Business Ecosystems in the Factory of the Future

Neue Wertschöpfungsnetzwerke in der Fabrik von morgen
Business Ecosystems in the Factory of the Future
Dr. Stefan Ferber
Technology Review Innovationskongress, Berlin, 05.11.2013
Bosch Software Innovations

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Public | INST/BUD | 05.11.2013 | © Bosch Software Innovations GmbH 2013. All rights reserved, also regarding any disposal,
exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.


3



Circle of Concern today

This is: where the story ends

4



Circle of Concern tomorrow
This is: where the story starts

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6



People connected to the internet


7



Devices connected to the internet


8



Internet – The Driver of Change
Web 0

Web 1.0

Web 2.0

Web 3.0

Connectivity

Internet of Things & Services
Connecting the physical world
with the virtual world

Connected Business Models
Connected
People
Connected
Business
Connected
Documents

Business-Services

Web-Services

Java, XML

Browser, Webserver

1995

2000

2005


9


2020


Massive Distributed System of Systems


10



Connected Mobility

Connected City

Enabling business success
in a connected world

Connected Industry

Connected Energy

Connected Life

Connected Enterprise


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Reference Model Internet of Things & Services
Layer

Mobility
Service

Service

Energy
Service

Business Models

Application
Fields

Enterprise

City

Industry

Applications
Solutions
…

Business
Prerequisite
Customer
Access

Internet of
Services

Business
Intelligence

Internet
Systems &
Service
Platform

Domain
Know How

Life

Service

Service

Service

Business Models

Aggregation, analysis, and enhancement of data
Linking of functions and services
Integration of business partners

Internet of
Things


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Software
Technology
(Wired/Wireless)

IP-capable
Components


Eventually,
everything connects

— people, ideas, objects. The quality of the
connections is the key to quality per se”
Charles Eames, Designer, USA
(1907-1978)


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Industries and Market Actors in the IoTS
Information and
communication
technologies

IT

CT

New entrants/
niche players
Internet

IoTS

• Emerging IoT2 platform
• M2M protocol reference code

OEMs

Systems / device
manufacturers

Utilities

Industries / industry sectors collide
IoTS: Internet of Things and Services


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Value Chain vs. Business Ecosystem
Value Chain


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Business Ecosystem


Definition "Business Ecosystem"
"Business Ecosystems" are defined as intentional communities of economic
actors whose individual business activities share in some large measure the
fate of the whole community…. Establish business ecosystems to co-evolve
innovation across complementary contributions arising within multiple
markets and hierarchies Business"
James F. Moore: Ecosystems and the View From the Firm, Antitrust Bulletin, Fall 2005


17



Definition „Business Ecosystem"
"Business Ecosystems" are defined as intentional communities of economic
actors whose individual business activities share in some large measure the
fate of the whole community…. Establish business ecosystems to co-evolve
innovation across complementary contributions arising within multiple
markets and hierarchies Business"
James F. Moore: Ecosystems and the View From the Firm, Antitrust Bulletin, Fall 2005


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Business Ecosystems
Business Ecosystem = Value Network + Open Culture + Platform
Value Chain

Ecosystem

decisions

independent

shared

competitors

not part of it

often part of it

consumers

not part of it

often part of it

-

shared

independent

shared

small

large

dependent

shared

volatile

sustainable

platform
visions, goals, ethic values
number of members
fate
stability

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Microsoft Ecosystem: “Windows” Keystone

Source: [Iansiti, Levien, 2004]


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Vertraulich | CR/AEC | 5.12.2008 | Bosch Software Innovations GmbH 2013. All rights vorbehalten, regarding any disposal,
Public | INST/BUD | 05.11.2013 | ©1881V14 | © Robert Bosch GmbH 2008. Alle Rechtereserved, alsoauch bzgl. jeder Verfügung, Verwertung,
exploitation, reproduction, editing, distribution, as well as invon Schutzrechtsanmeldungen.
Reproduktion, Bearbeitung, Weitergabe sowie für den Fall the event of applications for industrial property rights.


Li & Fung is
the global
value chain
company in
fashion


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Efficiency = Control
Fast = Central
Bigger = Better
Hierarchy = Fast


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iteration
networked
open
flat


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"Any organization that designs
a system will produce a design
whose structure is a copy of the
organization‘s communication
structure."
Melvin Conway, 1968

Picture source: http://flowchainsensei.wordpress.com/2012/09/07/conways-law-revisited/


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Open X








Open Source
Open Data
Open Innovation
Open Standards
Open Hardware
Open Platforms

Source: Mike Milinkovich, Eclipse Foundation, Webinar 03.09.2008


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Community Examples Open Source Software




Apache Web Server
 90 Core Developers
 > 5.000 Contributors
 > 100 related top level projects
 > 100 Countries
 Apache License V2.0
Eclipse
 > 2.000 Developers
 > 1.200 related top level
projects
 > 85 Countries
 > 200 company members
 Eclipse Public License



Linux / Debian








Mozilla
 > 15.000 “Developers”
 > 15.000 Development Sites
 > 100 Countries
 Mozilla Public License


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> 2.000 Developers
> 10.000 Sub projects
> 100 Countries
20 Processor architectures
GNU and other Licenses



