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Information Driven Enterprise
for the Connected World
Andy Chatha
President
ARC Advisory Group
2© ARC Advisory Group
Oil Price Has Declined >50% in 6 Months
Most Industrial Companies are Beneficiaries
4© ARC Advisory Group
The Connected World is on the Horizon
Processes
Systems
Things/Assets
People Information
Cloud, Virtual
Mobile, IoT
Analytics, 3DCollaboration, Social
Together, These Technologies can
Help You Transform Your Business
5© ARC Advisory Group
Industrial Internet: The New Frontier
RemoteMonitoring &
Services
Connectivity Platform
Advanced Analytics
Apps
Network
Most Industrial IoT Building Blocks are Already in Place
6© ARC Advisory Group
Industrial Internet Drivers
Source: ARC Industrial Internet of Things Survey
Reduced Downtime and Faster Service are Top Drivers
7© ARC Advisory Group
Physical asset with sensors, actuators
Local IoT Compute and Communicate module
Smart Machine
IoT Smart Module
Emerging Option: Connect Big Assets Using New Technologies
Secure Network
The Connected Plant
Plant Operations
CorporatePurchasingEngineering
XYZ Company XYZ Company XYZ Company
Enterprise
Maintenance
XYZ Company
BusinessSystems
New IoT Analytics and Applications
Private Cloud
Machine Mfr.
Secure Connection
Service Provider
Private Cloud
Share Asset Data with 3rd
Parties
Monitor in-service Products
XYZ Company
8© ARC Advisory Group
The Connected Oilfield Use Case Avoid expensive unplanned downtime
Oil Platform
Workflow
Ship Seal to Rig
Technician
Change Seal During Next Maintenance Cycle; Save $7.5M
Data from Equipment(including pressure)
Cloud
Predict Seal Failure on Water Injection Pump
AnalyticsService Staff
9© ARC Advisory Group
The Connected Mine Tire Monitoring Avoid risk, downtime, and expense
Tire OEM
Haul Vehicle
Technician
Change Tire At Safe Location; Avoid Risk,
Downtime, and Expense; Redeploy
Other Assets
Mine Operations
Dealer’s Tire Service Truck
Data from Tires and
Equipment
Cloud
Analytics
Predict Tire Failure
Workflow
10© ARC Advisory Group
Enterprise Software Business Is Evolving
New Model: Sell Apps that…
run as a service in a private or public Cloud
require monthly payment
can be implemented in weeks or days
can support diverse user ecosystem
are upgraded by the supplier
provide tools for global collaboration
11© ARC Advisory Group
Automation Systems are Evolving
Attribute From To
Focus Technology Business
Structure Hierarchical Flattened
Cyber Security After Thought Secure by Design
Data Multiple copies Single Version of Truth
Integration Project-based Standards-based
MOM Applications Separate Integrated
Control & Safety Separate Integration Options
Control & Electrical Separate Integration Options
Engineering Design Tied to Hardware/ Software
Late-Binding for Hardware/Software
Supported By Users Suppliers
Technology is no longer a barrier
12© ARC Advisory Group
IIoT Impact on Industrial Companies
More Sensors, More Data, More Automation
More Analytics, More Visibility
More Software Applications
New Product Requirements
New Production Equipment Capabilities
• Software defined, autonomous, intelligent
New Architectures
• Cloud, Mobility, Virtual, Distributed
New Service Requirements
New Customer/Supplier Relationships
New Ecosystem/Supply Chain
New Business Models
13© ARC Advisory Group
Information Driven Enterprises Will…
1. Embrace key technologies throughout the enterprise
2. Make decisions based on data analysis
3. Put info and analysis tools at employees’ fingertips
4. Collaborate internally and externally with partners
5. Seek opportunities to transform business processes
6. Are demand driven, customer-centric
7. Fund technology pilot projects
8. Have strong IT resources, and are ‘fast followers’
Embrace Technology Friendly Culture
14© ARC Advisory Group
Thank You.For more information, contact the author at
[email protected] or visit our web pages atwww.arcweb.com
15© ARC Advisory Group
Acronyms Used in This Presentation
APM Asset Performance Management
CMM Collaborative Management Model
CDM Connected Device Management
Cloud Private or Public Data Center
DCS Distributed Control Systems
EAM Enterprise Asset Management
ERP Enterprise Resource Planning
IDE Information Driven Enterprise
IoT Internet of Things
IIoT Industrial Internet of Things
MES Manufacturing Execution System
OpX Operational Excellence
KPI Key Performance Indicators
PLM Product Lifecycle Management
SCM Supply Chain Management
A complete list is available on ARCweb.com