increasing the ability of
machines and robots to
“understand” the world
around them
• Historically, robots
performed repetitive tasks of
“brute force”
• They can now focus on
assembly, safety and self-
corrective behavior
• LiDAR
• Range finders
• Accelerometers
• Light sensors
• Motion sensors
• Load sensors
• Potentiometers
Advantages Types
Sensors can reduce manufacturing downtime by predicting outages,
and scheduling maintenance during downtimes.

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Robots and Cobots
Robots Cobots

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Sawyer the Cobot
Source: https://www.youtube.com/watch?v=vVm6N363k0g

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Additive Manufacturing
(3D Printing)
• Plastics
• Photosensitive resins
• Ceramics
• Cement
• Glass
• Metals and metal alloys
• Thermoplastic composites
infused with carbon nanotubes
and fibers
• Speed: design to prototype
• Speed: prototype to product
• Flexibility and customization
• Waste reduction
• Cost savings in inventory and
rare parts management
• Value shifts from products to
designs
• Reduction in operational
downtime
The Materials The Benefits

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Direct Metal Laser Sintering
Source: https://www.youtube.com/watch?v=yiUUZxp7bLQ

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Additive Manufacturing:
What’s Next?
Source: www.jbknowledge.com
3dprint.com
Ibtimes.co.uk

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Case Study:
GE 3D Printed Jet Engine Nozzle
Morris Technologies tried to fabricate this part 8 times and failed.
• 3D printing collapsed 20
parts into 1
• Reduced weight by 25%
• Increased durability 500%
• Contributed to 15%
improvement in fuel
efficiency

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eCommerce Platform is the
Electronic Storefront
• The eCommerce platform
enables transactions
directly on the website
• Substitute for utilizing
Amazon.com, eBay.com or
other large websites
• May integrate directly with
CRM, ERP, sales systems

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Chatbots

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Chatbots – Part 2

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5G Mobile (Speed Test)

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Artificial Intelligence

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Autonomous Vehicles
Source: https://www.youtube.com/watch?v=Qb0Kzb3haK8

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Amazon Go
Source: https://youtu.be/NrmMk1Myrxc

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Addressing the Human Dimension
• Utilize change management techniques
• Engage the team
• Co-create the solutions
• Seek input
• Create owners
• Communicate, communicate, communicate
• Train, train, train
Remember: This is a journey, not a destination!

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• Reduced cost (labor, materials, machine)
• Differentiated products and services
• Value focus on customers, processes and organization
• Survival and competitiveness
• Rapid innovation cycles
• Waste reduction
• Productive staff
The Business Case?

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• Blending of the physical and digital worlds
• Connecting the physical world through digital
• Manifesting the digital in the physical world
• Innovation
• Address process, organization, culture and eco-system
as much as technology
Key Takeaways

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• Change management
• Project management
• Communications management
• Metrics / benefits management
Key Enabling Factors

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Future of Manufacturing

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Questions
David R. Mustin, MBA
Partner
440-605-7222
dmustin@skodaminotti.com