Digital Disruption Across Tomorrow's Manufacturing Supply Chains

Mark Morley, Industry Marketing Director
Digital Disruption Across Tomorrow’s
Manufacturing Supply Chains

OpenText Confidential. ©2015 All Rights Reserved. 22
Manufacturing 2.0, Rebooting Today’s
Global Supply Chains…
Global recession, wage strikes, natural disasters and increased
regulatory compliance are leading to manufacturers having to
restructure their global supply chains

Today’s Manufacturing Industry
 North America, UK, Germany, China and Japan lead
global figures for production output
 Manufacturers continue to globalize production facilities
and de-centralize design and engineering departments
 Automotive and high tech industries are increasingly
consumer-driven
 New technologies such as the Internet of Things will drive
the ‘4th industrial revolution’

Today’s Manufacturing Value Chain
Distributed Operations in Multiple Countries
Near-Shoring
2010 Onwards
China Globalization
2014 Onwards
Regional
Marketing &
Sales
Manufacturing
Distribution
Sales
ManufacturingR&D
Manufacturing
Shared
Services
Sales
Distribution
Global HQ
Sales
Shared
Services
Sales
‘BRIC’ Markets Expansion
2000 Onwards
(BRIC = Brazil, Russia, India, China)
‘MINT’ Markets Expansion
2014 Onwards
(MINT = Mexico, Indonesia, Nigeria, Turkey)

Evolution of the Digital
Manufacturing Business

Traditional Manufacturing Value Chain
 Information resided in multiple departmental silos
 Difficult to find and navigate through information
relating to a particular product
 Lack of inter-departmental information exchange and
collaboration
 Business expansion led to information replication and
multiple instances of key business systems such as
ERP
 Product design department traditionally led adoption
of new IT technologies
Product Design
& Engineering
Manufacturing
Supply Chain
Management
Marketing,
Sales & Service
Traditional Value
Chain
Source: Cap Gemini Consulting Analysis

LevelofDigitalPervasiveness
High
Low
Design
Production
Design
Production
Purchasing
Marketing
Design
Production
Purchasing
Field Support
Logistics
Marketing
Design
Production
Purchasing
Sales
Field Support
Logistics
Marketing
Design
Production
Purchasing
1970 1980 1990 2000 2010 2020
Evolution of the Digital
Increased digitization of information
over the decades has allowed more
departments across the extended
enterprise to access & utilize this
information
Design & Production
Automation
Computer Aided Design &
Manufacture
Collaborative PLM & Cloud
Connected Digital Business
Electronic Product
Definition
Digital Mockups &
Collaborative Design

Digital Information Powers the
Integrated Value Chain
 The Integrated Value Chain relies on digital
information to automate and accelerate
internal operations
 A centralized digital information hub:
 Drives product innovation
 Improves production efficiencies
 Provides global agility
 Increases customer satisfaction
Source: Cap Gemini Consulting Analysis
“Digital Transformation is not a quick-fix solution within rigid manufacturing processes and
resources, but a long-term commitment and imperative”
Digital Product
Design
Digital Shop
Floor
Digital
Customization
Digital
Supply Chain

Enterprise Information Management (EIM)
Enterprise Information Management is the set of technologies and
practices that maximize the value of information while minimizing its risks
Enterprise
Content
Management
Information
Exchange
Business
Process
Management
Discovery
Customer
Experience
Management
Actuate Analytics

How EIM Supports the Product Lifecycle
Market / Customer
Requirements
A
Product Design &
Engineering
B
Prototype
Testing & Compliance
C
Supply Chain
Management
D
Manufacturing
Engineering
E
Product
Production
F
Product
QA & Certification
G
Plant Maintenance &
Asset Management
H
Logistics &
Distribution
I
Dealer/Distributor
Engagement
J
Aftermarket
Service & Support
K
Recalls &
Warranty Repairs
L
Enterprise Content Management Customer Experience Management Business Process Management Information Exchange Discovery AppworksActuate Analytics

