▪ 09:30 Arrive & Coffee and Pastries
▪ 10:00 Welcome to MTC
▪ 10:15 IOT & Asset Management Drivers
for Manufacturing
▪ 10:45 IOT as a catalyst for change -
BAE Systems
▪ 11:15 Tour of MTC Environment
▪ 12:30 Round table discussion –
including Buffet Lunch
▪ 2:30 Close
Agenda
Hitachi Digital Solutions & Services
Hitachi Smart
Cloud Solutions
Hitachi
Global Data Office
Hitachi Predictive
Maintenance
Hitachi
Process Intelligence
Hitachi Live StreamHitachi Smart
Customer Experience
Hitachi
Water Solutions
Hitachi Regulatory
Data Management
Management consulting & digital solutionshelp clients transform and
thrive in the digital eraServing
130
25of Global 100
and
ofFortune 500
Platforms & Technologies
Lumada
Big Data & Analytics
Artificial Intelligence
Robotics
Machine Learning
Industry Knowledge
Energy
Financial Services
Pharma
Health & Life Sciences
Manufacturing
Transportation
Urban
Strategic Alliances
Amazon
Microsoft
Oracle
SAP
Services
Management Consulting
Managed Services
Organization Effectiveness
Product Engineering
Global Delivery NetworkWorld class solutions development ecosystem, with 20+ years experience
Hitachi Energy &
Environmental
Efficiency
Smart Cities &
Video Intelligence
Hitachi
Optimized Factory
Hitachi
Smart Healthcare
Co-creating transformational business solutions
100+ global
professionals with
Google Training
1,000’s of
professionals dedicated
to digital transformation
Hitachi and
End to end
capabilities
• Strategy & Assessment
• Implementation
• Managed Services
• Global SAP Practice
(SAP on GCP)
11,000+ IoT patents
50+data scientists
Manufacturing &
Industrials Heritage
107 years of experience developing
operational technologies
6 Industry Solutions built on the Google Cloud Platform
Global Systems
Integrator (GSI)
Partner
1 of 12 partners
globally with this
distinction
We accelerate the creation and
delivery of industry-specific digital
solutions powered by GCP
To sustain ongoing growth, today’s manufacturers are hyper-focused on
three key mandates:
▪ Improve utilization rates of expensive fixed assets that are below
optimal capacity.
▪ Fill the current and increasing void of specialized labor. Estimates that
by 2028, the skills gap in the US will result in 2.4 million unfilled seats
out of a total of 16 million manufacturing jobs.
▪ Protect operating profit as industry average EBITDA margin continues to
decline from 11.2% in 2015 to 8.6% in 2018.
Manufacturing Industry Context*
*Source: The Future of Manufacturing Technology, Columbia Business School, August 2019
© Hitachi Vantara Corporation 2018. All Rights Reserved
OEEMonitoring
Anomaly
Detection
Predictive
Maintenance
Predictive
Quality
The Digital Journey
Dynamic Scheduling
DigitalThread
Single Pane of Glass
Operational View
Blend data to detect
unseen equipment
and line problems
Preventative to
Condition-Based
Maintenance
Minimize losses by
predicting quality
problems
Optimize processes:
equipment and people
Full lifecycle
production insights
© Hitachi Vantara Corporation 2019. All Rights Reserved.© Hitachi Vantara Corporation 2019. All Rights Reserved.© Hitachi Vantara Corporation 2019. All Rights Reserved.
Ilya Billig
IoT Business Development
Director, EMEA
Industrial IoT –the rollercoaster ride
to the future
© Hitachi Vantara Corporation 2019. All Rights Reserved.
IoT JourneyYellow Brick Roadto the Emerald city
“75 billion devices due to arrive in the IoT market by 2025”
“The global IoT market is expected to grow to $212 billion USD in size by the end of 2019”
© Hitachi Vantara Corporation 2019. All Rights Reserved.
“The road to the bright future of IoT is covered with blood and dead bodies”
© Hitachi Vantara Corporation 2019. All Rights Reserved.
State of the Industry AssessmentThe Transformation – Progress and Stages
22%Defining or
early phase20%
Have made
progress, company
seeing value
37%Pilot phase
8%IS REAL SUCCESS (business benefit and
speed of impact)
13%Stuck in
pilot, unclear
results
30%
30%
40%
Small: $0-$250M
Medium: $250M-$1B
Large: $1B+41%
36%
18%
5%
GeographyColor by HQ Location
North America
Europe
Asia Pacific
Rest of World
25%
44%
23%
8%
IndustryColor by Industry
Batch
Discrete
Process
OtherRevenue
Color by Company
Revenue
Survey: 275 valid global responses
© Hitachi Vantara Corporation 2019. All Rights Reserved.
