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Industry 4.0 and the Internet of Things

As presented during the Internet of Things West Conference held in Las Vegas, November 5-6, 2015. The Internet of Things is going to enable data flow that you never thought was possible – from plant to plug!

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Industry 4.0 and the Internet of Things

  1. 1. Industry 4.0 and the Internet of Things What Does This Mean for You, Your Company and Your Future? Property of Schneider Electric Ralf Neubert Senior Director – Innovation & Technology, Industry Business – Schneider Electric
  2. 2. URBANIZATION +2.5B people in cities by 2050 Source: United Nations, DESA DIGITIZATION Source: Cisco 50B connected things by 2020 INDUSTRIALIZATION +50% Energy consumption by 2050 Source: IEA Page 2Confidential Property of Schneider Electric | Megatrends are provoking a rise in Energy Demand
  3. 3. Page 3Confidential Property of Schneider Electric | Resources in the next 40 years Energy consumption will almost double CO2 emissions need to be halved ×1.5 ÷2 We have to become 3 times more efficient 3× Note: Forecast for 2050 compared to 2009 levels
  4. 4. • A dynamic industry is evolving around IoT technology and has a large potential • IT is becoming an integral part of a product itself • Technology will transform industrial production Internet of Things/Industry 4.0 And Its Industrial Impact An evolutionary opportunity McKinsey: Internet of Things offers a potential economic impact of $4 trillion to $11 trillion a year in 2025 Examples of transformation technologiesBCG, Federal statidtical office of Germany: Industry 4.0 is expected to generate significant productivity gains Note: Conversion costs = manufacturing costs excl. material Page 4Property of Schneider Electric | 0 1 2 3 4 Human Retail Cities Factories Low estimates [trillion $] High estimates [trillion $] 0 10 20 30 40 50 60 Others Mechanical engineering… Food and Bev Automotive Productivity conversion cost [%] Gross production share in GER [%] Cybersecurity Big Data and Analytics Augmented Reality Cloud Robot –Assisted production Simulation Wireless
  5. 5. 0 10 20 30 40 50 1995 2003 2010 2013 2015 2020 Connected people Connected objects Energy Automation Software & Analytics Convergence Operational Technology meets Information Technology IT OT The Internet of Things is going to enable data flow that you never thought was possible – from plant to plug Source Cisco IBSG April 2011 / Internet World Statistics Page 5Property of Schneider Electric |
  6. 6. Industry 4.0 represents an Evolution... Complexity/Productivity 3rd Industrial Revolution 1970s Use of electronics and IT for automation (1st PLC - Schneider Electric Modicon 084) 2nd Industrial Revolution 20th Century Introduction of mass production powered by electrical energy 1st Industrial Revolution 18th Century Introduction of mechanical production powered by water and steam 4th Industrial Revolution “Industry 4.0” 2010+ Cyber-Physical Systems (CPS) Page 6Property of Schneider Electric | From steam towards intelligent systems
  7. 7. Industry 4.0 and (Industrial) Internet of Things CPS – Cyber Physical Systems Source: Industrie 4.0 Platform Business gets Digital Business Page 7Property of Schneider Electric |
  8. 8. Some Key Challenges ...and Opportunities Page 8Property of Schneider Electric |
  9. 9. Getting a Customer Service Company “The Internet of everything changes everything.” - John Chambers, Chairmen, former CEO Cisco. Page 9Property of Schneider Electric |
  10. 10. Understand Your Data - It‘s About Semantics... “Do you wish me a good morning, or mean that it is a good morning whether I want it or not; or that you feel good this morning; or that it is a morning to be good on?” ― J.R.R. Tolkien, The Hobbit Page 10Property of Schneider Electric |
  11. 11. IoT and Standardization - IT/OT convergence “IT is from Mars, OT is from Venus” - Internet blog Page 11Property of Schneider Electric |
  12. 12. More Devices, More Complexity. According to Gartner by 2020, the Internet of Things will consist of 26 billion devices and it will generate over $300 billion in incremental revenue, the majority generated by services.Page 12Property of Schneider Electric |
  13. 13. Talent Acquisition Data Analysts is getting a profession that is highly demanded. Already today. Page 13Property of Schneider Electric |
  14. 14. Breaking Down Silos “We are heading towards a world where everything is connected and better decisions can be made in real time.” – Forbes Magazine 2014Page 14Property of Schneider Electric |
  15. 15. Secure by Design “Security needs to be built in as the foundation of the Internet of Things.” – Michael Fey, CTO, IntelPage 15Property of Schneider Electric |
  16. 16. Take aways Source: Intel Your Business is Getting Digital • Internet technology (smart connected products) is already there • Cybersecurity is a concern. • Business Practices fundamentally changing to real-time, forward looking decision making. • We are just starting to understand the IoT opportunity …and 85% of industrial end points are not yet connected* Page 16Property of Schneider Electric |
  17. 17. You‘ve got questions? Follow Schneider Electric Contact Ralf Neubert Schneider Electric, USA 800 Federal Street, Andover, MA 01810 Email: Cell: +1 978 289 3084 Page 17Property of Schneider Electric | @SCHNEIDERNA