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Page: 1Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Cloud as the enabler for new value chains
Dr. Christian Schlögel
CTO KUKA AG
Page: 2Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Agenda
Digitalization Enablers2 Dimensions
Transformation of Value ChainData Value Stream
What we can offer Where to start Questions
Cloud Architecture
Page: 3Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
15 Years ago
Today –manufacturing
A fundamental new rule for business is that the Internet changes everything.
Bill Gates, 1999
Digitalization has disrupted many areas. Manufacturing disruption is underway!
Source: based on IIC
• …but in 1999, we had the Internet of people only!
• The Internet of Things (IoT) is changing much more!
TodayWatching a movie
Listening to music
Reading the newsMaking music
The future of manufacturing
is orange
Contacting people
Page: 4Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
4 additional technological enablers will push the Industrie 4.0 (r)evolution:Cyber physical systems and the trend of ‘softwarization‘
Synergies and increasing integration of 3 central innovation fields within digital technologies
• Embedded systems – mobile devices
• Global networks (WWW, Mobile TelCo)
• High performance software systems
leading us to the world of Cyber Physical Systems
Page: 5Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Additional technological enablers will push the Industrie 4.0 (r)evolution: The Automation Pyramid vanishes… regarding Communication
Source: VDI/VDE Broschüre „Cyber‐Physical Systems: Chancen und Nutzen aus Sicht der Automation“
IEEE 802.1 Time Sensitive Networks
Page: 6Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Additional technological enablers will push the Industrie 4.0 (r)evolution:Fog Computing will work as an enabling technology for the shopfloor
Fog Computing will play a necessary bridge to connect the physical world to the internet
Device Management, Data Management, Data Analytics, Visualization, System Management, etc. see cloud scenarios
Device Management, Data Management, Data Analytics, Visualization, System Management, etc. see cloud scenarios
Gateway to the Cloud Layers (SIM, Outbound VPN, several protocols), Communication Infrastructure for the things (Switch, Access Point, Transparent listener to legacy field busses), Client for Smart Devices, Software installation and update in the things, Skills data base, Data collection from the things, Safe/Non safe control of several things, Navigation, Engineering, Simulation, Recognition, more tbd.
Cloud Protocols and Interfaces (Northbound), Sensor/Actuator Interfaces (Southbound), Data Collection, Filtering, Logging, Localization, Identification, Alarms, Software installation and update, Client for Smart Devices, Remote Services
Thing Interfaces, physical/chemical to digital converters, can also have elements of a thingSensor Act. Layer
Thing Layer
Fog/Edge Cloud Layer
Private Cloud Layer
Public Cloud Layer
Page: 7Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
4 additional technological enablers will push the Industrie 4.0 (r)evolution:Open standards are driving the next level of manufacturing systems
Co‐founded by KUKA
Combination initiatedby KUKA
802.1
Page: 8Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
2 High‐Level Use Cases in Focus
DigitalProduction
&Logistics
ConnectedSmart
Products&
Components
CPS (Cyber Physical Systems)+ Connected to the Internet+ Machine2Machine Connectivity
‐Wireless Communication‐ Sematical description
Embedded Systems+ Sensors & Actuators+ High Performance Mini Computers
Physical Systems
Cyber PhysicalProductionSystems
Cyber PhysicalSystems
High LevelUse Cases
High LevelSystemDifferentiation
Production & LogisticsProvider
Product & ComponentSupplier
How toincrease
flexibility & efficiency
How toincrease
customer value
Page: 9Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Different use cases but similar requirements
Digital Production & LogisticsConnected/Smart Products
& ComponentsCustomerValue
Usage of Data
Usage of CloudTechnologies
Optimizing ofValue Chain
Smart Production Equipment & Machines
Data Aggregation & Control by Fog
Data Collection in Cloud(s)
Monitoring
Extension
Optimization
Remote Management
Asset Management
MES / LES
New ServiceOfferings
Real‐timeInsights
Benchmarking Higher Flexibility
Smart Products & Components
Data Aggregation & Control by Fog
Data Collection in Cloud(s)
Monitoring
Extension
Optimization
Remote Management
Asset Management
Better offerings /pricing
New ServiceOfferings
Real‐timeInsights
New Business Models
Continous customervalue improvements
Page: 10Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Steps by using smart technologies
Monitoring
Control
Optimization
Automation
Monitoring of:‐ Product Status‐ Environment‐ Usage
Control via Cloud/Fog of:‐ Product Functions‐ Personalization‐ Safety
Optimization to:‐ Enhance product
outcome‐ Predict maintenance‐ Remote Service‐ Increase availability‐ Enhance customer
value
Combination of monitoring, control and optimizationenables‐ Automated product usage‐ Autonomous alignment across
other products and systems‐ Automated product extensions‐ Self diagnosis and service
Page: 11Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Evolution of Service Models
Transactions
