ManufacturingEmbarking on digital transformation from the top floor to the shop floor with Dell Technologies OEM & IoT Solutions

Contents

CHALLENGE #3Creating a seamless and insightful value chain 22

CHALLENGE #2Transitioning from reactive to predictive maintenance 20

CHALLENGE #1Laying the foundations for IoT

DATA: THIS CENTURY’S OILDigital is a core component of any manufacturer’s overall business strategy

THE EVOLVING MANUFACTURING OUTLOOKManufacturing industry as a whole is undergoing a profound transformation

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FOREWORDStart-up agility applied to manufacturing

A PRACTICAL PATHWAY TO ENABLING THE FUTURE OF CONNECTED MANUFACTURING

THE JOURNEY TO INDUSTRY 4.0 STARTS WITH A CLEAR ROADMAP

ABOUT DELL TECHNOLOGIES

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CHALLENGE #7The cost of modernizing and automating IT infrastructure

CHALLENGE #5Securing the smart factory

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CHALLENGE #6Finance and access to viable payment models 28

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CHALLENGE #4Overcoming cultural resistance to change 24

JOINING THE MANUFACTURING 4.0 REVOLUTIONRedefining as an agile manufacturer 12

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Implementation of Industry 4.0 initiatives requires engaging various company functions:

Start-up agility applied to manufacturingTransform manufacturing with data and technology

The manufacturing industry has always been at the forefront of embracing new ways of doing things faster, smarter and better. Today, we’re at a fascinating inflection point. Industry 4.0 — a long-used term in manufacturing — has become increasingly mainstream, due to the availability of affordable IoT infrastructure, the desire to gain new business insights from data plus the arrival of advanced connectivity technologies, such as 5G.

In today’s factories, appliances must be multi-functional; able to manage everything related to production—including logistics and supply chain. All this activity generates mountains of data; but, without analysis, it cannot yield additional value. You need actionable business insights at your fingertips.

Customers also have the usual questions, like how do I speed up my time to market, how do I scale cost effectively, and how do I keep it all secure?

As the manufacturing industry continues to evolve through digital transformation, industrial solution builders are working hard to address all these concerns. However, some businesses remain stuck in the early stages of digital maturity, supporting ad hoc projects without a holistic view. The good news is that Dell Technologies can help you advance your business to the next level.

As a powerhouse of seven technology leaders—Dell, Dell EMC, Pivotal, RSA, Secureworks, Virtustream and VMware—Dell Technologies is committed to transforming businesses, shaping the future of innovation and developing technologies to drive human progress. Our technology, channel and IoT partners add further weight to our line-up, with many of our ISVs offering world-class expertise in developing and implementing solutions for specific manufacturing use cases. Together, we can help you manage your data across the entire manufacturing process and supply chain, from the edge to the core to the cloud, speeding up your application development and compressing your time to market.

And our engineers are ready to help you design and build solutions to meet your unique requirements. With technology tailored for industrial environments, you can quickly deploy world-class Industry 4.0 solutions—including IoT and edge computing applications. Our goal is to speed your product development, scale globally, create operational efficiencies, and enhance your customer experience.

When it comes to OEM partnerships, we are proud to serve over 3,500 customers worldwide. Our solutions can be found in some of the biggest factories, mines, oil-rigs, ships, hospitals and retail stores around the globe. In fact, thanks to our customers and partners – we’re honored to be the #1 OEM solutions provider worldwide.*

Let us help you focus on your IP, while we handle the underlying complexity of getting your industrial solution to market.

Together, we can make it real.

Bryan E. JonesSenior Vice President and General ManagerDell Technologies OEM & IoT Solutions

*Merchant Embedded OEM Global Share based on 2016 Dollar Volume Shipments, VDC Research

• Chief Technology Officers• Chief Executive Officers• Product/Solution Development• Engineering• Operations

• Procurement• Business Development• IT• Finance

Customers say OEM & IoT partnerships are driving huge value in the digital economy. The OEM market is continuing to grow so fast, particularly over the last few years. But why the increased market demand for OEM relationships?

Who can benefit from this Executive Briefing?

Get the full picture.

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At Hannover Messe 2019, Bryan Jones shares why Dell Technologies provides unique advantages for customers. Watch the Video ›

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1. Global competition is fierce The shifting geopolitical landscape is prompting governments in some parts of the world to become more stridently nationalistic. For example, the new tariffs currently being pursued by the US and the UK’s withdrawal from the EU are both generating trade friction. Big decisions need to be made on how to fund critical investments such as plant relocation. Over half (55%) of manufacturing CEOs believe a return to territorialism poses the greatest threat to their operations – way ahead of cyber security risks (37%)1.

