How IoT Will Support Tomorrow's Digital Supply Chain
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SCL HUB February 2018
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How IoT Will Support Tomorrow's Digital Supply Chain
- 1. How IoT will Support Tomorrow’s Digital Supply Chain SCL HUB Conference, Hilton Waldorf Hotel, London February 1st , 2018 | Mark Morley
- 2. OpenText Confidential. ©2018 All Rights Reserved. 2 EDI & B2B integration has evolved over the yearsB2BPervasiveness EDI / B2B is continually evolving and is certainly not ‘dead’ ! 1970s 1980s Time 1990s UNIX PC 2000s 2010s IaaS | PaaS | SaaS Cloud IoT ERP B2B Big Data / Analytics
- 3. OpenText Confidential. ©2018 All Rights Reserved. 3 The perfect storm of disruptive technologies that will transform supply chain operations…
- 4. OpenText Confidential. ©2018 All Rights Reserved. 4 IoT outlook 20B >$1T 82% >50% 10 1 2 4 3 5 Connected devices are expected to grow from 10 billion today to 20 billion by 2020 Ten use cases will drive majority of the IoT needs 20 Countries will generate 82% of the IoT revenue, with developing economies generating 40% of revenue Global worth of IoT technology will be greater than $1 trillion by 2025, (up from $63 billion in 2015) Three industries (manufacturing, transportation/logistics, utilities) will generate over 50% of revenue Use cases
- 5. OpenText Confidential. ©2018 All Rights Reserved. 5 IoT spend by geographic region
- 6. OpenText Confidential. ©2018 All Rights Reserved. 6 IoT use case segmentation 10 use cases will drive most of the IoT needs 1. Predictive maintenance 2. Self-optimizing production 3. Automated inventory management 4. Remote patient monitoring 5. Smart-meters 6. Track and trace 7. Connected vehicles 8. Distributed generation and storage 9. Fleet management 10. Demand response Sources: BCG analysts Sources: Forrester’s Global Business Technographics® Networks And Telecommunications Survey, 2015
- 7. OpenText Confidential. ©2018 All Rights Reserved. 7 IoT is part of a newly converging technology market Source: IDC Futurescape 2018
- 8. OpenText Confidential. ©2018 All Rights Reserved. 8 Digital transformation is driving supply chain restructuring The aim of this study was to see whether the introduction of new disruptive digital technologies was driving new supply chain transformation initiatives…. Countries SurveyedIndustries Surveyed N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Automotive High Tech Retail CPG
- 9. OpenText Confidential. ©2018 All Rights Reserved. 9 22% 17% 12% 20% 20% 27% 47% 37% 28% 25% 11% 13% 10% 17% 12% 13% 12% 14% 14% 21% 18% 24% 22% 23% 23% 20% 13% 15% 17% 15% 24% 25% 31% 25% 30% 22% 16% 21% 24% 26% 25% 21% 25% 15% 15% 19% 12% 13% 16% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Big Data Analytics B2B cloud networks Cloud applications IoT (Use of sensors) Smart mobility Robotics Drones Wearables 3D printing Machine Learning Not using Early pilots In one functional area In more than one functional area Full use across the SC Digital transformation progress today Identify progress with each of the following digital transformation efforts in your supply chain today N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016
- 10. OpenText Confidential. ©2018 All Rights Reserved. 10 16% 14% 10% 14% 17% 24% 38% 27% 22% 17% 11% 12% 10% 14% 9% 8% 11% 12% 11% 13% 16% 19% 19% 17% 20% 22% 15% 15% 21% 23% 27% 26% 27% 33% 28% 22% 18% 28% 24% 28% 31% 29% 34% 23% 25% 25% 19% 18% 22% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Big Data Analytics B2B cloud networks Cloud applications IoT (Use of sensors) Smart mobility Robotics Drones Wearables 3D printing Machine Learning Not using Early pilots In one functional area In more than one functional area Full use across the SC N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Identify the progress with each of the following digital transformation efforts in your supply chain that you would anticipate in 3 years Digital transformation progress in three years time
- 11. OpenText Confidential. ©2018 All Rights Reserved. 11 36% 34% 32% 30% 28% 25% 24% 22% 21% 20% 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% Improved service performance Better product quality Increased visibility Improved productivity Reduced costs Increased agility Expanded market reach New supply chain capability Improved business planning Development of new products or services Something else N=141 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Benefits realized from the Internet of Things Please indicate whether or not you actually accomplished or realized tangible benefits for each goal related to digital transformation efforts for Internet of Things within your organizations supply chain 7 36% Respondents said they used the Internet of Things to improve service performance
