How the Internet of Things (IoT) will impact customer experience, operational costs and new business models

How the Internet of Things (IoT) will impact
Customer experience, Operational costs and New
Business Models
Navaid Khan
Field CTO Americas - Telco and M&E
Hitachi Data Systems
May 2017

© Hitachi Data Systems Corporation 2015. All rights reserved.2
City of Invention: Dayton remains a cradle of creativity
U.S. Patent and Technology Office records show
that more than 3,500 technology-class patents
have been awarded to people or companies from
Dayton between 2000 and 2015.
-Dayton Daily News March 22, 2017

WE’RE IN THE MIDDLE OF
A DIGITAL REVOLUTION
EVERY INDUSTRY IS CHALLENGED BY DIGITAL
DISRUPTORS
© Hitachi Data Systems Corporation 2015. All rights reserved.

IoT will be bigger than anything that
has ever been done in high-tech.
– John Chambers
IoT has a total potential
economic impact of $3.9 trillion
to $11.1 trillion a year by 2025.

11
Key IOT Technology
Enablers

Augmented Reality in Smart Manufacturing

Augmented Reality Wearables in Operations

AA.I. is an Umbrella Term Definition(s)
Artificial Intelligence refers to a broad set of algorithms and
methodologies that enable software to improve its performance over
time as it obtains more data
Common AI Technologies
Reactive Machine – purpose built. eg. winning at chess
Neural networks – interconnected nodes
Deep Learning – Interconnected nodes with multiple layers
Cognitive Computing – combination of AI technologies

19
IOT and Changing
Business Models

New technologies usher in Changes in Business Models

IOT Creates New Opportunities

2318 © Hitachi, Ltd. 2016. All rights reserved.
Industrial IoT
Challenges in Manufacturing

© Hitachi, Ltd. 2017. All rights reserved.
Manufacturing Challenges
PRODUCTIVITY
AND QUALITY
ARE IMPACTED
BY ANOMALIES EXCESSIVE
TIME AND
EFFORT SPENT
‘FIRE FIGHTING’
PRODUCTION
SHIFTS RARELY
GO AS PLANNED END-TO-END
VISIBILITY OF
OPERATIONS
IS POOR
© Hitachi Ltd. 2017. All rights reserved.

Traditional Factory IT Capabilities: Disparate Systems
ü Collection of ‘point solutions’ from different ages
ü Information in silos, ERP, PLM, MES
ü Fragmented databases
ü Lack of full value stream analytics
ü Costly integration & maintenance
ü Interdependencies & points of failure
ü Multiple versions of the truth
ü Lack of external data integration

Optimized Factory Journey
© Hitachi Ltd. 2017. All rights reserved.
Quality
Monitoring
Efficiency
Optimizer
Predictive
Maintenance
Connect
Visulize
Dynamic
Scheduling
Predictive
Quality
Crowdsourced
Manufacturing

Increasing Product Quality with IoT and Analytics
TRANSFORMATION
§ 3D cameras and Image
Analytics technology
dramatically improves
the time to discovery of
machine and materials
defects
§ Reduces the risk of
product recalls

Predictive Maintenance
Caterpillar Marine Asset Intelligence
Saving up to $750K per ship by reducing downtime, fuel and
maintenance cost
TRANSFORMATION
§ Data integration from
sensors and other
sources cuts time and
resources needed to
access data
§ Predictive analytics to
optimize equipment
maintenance

CONFIDENTIAL – For use by Hitachi Data Systems employees and other audiences under NDA only. © Hitachi Data Systems Corporation 2015. All rights reserved.32
Hitachi Delivers Rail-as-a Service in UK
A Prime Example of IoT Solution
Making trains smarter with OT + IT for preventative maintenance. Targeting
100% uptime using IoT sensor, video monitoring and real time analytics.
RCM WORKSHOPS
§ RCM Facilitator
§ Systems Engineer
§ Fleet Engineer
§ Depot Tech.
§ Suppliers
SUPPORT
FUNCTIONS
§ Parts / materials
§ Logistics
§ Purchasing
§ Stores
RCM GROUP
§ RCM Facilitators
§ Maintenance
Specialists
Project
Allocation
Maintenance
Tasks
System
Configuration
CBM
Needs
Notification
TrainLink
DEVELOPMENT
§ IT Architect
§ Software Developer s
§ System Designers
DATA
DEPOT MAINTENANCE
§ Fleet Engineering
Support
§ Work Schedule:
- Tech Supervisor,
Techs
FLEET PLANNER
§ Develop schedule
§ Optimization
§ Business Focus
DATA ANALYSIS
§ Interaction
§ Pattern explanation
§ Algorithm Developm ent
§ Data researcher
CENTRAL
CONTROL ROOM
HRE Maintenance
Controller / Customer Rep:
§ Real-time support
§ Knowledge
FLEET ENGINEER
§ Technical Knowledge
§ Review Notifications
§ Testing Requirements
§ Detailed Information
§ System Specialist
Hardware
WORKING
TOGETHER
Hitachi Ltd.
Hitachi Rail
Hitachi Consulting
Hitachi Data Systems
Pentaho
Vodafone

