Johan Tommervik Group Chief Information Officer · Johan Tommervik –Group Chief Information Officer ... in the bearing business ... *unconstrained plan Slide 31 July 12, ...

SKF GroupJohan Tommervik – Group Chief Information Officer

DXC CAB – London October 2017 – Proprietary and confidential information

© SKF Group

SKF vision and mission

A world of reliable rotation

The undisputed leader

in the bearing business

https://www.youtube.com/watch?v=JGpaEK0c3_w&t=7s

SKF Corporate film (short

© SKF Group

• Established 1907

• Sales 2016 SEK 72,787 million

• Employees 44,868

• Manufacturing units 108

• SKF presence 130 countries

• Distributors/dealers 17,000 locations

• Global certificates ISO 14001

OHSAS 18001 certification

ISO 50001

SKF – a truly global company

© SKF Group

Net sales for Industrial 2016

Industry general 17%

Industry, heavy and

special 12%

Industrial distribution 40%Aerospace 9%

Energy 8%

Off-highway 5%

Railway 5%Other 4%

© SKF Group

Net sales for Automotive 2016

Cars and light trucks 49%

Vehicle aftermarket 27%

Trucks 16%

Two-wheelers and Electrical 6%

Other 2%

© SKF Group

• More competitive

landscape across the

value chain

• Asian companies

going global

• Overcapacity in heavy

and investment-

driven industries

• Automation,

electrification and

digitalization drive the

change

• New technology

requirements for new

applications

• Technology for cost

competitiveness

• New, emerging

competitors gaining

ground

• Chinese competitors

strengthen position

fueled by local market

• New Asian customers

going global

• More transparent

supplier market gives

stronger buying power

• Strong price/cost

focus

• Tougher competition

and SKF traditional

customer base under

competitive pressure

Changing business reality

Globalization Technology Competitors Customers

© SKF Group

Two value propositions in focus

Customer need:“I want on-time delivery, quality and field

performance, flawless launches of new

products, technology and price”

Customer need:“I want your products and my assets to reach technical

end of life with trouble-free operation”

1. Rotating

equipment

performance

2. Product

© SKF Group

Rotating equipment performance value proposition

• Right solution

• Right performance

• Right total cost

of ownership

Rotating

equipment

performance

Advanced bearing

and sealing solutions

Sealing

Technology

upgrades

Maintenance

procedures

Quality

Lubrication

Safety

Bearing remanufacturing

and customizations

Bearings

and units

Power

transmission

Environ-

mental

Reliability

services

Machine health

© SKF Group

SKF technology areas

Bearings

and units

Seals Services Lubrication

systems

Linear actuation

Our solutions are everywhere

© SKF Group

Industry specialist and partner to many industries

Energy

• Renewable

• Traditional

Aerospace

Railways

Off-highway

Vehicle aftermarket

Industry, heavy and

special

• Metals

• Mining and cement

• Pulp & Paper

• Marine

• Food & Beverage

Industry general

• Automation

• Industrial drives

• Machine tools

• Medical

• Health care

Cars and light trucks

Trucks

• Trucks, trailers and buses

Two wheelers and electrical

• Two wheelers, home

appliances, portable power

tools and electric motors

SKF IT

© SKF Group

IT @ SKF – a quick view

Slide 13

1/2/110Mainframe/Midrange//Unix servers

25 000Managed Workplaces

215Active IT projects/year

928 000 000 (~29tr/s)Business Transactions/year over GAIA (trans./sec 24/7)

11 000 000 000Network events/month

285+SKF connected sites

110 000 000e-mails/year from/to the internet

16 500Service Desk Interactions per month

16 122 000Order lines processed by SKF IT Systems/year,

1 line every other second

2 600 000Dispatch orders processed by SKF IT Systems/year

5700Managed Tablets/Smartphones

654/1322Business Apps & Installations

1 030Windows Servers

2370 (~11)Functional/Operation application changes in central systems /year

(11 changes per working day)

Digitalization @ SKF

© SKF Group

What digitalization means at SKF

REP

• Remote monitoring (low cost sensors)

• Enlight Centre

• Connect to partners (Honeywell,

Siemens, Schneider, GE)

• Lubrication (Smart Lube Systems)

• Machine learning / auto-diagnostics

• Interface with competitor CoMo equip.

DD

Customer Digital Interface

OEMSKF.com

Mfg 4.0

SC 4.0

REPProducts

SC 4.0

Brg Tracker

REPProducts

Digital Product Description

• Inconsistent image

representation & quality

• Small % of assortment

covered

• Manual process

Digital Product Data

(Windchill)

Eng & Research

Digital Product

Content

SKF Digital Platform

© SKF Group

What is a Factory?