- 12. OpenText Confidential. ©2018 All Rights Reserved. 12 49% 30% 42% 34% 29% 38% 21% 38% 28% 29% 6% 0% 20% 40% 60% Automotive (N=28) 21% 33% 22% 32% 29% 50% 42% 8% 29% 30% 0% 20% 40% 60% Manufacturing (N=22) 37% 31% 27% 53% 33% 24% 12% 24% 33% 26% 0% 20% 40% 60% High tech (N=32) 18% 25% 36% 22% 22% 39% 16% 27% 18% 3% 0% 20% 40% 60% CPG (N=33) 22% 18% 31% 37% 9% 17% 14% 4% 9% 14% 0% 20% 40% Retail (N=26) Benefits realized from the Internet of Things – by industry N=141 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Please indicate whether or not you actually accomplished or realized tangible benefits for each goal related to digital transformation efforts for Internet of Things within your organizations supply chain Improved service performance Better product quality Increased visibility Improved productivity Reduced costs Increased agility Expanded market reach New supply chain capability Improved business planning New products & services Something else
- 13. OpenText Confidential. ©2018 All Rights Reserved. 13 Benefits realized from Internet of Things – ranked country analysis France Germany UK US Japan Reduced costs 2 3 Improved productivity 3 3 1 Increased visibility 1 1 2 Expanded market reach 3 Improved business planning 2 Improved service performance 2 New supply chain capability Increased agility 1 Better product quality 1 2 3 Development of new products or services N=141 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016
- 14. OpenText Confidential. ©2018 All Rights Reserved. 14 67% 61% 60% 59% 54% 53% 46% 42% 40% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% Inventory management Overall supply chain visibility Supply chain responsiveness Order tracking Overall replenishment Sales and distribution network Support asset maintenance processes Procurement network Overall asset maintenance and performance Omni channel distribution N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 With specific regard to the internet of things (IoT), and the use of sensors, what type of supply chain processes (or use cases) would provide the most benefit for your organization? 7 67% Respondents said in relation to IoT, improved inventory management would be the main benefit Benefits of IoT across the supply chain
- 15. OpenText Confidential. ©2018 All Rights Reserved. 15 Benefits of IoT in the supply chain – ranked country analysis France Germany UK US Japan Inventory management 2 1 2 Overall supply chain visibility 3 2 1 Supply chain responsiveness 1 3 3 Order tracking 2 1 Overall replenishment 1 2 Sales and distribution network Spare parts ordering as part of the asset maintenance processes Procurement network 3 Overall asset maintenance and performance 3 Omni channel distribution N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016
- 16. OpenText Confidential. ©2018 All Rights Reserved. 16 Establishing an IoT platform
- 17. OpenText Confidential. ©2018 All Rights Reserved. 17 1999 2013 Internet of Things Industrial Value Chain Initiative Internet Plus Evolution of IoT 2015 Industrial Internet Internet of Everything Industry 4.0 Security Standards Infrastructure Issues to resolve
- 18. OpenText Confidential. ©2018 All Rights Reserved. 18 IoT definition Any machine or device connected (via fixed wire or wireless communication) to the internet & being able to transmit information in one form or another
- 19. OpenText Confidential. ©2018 All Rights Reserved. 19 Covisint, helping companies connect & manage their complex digital business eco-systems Originally formed by Ford, GM and Chrysler in 2000 to establish an automotive market place to connect with suppliers across all tiers of the automotive supply chain. 2K Global customers + 212K Connected organizations + 25M User identities + 4B Annual transactions + 1T $ in transacted business + Identity management Enterprise orchestration IoT platform services EDI messaging & portal services
- 20. OpenText Confidential. ©2018 All Rights Reserved. 20 The Covisint IAM platform • Identity manager Are you who you say you are • Authorization manager What are you authorized to access • Identity sync, analysis & intelligence Analyze and audit information access • Identity event streaming engine Integrate all user and ID directories Covisint Platform Suppliers Customers Employees Corporate apps Cloud apps Partner apps Centrally manage the entire identity lifecycle of internal and external users, as well as their access to resources across the extended enterprise
- 21. OpenText Confidential. ©2018 All Rights Reserved. 21 The Covisint IoT platform • Relationship & lifecycle management Lifecycle Management of People, Systems & Things • Ecosystem management Secure, enable, & manage trusted interactions across ecosystems • IoT messaging Integration of messaging technologies enables rapid go-to-market • Unified data model Normalize data across ecosystems Securely manage access, lifecycle and relationships across business ecosystems Ecosystem management Security and privacy Trusted interactions SystemsThings People 1. Products 2. Infrastructure 3. Industries 4. Service
- 22. OpenText Confidential. ©2018 All Rights Reserved. 22 Facebook of Things?
