Mike Holtkamp Digitalization Account Executive Siemens · 2018-11-01 · in areas such as data analytics, avionics, actuation and additive manufacturing—high-value work that benefits

Breakfast Keynote

Mike HoltkampDigitalization Account Executive

Siemens

Industry 4.0Leading the Next Industrial

Revolution

© Siemens AG 2017

April 2017Page 6 siemens.com

© Siemens AG 2017


The Founders of Sears

• Richard Sears

• Alvah Roebuck

• Born 12/3/1863 and 1/4/1864

• Founded Sears & Roebuck 1886

© Siemens AG 2017


Innovation Transforming Commerce in the U.S.

Time was right for mail order merchandise:

Homestead Act of 1862: westward expansion followed growth of

railroads

Postal system permitted the classification of mail order publications

as “aids in the dissemination of knowledge” entitling the catalogue to

a postal rate of 1 cent per pound

Rural Free Delivery in 1896 made distribution economical

Rapid pace of innovations:

Advertised “lowest prices, best values”

Added Spring and Fall editions and color sections

Offered cloth bound books as a cheap alternative to hardbound

Continual expansion to wide variety of goods

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The Old Chicago Main Post Office

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The end of an era . . .

The last Sears Catalogue was released in 1993

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J.P. Jorgenson

• Born Jan 12, 1964 in Albuquerque, NM

• Graduated Phi Beta Kappa from Princeton

Cadabra / Cadaver

Makeitso.com

AARD.com

Awake.com

Browse.com

Bookmall.com

Relentless.com

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Wall Street Journal

Thursday Aug 25, 2017

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The Old Chicago Main Post Office

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Chicago Bids on New Amazon Headquarters

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From Yellow Pages … From taxi …

From record store …

New business models in the internet age

are disrupting complete markets

… to ride sharing… to marketplace

… to e-book … to streaming

From bookstore …

© Siemens AG 2017


Digital Enterprise Account Executive

35 years in Power, Automation & Digitalization (Westinghouse, Siemens)

BSME (WVU), MA Bus. (SUNY), Add’l Training Smart Mfg. (MIT)

Work with small to large manufacturers & customers of all types

Mike Holtkamp

SIEMENS

377,000 employees, ~$100B in annual revenues,

Founded in 1847, business in 200 countries globally

$26M+ spent per day in R&D

$10B+ in last 10 years in acquisitions for Industry 4.0

© Siemens AG 2017


Achieving Digitalization / Business Transformation

“To survive disruption and thrive in the

digital era, incumbents need to become

digital enterprises, rethinking every

element of their business.”

Source: 2016 World Economic Forum

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- Pierre Nanterme

CEO Accenture

“Digital is the main reason just over half

of the companies on the Fortune 500

have disappeared since the year 2000.”

The Innovator’s Dilemma - Christensen

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Disrupt or Be Disrupted!

© Siemens AG 2017


Understanding Industry 4.0

What Does It Mean?

The term was introduced by the German government and Siemens at Hannover Messe in 2011.

“Industry 4.0 is a name for the current trend of automation & data exchange in manufacturing. It includes

cyber-physical systems, the Internet of things, cloud computing and cognitive computing.”

INFORMATION TECH

OPERATION TECH

Convergence Physical World Digital World

© Siemens AG 2017


The First Industrial Revolution

1800

First Industrial

Revolution

Use of mechanical

production with

the help of water

& steam power.

First mechanical

loom, 1784

1900

Second Industrial

Revolution

Introduction of

division of labor &

mass production using

electrical energy.

Assembly line

slaughterhouses, 1870

2000

Third Industrial

Revolution

Use of control systems

and IT begin to automate

the factory floor.

Siemens launches

the SIMATIC name

1958, first PLC 1969.

Fourth Industrial

Revolution

Introduction of cyber

physical twins, 3D

printing, cloud computing.

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi8zviCxpfcAhXFV98KHfANB5gQjRx6BAgBEAU&url=https://www.siemens.com/global/en/home/company/about/history/history-features/60-years-of-simatic.html&psig=AOvVaw2X7PN9SfrVXdvEUfjjwgNm&ust=1531415646914393

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjsiMfJyJfcAhVGJt8KHY_TAtcQjRx6BAgBEAU&url=https://www.cimdata.com/en/news/item/9012-siemens-plm-software-the-actionable-holistic-digital-twin-commentary&psig=AOvVaw2rkUFSrm3BTcj9ejTBD0kf&ust=1531416230727899

© Siemens AG 2017


The Second Industrial Revolution

1800

First Industrial

Revolution

Use of mechanical

production with

the help of water

& steam power.

First mechanical

loom, 1784

1900

Second Industrial

Revolution

Introduction of

division of labor &


electrical energy.

Assembly line


2000

Third Industrial

Revolution



the factory floor.

Siemens launches

the SIMATIC name

1958, first PLC 1969.

