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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 />

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

  • How the IoT will Impact B2B & Global Supply Chains Mark Morley, Industry Marketing Director
  • OpenText Confidential. ©2014 All Rights Reserved. 2 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
  • OpenText Confidential. ©2014 All Rights Reserved. 3 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 Sensors RFID 5G Networks Cloud B Y O C Internet of Things W I F I PaaS 5G Networks Smart Grids Mesh Networks Smart Phones Tablets B Y O D Connected Devices 3D Printing Drones Wearable Devices Mass Storage M2M Robots 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
  • OpenText Confidential. ©2014 All Rights Reserved. 4 Tomorrow’s Supply Chains Will be Affected by Numerous Disruptive Technologies Wearable Devices Devices such as Google Glass could help guide warehouse operatives to storage locations within a warehouse and display product information 3D Printing 3D Printers could introduce ‘zero length’ supply chains whereby replacement parts could be made instantly at repair or service centres Drone Based Logistics Drones such as Amazon Prime could transform and significantly reduce delivery times across short length logistics networks The Internet of Things IoT is likely to have the biggest impact on future supply chains, with every machine and device connected to the internet Future B2B platforms will need to embrace these technologies….
  • OpenText Confidential. ©2014 All Rights Reserved. 5 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 is evaluating market as an extension of their printer business
  • OpenText Confidential. ©2014 All Rights Reserved. 6  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
  • OpenText Confidential. ©2014 All Rights Reserved. 7
  • OpenText Confidential. ©2014 All Rights Reserved. 8  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 Original OEM Part 3D Printed Part Introduction of the Zero Length Supply Chain?
  • OpenText Confidential. ©2014 All Rights Reserved. 9 Google Partners with Foxconn  Google Acquired 8 robotics companies in 2H13, 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?
  • OpenText Confidential. ©2014 All Rights Reserved. 10 Foxconn Automation, the Goal
  • OpenText Confidential. ©2014 All Rights Reserved. 11 Foxconn Automation, the Reality
  • OpenText Confidential. ©2014 All Rights Reserved. 12  Devices such as Google Glass set to revolutionize how employees interact with their work environments  Many manual focused jobs require hands to be free at all times  Glass for example brings data rich information to the user in real time Wearable Devices
  • OpenText Confidential. ©2014 All Rights Reserved. 13 Wearable Devices – Warehouse Picking OK Glass, Trace Shipment Locate Part in Warehouse Scan Barcode Contact 3PL Provider X
  • OpenText Confidential. ©2014 All Rights Reserved. 14 Amazon Prime AIR  Amazon aims to offer a 30 minute delivery service via fleet of drones  FAA is due to introduce regulations in 2015 for drone operation/safety  Amazon likely to acquire drone manufacturing companies, will then own part of their logistics network
  • OpenText Confidential. ©2014 All Rights Reserved. 15 The Future of Expedited Shipments?
