Actyx. Making the European Mittelstand Digital Industry Pioneers

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Making the European Mittelstand

Digital Industry pioneers

2.0.3

21/09/15

Public

Slide 2© Actyx. All Rights Reserved.

Why is it important?

Digital Industry (or Industry 4.0 or Industrial Internet)


A backbone of the European economy

the highly-successful manufacturing Mittelstand

that through generations of continuous innovation

has developed the best processes and products and

kept the competition at bay on a global scale

is under threat by digitalization!

Europe’s manufacturing future is in danger


With an impressive track record of redefining industries

Digitalization is a disruptive force

Retail:

Entertainment:

News:


Two examples from traditionally European industries

Manufacturing disruption has already started

New paradigm of intelligent material handling

© Wired

One of the most innovative cars in the world

© Niels de Wit from Lunteren

Automotive Intra-Logistics


Two possible outcome scenarios for Digital Industry

Disruption still a challenge for Europe

1) No disruption

• The Mittelstand successfully innovates• European manufacturing remains competitive• Established technology suppliers (Siemens, SAP, etc.) thrive

2) Disruption

• Is the Mittelstand taking enough initiative?• Will manufacturers prevail in a disruptively digital world?• Are technology suppliers providing digital base-technology?

Europe prepared

Challenge for Europe


Europe should become a Digital Industry pioneer:

Strengthening of the “Mittelstand”

Manufacture new generation smart products

Grow market-share in globalized world

Develop key digital expertise

Ensure sustainable success in the digital world

We must prepare. Let’s take the initiative!


What does Digital Industry mean for the manufacturing Mittelstand?


Smart products & services will be brought to market with smart factories

The Mittelstand will undergo a digital transformation

2

1 Smart Factories

Smart Products & Services

Digital Industry Solutions:

Real-TimeData

IntelligenceAlgorithms

Adaptive User Interfaces

ConnectedDevices

Connectivity and internet

technology

Smart sensors and actuators

(Private) cloud processing and

storage

Big-data analytics and artificial intelligence


Smart factories: simple and adaptive

A new paradigm built on connectivity and intelligence

Employees

Equipment

Processes

Old paradigm

ap

pli

ca

tio

ns

Data platform


Smart products and services: individualized and quickly brought to market

A new paradigm built on connectivity and intelligence

Employees

Equipment

Processes

ap

plic

atio

ns

ap

pli

ca

tio

ns

Data platform

Innovative and quickly brought to market

Smart, connected and updated

Rich and adaptive customer experience


The positive impact of smart factories and smart products & services

Digitalization is a huge opportunity

Complex

Rigid

Expensive

Simple

Adaptive

Cheap

Example:

Steel manufacturer HoeschHohenlimburg performed an innovation project improving vertical and horizontal integration of production and business systems.

100% Productivity increase

40% Reduction in maintenance

Traditional factories

SmartFactories

Source: “Industrie 4.0: Von Daten zum Wissen”, A. Burghardt u. P Kiradjiev, MachinenMarkt, August 2015


The positive impact of smart factories and smart products & services

Digitalization is a huge opportunity

Standardized

Static

Individualized

Adaptive

Example:

Schindler’s PORT technology combines connectivity (incl. LTE), machine learning, planning algorithms, sensors and more to reduce elevator wait- and downtimes.

50% Wait time reduction

22% Faster return to service

Traditional Products

& Services

SmartProduct & Services

Sources: “How Smart, Connected Products are Transforming Competition”,M. Porter et al., HBR, November 2014“Schindler & Verizon are Redefining Reliability with Connected Monitoring Solution, Schindler, May 2014


Actyx develops solutions to transform the European Mittelstand into Digital Industry pioneers


Employees

Equipment

Processes

ap

plic

atio

ns

ap

pli

ca

tio

ns

Data platform

Innovative and quickly brought to market

Smart, connected and updated

Rich and adaptive customer experience

Three areas where Actyx develops products

Smart product applicationsData platformsSmart factory applications1 2 3


Co-operative innovation projects instead of ivory-tower approaches

But these products cannot be developed in the lab

Actyx develops products in

co-operative (hand-in hand with manufacturers)

on-site (real-world application scenarios)

bottom-up (on the shop floor with on-site personnel)

explorative (agile development methodology)

innovation projects.