Whilst not necessarily stalling expansion, this is making businesses consider their investment strategies very carefully, from location strategies for supply networks to technology acquisition and transformation initiatives. To become more responsive to unforeseen, rapidly unfolding geopolitical events, manufacturers will need to fine-tune their corporate strategies to build in asmuch flexibility and resilience as possible.

2. Manufacturing is no longer just making thingsThe trend for increased personalization and customization is here to stay, and demands for factories to shift from the ‘make to stock’ approach in favor of ‘make to order’, ‘engineer-to order’ or ‘configure-to-order’.

Hyper-specialized and heavily - automated small factories are posing a growing threat to established businesses, particularly with the advent of additive manufacturing which is accelerating new business model innovation. So rather than being ‘all things to all people’, connected factories are increasingly distributing risk and capital expenditure among the various parties involved, to allow them to focus on their respective strengths.

Supply chain leaders are focusing on three key priorities:• The use of digital connections with

customers to better understand and drive the Total Customer Experience.

• Digital automation and augmentation of supply chain capabilities.

• A shift towards a lifecycle-based approach to understanding the total impact of products and operations across the value chain2.

1Global Manufacturing Outlook data from 2018 Global CEO Outlook, KPMG International 2The Gartner Supply Chain Top 25 for 2018

The manufacturing industry as a whole is undergoing a profound transformation. But while technological innovations are fueling momentous change, we appreciate that none of this happens in a vacuum. Here are the five key sector trends which provide the backdrop for the strategic technology decisions facing manufacturers today.

The evolving manufacturing outlook

of manufacturers said they are ready to invest

in new digital technologies to boost productivity

87%Annual Manufacturing Report 2018,

The Manufacturer

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3. Servitization is becoming a common strategy More and more businesses that have historically sold products are now selling capabilities, services and outcomes in an attempt to future-proof themselves against commoditization.

‘Servitization’ is essentially about moving from a product-centric to a service-centric model. The main aim is to develop longer-term relationships with customers rather than one-off transactions, with a secondary motive to create recurring, profitable revenue streams.

Solution builders are helping those businesses to embrace emerging technology such as artificial intelligence (AI), multi-cloud, and the Internet of Things (IoT) to revolutionize, personalize and accelerate the production process. IoT is opening the scope for masses of devices to connect to.

Take Kone Lifts as an example, which still creates elevators but has a mission to enhance the movement of people and the flow of urban life.

As the number of connected devices becomes more commonplace, intelligent computing at the edge of the network is critical. The Weir Group recognised that and acted upon it. Their Director of Strategy, Andrew Neilson said, “We’ve embarked on a digital journey at Weir and IoT will enable us to further enhance the way we serve our global mining, oil and gas, and power customers” The Weir Group. “Together, we’re building solutions based on Dell Edge Gateways for some of the world’s most challenging industrial environments that will allow us to easily monitor large, remote equipment and make better business decisions based on the data.”

The evolving manufacturing outlook

Emerson drives industrial insights through cloud connectivityEmerson needed to quickly develop and deploy a scalable industrial automation solution that collects IoT data to help customers better manage and troubleshoot control valves. By partnering with Dell Technologies OEM & IoT Solutions Emerson was able to quickly develop solutions on a global scale, spend more time on innovating, and win the time to market race.

Source: Dell Technologies Customer Stories

Weir’s new value proposition is focused on process optimization and predictive maintenance, where the company can remotely monitor the performance of customer pumps and use this data to schedule preventative maintenance.

However, servitization calls for a new set of capabilities, from providing consumables, to condition monitoring, repairs, maintenance and end-of-life product disposal. Forward-thinking manufacturers therefore need both the strategy and the resources – people, materials, finances and systems – in place if they are to deliver such value-added services and solutions.

of manufacturers said digital technologies will help broaden

their customer base via service-based offerings (servitization)

79%Annual Manufacturing Report 2018,

The Manufacturer

Weir and IoT See the blog

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4. The financial outlook is cautious Manufacturers’ big-ticket decisions continue to be influenced by the availability of bank financing, cash reserves on the balance sheet, and the measure of confidence within the sector to invest in digital technologies.

A healthy supply of low-cost labor has given some businesses an excuse not to place their bets on long-term profitability through investment, preferring to sweat fixed assets and focus on the short-term profits. However, most manufacturers (87%) really do want to invest in new plant and ‘Industry 4.0’ technology to boost productivity3. Digitization is therefore key to product and process development.

