Wartsila - The Efficient Ship - Roger Holm, EVP
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At Wärtsilä we believe that digitalisation can bring many opportunities, but one needs to have a holistic, systematic approach that is not only dependent on technology, but also effective collaboration and a comprehensive global regulatory framework. This is the smart marine eco system that the efficient ship lives in.
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Wartsila - The Efficient Ship - Roger Holm, EVP
- 1. © Wärtsilä The Efficient Ship Roger Holm President, Marine Solutions Executive Vice President, Wärtsilä Corporation SHIPPINGInsight 2017, Stamford 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING1
- 2. © Wärtsilä WHAT LIES IN THE FUTURE OF THE MARINE INDUSTRY? Unprecedented convergence of rapidly evolving technologies will enable new business models and disrupt existing ones
- 3. © Wärtsilä RESHAPING THE INDUSTRY Why should any of us abandon a successful, well understood business model? SALES TIME PRODUCT AS-A-SERVICE TODAY
- 4. © Wärtsilä DISRUPT OR BE DISRUPTED Maturity of existing technology Big data analytics improved capability Low cost of sensors and connectivity Advanced automation SALES TIME PRODUCT AS-A-SERVICE TODAY
- 5. © Wärtsilä FOUR FORCES HAVE ALREADY STARTED RESHAPING THE MARITIME SECTOR Big data analytics Intelligent vessels Smart ports Shared capacity
- 6. © Wärtsilä THIS IS SMART MARINE New forms of collaboration must be explored to maintain the fast pace of transformation: the smart marine ecosystem
- 7. © Wärtsilä 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING11 DIMENSIONS OF DIGITALISATION CHANGE IN HUMAN BEHAVIOUR AND CULTURE OPENNESS TO NEW BUSINESS MODELS SECURING A POSITIVE CUSTOMER EXPERIENCE Faster voyage means more voyages per year Fitting in more cargo or passengers Improved reliability of equipment and predictability
- 8. © Wärtsilä 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING12 OPTIMISATION OF BUSINESS AND OPERATIONS Holistic approach: look at the vessel or fleet as a whole In the long run: vessel-as-a-service New level of performance over the lifecycle of the vessel Equipment performance optimisation Predictive maintenance Energy management Remote condition monitoring and maintenance Remote operations and control Virtual maintenance manager
- 9. © Wärtsilä 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING13 AGREEMENT OPTIMISES THE LIFECYCLE EFFICIENCY OF CARNIVAL’S FLEET A 1% IMPROVEMENT OF AN ANNUAL BILLION- DOLLAR FUEL BILL REPRESENTS A MASSIVE TEN MILLION DOLLARS IN SAVINGS.
- 10. © Wärtsilä 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING14 SUCCESSFUL REMOTE CONTROL SHIP OPERATIONS GULFMARK OFFSHORE SUPPORT VESSEL IN NORTH SEA SUCCESSFULLY REMOTE CONTROL OPERATED FROM SAN DIEGO IN AUGUST 2017
- 11. © Wärtsilä 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING15 CONNECTING THE DOTS IN THE SMART MARINE ECOSYSTEM
- 12. © Wärtsilä 11 October 2017 A SUSTAINABLE MODEL FOR FUTURE SHIPPING16 THANK YOU! JOIN US ON A MARINE JOURNEY TO THE FUTURE. Roger Holm roger.holm@wartsila.com
Editor's Notes
- Good afternoon. At Wärtsilä we believe that digitalisation can bring many opportunities, but one needs to have a holistic, systematic approach that is not only dependent on technology, but also effective collaboration and a comprehensive global regulatory framework. This is the smart marine eco system that the efficient ship lives in. First, let’s have a look at the future.