Fourth Industrial

Revolution


physical twins, 3D




© Siemens AG 2017


The Third Industrial Revolution

1800

First Industrial

Revolution

Use of mechanical

production with

the help of water

& steam power.

First mechanical

loom, 1784

1900

Second Industrial

Revolution

Introduction of

division of labor &


electrical energy.

Assembly line


2000

Third Industrial

Revolution



the factory floor.

Siemens launches the

SIMATIC name 1958,

first PLC 1969.

Fourth Industrial

Revolution


physical twins, 3D




© Siemens AG 2017


The Fourth Industrial Revolution – Industry 4.0

1800

First Industrial

Revolution

Use of mechanical

production with

the help of water

& steam power.

First mechanical

loom, 1784

1900

Second Industrial

Revolution

Introduction of

division of labor &


electrical energy.

Assembly line


2000

Third Industrial

Revolution



the factory floor.

Siemens launches

the SIMATIC name

1958, first PLC 1969.

Fourth Industrial

Revolution


physical twins, 3D




© Siemens AG 2017



What Are the Drivers?

• Companies are using more complex, worldwide supply chains and data networks in their operations.

• Physical connectivity is being replaced with digital links — many of which are stored in the cloud.

• Greater international collaboration is possible. Using cloud-based software, any staff member in any

geographical location can contribute to a design.

• Cheap data storage and transfer will increase the decentralization and flexibility for businesses.

1990

800 times as much data

for less than 2 tenths of

one percent of the price!

© Siemens AG 2017



What Are the Impacts?

• Companies must now compete on a global scale; cannot rely on their physical location to win business.

• Companies must focus on meeting ever-changing consumer demands requiring flexible manufacturing

and production flexible.

• Industry 4.0 requires changing the workforce and increasing the ease of access to services.

© Siemens AG 2017


Our customers have essential requirements –

throughout the manufacturing industry

Security

Speed Flexibility Quality Efficiency

© Siemens AG 2017


Demographic change

Urbanization

Climate change

Nationalization

Five Megatrends shaping our world

Digital transformation

Trend to bring

investment back

Growing and aging

population

Cities as main driver

of GDP growth

Global warming and

weather extremes

Contribution to global GDP growth,

2007-20253, in %

World population1, in bn Annual mean temperature

variations 1950-20142 (in °C)

Connected devices5, in bn

-0.3

0

0.3

1950 1970 1990 2010

0.3

-0.3

Other cities

and rural areas38%

Cities >10mn

5mn – 10mn

2mn – 5mn

150k – 2mn

50

23

9

2012 20202016

Exponential

growth of

connected

devices ...

… and

digital data6

2.8 ZB40.0

ZBZB = Zettabytes = 109 Terabytes

9.00

0.161.92 0.83

6.10

0.12

2015

1.25 -0.010.00 1.36

2050

Developing

countries

Industrial

countries15-65

65+

0-14

20152009 20132011

-19%

+14%

Imports vs. GDP4)

FDIs total5)

1) UN World Population Prospects (2012) | 2) Met Office Hadley Centre observations (2014) | 3) McKinsey Global Institute Cityscope (2011) | 4) UNCTAD: Import Flow merchandise: Total trade and share / GDP

| 5) 2008-2014: UN Conference on Trade and Development: FDI inward flow ; 2015: UNCTAD Global Investment Trends Monitor No.22

| 6) Cisco: The Internet of Everything (2013) | 7) IDC: The Digital Universe (2012)

© Siemens AG 2017


Understanding the Needs of Modern Manufacturing

What Do The Customers Say

“We are aggressively reducing costs and reallocating capital to the

products and markets with the highest potential for growth and

returns. As we improve the efficiency and focus of our business for

today, we also are accelerating our efforts to be a leader in the smart

vehicles and mobility services of tomorrow.”

“We took steps to strengthen our capabilities

in areas such as data analytics, avionics, actuation

and additive manufacturing—high-value work that

benefits from our internal expertise and global scale.”

Competition is intensifying and consumers’ expectations are shifting.

Likewise, digital disruption is reshaping how consumers connect and

communicate, buy products, and engage with companies. We are

anticipating these changes and responding to them with a healthy sense

of urgency, setting an agile course for the future.

http://corporate.ford.com/homepage.html

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjZwLbUx7rbAhVsuVkKHTciBOQQjRx6BAgBEAU&url=http://www.wccbcharlotte.com/2016/03/30/boeing-is-cutting-4000-jobs/boeing-logo/&psig=AOvVaw1Q6fUnQoz9DfauVPH2ybaf&ust=1528220634701248

© Siemens AG 2017


Understanding the Needs of Modern Manufacturing

Terms You Will Hear

Lean Manufacturing

AGV

IIoT

MES

AM

Predictive Analytics

Virtualization

Real Time Capability

Big Data

“If all you have is a hammer, everything looks like a nail."

Abraham Maslow

© Siemens AG 2017


Digitalizationchanges

everything

© Siemens AG 2017


Change is Inevitable, Success is Not

Digital Darwinism is a significant threat

“More than 50% of companies that attempt

to move to a digital model will fail.”

