Festo_March_2016_V7

For internal SAP and partner use only
The Internet of Things for Business
Claudio Coradeschi, EMEA – Industry Value Engineering , SAP Italia
Andrea Martignoni , Enterprise Architect, SAP Italia
March 2016

©2016 SAP SE or an SAP affiliate company. All rights reserved. 2
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3
Industry 4.0 and SAP
SAP as a member
of Platform
Industrie 4.0
19 Projects with
SAP
Complete list
available on
Web site

©2016 SAP SE or an SAP affiliate company. All rights reserved. 4©2016 SAP SE or an SAP affiliate company. All rights reserved. 4
The fourth Industrial revolution based on cyberphysical systems
Smart Data
Enablers:
Ÿ Embedded software
Ÿ Ubiquitous computing
Ÿ Unlimited network
access
1. Mobile networked
computing
Ÿ Performant
Ÿ Secure
Ÿ Available
2. Cloud Platforms
Ÿ IoT optimized data
acquisition
Ÿ Event streaming
Ÿ Geo spatial
Ÿ Predictive
3. Big data capabilities

Value creation through deep process and data integration
R&D Sales Manufacturing
Aftermarket
Service
Supply Chain
Smart Data
Value Creation through:
Ÿ Adaptive logistics
Ÿ Resilient production
Ÿ Energy management
Ÿ Predictive
maintenance and
Service
2. Process Innovation
Ÿ Serving the “Segment
of One”.
Ÿ Performance and
usage based
contracting and billing.
3. Business Model Innovation
Ÿ I4.0 enabled products
and solutions.
Ÿ Extended product and
solution portfolio.
1. Product Innovation
Smart
Products
Track &
Trace
Connected
Logistics
Performance based
Contracting (BRIM)
Configure,
Price,
Quote
Connected
Manufacturing
Energy
Management
Predictive
Quality
New Business Scenarios
Remote Service
Management
Predictive
Maintenance
Augmented
Reality Apps

The Factory of Future – 5 scenarios
5 Scenarios:
1. Shop floor to Top floor
Intra company vertical integration
1
2. Machine to Machine
Autonomous machines
2
3. eCommerce Integration
Direct integration of online
configurators
3
4. Manufacturing Collaboration
- Visibility
- Genealogy
- Quality
- Kanban / Direct replenishment
4
5. Machine Cloud
- Predictive maintenance
- Predictive quality
5
5

1) Shop Floor to Top Floor: Connected Manufacturing
Company
Solution
Benefits
Harley-Davidson is a legendary
motorcycle manufacturer.
Situation: Need to optimize manufacturing processes in a
completely rebuilt factory, making one factory out of five.
• SAP ERP
• SAP Advanced Planner Optimizer
• SAP Manufacturing Integration
and Intelligence (MII)
• SAP Manufacturing Execution (ME)
• Integration of shop floor equipment like cranes
• Costs: -7%
• Delivery time down from 21 days to 6 hours
• Agility and predictiveness
• Improved quality
©2016 SAP SE or an SAP affiliate company. All rights reserved.
Process Innovation
• Each bike is customized individually
• IoT-powered manufacturing planning and execution

2) Machine to Machine: IoT-optimized Engine Testing
Company
Solution
Benefits
In line with its motto “Driving
performance”, Mercedes-AMG
develops high performance cars.
Situation: Engine testing is a costly and data-intensive
process. While most engine failures occur within minutes,
failed tests could not be identified until after completion,
resulting in hours of lost time and resources.
• IoT-enabled test bench
• SAP HANA to manage sensor data
• SAP ERP on HANA for Quality Management
• Real-Time Quality Assurance solution (RQA)
• SAP Business Objects products for analysis
• Mobile app for engineers
• >76% improved processes
• 94% faster runtimes
• 1 day equivalent increase in weekly testing capacity
Process/Technology Innovation
• One integrated real-time platform for engine testing,
development and QA
• Flexible and consistent documentation of
polytechnical engine data in real-time:
from test-benches over test tracks to long-run tests
• New analytics techniques for
semi-automation of the
testing process

3) eCommerce Integration: Fully automated valve
assembly + Model Factory
Benefits
• Shorter production times
• Quicker reaction to customer orders
• Energy consumption reduction
Company
Festo AG & Co. KG is a business
group of control and automation
technology among the world's
leading automation companies
Situation: The challenge was fully automated high number
of variants of the valve series to be mounted on a line.
Process Innovation
• The automation concept combines the ERP system
with the PLC level.
• An intelligent recipe management determines the
assembly steps and specifications for product.
• Configuration of some parameters made directly by
customer can be transmitted to the shop flow control
to react immediately to customer’s requirements.
Solution
• SAP ERP
• SAP Manufacturing
Execution (SAP ME)
• Online Shop

4) Manufacturing Collaboration: Adaptive Logistics
Company
Solution
Process/Technology Innovation
Benefits
Still is a leading supplier of forklift
trucks, platform trucks and tractors plus
the latest intra-logistics systems.
Situation: Still is evolving from a pure product to a
services company.
• Still cubeXX concept forklift
truck
• SAP HANA Cloud Platform
• SAP Extended Warehouse
Management (EWM)
• Mobile app for warehouse
worker
• Efficient, fast and save logistics processes
• Reduced time effort for material handling
• Also applicable for fleet management optimization
• The on-board IoT connector connects the forklift
truck with cyber physical systems and cloud apps.
• The warehouse worker uses a smart device to
manage tasks between people and machines.
• A 3D picture of the environment is used for
orientation and the truck positioning.
• The truck directly receives warehouse tasks from
SAP EWM.

