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Towards resource efficiency with the help of IoT in the 4th industrial revolution

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Climate change requires manufacturing companies to change the way they do business, by re-thinking products and services. Resource efficiency will be a key to success, but an increased cooperation among different business functions is fundamental. Internet of things will be an important enabler and will help companies undergo such challenging transformation. The presentation illustrates some key points and the links with energy efficiency and energy management.

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Towards resource efficiency with the help of IoT in the 4th industrial revolution

  1. 1. Energy efficiency in the era of IoT and the fourth industrial revolution Dario Di Santo, FIRE Ponti 2018, Bolzano
  2. 2. X www.fire-italia.org The Italian Federation for the Rational use of Energy is a no-profit association founded in 1987 that promotes energy efficiency, supporting energy manager, ESCOs and other companies dealing with energy. Besides the activities directed to its members, FIRE operates under an implementing agreement with the Ministry of Economic Development to manage the Italian energy manager network since 1992. In order to promote energy efficiency FIRE cooperates and deals with public authorities, energy technology and service companies, consultants, medium and large consumers, universities and associations to promote best practices and improve the legislation. FIRE manages SECEM - an accredited body - to certify the Energy management experts according to the standard UNI CEI 11339. FIRE: the association for energy efficiency
  3. 3. X FIRE: the association for energy efficiency Some members of FIRE: A2A S.p.A., ABBVIE s.r.l., ACTV S.p.A., Aeroporto Valerio Catullo S.p.A., Agenzia per l'Energia e lo Sviluppo Sostenibile, AICE scarl, Alpiq Intec S.p.A., AMIA S.p.A., AMIAT S.p.A., Ascopiave S.p.A., Atlas Copco S.p.A., Avvenia s.r.l., Axpo Italia S.p.A., Azienda provinciale per i servizi sanitari TN, Banca Mediolanum S.p.A., Banca Popolare di Sondrio, Beghelli S.p.A., Berco S.p.A., Bit Energia s.r.l., Bosch Energy and Building Solutions Italy s.r.l., Brembo S.p.A., Cabot Italiana S.p.A., Carbotermo S.p.A., Carraro S.p.A., Carrefour Italia S.p.A., Centria s.r.l., Comau S.p.A., Compagnia Generale Trattori S.p.A., Consul System S.p.A., CPL Concordia soc. coop., Credito Emiliano S.p.A., CTI Energia e Ambiente, DBA Progetti S.p.A., DNV GL Business Assurance Italia s.r.l., Edilvì S.p.A., Edison Energy Solutions S.p.A., Egidio Galbani s.r.l., Electrade S.p.A., Elettra - Sincrotrone Trieste S.p.A., Elettrostudio Energia S.p.A., Enarkè associati, Enel Energia S.p.A., Energika s.r.l., Energon Esco s.r.l., Energy Saving s.r.l., Energy Team S.p.A., Engie Servizi S.p.A., ENI S.p.A., Estra Clima s.r.l., Fedabo S.p.A., Fenice S.p.A., Ferrari S.p.A., Ferrero Industriale Italia s.r.l., Ferriere Nord S.p.A., Fiera Milano S.p.A., Fincibec S.p.A., Finco, Finstral AG S.p.A., FIPER, Fondazione Policlinico Università A. Gemelli, Gewiss S.p.A., Gruppo Società Gas Rimini S.p.A., Hera S.p.A., Hitachi Drives and Automation s.r.l., Holcim S.p.A., IDM Südtirol, Ilsa S.p.A., Industrie Cotto Possagno S.p.A., Intesa Sanpaolo S.p.A., Iplom S.p.A., IRBM Science Park S.p.A., IREN S.p.A., ISAB s.r.l., Italcementi S.p.A., Italgas Reti S.p.A., Italgraniti Group S.p.A., Kairos s.r.l., Lidl Italia s.r.l., Loclain s.r.l., Manutencoop Facility Management S.p.A., Marche Multiservizi S.p.A., Mater-Biopolymer s.r.l., Mediamarket S.p.A., MM S.p.A., Montello S.p.A., NBI S.p.A., Pasta Zara S.p.A., Politecnico di Torino - Dip. di Energetica, Polynt S.p.A., Publiacqua S.p.A., Raffineria di Milazzo S.C. p. A., RAI - Radiotelevisione Italiana S.p.A., Restiani S.p.A., Rete Ferroviaria Italiana S.p.A., Roquette Italia S.p.A., Samandel S.p.A., San Marco Bioenergie S.p.A., Sandoz Industrial Products S.p.A., Schneider Electric S.p.A., SDA Express Courier S.p.A., Seaside s.r.l., Siena Ambiente S.p.A., Siram S.p.A., Solvay Energy Services s.r.l., Studio Botta, Tecno s.r.l., Thales Alenia Space Italia S.p.A., Tholos s.r.l., Trenitalia S.p.A., Trenord s.r.l., Trentino Trasporti S.p.A., Turboden s.r.l., Università di Genova - DITEN, Università Campus Biomedico, Università Cattolica del Sacro Cuore, Wind Tre S.p.A., Yanmar R&D Europe s.r.l., Yousave S.p.A. Our members represent both the supply and the demand side of energy efficiency services and solutions. Around 400 members, almost equally divided between organisations and professional.