Most IoT Vendors Lack Domain Knowledge
• Lack of OT knowledge or focus on
installed-base industry
Disconnected Environment
• 60 million machines in factories globally
with 90% not connected2
• 70% of machines are more
than 15 years old2
Data Sits in Silos
• Manufacturing shop floor is a highly
heterogeneous environment, with a
large variety of machine types and OEMs
that speak proprietary protocols (OT Data
Silos)
• Data from different departments
across planning, production, to quality
inspection that sits in its own
databases (IT Data Silos)
Difficult to Calculate ROI
• Most IoT projects fail due to lack of
understanding of OT business drivers,
and focus too much on technologies
• 88% of survey respondents list
“Uncertain ROI” as the largest only
nontechnical barrier
State of the Industry AssessmentRoadblocks and Speed Bumps
© Hitachi Vantara Corporation 2019. All Rights Reserved.
OEEMonitoring
Anomaly
Detection
Predictive
Maintenance
Predictive
Quality
IoT Journey
Dynamic Scheduling
DigitalThread
Single Pane of Glass
Operational View
Blend data to detect
unseen equipment
and line problems
Preventative to
Condition-Based
Maintenance
Minimize losses by
predicting quality
problems
Optimize processes:
equipment and people
Full lifecycle
production insights
© Hitachi Vantara Corporation 2019. All Rights Reserved.
How we recommend to
approach the Digital
Transformation project
© Hitachi Vantara Corporation 2019. All Rights Reserved.CONFIDENTIAL – For use by Hitachi Vantara Corporation employees and other audiences under NDA only.
Hitachi Across Diverse Verticals
Mobility Smart Life Industry Energy IT
© Hitachi Vantara Corporation 2019. All Rights Reserved.
Lumada Portfolio
Lumada Edge
Manufacturing Energy/Utilities Logistics Transportation Mining Oil and Gas Smart Cities
Lumada Services
Maintenance Insights Manufacturing Insights Video Insights
Lumada
Delivery
Services
◼ Lumada Industry solutions ◼ Lumada applications ◼ Lumada platform services ◼ Edge-to-cloud infrastructure
Edge controllers /
appliances
Converged and
hyperconverged
Block-, file- and
object storage
Hybrid cloud and
multicloud
© Hitachi Vantara Corporation 2019. All Rights Reserved.
IoT Overview Conceptual Architecture
Low-power
short or
long range
comms
Industries Things
& Industrial
Control
Systems
Sensors
&
Actuators
IoT Endpoints IoT Edge / Gateways IoT Platform & Integration OutcomesApps / Visualisation
/ Data Science
CPU
1010
1010
1010
Compute
Logic
Storage
DATA
CONTROL
CPU
CPU
CPU
CPU
1010
1010
1010
1010
1010
1010
1010
1010
1010
1010
1010
1010
Compute
Logic
Storage
INTEGRATION
Aggregate local data
Store & forward
Local decisions
Processing power
Aggregate enterprise data
Integrate to core systems
Processing power
Test hypotheses
Create insight
Fuel decision-making
Local
Analysis &
visualisation
Local
action
DATA
CONTROL Enterprise
Analysis &
visualisation
Enterprise
action
Enterprise
Integration
New business models
Increased Revenues
ecosystems
Increased operational
efficiency
New business models
Better processes
SENSE COMMUNICATE INTEGRATE ANALYSE ACTSTRATEGY
Understand how to light-up dark devices, what data you need, and where you have it / need it Convert data to insight to wisdom Shift and automate processes and behaviours
DATA
CONTROL
Sensors
Actuators
IP Devices
Securable
Non-IP
Devices
Unsecured
Devices
IP Devices
Securable
© Hitachi Vantara Corporation 2019. All Rights Reserved.
Auto PartsStruts Assembly Line
Operating Metrics
Repository
CUSTOMER BUSINESS OBJECTIVE
Reduce rejects and losses through predictive quality
VALUE TO CUSTOMER
• Identify machine/process parameters leading to increased rejects
• Provide automated dashboard for daily Gemba sessions
• Show cycle times across line, to identify bottlenecks
• Facilitate Pareto analysis identifying dominant reject reasons and stations
• Visualize cycle time and reject rate trends over various time periods
• Predict increased reject rate based on historical correlations
SQL
Store
SQL
Store
NoSQL
Store
Asset Hierarchy
Admin
Cycle Time
Analytics
Gemba
Dashboards
© Hitachi Vantara Corporation 2019. All Rights Reserved.
