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Internet of Things and Smart Manufacturing

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  • 1. Internet of Things and Smart ManufacturingInternet of Things and Smart Manufacturing Next Paradigm for the Manufacturing SectorNext Paradigm for the Manufacturing Sector Karthik Sundaram Jithendranath Rabindranath July 10, 2014July 10, 2014 © 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  • 2. Presenter’s Profile Functional Expertise Strategic Market Research expertise in the domain of Industrial Automation and Process Control. Technical expertise in the field of Industrial Automation. Particular expertise in: Engineering, Design and Commissioning and of Safety Systems (Invensys Triconex) Industry Expertise More than three years of intensive research expertise in the markets of distributed control systems (DCS), programmable logic controllers(PLC), human machine interface (HMI), supervisory control and data acquisition (SCADA) and product lifecycle management (PLM). Specialized focus on future manufacturing process frameworks, with specific focus in the across the concepts of Industry 4.0/Smart Manufacturing. Karthik Sundaram Industry Analyst Frost & Sullivan across the concepts of Industry 4.0/Smart Manufacturing. Frost & Sullivan India Jithendranath Rabindranath Research Analyst Frost & Sullivan India Functional Expertise Functional expertise in logistics and supply chain management industry, including projects mainly focused on: oWarehouse Management System : Receiving and put-away, Replenishment and picking, Packing and loading oProject Management : Monitoring the work and cost, motivating the team, reporting progress back to the organization, working with the team to solve project problems and achieving the team goals. Industry Expertise Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives in oEffective Transportation oSupply Chain Management
  • 3. Agenda Coverage Dimensions Industry 4.0/Smart Manufacturing: The Vision and its Implications Industry 4.0/Smart Manufacturing - Functional Attributes Challenges for IoT in Manufacturing Industry Convergence Matrix: IT and ManufacturingManufacturing IoT and Smart Manufacturing Enabling Technology Platforms Technology Convergence & Applicability Funding Initiatives & Economic Scenario Key Global Initiatives & Practices Futuristic Preview Investment Opportunities Strategic Insights Industry 4.0 and the End-user Equation
  • 4. Industry 4.0/Smart Manufacturing: The Vision and its Implications Industry 4.0 Technology Industrial Cyber Security Big Data Analytics Cloud Platforms Internet of Things Industry ConvergenceIndustrial Revolution 4.0 - PursuitsIndustrial Revolution 4.0 - Pursuits Industrial Revolution 1.0 – 3.0Industrial Revolution 1.0 – 3.0 • Mechanised Processes • Mass Production • Production Automation The term “Industrial” in this context, refers to all segments within the industrial world associated with discrete/process industries. It’s scope is inclusive of enterprise applications in board rooms to manufacturing production units in the shop floor. Industry 4.0 Processes Collaboration Mass Customization Flexible Production Models Internet of Services Sustainable Manufacturing Lifecycle Assessment • Product Innovation • Increased Collaboration • Operational Process Enhancement • Cyber-Physical Production Convergence of applications will form crux of new advancements Energy efficiency and sustainability to gain greater business focus Greater presence of mobility and web-based information systems Convergence of applications will form crux of new advancements Energy efficiency and sustainability to gain greater business focus Greater presence of mobility and web-based information systems Strategic Trends
  • 5. Industry 4.0/ Smart Manufacturing Industry Convergence Services as New Profit Centres $ Improved asset utilisation Energy optimisation Integrated ERP Industry 4.0/Smart Manufacturing - Functional Attributes Collaborative IT Industrial Cyber Security $ Fosters Innovation Reduced time-to-market Improved productivity Minimal capital expenditure Efficient training mechanisms Improved cost benefits Reduced total cost of ownership Integrated Enterprise Ecosystem PLM MES Enabling enterprise integration Enhanced production safety
  • 6. Challenges for IoT in Manufacturing Industry convergence alters competitive landscape Fast-changing consumer trends impacts enterprise stability Competitive pressures driving Ineffective innovation Risk of Cyber Attacks Multiple challenges are set to impact 6 Burgeoning Competition Increasing commodity costs Growing Energy Demand Global Economic Woes Uncertain Geopolitical Landscape Volatility in Government Policies Maximised production @minimal energy - A catch 22 situation Convergence of industries Rise of disruptive technologies Weak manufacturing output Lower profit margins Regulatory Pressures Multiple challenges are set to impact enterprises during the course of their evolution. But the biggest challenge that can derail progress is “Industrial Cyber Security”
