Mega Trends in Industries Shaping the Vision of Future Factories
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1 Mega Trends in Industries Shaping the Vision of Future Factories Livio Vaninetti Director of Frost & Sullivan Italy October 30th 2012
2 Factory of Future An Introduction Factory of Future : A Frost & Sullivan Vision Smart Clouds Factory of Future: The need for Perception Sustainability Industrial Cyber Security Factory of Future Enterprise Ecosystem Wireless Intelligence Perceiving the Future of Factories is a strategic necessity for all sections of the industry : The End-Users to improve productivity and profitability Industrial Vendors to design and develop products in line with end-user needs. System Integrators & Value-Added Resellers to formulate and devise service capabilities ensuring sustenance and profits Mega Trends Mega Trends are emerging influences across the industrial landscape that are about to revise the dynamics of existing operation. Mega Trends Shaping Future Factories Frost & Sullivan envisions the following Mega Trends that are about to shape future factories. These trends will involve the emergence of an integrated enterprise ecosystem, smart clouds, industrial cyber security, sustainability and wireless intelligence. Why do Mega Trends Matter? Mega trends have diverse meanings and impacts for different industries, companies and individuals. Analysis of these mega trends and their implications forms an important component of a company s future strategy, development and innovation process, and impacts product and technology planning. 2
3 Mega Trends Demand Drivers & Technology Drivers Vision for Future of Factories Enterprise Integration Smart Clouds Factory of the Future Sustainability Industrial Cyber Security Wireless Intelligence Robotics Emerging Economies Mass Customisa7on Mega Trends Of the mul1ple trends influencing the market landscape, Frost & Sullivan has iden1fied those key trends that yield a greater force in the forma1on of the next- gen enterprise. These trends are designated as Mega Trends. The other trends in this segment have a rela1vely moderate impact in the evolu1on of future factories. These trends are currently perceived as minor trends. 3
4 Smart Clouds Smart Clouds The Next Trend in Cloud Computing These flexible customized clouds can address a particular business need for a specific period of time Benefits: scalability in user and computer capacity shorter implementation easier mobile access lower initial cost Challenges to designing a network of solutions Connectivity Integration with various protocols and complementary solutions Security Management Shadowing vendors security practices; the IT departments still monitoring applications Data storage Multiple locations, traffic and bandwidth issues, security risks Service Level Agreements Management of multiple SLAs for that may not be equal in quality Develop a suitable ICT infrastructure The intra-factory environment is comprised of production-related ICT systems within a single factory A front-end system will support the dynamic configuration of virtual production networks Private clouds Implications in Future Factories Managing Cloud Assets a Strategic Perspective Few businesses fully embracing the The Emergence of Cloud Factory cloud to sustain their entire business In-house infrastructure designed as a cloud platform; Specific for larger companies Smaller companies supplementing current systems Hybrid clouds Integrating multiple cloud service providers SMEs taking full advantage of cloud services, particularly VoIP, SaaS, and PaaS Integration of clouds Public clouds Source: Frost & Sullivan. 4
5 Industrial Cyber Security Industrial Cyber Security Why Cyber Security? Industries in the post-stuxnet era need to adopt holistic security initiatives as cyber threats have the potential to disrupt process safety, cause environmental damage, impact quality and affect productivity. Standards in Industrial Cyber Security Defence in depth is a structured security strategy that avails different forms of network security to protect systems from cyber threats and intrusions. DMZ is a border security level ensconced between the internet and a secure internal network, protecting local LAN networks from external intrusions. Defence in depth (inclusive of DMZ), are likely to emerge into MANDATORY security standards in the future of Industries. Developing an exclusive Industrial workforce that caters to industrial network security in future factories Flexible Management Policy towards Cyber Security as an exclusive strategic discipline for regulatory compliance. Exclusive Industrial Cyber Workforce Management Policy Industrial Cyber Security Pro-active Threat Assessment Multi-level Network Protection Continuous risk assessment of Cyber Threats with third party organizations for regular updates Defense in Depth Strategy The Adoption of the ISA-99 Industrial Automation & Control Systems Security (IACS) approach Demilitarized Zones (DMZs) Cellular Design 5
6 The Enterprise Ecosystem Future Factories: Convergence of ERP, PLM and MES Evolution of the Enterprise Ecosystem Planning ERP Innovation PLM Execution MES Maximized Growth An integrated framework of enterprise software with plant floor, provides a platform to tap valuable business intelligence across the length and breadth of an enterprise. The Enterprise Ecosystem : A Frost & Sullivan Perspective Benefits of Integration Seamless exchange of business intelligence between ERP and PLM will enhance efficiency by optimization of resource planning. A bidirectional exchange of recommendations between PLM and MES will enable continuous improvement throughout the production cycle. Integration of PLM and MES will be a productive circle of data exchange that will aid product innovation and improve manufacturing process planning. Enhanced Productivity Compressed Time-to-market Improved Profitability 6
7 Wireless Intelligence The Future of Factories will see engineers monitor and control site activities on the move Manufacturing Floor WiFi RFID Advent of Mobile & Wireless Devices Wireless HART ISA a Future of Factories: Impact of Wireless Intelligence The future of manufacturing software will not be confined to work stations inside control rooms. The advent of tablets and mobile platforms will enable site personnel track production line, perform maintenance operation and monitor process issues from their tablets, on the move. Manufacturing software through mobile apps serving individual activities will reduce complexity of operation that requires full-fledged software applications. Plant personnel in the future will navigate through sites virtually, and make strategic decisions on maintenance, efficiently and effectively. 7
8 Sustainability Future of Factories: Sustainability A life cycle Initiative Disposal Produc7on Product Concep7on Sustainability - An LCA ini7a7ve Carbon tax is likely to be imposed in all developed & developing economies in future Design Engineering Digital Manufacturing Manufacturers in future factories will be beset with challenges to create products that cultivate sustainability across the realms of social, environmental and economic parameters. Sustainability in future factories will transform into a fundamental discipline applied throughout the product lifecycle from conception to disposal. PLM is expected to be the platform for implementing sustainability in future factories. Sustainability is likely to become an indispensable corporate commitment on the grounds of both, legality and ethics. 8
9 The Last Word Three Big Predictions 1 Innovation and Integration will be the cornerstone of the next-generation enterprise 2 Product lifecycle management is poised to become a major functional discipline that fosters integration and promotes efficiency in future factories. 3 Commercial IT vendors will have a greater presence in the competitive landscape of future factories. 9
10 Thanks to all of you and now let s talk about it! Livio Vaninetti Director IFrost & Sullivan Italy Tel : Mob: livio.vaninetti@frost.com Fatine Ejjennane Account Manager Mega Trends Europe Tel : Mob: fatine.ejjennane@frost.com Anna Zanchi Marketing and Communications Manager for Italy Tel : anna.zanchi@frost.com 10
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