Business Ecosystems Internet of Things at ABB

—NOVEMBER 2018
Future Business Ecosystems - Leaders of tomorrow invest
today into ecosystems
Business Ecosystems & IoT , Management Events, Helsinki 13.11.2018
Mikko Marsio, Global Digital, Process Industries

—
Improved productivity (+200%), reduced energy (-30%), & longer product life (+30%)
November 19, 2018 ABB PROCESS INDUSTRIES DIGITALSlide 2
Digital operations for industry
SELECTION

—
Reduced installation time (-40%), maintenance costs (-50%) and outage time (-50%)
Digital operations for utilities
SELECTION

—
Proactive detection of faults (90%), reduced maintenance costs (-20%) and energy costs (-5%)
Digital operations for transport & infrastructure
SELECTION

—
Sadara: largest petrochemical plant
150,000 connected devices
November 19, 2018Slide 5

—
ABB Ability™ solutions & platform
ABB Ability™
Provides ABB with
efficiency and scale
Delivers customer benefit
(uptime, speed, yield…)
What
How
Platform
(common technologies for device, edge, and cloud)
Utilities
solutions
Industry
solutions
Transport &
Infrastructure
solutions
ABB Ability™ solutions

—
Digital business covering Process Industries Globally
Industry specific tailored offerings for safe, reliable and efficient operations
We deliver complete electrification and
automation solutions, industry-specific
products and lifecycle services
– Local presence backed by a global
network
– Global project execution centers
create standardization and efficiency
– Deep industry knowledge
– Seven Hub BUs, more than 40 LBUs
– Approx. 4.000 employees
– 1.400 million USD in revenue
Mining / Minerals processing
Mining, grinding, mineral
processing, hoisting, material
handling
Aluminium / Cement
Primary aluminum production
and cement manufacturing
Metals
Primary metals production, hot
and cold rolling mills
Pulp & Paper
Pulp and paper manufacturing,
OEMs
Scope of supply

ABB Digital Mine
Mining as a case study about IoT and Ecosystems
https://youtu.be/dPwV6hP8p2w

Start building future today offered by ABB and its ecosystem partners
ABB Digital Mine - Presented solutions and concepts
Drones
People
Self-driving vehicles
Robots
Sensors
Equipment
Blockchain Condition
monitoring
Data
Analytics
Augmented reality
Predictive
maintenance
Machine learning
Data models
IT-OT integration
Autonomous operation
Vision
Change Management
APIs
IIoT
Digital twin
Artificial Intelligence

Platform business models are current digital business winners (platform…= ecosystem)
Ecosystems - Why we have interest for this topic? Why should you?
“Network Orchestrators –
organizations with digital
platforms and virtual networks –
are 2-4 times more
valuable than traditional
organizations. Further, they are
more profitable, scale faster and
have lower marginal costs”
Research of 1500 companies. The Wharton
School, 2016
https://news.wharton.upenn.edu/press-releases/2016/06/networks-
and-platform-based-business-models-win-in-the-digital-age-
according-to-a-new-study-by-the-wharton-school-of-the-university-of-
pennsylvanias-sei-center-for-advanced-studies-in-m/

From product silo benefits to collaborative integrated value creation
Industry sectors are under digital transformation
Single technology
providers
Portfolio
providers
Horizontal/
Vertical integrator
 Value chain
optimization
 Autonomous
processes
 Integrating solutions
 IT-OT integrations
 Value add services &
solutions to own
equipment
 Process optimization
 (IT-OT integrations)
SCOPE OF
DIGITAL
STRATEGIC INTENT
Superior
technology
Superior
orchestration
 Projects Ecosystem
 Plant Ecosystem
 Value chain
Ecosystem (Global)

 Offerings Ecosystem
MARKET TODAY

Everything was developed and managed by ABB
Our historical model for project execution
ABB
Analytics by
ABB
UX Design by
ABB
Software
programming by
ABB
Engineering by
ABB
Hardware by
ABB
ABB