- 23. OpenText Confidential. ©2018 All Rights Reserved. 23 Five most critical IT competencies for IoT Business Network ProcessAnalytics Discovery Content Services ExperienceCovisint OpenText EIM Provides the foundation for an IoT Platform Covisint How do I efficiently and safely provision large numbers of IoT devices? Device Management How do I deliver improved operational intelligence using real- time IoT device feeds? Analytics IoT data is more voluminous and diverse than traditional master data — how do I govern it? Information Management How do I seamlessly integrate IoT data, events and analytics with back-end systems? Integration What approach should I take to extend existing security policies to my new IoT solutions? Security
- 24. OpenText Confidential. ©2018 All Rights Reserved. 24 IoT Platform Establishing a supply chain focused IoT platform Supply Chain Data Lake Proactive Replenishment Predictive MaintenanceStructured & Unstructured Information Pervasive Visibility Procurement Manufacturing Logistics Customers Logistics Data Sensor Data Regulatory Data Inventory Data Social Media Data Multimedia Data Trading Partner Data B2B Transaction Data
- 25. OpenText Confidential. ©2018 All Rights Reserved. 25 Supply chain use cases for IoT Pervasive Visibility IoT will provide improved end-to-end visibility of shipments through highly connected supply chain ‘assets’ across multi-modal 3PL providers RFID/GPS Proactive Replenishment IoT will provide real-time monitoring of inventory levels and consumption patterns which will automate replenishment processes with suppliers Predictive Maintenance IoT will maximize asset availability by monitoring for potential part failures and automatically initiate a replacement part procurement process
- 26. OpenText Confidential. ©2018 All Rights Reserved. 26 Wi-Fi Network Integration Mobile #3452 Material Storage Racks #3452 Distributor/3PLB2B Web Portal Trading Grid™ Online OpenText Analytics From Vendor Managed Inventory to ‘Device Managed Inventory’ GPS GPS GPS GPS GPS Customer Location Supplier Location 2. Distributor Replenishment Process1. Material Consumption Trends Proximity Based Sensors Connected Devices Enterprise IOT Platform RFID/GPS Network
- 27. OpenText Confidential. ©2018 All Rights Reserved. 27 Telematics Link Hydraulic Brakes Maintenance Schedules Historical Hydraulic Brake Failure Rates Should we repair or replace the hydraulic brake pump system on rolling stock OT-3456 Peak Time Passenger Travel Analysis Rolling Stock Running Hours OT Trains HQ OT Trains Maintenance Facility OT Fluid flow sensors detect a loss of pressure in hydraulic brake systems OpenText IoT Platform Repair: Access Digital Product Information 3D CAD Models Specifications, Reports & 2D Drawings Content Services New parts 3D printed at maintenance depot Information accessed on ruggedized mobile devices 3D Maintenance Engineer IAM Replace: Initiate Spare Part Procurement Maintenance Engineer Parts Ordering Portal IAM 3PL OT Trains Part Suppliers
- 28. OpenText Confidential. ©2018 All Rights Reserved. 28 Blockchain in the Supply Chain
- 29. OpenText Confidential. ©2018 All Rights Reserved. 29 Supply chain applications for blockchain • Distributed ledger technology that maintains a continuously growing list of ordered records (blocks) • Each block contains a timestamp and a link to a previous block (chain) • Data in the block cannot be retrospectively altered • Applying Blockchain to B2B transactions could potentially support many supply chain use cases
- 30. OpenText Confidential. ©2018 All Rights Reserved. 30 5ºC 2ºC 2ºC Blockchain use case - Perishable goods monitoring 9ºC Conceptual example 0123 Supplier ID Number Update Block 0123 B2B Transaction Sensor Information Shipment ID Number Temperature Reading In Country 3PLLast Mile 3PL Retail Store Brazil Customs Depot NA Supplier International 3PL 2ºC Carrier ID Number 5ºC Blockchain PlatformOpenText IoT Platform
