DIGITIZATION AND INDUSTRIAL INNOVATION
Howard HeppelmannPTC
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PTC IS A GLOBAL SOFTWARE TECHNOLOGY COMPANY
NEW HQ: BOSTON SEAPORT REVENUE BY VERTICAL
FAST FACTS
GEOGRAPHIC COVERAGE
Life Sciences5%
Industrial Products
31%
Federal, Aerospac& Defense
16%
Electronics& High Tech
18%
Automotive14%
Retail & Consumer
7%
Other9%
BRANDS
Americas42%
Europe37% Asia Pacific
21%
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CONVERGENCE OF PHYSICAL AND DIGITAL
Smart Product
Smart, Connected Product
AutomationSystem
Connected System
SmartFactory
Supply ChainSystem
Manufacturing Execution
System
Distribution System
System Of SystemsProduct
CAD/3DP/PLM ALM SLM IOT AR/VR I4.0
4CONFIDENTIAL – NOT FOR DISTRIBUTION - COPYRIGHT 2017 © MICHAEL E. PORTER AND JIM HEPPELMANN
WAVES OF IT-DRIVEN COMPETITION
1800s 1960s 1990s 2010s
Mechanical Products & Manual Processes
Value Chain Automation
Value Chain Dispersion and Integration
Smart, Connected Products (IoT)
IT automates processes and
information collection of
activities in the value chain
The internet enables coordination and integration acrossthe value-chain,
across geography, and with customers
and business partners
IT is embedded in products themselves,expanding the way
products create value and shifting the nature of competition
Products are mechanical/ electrical and information processing is performed manually
Digital information is delivered to people in 3D and in context,
changing how humans interact with smart products and
environments
Augmented Reality (AR)
November 2014 October 2015 November 2017
2015s
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TECHNOLOGY - FROM A PLACE TO A PACE
How we live How we work How we get around How we buy
How we innovate How we produce How we operate How we serviceThe definition of “Value ChainHow we generate and consume information
Everything Is Changing - At an Exponential Rate
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OPERATIONS TECHNOLOGY - FROM A PLACE TO A PACEIndividually impactful, collectively & synergistically disruptive
IOT (IT / OT Connectivity)
Digital Technology Platforms
Machine Learning / AI
Additive Manufacturing
Augmented Reality
Robotics
Digital Twin
Everything is Changing … at an exponential rate
Agile Methodologies
How we design for manufacturability
How we train the workforce
How we capture, analyze & use data
How we ensure quality
How we automate
How we continuously improve
How we deliver work instructions…
1
2
3
4
5
.
.
.
Current
L3 Production Execution(MES / MOM)
L2 Process Monitoring(HMI-SCADA)
L1Process Sensing,
Manipulating(PLC)
L4/L5
Business Systems(ERP, SCM, PLM)
Governance & planning
ISA-95
SUPPLIERS ENVIRONMENTALLOGISTICS IOT GATEWAY
%
• Disparate equipment & data
• Unique structures of data
• Production sensitive networks
• Rigid systems - costly to evolve
• Rip and Replace Innovation
Current
L3 Production Execution(MES / MOM)
L2 Process Monitoring(HMI-SCADA)
L1Process Sensing,
Manipulating(PLC)
L4/L5
Business Systems(ERP, SCM, PLM)
Governance & planning
ISA-95
Break-Thru Solutions
PLANT & CORP.MANAGEMENT MAINTENANCE QUALITY OPERATORS
• Connected
• Real-time
• Role-based
• Predictive / Prescriptive
• Mobile & augmented
• Wrap and extend Innovation
Industrial Innovation Platform
Innovation Platform
Source
SUPPLIERS ENVIRONMENTALLOGISTICS IOT GATEWAY
%
1 – DIGITAL TECHNOLGOY PLATFORMS (INDUSRTRIAL INNOVATION PLATFORM)
Contextualize
Synthesize
Orchestrate
Engage
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FLOWSERVE VIDEO
1 – DIGITAL TECHNOLOGY PLATFORM
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1 - ANSYS SIMULATION
SOURCE CONTEXTUALIZE SYNTHESIZE ORCHESTRATE ENGAGE
1 - DIGITAL TECHNOLOGY PLATFORM IN ACTION
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2 - MACHINE LEARNING/AI TO REDUCE UNPLANNED DOWNTIME
Predicting alarms 24 hours in advance, with a 91% accuracy
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3 - IOT MEETS ADDITIVE MANUFACTURING AT e.GO MOBILE AG
:24
2:04
15
ProductDevelopment
Manufacturing Operations Logistics Marketing
& Sales Service HumanResources
N = 107. Average of 2.3 functional areas chosen per respondent.
