Finding the ROI in Digital Transformation
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Navigant and OSIsoft partner to explore how to leverage a solid platform for positive outcomes. Discover how those in asset intensive spaces are making use of their real-time data to transform their businesses and gain back some major returns.
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Finding the ROI in Digital Transformation
- 1. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED1 FINDING THE ROI IN DIGITAL TRANSFORMATION HOW TO LEVERAGE A SOLID PLATFORM FOR POSITIVE OUTCOMES JANUARY 15, 2019 SPONSORED BY OSIsoft
- 2. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2 INDUSTRY INSIGHTS Power & Utilities Automotive TelecommunicationsBuilding Tech High Tech & IT Navigant Research provides in-depth analysis of clean, intelligent, mobile, and distributed energy. The team's research methodology combines supply-side industry analysis, end- user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of these industry sectors. • Emerging value chain analysis • Market sizing and forecasting • Strategic marketing services • Trend monitoring and analysis • Market demand for new products • Competitive intelligence
- 3. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED3 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED3 RESEARCH SOLUTIONS BUILDINGS • Energy Efficient Buildings • Intelligent Building Management Systems • Lighting Innovations • Smart Home GENERATION • Distributed Natural Gas • Distributed Renewables • Microgrids • Wind Energy INTELLIGENT GRID • Connected Grid • Digital Grid • Dynamic Grid ENERGY STORAGE • Advanced Battery Innovations • Distributed Energy Storage • Grid-Tied Energy Storage TRANSPORTATION INNOVATIONS • Commercial Transportation Electrification • Electric Vehicles • Mobility • Transport and Logistics Innovations DER SOLUTIONS • Demand-Side Management • DER Strategies • Utility Customer Solutions DIGITAL TRANSFORMATIONS • Internet of Things • Smart Cities • Utility Digital Transformation • Energy Blockchain
- 4. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED4 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED4 TODAY’S PANEL NEIL STROTHER Principal Research Analyst Navigant Research MIKE KANELLOS IoT Analyst, Senior Manager of Corporate Communications OSIsoft TIM ALEXANDER Brewery Operation Technology Manager Deschutes Brewery GAVIN STRACK Director Convergio
- 5. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED5 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED5 The Eight Prominent Goals for the Digital Transformation Journey: DIGITAL TRANSFORMATION A VARIETY OF GOALS Ensuring regulatory compliance Reducing downtime Enhancing product quality and consistency Increasing safety Aftermarket services and products Improving process efficiencies that drive net income gains on P&L statements Extending the lifetime and productivity of existing capital Reducing energy and other operating costs
- 6. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED6 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED6 IIOT STRONG DRIVERS FOR IIOT AND DIGITAL TRANSFORMATION OBSERVATION Combined annual revenue from devices, software, and service bundles projected to grow to $144.6 billion in 2027, a compound annual growth rate of 11.4% DRIVERS • More efficient energy use • Predictive, preventive maintenance • Competitive differentiation • Transforming businesses, customer experiences • Increased worker safety • Falling component costs • Falling data management costs Source: Navigant Research Industrial IoT Device Revenue by Region, World Markets: 2017-2027
- 7. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED7 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED7 OSIsoft THE PI SYSTEM: INSIGHT ON DEMAND The PI System captures, cleans, and contextualizes operational data so you can see the big picture Source: OSIsoft
- 8. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED8 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED8 DIGITAL TRANSFORMATION MULTIPLE LAYERS DRIVE FOR POSITIVE OUTCOMES IIoT Business Outcomes and Benefits Source: Navigant Research, OSIsoft
- 9. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED9 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED9 DIGITAL TRANSFORMATION MULTIPLE LAYERS DRIVE FOR POSITIVE OUTCOMES IIoT Business Outcomes and Benefits Source: Navigant Research, OSIsoft
- 10. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED10 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED10 DIGITAL TRANSFORMATION CALCULATING ROI Outcomes Investments Source: Navigant Research, OSIsoft
- 11. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED11 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED11 Up Front Over Time • Hardware • Software • Implementation • Strategy • Bandwidth • Cloud Services • Training • Employee Time • Coding and Developer Time • Support and Servicing DIGITAL TRANSFORMATION INVESTMENTS Source: Navigant Research, OSIsoft
- 12. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED12 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED12 Revenue Reduced APEX/CAPEX Added Benefits • Increased Output • More product, same footprint • Less downtime • New Products and Services • Faster Time to Market/Value • Energy • Maintenance • Avoided Capital Expenditures • Avoided Upgrades • Safety • Quality/Brand • Reduced Risk • Avoided Recalls/Fines • Customer Loyalty • Streamlined Supply Chains DIGITAL TRANSFORMATION OUTCOMES Source: Navigant Research, OSIsoft
- 13. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED13 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED13 ROI CASE STUDY DESCHUTES BREWERY • Located in Bend, Oregon • Founded in 1988 • Production facility in Bend built in 1993 • Portland pub added in 2008 • Shipped ~300,000 bbl. in 2018 • Long-term plan to open second production facility in Roanoke, Virginia Source: Deschutes Brewery
- 14. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED14 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED14 ROI CASE STUDY A FERMENTATION MYSTERY TIC TIC TIC • Yeast heating up on the bottom of the FV as fermentation ceases • Not seeing the entire picture Source: Deschutes Brewery What is the problem?
