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SEP 06, 2019

Industry 4.0 Digital Transformation

Force Multiplier for Growth
Rajesh Ramachandran, Chief Digital Officer, Industrial Automation Global
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ABB: Writing the future of industries in a changing world

2nd industrial revolution 3rd industrial revolution 4th industrial revolution

(19th century) (20th century) (21st century)

+ Electrification + Industrial automation + Digitalization

+ Motion + Robotics + Autonomous

September 17, 2019 Slide 2

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Industry 4.0 Digital Transformation
Key Takeaways

HOW

1 2 3
WHY WHAT
Industry Value Engineering
Digital is proving major Holistic Approach with Well
provides a proven approach to
impact on Operational defined Digital
achieve predictable outcomes
Excellence, Quality transformation strategy
with higher ROI and quicker
Productivity, Safety, aligned with business
Payback
Reliability and EBITDA processes and overall goals
is key.

September 17, 2019 Slide 3

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#1 Industry 4.0 Digital Transformation Marketplace
Huge, Real and Growing
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#2 Industry 4.0 Digital Transformation
Key Characteristics
Data is the New Oil & New
Currency. Life Cycle and Value
Stream Dimension of Industry 4.0
(RAMI 4.0) is all about turning Data
into Insights.
OT/IT/ET/Spatial Convergence
combined with Industrial AI and
Analytics helps to optimize both
operations and asset loop
providing significant opportunities
September 17, 2019 Slide 5
Digital has proven impact on
Operational and Business
Excellence, Productivity, Safety,
Maintenance, Reliability, Quality,
Supply Chain and Sustainability
Expanded Information Landscape
demands new Topologies for the
scale and Economics. Edge and
Hybrid Cloud are becoming
standard. With digitization there is
a strong need for security
Well defined Digital Transformation
strategy aligned with business
processes and overall goals is the
key. Ad-hoc deployment of Digital
Solutions do not help on their own
Industry Value Engineering provides
a proven approach to achieve
predictable outcomes with higher
ROI and quicker payback
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#3. I4.0 Intelligent Enterprise is Disruptive
IIoT Disrupts Traditional Way of Looking Data Landscape and Insights
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#4 Digital Transformation Driving Integrated Value Chain
Process – Asset – Plant – Enterprise Ecosystem Loop

Data Driven Wisdom for Process-Asset-Plant- Enterprise optimization

Planning
Plan production better with
complete system integration
for insights and accurate
forecasting to enable optimized
scheduling & closed loop
execution
Quarry
Track quality and optimize
Raw material through real-time
tracking of quality and optimize
stockpiles blending to reduce
quality variations
Grinding
Improve quality, save energy
through model predictive
control; and optimized raw
mix proportioning
Clinkerization
Improve throughput, reduce
thermal energy by maintaining
optimum combustion condition
and maximize alternate fuels
through model predictive
control and neural network
Thermal Power Plant Shipping & Logistics
Improve efficiency, reduce cost Enable just-in-time delivery
of power generation through through integration with
advanced process control, shipping and outbound
automatic GCV correction and logistics such as trains, port
increased utilization of control bulk load and other transport
system means

Digital infrastructure
Integrated communication
solution for cement plants
using WLAN, LTE, 5G –
modules for positioning, data
acquisition, IT integration, on
premise or in cloud
Enterprise Intelligence
Integrated activity and decision
support solution for cement
plants for assets, orders,
production planning, logistics,
workforce management
Digital workforce
Problem reporting and spot
resolution with real-time
visibility all enabled through
information, support on mobile
devices, increasing efficiency
and safety
Health & Safety
Crisis management capability
with proven support ability in
case of crisis situations /
exceptions, enhanced by real-
time tracking of personnel and
vehicle locations
Smart Asset Management
Smart plants that reflect best
practice and processes to
manage assets in short-term
and across lifecycle – leading
to maximized availability and
returns
Utilities Optimization
Utilities and byproduct gases
trend analysis and
benchmarking for optimization
of distribution, forecasting and
supply-demand balancing
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#5 Driving to the best of I4.0 Digital Value Chain
Achieve next productivity leap with digitalization; substantial and sustainable competitive advantage

Predictive & Prescriptive

Analytics (AI & Machine
Learning)

Diagnostic Analytics &

Optimization

IT – OT – ET – Spatial Integration

Digital Enablement of Equipment

& Sensors

Products and Operations Systems

Holistic Approach

17-09-2019 Slide 8 ABB Confidential

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Typical Business Benefits of Digital Transformation in Process Industries
Bottom line and Top line Impact

~5% ~20% ~5% ~10% ~20%

​Process Optimization ​Asset Optimization ​Quality Improvement ​Planning Efficiency ​Logistics Productivity

Productivity Predictive Data driven Fleet level Enterprise Automated

Improvement Maintenance Quality Control Planning Replenishment

Energy Performance Online Process Dynamic Production Material Handling

Optimization Improvement Validation Scheduler for Mills and Transportation

Reliability Smart
Warehouse

​Optimize the process by ​Improve OEE of assets by ​Improve product quality by ​Improve planning I​ mprove Worforce
usage of advanced model reducing (unplanned) in-line quality control incl. accuracy by efficiency in in-plant
predictive control (MPC) downtimes feedback loops to process comprehensive planning logistics and warehousing
and AI/ML parameters across fleets