Given the relatively complex nature of digital transformation projects, traditional financing partners may not be the best choice to support these initiatives. Instead, organizations should look to companies that have a broad and deep understanding of not only the technologies themselves, but also the processes involved, and the path to value over time.

5. The sector is facing a skills shortageIncreasing digitization, interconnection and automation is often associated with potential job losses – a belief that has led some manufacturers to defer investment in technology to avoid workplace unrest and maintain wider social harmony. Nevertheless, competitiveness is still the most effective way to create and keep jobs over the longer term, and more enlightened businesses are acknowledging that automation will not necessarily eliminate jobs but instead redefine them.

In reality, the rapid adoption of advancing technologies, coupled with an ageing workforce, is contributing to an overall industry shortage of workers with STEM (science, technology, engineering and mathematics) skills. Unless immediate action is taken, experts including Deloitte and the Manufacturing Institute warn that by 2025, there will be a potential shortfall of two million skilled manufacturing workers in the US alone.*

Due to poor, albeit outdated, public perception of the sector, manufacturers are currently facing a digital talent gap and have difficulty in attracting millennial brainpower. For example, data scientists are a hot commodity across every industry, so manufacturers are already facing intense competition from high-profile, high-tech companies for the best and brightest. There is an urgent imperative for both the industry and academia to reposition manufacturing to the upcoming, tech-savvy generation as a dynamic, innovative environment with rich and rewarding career prospects.

Welcome to the dawn of the robot eraTry to imagine life without the internet. One day, we’ll be feeling the same way about robots. That’s why the brilliant minds at OTTO Motors are leading the charge, with robots solving very human problems in a very practical way – at scale – doing the work that frees up humans to perform higher-value tasks, driving profitability and enhancing quality of life. CEO Matt Rendall reveals how his machines are thinking for themselves, and how AI and machine learning in general will improve our lives in unimaginable ways.

Source: Dell Technologies Customer Stories

The evolving manufacturing outlook

*Source: Annual Manufacturing Report 2018, The Manufacturer

of manufacturers believe Smart Factory technologies will enable

them to increase productivity levels per headcount

92%Annual Manufacturing Report 2018,

The Manufacturer

Take a deeper dive into the impact human/machine partnerships will have in manufacturing ›CO

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“Established businesses have a poor track record for embracing disruptive innovation or dealing with it if it threatens them. Too often, they misread the environment, misunderstand their options, and misplay their hand.”Geoffrey A. Moore, Author, Crossing the Chasm

As manufacturing businesses diversify and merge, disruptors compete and industrial demarcation lines become blurred, it is difficult to anticipate what manufacturing in its many forms will look like over the next decade.

However, one thing is certain: the future of manufacturing will increasingly depend on interconnectivity, broad access to data, and the human-machine partnership. This triumvirate is what will enable manufacturers to gain a new level of insight into products, operations and customers, and to master the kind of predictive, proactive capabilities that can redefine even the most established business as an agile manufacturer.

This kind of business is what we call the “Connected Manufacturer” – a networked organization with physical assets linked by a digital thread.

Conservative manufacturers are taking a wait-and-see approach to disruptive technologies, while pragmatists are motivated only to optimize for the short term rather than systemically evolving towards higher performance levels, only to rapidly hit a benefits ceiling.

Digital transformation shouldn’t be a tactical cost-reduction tool, but a strategic business enabler – one that demands a bold rethink of your entire business and operating model. Just as Netflix is disrupting television and Amazon is disrupting retail, no sector is exempt from digitally-enabled transformation: as risky as it may be to make a move, the biggest risk is standing still.

Joining the Manufacturing 4.0 revolution

The promise of transformation

Manufacturing CEOs are confident in their leadership, but concerned about execution.

• Ready to lead Two-thirds say they’re prepared to lead a radical transformation of their organization’s operating model.

• Slow to see results Seven in ten say the lead times on digital transformation often seem overwhelming.

• Don’t delay Nearly 66% say acting with agility is “the new currency of business; if we’re too slow, we will be bankrupt”.

• Falling behind One in three agree their organization is struggling to keep pace with technological innovation.

Global Manufacturing Outlook data from 2018 Global CEO Outlook, KPMG International Excerpt from GEODIS 2017 Supply Chain Worldwide survey.

