Data Driving Smarter Industrial Systems
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As manufacturing systems and products become smarter, big data is getting even bigger. How should manufacturers think about the explosion of information being generated from the shop floor, the supply chain - and even the products themselves?
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Data Driving Smarter Industrial Systems
- 1. Data Driving Smarter Industrial Systems SINGULARITY UNIVERSITY – EXPONENTIAL MANUFACTURING Cack Wilhelm Investor @ Scale Venture Partners M AY 2 0 1 6
- 2. 2 | CONFIDENTIAL AND PROPRIETARY Broad evolution of data volumes and types • Structured + semi-structured data • Internal company data • Increasingly up-to-the-minute data • External data sources • Real-time requirements • Connections required between or among data sources • Structured data • Internal company data • Processed in batches Web Logs Data Data Sources Location Data Geo-Spacing Click Stream Data xml BIG DATA WORLD 2008 – 2014 BIG DATA IN REAL-TIME Real-Time Messages Images Video Machine-to- Machine Wearables Time-Series Data OLD WORLD XLS DOC Transaction Log Time Sheet Data Historian 1974 – 2000 2014+ Data Historian
- 3. 3 | CONFIDENTIAL AND PROPRIETARY Big data evolution – the numbers … [ON] THE BOEING 787s ... LITERALLY EVERY PIECE OF THAT PLANE HAS AN INTERNET CONNECTION, FROM THE ENGINES TO THE FLAPS, TO THE LANDING GEAR [GENERATING] >1/2 TB FROM A SINGLE FLIGHT 34,118GB OF INTERNET TRAFFIC GLOBALLY PER SECOND (AND >7,000 TWEETS) IN 2016, 5.5MILLION NEW THINGS WILL GET CONNECTED [TO THE INTERNET] EVERY DAY. – Gartner SMART DEVICE ADOPTION HAS OCCURRED 10xPC REVOLUTION, 2X FASTER THAN ADOPTION OF 1990s INTERNET BOOM AND 3X FASTER THAN THAT OF THE 2000s SOCIAL-NETWORKS 9.8MILLION NEW CONNECTED PASSENGER CARS WERE PRODUCED IN 2013 (REPRESENTING 15% OF ALL NEW CARS)
- 4. 4 | CONFIDENTIAL AND PROPRIETARY4 | CONFIDENTIAL AND PROPRIETARY Data as an asset Note: Market Information as of 4-7-16. [DATA-AS-AN] ASSET-INTENSIVE MARKET CAPITALIZATION $50B ASSET-INTENSIVE MARKET CAPITALIZATION $9B MARKET CAPITALIZATION $46B
- 5. 5 | CONFIDENTIAL AND PROPRIETARY5 | CONFIDENTIAL AND PROPRIETARY The power of data platforms Note: Market Information as of 4-7-16. HARDWARE COMPANY MARKET CAPITALIZATION $24B PLATFORM COMPANY MARKET CAPITALIZATION $609B (Hardware) (Platform)
- 6. 6 | CONFIDENTIAL AND PROPRIETARY6 | CONFIDENTIAL AND PROPRIETARY Data capture increasing, accelerating SENSORS 0 5,000 10,000 15,000 20,000 25,000 2014 2015 2016 2020 INTERNET OF THINGS UNITS INSTALLED BASE BY CATEGORY Business: Vertical Specific Business: Cross Industry Consumer PEOPLE / USERS INTERNET USERS IN THE WORLD (BILLIONS) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 1993 2000 2007 2014 BILLIONS DATA VOLUMES THE DIGITAL UNIVERSE IS HUGE – AND GROWING EXPONENTIALLY 2013 2020 4.4 ZB 44 ZB
- 7. 7 | CONFIDENTIAL AND PROPRIETARY Drowning in data and starved for information CLOUD DATA SILOS AT SCALE IIOT CONNECTIVITY AUTOMATION UNPRECEDENTED COMPLEXITY Information ≠ Intelligence More technology ≠ More productive More data silos ≠ More insights Analytics ≠ Problem solving
