Ussal Şahbaz Innovation Leader GE Turkey 14 October 2016 IP2016 Istanbul Early deindustrialization in emerging markets At which point deindustrialization has started Income ID: 809394
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Slide1
Industrial Internet of Things: An emerging market perspectiveUssal ŞahbazInnovation Leader, GE Turkey
14 October
2016,
IP2016,
Istanbul
Slide2Early deindustrialization in emerging markets
At which point deindustrialization has started?
Income
per
Capita
Employment share of the industry
yı
Source
:
Rodrik
, 2014
Slide3Yet emerging markets are
more
optimistic
about Industry 4.0
Over index
Under index
Global average
68%
Source
: GE Innovation Barometer, 2016
Slide4Global productivity in manufacturing is slowing down4
Increase in labor productivity in manufacturing
Source
: OECD
Slide5Industrial outcomesOne platform for OT & IT teams to collaborate and innovate
=
Productivity in 21
st
century: physical + analytical
5
Analytics
Physics
GE Digital
GE Aviation
+
+
+
Data
Continuous
& accessible
StatisticsUnlock trends, segment
PhysicsApply
engine
expertise
Slide6Building blocks of Industrial Internet
Slide7Technical challenges to connect and
make machines intelligent
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$
Shut
Down
2. Labor intensive
to update hardware alongside tightly coupled software
1. Extended downtime
of machines to update and reboot software
3. Limited
analysis and processing of data due to no standard and scalable architecture from edge to cloud
4. Lack
of interoperability across machines due to
non-standard interfaces
5. Error-prone
to maintain dozens of proprietary software stacks
x
x
x
Slide8Now, machines become software-defined
1. More uptime,
due to ‘hot’ software upgrades
5
.
Resiliency and efficiency,
with standard way to develop and deploy machine apps
3. Unlimited compute,
with standard distributed architecture from edge
to cloud
2. Automated
software updates, without change in hardware
4. Interoperable machines
, with standard interfaces that apply across machines
Slide9GE & THE DIGITAL INDUSTRIAL TRANSFORMATION
Industrial Internet Capability
Low
High
Domain Expertise
Software-focused companies
Larger market cap/
Major technology companies
Vertical Players
(highly fragmented markets
accross
all industry verticals)
Industrials
Slide10Purpose-built for the security and scale needed by industrials
Optimized for asset data models and operational workflows
Designed for Industrial Big Data and analytics
Provides modern development approach for faster Innovation and lower TCO
Why a New Kind of Platform?
10
Strategic Inflection Point: How will our customers develop, manage, and secure the coming wave of Industrial Internet of Things apps and services that will transform their industries?
Slide11Predix: Machine to Cloud Platform as-a-Service
11
© GE Confidential – DO NOT DISTRIBUTE TO THIRD PARTIES
Slide1212 month releases10 applicationsZero user feedback
7 day releases
100+ apps
Instant user feedback
12
Modern App Development
is the essence of software-defined machines
DevOps and Continuous Delivery
Slide13Software developer count (million)Application count
(mil
lion
)
We are here in the industrial internet
Where is the opportunity? Industrial v consumer InternetSource: GE White Paper “Moment of Industry” 2016
Slide14Software-defined machines need a PlatformBack-end:ERP
Accounting
Human resources
…
Front end:
Customer relationsManagement of supply chain
…
Operations
PREDIX
CLOUD
Supply chain
Supply chain
Opera
tional technologies
Slide15Applications: Asset Performance Management for Locomotives
Slide16ApplicationsCurrent by GE: Example of as-a-service model
Slide17APM powered by
Predix
TM
Improve reliability and availability of GE and non-GE equipment,
reduce Total Cost of Ownership, and reduce operational risks with
APM
powered by
Predix
TM
Machine and
Equipment Health
Get a complete, accurate, and centralized view of your assets, their current state, and health.
Reliability
Management
Predict and diagnose equipment issues so you can Respond before assets fail.
Maintenance Optimization*
Balance reliability, performance,
and costs to develop the best maintenance strategies.