Managing Digital Information –
Product Design & Engineering
 All design information should be centrally
archived
 Information needs to be exchanged securely
with other users
 Increasing legislation requires full traceability of
design information
 Field service teams need remote access to
product information
 Compliments rather than replaces an existing
PLM solution
• 3D CAD/CAM Models
• 3D Printing Files
• 3D Visualization Models
• 2D Drawings
• Production Information
• Product Bill of Materials
• Stress Analysis Test Reports
• Environmental Test Reports
• Materials Testing Reports
• Materials Specifications
• Product Specifications
• Videos/Animations/Renderings

Supply Chain Management
 Management of supplier information & archival of
procurement contracts
 Trading partners on-boarded and managed on an
ongoing basis
 Requirement to integrate to enterprise systems
such as ERP
 Increasing requirement to adhere to regional
regulatory compliance laws
 Requirement for end to end visibility of all supply
chain transactions
• Supplier Contract Information
• Supplier Contact Information
• Protocol/Document Mediation
• B2B Connectivity Testing
• B2B Document Mapping
• Implementing Appropriate B2B
Software/Web Portal Solutions
• Backend Systems Integration
• Adhere to GRC Initiatives, e.g Electronic
Invoicing
• Community Management
• 24/7 Helpdesk Support

Plant / Asset Management
 All production related equipment needs to be
proactively maintained
 Need to minimize plant downtime to avoid
production stoppages
 Maintenance teams need remote access to all
plant related information
 Sub-contractors & plant suppliers need to be
managed effectively
 Employee health & safety / regulatory
information needs to be archived
• Maintenance & Test Procedures
• Equipment Monitoring
• Assembly & Disassembly Videos
• 3D Plant Design Models
• 3D CAD Equipment Animations
• 2D Equipment Drawings
• 2D Utilities Diagrams
• Equipment Test Procedures
• Equipment Test Certificates
• Sub-contractor Information
• Regulatory & Compliance Info.

Dealer / Distributor Engagement
 OEMs need a centralized approach to how they
manage all digital assets
 Digital assets need to be transferred securely
between all users
 Customer experience must be consistent across
all platforms
 OEM’s HQ needs to connect to a diverse range
of business systems
 Dealers and distributors need access to low cost
& simple to use platforms
• Product Brochures
• Promotional Videos & Adverts
• High Resolution Images
• 3D Computer Graphic Animations
• Product Training Videos
• Technical Bulletins
• Advertising Agency Collaboration
• In Store Graphics/Designs/Layouts
• Website Design & Management
• Mobile Platforms & Social Media
• Online Product Catalogues
• Online Product Configurators

Aftermarket Service & Support
 Field service engineers need access to all
digital product information
 Product information must be accessible through
mobile devices
 Replacement parts may need to be ordered
remotely from a supplier
 Archival of all certifications & test reports for the
entire life of product
 Equipment performance needs to be proactively
monitored & acted upon
• Repair & Test Procedures
• Assembly & Disassembly Videos
• 3D Visualization Models
• 2D Product Drawings
• Product Specifications
• Warranty & Recall Procedures
• Regulatory & Compliance Info.
• Product Test Certificates
• Fault Diagnosis Routines
• Spare Parts Ordering Portals
• Technical Service Bulletins

The Future of the Digital

How will Information Technology Impact Your
Company in the Year 2020?

The Digital Age
 Information drives innovation
and growth
 Information leads to greater insight,
higher customer satisfaction, accelerates
time to market, helps to open new
opportunities, and enables you to remain
competitive
 Information is a key strategy
component for every organization

Gartner Technology Trends - 2015
By 2018, the total cost of
ownership for business
operations will be reduced by
30 percent through the
adoption of smart machines
and industrialized services.....
Gartner, October 2014
1. Computing Everywhere
2. The Internet of Things (IoT)
3. 3D Printing
4. Advanced, Pervasive, Invisible Analytics
5. Context Rich Systems
6. Smart Machines
7. Cloud/Client Architecture
8. Software Defined Infrastructure
9. Web Scale IT
10. Risk Based Security & Self Protection

