IoT in Production. Dr. Verena Majuntke, Bosch Software Innovations. Bosch Software Innovations

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1 IoT in Production Dr. Verena Majuntke, 1 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

2 Agenda The Internet of Things Internet of Things in Production Business Ecosystem in the Factory of the Future Technical Implementation of Industry 4.0 Use Cases 2 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

3 Agenda The Internet of Things Internet of Things in Production Business Ecosystem in the Factory of the Future Technical Implementation of Industry 4.0 Use Cases 3 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

4 Key Markets Industry Mobility Energy Building & City Banking & Insurance Software Suite: BPM, BRM, M2M Professional Services: Planning, Implementation, Training and Operations Locations: Berlin, Immenstaad, Stuttgart, Chicago, Singapore, Shanghai & Melbourne Employees: ~600 worldwide 4 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

5 Agenda The Internet of Things Internet of Things in Production Business Ecosystem in the Factory of the Future Technical Implementation of Industry 4.0 Use Cases 5 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

6 The Internet of Things Everyone & Everything connected 5 billion People connected Devices connected billion devices in billion World population People connected to the internet billion vehicles billion in telemedicine billion in security 7.3bn billion smart meters 5.7bn 6.5bn billion TVs billion tablets 3 billion 0,7% 15% 75% billion mobile phones billion laptops billion desktops billion servers 2 billion 1 billion Public INST/MKC GmbH All rights reserved, also regarding any disposal,

7 The Internet of Things IoTS Reference Model Trends are drivers Layer Mobility City Energy Enterprise Industry Life Application Domain Service Service Service Service Service Service Applications, solutions and services for industry sectors Applications, solutions and services for industry sectors Internet of Services Agile composition of business processes, rules and data Linking business services and system functionality Flexible composition of system functions and real world data Integration Devices, Systems and System of Systems Internet of Things 7 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

8 The Internet of Things A highly connected world Potential by Key Markets Source:, Public INST/MKC GmbH All rights reserved, also regarding any disposal,

9 Agenda The Internet of Things Internet of Things in Production Business Ecosystem in the Factory of the Future Technical Implementation of Industry 4.0 Use Cases 9 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

10 Internet of Things in Production: Industry 4.0 Industry 4.0: The next Industrial Revolution Complexity, Productivity Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 First mechanical loom (1784) Assembly line of Ford Model T, Detroit (1913) First programmable logic controller (PLC), Modicon 084 (1969) Cyber-physical Systems (CPS) 10 End of 18th century Start of 20th century Start of 1970s Public INST/MKC GmbH All rights reserved, also regarding any disposal, Since 2010 Time Source: Forschungsunion, acatech, Abschlussbericht Arbeitskreis Industrie 4.0

11 Industry 4.0 connected production Goal Competitive, sustainable industrial production How? Operative excellence Efficient use of ressources Productivity & flexibility High speed Simultaneously Reduce costs Reduce time-to-market Increase product diversity and customizatioin Efficient production and business processes that are adaptable to volatile environments (data & information accessible without system discontinuities) Customized products at the costs of mass-produced goods Integrate business partners into complex value networks Connect products and production with valuable services 11 Public INST/MKC GmbH All rights reserved, also regarding any disposal, nach U. Sendler (Hrsg.), Industrie 4.0, Springer Vieweg 2013

12 Internet of Things in Production: Industry 4.0 Smart Factory New business models through the convergence of IT & production Customer Integrated Engineering Adaptive Logistics Resilient Factory Networked Production Up-Cycling Predictive Maintenance Technology Marketplace Source: Forschungsunion Wirtschaft & Wissenschaft 12 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

13 Internet of Things in Production: Industry 4.0 In future factories a single object determines its production flow and not vice versa. This allows unprecedented flexibility and optimal use of resources. Prof. Dr. Henning Kagermann acatech National Academy of Science and Engineering Co-Chair of the Industrie 4.0 Working Group Former SAP CEO 13 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

14 Internet of Things in Production: Industry 4.0 Role of IT in Future Manufacturing Provide secure internal and external connectivity Collect, process and analyze data Trigger business processes Enable integration of business partners in growing value networks (new business models) 14 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

15 Agenda The Internet of Things Internet of Things in Production Business Ecosystem in the Factory of the Future Technical Implementation of Industry 4.0 Use Cases 15 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