Contracts
Customer Value
Diagnosis & RepairSelling of parts and time
Service Contracts andService Level AgreementsSharing of risksReduction of TCO
Optimization of Assets, Process andOutcomeData Analysis are Basis for decisions
Page: 12Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Value stream inside the data stream
Smart, connectedproducts / smart
production machinesLocation, Status, Usage
Environment
Weather, Inventories,Prices, Social Media
Company
Service history, SLA,Contracts, Incidents
Data sources
Data Lake
Unstructured,Different Formats
Analytics
Monitored
Location, Status, Usage,Environment
Classical
Evaluation of root causes ofissues
Predictive
Recognition of patterns topredict future events
Preventive
Identification of actions toprevent events
Data Infor-mation
Know-ledge
Data usage
Company
Customer
Partner
Control & Optimization
Page: 13Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
The new manufacturing company – data as an additional company asset
• Product as data generatorIn the past: data were created by internal processes along the value chain combined with internal knowledge of markets and customers. Now: product/machine is generating data in a big way – these data have to be combined with the intrnaldata and environment data
• Data analyticsNew competitive advantage leads to a new corporate function, challenge is that these data lakes areunstructured and have to be analyzed by dedicated tools, digital twins are the anchor for the different types of data
Page: 14Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Usage of data is transforming the whole value chain I• Product Developmentcomplex system of HW and SW, functions embedded in the product and functions in the cloudProduct variability by SW and low costs; continous improvements of products; new UI technologies and augmented reality; continous quality management; remote and connected service; source for new business models; connection to other internal and external systems)
• Production/ManufacturingConnected and smart production machinesIncreased availability by predictive maintenanceHigher output by optimization using big dataBetter quality by using data driven and real‐time quality managementSimpler (mechanical) components by using softwareUsage of more sensors in production equipment and in production componentsNew manufacturing processes (individualization at customer side) ‐> scale effectsRobot based productionContinous manufacturing process (cloud SW offerings after delivery as standard)Cloud infrastructure as part of the production infrastructure
Page: 15Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Usage of data is transforming the whole value chain II
• LogisticsAutomated recognition of product movementsData about the movement, status of the product, path for the movement, environment during movementManagement of big fleets of small automated vehiclesOptimized delivery plan based on environment data
• Marketing / SalesChange of focus of the customer relationship: not the sales situation as a single event‐> ongoing optimization of customer valuesNew ways of customer segmentation by evaluating realtime usage profiles of productsBetter fitting proposals based on usage dataDirect and continous customer contactNew business models based on customer valueFocus on systems not single products: not function and quality of single product ‐> system viewPartnerships and Alliances to optimize systemsNew sales incentives and more complex revenue streams
Page: 16Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Usage of data is transforming the whole value chain III
• ServiceEfficient and predictive maintenance (remote repair preparation, asset management, digital repair assistant)Remote maintenance (complete remote repair, assisted remote repair)Predictive maintenance (Big data analytics and prediction models, SW distribution and update)Customer service assisted by augmented reality (new ways of collaboration)New service offerings (extension of guarantee, benchmarking, optimized usage and configuration)
• Security/ITHolistic responsibility for security by every functionSmart products are broadening the field for Hackers and Cyber attacksAlliances for cyber security & Best practices
• HRCapabilities of HW and SW required ‐> new competencies neededCloud, Mobile, Agile Development ProcessesSW Business understandingSW company culture (different takt rate in SW)New payment models (flexible working time, sabbaticals, time for creativity, …)
Page: 17Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
The ‚new‘ smart infrastructure
SoftwareSW with Data Logging & Computing
Product Hardware
Hardware with sensors/actuators
Network connection(OPC-UA / TSN)
ProductCloud
Product Database(Usage Data, Sensor Data, Task Data)
Application PlatformAnalytics Engine
Smart Product Applications(Control, monitor, optimization,
Energy Efficiency, Predictive Maintenance)
Identity &Security
(User Profiles,SystemAccess,
IT Security)ExternalData
Sources(EnergyPrices,
GPS Data,tbd…)
EnterpriseSystems
(ERP,CRM,PLM,,…)
Page: 18Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Human Human/machine interface
Strategic partnersApps for all layers
Robot and process
Edge/Fog
Cloud platform
Set value
Actual value
Stan
dardized Communication
Marketplace
Cloud services
Marketplace
Asset efficiency & Big Data Mgmt.
