Enterprise World 2014 - Manufacturing Industry Breakout Session

Digital Disruption Across Tomorrow’s
Manufacturing Supply Chains
Mark Morley, Industry Marketing Director

Copyright © OpenText Corporation. All rights reserved.#OTEW2014
Manufacturing 2.0, Rebooting Today’s
Global Supply Chains…
Global recession, wage strikes, natural disasters and increasing
regulatory compliance are leading to manufacturers having to
restructure their global supply chains

Today’s Manufacturing Industry
 North America, UK, Germany, China and
Japan lead global figures for production
output
 Manufacturers continue to globalize
production facilities and de-centralize
design and engineering departments
 Automotive and high tech industries are
increasingly consumer-driven, which is
leading to many new supply chain
transformation projects
 New technologies such as the Internet of
Things will drive the ‘4th industrial
revolution’

Today’s Manufacturing Value Chain
Distributed Operations in Multiple Countries
Near-Shoring
2010 Onwards
China Globalization
2014 Onwards
Regional
Marketing &
Sales
Manufacturing
Distribution
Sales
Manufacturing
Research
& Design
Manufacturing
Shared
Services
Sales
Distribution
Global HQ
Sales
Shared
Services
Sales
‘BRIC’ Markets Expansion
2000 Onwards
(BRIC = Brazil, Russia, India, China)
‘MINT’ Markets Expansion
2014 Onwards
(MINT = Mexico, Indonesia, Nigeria, Turkey)

From BRICs to MINTs
 After significant growth,
BRICs starting to
experience difficult market
conditions
 Inward investment to the
BRICs is reducing due to
an increasing interest to
invest in new low cost
markets
 Fastest growing new
markets collectively known
as the MINTs

Introducing the MINT Countries
 MINT is term coined
by former Goldman
Sachs economist, Jim
O’Neill, who also
introduced the BRIC
term ten years ago
 Analysts estimate that
the MINT countries
could enjoy similar
double digit growth as
China saw between
2003 and 2008

Evolution of the Digital
Manufacturing Business

Traditional Manufacturing Value Chain
 Information resided in multiple departmental silos
 Difficult to find and navigate through information
relating to a particular product
 Lack of inter-departmental information exchange
and collaboration
 Business expansion led to information replication
and multiple instances of key business systems
such as ERP
 Product design department traditionally led
process automation initiatives and IT adoption
Product Design
& Engineering
Manufacturing
Supply Chain
Management
Marketing,
Sales & Service
Traditional Value
Chain
Source: Cap Gemini Consulting Analysis

LevelofDigitalPervasiveness
High
Low
Design
Production
Design
Production
Purchasing
Marketing
Design
Production
Purchasing
Field Support
Logistics
Marketing
Design
Production
Purchasing
Sales
Field Support
Logistics
Marketing
Design
Production
Purchasing
1980 - 1990 1990 - 2000 2010 - 2020
Design & Production
Automation
Computer Aided Design
& Manufacture
Digital Mockups &
Collaborative Design
Collaborative PLM &
Cloud Connected Digital
Business
1970 1980 1990 2000 2010 2020
Evolution of the Digital
Increased digitization of information over the
decades has allowed more departments across
the extended enterprise to access & utilise this
information
Electronic Product
Definition

Digital Information Powers the
Integrated Value Chain
 The Integrated Value Chain relies
on digital information to automate
and accelerate internal operations
 A centralized digital information
hub:
 Drives product innovation
 Improves production efficiencies
 Provides global agility
 Increases customer satisfaction
Source: Cap Gemini Consulting Analysis
“Digital Transformation is not a quick-fix solution within rigid manufacturing processes
and resources, but a long-term commitment and imperative”
Digital Product
Design
Digital Shop
Floor
Digital
Customization
Digital
Supply Chain

Enterprise Information Management (EIM)
Information
governance,
security and a
single source of
truth
Enterprise
Content
Management
Process velocity,
flexibility, quality,
efficiency
Business
Process
Management
Rich experiences
across channels
and devices,
personalized to
the user
Customer
Experience
Management
Secure transfer of
information within
and between
organizations
Information
Exchange
Find the right
information at the
right time
Discovery

