Bit by Bit, Manufacturing Goes Digital

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BitbyBit,ManufacturingGoesDigital

KyleLandry

ResearchAssociate

TheFutureofManufacturing

June2nd,2016

Everyindustrycan(andshould!)becomeaninformationindustry

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ConnectedOperations

ConnectedProducts

NewBusinessModels

Agenda

  TheIndustrialInternetneedsatoolbox  Betterharderfasterstronger:ConnectedOperations  Puttingyourmoneywhereyourdataplanis:ConnectedProducts

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Connectivityhasatransformationalimpactonhowwemakethingsandhowwemonetizethem

  BuzzwordAlert!Industrie4.0  TheIndustrialInternet

  TheIndustrialInternetofThings

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Sensing Connectivity Analytics

Agenda

  TheIndustrialInternetneedsatoolbox  Betterharderfasterstronger:ConnectedOperations  Puttingyourmoneywhereyourdataplanis:ConnectedProducts

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Improvementsacrossthevaluechain

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Bringingtheplantfloortothecloud

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Drasticallyuppingtheuptime

  Inarecentsurveyofover120operationalleaders,Luxfoundthatnearlyallorganizationshadpositiveoutcomesfromdeployingpredictivemaintenance

8Source:PredictiveMaintenance:TheArtofUptime–LuxResearch

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IncreasedUptimeReducedcostofmaintainingequipmentReducedbreakdownfrequencyIncreasedproductionquantityImprovedproductionqualityImprovedsafetyIncreasedequipmentlifetime

FractionofRespondents

(%)

10xROI

75%EliminationofBreakdowns

25%IncreaseinProduction

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Manufacturing Energy HeavyIndustry

Fractionoforganizationsimplementingmaintenance

(%)

Reactive Preventative Predictive

Drasticallyuppingtheuptime

9Source:PredictiveMaintenance:TheArtofUptime–LuxResearch

Enhancingthesupplychain

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Enhancingthesupplychain

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Agenda

  TheIndustrialInternetneedsatoolbox  Betterharderfasterstronger:ConnectedOperations  Puttingyourmoneywhereyourdataplanis:ConnectedProducts

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Wejustappliedthisapproachtooperations

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Let’sapplythissameapproachtoproducts

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Whatdoesthislooklikeformanufacturers?

  Enhancecustomerengagementandbusinessintelligence

  Explorenewbusinessmodels

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Thisisalreadyhappeningatindustrialmanufacturers

  HistoricallyheavyusersofSAPforoperationsandcustomers

  Developedconnectedgascompressors,whichstreamtoSAPIoTcloud  Experimentingwithservice/pay-per-usebusinessmodels

  Couldsellusagedatatogaschemicalsprovidersorutilities

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Thisappliesoutsideofdiscretemanufacturing

  Connectedkegslightupatbarswithpromotions  Remotelymonitorconsumption  Real-timedemandforecastingandbusinessintelligence  Couldreselldatatoinsurancecompanies,regulators,ormunicipalities

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Recommendations

  Manufacturersneedtoconsiderhowsensing,connectivity,andanalyticsapplystrategicallytotheiroperationsANDproducts  Manufacturersneedtobuildservicesintotheirbusinessmodels  Manufacturersneedtoleveragetheirdata  ManufacturersneedtoDOTHISNOW!Ifthesedevelopmentsarenotalreadyastrategicinitiative,theyneedtobe!

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LuxResearchInc.100FranklinStreet,8thFloorBoston,MA02110USAPhone:+16175025300Fax:+16175025301www.luxresearchinc.com

Thankyou

KyleLandryResearchAssociatekyle.landry@luxresearchinc.com+1(857)284-5696

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