Open Source Software Economics
Retail
Investment

100%

Open Source

In-House,
Contract

Overhead
> 90%

Overhead
1-40%

Overhead
20-40%

Investment
In Software

Customer
base

0%
Mass market

5 and more
partners

Source: Bruce Perens: “The Emerging Economic Paradigm of Open Source”, 2005, http://perens.com/Articles/Economic.html


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One customer


Kulturgeschichte: Allmende
Typisches Recht
 Wasserrechte
 Weiderechte
 Fischereirechte
 Recht zum Abbau von Sand, Kies, Torf
 Holzrecht

Weltweit
 Commons
 Servitute
 Reconquista



Allemensraetten
公有地

"View of the Water Celebration, on Boston Common, October 25th 1848." Lithograph by
P. Hyman and David Bigelow. Archival Research Catalog (ARC) of the United States
National Archives and Records Administration


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Complexity, Productivity

Industrie 4.0: The next Industrial Revolution
Industrie 1.0

First
mechanical
loom
(1784)

Industrie 2.0

First
production line,
Cincinnati
slaughterhouses
(1870)

Industrie 3.0

Industrie 4.0

First
programmable
logic controller (PLC),
Modicon 084
(1969)

Cyber-physical
Systems (CPS)

End of
18th century

Start of
20th century

Start
of 1970s

Since
2010

Time

Source: Forschungsunion, acatech, Abschlussbericht Arbeitskreis Industrie 4.0


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Towards Industrie 4.0: Dual Strategy
Lead Suppliers

Lead Users

Software Innovations

· Europe: Over 50 plants in 16 countries
Packaging Technology

· Industrie 4.0 pilots started

Potential for Industry
· Selling of IoT-Products to strengthen industrial suppliers
· Adoption of IoT-Technology in European value networks

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In future factories a single
object determines its production
flow and not vice versa. This
allows unprecedented flexibility
and optimal use of resources.
Prof. Dr. Henning Kagermann
acatech – National Academy of Science and
Engineering
Co-Chair of the Industrie 4.0 Working Group
Former SAP CEO


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Smart Factory: Part of the IoTS

… increases the flexibility & agility in production

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Flexible Production: More Customer orientation

… profitable production for lot size 1

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Wertschöpfungsnetzwerke: Beispiel Werk Homburg

Zulieferer

Automobilhersteller

Einsatz der RFID-Technologie über gesamte Wertschöpfungskette
· Ergebnis: Produktivitätserhöhung um 10 % und Bestandssenkung um 30 %
· Transparenz und Flexibilität führt zu optimaler Ressourcenauslastung

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G1 | 06.06.2013.04.2013 | © Robert Bosch GmbH 2013. Alle Rechte vorbehalten, auch bzgl. jeder Verfügung, Verwertung, Reproduktion,
exploitation, reproduction,sowie fürdistribution, as well as in the event of applications for industrial property rights.
Bearbeitung, Weitergabe editing, den Fall von Schutzrechtsanmeldungen.


Value Networks: Business Innovation

Chains become Networks: Data exchange, business process APIs

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Do you see the
next production
revolution here?

39



Shapeways.com
is a leading
3D printing
market place
with 10,000 shops
and 60,000 new
designs per month

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Predictive Maintenance
How it works




Real-time compilation of machine and
sensor data
Rule-based analysis of machine data
to create malfunction prognosis



Mapping of maintenance processes



Flexible integration into Business-IT

Optimizing the
service offering


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Business Processes

Predictive Maintenance Components & functions



Tool-supported data analysis for prediction of faults
Automated maintenance process
Integration of third-party processes (logistic, purchasing, etc.)

Central Service Management





Shop-Floor



Predictive
Maintenance

Monitoring and reporting of
maintenance processes
Service ticketing management
Integrating business processes
(e.g. ERP, CRM System)

Remote Service
Portal Basic





CSM

Central Machine Health





Capturing machine sensor data
Monitoring of machine health
and production status
Data analysis using predefined
algorithms

Central access to machines and systems via web UI
Remote software updates
Transparent and centralized documentation

The service portal as central access point for customers and employees


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PdM

CMH

RSP


Predictive Maintenance Business Ecosystem
- Domain know how
- Parts Service

- Communication
- Data transport
- Data security

- IT Systems
Integration
- Data
transformation

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Tier x,
Part
Supplier

M2M /
Telco

SystemOEM

Machine
Operator

IT System
Integrators

- System know how
- Customer lock in
- Machine Service
- Spare part mgt.

Predictive Maintenance value
- OEE increase
- process improvements
- TCO, MRO
- stock costs reduction

ERP
Provider

- IT systems for
Business
- Workflows
- Data transformation


Maintenance
Services

-Selected domain
know how
- Field Service

- Machines Access
- System
MES
Integration
Provider - Interface to ERP

Solution
Provider

- domain know how
- Method and
Algorithm know kow


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Plattform Industrie 4.0: BITKOM, VDMA, ZVEI


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Degree of Openess
GNU

Linux

Apache

Open

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Closed


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In a nutshell...


The Internet of Things & Services merges
the physical and virtual world



Business Ecosystems are key for success in Internet of Things



Hottest Germany’s Business Ecosystem Candidate: Industrie 4.0


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http://blog.bosch-si.com

Q&A

Follow me on

Dr. Stefan Ferber

Vice President Business Development
stefan.ferber@bosch-si.com, Tel +49 (711) 811-58114

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@stefferber

Business Ecosystems in the Factory of the Future

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