How EIM Supports the Lifecycle of a
Manufactured Product
Market / Customer
Requirements
A
Product Design &
Engineering
B
Prototype
Testing & Compliance
C
Procurement /
Supplier Onboarding
D
Manufacturing
Engineering
E
Product
Production
F
Product
QA & Certification
G
Plant Maintenance &
Asset Management
H
Ship to Distributor or
Retail Network
I
Online / Store
Customer Experience
J
Aftermarket
Service & Support
K
Recalls &
Warranty Repairs
L

Managing Information Across the
Lifecycle of a Manufactured Product
Market/Customer
Requirements
Product marketing
department to undertake
information gathering
about market or customer
specific requirements to
understand specifications
for new product/equipment
design
Product Design &
Engineering
Any information associated
with the design of a
product, eg CAD files or
specifications will need to
be stored via a LOTAR
initiative, may also need to
be exchanged internally or
externally with contractors
Prototype
All product test data
including materials testing,
stress analysis results,
performance tests and
environmental test
information should be
retained and archived as
part of LOTAR initiative

Procurement /
Supplier Onboarding
Suppliers will need to be
identified & onboarded,
procurement contracts
drawn up and archived.
B2B solutions will need to
be deployed and supplier
contact information
centrally managed
Product
Production
Assembly instructions, bill
of materials, video
tutorials, essentially any
information used in the
assembly of a product or
piece of equipment could
be made available on the
shop floor
Manufacturing
Engineering
Product related engineering
information could be used
to help design jigs and
fixtures or develop tool
paths for machining of
castings. Plant maintenance
schedules will need to be
drawn up

Plant Maintenance &
Asset Management
All equipment on the shop
floor will need to be
maintained and tested to a
high standard, for example
robots, milling machines,
lathes and any other
equipment used to
manufacture products
Product
QA & Certification
Each product needs to be
tested to ensure
performance compliance
and all results need to be
archived for future use, QA
& performance certificates
will need to be archived
Retail Network
Logistics and Shipping
information needs to be
sent to OEM or Service
Centre. Contact & contract
information for logistics
providers needs to be
maintained and archived in
a central location

Aftermarket Service &
Support
Aftermarket service centres
and remote field service
engineers need access to all
information associated with
a product or piece of
equipment, eg drawings, 3D
CAD Models, dis-assembly
instructions and videos
Online / Store
Customer Experience
Customer experience needs
to be consistent across
main website and any
support related sites as well
as across mobile devices.
All downloadable media
needs to be presented and
managed effectively
Recall & Warranty
Repairs
Any future product recall
process or warranty repair
situation will need to be
managed effectively. Any
safety related issues will
require getting access to all
archived information for
fault traceability purposes

How EIM Supports the Lifecycle of a
Manufactured Product
Market / Customer
Requirements
A
Product Design &
Engineering
B
Prototype
C
Procurement /
Supplier Onboarding
D
Manufacturing
Engineering
E
Product
Production
F
Product
QA & Certification
G
Plant Maintenance &
Asset Management
H
Retail Network
I
Online / Store
Customer Experience
J
Aftermarket
Service & Support
K
Recalls &
Warranty Repairs
L
Enterprise Content Management Customer Experience Management Business Process Management Information Exchange Discovery Appworks

Managing Digital Information Across a
Market / Customer
Requirements
A
Product Design &
Engineering
B
Prototype
C
Procurement /
Supplier Onboarding
D
Manufacturing
Engineering
E
Product
Production
F
Product
QA & Certification
G
Plant Maintenance &
Asset Management
H
Retail Network
I
Online / Store
Customer Experience
J
Aftermarket
Service & Support
K
Recalls &
Warranty Repairs
L
Enterprise Content Management Customer Experience Management Business Process Management Information Exchange Discovery Appworks

Managing Digital Information –
Product Design & Engineering
 Any information associated with the
design of a product will need to be
centrally managed
 Government regulations may require CAD
data to be archived under a Long Term
Archival and Retrieval (LOTAR) policy
 Design information may need to be
exchanged with external design partners
and suppliers
 Compliments an existing PLM archival
system
• 3D CAD/CAM Models
• 3D Printing Files
• 3D Visualization Models
• 2D Drawings
• Production Information
• Product Bill of Materials
• Stress Analysis Test Reports
• Environmental Test Reports
• Materials Testing Reports
• Materials Specifications
• Product Specifications
• Videos/Animations/Renderings