Manufacturer- Manufacturing expertise- Application scenario- Desire to innovate

Actyx- Digital talent- Agile development- Change management

Appendix: Detailed project approach and example


In co-operative innovation projects Actyx provides world-class digital talent:

Connectivity Internet of Things, LTE-based edge connectivity, security, QoS, …

Software Secure and reliable architectures, big-data management, visualization, …

Artificial Intelligence Analytics, machine learning, optimization, planning, …

The Actyx talent network:

Our competitive advantages: 1 digital talent

And more…


Strategy Consulting

Technical Consulting

ContractResearch

Strategic level

Process level

Technical level(shop-floor)

The Actyx co-operative approach transforms from the bottom

Our competitive advantages: 2 bottom-up approach


Oliver Stollmann (CEO)

Expertise in artificial intelligence, software, automation

ABB, Xerox PARC, Fraunhofer

Engineering Bachelor/Master from ETH Zurich

Maximilian Fischer (COO)

Co-Founder of HackZurich

Patent holder, Caltech, EPFL, Duke Univ.

Engineering Bachelor/Master from ETH Zurich

Advisors/supporters/angels:

Leading Industry 4.0 expert (Professor)

Leading Digital Industry consultant (Partner-level)

Experienced startup founder (with recent >1 Billion Euro exit)

And more through extensive network…

A technical team and great advisor network


Get in touch!

Oliver [email protected]

www.actyx.io

mailto:[email protected]?subject=Getting in touch regarding your slide deck

mailto:[email protected]?subject=Getting in touch regarding your slide deck

http://www.actyx.io/

http://www.actyx.io/


An example: digitally-enabled mass-customization of premium mattresses

Appendix: Co-operative innovation projects

Introduction

The goal of this appendix is to further detail Actyx’s co-operative innovation projects. The general project structure shown below is described in detail and accompanied by an exemplary case-study.

Example

In this fictitious exemplary case-study, a premium mattress manufacturer decided to work with Actyx to take first steps towards a digital transformation.

Note

Actyx’s co-operative innovation projects actually follow an agile methodology, meaning projects are not pre-planned such as in this example.

Hypothesis

Definition of project’s digital innovation

hypothesis

Connectivity

Establishment of base-enabler connectivity

Digital Potential

Identification of digital potential in

your business

Solution

Implementation of digitally-enabled

solution


Identification of digital potential

Co-operative innovation projects

In this phase the digital potential in the manufacturing partner’s business is identified. Based on status quo analysis, market trend identification, and the evaluation of potentially applicable digital enablers, digitalization hypothesis are developed.

Hypothesis ConnectivityDigital

PotentialSolution





Approach: Example:

Status quo analysis

Discussions with on-site personnel Analysis of production and business data Mapping of IT infrastructure …

Inventory and supply-chain inefficiencies Low overall equipment effectiveness (OEE) Limited product innovation and differentiation


PotentialSolution





Approach: Example:

Status quo analysis



Market trend identification

Customer preferences Material and labor costs Value networks …

Mass-customization Rich customer experiences Data from health- and fitness-trackers Health awareness (ex: back problems, mobility)


PotentialSolution





Approach: Example:

Status quo analysis






Digitalenablers

evaluation

Technology research Applicability and maturity analysis Cost evaluation …

Health data from smart devices Rich and interactive web-shops Intelligent product design algorithms Smart connected sensors and agile machinery


PotentialSolution





Approach: Example:

Status quo analysis






Digitalenablers

evaluation

Technology research Applicability and maturity analysis Cost evaluation …

Health data from smart devices Rich and interactive web-shops Intelligent product design algorithms Smart connected sensors and agile machinery

Digitalization hypothesis

development

Technological viability Risk and complexity assessment ROI estimates (where possible) …

Machine-learning for better supply-demand match Efficiency increase through supplier ERP-integration Individualized mattresses based on health-data Sleep-as-a-Service for hotels/motels


PotentialSolution


Definition of project hypothesis


In this phase developed digitalization hypotheses are analyzed in more detail regarding Return-on-Invest (ROI), feasibility, risk, implementation cost and duration, and impact. Based on this a project hypothesis is chosen and refined and the project continuation specified.


PotentialSolution





Approach: Example:

In depth analysis

In depth analysis of digitalization hypotheses based on:

Return-on-Invest (ROI) estimates

Feasibility and risk

Implementation cost and duration

Impact estimates

Data-centric tools including modelling and simulation may be leveraged.

In-depth analysis of digitalization hypotheses: Individualized mattresses based on health-data Efficiency increase through supplier ERP-integration Machine-learning for better supply-demand match Sleep-as-a-Service for hotels/motels


PotentialSolution





Approach: Example:

In depth analysis





Impact estimates



Ranking and choice

Based on the results of the in-depth analysis, overall business strategy, resource availability, etc., the hypothesis are ranked according to the manufacturing partner’s preferences and a project hypothesis is chosen.

