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The value of a connected factory

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Hazid Mangroe, Cisco IOE SalesLead

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The value of a connected factory

  1. 1. Accelerate  Growth  and  Improve  Operations                                                                   to  Boost  Visibility  and  Agility The  Value  of  a     Conneted factory Hazid  Mangroe Cisco  IOE  SalesLead 11  November  2015
  2. 2. 2C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential Waar gaan we  het  over  hebben Introductie Cisco Trends De  waarde van  IOE Ecosystem  van  partners Next  Steps
  3. 3. 3C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential Two  Cables   and  a  Desire   to  Connect
  4. 4. Cisco  Confidential 4©  2013-­2014    Cisco  and/or  its  affiliates.  All  rights  reserved. Intelligent   Connections   at  the  Heart   of  Cisco Intelligent    Connections Internet  of Everything Digitize  the  World Connecting: • People • Process • Data • Things Connectivity Digitize  Access  to  Information • Email • Web  Browser • Search Immersive Experiences Digitize  Interactions   (Business  &  Social) • Social • Mobility • Cloud • Video Networked Economy Digitize  Business  Process • E-­commerce • Digital  Supply  Chain • Collaboration
  5. 5. Cisco  Confidential 5©  2013-­2014    Cisco  and/or  its  affiliates.  All  rights  reserved. The image part with relationship ID rId5 was not found in the file.
  6. 6. 6C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential Shifting  Manufacturing  Trends  Are Transforming  the  Industry Gain  Share  with  LoB  in  FY16! (Momentum:  Bookings  Growth  =  2x  TAM) FY16-­18  TAM:  Products  $64.5B,  CAGR  +5.2% Services  $64.6B,  CAGR  +5.4%   New  IoT  $6.2B,  CAGR  +16% Digital  Disruption  Across  the  Value  Chain Bottom  Line:  Manufacturers   Seek  Speed  and  Simplicity,  with  New  Innovations The image part with The image part with relatio The image The image Th e im The image Supply  Chain Demand  Chain Right-­Shoring Capacity  Rationalizations Velocity,  Variation,  Volume  … Faster  Inventory  Turns New  Product  and  Service   Innovations,  Digital Business  Models Flexibility  with  Agility  for  Mass   Customization
  7. 7. 7C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential Markets  Are  Driving  New  Business  Priorities How  can I  better manage  my global supply chain? How  can  I reduce   downtime? I  need  to improve product quality How  do  I improve workforce productivity? How  can innovation   drive   profits? I  need   to  achieve real-­time   visibility How  can  I introduce   new  products   faster?
  8. 8. 8C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential It’s  a  New  Way  of  Thinking  about  Manufacturing IDC  FutureScape:   Worldwide  Manufacturing 2015  Predictions: “Our  next  phase  of  investment  in  the  factory  of  the  future  includes  a   more  transparent  manufacturing  model. …  not  only  to  advance  our  cost   competitiveness,  but  to  drive  a  different  conversation  with  our   customers  and  suppliers.”   -­ Rob  Goldiez,  Scott  Fetzer,  a  Berkshire  Hathaway  company "If  you  went  to  bed  last  night  as  an  industrial  company,  you're  going  to   wake  up  today  as  a  software  and  analytics  company.” -­ Jeff  Immelt,  CEO,  GE “…the  lines  between  hardware,  software,  and  services  are  blurred  or   are  disappearing” -­ Tim  Cook,  CEO,  Apple
  9. 9. 9C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential Digital  Disruptors  Are  Changing  the  Game But  up  to  40  percent  of  manufacturers  may  be  damaged  by   digital  disruptors 58  percent  of  CEOs  see  tech  change  as  a  top  challenge They  can  innovate  fast,  and  raise  the  stakes CPG  manufacturers  among  those  with  maximum   potential for  disruption The  winners  will  be  those  who  can  harness  digital  for  today’s new  priorities Digital  Vortex:  How  Digital  Disruption  Is  Redefining  Industries,”  Global  Center  for  Digital  Business   Transformation,  June  2015   18th Annual  PwC  CEO  Survey,  2015  
  10. 10. 10C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential Unleashing  Dramatic  Business  Outcomes Lower   Downtime Reduce   Defects Reduce   Energy Faster   NPI Maximize   OEE Lower   Inventory • Automation   Network • Analytics  and   Big  Data • Wireless  with   LBS • Wireless • Connected   Machine • Automation   Network • Energywise • Automation   Network • Plant  Floor   Virtualization • Wireless • Collaboration “Reduced   labeling   error  rate by  16%” “Achieving  20%   energy  reduction   with  real  time   visibility.” “Shaved 10-­20%  off   NPI  cycle   time” “Increased  OEE   mid  70s  to  high   80s” “Reduced   breaker   component  tire   loss  by  20%.” Multi-­National Brewery “Experienced  $40   million  downtime   reduction” Make  Money Save  Money
  11. 11. 11C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential What  If  You  Could  Drive  Better Business  Outcomes? The  Real  Economic  Value  of  Digital  Manufacturing  is  Immense Reduced   Downtime 48% Unplanned   downtime   down  from   11%  to  5.8% Reduction  in   Defects 49% Defect  rate   down  from   4.9%  to  2.5% New  Product   Introduction 23% New  product   introduction   cycle   time   reduced  from   15  to  11  months OEE   Improvement 16% Average   OEE   improved   from  74%  to  86% Improved   Inventory 35% Inventory   turns  increased from  14  to  19   Reduction  in   Energy  Use 18% Annual   energy   cost  down  from   $8.4M   to  $6.9M Source:  SCM  World/Cisco  “Smart  Manufacturing  and  the  Internet  of  Things  2015”  survey  of  418  Manufacturing  Business  Line   Executives  and  Plant  Managers  across  17  vertical  industries.
  12. 12. 12C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential But  To  Get  There,  You  Need  to  Span  the   Entire  Supply  Chain Off-­Line Connected   Factory Connected   Enterprise Supply  Chain   Orchestration +  16%  OEE   +  23%  NPI   -­ 48%  Downtime   -­ 49%  Defects   -­ 35%  Inventory • Factory  Network • Factory  Security • Factory  Wireless • Analytics  and  Big  Data • Virtualization  and  Compute • Connected  Machines • Factory  Collaboration • Location  Services • Supply  Chain   Collaboration  (SXP) • Design  Collaboration
  13. 13. 13C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential One  is  the  Loneliest  Number Sports  &   Entertainment Smart+Connected   Communities Connected   Energy Connected Industries Connected Transportation * * * * *
  14. 14. 14C97-­735861-­00  ©  2015    Cisco  and/or  its  affiliates.  All  rights  reserved.      Cisco  Confidential From  Use  Case  to  Business  Value Potential   Use  Cases (Long   List) ü In  place   today  or  already   underway X Not  interesting…at   least   at  this  time  (too   complex;;   value  is  not   clear;;  timing  is  not  right;;   etc.) ü Interesting…worthy   of  further  analysis 1 2 3 4 5 6 7 8 9 10 Prioritization   (based   on  business   value;;   complexity  to   implement;;   dependencies;;   etc.) 1 2 4 6 Select   3-­4  Use  Cases   for   further  study: ü Architecture   &  Design ü Business   Value   Assessment ü POCs  (lab) …and   potentially… ü Pilots  /  Wider  Deployment

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