Oil and Gas DrillingSmart Rig Monitoring and Analytics
CamerasLIDARHistorian
PDI
CUSTOMER BUSINESS OBJECTIVE
“Smart Rig’: Monitor operations, equipment degradation, monitor processes
VALUE TO CUSTOMER
• Reduce unplanned downtime by predicting equipment issues
• Optimize drilling performance by minimizing drilling run time
• Remote monitoring of widely-dispersed assets
• Platform for doing more advanced analytics in the future
• Hierarchical digital twin for 200 drilling rigs
SQL
Store
SQL
Store
NoSQL
Store
Asset Hierarchy
Admin
Process
Analytics
OEE Dashboards
© Hitachi Vantara Corporation 2019. All Rights Reserved.
AutomotiveFoam Unit Station Deployment
IBC StationMaterial Supply
Station
High Pressure
Unit
Application
Robot
Foam Unit Station CUSTOMER BUSINESS OBJECTIVE
Minimize downtime and line losses
VALUE TO CUSTOMER
• Anomaly detection to identify unseen issues with equipment
• Asset analytics dashboard to mine historical asset/anomaly data
• Maintainer/analyst note entry
• False anomaly and undetected warning flags to support model training
• Asset hierarchy roll-up of anomalies, notes, and flags
• Lays a foundation for prediction and true condition-based maintenance
SQL
Store
NoSQL
StoreSQL
Store
SQL
Store
Asset Hierarchy
Admin
ML Anomaly
Detection
Asset Analytics
Dashboard
© Hitachi Vantara Corporation 2019. All Rights Reserved.
Train Carriage ManufacturerWelding Robot, Milling Analytics
CUSTOMER BUSINESS OBJECTIVE
Monitor operations, predict quality/equipment issues that slow line output
VALUE TO CUSTOMER
• Single-pane-of-glass monitoring across three factories
• Reduce scrap through predictive quality for welding robots
• Optimize milling performance through process analytics
• Perform asset analytics and historical data mining across operations
SQL
Store
NoSQL
StoreSQL
Store
SQL
Store
Asset Hierarchy
Admin
Cycle Time
Analytics
OEE Dashboards
© Hitachi Vantara Corporation 2019. All Rights Reserved.
Rolled Steel ProcessingSlitter Station
Crane Coil ArborKnife/
Spacer
Assembly
Lumada
Platform
CUSTOMER BUSINESS OBJECTIVE
Automate quality inspection, optimize equipment/operator efficiency
VALUE TO CUSTOMER
• Enable more consistent and efficient cut-width checks with automation
• Optimize operator and order scheduling with cycle time analysis
• Enhance crane safety by predicting crane cable failure
• Monitor and detect equipment anomalies to increase uptime and quality
• Minimize shipping errors by detecting incorrect bar code label placement
SQL
Store
NoSQL
StoreSQL
Store
SQL
Store
Lumada
studio
Lumada
analytics
Lumada
core
© Hitachi Vantara Corporation 2018. All Rights Reserved
OEEMonitoring
Anomaly
Detection
Predictive
Maintenance
Predictive
Quality
The Digital Journey
Dynamic Scheduling
DigitalThread
Single Pane of Glass
Operational View
Blend data to detect
unseen equipment
and line problems
Preventative to
Condition-Based
Maintenance
Minimize losses by
predicting quality
problems
Optimize processes:
equipment and people
Full lifecycle
production insights
© Hitachi Vantara Corporation 2018. All Rights Reserved© Hitachi Vantara Corporation 2019. All Rights Reserved
▪ By 2020, Discrete Manufacturing, Transportation & Logistics and Utilities industries
are projected to spend $40B each on IoT platforms, systems, and services.
▪ McKinsey predicts the IoT market will be worth $581B for ICT-based spend alone
by 2020, growing at a Compound Annual Growth Rate (CAGR) between 7% and
15%.
▪ Industrial products lead all industries in IoT adoption at 45% with an additional 22%
planning to adopt IoT in the next 12 months according to a recent Forrester survey.
▪ The Industrial Internet of Things (IIoT) market is predicted to reach $123B in 2021,
attaining a CAGR of 7.3% through 2020.
▪ Harley Davidson reduced its build-to-order cycle by a factor of 36 and grew overall
profitability by 3% to 4% by shifting production to a fully IoT-enabled plant
IOT Is not a Hype – Its here already!
© Hitachi Vantara Corporation 2018. All Rights Reserved
Security is a critical part
of an IIOT strategy
© Hitachi Vantara Corporation 2018. All Rights Reserved
OEEMonitoring
Anomaly
Detection
Predictive
Maintenance
Predictive
Quality
The Digital Journey
Dynamic Scheduling
DigitalThread
Single Pane of Glass
Operational View
Blend data to detect
unseen equipment
and line problems
Preventative to
Condition-Based
Maintenance
Minimize losses by
predicting quality
problems
Optimize processes:
equipment and people
Full lifecycle
production insights