Learn how to take your operational efficiency to the edge with Tridium, Dell and Intel

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We have reached the point where digital has become a core component of any manufacturer’s overall business strategy, rather than an adjunct. Whether you are looking to innovate for differentiation or to fend off disruptive challengers, you need an integrated vision of your digital transformation – one that does not simply add technology layers but favors the development of opportunities across four key dimensions:

Data: this century’s oil

“Data, represents a way of unlocking knowledge traditionally trapped within your production floor. Gaining access to this information by connecting assets in a secure way via edge, distributed core, or cloud computing allows previously untapped data to become usable within a business and drive more informed decision-making.”Patrica Florissi, CTO, Dell EMC

Manufacturers are sitting on mountains of data that, with the right technology investments and digital transformation strategy, can be exploited and interconnected to create new, agile and disruptive business models. To advance operational excellence by allowing decision-makers – whether human or machine – to spot system weaknesses before they become problems. Data will also improve the transparency of increasingly complex global supply chains. Insights will also aid design and develop better products and services that align with customers’ needs and preferences.

An insight into a digital future fueled by data & valuable returns

Customer experiencedata-driven initiatives that provide a personalized experience to the customer for both products and services.

Operational improvementsto address the traditional goals of “cheaper, better, faster” throughout the value chain -from concept to delivery.

Product innovationinformed by integrating data across the product lifecycle and ecosystem, to improve the design and performance of existing products, and create new ones.

New business modelsby identifying servitization opportunities within your existing portfolio, enabled by the connected ecosystem.

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Solution: A robust backbone and platform to support IoT

The IoT edge is where ‘things’ first get connected. This requires gateways, embedded PCs and specialized servers to securely process and act on data. Where sending data to the cloud is impractical due to bandwidth constraints, network reliability and latency, a distributed core is needed. This layer of data center-level compute, storage and networking functions is close to the data source and enables rapid, sophisticated decision-making and powerful machine learning.

While speed is paramount at the edge and in the core, the cloud enables the discovery of strategic insights that create value over time. This should be made up of powerful processing, massive storage and potent networks to perform deep learning across vast, integrated data-sets, and the ability to develop cloud-native applications.

By layering this technology foundation with predictive models and data science, insights can be operationalized to solve pressing business challenges.

Challenge #1: Laying the foundations for Industrial Internet of Things (IIoT)

Information is the new currency of business. In the connected factory, the IIoT enables the connection of multiple new and legacy devices, so they can “talk” to each other.

Traditionally, industrial control systems have been deployed in isolation, with little or no connectivity to other OT systems. Unlocking the power of the IIoT, on the other hand, demands bidirectional data feeds across the enterprise. That involves connecting everything from sensors and actuators to supervisory control systems, to ERP and business planning systems. The key is to implementing an infrastructure that enables secure connectivity and provides the data exchange that is the lifeblood of IIoT while protecting the integrity of business-critical systems and data for OEMs.

7 vital capabilities that enable Connected Manufacturing

Discover the Connected Solution ›

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Olivetti helps SMBs transform their operations for a digitized world with Dell Technologies OEM & IoT Solutions

Manufacturers are constantly looking to improve productivity through digitization. Olivetti — an Italian brand established in 1908 and now Telecom Italia Group’s IoT specialist — is providing small and medium sized manufacturers with an IoT-based plug-and-play solution to make their machines and plants smarter, and their operations more efficient and effective. Today, SMBs in Italy are embracing smart manufacturing, and transforming performance with the support of Olivetti and Dell Technologies OEM & IoT.

Real-time quality control with EigenEigen processes data from senors on the factory floor such as video sensors and thermal sensors and in real-time they use the Dell Edge Gateway to see if there is a defect on the factory floor. From that they are able to close loop control and take corrective action on the factory floor.

Learn More

Watch our Video ›

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Challenge #2: Transitioning from reactive to predictive maintenance

Solution:Think big, start with small initiatives for quick wins

Next, you will need to establish an advanced analytics foundation based on your specific operation; this may mean balancing Edge with Cloud analytics to reduce the burden of streaming perishable PdM data on your cloud deployment.

By analyzing available data, you can define the parameters of normal operation for a machine to create rules through condition monitoring on the real-time data coming directly from machine sensors. Then historical and third party data can be added to uncover meaningful correlations, patterns and trends, using the anomalies generated by the real-time data rules to signal potential failures.

When embarking on a PdM or ‘Maintenance-as-a-Service’ initiative, the increase in asset connectivity and use of smart devices will likely generate large amounts of available data, so a useful starting point is to predict failures on a single asset by focusing on the usable, existing data sources related specifically to it. This data may reside in disparate locations, from a device at the network edge to the server room to the enterprise cloud.

PdM solutions should be flexible enough to enable you to collect from all their data sources – including sensors, meters, enterprise asset management systems, and supervisory control and data acquisition (SCADA) systems.