Cloud Deployments in Manufacturing
 Simplifies the deployment and management of global IT infrastructures
 Allows manufacturers to quickly scale up or scale down production
 Design information is now accessible by anyone across the enterprise
ERP B2B PLM

D
I
G
I
T
A
L
D I S R U P T I O N
Today’s Manufacturing Operations are
Entering a Period of Significant…..
New Sources of Unstructured Information Will Need Managing Across the Enterprise
4G Networks
Cloud
B
Y
O
C
Internet of Things
W
I
F
IPaaS
5G Networks
Smart Grids
Mesh Networks
Big Data
Social Networks
Remote Monitoring
Analytics
Mobile Apps
NFC Payments
SAAS
S
E
C
U
R
I
T
Y T
E
L
E
M
A
T
I
C
S
Sensors
RFID
Smart Phones
Tablets
B
Y
O
D
Connected Devices
3D Printing
Drones
Wearable DevicesMass Storage
M2M
Robots

Tomorrow’s Supply Chains Will be Impacted
by a Nexus of Disruptive Technologies
Wearable
Devices
Devices, such as
Google Glass, will
transform how
digital information
is accessed &
shared across the
enterprise
allowing
3D
Printing
3D Printers will
manufacture parts
on demand and
contribute
towards the
introduction of the
‘zero length’
supply chains
Drone
Logistics
Drone aircraft will
transform the
delivery of
parts/finished
goods to customers
across short
distance logistics
networks
Future EIM platforms will need to embrace these technologies….
Internet
of Things
Introduction of
more connected IoT
devices /equipment
will allow
manufacturers to
develop more
responsive supply
chain networks
Advanced
Robotics
Next generation
advanced robotics
will work side by
side with human
operatives, helping
to automate more
production
processes

 Wearable devices are set to revolutionize how employees
interact with their work environments
 Many manual-focused jobs require hands to be free at all times
 Google Glass for example was originally conceived to bring
data-rich information to the user in real-time
Wearable Devices

Wearable Devices – Warehouse Picking
OK Glass,
Trace Shipment
Locate Part in Warehouse
Scan Barcode
Contact 3PL Provider

3D Printing
 Technology entering the enterprise and general consumer
markets
 Products can be made using a variety of materials including metal
 Likely to revolutionize production, as machine costs come down
 HP enters market as an extension of their printer business

 Technology is not new, been around for over twenty years,
formerly rapid prototyping, stereolithography
 Limited production area, restricts type of products that can be
made
 Relies on having a 3D representation of a product, either as a
CAD model or a 3D scan based representation
3D Printing

HP Sprout PC & 3D Printer – 29th October 2014

HP, a Leader in Multi-Colour 3D Printing

Amazon 3D Printing Trucks

Bentley EXP10 Speed 6 – Geneva Motorshow

Most Ambitious 3D Printing Project?

Introduction of Zero Length Supply Chains?
Original OEM Part
3D Printed Part
 3D printing could potentially revolutionize the service sector
 Certain replacement parts could be printed instantly at a
service location
 Combined with IoT, parts could be manufactured before
existing parts experience wear or stress failure

Advanced Robotics
 Google acquired 8 robotics companies in 2013, looking to
develop Android-based robotics operating system
 One goal of robotics division is to help high tech companies
automate manual-based assembly processes
 Contract manufacturer Foxconn seen as perfect test
environment, however will Google robots be assembling
iPhones?

Foxconn Automation, Goal = 1M ‘Foxbots’

Foxconn Automation, the Reality

Say Hello to ‘Baxter’

Amazon Prime AIR
 Amazon hopes to eventually offer a 30 minute delivery
service via fleet of drones
 However in the US the FAA recently introduced a new
regulation which says that drones must be inline of sight of
their controller
 Amazon likely to acquire drone manufacturing companies,
will then own part of their logistics network

The Future of Expedited Shipments?

Rolls-Royce Drone Ships?