Procurement / Supplier Onboarding
 Suppliers will need to be identified, on-
boarded and managed on an ongoing basis
 Contract and Contact information for every
supplier will need to be centrally managed
 Each supplier will need to be contacted to
identify existing B2B and ICT capabilities
 Appropriate B2B technologies, either
software or web-based portals, will need to
be setup
 Adherence to regulatory compliance
initiatives
• Supplier Contract Information
• Supplier Contact Information
• Protocol/Document Mediation
• B2B Connectivity Testing
• B2B Document Mapping
• Implementing Appropriate B2B
Software/Web Portal Solutions
• Backend Systems Integration
• Adhere to GRC Initiatives, e.g
Electronic Invoicing
• Community Management
• 24/7 Helpdesk Support

Plant / Asset Management
 All production-related equipment will
need to be proactively maintained,
including assembly & handling
equipment, machining centres and
utilities equipment
 Maintenance teams will normally follow
some form of standard process or
procedure
 Maintenance teams will need mobile
access to a centralized repository of
information for all plant equipment
• Maintenance & Test Procedures
• Equipment Monitoring
• Assembly & Disassembly Videos
• 3D Plant Design Models
• 3D CAD Equipment Animations
• 2D Equipment Drawings
• 2D Utilities Diagrams
• Equipment Test Procedures
• Equipment Test Certificates
• Sub-contractor Information
• Regulatory & Compliance Info.

Online / Store Customer Experience
 OEMs need a fast and secure way to
manage and exchange media files across
retail networks
 Any type of retailer, whether car,
motorbike, consumer goods or high tech
will need to exchange information with
their HQ location
 All aspects of the customer experience must
be consistent across online and in-store
platforms
 Centralized access to customer-related
information brings significant business
benefits
• Product Brochures
• Promotional Videos & Adverts
• High Resolution Images
• 3D Computer Graphic Animations
• Product Training Videos
• Technical Bulletins
• Advertising Agency Collaboration
• In Store Graphics/Designs/Layouts
• Website Design & Management
• Mobile Platforms & Social Media
• Online Product Catalogues
• Online Product Configurators

Aftermarket Service & Support
 Aftermarket service centres and remote
field service engineers need access to all
information associated with a product
 Information must be accessible remotely
via ruggedized mobile devices
 Replacement parts may need to be
ordered/despatched from central
warehouse
 Product repairs may be part of a recall or
warranty related process
• Repair & Test Procedures
• Assembly & Disassembly Videos
• 3D Visualization Models
• 2D Product Drawings
• Product Specifications
• Warranty & Recall Procedures
• Regulatory & Compliance Info.
• Product Test Certificates
• Fault Diagnosis Routines
• Spare Parts Ordering Portals
• Technical Service Bulletins

The Future of the Digital

How will Information Technology Impact
Your Company in the Year 2020?

Data
Cloud
Mobile
Apps
Security
Social
Governance
SaaS
Disruptive Innovation
 We are living in a time
of massive disruption
where information and
the way we use it is
changing the rules
of business
 Information is at the
heart of the disruption

The Digital Age
 Information drives innovation
and growth
 Information leads to greater insight,
higher customer satisfaction,
accelerates time to market, helps to
open new opportunities, and
enables you to remain competitive
 Information is a key strategy
component for every organization

Gartner Technology Trends - 2015
By 2018, the total cost of
ownership for business
operations will be
reduced by 30 percent
through the adoption of
smart machines and
industrialized services.....
Gartner, October 2014
1. Computing Everywhere
2. The Internet of Things (IoT)
3. 3D Printing
4. Advanced, Pervasive, Invisible Analytics
5. Context Rich Systems
6. Smart Machines
7. Cloud/Client Architecture
8. Software Defined Infrastructure
9. Web Scale IT
10.Risk Based Security & Self Protection

Cloud Deployments in Manufacturing
 Simplifies the deployment and management of global IT infrastructures
 Allows manufacturers to quickly scale up or scale down production
 Design information is now accessible by anyone across the enterprise
ERP B2B PLM