- These 4 forces point to why the efficient ship and/or an intelligent vessel need a smart marine ecosystem
- Examples of new level of usecases Equipment performance optimization Condition-based predictive maintenance Weather modeling based on actual micro weather conditions measured at the vessel Fleet management centralized optimization Blockchain: components traceability and Smart Contracts
- Examples of use cases Slot reservation platform with vessel departure and arrival prediction Port call service platform for identification, booking and payment of port services Automated mooring Induction charging Remote tug operations
- Examples of use cases: Vessel chartering centralized marketplace Maintenance and docking centralized marketplace Excess capacity centralized marketplace Cargo location and condition tracking
- Vessel Smart navigation capabilities, increased levels of automation, insight driven value added services, modularity and connected systems: these technologies and more will make vessels smarter and enable new level of safety, efficiency and reliability Examples of usecases Route planning and correction based on equipment, navigation and weather data, micro navigation with collision prevention Holistic energy and emission management Draught management and dynamic trimming Remote and automated operations Ultimately... autonomous vessel
- I could state here when I present that you can ask if China is a developing country as an example. In e-business and shipping, they are for sure not.
- Digitalisation is enabled by technology, but technology alone is not enough to transform the business. We need to change our behaviour and culture, be open for new business models, and secure a positive customer experience. Digitalisation is changing how companies create value for their customers. It can also bring new horizontal added value when different industries cross or more comprehensive value-chains are created. User experience is central, as user expectations keep growing. This will lead to a demand for seamless and effortless solutions, with a focus on usability, human-machine interactions, and visualisations. Ultimately, digitalisation is about change in human behaviour. It’s a cultural change that has a positive effect on our lives on many levels, from our daily interactions with each other to where and how human beings can add unique value. In shipping, companies can use transparent real-time data to improve their performance and revenue. We at Wärtsilä want to help our customers grow their business through value-adding digital services and solutions created together with them. Potential solutions for increasing revenue via digitalisation in the future can be about: Enabling a faster voyage and thereby more voyages in a year Making it possible to fit in more cargo (or passengers) and thus generate more money Increasing the predictability of both behaviour and operations through understanding of big data
- The new standards set by digitalization require the operator to look at the vessel – or fleet – as a whole. Looking at the big picture allows us to optimise each of its parts. In the long term, Vessel-as-a-Service becomes the ultimate means of providing asset & lifecycle management services. Optimising the lifecycle efficiency of a ship is a holistic process to reach a new level of performance over the lifecycle of the vessel. It comprises, for example: equipment performance optimization predictive maintenance energy management remote condition monitoring and maintenance remote operations and control.
- As said, companies are constantly searching for ideas and trying to find their own route. One example of a new kind of partnership that we are particularly proud of is our recent agreement with Carnival Corporation, the worlds largest cruise company. In January 2017, we signed a comprehensive 12-year agreement for cruise ship safety and reliability. The new performance-based cooperation model was planned together with Carnival and provides shared financial incentives and exposure based on outcomes for both companies. This means we share the risk as well as the profit. This extensive agreement is truly unique – we are talking about scope of 79 vessels. Conclusions based on condition monitoring of the operations will shape the actions needed to ensure safe and reliable operations, maintenance needs and performance improvements. Carnival is able to focus on their core business – providing great holiday experiences to their customers. This is the first such an extensive agreement but I believe this may set a new standard for the whole shipping industry. We have already experienced a wide interest in the concept.
- This example caught the attention of the founder of Futurenautics, a marine future observer. She said, “This is another step forward by an innovative company investing in building the smart marine ecosystem which will power the intelligent transportation systems of the future. Prioritising interoperability and simplicity and putting the customer at the centre is now absolutely critical.”
- Digital connectivity will link ships to ports, terminals, cargo suppliers and receivers. It will also connect the factories, containers, customers and warehouses, enabling them all to communicate with each other digitally. In other words, the entire supply chain from the raw material to the end user will be connected in one seamless digital communication loop. Here is a visualisation of how a ferry might communicate with various objects onshore in the future.
- There are many cases of companies successfully testing new things, investing in modern standards, or even successfully failing fast if the approach does not fit their business. These companies have one thing in common: they believe they can do and perform better, creating value. They have set targets and believe they can provide better service for their end customers. We at Wärtsilä want you to join us on this journey to a smart marine eco system that will benefit our customers and environment, as well as secure our future.