- 15. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED15 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED15 ROI CASE STUDY THE SOLUTION: GLYCOL, DATA AND LESS TIME Source: Deschutes Brewery
- 16. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED16 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED16 • Beer becoming over- fermented in particular circumstances, impacting quality, consistency, and flavor • Pending $8 million plant expand • $50,000 invested in the PI System, digital modeling and services • PI System detects hot spots in vessels • PI System diagnostics also show how to reduce processing time by 24 hours • Payback achieved in 3 months • Annual increase in production: $450,000 • $8 million upgrade postponed • New data-driven culture ROI CASE STUDY BETTER BEER THROUGH DATA OutcomeChallenges Input
- 17. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED17 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED17 ROI CASE STUDY WHAT’S NEXT WITH PI? • Predictive modeling for primary fermentation, free rise, and diacetyl rest • Reducing the number of manual checks QA does on each fermenter • PI System models help remove supplemental chiller ($40,000 benefit), streamlining racking • OEE for Deschutes’ brewhouse, cellar, and racking line Source: Deschutes Brewery
- 18. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED18 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED18 ROI CASE STUDY TURN INFORMATION INTO GOLD 1 8 • Gold recovery rates 74.6% (Q3 15) at Hera • 1% = A$1 million annually in lost revenue • Excel hell • A$1 million invested • Process optimization • Real-time dashboards across organization • Auto fault notifications • Data Unification via Asset Framework (Digital Twin) • Recovery boosted to 88.6% • Reduced energy, inputs, wear rates, operator fatigue • Output above nameplate • AISC: A$1,100 to A$821 • ROI in 12 Days • Data for investor relations OutcomeChallenges Input
- 19. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED19 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED19 ROI CASE STUDY A 21ST CENTURY PIPELINE 1 9 • An extensive infrastructure • 1,400 compressors, 57,000 miles of pipeline, 61 plants • But little visibility • Need to lower costs, improve output to remain competitive • $20-$25 Million invested in operations center (services, software, hardware) • Digital twins to help plant managers incrementally boost production • Predictive maintenance • 30 plants wired year one • $20-$25 million saved in year one: ROI <12 months • Incremental $20-$25 Million expected 2018 • Avoided capital upgrades • Better regulatory compliance • Foundation for analytics OutcomeChallenges Input
- 20. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED20 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED20 • Losing 32% of water through pipe leaks • May need $15-$20 million capital plant upgrade • 6 hours daily spent in data management • Small staff, low budget, extensive service territory • $1.3 million invested in meters, services, software • Digital leak detection • Maintenance prioritization • Better coordination with field teams • $1.3 million in lost water recovered in 2 years • Additional $350,000 in leaks found in year three • Data prep reduced to 10 minutes/day • Postponed upgrade to 2028 • Avoided $600,000 bond interest rates • Next: Predictive maintenance ROI CASE STUDY MAKE IT RAIN OutcomeChallenges Input
- 21. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED21 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED21 OutcomeChallenges Input • AGL, an Australian utility expands capacity from 300 MW to 10 GW in 9 years • Solar, wind a growing part of traditional fossil fleet. • But AGL is also “data blind,” its executives say • A$1.2 million invested in software for Operations Diagnostic Center (ODC) • Employees encouraged to develop PI Vision consoles to track assets • Predictive maintenance platform with Predict-IT and PI System • A$21 million savings in 3 years • A$50-A$70 million hydrogen stator failure avoided • PI System ROI <9 months • Engineers, non-engineers using data • Next: Optimization for wind, thermal assets ROI CASE STUDY DATA BECOMES POWER
- 22. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED22 RECENT NAVIGANT RESEARCH REPORTS • IoT for Small and Medium Buildings • IoT and Analytics for Utilities Market Overview • Managing IoT Cybersecurity Threats in the Energy Cloud Ecosystem • Emerging IoT Business Models
- 23. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED23 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED23 PANEL CONTACT INFORMATION NEIL STROTHER Principal Research Analyst, Navigant Research neil.strother@navigant.com MIKE KANELLOS IoT Analyst, Senior Manager of Corporate Communications, OSIsoft mkanellos@osisoft.com TIM ALEXANDER Brewery Operations Technology Manager, Deschutes talexander@deschutesbrewery.com GAVIN STRACK Director, Convergio gavin.strack@convergio.com
- 24. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED24 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED24 FREE WHITE PAPER Navigant Research and OSISoft have collaborated on a free white paper that complements today’s webinar. Each of you will receive a link to it in your webinar follow-up email.