Source: John Chambers, McKinsey & Company Report

March 2016

© Siemens AG 2017


Why will these Companies Fail?

• Digital is not central to their corporate strategy

• They perceive digital only as a tool for incremental efficiency gains

• Companies invest in the latest point solutions or siloed digital technologies

and fail to work horizontally (“localized optimization”)

• They do not drive the necessary cultural changes for success

ServicesProduction

execution

Production

engineering

Production

planning

Product

design

© Siemens AG 2017


Technological forces transforming industry

Changing the way

products are realized

Advanced

robotics

Additive

manufacturing

Intelligent

automation

Changing the way

products come to life

System of

systems

Intelligent

models

Generative

design

Changing the way

products evolve

Knowledge

automation

Big data

analytics

Cloud

ecosystems

© Siemens AG 2017


Manufacturers must embrace the technologies

and transform their business into a digital enterprise …

Advanced

robotics

Additive

manufacturing

Intelligent

automation

Systems of

systems

Intelligent

models

Generative

design

Knowledge

automation

Big data

analytics

Cloud

ecosystems

Ideation UtilizationRealization

© Siemens AG 2017


Digital Twin

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

feed back insights to continuously optimize product and production

MindSphere

© Siemens AG 2017


Digital Twin

Digital Twin of

the product

Digital Twin of

the production

Digital Twin of

the performance

MindSphere

One integrated data model

© Siemens AG 2017


We embrace digitalization in our own operations

1 per second 99.9985%

A growing portfolio of

1300 products

We produce more than 1

million products per month –

one per second.

digitally designed for

60,000 different

customers.

Quality level of

or 10.5 defects per

million.

Speed Flexibility Quality

© Siemens AG 2017


30% shorter

development time

More than 70,000combinations

available

3 times more

cars produced

With Siemens’ integrated technologies, Maserati reduced

development time while increasing production output

© Siemens AG 2017


MachineSense

Power Analyzer Component Analyzer

Vacuum Pump Analyzer

Power Analyzer measures

and tracks: Avg. 3-phase voltage

Avg. 3-phase current

Power factor

Active “working” power

Power waveforms

Cumulative active energy

Ground faults

Power quality harmonic distortion

for current & voltage

All values needed for energy

optimization

Reports phase imbalance

Machine on-time

Measures and predicts: Filter condition

Vacuum analytics

Oil condition

Bearing condition

Pump Health

Measures and predicts: Filter condition

Vacuum analytics

Oil condition

Bearing condition

Pump Health

© Siemens AG 2017


Air Curtain App

Control of air curtains from a smartphone.

• Allows users to:

Program their Berner Air Curtain

Change settings

Monitor usage

.

© Siemens AG 2017


Digitalization Can Introduce Uncertainty

How will digitalization

impact my business?

Will new digital players go after

my core business?How can I create

business value from digital

technologies?

Do I have the right

business

partner to guide

and support my

decisions?

How do I develop the

new skills needed

to lead the digital

transformation?

How can I create

new Business

Models from

digitalization?

CUSTOMER SUPPLIER

Where is my roadmap to lead my

product development?

How can I align my

business for things

like successful

co-creation?

How can I move

from a product

based model

to a value

based

model?

How can I create thrive in

Industry 4.0?

© Siemens AG 2017


How Can Industry 4.0 Help Me?

Some things we know…

• New business models can create new revenue streams

• Digitalization addresses many challenges of today

(…and the ones you haven't thought of yet…)

• Elevates you among suppliers

• Industry 4.0 is not going away

© Siemens AG 2017


Industry 4.0

Next Steps - General

• Keep an open mind

• Talk to others

• Accept that it is a journey

• Embrace the Culture of Change

• “Evolution not Revolution”

• Understand the “Road Map”

“The journey of a thousand miles begins with but a single step.”

Lao Tzu“We’re lost… but we’re making good time”

Thank you.

siemens.com© Siemens AG 2017

Closing Remarks

Mike HoltkampDigitalization Account Executive

Siemens

Industry 4.0Leading the Next Industrial

Revolution

© Siemens AG 2017


Digitalizationchanges

everything

© Siemens AG 2017


Industry 4.0

Next Steps - Specific

• Identify current system capabilities & gaps

• Make sure you fully understand and can document the current

business processes

• Leverage proven critical analysis methodologies to conduct

workshops and perform benchmarking

• Develop a full digital architecture and desired data flow

• Define future investments based upon the road map

• Prioritize investment

© Siemens AG 2017


Now is the time to realize the

Digital Enterpriseand your opportunity to lead the next

Industrial Revolution

Thank you.

siemens.com© Siemens AG 2017

© Siemens AG 2017


Documents

Mike Holtkamp Digitalization Account Executive Siemens · 2018-11-01 · in areas such as data analytics, avionics, actuation and additive manufacturing—high-value work that benefits