Teollinen internet ja digitalisaation murros. Dr. Kalle Kantola CTO / FIMECC Ltd.

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1 Teollinen internet ja digitalisaation murros Dr. Kalle Kantola CTO / FIMECC Ltd.

2 FIMECC is the significant 10% of the industry >160 comp. ca companies Metals & Engineering R&D&I ca. 540 M /a >70 M /a 5/2/2016 2

3 Shareholders

4 FIMECC Strategic Research Agenda Focus and Targets Private Public Partnership based co-creation programmes Value creation Novel solutions Smart production Agile and profitable business execution in the changing global markets Leading concepts, technologies and material based solutions for effective differentiation Novel digital production for addressing customers production excellence sustainably Innovation commercialisation Digital future Sustainability Business beyond services Value adding materials Long-term capability creation: FIMECC Factory, Doctoral Schools, int l Partners, EU and KICs, SHOK Co-op.

5 The digitalization is irreparably changing the way how people live and make business. The role of digitalization is, however, bipolar: although it is a disruptive change driver, it mostly remains to be a tool for value creation. The business in digital era requires much more that technology, but all this other is highly impacted by the digital technology. It is therefore evident that the future success requires major changes in each businesses and industries. And that these changes can be risky and painful.

6 We are talking about 4 th industrial revolution What are the drivers? Cheap and powerful sensors More data available easily Connectivity and interoperability Real time data available were needed Cheap computing power and cloud computing Advanced analytics, Big Data People s competences and acceptance Open for new things and ways of working Transformation towards XaaS business models Companies pay per use / value add, not to own.

7 Industrial internet and digitalization enables system level management. This has great business potential Kompleksisuus Teollisen internetin konsepti Verkostotason optimointi Fleet tason optimointi Installaatiotason optimointi Tuotetason optimointi Älykkäät tuotteet Älykkäät järjestelmät Älykkäät päätökset Digitalisaatio intensiivisyys Teollisten palveluiden liiketoimintapotentiaali S-Step S4Fleet Globaalin fleetin hallintaan pohjautuva kannattava palveluliiketoiminta Teollisen internetin teknologiat, jotka mahdollistavat uuden palveluliiketoiminnan BUSINESS MODELS OPERATIONS ICT TECHNOLOGY EMPOWERED HUMAN / AUTONOMOUS SYSTEMS PREDICTION SIMULATION SENSING AND ACTUATION COMPLEXITY MANAGEMENT AND TRANSFORMATION INTEROPERABILITY AND CYBER SECURITY

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10 As usual, the most critical challenge is the transformation towards digital world If you want to have digital offering, you should have also adequate internal capabilities. The companies who have strong digital capabilities wants to apply these to other sectors also.

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13 FIMECC s digitalization programs form a logical entity for holistic industry digitalization with industry commitment Digital capabilities and production chains for profitable manufacturing MANU SIMP Capitalizing the high optimization potential of the metals processing industry by novel system integrated processes control technologies. S4Fleet Capabilities to manage complex, global fleet in order to create sustainable service business S-Step Industrial internet technologies that enable superior industrial service creation MEMSCat To bring the latest MEMS products and services effectively for the competitiveness of customers.

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15 5 key takeaways 1. Digitalization is topical for every company. Now there are also new technical opportunities in the market, which enables new offerings. 2. Digital does not create value itself, but it enables new ways to create value. Be interested about your clients business and how you could help them to do more business. 3. Think which part of your customer value is information based or could be offered as a service. And seek ways how to digitalize these as someone will do it, if not you. 4. The value of digitalization is not on cost cutting, but much more on new business creation. 5. Going digital is not necessarily that hard (as the technology becomes more user-friendly). You can start step-by-step, but remember to start your journey!

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17 We create strategic renewal together.

18 FIMECC forms an effective internationl ecosystem for these areas Value creation Agile and profitable business execution in the changing global markets Novel solutions Leading concepts, technologies and material based solutions for effective differentiation Smart production Novel digital production for addressing customers production excellence sustainably Steering Group to see & understand the future needs Industry: ABB, Andritz, Cargotec, KONE, Outokumpu, SSAB, Valmet, Wapice, Wärtsilä Academy: Five cross-scientific professors Industry: Bronto, Cargotec, John Deere, KONE, Konecranes, Outokumpu, Rolls-Royce, SSAB, Valmet Academy: Five cross-scientific professors/scientists Industry: Fastems, Konecranes, Metso, Meyer Turku, Outokumpu, Outotec, Raute, Rolls- Royce, Tieto Academy: Five cross-scientific professors/scientists FIMECC figures 2000 persons 100+ Large companies 60+ SMEs Ecosystem portal 17 Universities HILLA FIMECC results 2,4 mrd business potential ca publications 4 start-ups Expert Support Program management Innovation Scouting Funding relations Finance Marketing Digital future Sustainability Business beyond services Value adding materials

19 We offer an ecosystems for new solutions creation for the markets as-well-as for new capabilities creation in the industry Commissioner Oettinger * FIMECC s Strategic Research Agenda** Industry 4.0, which is about digital innovation in products, processes and business models, offers opportunities that we simply cannot afford to miss. Higher value added originates in three dimensions and in particular from their combination: The use of digital technologies leads to radical and disruptive changes in business models including wellestablished industries such as automotive, lighting or textiles. These are changes that affect the way we do business and generate value in the future. Innovation in "digital-inside" products: opportunities arising from embedding digital technology in any product and artefact are almost infinite. Transformation in processes "smart manufacturing": digital innovation affects the full product lifecycle "from cradle to grave". It ranges from product design and simulation tools to automation and shop floor controls and from logistics and supply chain management down to product tracking and recycling. *) EC SPEECH/15/4772 Europe's future is digital **) FIMECC combines the competence of people into portfolio activities of 310 M. FIMECC ecosystem and the activities have created approximately 2.4B business potential already.