- 25. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED25 / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED25 UPCOMING WEBINARS Creating the Optimal Experience through Lighting Leveraging Lighting Controls for Efficiency, Convenience, and Cost Savings February 12, 2019 – 2:00 p.m. EST Navigant Research senior analyst Krystal Maxwell will talk with panelists from Audacy Wireless Lighting Controls (a division of IDEAL INDUSTRIES, INC.) about lighting control factors for campus building projects and the control types that are expected to be prevalent in higher education institutions. They’ll offer insights into how lighting controls can provide an optimal experience for all stakeholders, including decision makers, facility managers, and end users.
- 26. / ©2019 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED26 CONTACT US MAIN OFFICE 1375 Walnut Street, Suite 100 Boulder, CO 80302 +1.303.997.7609 WORLDWIDE OFFICES United States: Boulder, Colorado Chicago, Illinois San Francisco, California Washington, DC Europe: Copenhagen, Denmark London, United Kingdom Asia Pacific: Seoul, South Korea GENERAL INFORMATION research-info@navigant.com SALES INQUIRIES research-sales@navigant.com MEDIA INQUIRIES research-press@navigant.com
Editor's Notes
- Hello and thank you for joining us today for Navigant Research’s webinar Finding the ROI in Digital Transformation. My name is Matthew Spady. I’m a Managing Consultant at Navigant Research and will be your host. Joining us today are Navigant Research Principal Analyst Neil Strother, Mike Kanellos, IoT Analyst and Senior Manager of Corporate Communication at OSIsoft, Gavin Strack, Director at Convergio, and Tim Alexander, Brewery Operations Technology Manager Deschutes Brewery. We invite you to submit your questions throughout today’s presentation. When possible we’ll work them into the conversation and we’ll also have a brief Q&A for additional questions at the end. You can submit your questions via the question field . . . located at the bottom of the GoToWebinar control panel on your screen. Today’s webinar will be available for replay on the Navigant Research website beginning tomorrow. Please visit our webinar page where you can find archives of previous webinars.
- First . . . Before we begin our presentation, let me share a brief introduction about Navigant Research. As the research arm of Navigant, we provide in-depth analysis of clean, intelligent, mobile, and distributed energy. Our research reports, advisory services, and custom research provide deep examination of technology trends across five industry sectors: Power & Utilities, Building Tech, Automotive, Telecommunications, and High Tech & IT.
- Here is some additional detail on specific coverage within those focus areas. You can find additional information about Navigant Research at Navigantresearch.com. And you’ll find full contact information for the company on the final slide of this presentation.
- And now, let me introduce Neil Strother, who will then introduce the panel. Neil, would you say a few words about yourself to the audience?
- Make Money Save Money Or Stay out of Jai
- Most of the money on hardware
- Like the beginning, this section will be a bunch of customer stories so people can select the best one for a particular engagement. "Data prep and labor saving was good enough to get the business case across the line. " "Visualization makes it easy to show the boss what you have accomplished" "This is real information. This is what your plant is doing Gavin Strack, Convergio
- Like the beginning, this section will be a bunch of customer stories so people can select the best one for a particular engagement. "Data prep and labor saving was good enough to get the business case across the line. " "Visualization makes it easy to show the boss what you have accomplished" "This is real information. This is what your plant is doing Gavin Strack, Convergio
- Most of the money on hardware
- Most of the money on hardware
- We’re coming up on the hour, so let’s look at a few more of the questions that have come in from our audience . . . (LAST THREE MINUTES)
- We DID have some questions we didn’t get to address, so I’ll send them along to our panelists for response as appropriate. I would like to thank Neil, Mike, Gavin, and Tim for their participation today in this very informative conversation.
- Navigant Research and OSIsoft have collaborated on a white paper that complements today’s webinar. You’ll receive a link to the white paper in your follow-up email to this webinar.
- We HOPE you’ll join us for our upcoming webinars. On February 12, senior research analyst Krystal Maxwell and Audacy will discuss the optimal lighting experience. For information about all future webinars and to register, please visit navigantresearch.com and scroll to the bottom of the page where you can click WEBINARS. Today’s presentation will be archived on our webinar page beginning tomorrow.
- This concludes our webinar for today. Thanks again for joining us. Good bye until next time.