Maintenance is considered one of the largest controllable costs in manufacturing. Historically, manufacturers have taken a run-to-failure approach and simply waited until something went wrong before replacing faulty or failed components. More recently, firms adopted preventative or time-based strategies, with maintenance schedules based on predetermined intervals rather than the machine’s true condition. Today, maintenance is increasingly viewed as an aid to productivity and businesses are evolving towards a more proactive and planned mindset.

Predictive maintenance (PdM) anticipates maintenance needs by extracting insights from data produced by the equipment on the shop floor, thanks to a combination of IIoT, cloud computing, data analytics, AI and machine learning. In addition to plant operations, maintenance-as-a-service can be provided by solution builders, enabling customers’ assets to be monitored and fixed remotely – a capability which can be servitized. IoT PREDICT:

a new era in machine monitoring

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Solution:Create an insightful supply chain ecosystemThe World Wide Herd (WWH) concept from Dell Technologies enables distributed yet collaborative analytics at global scale, enabling geographically-dispersed data to be analyzed in real-time, without needing to first centralize the data in a single location.

Effectively, this federated analytics model takes processing power and analytics to the data, rather than vice-versa. Intelligence is extracted and shared with each participating location completely anonymously. Each location has the autonomy to manage their data in whatever way they see fit, while allowing other organizations to securely share analytics performed in each location. The more locations that are connected,

the more detailed the network and the better the real-time view across the supply chain.

The WWH model is already helping hospitals worldwide make more efficient and cost-effective use of expensive medical diagnostic equipment such as MRI and CT scanners, by fostering the growth of a digital ecosystem linking healthcare providers and solution providers and bringing together their data, applications and services.

Supply chains can analogously apply this framework to transcend siloed systems across organizations, unlock knowledge, gain rich insights and take decisive action within very narrow windows of opportunity.

Challenge #3: Creating a seamless and insightful

end to end value chain

Factories have a unique opportunity to become networked organizations within flexible ecosystems, where information-

sharing, joint knowledge creation and decision-making, congruence of goals and

the distribution of incentives can create a powerful competitive advantage.

When manufacturers, customers, and physical assets work together (thanks to the IIoT) they unlock enormous value from the rich insights

that can be obtained when the domain of the data analyzed transcends geographical,

political and organizational boundaries.

However, manufacturers have been wary of supply chain collaboration, amid concerns about the

security of data in transit and the need to protect intellectual property. There are also technical

barriers: an explosion in the number of connected devices has resulted in IIoT data volumes that

defy the scalability of centralized approaches to storing and analyzing data in a single location, plus

the bandwidth and cost constraints that make it impractical to move data to central repositories.

Computer vision and machine intelligence: advancing the human/machine partnership.

Learn More

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Solution:Nurture the human/machine partnership

Many problems need to be addressed in a completely objective way, where inherent human bias can influence analysis and lead businesses to the wrong conclusions. Advanced analytics, artificial intelligence and machine learning can help us not only identify and understand the root causes of a problem, but also learn from the past, anticipate problems or identify opportunities before they occur, and shift from reactive practices to predictive, prescriptive and preventative approaches.

Automation: not an either/or choice between robots and people

Automation is a convergence of artificial and human intelligence which offers an opportunity to breathe new life into existing roles and careers, particularly as manufacturers will increasingly need people with cross-functional skills and knowledge. Change on the factory floor must be met by a large-scale, company-led commitment to industrial reskilling and developing the digital literacy of the existing workforce while attracting millennial talent.

There is considerable value within information that is inaccessible via human compute power, even when equipped with business intelligence tools, due not least to the scale and speed at which data is generated.

Challenge #4:Unlocking the data capital of Connected Manufacturing with Blockchain, AI and other future tech

The technologies coming into play today have the potential to solve some of the intractable problems customers have been wrestling with for decades. For instance, Blockchain (or Distributed Ledger Technology) is helping to solve how we transfer a digital asset between two peers intelligently and securely without an intermediary.

The competencies and functions of robots are reimagining a whole suite of jobs as automation displaces and disrupts human labor. Artificial Intelligence and Machine Learning are evolving from recognition intelligence (simply identifying patterns) to cognitive intelligence (making inferences from data).

Virtual and Augmented Reality (VR and AR) are

enabling a fundamental shift in information presentation

from “representative” media to “experiential” media.

However, these technologies are already intersecting and interacting

with powerful demographic, economic and cultural forces. While firms’ reluctance

to digitize and automate to the detriment of the human workforce is understandable, manufacturing has always been a technology-based business – the fourth industrial

revolution, like the three before it, demands a co-evolution of human workers and manufacturing operations, in which people and machines work not just side-by-side but interactively and collaboratively.