  4. 4. X 4 FIRE: the association for energy efficiency Besides being involved in many European projects, listed next, FIRE implement surveys and market studies on energy related topics, information and dissemination campaigns, and advanced training. Some of FIRE clients over the years: Ministry of Environment, ENEA, GSE, RSE, large organizations (such as Centria, ENEL, Ferrovie dello Stato, FIAT, Finmeccanica, Galbani, H3G, Poste Italiane, Telecom Italia, Unioncamere), universities, associations, energy agencies and exhibition organizers. www.fire-italia.org On-going and just completed EU projects:
  5. 5. X www.secem.eu SECEM SECEM, European System for Certification in Energy Management, is a certification body created by the FIRE. SECEM was the first body to offer third-party certification for Energy Management Experts (EMEs) according to UNI CEI 11339 and is accredited according to the ISO/IEC 17024 standard. In Italy two standards were developed in order to promote the qualification of energy efficiency operators: UNI CEI 11339 for EMEs was issued in 2009, UNI CEI 11352 for ESCOs was published in 2010. A new standard for energy auditor is presently under preparation. Both the mentioned standards are recognized from the national legislation within the energy audit obligations for large companies introduced by the EED directive and the white certificate scheme.
  6. 6. Paris climate agreement 2015 6 Energy efficiency is the main pillar of the action required to save us and our planet. It is not just an issue of policies, but also the need of a different approach towards the use of energy.
  7. 7. Re-think business 7 KEY RESOURCES Which resources are necessary (financial, physical, human, patents, etc.)? Are resources sustainable (reduced use, limited impact, attention to social issues, etc.)? KEY ACTIVITIES What basic activities are necessary (manufacturing, software, distribution, maintenance, etc.)? Resource efficiency? VALUE PROPOSITION What problems/ desires of our customers are we answering? What are the needs of our customers that we are fulfilling? What are the key features of our products and services that respond to the problems and needs of our customers? How can we make our product/service more sustainable? CHANNELS How do our customers want to be reached? Do the distribution and communication channels have a low impact? CUSTOMER SEGMENTS Who are our most important customers? What are their primary models? What do they want us to do for them? What are the needs of customers related to resource efficiency and sustainability? KEY PARTNERS Who are our key partners and suppliers? What do we get and give them? What is their commitment to sustainability? CUSTOMER RELATIONSHIPS How can we reach, keep and grow our customers? How can we cultivate sustainability values with our customers? COST STRUCTURE What are the costs associated with our business model? Are these costs fixed or variable? What is the impact of sustainability on reducing costs and risks? REVENUE STREAMS How are revenues generated? What are the positive economic flows connected to our business? Which are the variables that influence revenues and which the price strategies? How to make greater margins through sustainability? Model created by Dario Di Santo (FIRE), based on Osterwalder’s Business Model Generation. Source: FIRE
  8. 8. Get ready for the change! 8 Some elements to focus on The electric system is rapidly changing (prosumers, storage, demand response) The 4th industrial revolution and a new mobility will impact the market The rational use of resources will become a driver for process transformation New low impact product and services will be required by market New supply chains, circular economy, new district services will be developed
  9. 9. We need vision Fonte: “Unlocking Industrial Resource Productivity: 5 core beliefs to increase profits through energy, material, and water efficiency”, Hammer e Somers, McKinsey & Company. 9
  10. 10. And we need a new energy management 10 We need new sustainable business models to create wealth and improve our lives. Energy efficiency No priority Strategic element Energy is integrated with core business Behavioural change Energy audits and monitoring Knowledge Energy efficiency is not known Awareness ISO 50001 LEAN manufacturing Attitude Resource efficiency on the whole value chain Olistic approach Re-think products and services to use less resources both for their production, their use and their disposal. Source: FIRE.
