The document discusses the growing importance of IoT in manufacturing, highlighting key trends and statistics such as 82% of manufacturers planning digital transformation to enhance efficiency and profitability. It addresses the challenges within the manufacturing space, emphasizing the need for digitization and outlining various IoT use cases that can lead to significant cost reductions and operational improvements. Additionally, it introduces 'Simon,' an operational experience platform designed to enhance productivity by integrating sensor and location data.

1. IoT in Manufacturing
Trends, Use Cases, and Opportunities
for Better Efficiency
Santtu Pulli
Head of Product
Kontakt.io
Prateek Gera
VP Product & Solution
Kontakt.io
June 13th, 2019 4 p.m. UTC / 9 a.m. PDT

2. Agenda:
➔ If you haven't joined yet, you're already behind: key market insights and
trends for using IoT in manufacturing operations
➔ Current challenges of the manufacturing space and why digitization is the
only way to stay competitive
➔ How IoT addresses these challenges: IoT use cases that drive tangible
business outcomes based on the example of Simon, the operational
experience platform
➔ What is the business value of IoT? A summary of all benefits of digitized plant
operations

3. IoT is exploding. Here’s what
your competitors are doing:
82%
of manufacturers
already have or plan
to develop
a digital transformation
strategy1
63%
of manufacturers
believe that applying
IoT to products will
increase profitability
over the next
five years2 $267B
manufacturers
will invest in
IIoT by 20203
50%
Of IoT spending
will be driven by discrete
manufacturing,
transportation
and logistics,
and utilities4
Sources: 1 - The Road to Digital Transformation. A Progress Report for Manufacturers, Oracle for Industry Week 2018, 2 - The Internet of Things Has Finally Arrived,
The MPI Group 2016, 3 - Manufacturers use of IoT devices, BI Intelligence 2015, 4 - Winning In IoT, It’s All About The Business Processes, BCG 2017

4. 2019:
Manufacturing
Industry moving
to the Cloud
Outdated software
with neg. NPS and
manual processes
are the norm
Crossing the
chasm: Cost of
creating IoT data
approaching zero
030201
Why now?
“Agility is the new currency of business; if we’re too slow, we will be
bankrupt”. - say ⅔ of manufacturing CEOs1
Source: 1 - Global Manufacturing Outlook. Transforming for a digitally connected future, KPGM 2018

5. 5
Copyright 2018 – ARRIS Enterprises, LLC. All rights
reserved
Skills gap & labor costs: Another key driver
for IoT adoption
Source: 1 - 2019 industrial manufacturing industry outlook, Deloitte 2019, 2 - 2019 National Manufacturing Outlook and Insights Leading Edge Alliance 2019
up to
2.4M
unfilled jobs by 20281
59%
of manufacturers increase
spending for employee
wages in 20192
for
52%
of manufacturers
Labor/Talent will be the
biggest barrier growth in 20192

6. IoT helps eliminate waste and hence
inefficiencies
Source: Manufacturing - a sector study The performance of manufacturing companies within Benchmark Index, Business Link [2] 2015, K2, 3 - ITIC 2016,
>50%
of manufacturers
say that too much
time is spent
on managing
processes2
30%
of stock
is made up
of finished
product1
83%
of global manufacturers
place operational
complexity among their
top concerns2
~$100,000
costs a single hour of
downtime3

7. IoT’s potential economic impact in
manufacturing – $1.2 Trillion+
All data from: McKinsey IoT: Mapping the value beyond the hype.
5-12%
cost reduction
in operations
optimization
10-40%
10-40% cost savings
in maintenance
20-50%
savings in inventory
holding costs
Asset Tracking &
Utilization Real Time
Production Visibility
Quality Control
Condition Based
Maintenance
Predictive
Maintenance
IoT Enabled
Inventory
Management

8. Customer challenges
➔ How can I stay more competitive while
improving my margins?
➔ I have an ageing workforce and need to be
more efficient to stay in business.
➔ One of my sites pushes more orders out than
the other; I do not understand why?
➔ How can I digitally transform to stay ahead of
competition
➔ We are able to keep our
customer commitments
only 50% of times! This is
hurting margins and
customer satisfaction.
➔ If only I had live visibility
into job orders progress
& issues through the
factory floor.
➔ If I had reliable data on
time taken to complete
various processes/
activities, I would be able
to plan more effectively
for lean and busy times.
➔ I want to understand the productivity of different
departments.
➔ I am looking for ‘Continuous Improvement’
opportunities to improve cycle time, takt time
and warehouse throughput.
➔ Is there a smarter way to implement “Lean
Operations” and ‘Smart Personal Planning’ so that
data collection about people and processes is
continuous, reliable and automated?
OPERATIONS LEADERS
PRODUCTION LEADERS C-LEVEL

9. How does IoT change that?
Sources: 1 - The Road to Digital Transformation. A Progress Report for Manufacturers, Oracle for Industry Week 2018, 2 - The Internet Of Things: Mapping The
Value Beyond The Hype, McKinsey Global Institute 2015
“The greatest potential
for creating value will be
in operations
optimization—
making the various
processes within the
factory more efficient.”2

10. We are on a mission to help
industrial companies become
operationally more efficient.
Simon What?

11. Labor Time Analytics
Source: 1 - McKinsey IoT: Mapping the value beyond the hype.
10-25%
of
potential improvement
in labor efficiency
would arise
from the IoT1

12. Tools and Equipment
Management
Source: 1 - IoT and Smart Manufacturing, ITIF 2016
20-50%
of
an enterprise inventory
carrying costs
in manufacturing
will be saved by IoT1

13. Job Order and Material Flow
Tracking
20%
higher product count
from the same
production line1
40%
reduction in cycle time
with smart manufacturing
technologies2
85+%
increase in forecasting
accuracy with smart
manufacturing
technologies2
Source: 1 - IBM 2016, 2 - Itif 2018

14. Equipment Utilization and
Smarter Maintenance
40%
reduction of factory
equipment maintenance
costs by predictive
maintenance1
Source: 1 - Deloitte 2017, 2 - Itif 2018, 3 - Roland Berger 2016
30-50%
reduction of total
machine downtime2
machine parks reduced
by
30 pp
with Industry 4.03

15. Picking Routes Optimization
24%
decrease in travel
distances can be achieved
with route optimization1
Source: 1 - Enhancing Order-picking Efficiency through Data Mining and Assignment Approaches, Yi-Fei Chuang , Shui-Hui Chia, Jehn-yih Wong 2014
21%
reduction of picking times
with route optimization1

16. Attendance Time Registration
and Subcontractor Tracking
By 2022
smart asset tracking
solutions are expected to
overtake traditional,
spreadsheet-based
methods1
Source: 1 - Manufacturing 2017 Vision Study, Zebra 2017

17. The Operational Experience Software
for business users focusing on productivity
use-cases in operational environments.
Simon unifies sensor and location data and
delivers business outcomes end-to-end.
Simon engages and leverages
AI-driven recommendations.
Meet Simon

18. Ask a question!

19. Want to see Simon AI in action?
Schedule a demo!
Orkun GUNDUZ
Director, Business Development
o.gunduz@kontakt.io
www.getsimon.ai