Tuottavuusharppaus teollisen internetin keinoin

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1 Tuottavuusharppaus teollisen internetin keinoin TYÖN JA ELINKEINOJEN TULEVAISUUS UUSIA TULKINTOJA - tapahtuma Heikki Ailisto VTT Technical Research Centre of Finland

2 Alustuksen pääviestit Mitä on teollinen internet ja miksi se on tulossa nyt. Teollinen internet on iso murros, se muuttaa pelikentän ja parantaa tuottavuutta. Suomalaisten toimijoiden tulee valita strategiansa, tehdä suunnitelmat ja panna toimeksi. 19/03/2014 2

3 Trend from M2M silos to IoT, or Industrial Internet (but this is not the whole picture ) Industry A Business domains in silos. Waste of resources because of duplicating systems, ICT. Industry B Industry C Fixed/wireless connectivity (heterogenous) Facility mngmt Silo 1 HVAC 2010 Silos within one domain and company (systems do not share data), case FM. Silo 2 Lighting Silo 3 Access control Industrial internet broader benefits: Sharing information between systems, within companies, and 2020 even between domains; Metcalfe s law V ~ N 2, advanced data analytics and DSS bring not only savings but new business. Silo X Local smartness Smart machines with sensing and connectivity App App App App Enabling new business models, Interoperability, connectivity, e.g. from sale access to payby-use control, service discovery, privacy (IoT platform) Fixed/wireless connectivity (Internet) IoT solution: First level benefits Interoperability and standardization, lower cost of implementation. intelligent machines smart sensors Unique ID for every object 19/03/2014 3

4 Why is it happening now? Affordable technology is here People are ready for it Computing power grows Smart machines Intelligent analytics, decision support systems Big data Store everything paradigm (dirty cheap GB) Connectivity like newer before Internet IPv6, no limit to nodes IoT paradigm connected objects Low power communication Identify and track everything (QR, RFID, GPS) Sensing everything in real time Extremely low cost and small Connected Advanced sensing Bio-mimicing Competences Average person has good competences with digital services and products. Acceptance People in all age groups use web, smart phones, car computers at home and on free time. Digital natives, Y-generation, not only accept, they expect! 19/03/2014 4

5 What does it mean: Views of industry leaders GE: Industrial Internet The world is on the threshold of a new era the convergence of the global industrial system with the power of advanced computing, analytics, low-cost sensing and new levels of connectivity permitted by the Internet... Increased productivity, if the Industrial Internet could boost annual productivity growth by percentage points over the next twenty years... add a $10-15 trillion to global GDP the size of today s US GDP. Cisco: Internet of everything the age of IoE, creating an unprecedented opportunity to connect the unconnected: people, process, data, and things. The Internet of Everything (IoE) creates $14.4 trillion in Value at Stake the combination of increased revenues and lower costs that is created or will migrate among companies and industries from 2013 to The five main factors that fuel IoE Value at Stake are: 1) asset utilization (reduced costs) of $2.5 trillion; 2) employee productivity (greater labor efficiencies) of $2.5 trillion; 3) supply chain and logistics (eliminating waste) of $2.7 trillion; 4) customer experience (addition of more customers) of $3.7 trillion; and 5) innovation (reducing time to market) of $3.0 trillion. 5

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7 Possibilities Industrial Internet will open Building and facility domain: energy (heating, ventilation); occupancy; people flow; security, safety; access control Lighting Asset and fleet management domain: CBM; Operation; Optimization New business models Municipial domain: energy,water, waste water, transport; housing, waste, parking; lighting Industrial domain: Process operation, optimization CBM Retail and logistics: Logistic chain (not just position and time) Energy, lighting; People flow Other: Consumer (home) Health care Elderly care Automotive, auto traffic 19/03/2014 7

8 Interesting companies GE, Schneider, Siemens, ABB, Wärtsilä, Metso, Kone, Valmet, KoneCranes, Ponsse, Normet ISS, Senaatti, Caverion, L&T Wallmart, Tesco, K, S FedEx, DHL, Itella, IBM, SAP, Oracle, Tieto, CGI, Axeda, Zebra, Wapice, Oliotalo, KDDI, Telia-Sonera, Elisa, MPY... Cisco, Ericsson, NSN, Huawei Honeywell, Rockwell Automation, Ouman-Enerpoint, CEF, OffCode, iprotoxi Google, Microsoft, Apple 19/03/2014 8

9 What Google really gets out of buying Nest for $3.2 Billion BY MARCUS WOHLSEN, Wired Magazine When Google announced yesterday its $3.2 billion cash purchase of Nest, the jokes flew. If your house is burning down you ll now get gmail ads for fire extinguishers, Valleywag s Sam Bidd Here s what Google gets for its money: A product master who beat Apple to the next big thing Before co-founding Nest, CEO Tony Fadell was best known for designing the ipod,... Nest learning thermostat The bottom line: The second generation of the energy-saving Nest Learning Thermostat puts this device even further ahead of the (nearly nonexistent) competition. 19/03/2014 9

10 Industrial internet is a VTT priority: ProIoT program Program Lead, Heikki Ailisto Business plan, Petteri Alahuhta Module 4.1 Ismo Vessonen Global asset management CBM Remote operation, monitoring Digital spare parts Module 4.2. Miimu Airaksinen Intelligent infrastructures Smart lighting (Janne Aikio, Marko Jurvansuu) Responsive buildings Module 4.3 Minna Isomursu Digital society Interoperable services Digital infrastructure Module 3. Information management and analysis, Heli Helaakoski Module 2. Connectivity, Pertti Raatikainen Module 1. Networked sensors, Jukka Hast From real world phenomena to digital data 19/03/

11 Web stores lesson to learn In the 1990ies Finland was forerunner in mobile technology and apps, net banking etc. First web stores emerged, also groceries. It was not profitable and the model was not right. Finnish actors decided to wait. Did they wait too long? 19/03/

12 Opportunity for industry in Finland What can we achieve 1. New level of competitiveness for machinery industry with productivity 2. Productization of Industrial internet concept 3. New ICT/ electronics manufacturing for Industrial Internet products and services Do we have competence? World class machinery industry, technology-savvy, able to create new services. Tech from silicon to cloud: sensors, connectivity, services, data analysis, cyber security and we know how to combine them! 19/03/

13 Conclusion Industrial internet is coming. It will disrupt most businesses and public services during next 3 to 15 years. Technologies are there, and they are affordable. Risks and threats Remaining too long in comfort, until someone takes your business Major information security breaches (company level) Opportunities Improved productivity Open new business or take somebody else s old one What to do Start preparing IoT/II strategy Start early with experiments, learn from experience, also from setbacks. Tekes program industrial internet Avoid paralyzing regulation but supportive regulation (cf. NMT) or procurement may be very good! 19/03/

14 TECHNOLOGY FOR BUSINESS Contacts Heikki Ailisto Tel

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