  • 7. Customer Manufacturing EnterpriseManufacturing EnterpriseCore IndustryCore Industry Ethernet Devices Cloud IT Infrastructure 3D Operator Training Assistance VR Predictive Maintenance Asset Management Apps Digital Manufacturing EMI Mobile Maintenance VR Simulation Systems Wireless Communication Industrial IT Market: Manufacturing Sector, 2014 Industrial Internet Professional Industry Convergence Matrix: IT and Manufacturing Customer Focus Consumer Industry Focus Information & Communication Technologies (ICT) Manufacturing Commercial IT Cyber Security Apps Warranty Management Apps Social Media Apps Maintenance Remote Home Control Apps Note: Top five markets are in brown text boxes. Source: Frost & Sullivan 3D Printing
  • 8. IoT and Smart Manufacturing Internet of Sensors Computers The Internet of Things (IoT) is a scenario in which the information is gathered from sensory equipment and connected devices that are uniquely identifiable and emit massive amounts of data. An increasing trend towards the realization of plant wide optimization, information aggregation and analytics, network infrastructure and multi disciplined control and intelligent assets are driving the adoption of the this technology in various market sectors. Benefits Enterprise-wide traceability Converged supply chain automation Megatrends Influence New Business models and Increase in popularity with the development of readily available sensors, real time analytics and robots. of Things Computers Video Analytics Engine Cloud Datacenter Intelligence User Converged supply chain automation Efficient resource utility Process optimization Data-driven sensor awareness Enhanced data-driven decision analytics New Business models and Innovating to Zero are the two mega trends that are expected to achieved through enabling IoT with smart manufacturing.
  • 9. Enabling Technology Platforms Applicability Manufacturing/Production Sensors • Smart Sensors • SCADA • Wireless Sensors & Networks • MEMS/Nanosensors • Energy Harvesting Electronics • RFID • Touch & haptics • Gesture recognition • Advanced displays • Wireless charging •Near field communication (NFC) InternetManufacturing/Production Inspection Security Service Support Business Operations Communication • Cloud Platform • Big Data • Data Centres • Augmented Reality Software • Information and discovery services (IDS) • Contiki • Mantis • GPS Internet • WPAN’s • Wi-Fi • 3G • LTE Video • CCTV • Stereo Cameras • 3D Cameras
  • 10. ApplicationsSensorsICTOthers Electronics Technology Convergence & Applicability RFIDAugmented Reality Smart Big Data Cloud RFID GPS Wi-Fi NFC WPAN’s NFC RFID SCADA SCADA MEMS Cloud Smart Sensors GPS Augmented Reality RFID GPS Cloud GPS Big Data NFC RFID 3G 3G Wi-fi 3G MEMS Smart Sensors
  • 11. Funding Initiatives & Economic Scenario The EU Commission under its horizon 2020 initiative has granted funds for various projects. Europe - GDP – Manufacturing – 2013 The UK Government has announced a funding of $61 Million for companies working on developing the IoT platform in order to enable it in different application sectors. Advanced Manufacturing Control Systems, Ireland received $39 million from In the USA, corporate and venture capital funding are driving initiatives. Puppets Lab, US, received about $45.5 million from venture capital funding for development of IT automation software. US - GDP – Manufacturing – 2013 20%; Growing trend Manufacturing – 2013 16% ; Declining trend received $39 million from venture capital funds. 20%; Growing trend Though Asia is the manufacturing base for several products, smart manufacturing has not garnered significant interest.
  • 12. Key Global Initiatives & Practices High-Tech Smart Factories for Higher Productivity and Efficiency •A key market player in Germany has built a futuristic plant with high-tech facilities. • It has smart machines that are coordinated with the company’s control devices. •This has enabled the company to significantly reduce the lead time and material wastage thereby improving the overall process efficiency. Adoption of Smarter Solutions to Boost Growth •A key market player in the USA, has enabled the Industrial internet in its plant and it is expected to play a critical role in the company’s growth over the next few years. Collaborative Model Leading to Realization of Factories of the Future •One of the major players in the USA market has collaborated with a university for the creation of an appropriate, smart IT infrastructure. •They are showing manufacturing companies a realistic route to the intelligent factory of the future.