Smart City
Intelligent Operations and Public Safety

Cities are on a mission to become Smarter and Safer
for
faster economic growth and enhanced quality of life
Airport
• Operational
Awareness
• Passenger
Experience
• Security
• Store Sales
Retail
• Customer
Activity
• Shopper
Experience
• Store Sales
and Marketing
Campus
• Occupancy
Tracking
• Safety
• Situational
Awareness
Transportation
• Safety
• Traffic
• Parking
• Ridership
• Road
inspection
Police
• Real time
Situational
Awareness
• Crime
Prevention
• Evidence
Management

Public Safety requires
Real-time Situational Awareness

Public Safety requires
Real-time Situational Awareness
Disparate, Proprietary,
Unmanageable,
Laborious, Inefficient
Smart
Phone
License Plate
Reader
Public and
Private Video
Similar Face
Search
Emergency
Dispatch
Gunshot Sensors
GPS
Social
Media
Hitachi Public Solution for best Situational Awareness

Washington DC (Business Improvement District)
City’s Challenge
• Disparate public and
private systems challenged
situational awareness
Public Safety Solution
§ Integrated all cameras,
gunshot detectors, license
plate readers, 911 systems
§ Teamed with private entity’s
video management systems
§ Delivered a map based,
single view
© Hitachi, Ltd. 2016. All rights reserved.10

Intelligent Transportation for NY Waterway
Challenge
‒ Lack of awareness of what is happening on the ferries and
terminals
‒ Multiple dashboards to manage security assets
Solution
‒ Hitachi IoT solution allows NYWW to manage video from
disparate systems on a unified web-based platform
‒ HVS provides the integration with VOIP phones, PA, AIS
data and other sensors (vessels’ telemetry)
Benefits
‒ NYWW is now more prepared to control any type of crisis
‒ From a single dashboard, NYWW can now monitor and
share their assets in real time with NYPD, NJ/NY Port
Authorities and other federal agencies
“This [Hitachi Visualization] solution
enhances our security by integrating our
cameras, our DVRs, our wireless
antennas into one central communication
system. It also gives us the flexibility to
stay on board and see what is going on in
real time on our vessels.
– Jonathan Figueroa, Director of Facilities,
Billybey Ferry Company
The largest privately owned
commuter ferry in the US chose
Hitachi to manage their security
assets (terminals and ferries)

Retail and Passenger Journey Experience Solution
for London City Airport
Challenge
‒ Airlines and airports seeking to increase passenger
satisfaction and retail revenue
‒ Passengers spending unnecessary time on travel logistics
at airports e.g. parking and queuing
Solution
‒ Advanced analytics solution captures real time and
actionable metrics on passengers e.g. dwell time and
footfall, allowing for delivery of tailored promotions and
messaging
‒ Solution including Bluetooth beacons, Microsoft® Azure®
IoT, and Xamarin® for cross-mobile platform development
Benefits
‒ Optimized airport time usage and minimized wait times
‒ Increased retail revenue
16

Predictive Maintenance For Agility Trains
Challenge
‒ Modernize and improve rail transportation on busy intercity
routes within U.K
‒ Reduce maintenance costs and improve on-time
transportation service
Solution
‒ Advanced trains with embedded IoT sensors and advanced
big-data analytics S/W for predictive maintenance
Outcomes
‒ Improved service delivery and reduced maintenance costs
backed by a 27.5 year long-term reliability usage guarantee
to U.K government & passengers
A consortium that includes
Hitachi Rail Europe,
established to deliver on the
U.K’s Department of
Transportation Intercity
Express Programme (IEP) to
improve rail service on some
of Britain’s busiest intercity rail
routes

Business Data
Human Data
Machine Data
Lumada - Illuminate the Data

Connect every Hitachi
Machine to Lumada

Bring every Hitachi Machine
to Life through Software

How the Internet of Things (IoT) will impact customer experience, operational costs and new business models

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