5) Machine Cloud: SAP Predictive Maintenance and Service
Company
Solution
Process Innovation
Benefits
GEA, the leading manufacturer of separators
and decanters for industrial usage.
Situation: lacking service contract compliance
• SAP HANA Cloud Platform
• SAP Predictive Maintenance & Service – Cloud Edition
• ifm adaptor
• SAP IoT connector
• SAP CRM Service
• Service execution based on real-time machine data
• Increased machine uptime
• Improved service contract compliance
• Higher service productivity
Spare Parts &
Tools
Remote
Service
Engineer
Real-time
Monitoring

SAP HANA Cloud Platform
The Industry 4.0 enabled in-memory platform-as-a-service
Machine Cloud (SAP)
HANA Cloud
IoT Services
End Customer
(On site)
Business owner
(SAP Customer)
HANA Cloud
Integration
Business Suite
Systems
(ERP, CRM , etc.)
SAP
ConnectorDevice
HANA Big Data Platform
Data Processing
Extended Storage
Hadoop
In-Memory
Engines
Streaming
Storage
∞
HANA Cloud Platform
Machine
Integration
Process
Integration
IoT Applications
(SAP, Partner and
Custom apps)
Sense Predict Act

Deep Dive: SAP HANA Cloud Platform IoT Services
HANA Cloud Platform (HCP)
IoT Core Services
Infrastructure Services
Other Services
IoT Models IoT Data
IoT Tools & Dashboards
Workbench SAP Partner Customer
Device
Management
IoT Config
Edge
SDK
IoT Model &
Data
Management
IoT App
Enablement
App Data
Messaging
Applications
ISV
Geo-SpatialServices
Complex Event Processing
Integration Services
…
Edge
SAP IoT
Connector
(3rd Party)
Gateway
Device
Device
Device
Operator
Console

Deep Dive: SAP HANA Big Data Platform
HANA Cloud Platform (HCP)Edge
SAP IoT
Connector
(3rd Party)
Gateway
Device
Device
Device
Infrastructure Services
IoT Services
Messaging
HANA Data Processing
Application(s)
HANA Dynamic Tiering
InMemory
Column / Row Store
Hadoop Cluster
Extended
Storage
HDFS Filesystem
Execution Engines Execution Engine
HANA Execution
Engine
HANA Streaming
Information
Management
Graph Geospatial PredictiveText / Search
Data Aging (hot / warm / cold)
Data Load (Aggregate / Cache)

“Manufacturing Suite“ from SAP
SAP PCO Equipment Connectivity
n Equipment Signal/Status
n Data Collection
Level 2:
Automation
SAP PCO
SAP IoT conn.
SAP S/4HANA
Level 4: ERP Production Planning
n Master data Management
n Production planning
n Production scheduling
n Customer and production order Management
R&D Sales Manufacturing
Aftermarket
Service
Supply Chain
Level 1:
Machine
SAP ME Manufacturing Execution
n Serialized/Non-Serialized Prod.
n Production Tracking
n Traceability
n Productions control
n Testing
n 0 defect Production
SAP MII Integration & Analysis
n Integration Platform
n Visualization
n Web-Frontend
n ERP Integration
Level 3:
Manufacturing
Execution
SAP ME
SAP MII

SAP Value Funnel
High Value Know
By transforming sensor data into valuable
insight, SAP helps you to preempt risk
and know where new business
opportunities and revenue streams are
and seize them
Evolve
Because of SAP’s market leadership in business
processes, evolving them to leverage insight into
action allows companies to drive business excellence
both at the core and at the edge
Create
The ultimate value of IoT can be realized by allowing companies
to combine historical data with current data and act in the
moment with data driven decisions and innovate new business
models
and revenue streams across your entire business ecosystem
Transactional Sensor
Data
Ultimate Value
fromThings
to Outcomes
Things to Insight
Insight to Action
Action to Outcome

fromThings
to Outcomes
Internet of Things
In-house Industrial Operations External scenario
SCADA / HMI
Machine Layer
MES/Historian
ERP
1
Industry 4.0
» Consumers
» All industries
» All things and devices
» Ubiquitous
» Personalized
» Industrial Operations
» OT- IT Convergence
» Systems, things and
devices across the
enterprise
SMART THINGS
SMART DEVICES
SMART industrial THINGS
SMART industrial DEVICES
• Industry 4.0 is a subset of IoT
• I4.0 focus on Manufacturing companies and their assets
as well as producing products coming from their value
chain
• IoT focuson smart devices and sensing products
from a consumer perspective
“Internet of Things” ß Smart Devices, Personal Area NetworksIndustrial Automation à “Industrial Internet” / Industry 4.0
Convergence of Industry 4.0 and the Internet of Things

Festo_March_2016_V7

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