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OT - How IoT will Impact Future B2B and Global Supply Chains - SS14
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OT - How IoT will Impact Future B2B and Global Supply Chains - SS14

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This presentation was given at an EDIFICE plenary in Brussels in May 2014. EDIFICE is a European based industry association driving B2B standards across the high tech industry. The presentation......

This presentation was given at an EDIFICE plenary in Brussels in May 2014. EDIFICE is a European based industry association driving B2B standards across the high tech industry. The presentation discussed digital disruption and how the Internet of Things is likely to impact future design of B2B platforms and global supply chains. - Updated May 2014

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  • SPEAKER NOTES <br /> At the heart of all the new technological innovation is information. No longer is information considered just the cost of doing business – now, it is well understood that information can be instrumental in driving innovation and growth. <br /> <br /> When used the right way, information leads to greater customer satisfaction, accelerates time to market, helps to open new opportunities and enables you to remain competitive. In short, information is a key strategy component for every organization today. <br /> <br /> <br />

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  • 1. Introduction to the ‘Internet of Things’ Mark Morley, Industry Marketing Director
  • 2. OpenText Confidential. ©2014 All Rights Reserved. 2
  • 3. Kevin Ashton defined the ‘Internet of Things’ Term in 2009 as part of his research efforts at the Auto-ID Center in North America OpenText Confidential. ©2014 All Rights Reserved. 3
  • 4. OpenText Confidential. ©2014 All Rights Reserved. 4 The Internet of Things - What Exactly is it? Internet of Things (IoT) Internet of Everything (Cisco), Industrial Internet (GE Software), Industry 4.0 (Siemens) 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”
  • 5. Digital Information is now Feeding the Fourth Industrial Revolution Industrie 4.0 OpenText Confidential. ©2014 All Rights Reserved. 5 GE refers to IoT as the ‘Fourth Industrial Revolution According to Cisco, IoE is a combination of people, process, data and things IDC estimates over 200Billion devices will be connected to the internet by 2020 Cisco estimates the market size at $14.4Trillion
  • 6. OpenText Confidential. ©2014 All Rights Reserved. 6
  • 7. Big Data Storage OpenText Confidential. ©2014 All Rights Reserved. 7 Core IoT Building Blocks Sensors Dedicated Processor Key Characteristics = WiFi or 4G Comms Internet / Dedicated Network Analytics & Reporting Devices / ‘Things’ Energy Efficient + Quality & Reliable + Cost Effective + Secure
  • 8. OpenText Confidential. ©2014 All Rights Reserved. 8 An Evolving IOT Eco-System Comms & Connectivity Processing & Storage Industrial Automation Consumer Devices Platforms & Software Embedded Devices
  • 9. OpenText Confidential. ©2014 All Rights Reserved. 9
  • 10. OpenText Confidential. ©2014 All Rights Reserved. 10 Recent Announcements  Cisco to invest $150M in new start up funds to encourage development of new IoT solutions  Zebra Technologies acquires Motorola Solutions Enterprise Business Unit for $3.5B  Cisco Invests $1B to develop a new open sourced cloud based network called ‘Intercloud’  PTC acquires ThingWorx for $112M to link the world of PLM and Design to IoT based solutions  Andy Rubin appointed by Google to head up their new Robotics division, 8 acquisitions in past 12 months  GE establishes new Software division in California to develop the ‘Industrial Internet’
  • 11. Nest provides an internet enabled range of devices for home automation applications, this example shows a thermostat OpenText Confidential. ©2014 All Rights Reserved. 11
  • 12. Domestic appliance manufacturers, such as Samsung, are expected to invest millions of dollars in internet connected home devices OpenText Confidential. ©2014 All Rights Reserved. 12
  • 13. LG has developed a home hub to allow consumers to send text messages to remotely control household appliances OpenText Confidential. ©2014 All Rights Reserved. 13
