Industry 4.

0
Session 7/8

Group 7
Abhijeet Shirude
Darshil Pandya
Sharath B S
Swetha Lagisetti
Vishwadeep Bharadwaj
 Schneider Electric
Connectivity Inspires a
Digital Transformation
Digital Solution
New Value
Proposition
Schneider Electric’s IoT Solution

Structured Data
Schneider Electric Products

from Sensors

EcoStruxure Asset Source of Operating Predictive

Advisor Risks Maintenance

Unstructured Data from

Maintenance logs

• Schneider Electric in the early 2000s through multiple acquisitions developed competencies for a strategic
redirection from selling electrical products to selling energy management solutions
• EcoStuxure Asset Advisor was the IoT solution developed by SE which offered new value propositions to
its customers
• In 2016 solutions accounted for 45% of the revenues
Four Platforms
Sensors installed on older
devices that were not
connected to the internet
Associated Customer Data
with Product Data
Distinguished devices
manufactured by SE from
those of other OEMs
Identity
Digital Platform open to eco-system of third party developers in the future
Four Platforms connected to the existing ERP and
CRM to reap the benefits of earlier transformation
initiatives that had simplified SE’s technology platform
CRM and ERP
Connect signals produced
Provided a billing engine
by IoT enabled devices
which supported Provided security to both
with SE’s back-end
microtransactions SE’s data and customers’
processes to create events
Supported company’s data
Closed the loop by routing
transition to a business
sensor and analytics data
model built on recurring
to appropriate operational
revenue
support systems and staff
Complex Event Processing Subscription Cybersecurity
Innovation
Funnel Model adopted to generate more Strategic Innovations
• Ideation – Generation of ideas for new, reusable offerings

Ideation • Incubation – Initiate a pilot that the customer is willing to fund

Incubation
• Industrialization – Scaling up a digital service from incubation

Industriali
zation Business Problems faced during the digital transformation
• Business unit driven approach of local offerings let to
multiplication of vendor partnerships and connectivity protocols
– SE could not leverage economies of scale
Continuous Innovation
• Services not reusable across different business verticals
• Training SE’s sales people to sell the new value proposition
• Gaining confidence of the partners in the value chain and
educating them about the new solutions’ value proposition
• Changing the culture from product excellence to rapid delivery
of solutions
PREDIX – The IIoT Platform
Predix Platform is the distributed application and
services platform for building and running
powerful digital industrial solutions.

Essential features of Predix Platform

• Distributed intelligence: Predix Platform

provides a deployment architecture that spans
cloud, on-premises, and edge.

• Asset connectivity and management: Collect, process, and securely transfer data from assets to
analytics and applications in the cloud

• Digital twins: Digital twins are digital representations of physical assets and systems that enable
companies to understand, predict, and optimize the performance of each unique asset.

• Analytics and machine learning: Rich, robust, industrial-grade analytics capabilities generate insights
across the entire life cycle of industrial assets
 PREDIX – The IIoT Platform

• Big data fabric: Flexible options for ingestion, analytics execution, and storage for streaming and big data
processing

• Security: Stringent security measures that are designed into the fabric of the platform, forming a
continuously monitored, protected platform for operators and developers to secure industrial innovation

• Application development and extensions: Application development environments support high

productivity (4GL, low code environment) and high control (full stack development)

Predix Offerings:

• Predix Cloud: A cloud-based Platform-as-a-Service (PaaS) for the Industrial Internet.

• Predix Edge: Predix Edge capabilities allow execution close to the source of data

• Predix Studio: Predix Studio gives customers the ability to build and run applications

• Predix Secure: Security is embedded at every layer within Predix Platform

Schenieder Platform & PREDIX platform
Similarities

• Both are platform based IIoT models

• Cater to wide industry specific versions for Building, Plant &
Machine, Grid, IT and Power.
• Cloud capabilities, digital twin, Analytics and cyber security features
are enabled
• Provides SDKs, tutorials, reference apps, training, certification,
forums, and a community code exchange that helps developers
accelerate their development experience.
 Komatsu Komtrax
Asset tracking meets demand forecasting
Remote Sensing & Controls

• Komatsu - a construction equipment and machinery manufacturer

• The company’s interest in establishing a remote monitoring capability for its equipment received a push
from the rise of the equipment rental market in Japan.
• Big Rental, a Japanese construction equipment leasing company, owned approximately 1600 Komatsu
machines. The Big CEO wanted to know where their machines were so that they could efficiently schedule
them for the next rental, minimizing the distance and transportation cost of moving hem between job sites
thereby maximizing efficient utilization.
• Big Rental and Komatsu in collaboration initiated a project to install GPS and monitoring equipment on the
equipments.
• Komatsu named the system Komtrax – a contraction of Komatsu and tracking. The sales on add-on
service for Komtrax were disappointing.
• However, ram- raiding- in which criminals used stolen trucks with heavy construction equipment to
demolish ATM to steal cash- made it impertinent that Komtrax as standard
Data Collection & Value Creation for Customer

• The heart of the Komtrax system on was the controller. The controller linked to engine and hydraulic pump
controllers
• Data was collected through sensors connected to engines, pumps, hydraulic units
• Raw data was uploaded daily (and in some cases hourly) to a server maintained by the company. From
there it fed into multiple application servers that presented views of the data to customers and Komatsu
analysts.
• Data could be used to know: From how much tons of earth was moved to when an engine needs overhaul

• The total cost of ownership, including fuel and operator costs, was as much as five to eight times the initial
purchase price of the equipment
• Despite Komtrax’s integrated data capabilities, customers in emerging markets such as China and India
often did not recognize such added value, and were much less willing to pay for it
• labor savings had less importance where labor costs were low
Demand Forecasting Using Komtrax

• Construction equipment typically had four month long production cycle which meant the production had to
be planned in advance.
• Komatsu planned its production based on order intake
• Sales dropped in dramatically 2008-2009
• Distributors had been increasing their outlook based on meeting higher sales targets in previous years and
had built up substantial inventory.
• This issue led to a rethinking of where inventory was best held along the supply chain
• Komatsu held inventory via consignment and based on the data from Komtrax did a better forecast