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

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This presentation was originally 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 …

This presentation was originally 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 March 2015

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  • Over the past three years, CIOs have had to embrace cloud, mobile and big data but now there is much more digital information coming from a variety of sources.

    We have a number of different networks, shown in red, connected to these are devices and machines shown in orange and finally in blue we have structured and unstructured information coming off of these connected devices that will need managing in the future as well.
  • Taking a few of the more popular 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

    Advanced Robotics - Next generation advanced robotics will work side by side with human operatives, helping to automate more production processes

    Drone Logistics - Drone aircraft will transform the delivery of parts/finished goods to customers across short distance logistics networks

    Internet of Things - Introduction of more connected IoT devices /equipment will allow manufacturers to develop more responsive supply chain networks

    Future EIM platforms will need to embrace these technologies.



  • So during this session we have discussed EIM , B2B and the IoT, but what does it all look like on one slide.

    Well first we have the traditional space that OpenText has served very well for many years and with the acquisition of GXS and before that EasyLink we can now offer external connectivity across the extended enterprise. In the future I expect we will see IoT platforms being connected into the enterprise via a dedicated API and information being archived and analysed in real time accordingly.
  • Transcript

    • 1. Introduction to the Internet of Things – March 2015 Mark Morley, Industry Marketing Director
    • 2. OpenText Confidential. ©2015 All Rights Reserved. 2 Today’s Businesses are Entering a Period of Significant Digital Disruption New Sources of Unstructured Information Will Need Managing Across the Enterprise D I G I T A L D I S R U P T I O N 4G Networks Cloud B Y O C Internet of Things W I F I PaaS 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 SensorsRFID Smart Phones Tablets B Y O D Connected Devices 3D Printing Drones Wearable DevicesMass Storage M2M Robots
    • 3. OpenText Confidential. ©2015 All Rights Reserved. 3 Today, Businesses are Having to Embrace… Wearable Devices Devices such as Google Glass will transform how digital information is accessed & shared across the enterprise 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
    • 4. OpenText Confidential. ©2015 All Rights Reserved. 4
    • 5. OpenText Confidential. ©2015 All Rights Reserved. 5 Kevin Ashton defined the ‘Internet of Things’ Term in 2009 as part of his research efforts at the Auto-ID Center in North America
    • 6. OpenText Confidential. ©2015 All Rights Reserved. 6 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”
    • 7. OpenText Confidential. ©2015 All Rights Reserved. 7 # Connected Devices by 2020 (Billions)
    • 8. OpenText Confidential. ©2015 All Rights Reserved. 8 Global Economic Value Added ($Trillions)
    • 9. OpenText Confidential. ©2015 All Rights Reserved. 9 Digital Information is now Feeding the Fourth Industrial Revolution Industrie 4.0
    • 10. OpenText Confidential. ©2015 All Rights Reserved. 10 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
    • 11. OpenText Confidential. ©2015 All Rights Reserved. 11 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’
    • 12. OpenText Confidential. ©2015 All Rights Reserved. 12 An Evolving IOT Eco-System Comms & Connectivity Processing & Storage Industrial Automation Consumer Devices Platforms & Software Embedded Devices
    • 13. OpenText Confidential. ©2015 All Rights Reserved. 13
    • 14. OpenText Confidential. ©2015 All Rights Reserved. 14
    • 15. OpenText Confidential. ©2015 All Rights Reserved. 15
    • 16. OpenText Confidential. ©2015 All Rights Reserved. 16 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’
    • 17. OpenText Confidential. ©2015 All Rights Reserved. 17 Nest provides an internet enabled range of devices for home automation applications, this example shows a thermostat
    • 18. OpenText Confidential. ©2015 All Rights Reserved. 18 Domestic appliance manufacturers, such as Samsung, are expected to invest millions of dollars in internet connected home devices
    • 19. OpenText Confidential. ©2015 All Rights Reserved. 19 LG has developed a home hub to allow consumers to send text messages to remotely control household appliances