Manufacturers are challenged with removing the fear of job loss, redeploying existing skills into more worthwhile efforts and getting the company as a whole to embrace digitization.

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Challenge #5:Securing the Smart Factory

Solution:A multi-layered approach to securityWith cyber security standards an increasingly necessary aspect of business readiness in order to trade, you will need to focus on a multi-layered security approach that reduces platform vulnerabilities, protects data, and incorporates device and network security intelligence.

Transforming your security strategy will allow your security team to shift from a defensive posture to becoming advocates

of the possible. IT and OT security should not be a collection of siloed activities but rather a mechanism with many moving parts that provide the real-time threat detection, business context, and management needed to keep valuable assets safe without inhibiting innovation. This approach is built on three pillars:

5,6 EEF Cyber Report 2018

Quantifying the operational and commercial implications of security breaches can inform your development of risk-mitigating security strategies that work both to prevent attacks and respond and resolve incidents quickly when they occur.

Source: Dell Technologies

Manufacturing is a significant target for cyber-criminals, with almost half of firms in the sector having already been subject to a cyber-attack and 24% admitting they had sustained financial or other business losses due to an attack5. A breach can result in the theft of sensitive data, disruption of access to systems or operational technology, or industrial espionage for competitive advantage.

The proliferation of connected ‘things’ makes cyber security a commercial imperative; 59% of manufacturers report that they have been asked by a customer to demonstrate the robustness of their cyber security processes, and a similar proportion (58%) have asked the same of a business within their supply chain6.

The smart factory is event-centric, continuously sensing, adapting, learning and even allowing systems to act autonomously. Customers exploiting the potential of advanced analytics, collaborative platforms and IIoT technologies therefore need to consider the security and risk infrastructure that supports this kind of innovation. Learn More About

OEM Security Solutions

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Challenge #6: Finance and access to viable payment models

Solution: Financing with a technology provider

One of the biggest barriers to the adoption of smart manufacturing technology for OEMs is the cost

associated with upgrading or plugging gaps in the underlying physical infrastructure. Manufacturers need

to enable and link legacy hardware to new software so they can talk to each other non-disruptively. While

the price of storage, processors and sensors is declining, IT modernization can still be an expensive pre-requisite to the potential ROI to be gained from

more innovative projects involving the Industrial Internet of Things, analytics, artificial intelligence and machine learning, and robotics. Yet if we look at the digitally-native, up-and-coming businesses that are overtaking established incumbents at a

startling rate, they tend to have a common denominator: access over ownership.

*Source: Forrester Research/IDC Pay Per Use Survey, Dell Financial Services 2018

Financing technology investments plays a vital role in propelling infrastructure modernization, rather than tying up credit lines in depreciating assets, and ‘Pay As You Go’ is becoming the de facto model for IT investments. The vast majority (85%) of businesses want to use financing when making technology purchase decisions, and 79%* look for all-in-one, pay-per-use bundles that include hardware, software, services and maintenance.

These advantages can only be gained by financing with a technology partner - rather than through traditional banks and lenders - who can combine technical knowledge with financing acumen, and speak the CFO’s language of consistency, efficiency and risk management.

Acquiring the latest IT solutions shouldn’t be complicated. With Dell Financial Services, you can lease and purchase easily.Learn More

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There are various forms of leases, loans and custom payment structures available to help you adopt flexible consumption-based IT models that turn Capex into Opex, allowing customers to remove technical debt while modernizing their IT infrastructure. The benefits of such payment solutions include:

• Lower total cost of ownership.

• Increased operational efficiency.

• Simplified budgeting by consolidating payments with a single financial partner.

• Retaining budgetary flexibility while preserving credit lines.

• Faster ROI by acquiring assets up front with payments that scale to match forecast business growth.

• An opportunity to establish a pay-per-use environment across the entire IT infrastructure.

Shifting from Capex to Opex for agility

Emerson has excelled at serving customers in the process control industry for well over 100 years. They’re one of the companies that was doing IoT long before it was even coined as a term. And a significant part of Emerson’s business is selling these huge industrial valves to chemical plants and oil refineries, and if one of these valves fails, really bad things can happen. Historically customers have sent workers to regularly inspect this equipment and look for anomalies, but of course scheduled inspection maintenance is often not only an unnecessary expense, but also this equipment is located in harsh conditions. So it’s not really pleasant or safe for workers to continually go into these environments. To meet this challenge, Emerson needed to quickly develop and deploy a scalable industrial automation solution that collects IoT data to help customers better manage and troubleshoot control valves.