Welcoming partnerships with the future in mind
Ecosystems in project execution
ABB
Startup
company
UX Design
company
Software
company
Partnership
company
IoT h/w
partner
ABB
PHASE ‘FUTURE’ ECOSYSTEM WITH ABB ORCHESTRATION
Startup
company
UX Design
company
Software
company
IoT h/w
partner
Partnership
company
ABB
PHASE 1 – DIGITAL PARTNERSHIPS

There exists already an ecosystem – Question is more whether is it managed as one or not
Ecosystem on mine/plant level

A Number of People, Companies, Assets, Materials,
Ecosystems on Value chain level
Exploration of business ideas and models
to discover ecosystem, product or data
driven business opportunities
SUB
CONTRACTORS
LOCAL O&Ms LOCAL VENDORS
VALUE CHAIN
PROVIDERS
LOCAL PEOPLE
WORKING AT THE SITE
OTHER OEMs
ABB INSTALLED
BASE
INDUSTRY
PEOPLE
COMMUNITY
ONE SITE END-TO-END
CUSTOMER’S PRODUCTION
SITES ’FLEET’ & LOGISTICS
MATERIALS
LOGISTICS
CUSTOMER’S
OTHER VENDORS
ABB
 Positioning
 Data models
 Sensors
 Robotics
 Communications
network
 Functional
SOFTWARE
COMPANIES
STARTUP
COMMUNITY

Culture transformation – Big Time!
Ecosystems development on offering level
Value add product
features
Value add services
Product as a service
Product/System
play
Products,
Services, People
Solutions play
Process/Function
outsourcing/partnering
Ecosystem
play
People networks
Asset networks & sharing
Company networks
One-to-One business
models
(customer – vendor
relationship)
Network and
platforms
business
models
Today
Network and
platforms
business
models

Why Airbnb is a relevant benchmark as well to industry sectors?
Using Airbnb as an Ecosystem benchmark
Platform model and business
Value generation without tangible
assets (installed base)
Great digital offerings attract other
companies to join
Value of many vs. One
Digital creates offline business
opportunities
Great ecosystems grow as well on
their own

Ventilation can account for as much as 50%
of the total energy consumption of a mine
Large scale IoT – Ventilation on Demand
© ABB Group
November 19, 2018 | Slide 18
CASE: The electrical consumption
of the fans was reduced by 54%
corresponds to 1918 MWh per
year. The consumption of propane,
used for heating reduced by 21%
corresponds to roughly 1000
MWh per year
Installed in Boliden, Kankberg mine 2016
Ensuring a healthy working
environment underground
 Dilution of hazardous substances
 Climate control
Quicker evacuation of blast gases -
Shorter downtime
Minimize energy consumption -
Reduce cost
Better utilize existing infrastructure
- CAPEX and OPEX control
Smart ventilation “knows” the
location of each person and asset in a
mine; compiles information from gas,
flow, and temperature sensors; and
enables mine-wide control of fans
and air regulators to ensure the right
environments are maintained at the
right times and locations. The system
also learns and adapts, so air-flow is
continuously adjusted and optimized

Digital Transformation in Process Industries
Local
Automated
Connected &
optimized
Collaborative
& mobile
Autonomous &
economic
optimization
Partly
Automated
MINING
METALS
PULP &
PAPER
Transformation per Industry Taglines
ABB PROCESS INDUSTRIES DIGITALSlide 19
Mining performance from mine to market –
Autonomous Mining – Remove people from
underground & Dangerous areas
Optimized plant and production network operations
– End-to-End Value chain optimization – Real-time
Economic optimization
Optimized mill and production network – End-to-End
Value chain optimization - Autonomous Operation –
Real-time Economic Process Control
IoT
Ecosystems

Business Ecosystems Internet of Things at ABB

Business Ecosystems Internet of Things at ABB

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