16 Business Ecosystem in the Factory of the Future Supply and Demand Integration Demand chain connectivity Connected Product Connected Ecosystem Supplier Manufact. Distributor Customer Supplier Manufact. Distributor Customer Maximum Level of Connectivity Connected Plant Connected Operations Supplier Manufact. Distributor Customer Supplier Manufact. Distributor Customer Supply chain Connectivity Source: Demand chain management in manufacturing and services: Web-based integration, drivers and performance, Markham T. Frohlich, Roy Westbrook 16 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

17 Business Ecosystem in the Factory of the Future Classical value chain today Production Supplier Logistics Engineering Marketing & Sales Logistics Customer Classical functions and role models Mostly closed value chains with fixed and constant set of participants Not linked to other value chain entities 17 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

18 Business Ecosystem in the Factory of the Future Value Networks: Business Innovation 18 Chains become Networks: Data exchange, business process APIs Public INST/MKC GmbH All rights reserved, also regarding any disposal,

19 Business Ecosystem in the Factory of the Future Predictive Maintenance Customer Benefit Planning of optimal maintenance effort Reduction of repair, resources and energy costs Increase of productivity by preventing unplanned downtimes Predictive Maintenance Increase Overall Equipment Effectiveness (OEE) Service Portal for customers and employees Integration of machines and systems Real-Time data acquisition of machine conditions Tool supported data analysis for malfunction prognosis 19 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

20 Business Ecosystem in the Factory of the Future Remote Service / Predictive Maintenance Example of a business model in the value network of the future What? Minimized downtime Minimized resource consumption Optimized maintenance services Revenue Revenue through new services Increased margins by offering services from remote How? Collection of machine and sensor data Analysis of machine data to predict malfunction Who? Machine users Source: Gassmann, Frankenberger, Csik, The St. Gallen Business Model Navigator, Public INST/MKC GmbH All rights reserved, also regarding any disposal,

21 Agenda The Internet of Things Internet of Things in Production Business Ecosystem in the Factory of the Future Technical Implementation of Industry 4.0 Use Cases 21 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

22 Technical Implementation of Industry 4.0 Use Cases Solution Architecture Business Frontend Applications Integration Level Device Management Remote Service Portal (UI Integration) Communication Platform Server-based Close-to-machine Condition Monitoring Predictive Maintenance - Data Analysis - Data Processing - Workflows & Business Process Integration - Device Abstraction - Device Data - Device Access - Event Management Object-based Data Adaptive Testing Logistics Data Analysis Big Data CRM Field Service ERP Logistics Software Network protocols Machine & shop floor level CRM = Customer Relationship Management, ERP=Enterprise Resource Planning, M2M=Machine to Machine 22 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

23 Technical Implementation of Industry 4.0 Use Cases Factory Cloud Apps Notification - analysis Cycle time monitoring Energy Management Erosionanalysis Powered by BOSCH SI Business Process IT Systems BPM BRM M2M Production 23 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

24 Technical Implementation of Industry 4.0 Use Cases Interactive Manufacturing Dashboard Realtime data and information (line and production) IMD Plan data (line and production) Backend Systems Production line Employee integration Communication Industry 4.0 Benefits Interactive Manufacturing Dashboard as integration point: human machine production processes Plant intelligence made transparent Paperless plant Consistent data management and visualization Automatic triggering of processes based on realtime data (notification, escalation, problem solving process) Basis for optimized, trackable and sustainable problem solving processes 24 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

25 Technical Implementation of Industry 4.0 Use Cases Strategic Plan Service Portal Machine Manufacturer Services New, direct sales channel to enlarge business with > end customers (Business, Consulting and opportunities for follow-up business), customer relations Interactive interface customer machine to the machine manufacturer, with the possibility to connect > machines per year (Basis are components which are able to communicate, I4.0 approach) Profitable data usage, combination of data for customers and the machine manufacturer (service contracts, RCM, Energy, Safety, Q-improvement, standardization) 25 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

26 Predictive Maintenance Free Internet of Things White Paper Download bosch-si.com/iot-strategy Contact Details Verena 26 Public INST/MKC GmbH All rights reserved, also regarding any disposal,

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