18%17% 17% 14% 19% 13%
Collaborative Design Review
Digital Design Review
Maintenance Work Instructions
Operator & Assembly Work
Instructions
Virtual Product Companions
Augmented Brand Experience
Augmented Operator Manual
Head-upDisplay
Service Manual Instructions
Service Inspection & Verification
Job Specific Training
Safety & Security Training
Retail Space Optimization
Augmented Interface
RemoteExpertise
ExpertCoaching
4 - AUGMENTED REALITY – INDUSTRIAL APPLICATIONS
DATA GROWTH*(ZETTABYTES)
* IDC's Digital Universe study, 2014
20134.4
20158.5
201716.4
202044.0
4 - THE DELUGE OF DATA
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4 - SEPARATE PHYSICAL DIGITAL EXPERIENCE
Separated Physical & Digital Worlds
Mentally understanding GPS images and then transposing them onto the road ahead is demanding and prone to
errors.
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4 - CONVERGED PHYSICAL DIGITAL EXPERIENCE FOR HUMANS
Converged Worlds
AR speeds humans ability to absorb and act on digital information by putting it in
context of the physical world.
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4 - WHY EVERY ORGANIZATION NEEDS AN AUGMENTED REALITY STRATEGY
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4 - MACHINE LEARNING MEETS AR TO REDUCE DOWNTIME AND IMPROVE WORKFORCE EFFICIENCY
“Large German automotive manufacturer reduces downtime loss by over 40K euros per minute, upon implementing predictive maintenance and augmented reality”.
21CONFIDENTIAL – NOT FOR DISTRIBUTION - COPYRIGHT 2017 © MICHAEL E. PORTER AND JIM HEPPELMANN
LOGISTICS
DHL is using AR to track pick lists and guide workers through the warehouse
to the location of each product to be packed.
Value Metrics• Reduced errors
• More engaged workers• Productivity improved by 25%
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Enabling Timely Data Driven DecisionsAgile in the Factory: Time to value with short innovation sprints
5 - AGILE METHODOLOGIES
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Digital ManufacturingA Journey of Transformation
Continuously assess how today’s technology forces unlock innovation to optimize agility, cost, quality and workforce safety and efficiency
DigitalThread
PredictiveAnalytics
UNDERSTAND
ADVANCE
OUTPERFORMPerformance
BenchmarkingSynchronized Operations
AgileInnovation
AR EnabledOperations
TODAY
Unified Connectivity
Operational Intelligence
Real-Time Issue Identification
Supply ChainVisibility
Prescriptive Analytics
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CLOSING THOUGHTS
What if….? …we had unified real-time visibility to factory operations?
…we knew the health status of every asset enabling our operations and how much time we had to fix it?
…we could predict quality issues before they appeared?
…we could deliver information to our workforce in a way that makes them more flexible, more productive, yields dramatic quality improvements while reducing training costs?
…we had the capability to efficiently create and deploy digitally enabled processes linking humans, production machinery, robots and business systems?
…we could deliver a continuous stream of operational innovation with minimal risk to production in cycles measured in weeks?
…
PHYSICALWORLD
DIGITALWORLD
DIGITIZATION AND INDUSTRIAL INNOVATION
Howard HeppelmannPTC