  • 14. Utilities companies will allow consumers to choose where their power comes from, in this case wind, sea, solar or traditional power stations OpenText Confidential. ©2014 All Rights Reserved. 14
  • 15. Utilities companies in Barcelona, Spain have installed internet enabled refuse bins to help identify whether bins are full or empty OpenText Confidential. ©2014 All Rights Reserved. 15
  • 16. Tesla Motors offers one of the most advanced connected cars on the market today, the Model S sedan OpenText Confidential. ©2014 All Rights Reserved. 16
  • 17. 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 OpenText Confidential. ©2014 All Rights Reserved. 17
  • 18. The McLaren Formula One Race Team relies on SAP HANA to capture car related performance data at every Grand Prix worldwide OpenText Confidential. ©2014 All Rights Reserved. 18
  • 19. OpenText Confidential. ©2014 All Rights Reserved. 19 IoT Related ROI Source: Cisco
  • 20. From Integrated to Intelligent Networks Enterprise Community Management Customer Data Integration Supply Chain Visibility Web-Based Portals Sense and Respond Mainframe ASP SaaS Cloud Computing OpenText Confidential. ©2014 All Rights Reserved. 20 Enterprise Application Integration Cross-Enterprise Integration 1995 Strategic/Competitive Customer Centric 2000 Organisation Critical Department Specific 2005 2010 2015 Unisys Integration Business Intelligence Secure Web Services RFID and EPC Sales Force Automation Enterprise Resource Planning Business Process Mgmt Business Activity Monitoring
  • 21. 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 OpenText Confidential. ©2014 All Rights Reserved. 21 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
  • 22. OpenText Confidential. ©2014 All Rights Reserved. 22 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.
  • 23. OpenText Confidential. ©2014 All Rights Reserved. 23 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.
  • 24. OpenText Confidential. ©2014 All Rights Reserved. 24 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.
  • 25. Managing Information Across Tomorrow’s Digital Manufacturing Business Procurement Production PLM ERP OpenText Confidential. ©2014 All Rights Reserved. 25 EDIFACT XML SWIFT OFTP2 IDOC Internal Enterprise Community AS3 ANSI B2B HULFT Contract Mfg. Distributors Customers 3PLs Banks Insurers AS2 FTP Suppliers HTTPS IDOCS External Trading Partner Community Design Marketing Sales Service HQ EIM
  • 26. B2B & Supply Chain Related Benefits OpenText Confidential. ©2014 All Rights Reserved. 26  Supply chains will become even more responsive due to the sheer number of connected devices monitoring the end to end movement of shipments  Cross enterprise connectivity and collaboration will significantly improve business process and overall operational efficiencies  Introduction of more closed loop, intelligent B2B platforms and supply chains  Significant investment in new cloud based solutions will improve functionality and usability of next generation supply chain platforms
  • 27. OpenText Confidential. ©2014 All Rights Reserved. 27 Issues to Resolve  Address the inevitable security and privacy issues relating to IoT networks (in-house and third party), eg ensure virus protection for connected devices  Investment required to WiFi enable equipment, deploy sensors, build out IP and cellular networks  Introduce appropriate global standards to support future IoT related platforms, setting up relevant industry bodies such as the Industrial Internet Consortium (Cisco, GE, IBM, Intel, AT&T)  Avoid an IoT related ‘Dotcom’ style bubble of high valuations on unproven companies or technologies
  • 28. ‘Facebook for Machines’ In the Future Every Connected Device Could Have an Online Profile OpenText Confidential. ©2014 All Rights Reserved. 28
  • 29. Tomorrow’s Digital Manufacturing Business OpenText Confidential. ©2014 All Rights Reserved. 29
  • 30. OpenText Confidential. ©2014 All Rights Reserved. 30 Thank You Mark Morley Industry Marketing Director mark.morley@opentext.com gxsblogs.com/morleym www.twitter.com/markmorley www.youtube.com/user/markmorley68 www.slideshare.net/markmorley68 uk.linkedin.com/in/markmorley +44 1932 776040
  • 31. Mark Morley | mmorley@opentext.com Copyright © OpenText Corporation. All rights reserved. twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext W www.opentext.com