Today’s Manufacturing Operations are
Entering a Period of Significant…..
D
I
G
I
T
A
L
D I S R U P T I O N
New Sources of Unstructured Information Will Need Managing Across the Enterprise
4G Networks
Cloud
B
Y
O
C
Internet of Things
W
I
F
I
PaaS
5G Networks
Smart Grids
Mesh Networks
Big Data
Social Networks
Remote Monitoring
Analytics
Mobile Apps
NFC Payments
SAAS
S
E
C
U
R
I
T
Y T
E
L
E
M
A
T
I
C
S
Sensors
RFID
Smart Phones
Tablets
B
Y
O
D
Connected Devices
3D Printing
Drones
Wearable DevicesMass Storage
M2M
Robots

Tomorrow’s Supply Chains Will be Impacted
by a Nexus of Disruptive Technologies
Wearable
Devices
Devices, such as
Google Glass, will
transform how
digital information
is accessed &
shared across the
enterprise
allowing
3D
Printing
3D Printers will
manufacture parts
on demand and
contribute
towards the
introduction of the
‘zero length’
supply chains
Drone
Logistics
Drone aircraft will
transform the
delivery of
parts/finished
goods to customers
across short
distance logistics
networks
Future EIM platforms will need to embrace these technologies….
Internet
of Things
Introduction of
more connected IoT
devices /equipment
will allow
manufacturers to
develop more
responsive supply
chain networks
Advanced
Robotics
Next generation
advanced robotics
will work side by
side with human
operatives, helping
to automate more
production
processes

 Devices, such as Google Glass, set to revolutionize
how employees interact with their work
environments
 Many manual-focused jobs require hands to be free
at all times
 Glass, for example, brings data-rich information to
the user in real-time
Wearable Devices

Wearable Devices – Warehouse Picking
OK Glass,
Trace Shipment
Locate Part in Warehouse
Scan Barcode
Contact 3PL Provider

3D Printing
 Technology entering the enterprise and general
consumer markets
 Products can be made using a variety of materials
including metal
 Likely to revolutionize production, as machine costs
come down
 HP is evaluating market as an extension of their printer
business

 Technology is not new, been around for over twenty
years, formerly rapid prototyping, stereolithography
 Limited production area, restricts type of products
that can be made
 Relies on having a 3D representation of a product,
either as a CAD model or a 3D scan based
representation
3D Printing

HP Sprout PC & 3D Printer – 29th October 2014

HP, a Leader in Multi-Colour 3D Printing

3D Printing Examples

Most Ambitious 3D Printing Project?

Introduction of Zero Length Supply Chains?
Original OEM Part
3D Printed Part
 3D printing could potentially revolutionize the service
sector
 Certain replacement parts could be printed instantly at a
service location
 Combined with IoT, parts could be manufactured before
existing parts experience wear or stress failure

Advanced Robotics
 Google acquired 8 robotics companies in 2013, looking
to develop Android-based robotics operating system
 One goal of robotics division is to help high tech
companies automate manual-based assembly
processes
 Contract manufacturer Foxconn seen as perfect test
environment, however will Google robots be
assembling iPhones?

Foxconn Automation, Goal = 1M ‘Foxbots’

Foxconn Automation, the Reality

Say Hello to ‘Baxter’

Amazon Prime AIR
 Amazon aims to offer a 30 minute delivery service via
fleet of drones
 FAA is due to introduce regulations in 2015 for drone
operation/safety
 Amazon likely to acquire drone manufacturing
companies, will then own part of their logistics
network

The Future of Expedited Shipments?

Rolls-Royce Drone Ships?

The Internet of Things -
What Exactly is it?
Internet of Things (IoT)
Internet of Everything (Cisco)
Industrial Internet (GE Software)
Industry 4.0 (Bosch)
Machine to Machine (M2M)
Connectivity Across the Internet
“Any machine or device connected (via
fixed wire or wireless communication) to
the internet & being able to transmit
information in one form or another”
IDC - 200Billion connected devices by 2020
Cisco - Estimates market size at $14.4Trillion

Digital Information is now Feeding the
Fourth Industrial Revolution
Industrie 4.0
Source: Bosch

Core IoT Building Blocks
Sensors
Dedicated
Processor
Internet /
Dedicated Network
Big Data
Storage
Analytics &
Reporting
Key Characteristics = Energy Efficient + Cost Effective+ Quality & Reliable + Secure
WiFi or 4G
Comms
Devices /
‘Things’

Home Automation
Nest provides an internet-enabled range of devices for home
automation applications, this example shows a thermostat

Home Automation Communications
LG has developed a home hub to allow consumers to send text
messages to remotely control household appliances