IIP Big Data Platform
Intelligent machines
5G Communication
Real‐Time Fog Node
KUKA offers a complete solution and opens up an Eco‐System –Strategic partners augment our holistic solution
Page: 19Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
connyun.connect I4.0 Middleware
Supervision ControlObject Recognition
Supervision Safety
Machine as a Service : Sensor Integration
Machine ConfigurationData ExtractionData Collection/Aggregation
Secure CommunicationProtocol Conversion
Secure Remote Access
Machine as a Service:
Machine UI
Machine Data Analytics
SW Distribution & Rollback
Secure CommunicationProtocol Conversion
Secure Remote Access
Machine as a Service : SW System Manager
1 middleware, 3 usages, 1 success formula: Enabling ‚Machine as a Service‘
Digital Visibility Digital Management Digital Machine1 2 3
Digital visible machine Digital managed machine Cloud machine
Edge/Fog
Page: 20Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
What is our offering?
We are able to offer a complete stack combined with domain knowledge & machines
• Apps & Cloud‐Services Eco System• Digital production & Logistics / Smart Products focus• Technology Components• Industry 4.0 Middleware
• Industry 4.0 ready Intelligent Machines• Domain Process Content
Central Industry 4.0 team
• Evangelization, I4.0 Program coordination• Enabling New Business Models• Coordination of KUKA Apps & Cloud Services
Eco‐System Partners
Holistic Industry 4.0 offering
Page: 21Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Deployment Models – we are playing in all environments
AppStore
Cloud
Customer
Cloud native Cloud OEM
AppStore
Cloud
Customer
Cloud embedded
AppStore
Customer
CloudMicrosoft
Siemens
SAP, …
Customer benefits:• Data Center & upgrade provided• Usage Fee• Scalability
Customer benefits:• No public cloud access• Own Data Center• ….
Customer benefits:• Embedded in customer cloud• ….
Page: 22Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Use Case: Smart Production & LogisticsThe power of a holistic asset management: moving into asset efficiency
DigitalTwin
MasterData
ProcessData
ServiceData Dynamic
DataConfi‐gurationData
Digital Insight Suite‐ Asset Efficiency
MaintenanceEfficiency
ConditionMonitoring
PredictiveMaintenance
MaintenancePlann. & Schedul.
Root cause analysi.& anomaly detect.
OperationsEfficiency
ProductionOptimization (OEE)
Prod. Planning& Scheduling
InventoryOptimization
StatisticalQuality Control
ServiceEfficiency
RemoteManagement
Field ServiceManagement
Material MgmntSpare parts
Supply ChainAnalytics
Energy/SafetyEfficiency
EnergyManagement
AssetSustainability
Safety Mgmnt(EHS, Alarming)
RegulatoryCompliance
Data Efficiency
Master DataModelling
Asset LifecycleData Model
Digital BirthCertificate
KnowldegeManagement
Page: 23Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Use Case Smart Products & Components
ConnectedSmart
Products&
Components
SmartServicesBased onData
UsageData
ServiceData
ProductionData
Energy /SafetyData
ConditionMonitoring
PredictiveMaintenance
EnergyUsage & Optim.
RemoteManagement
SafetyRegulations
DigitalBirth Certificate
MatchingDevelop.&Usage
LocationInformation
Smart Service UpSell on Demand and on Situation based on Data
ReliableProduct g
OptimizedUsage p
HigherUptime
Energy Effic &Safe Product
gFaster
Diagnosis pBetter fittingproducts p
Serviceupsell g
Compliance &Regulations
Supplier Benefits
Customer Benefits
Page: 24Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
connyun – Focus on customer value
Your fast start to Industrie 4.0
Connectivity Kit
‐ Connect your production fleet‐ Extract data & Create insight‐ First prototype in 1 day
Automation Cloud
‐ Drive asset efficiency to thenext level
‐ Optimize by big dataanalytics content
‐ Enable new service‐orientedbusiness models
Appstore
‐ Make use of the availableautomation know‐how
‐ Get solutions of our eco system‐ Extend by your fingertips
1 2 3
connyun.cloudconnyun.connect connyun.apps
Page: 25Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Where to start
• Define digital strategy based on customer value
• Do a fast Proof of Concept to learn by implementing
• Select partners for an implementation (focus on months, not years)
• Use Pay as you go models as far as possible
• Start to collect data and extend by sensors to build the basis for analytics
• Use Fog computing to minimize impact on your current networks
• Rethink digital implications along your value chain
Edge/Fog
Page: 26Gesprächsoffensive Digitale Produktion | Dr. Christian Schlögel | 30.06.2016 | www.kuka.com
Any questions?