Emerson worked with Dell Technologies OEM and IoT Solutions to develop a new wireless valve monitoring solution. The solution collects information from digital valve controllers and sends it through a Dell Edge Gateway to the cloud. The Dell Edge Gateway is an IoT gateway device that aggregates, analyzes, secures, processes and shares sensor data at the edge of a network.

Through its partnership with Dell OEM, Emerson can bring its control valve condition monitoring service to market quickly and spend more time developing new products and services because it is depending on the expertise of Dell OEM and the reliability of the Dell Edge Gateway.

Source: Dell Technologies Customer Stories

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Challenge #7: Building sustainable solutions

Solution:Move to a circular supply chain design

Linear supply chains consume materials, move products from manufacturing, distribution and selling, then typically products are discarded at the end of their useful or desirable life, mostly to end up in landfill. In recent years, there has been a discernible shift in the mindset of large operations when it comes to corporate social responsibility, from resource stewardship to ethical governance. For example, a growing proportion of businesses are holding suppliers responsible for the ethical treatment of workers, in some cases two or three tiers upstream.

There are multiple reasons why companies pursue such strategies, from an altruistic motive to do right by the environment and society, to bowing to public or government pressure, and the commercial desire for continued differentiation in competitive markets. But how can manufacturers move beyond mere regulatory compliance and waste minimization initiatives to a lifecycle-based approach built on understanding the total impact of products and operations across the entire value chain?

A circular economy is an model that decouples the ability to achieve economic growth from the consumption of natural resources; a circular supply chain keeps resources in use for as long as possible before regenerating them at the end of each service life.

In this way, outputs ultimately become inputs because goods don’t end their life with their customers, but are fed back into the supply chain. It’s no coincidence that the world’s leading supply chains run ethical and sustainable operations based on supply chains that are circular, rather than linear.

For example, to extend the useful life of existing products, manufacturers can take a product-to-service approach by designing solutions that enable modular innovation – such as over-the-air updates to firmware – or by embedding sensors to enable intelligent performance monitoring. Many products that contain a large proportion of resources such as plastics can employ recycled materials recovered from customers’ old products if they enable and encourage them to be returned at end of life (indeed, this is an option Dell promotes within our flexible consumption-based IT models). A digital supply chain is a prerequisite to co-ordinate all the moving parts such a circular supply chain demands in real-time.

We ship over 200,000 orders a day - providing enough product to fill one and a half 747 jumbo jets with the computers, storage and server products we build and our customers require. Building these products requires thousands of components that come to us through a complex supply chain made up of Dell-owned and outsourced manufacturing factories, third-party suppliers and even our suppliers’ suppliers. This adds up to one of the largest supply chains in the world and allows us to reach, service and support customers globally. It also comes with a responsibility to have a positive impact on the communities in which we operate. As Dell has evolved, so has our approach to sustainability and our supply chain, with efforts focused on innovative practices that create shared value beyond the bottom line. Source: Dell Legacy of Good

Read How Dell is Building a Diverse, Responsible and Resilient Supply Chain ›

Find Out How We’re Doing it

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A practical pathway to enabling the future of Connected ManufacturingThe connected manufacturer is networked, agile and automated.

Manufacturing companies need to combine the power of operational (OT) and informational technology (IT). The two have traditionally existed worlds apart – IT was confined to the office and data center while OT drove the machinery and dominated the industrial environment. In the converging world of manufacturing, we are increasingly seeing IT compute, storage and secure networking installed close to OT equipment and devices on the factory floor. In the meantime, OT is finding new ways to access data, closer to where it is created, before analyzing and moving it to where it can deliver the highest business value. The focus is on unlocking information and gaining new insights into your business while ensuring security. Knowledge is power.

As a solution builder, you can help your manufacturing customers realize these benefits. Partner with Dell Technologies OEM & IoT Solutions and its broad partner network to deliver Next Gen solutions, built on tier one infrastructure and supported by world-class services. We can help you deliver applications from the device to the data center

and beyond, regardless of complexity, environment or scale. We can also help you embrace emerging, agile technologies. Remember, those who innovate fast will stand out from the competition and drive real results.

We know that many of our customers, particularly in manufacturing, already have intelligent and high cost compute environments in place. In the past, these customers were locked into paying annual licensing fees to vendors for additional services, like predictive maintenance on a rolling production line. Now, using a standard rather than a vendor-specific compute device, customers are in the driving seat, controlling what they want to add and how they go about it. An open-standards edge device also delivers flexibility in terms of what can be connected.

