CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only. Accelerate your IoT & AI Journey Disrupt or Be Disrupted Dinesh Chandrasekar Director Global Solutions & Innovation Hitachi Consulting 19th January 2018 HICC, Hyderabad, India
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CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only.
Accelerate your IoT & AI Journey
Disrupt or Be Disrupted
Dinesh Chandrasekar Director Global Solutions & Innovation
Hitachi Consulting
19th January 2018
HICC, Hyderabad, India
Most Significant Development in Human History
Industrial Revolutions – Major Tipping Points
1800s 1900s 2000s
< ETCs – General Purpose Technology Platforms >
First IR Second IR 3IR 4IR
Communication
• Internet & Social
Media
Energy
• Renewable Energy
Transportation
• Autonomous Electric
Vehicles
IoT, AI & Sharing
Economy
Paradigm Shift Happening…
The IoT Opportunity across Industries & Globe
The Internet of Things offers a potential economic
impact of $ 4 trillion to $ 11 trillion a year in 2025
0.2-0.9
0.6-0.9
0.4-1.2
0.2-1.6
0.9-1.7
1.2-3.7
0.1-0.2
0.2-0.3
0.2-0.7
High estimate
Low estimate
Total $4 trillion - $11 trillion
Size in 2025, $ trillion1 Outcome based Values
Factories – e.g., operations management,
predictive maintenance
Cities – e.g., public safety and health, traffic
control, resource management
Health – e.g., monitoring and managing
illness, improving wellness
Retail – e.g., self-checkout, layout optimiza-
tion, smart customer-relationship management
Transportation – e.g., logistics routing,
autonomous (self driving) vehicles, navigation
Work sites – e.g., operations management,
equipment maintenance, health and safety
Vehicles – e.g., condition-based
maintenance, reduced insurance
Homes – e.g., energy management, safety
and security, chore automation
Offices – e.g., organizational redesign and
worker monitoring, augmented reality for training
1 Adjusted to 2015 dollars; for sized applications only; includes consumer surplus. Number do not sum to total, because of rounding.
Source: McKinsey Global Institute analysis
Exponential Growth of Computing & AI
CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only.
ROBOTICS ARTIFICIAL INTELLIGENCE (AI)
Overall Optimization
Open
Outcomes
Individual Optimization
Closed
Products
Everything as a Service Own
Disrupting Social & Business Models
INTERNET OF THINGS (IoT)
Drive Greater Efficiencies and Transform Business Models
Europe China Japan Americas India Industry 4.0 Made in China 2025 Society 5.0 Industrial IoT Digital India
CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only.
Hitachi Is Uniquely Positioned for Digital Transformation That Creates Value
OT 107+ YEARS
INDUSTRIAL
CONSUMER
BUSINESS
CITY
IT 58+
YEARS
I.T. SYSTEMS
ARTIFICIAL
INTELLIGENCE
COMMUNICATIONS
BIG DATA
ANALYTICS
CLOUD
IoT Innovation
is in our
DNA
Hitachi
“illuminate” + “data” CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only.
Data
Hitachi’s Lumada IoT Platform
sensors
sensors
sensors
Edge
Gateway 1
Edge Gateways
Gateway
SDK
Edge
Software
Edge
Gateway 2
Gateway
SDK
Edge
Software
Lumada Core
Smart meter
Asset
Management
Portal
OT Engineer
Analytics
Solutions
Customer
Asset
Info
Customer IT
ERP, etc.
Assets
Asset Avatars
Data Producers Data Consumers
SDK
Conveyor
Truck
Shovel
Smart meter
Collect and send
Transform, Store, Update Asset Avatar
Retrieve and Analyze
>6 Million Hitachi Machines Connected
MRI
Car
Navigation
Construction
Vehicle
Server
Storage
ATM Elevator
Pump,
Valve Steel
Plant
Lumada’s vision is to connect to every Hitachi machine
and many third-party machines
Train
CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only.