The Internet of Things -
What Exactly is it?
Internet of Things (IoT)
Internet of Everything (Cisco)
Industrial Internet (GE Software)
Industry 4.0 (Bosch)
Machine to Machine (M2M) Connectivity
Across the Internet
“Any machine or device connected (via fixed wire
or wireless communication) to the internet &
being able to transmit information in one form or
another”
IDC - 200Billion connected devices by 2020
Cisco - Estimates market size at $14.4Trillion

Digital Information is now Feeding the
Fourth Industrial Revolution
Industrie 4.0
Source: Bosch

Core IoT Building Blocks
Sensors
Dedicated
Processor
Internet /
Dedicated Network
Big Data
Storage
Analytics &
Reporting
Key Characteristics = Energy Efficient + Cost Effective+ Quality & Reliable + Secure
WiFi or 4G
Comms
Devices /
‘Things’

Home Automation
Nest provides an internet-enabled range of devices for home automation
applications, this example shows a thermostat

Home Automation Communications
LG has developed a home hub to allow consumers to send text messages to remotely
control household appliances

Connected Vehicles
Tesla Motors offers one of the most advanced connected cars on the market today,
the Model S sedan

Remote e-Health Monitoring
E-Health is expected to be a major beneficiary of IoT based devices, for example this
e-Pill has a built-in high definition video camera

IoT Related ROI
Source: Cisco

How Will IoT Impact Global Supply Chains?
 Exponential growth in data flow across future supply chains
 IoT will impact future supply chains in many different ways:
Predictive
Maintenance
Self diagnostics identify
failing components
resulting in automated
parts ordering
Pervasive
Visibility
End-to-end visibility of
shipments from point of
manufacture to point of
delivery
Proactive
Replenishment
Optimization and
automated ordering of
inventory at the ultimate
point of sale

IoT Example 1 –
Pervasive Visibility
 Business Case - Visibility of shipment
tracking at every stage from the point of
manufacture to the point of delivery
 Example - Bosch developing a software-
based, virtual supply chain. This is based
on inputs from an extended network of
RFID readers at both their factories and
their global logistics providers. Provides
more accurate tracking of all shipments.

IoT Example 2 –
Proactive Replenishment
 Business Case - Optimization of inventory
levels at the ultimate point of sale
 Example - SAP HANA based vending
machine. Automatically places orders for
new stock before they run out. Learns
profile of regular users and is able to both
predict purchases, make alternative
suggestions based on previous buying
trends & learns consumption patterns.

IoT Example 3 –
Predictive Maintenance
 Business Case - Self diagnostics can
identify failing components resulting in
automated parts order
 Example - RAC automotive association in
the UK offers a retrofit module that can help
identify problems with a car before they get
too serious. Could be extended to
automatically order replacement parts and
book service at local service center.

EDIFACT
XML
SWIFT
OFTP2
IDOC
ANSIAS3
Contract Mfg.
Distributors
Customers 3PLs
Banks
Insurers
AS2
FTP
HTTPSSuppliers
B2B
HULFT
IDOCS
External Trading Partner Community
Managing Information Across Tomorrow’s
Digital Manufacturing Business
ERPPLM
Internal Enterprise Community
Procurement Production
Design
Marketing Sales
Service
HQ
EIM
Business Process ManagementCustomer Experience ManagementEnterprise Content Management Discovery Actuate AnalyticsInformation Exchange

‘Facebook for Machines’
In the Future Every Connected Device Could Have an Online Profile

Manufacturing 2020
Enterprise Information Management helps to embrace digital
disruption in order to Simplify, Transform and Accelerate
tomorrow’s Digital Manufacturing Business
 Continued globalization will fuel the need for a simplified & centralized digital
information hub
 Technology being introduced today is going to transform tomorrow’s
manufacturing operations
 The Internet of Things will improve visibility across supply chains, accelerating
business decisions and allowing companies to be more responsive to
customers

Thank You
Mark Morley
Email: mark.morley@opentext.com
Twitter: @markmorley
About Me: about.me/MarkMorley

Where to find Presentation Slides
Please refer to Page 7 of your
Innovation Tour Brochure for
where to access slides at the
end of the Tour

Digital Disruption Across Tomorrow's Manufacturing Supply Chains

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