The good news is that you do not have to rip and replace. Thanks to edge computing and open platforms from companies like Dell Technologies, customers can integrate and blend the old and new together to future proof their investment.

Accomplish your vision with our portfolio and expertise.

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The journey to Industry 4.0 starts with a clear roadmap

Before embarking on a digital transformation journey, prepare. Articulate your vision, understand your objectives, and partner with the right advisor, who can support you on the technology front. The most successful companies avoid doing everything themselves – they take advantage of the knowledge, expertise and capabilities of other experts. Engage with partners like Dell Technologies OEM & IoT, who can support you in driving a broad set of outcomes.  We can help you co-design and co-develop the appropriate solution that will scale as you grow, help you select the right compute power, customize the infrastructure to optimally run your IP and certify it to industry standards. Beyond co-engineering, system customization and certification, we also offer ruggedized systems for punishing environments, long lifecycle products with managed product transitions, global support plus manufacturing expertise through a great range of partners.

Let Dell Technologies OEM & IoT augment your product development team and open up the possibilities available from the Dell Technologies family.

Tip from the Dell Technologies OEM & IoT team: Involve everyone... but don’t try to do everything

Follow your goal – whether that is improving efficiency, modernizing the underlying operating model, or laying the foundation for an entirely new business model. Do not adopt a technology and look for problems for it to solve – rather, identify a problem or opportunity first, define specific and measurable criteria around achieving your business goal, monitor your progress, and drive change in a structured way.

Adopt a holistic yet realistic approach. Investments in the smart factory should be coordinated centrally through a structured test-and-learn program that encourages exploration but not endless experimentation. Talk to other customers, who have successfully undergone digital transformation. Visit our Customer Solution Centers, review our fully tested and implemented manufacturing blueprints for inspiration, whiteboard and test your solution in a simulated environment. This gives you a no-risk way to see what digitization can accomplish.

“PowerEdge servers and Precision workstations have been integrated into central automation and control rooms (now called the “Core”) to collect data. In contrast, the factory floor (now known as the “Edge”) was traditionally characterized by proprietary hardware and software solutions. Dell’s OEM solutions are geared to operate in the harshest of environments and deliver transformational benefits.”Dermot O’Connell, Executive Director and General Manager, Dell Technologies OEM Solutions EMEA

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About Dell Technologies

Technology now has the single greatest impact on an organization’s ability to react, innovate and succeed. Today’s industry leaders have embraced this, and literally transformed their organizations. Of course, everyone uses technology to transform in different ways, but we believe customers can take four approaches to ensure success: Digital Transformation, IT Transformation, Workforce Transformation, and Security Transformation. Whatever approach they take, companies of all sizes have gained new capabilities, new value and new competitive advantages that have changed the game.

The fastest-growing companies are undergoing Digital Transformation: they are enabling themselves to use and monetize the power of software, data analytics, IoT,

and artificial intelligence. Digitally driven businesses aren’t just the new normal; they’re the new mandatory.

Digital Transformation

IT Transformation

Transforming your IT comes down to modernizing your infrastructure so that it can support highly automated processes. Achieving this enables very fast delivery of

technology services to your own organization as well as your customers. The result is that your IT department transforms from being a cost center to a profit center.

Workforce Transformation

People expect technology to help them get more done faster and collaborate in a natural, seamless way. It’s what’s required for organizations to compete and succeed.

You can do more than keep up with this exciting trend. You can lead it.

One of the biggest accelerators – and roadblocks – to growth is the ability to protect and secure growing amounts of critical data. Security Transformation helps you

address this with solutions that are resilient, adaptable and unified. This frees you to focus on what matters most – your business.

Security Transformation

Explore Digital Transformation ›

Explore IT Transformation ›

Explore Workforce Transformation ›

Explore Security Transformation ›

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Copyright © 2019. All Rights Reserved.Dell, Dell EMC, Pivotal, RSA, Secureworks, Virtustream, VMware and the Dell Technologies logo are trademarks of Dell Technologies in the United States and/or other jurisdictions. Intel and the Intel logo

are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries. All other marks and names mentioned herein may be trademarks of their respective companies.

The power of 7 technology leaders committed to your transformation

Technology now has the single greatest impact on an organization’s ability to react, innovate and succeed. Today’s industry leaders have embraced this, and literally

transformed their organizations. Of course, everyone uses technology to transform in different ways, but we believe customers can take four strategic and parallel

approaches to ensure success:

Download an Offline Version of This Guide:

Security TransformationWorkforce Transformation

IT TransformationDigital Transformation

for Windows for Mac

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