- 31. OpenText Confidential. ©2018 All Rights Reserved. 31 Blockchain use case - Conflict minerals traceability • The Democratic Republic of the Congo (DRC) is one of the most mineral rich countries in the world • The trade of minerals in this country is used to fund extreme levels of violence across the region • Mines are typically controlled by militant groups • Tracing these minerals across the supply chain is a requirement for all companies in NA that report to the SEC and is a time consuming process • 3TG minerals, (tin, tungsten, tantalum & gold) should be “DRC Conflict Free”
- 32. OpenText Confidential. ©2018 All Rights Reserved. 32 B2B Transaction Sensor Information Blockchain use case - Conflict minerals traceability 0123 Vehicle ID Number Update Block 0123 Conceptual example OpenText IoT Platform 3TG Mineral Mine ID Blockchain Platform Shipment Info / Location Gold Connector Batch ID GPS GPS GPS GPS 3TG GPS UK Automotive Connector SupplierNA Production & Dealer Network 3TG MinePortCustoms DepotGold Connector SupplierOEM PlantDealer Network Africa Raw Material Provider 3TG Minerals: • Tin • Tungsten • Tantalum • Gold Used in: • Batteries • Laptop PCs • Food cans • Jewellery DRC
- 33. OpenText Confidential. ©2018 All Rights Reserved. 33 Introduction to OpenText
- 34. OpenText Confidential. ©2018 All Rights Reserved. 34 OpenText corporate profile 1,200 Partners 100,000+ Customers 25 years of innovation 90%of Fortune 1000 companies 12,000 Employees #1 On-Premises Cloud Hybrid #1 Experience Business Network Analytics Discovery Process EIM Content EIM Cloud & On-Premises $2.3B FY17 Revenue Professional Services Managed Services Business Network 1 CCM #1 DAM #1 ECM
- 35. OpenText Confidential. ©2018 All Rights Reserved. 35 OpenText Business Network Reduce cost Accelerate time to revenue Improve services Focus on core business Managed services and software to facilitate efficient, secure and compliant collaboration between people, systems, and things. Provides the necessary digital foundation for automating and insight for optimizing business processes across your extended ecosystem.
- 36. OpenText Confidential. ©2018 All Rights Reserved. 36 OpenText Business Network leadership $8 Trillion 22/25 600,000 65,000 20 24 Billion 2 Billion + transaction value world-class supply chains + businesses connected + B2B transactions + customers + faxes + countries with direct operations
- 37. OpenText Confidential. ©2018 All Rights Reserved. 37 opentext.com/businessnetwork twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext Thank you
Editor's Notes
- In December 2016, we partnered with IDC to try and see if there was a link between companies deploying new digital technologies and those companies which as a result of deploying disruptive tech are having to restructure their supply chains. Because if they do restructure or transform their supply chains then it means they will likely need a partner to manage their B2B while they focus on the transformation. Thinking of this value prop as being similar to ERP from a focus on core competencies point of view. We surveyed 250 companies across the auto, tech, mfg, retail and CPG sectors in the UK, France, Germany, Brazil, Japan, NA and Canada
- Q5a Identify progress with each of the following digital transformation efforts in your supply chain today
- Q5b Identify the progress with each of the following digital transformation efforts in your supply chain that you would anticipate in 3 years
- Q6B4. IoT (Use of sensors) - Please indicate whether or not you actually accomplished or realized tangible benefits for each goal related to digital transformation efforts for Internet of Things within your organizations supply chain
- Q6B4. IoT (Use of sensors) - Please indicate whether or not you actually accomplished or realized tangible benefits for each goal related to digital transformation efforts for Internet of Things within your organizations supply chain
- Q7. With specific regard to the internet of things (IoT), and the use of sensors, what type of supply chain processes (or use cases )would provide the most benefit for your organization?