- 8. 8 | CONFIDENTIAL AND PROPRIETARY Machine learning MACHINE LEARNING Scientific method on steroids Output of telling a computer to be creative (vs. asking for an answer) Ability to learn without being explicitly programmed Move from thinking deterministically to thinking probablistically
- 9. 9 | CONFIDENTIAL AND PROPRIETARY9 | CONFIDENTIAL AND PROPRIETARY Every company is a software company 1 Per 2015 10K, Google employs 23,336 individuals in R&D, the rest spread between Sales and Marketing, Operations, and General and Administrative 2 Website: http://wallstreetonparade.com/2014/04/jamie-dimon-jpmorgan-employs-30000-programmers/ FINANCIAL INSTITUTION # OF SOFTWARE DEVELOPERS ~30,000 TECHNOLOGY COMPANY # OF SOFTWARE DEVELOPERS 23,336*
- 10. 10 | CONFIDENTIAL AND PROPRIETARY10 | CONFIDENTIAL AND PROPRIETARY Every company is a software company ROB ALEXANDER, CIO Slide 9: Capital one slide -- just the quote, however you suggest designing Most people know Capital One as a credit card company. Few realize, however, that underpinning our credit card and banking services is a technology company. Our products are intangible: software and data. “ ”
- 11. 11 | CONFIDENTIAL AND PROPRIETARY11 | CONFIDENTIAL AND PROPRIETARY Every company is a software company BUT … CAN’T replace an airplane with software CAN build a better plane, faster, and less expensively Two modes where automation can help: Automate the process of producing goods Improve the performance features and desirability of the output product EASIER TO DISRUPT COMMERCE 1 HARDER TO DISRUPT MANUFACTURING 2
- 12. 12 | CONFIDENTIAL AND PROPRIETARY12 | CONFIDENTIAL AND PROPRIETARY Automating manufacturing CREATION DESIGN MODELING ANALYTICS APPLICATIONS REPORTING VISUALIZATION SOURCE MAKE DELIVER PHYSICAL DE- COMMISSION SERVICE RECYCLE DIGITAL VIRTUAL VALUE CHAIN UNIVERSAL DATA MODEL Rapid Prototyping Demand ForecastingInventory Optimization Costing Predictive Maintenance Pollution Control Energy Management Asset Reliability Materials Usage Overall Equipment Effectiveness Remote Monitoring
- 13. 13 | CONFIDENTIAL AND PROPRIETARY + Then and now Automation Gold Standard Occasional AutomationAUTOMATION Accelerating Product Introduction, Over-the-Air Software Updates Release and ForgetUPDATE FREQUENCY Mass Customization Batch Size of One Mass ProductionPRODUCTION Push Toward Digital and Virtual All Physical WorldLOCATION EXAMPLETHEN NOW
- 14. 14 | CONFIDENTIAL AND PROPRIETARY Early Stages EXAMPLE Then and now Security Imperative with Rise of Connectivity Un-Connected AssetsCONNECTIVITY THEN NOW Design, Test and R&D: One Continuous Process Teams in SilosSTRUCTURE Imperative to Reduce Cost to Serve Margin CushionPROFITABILITY Cyber-Physical Systems Predominantly ManualLABOR
- 15. 15 | CONFIDENTIAL AND PROPRIETARY15 | CONFIDENTIAL AND PROPRIETARY A look ahead 3-D PRINTING 3-D PRINTING PERVASIVE DRONES AND AUGMENTED REALITY BECOME MAINSTREAM COMPUTING PLATFORMS NEW PLATFORMSCOMPUTE → EDGE CLOUD Smart airplane Connected car Connected truck Wind turbine Mobile phone Phone Wind turbine
- 16. 16 | CONFIDENTIAL AND PROPRIETARY Big data adage More data Better algorithms>
- 17. 17 | CONFIDENTIAL AND PROPRIETARY Conclusion Pace of innovation Staggering= Pace of adoption ??? (Up to all of you)=
- 18. Question? Comments? @cackf cack@scalevp.com Cack Wilhelm Investor @ Scale Venture Partners