    • 20. OpenText Confidential. ©2015 All Rights Reserved. 20 Utilities companies will allow consumers to choose where their power comes from, in this case wind, sea, solar or traditional power stations
    • 21. OpenText Confidential. ©2015 All Rights Reserved. 21 Tesla Motors offers one of the most advanced connected cars on the market today, the Model S sedan
    • 22. OpenText Confidential. ©2015 All Rights Reserved. 22 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
    • 23. OpenText Confidential. ©2015 All Rights Reserved. 23 IoT Related ROI Source: Cisco
    • 24. OpenText Confidential. ©2015 All Rights Reserved. 24 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
    • 25. OpenText Confidential. ©2015 All Rights Reserved. 25 IoT Interest & Adoption Levels Respondents said that IoT solutions will be the most strategic technology initiative for their organization in a decade 80% Respondent said ease of integration to back end enterprise systems was key to the success of deploying the IoT 45% Respondents said that supply chain optimization and responsiveness was a key benefit from the IOT 46% Manufacturing respondents currently deploying an IoT solution across their business 39% Manufacturing respondents would use the IoT for tracking customer, supplier, or partner transactions 48% Manufacturing respondents would use the IoT to improve supply chain visibility 49% Source: A commissioned study conducted by Forrester Consulting on behalf of Zebra Technologies, October 2014 Base: 593 global enterprise Internet-of-Things decision-makers
    • 26. OpenText Confidential. ©2015 All Rights Reserved. 26 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
    • 27. OpenText Confidential. ©2015 All Rights Reserved. 27 1. Pervasive Visibility  Business Case - Visibility of shipments from the factory to the point of delivery  Example - Bosch developed a virtual supply chain based on inputs from an extended network of RFID readers at both their factories and across their global network of 3PL providers
    • 28. OpenText Confidential. ©2015 All Rights Reserved. 28 2. Proactive Replenishment  Business Case - Optimization of inventory levels at the ultimate point of sale  Example - SAP developed a HANA based vending machine which tracks consumption trends, makes alternative buying suggestions & places automated orders for new stock
    • 29. OpenText Confidential. ©2015 All Rights Reserved. 29 3. Predictive Maintenance  Business Case - Self diagnostics 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 and notify driver before they get too serious
    • 30. OpenText Confidential. ©2015 All Rights Reserved. 30 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
    • 31. OpenText Confidential. ©2015 All Rights Reserved. 31 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
    • 32. OpenText Confidential. ©2015 All Rights Reserved. 32 EDIFACT XML SWIFT OFTP2 IDOC ANSIAS3 Contract Mfg. Distributors Customers 3PLs Banks Insurers AS2 FTP HTTPSSuppliers B2B HULFT IDOCS External Trading Partner Community OpenText, Managing Digital Information Across Tomorrow’s Manufacturing Industry ERPPLM Internal Enterprise Community Procurement Production Design Marketing Sales Service HQ EIM Business Process Management Customer Experience Management Enterprise Content Management Discover Actuate Analytics Information Exchange
    • 33. OpenText Confidential. ©2015 All Rights Reserved. 33 Future Vision for Trading Grid Time Unified Trading Grid • Service automation • OpenText technology integration • E2E visibility with Active Documents • OpenText product integration • Greater Self-service for communities and applications • Developer APIs Programmable Trading Grid • EIM SaaS applications • SaaS integration brokerage • Business process analytics • Predictive analytics • Supply Chain KPIs • Supplier Scorecards SaaS and Analytics Trading Grid • Hyper-connected trading communities and digital enterprises • Open Trading Grid • “Things” connect to the Trading Grid providing new demand visibility • Self-assembling communities driven by analytics ‘Internet of Things’ Trading Grid SaaS Ecosystem Trading Grid • Developer Ecosystem • Trading Grid as a SaaS application platform • Dynamic communities driven by analytics • Systems of Engagement integrate supply and demand chains for digital enterprises EnablingtheDigitalEnterprise
    • 34. OpenText Confidential. ©2015 All Rights Reserved. 34 ‘Facebook for Machines’ In the Future Every Connected Device Could Have an Online Profile
    • 35. OpenText Confidential. ©2015 All Rights Reserved. 35 Tomorrow’s Digital Manufacturing Business
    • 36. Copyright © OpenText Corporation. All rights reserved. twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext W www.opentext.com