- So how did IoT evolve, well firstly the technology is not as new as you might think. A British researcher by the name of Kevin Ashton actually coined the term internet of things back in 1999 while working at the AutoID research centre in North America. It wasn’t until 2013 that Cisco rejuvenated the market by introducing the Internet of Everything. GE introduced the industrial internet the same year and Industry 4.0 started to enter the European market, especially in Germany. In 2015 Japan introduced the Industrial value chain initiative and China introduced Internet Plus. So at the moment we seem to be struggling to introduce a standard name for the technology but in general they really achieve the same thing, namely “Any machine or device connected (via fixed wire or wireless communication) to the internet & being able to transmit information in one form or another” Clearly there are still some issues with IoT, securing end points for example, establishing suitable networks to connect these devices and then developing global standards to allow information from these connected devices to be seamlessly exchanged with enterprise business systems. But as with other technologies, new standards bodies are emerging around the world to help drive some of these standardisation requirements.
- So referring back to one of Benoit’s earlier slides, these are the five key components that make up an IoT platform. What I would like to do is overlay how OpenText can potentially support an IoT platform Firstly device management, now there are many companies that offer edge connectivity or provide an interface to extract information off of a connected device. From our point of view we can provide tools to design web portals to allow users to remotely login in to connected devices and configure or change settings on the device Then we have information management, now to date we have focused on sensor based information coming off of connected devices, but what about other forms of structured and unstructured information?, photographs, video files and other types of managing that will need transporting back to a central information management platform. This information would then be archived for future use Sensor based information may need be analysed and our embedded analytics offering can actually be embedded onto the actual connected device. Trigger events such as those described earlier can then be used to initiate other business processes Then there is the any to any integration capabilities, from integrating to internal enterprise systems such as ERP through to seamless connectivity to an external trading partner community Then you must ensure that information is aligned and flowing to specific business processes, so business process management will become important and finally there is security of the IoT platform and ensuring that only recognised or registered users can get access to the platform. Enterprise Information Management is a set of methods and technologies that help customers to maximize the value of their information while minimizing its risks.
- A sensor on a hydraulic brake system detects a problem with a cooling pump This information is sent via a telematics link to the nearest train maintenance depot The information is also sent up to Industry4.0 platform HQ then connects into the OT cloud and then onto our analytics platform (Magellan) to analyse the best course of action to either repair or order a replacement part In order for Magellan to determine the best course of action, it takes input from passenger travel analysis, rolling stock running hours, historical hydraulic brake failure rates, hydraulic brake maintenance schedules, then it suggests a course of action- Maintenance pattern – should we decrease inspection intervals? Supplier quality – did a defective charge slip through inspections? Supplier improvement – can the pump design be improved to reduce future failures? Proactive observation – checking water temperature levels more often with telematics in order to find a tell tale increase before the unit seizes and self-destructs. Aggregating these four pieces of information will then determine the best course of action to take Then either the field maintenance engineers will get secure access via IAM to the digital model of the train hosted in the OpenText Cloud and then determine how to repair Or if the part cannot be repaired the maintenance engineer remotely logs in, securely via IAM, to the OT Trains parts ordering portal on the BN and the part is shipped by 3PL out to the train maintenance depot for replacement.
- With 25 years of experience in the Software industry, not only we are the leader in the Enterprise Information Management space; OpenText is also leader in key areas of the Information Flow such as Enterprise Content Management (ECM), Business Networks (BN) and Digital Asset Management (DAM). Our LTM revenue + the anticipated annualized revenues of recently completed acquisitions, and reflective of historical annualized revenue from Dell-EMC’s ECD business is ~$2.8B. This is sustained by a large installed base of >100,000 customers, by the domain expertize of our ~ 12,000 employees and our >100 applications, products and solutions organized in 6 product pillars: Experience, Business Network, Process, Content, Discovery and Analytics.
- Why? Focus on your core – this is hard work, 3 Cs Lower cost – 80% in labor Accelerate time to market / time to revenue Deliver improved / differentiated services – easier to do business with Operational efficiency = lower cost/focus on core Accelerate time to market Insight to optimize processes, minimize risk Consolidate and secure IX Customer satisfaction