..and Intangible Benefits including Process and Personal Safety, Value Stream, new Products and Solutions tailored for Market
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#6 I4.0 Digital Enterprise Continuum

17-09-2019 Slide 10 ABB Confidential

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#7 I4.0 Digital Enterprise needs Digital Enablement at All Levels
Devices, edge gateways, or the cloud

Digital on the Device Digital on the Edge Digital in the Cloud

e.g. Quality Management e.g. Digital Operations e.g. Enterprise / Fleet Optimization

September 17, 2019 Slide 11

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#8 Applying digital across the entire value chain
Customer Experience, sell, design, operate and optimize–all digitally

SELECTION

Ecosystem Digital Mine Collaborative Operations Autonomous Shipping

Enterprise

Plant
empower MarketplaceTM Robotstudio® Visual Plant Management

Cell E-commerce Digital projects Upgrade

Digital operations

Device

Learn Buy Design Build Operate Maintain and

Optimize

September 17, 2019 Slide 12

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#9 Industrial AI – Driving Automation to Autonomous
Writing the future of innovation: towards autonomous operations

September 17, 2019 Slide 13

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Holistic Approach - Augmenting Humans + AI = best results
Moving towards Autonomous

ABB Ability™
Collaborative
Operations™

September 17, 2019 Slide 14

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ABB Ability™ Collaborative Operations™
Transforming the way we work with customers with 24/7 access to ABB experts

For operations
improve…
900+ industrial plants
Safety # of customers
1200+ marine vessels
connected1
Productivity 40+ mines
Energy efficiency
Asset Lifecycle Increased productivity
Extension Higher uptime
ABB Ability™ Key benefits
Lower maintenance costs
Customer Collaborative (selection)
Operations Operations™ Improved operational performance
Center / HQ Center Reduced Energy and Fuel Costs

Oil & Gas: -30% op. expenditures

Mining: $5 mn of op. savings p.a.
Customer assets Key results Pulp & Paper: -55% maintenance
e.g. rigs, mills, vessels (selection) Power Generation: +20% machine life
Marine: $350k savings per vessel
Cement :~3% Savings in Energy & Ops

September 17, 2019 Slide 15 1 as of 2018

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#10 Driving Success of Enterprise Digital Transformation

Strong Alignment to Strategic Goals and Objectives

Well Defined Digital Transformation Strategy

Deeper Understanding of Current Landscape

Strategic
Levers for
Success Proven Industry Value Engineering for Predictable Outcomes

Agile Solution Engineering Excellence Model

Wave Approach for Implementation and Change Management

17-09-2019 Slide 16 ABB Confidential

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Accelerating the journey to Digital Enterprise
Three Pillar Approach

Integrated Digital Transformation Solutions Programs

Collaborative Operations Digital Solution Factory

Pre-Built Digital Value Apps and Services

Industry Digital Value Apps Micro Services Hub

Cogntive Analytics Workbench

Analytics Apps Studio AI ML Studio
System Twins, Semantics & Workflows Pre-Built Data Sets & Models

Cognitive Analytics Hub

Cognitive Data Lake Industry Cognitive Model

Contextual Fusion Hub

IT/OT/ET Integration & Transformation Data Security and Governance

Digital Industry Value Economics and Scale through Transformation Agility though Rapidly
Engineering Digital Platform Edge and Cloud Deployable Digital Solutions

17-09-2019 Slide 17 ABB Confidential

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Example -Wave based I4.0 Implementation for Enterprise and Plant Level
Wave 4
Wave 3
Wave 2
Wave 1

Digital Enterprise Digital Enterprise Digital Enterprise Digital Enterprise

Intelligence Centre Intelligence Centre Intelligence Centre Intelligence Centre
• Integrated Business • Integrated Quality • Prediction based Planning, • Optimized Operations
Decision Support System Management Production and Quality • Continuous Improvement
• Real-time monitoring • Capacity Utilization • Regulatory Compliance

Plant level Excellence Plant level Excellence Plant level Excellence Plant level Excellence
• Enhanced edge landscape • Synchronized & Dynamic • Recommendation driven • Digital Twin
• Integrated MOM Production Planning operations • Autonomous operations
• Role based access to data Scheduling • Asset Integrity
• Integrated Energy monitoring • Operational Risk
Management
• Predictive Maintenance
Features

Real-time Cyber & Data Predictive Data GIS Big Data

Intelligence Analytics Integration Scheduler IoT Integration Edge
Level Analytics Governance & Workflow Integration Knowledge Role based Compliant
Computing Robotics
Security Quality Repository Access
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Industry 4.0 Digital Transformation
Summary

Industry Value Engineering

1 2 3
Digital is proving major Holistic Approach with Well
provides a proven approach to
impact on Operational defined Digital
achieve predictable outcomes
Excellence, Quality transformation strategy
with higher ROI and quicker
Productivity, Safety, aligned with business
Payback
Reliability and EBITDA processes and overall goals
is key.

September 17, 2019 Slide 19

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Let’s write the future of safe and smart operations.

Together.

17-09-2019 Slide 20 ABB Confidential