Utilities Infrastructures
Utilities companies in Barcelona, Spain have installed internet-enabled
refuse bins to help identify whether bins are full or empty

Connected Vehicles
Tesla Motors offers one of the most advanced connected cars on the
market today, the Model S sedan

Remote e-Health Monitoring
E-Health is expected to be a major beneficiary of IoT based devices, for
example this e-Pill has a built-in high definition video camera

IoT Related ROI
Source: Cisco

How Will IoT Impact Global Supply Chains?
 Exponential growth in data flow across future supply chains
 IoT will impact future supply chains in many different ways:
Predictive
Maintenance
Self diagnostics identify
failing components
resulting in automated
parts ordering
Pervasive
Visibility
End to end visibility of
shipments from point of
manufacture to point of
delivery
Proactive
Replenishment
Optimization and
automated ordering of
inventory at the
ultimate point of sale

1. Pervasive Visibility
 Business Case - Visibility of
shipments from the factory
to the point of delivery
 Example - Bosch developed
a virtual supply chain based
on inputs from an extended
network of RFID readers at
both their factories and
across their global network
of 3PL providers

2. Proactive Replenishment
 Business Case - Optimization
of inventory levels at the
ultimate point of sale
 Example - SAP developed a
HANA based vending machine
which tracks consumption
trends, makes alternative
buying suggestions & places
automated orders for new
stock

3. Predictive Maintenance
 Business Case - Self
diagnostics identify failing
components resulting in
automated parts order
 Example - RAC automotive
association in the UK offers a
retrofit module that can help
identify problems with a car
and notify driver before they
get too serious

EDIFACT
XML
SWIFT
OFTP2
IDOC
ANSIAS3
Contract Mfg.
Distributors
Customers
3PLs
Banks
Insurers
AS2
FTP
HTTPSSuppliers
B2B
HULFT
IDOCS
External Trading Partner Community
Managing Information Across Tomorrow’s
Digital Manufacturing Business
ERPPLM
Internal Enterprise Community
Procurement Production
Design
Marketing Sales
Service
HQ
EIM

B2B & Supply Chain Related Benefits
 Supply chains will become even more responsive
due to the sheer number of connected devices
monitoring the end to end movement of shipments
 Cross enterprise connectivity and collaboration will
significantly improve business process and overall
operational efficiencies
 Introduction of more closed loop, intelligent B2B
platforms and supply chains
 Significant investment in new cloud based solutions
will improve functionality and usability of next
generation supply chain platforms

Issues to Resolve
 Address the inevitable security and privacy issues
relating to IoT networks (in-house and third party),
eg ensure virus protection for connected devices
 Investment required to WiFi enable equipment,
deploy sensors, build out IP and cellular networks
 Introduce appropriate global standards to support
future IoT related platforms, setting up relevant
industry bodies such as the Industrial Internet
Consortium (Cisco, GE, IBM, Intel, AT&T)
 Avoid an IoT related ‘Dotcom’ style bubble of high
valuations on unproven companies or technologies

‘Facebook for Machines’
In the Future Every Connected Device Could Have an Online Profile

Manufacturing 2020
 Enterprise Information Management helps to
embrace digital disruption in order to Simplify,
Transform and Accelerate tomorrow’s Digital
 Continued globalization will fuel the need for a simplified &
centralized digital information hub
 Technology being introduced today is going to transform
tomorrow’s manufacturing operations
 The Internet of Things is going to improve visibility across
supply chains, accelerating business decisions and allowing
companies to be more responsive to their customers

Finally…….
New IDC Manufacturing Study!
 Survey undertaken across 270
companies in the High Tech,
Automotive and CPG sectors
 Survey responses from companies
located in 8 leading manufacturing
countries including South Korea,
Japan and China
 Report discusses how B2B
integration can help companies
drive superior supply chain
performance Session INX 422 @ 13:55
on Wednesday

Review of IDC
Manufacturing
Study
Panasonic
Round Table
Conflict Minerals
Reporting
Michelin
Case Study
IDC Customer
Panel
Columbia
Case Study
Industry
Strategist
Meetings
Birds of a Feather
Breakfast
www.opentext.com/OTIndustryInsights

Thank You
Mark Morley
Email: mark.morley@opentext.com
Twitter: @markmorley
About Me: about.me/MarkMorley

Enterprise World 2014 - Manufacturing Industry Breakout Session

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