Slide1818
Occupancy
Humidity
Light level
Pressure
LED
Pick up types
of data:
Gateway
Sensor
VLC
Modulated Light
Intelligent cities & environments:
Lighting is now all knowing
Growing ecosystem of partners
Retail analytics using IPS to optimize shopping experience and operations for stores
RFID inventory management using IPS to track products for replenishment and delivery
Customer Engagement leveraging IPS to provide information to customers
Temperature
VOC
Control system
Workplace management and utilization solution leveraging occupancy sensor data
Meeting room utilization analysis using occupancy sensor data for better space management
Predix
Platform
Noise
BLE Beacon
GE Confidential – DO NOT DISTRIBUTE TO THIRD PARTIES
Slide19Applications
Brilliant Manufacturing
Virtual Product Design
Virtual Manufacturing
Supply Chain Network
Production feedback loop
Service/Repair Shop
Design feedback loop
GE Confidential – DO NOT DISTRIBUTE TO THIRD PARTIES
Slide20Digital + LeanWhat is the purpose?Service:
Sustain high rate of RK
W
ill reduce the risk
/
cost to secure high rate (overtime cost, air freight etc.)Cash: Inventory
Reduction
WIP reduction via Lead time reduction
Dead/Obsolote/Excess Inventory reduction
Cost
Reduction:
Lower Labor Productivity (man*hour) from Direct and Indirect labors
How it will be done?
Key actions to get to Brilliant Infra L3:Digitized build process (MES) ERP/MES interface preparation
Process Control (CTQs and SPC) L
abor tracking – Dry run Predix Edge Analytics software (business expct.) Roll-out Predix (business expct.)
Key actions to get to Lean L3:
Value Stream Mapping
Visual Execution Tool
One Piece Flow
What are key risks and barriers?
Site Readiness/Culture:
Strong leadership engagement
ERP/PLM culture is in place
Resources:
Engage/Dedicate operational teams in Q
2
Define training roadmap/External Lean Support
Infrastructure design, timing, and analytics
Infrastructure/Analytics:
SAP/PTC PDMLink is in place
Funding:
To be clarified
Slide21Current education system is suitable for immigrant laborThe importance of the immigrant labor is increasing
84
%
agree
Labor
71
%
agree
Managers
59
%
54
%
Please see notes for question details
Although the labor is changing around the world, the system can not..
Source
: GE
Innovation
Baromet
er
2016
Slide22Income inequalities: Ratio of average wage earnings of college v high school grads in the United StatesKaynak: Acemoğlu, 2014
Slide23How will digitization impact
employment
?
Source: GE Innovation Barometer 2016
A positive impact on employment
A neutral impact on employment
A negative impact on employment
Don’t know
Slide24What do the employees want?
Flexible working hours
Participatory management
Working from home
Flexible holidays
Open office
Minimum hi
erarchy
Satellite offices
Par
ticipator
y salary setting
Hot
deskingSource: GE Innovation Barometer 2016
Slide25What does the business executives want?
Global
executives
Turkish executives
Source: GE Innovation Barometer 2016
Slide26Is Turkey ready for the digital industry?
Labor
market
Experiance
Level
Flexible educationUnderstructureLegal protection
127
55
60
58
77
Ranking of Turkey
Source: UBS Industry 4.0 White Paper
Slide27Prologue: Price – book value ratio of public hardware and software companies
SECTOR
-
COMPANY
RATIO
HardwareMachine sector1,3x
Electrical equipment sector
1,3xMedicine sector3,0x
Software
Software
sector
5,0xGoogle6,2x
Apple3,4xHardware +
SoftwareTesla13xPrice – Book value ratioSource: GE White Paper “Moment of Industry” 2016
Slide28GE Turkey Innovation CenterInnovation that localized in order to solve customer problems
GE Innovation Center
Kurtköy,Teknopark
Sabiha Gökçen International Airport
Osman Gazi Bridge
GE Headquarter
GETechnology Center
L
ocated
at Kurtkoy at the manufacturing heartland of
Turkey
Out
of Turkey’s largest 250 manufacturing establishments, 131 are located in 1-hour driving distance from the Center. They provide 71% of the total turnover of top-250 manufacturing companies.
10 minutes to Sabiha Gökçen International Airport which has flights to 45 cities in Turkey and 34 different coutries.
Slide29For more information:USSAL ŞAHBAZGE Turkey Innovation L
ead
er
Ussal.sahbaz@ge.com
90 (533) 695 51 28
GE GLOBAL@GE_Reports http://www.gereports.com/
GE TURKEY@GE_Turkiye
http://geturkiyeblog.com
Slide30