1. Individualized mattresses based on health-data

2. Efficiency increase through supplier ERP-integration

3. Machine-learning for better supply-demand match

4. Sleep-as-a-Service for hotels/motels


PotentialSolution





Approach: Example:

In depth analysis





Impact estimates



Ranking and choice

Based on the results of the in-depth analysis, overall business strategy, resource availability, etc., the hypothesis are ranked according to the manufacturing partner’s preferences and a project hypothesis is chosen.

1. Individualized mattresses based on health-data

2. Efficiency increase through supplier ERP-integration

3. Machine-learning for better supply-demand match

4. Sleep-as-a-Service for hotels/motels

Refinement of the project

hypothesis and

continuation

The project’s key hypothesis is refined, and the project’s continuation (scope, resources, focus) defined:

In-depth hypothesis specification

Project goals, scope, resources, and focus

Application sites (factory, cell, value network, etc.)

Hypothesis: we can define a new market of highly individualized mattress through data-driven customization, a rich and interactive customer experience and adaptive manufacturing technology. Project continuation: 1-year, 4-experts, 6-developers, etc.


PotentialSolution


Establishing connectivity


In this phase the base enabler of digital industry, connectivity, will be established. The project vision’s connectivity and data requirements will be specified, suitable technologies identified and deployed at the project’s application site. This step provides the basis for the solution implementation, and, as a by-product, provides decision makers valuable data-based transparency.


PotentialSolution





Approach: Example:

Connectivity and data

requirementspecification

Connectivity and data requirements will be specified according to the project hypothesis, including: Data sources and schemas Parameter specification Saftey, Security and Quality-of-Service (QoS) requirements


PotentialSolution





Approach: Example:




Enabling technology

identification

Based on the connectivity and data requirements suitable connectivity and data management technology will be identified.

IoT platforms: 2elemetry, Predix, home-grown Transfer protocols: OPC UA, MQTT, ZeroMQ Data management: Cassandra, CouchDB


PotentialSolution





Approach: Example:




Enabling technology

identification



Connectivity technologydeployment

A set of enabling technologies will be combined and deployed in order to efficiently meet the specified requirements.

A data management platform is configured and deployed. Edge devices (machinery) and business objects (incoming orders) are connected to the platform via suitable protocols.


PotentialSolution





Approach: Example:




Enabling technology

identification



Connectivity technologydeployment

A set of enabling technologies will be combined and deployed in order to efficiently meet the specified requirements.

A data management platform is configured and deployed. Edge devices (machinery) and business objects (incoming orders) are connected to the platform via suitable protocols.

Enablement of data-based transparency

Based on the newly available connectivity, transparency is achieved through the development and deployment of a real-time data exploration and visualization tool.

A web-based visualization of current machine utilization,material inventory, incoming orders and real-time order fulfillment is built onto the data management platform.


PotentialSolution


Creating value through solutions


In this phase the actual digital solutions validating the project hypothesis are implemented on top of the connectivity and data management platform. This project phase is highly dependent on the solution and is thus not generically specified. In general Actyx follows an agile development methodology, whereby data and new insights constantly flow into iterative project cycles.

LEARN BUILD

MEASURE

IDEAS

CODEDATA


PotentialSolution


Creating value through solutions


In this phase the actual digital solutions validating the project hypothesis are implemented on top of the connectivity and data management platform. This project phase is highly dependent on the solution and is thus not generically specified. In general Actyx follows an agile development methodology, whereby data and new insights constantly flow into iterative project cycles.

Example:

Building on top of the deployed connectivity and data management platform, the mattress manufacturer’s development team and Actyx work together to implement:

An algorithm for designing mattresses based on Apple HealthKit data available to iPhone users (incl. compliance provisions for dealing with private health data)

A mattress specification schema and API-based web-accessible incoming order system

A web-shop and iPhone App for designing and ordering individualized mattresses based on Apple HealthKit data

An after-sales iPhone App where customers can follow the production and logistics of their order, provide feedback regarding the product and share the achieved sleeping experience through social media.

Beside the success of the individualized mattress offering, the manufacturer profited through the newly available transparency which spurred a number of further projects and initiatives. Additionally, the project experience led to significant digital spill-over with on-site personnel, who are now developing digitalization hypotheses and solutions autonomously.

LEARN BUILD

MEASURE

IDEAS

CODEDATA


PotentialSolution