  11. 11. The role of IoT 11 Are you kidding me? How can I do all that? Well, I’ll be the perfect solution… but I’m engaged with my new movie, so you can try IoT And no, it’s not in my bag… ask someone else
  12. 12. Surce: i-scoop - essential IoT business guide. The role of IoT 12
  13. 13. Ai and deep learning 13 Few would have thought that GPUs developed for games has become the core of deep learning, capable of exploiting neural networks concepts. A lot of opportunities arise from AI and deep learning activities. Nvidia starts developing AI GPUs
  14. 14. Some suggestions 14 Start using IoT to improve what you do Results will come after an adequate IoT adoption threshold is reached It is important to change behaviours and mentality, not just installing equipment We are just at the beginning of a revolution: new skills are required Be careful: more IoT means more risk of ICT attacks
  15. 15. The role of energy efficiency 15 Understanding multiple benefits of energy efficiency can help to drive the change required Source of the figure: IEA, Capturing the multiple benefits of energy efficiency.
  16. 16. Expand the horizon beyond energy 16 Three reasons to evaluate non energy effects Economic value: NPV and IRR of projects improve, since cash flows consider both energy savings and other elements. De-risking: Evaluation of negative effects allows to better understand – and thus address – risks related to the energy project. That both reduces the perceived risk associated with energy efficiency (one of the main barrier to investments) and facilitate third party financing. Proposal value: It becomes possible to propose energy efficiency projects by highlighting and exploiting benefits other than energy, thus addressing the core interest of other company’s business functions.
  17. 17. Impact on risks, costs, value proposition 17 M-Benefits is an EU project aimed at developing tools to support enterprises to quantify NEBs.
  18. 18. Leaders need sustainability and IoT 18 And you have to trust that the dots will somehow connect in your future… Source of figures and data: Apple. Consumer support.
  19. 19. Re-design products Source of figures and data: Dyson. 19 Focus on what products do, and try to think how to improve it, using less resources, and how to use IoT to deliver a better experience or to improve know-how.
  20. 20. Re-think packaging and logistic 20 There are numerous opportunities to improve the supply chain and the distribution of its products in a circular economy perspective and by using IoT. Not just robots, but re-think process, Amazon Tracking cold chain products temperatures, Cargo Data Low environmental impact From 55.5 g to 7 g per package From 33% to 70% of recycled paper From 150 to 800 packages/pallet Automatic tracking and location of assets, Alstom Improved packaging, Vimar Recycling of production waste, Pedon
  21. 21. Re-design the manufacturing process Source of figures and data: FCA. 21 The re-design of the manufacturing process can produce big results through: optimised layouts (do more in less space, using less resources); energy efficient machinery (it is important to look at every phase, including stand-by); monitoring and automation (big data e modern ICT systems allow for flexibility, quality, productivity, and resources management; industry 4.0 solutions.
  22. 22. Don’t forget the supply chain 22 Most of the possibile improvements are there.
  23. 23. FIRE conferences and training courses 23 Conferences Enermanagement Edifici Bologna, 23 ottobre 2018 Enermanagement Trasporti Bologna, 24 ottobre 2018 Enermanagement Industria Milano, 29 novembre 2018 Certificati bianchi, Roma, 2019 Convention SECEM,
 Rimini, 2019 Conferenza ISO 50001, Padova, 2019 Conferenza EPC,
 Bologna, 2019 www.fire-italia.org/eventi Training courses: energy manager e EGE (on-site and on-line); IPMVP-CMVP; intensive training (energy market, RES, CHP, EnMS, LCA, solutions for buildings and industry, etc.).
  24. 24. What can we do together? FIRE can be a partner for many activities: carrying out surveys among energy managers, ESCO, EGE, companies with ISO 50001, etc .; implementation of market and sectoral studies; guides and analysis on incentive tools and policies; information campaigns and behavioral change; dissemination campaigns; energy audits and feasibility studies; training courses on energy management and its tools (ISO 50001, energy audits, EPC, IPMVP, LCCA, feasibility studies, etc.), policies and incentives, solutions for energy efficiency, cogeneration, etc; European projects (e.g. Horizon2020), international cooperation, and much more… Get in touch! 24 segreteria@fire-italia.org
  25. 25. Disclaimer 25 Lego and Apple are registered trademarks. We yellow- faced puppets were fished on Google, where we fill out research without apparent copyright in use. We do not necessarily think as the author of this presentation (poor Shakespeare, bent on wicked ideas…). In fact, we do not even think, but let you enjoy with us how much you want… We are even better than energy efficiency!
  26. 26. Thank you! www.facebook.com/FIREenergy.manager www.linkedin.com/company/fire-federazione- italiana-per-l'uso-razionale-dell'energia www.twitter.com/FIRE_ita ! www.dariodisanto.com

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