Factory ProductRaw Material

© SKF Group

What is a Digital Platform?

Data Digital Platform Information

© SKF Group

Ingest Transform Store Access Analyze Visualize

Digital Platform – Data flow

© SKF Group

Digital Business – the approach!

$

$

$

User Value

• Smart Services

• Smart Manufacturing

Asset Layer

• Smart Products

• Smart Factory

Service Layer

• Digital Platform

• Data ScienceDigital Platform

Sales, Bus. Development, Manufacturing

R&D, Prod. Development, Manufacturing

SKF IT

SKF Core Projects

© SKF Group

SKF Digital Strategy Core Projects

Co

nn

ect –

Co

llect –

Co

rre

late

–C

olla

bo

rate

Supply Chain 4.0

World Class Manufacturing

360 DX – Digital Experience

Smart Data Programme

World Class Manufacturing

Supply Chain 4.0

360 DX – Digital Experience

Smart Data Programme

© SKF Group

Smart Data Programme

Examples

© SKF Group

SKF’s Enlight connects you to the world’s experts in rotating equipment performance

SKF Quick

Collect

Sensor

Data Collect appSKF Quick

Collect

SKF Enlight Collect

Expert Portable devices

On-line systems

Wireless systems

Remote Diagnostic

Services

Insight Apps

Lubrication systemGrease Gun

• Action Centre

• User Views

• Dashboards

SKF Enlight Centre Hololense

© SKF Group

Railway Insight

Smart Product

Service Layer

Associated services

Product Life Cycle- Bearing maintenance extension

- Maintenance recommendation

- Bearing refurbishment

- Root cause analysis

Customer service

- Forecast bearing orders

- Proactive offering

© SKF Group

InGenuity and Identification of Product Packaging

App for customers to authenticate SKF products

based on a globally unique code which is stored

and managed in a central accessible database!

© SKF Group

Myrina Project

Mining Industry

Single Point Lubricator

LORA

Gateway

Central

Data

Storage &

Access

SKF Cloud

Visualization

Users

WebShop

Order

© SKF Group

Smart manufacturing 5G project

Collaboration between Chalmers,

Ericsson and SKF:

Drive digitalization and innovation

in manufacturing through

unlimited 5G connectivity

• 4 demonstrators built, ready for testing

- Stationary connectivity

- Mobile connectivity

- Network and cloud

- Factory radio design

• Full 5G standard and industrialization expected for 2019/2020

• Dramatic improvement in environmental and economic

efficiency, flexibility and traceability

© SKF Group

• A wall-to-wall ERP global transformation programme - Unite

• Cyber defense programme

• Service Now implementation

• Workplace & Automation

• ’Cloudification’

• Next Generation Connectivity

Other major initatives

© SKF Group

UNITE(Global SAP Roadmap*) // 2017-05

Legend:

Roll-out

Parallel project roll-out

Pilot roll-ut

Design, Build, Test

SAP CoE Change Management and Retrofit

Template

2.0(Seals / Lubrications)

Template

1.1(Bearings /

Service)

Tmplt

1.2(Bearings /

Service)

Sales

Service

Finance

Purchasing

Manufacturing

Demand Chain &

Logistics

Template 1.0 ‘Drop 1’

(Bearings/Service)

Russia

Singapore

Singapore DC

China

Shanghai DC

India

Indonesia

Malaysia

USA

Canada

Crosswill DC

Mexico

Brazil

Argentina

South

Korea

KenyaMozamb.S AfricaZambiaUAE

Thailand

Pakistan

Vietnam

Taiwan

AustraliaNewZealandPhilippin.Japan

UruguayChileColombiaPeruVenezuela

Pilot SWE, FIN

Hyp

erc

are

Poland

Spain

1.0

Germany

BelgiumNetherl.Czech R.DenmarkNorway

HungaryPortugalSwitzerl.Greece TurkeyEurotrade

UK

France

Austria

Italy

Bulgaria

Ukraine

Europe; remaining

Bearings Units

Europe; all Sealing Solutions and

Lubrications

2016 2017 2018 2019 20212015 2020 2022 2023

Template

1.0

‘drop 2’(Bearings /

Service)

EDC (Entrepreneur)

Disclaimer: Subject to detailed planning

*unconstrained plan

AeroJuly 12, 2017Slide 31

© SKF Group

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