The document discusses the value of a connected factory using Cisco's Internet of Everything (IoE) technologies. It begins with an introduction to Cisco and trends in manufacturing, then outlines the economic benefits manufacturers have seen from digitization including reduced downtime, defects, energy usage, and inventory as well as increased output and speed of new product introductions. The document advocates connecting the entire supply chain from design to production to distribution. It presents Cisco's IoE solutions as a way for manufacturers to gain competitive advantages and better business outcomes through applications like factory automation networks, analytics, wireless connectivity, and supply chain collaboration.

1. Accelerate Growth and Improve Operations
to Boost Visibility and Agility
The Value of a
Conneted factory
Hazid Mangroe
Cisco IOE SalesLead
11 November 2015

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Waar gaan we het over hebben
Introductie Cisco
Trends
De waarde van IOE
Ecosystem van partners
Next Steps

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Two Cables
and a Desire
to Connect

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Intelligent
Connections
at the Heart
of Cisco
Intelligent Connections
Internet of
Everything
Digitize the World
Connecting:
• People
• Process
• Data
• Things
Connectivity
Digitize Access to Information
• Email
• Web Browser
• Search
Immersive
Experiences
Digitize Interactions
(Business & Social)
• Social
• Mobility
• Cloud
• Video
Networked
Economy
Digitize Business Process
• E-­commerce
• Digital Supply Chain
• Collaboration

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Shifting Manufacturing Trends Are
Transforming the Industry
Gain Share with LoB in FY16!
(Momentum: Bookings Growth = 2x TAM)
FY16-­18 TAM: Products $64.5B, CAGR +5.2%
Services $64.6B, CAGR +5.4%
New IoT $6.2B, CAGR +16%
Digital Disruption Across the Value Chain
Bottom Line: Manufacturers Seek Speed and Simplicity, with New Innovations
The
image
part
with
The
image
part
with
relatio
The
image
The
image
Th
e
im
The
image
Supply Chain Demand Chain
Right-­Shoring
Capacity Rationalizations
Velocity, Variation, Volume …
Faster Inventory Turns
New Product and Service
Innovations, Digital
Business Models
Flexibility with Agility for Mass
Customization

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Markets Are Driving New Business Priorities
How can
I better
manage my
global
supply
chain?
How can I
reduce
downtime?
I need to
improve
product
quality
How do I
improve
workforce
productivity?
How can
innovation
drive
profits?
I need
to achieve
real-­time
visibility
How can I
introduce
new products
faster?

8. 8C97-­735861-­00 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
It’s a New Way of Thinking about Manufacturing
IDC FutureScape: Worldwide Manufacturing
2015 Predictions:
“Our next phase of investment in the factory of the future includes a
more transparent manufacturing model. … not only to advance our cost
competitiveness, but to drive a different conversation with our
customers and suppliers.”
-­ Rob Goldiez, Scott Fetzer, a Berkshire Hathaway company
"If you went to bed last night as an industrial company, you're going to
wake up today as a software and analytics company.”
-­ Jeff Immelt, CEO, GE
“…the lines between hardware, software, and services are blurred or
are disappearing”
-­ Tim Cook, CEO, Apple

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Digital Disruptors Are Changing the Game
But up to 40 percent of manufacturers may be damaged by
digital disruptors
58 percent of CEOs see tech change as a top challenge
They can innovate fast, and raise the stakes
CPG manufacturers among those with maximum
potential for disruption
The winners will be those who can harness digital for today’s
new priorities
Digital Vortex: How Digital Disruption Is Redefining Industries,” Global Center for Digital Business
Transformation, June 2015
18th Annual PwC CEO Survey, 2015

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Unleashing Dramatic Business Outcomes
Lower
Downtime
Reduce
Defects
Reduce
Energy
Faster
NPI
Maximize
OEE
Lower
Inventory
• Automation
Network
• Analytics and
Big Data
• Wireless with
LBS
• Wireless • Connected
Machine
• Automation
Network
• Energywise
• Automation
Network
• Plant Floor
Virtualization
• Wireless
• Collaboration
“Reduced
labeling
error rate
by 16%”
“Achieving 20%
energy reduction
with real time
visibility.”
“Shaved
10-­20% off
NPI cycle
time”
“Increased OEE
mid 70s to high
80s”
“Reduced
breaker
component tire
loss by 20%.”
Multi-­National
Brewery
“Experienced $40
million downtime
reduction”
Make Money Save Money

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What If You Could Drive Better
Business Outcomes?
The Real Economic Value of Digital Manufacturing is Immense
Reduced
Downtime
48%
Unplanned
downtime down from
11% to 5.8%
Reduction in
Defects
49%
Defect rate
down from
4.9% to 2.5%
New Product
Introduction
23%
New product
introduction cycle
time reduced from
15 to 11 months
OEE
Improvement
16%
Average OEE
improved
from 74% to 86%
Improved
Inventory
35%
Inventory
turns increased
from 14 to 19
Reduction in
Energy Use
18%
Annual energy
cost down from
$8.4M to $6.9M
Source: SCM World/Cisco “Smart Manufacturing and the Internet of Things 2015” survey of 418 Manufacturing Business Line
Executives and Plant Managers across 17 vertical industries.

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But To Get There, You Need to Span the
Entire Supply Chain
Off-­Line
Connected
Factory
Connected
Enterprise
Supply Chain
Orchestration
+ 16% OEE
+ 23% NPI
-­ 48% Downtime
-­ 49% Defects
-­ 35% Inventory
• Factory Network
• Factory Security
• Factory Wireless
• Analytics and Big Data
• Virtualization and Compute
• Connected Machines
• Factory Collaboration
• Location Services
• Supply Chain
Collaboration (SXP)
• Design Collaboration

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One is the Loneliest Number
Sports &
Entertainment
Smart+Connected
Communities
Connected
Energy
Connected
Industries
Connected
Transportation
*
*
*
*
*

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From Use Case to Business Value
Potential Use Cases
(Long List)
ü In place today or already
underway
X Not interesting…at least at this time (too
complex;; value is not clear;; timing is not right;;
etc.)
ü Interesting…worthy
of further analysis
1
2
3
4
5
6
7
8
9
10
Prioritization
(based on business
value;; complexity to
implement;;
dependencies;; etc.)
1
2
4
6
Select 3-­4 Use Cases for
further study:
ü Architecture & Design
ü Business Value
Assessment
ü POCs (lab)
…and potentially…
ü Pilots / Wider Deployment