  • 13. Futuristic Preview Headquarters Testing Customer A company has an R&D center in North America, testing operations in North America and Europe, and sourcing of materials for the finalized design happens in APAC and ROW. Finally, the item goes into manufacturing at a site in China. Headquarters Testing R&D Facility Manufacturing Sourcing Customer Through sensors located across the supply chain, information is transmitted to the appropriate systems and personnel from each segment, each region, and each business unit. A typical Internet of things environment fits into a company’s exhaustive supply chain and transmits information through a robust network infrastructure to enterprise solutions, which makes use of the data that is obtained.
  • 14. Investment Opportunities What is it for Countries across the globe consider the manufacturing sector to be one of the key sectors to increase the economy of the country. With IoT , the manufacturing companies are expected to achieve a number of benefits in terms of optimizing their production In the USA and Europe there has been an increased interest in achieving the Industrie 4.0 and smart factories in the near future. IoT is seen one of the technology for enabling the same. Other than the manufacturing sector, IoT is expected to have an impact in various other market sectors such as retail, healthcare and infrastructure thereby increasing the businessWhat is it for the investment community? IoT is considered to be one of the key enablers for realization of smart manufacturing/factories of the future concepts leading to improved productivity and efficiency. optimizing their production process by reduced lead time, increased efficiency and reduction in time taken for the product to reach the market. thereby increasing the business opportunities. IoT in Smart Manufacturing will provide a gateway for commercial ICT vendors to enter the manufacturing space. With the advent of IoT in Smart Manufacturing, existing industrial suppliers are set to witness increased competition from commercial IT vendors in the future.
  • 15. Strategic Insights Commercialization Strategy •Active funding for R&D activities and commercialization, in addition to demonstrating increasing the capabilities. •Improving the product features will further increase the wide scale adoption by users for their various needs. Marketing Strategy •Increased awareness of the concept in order to demonstrate the capabilities and advantages of this novel technology platform to realize futuristic efficient factories. Target Markets •Increasing the capabilities in order to cater to various manufacturing industries and targeted specific application sub- segments. Asia is the manufacturing hub, initiatives to gain the attention of the stakeholder•Asia is the manufacturing hub, initiatives to gain the attention of the stakeholder ecosystem in this region. Ecosystem Diversification •Expanding the strength of service providers and stakeholders in the market will help users to adopt the IoT concept without having to invest a lot of money in the initial installation. Co-opetiton Model – Collaborate with Major Tier Players & Compete •It is beneficial if the incumbent join with one of the key players and enter the market. Through this collaboration, the incumbent can have successful sales and can also avoid the need of a creating a positive brand image considering it has never commercialized its products earlier. Additionally, it can also avoid the growing pains to establish itself in the market, especially when it’s competitors are considered as giants globally.
  • 16. Industry 4.0 and the End-user Equation Vendor Proposition What the End-user wants: The Missing Link in I4.0 Discussion Industrial vendors have embraced the idea of Industrie 4.0 within their product framework, repositioning their existing solutions in line with this industrial paradigm. However, in the discussion on I4.0 and the Smart Factory initiative, there is a need to understand end-user perception. We, at F&S, firmly believe that the end-user factor will decide the future of the I4.0 vision. Global Economic Woes Global Economic Woes Uncertain Geopolitical Landscape Uncertain Geopolitical Landscape Volatility in Government Policies Volatility in Government Policies Macro ChallengesIndustrie 4.0: Key Stakeholders State Policy End-user Acceptance Industry convergence alters competitive landscape Risk of Cyber Attacks Fast-changing consumer trends impacts enterprise stability Competitive pressures driving Ineffective innovation Burgeoning Competition Burgeoning Competition Increasing commodity costs Increasing commodity costs Growing Energy Demand Growing Energy Demand WoesWoes LandscapeLandscape PoliciesPolicies Market Functional Challenges
  • 17. Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: 1-877-GOFROST (463-7678) Email: myfrost@frost.com
  • 18. Your Feedback is Important to Us Growth Forecasts? Competitive Structure? What would you like to see from Frost & Sullivan? Emerging Trends? Strategic Recommendations? Other? Please inform us by “Rating” this presentation.
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  • 20. For Additional Information Jithendranath Rabindranath Research Analyst Technical Insights, Frost & Sullivan +91-44-6681-4134 jithendranathr@frost.com Karthik Sundaram Industry Analyst, Frost & Sullivan Industrial Automation & Process Control (Europe) +91-44-6681-4035 karthiks@frost.com Kasthuri Jagadeesan Program Manager Technical Insights, Frost & Sullivan +44-(0)-1865-398-625 kasthuri.jagadeesan@frost.com Thank You