  • OpenText Confidential. ©2014 All Rights Reserved. 16
  • OpenText Confidential. ©2014 All Rights Reserved. 17
  • OpenText Confidential. ©2014 All Rights Reserved. 18 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”
  • OpenText Confidential. ©2014 All Rights Reserved. 19 Internet of Things – The Fourth Industrial Revolution  GE refers to IoT as the ‘Fourth Industrial Revolution’  According to Cisco, IoT is a combination of people, process, data and things  Cisco estimates the market size at $14.4Trillion  IDC estimates over 200Billion devices or ‘things’ will be connected to the internet by 2020  IoT will result in exponential growth in unstructured data flowing across the extended enterprise Source: Siemens
  • OpenText Confidential. ©2014 All Rights Reserved. 20 Key Characteristics = Core IoT Building Blocks Sensors Dedicated Processor WiFi or 4G Comms Internet / Dedicated Network Big Data Storage Analytics & Reporting Devices / ‘Things’ Energy Efficient + Cost Effective+ Quality & Reliable + Secure
  • OpenText Confidential. ©2014 All Rights Reserved. 21
  • OpenText Confidential. ©2014 All Rights Reserved. 22 An Evolving IOT Eco-System Comms & Connectivity Processing & Storage Industrial Automation Consumer Devices Platforms & Software Embedded Devices
  • OpenText Confidential. ©2014 All Rights Reserved. 23 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’
  • OpenText Confidential. ©2014 All Rights Reserved. 24 The ThingBox project provides a simple Raspberry PI based development platform to control any type of internet enabled device
  • OpenText Confidential. ©2014 All Rights Reserved. 25 Nest provides an internet enabled range of devices for home automation applications, this example shows a thermostat
  • OpenText Confidential. ©2014 All Rights Reserved. 26 Domestic appliance manufacturers, such as Samsung, are expected to invest millions of dollars in internet connected home devices
  • OpenText Confidential. ©2014 All Rights Reserved. 27 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. 28 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. 29 Tesla Motors offers one of the most advanced connected cars on the market today, the Model S sedan
  • OpenText Confidential. ©2014 All Rights Reserved. 30 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. 31 300 Sensors 3,000 Variables running 10 times per second 1GB Raw data every sailing day Wind Speed Sail Tension Mast Strain Hull Stability Oracle Racing relied on real time transmission of yacht data to ensure they could obtain the maximum performance out of their yachts
  • OpenText Confidential. ©2014 All Rights Reserved. 32 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. 33 IoT Related ROI Source: Cisco
  • OpenText Confidential. ©2014 All Rights Reserved. 34 From Integrated to Intelligent Networks Cloud ComputingSaaSASPMainframe Enterprise Application Integration Cross-Enterprise Integration 1995 Customer Centric Strategic/Competitive 2000 Organisation Critical Department Specific 201520102005 Supply Chain Visibility Web-Based Portals Unisys Integration Business Intelligence Secure Web Services RFID and EPC Sales Force Automation Enterprise Resource Planning Business Process Mgmt Customer Data Integration Enterprise Community Management Business Activity Monitoring Sense and Respond 2020
  • OpenText Confidential. ©2014 All Rights Reserved. 35 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: Proactive Replenishment Optimization and automated ordering of inventory at the ultimate point of sale 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
  • OpenText Confidential. ©2014 All Rights Reserved. 36 Internet of Things – 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.
  • OpenText Confidential. ©2014 All Rights Reserved. 37 Internet of Things – 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.
  • OpenText Confidential. ©2014 All Rights Reserved. 38 Internet of Things – 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.
  • OpenText Confidential. ©2014 All Rights Reserved. 39 Customers Suppliers Distributors Carriers & 3PLs Banks Insurers Contract Mfg. B2B Trading Partner Community AS2 FTP EDIFACT XML SWIFT OFTP2 IDOC HTTPS ANSI AS3 Bringing it all Together – EIM, B2B &IoT Procurement Production Service SalesMarketing Engineering EIM ERPPLM HQ Enterprise Community IoT API BIG Data BIG Data Utilities Office Unstructured Information from IoT Machines Production Warehouse
  • OpenText Confidential. ©2014 All Rights Reserved. 40 B2B & Supply Chain Related Benefits  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
  • OpenText Confidential. ©2014 All Rights Reserved. 41 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
  • OpenText Confidential. ©2014 All Rights Reserved. 42 Facebook’s Social Graph
  • OpenText Confidential. ©2014 All Rights Reserved. 43 ‘Facebook for Machines’ In the Future Every Connected Device Could Have an Online Profile
  • OpenText Confidential. ©2014 All Rights Reserved. 44 How Long Until SkyNet Becomes Reality?
  • OpenText Confidential. ©2014 All Rights Reserved. 45 www.opentext.com twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext Mark Morley Industry Marketing Director mark.morley@opentext.com gxsblogs.com/morleym www.twitter.com/markmorley www.youtube.com/user/marmorley68 www.slideshare.net/markmorley68 uk.linkedin.com/in/markmorley +44 1932 776040 Thank You! Web