Watson IoT for Manufacturing 20171

…Cambiando el Mundo que Vivimos…

Reinvencion Digital

Carlos TUNES

Watson IoTLatin America Executive

ctunes@br.ibm.com

+55 11 999-309-674 /in/carlostunes

@CarlosTunes

carlos.tunes.9

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©2015 IBM Corporation3

CEOs apontam tecnologia como o mais importanteforça externa que afetará a sua organização

External forces impacting the enterprise (in 3 to 5 years)

2006 2008 2010 2012 20152004

Technology factors

Market factors

Regulatory concerns

Macro-economic factors

Socio-economic factors

Globalization

People skills

Geopolitical factors

Environmental issues

2013

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As 4 tecnologias atuais que os CxO’s possuem expectativas que vão revolucionar os negócios.

Cloud computing and services

Mobile solutions

Internet of Things (IoT)

Cognitive computing

Advanced manufacturing technologies

New energy sources and solutions

Bioengineering

Man-machine hybrids

Technologies revolutionizing business (in 3 to 5 years)

Global Brazil

63% 52%

61% 61%

57% 64%

37% 36%

28% 28%

23% 34%

12% 12%

10% 5%

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Technology Trends – The rapid evolution of technology is creating a lot

of excitement and questions around what to do …

▪ Open Platforms

▪ Inexpensive sensors

▪ Cloud

▪ Computing power

▪ Big Data & Analytics

▪ Millennials

▪ Mobility

▪ Cognition

▪ Internet of Things (IoT)

All coming together to create a perfect storm…

▪ Social

▪ Circular Economy

The way information technology is adopted and consumed is changing…

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Demand for customization + pressure to lower costs and time to market, are driving Industry 4.0

In the beginning, we just made them all alike

…or we built them one-by-onefor each new customer Now customers demand

increasingly specializedand customized products and costs are going through the roof!

Source: http://minicoopergraphics.com/

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Steps necessary to achieve manufacturing transformation of Industry 4.0

Vertical integration and networked manufacturing systems

• Connect to a platform

• Integrate the Factory

• Optimize the Factory

End-to-end engineering through the entire Value Chain

• Design for Manufacturing

• Integrate the Supply Chain

• Orchestrate the Value Chain

Horizontal integration through Value Networks

• Integrate Value Chains

• Utilize Cognitive Capabilities

• Create new Business Models

The journey towards Industry 4.0

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To capture the potential of the cognitive manufacturing transformation,

we focus on three key pillars of manufacturing that drive the highest

improvement

Intelligent Asset and Equipment

Smarter Resources and Optimization

Cognitive Process and Operations

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Intelligent Assets and Equipment

Intelligent assets and equipment utilizes IoT and cognitive capabilities to

sense, communicate and self-diagnose issues so they can optimize their

performance and reduce unnecessary downtime

✓ Prevent production delays and improve line

performance with better asset visibility

✓ Reduce equipment downtime and increase

process efficiency with industry models

✓ Expedite equipment repairs through

predictive and cognitive analytics

Decrease in equipment

downtime at major

global auto manufacturer

34%

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Auto manufacturers are utilizing the

analytics capabilities of Watson IoT

combined with new sources of real-time

data to gain new predictions and

prescription on improving equipment

availability and performance. Using prebuilt

industry models, manufacturer can spend

less to analyzing and more time doing.

Prescriptive Maintenance

Predictive Maintenance and Optimization

Plant Performance Analytics

IoT Equipment Advisor

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Equipment downtime can be significantly

reduced by combining the power of IoT

with cognitive capability. Not only can

Watson IoT predict what and when failures

can happen, it can utilize cognitive

capabilities to advise a user on exactly how

to fix and resolve these failures.

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Cognitive Process and Operations

Cognitive operations and processes bring more certainty to business by

analyzing a variety of information from workflows, context and environment to

drive quality, enhance operations and decision-making.

✓ Increase yield of your manufacturing

operations and processes

✓ Improve productivity of your manufacturing

line with early quality detection

✓ Expedite service calls and repairs and reduce

warranty costs

Increase in overall

productivity at major

European automaker

25%

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With quality analytics from Watson IoT

manufacturers can analyze hundreds of

process variables, historic and real-time, to

identify issues contributing to quality issues

and resolve them before they occur. This

drastically improves productivity and yield

while reducing operation and material

costs.

Prescriptive Quality

Prescriptive Warranty

Visual Inspection

Acoustic Insights

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By utilizing cognitive capabilities, Watson

IoT can bring in unstructured data such as

image and video which enriches the

information around manufacturing

processes. Combined with other IoT data,

this information can produce more

accurate predictions and better insights

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Smarter Resource and Optimization

Utilize IoT and cognitive insight to optimize the resources engaged around

production, whether that’s keeping production line workers safe, improving the

expertise of the entire workforce or optimizing energy consumption

✓ Improve worker safety and gain better

workforce management

✓ Increase worker productivity and expertise

✓ Reduce energy consumption of your facilities

and buildings

Reduced energy and

resource costs at

manufacturing facility by

8%

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Industrial manufacturers are using Watson

IoT to help employees stay safer in

dangerous environments. The solution

detects hazardous environments and

provides real-time alerts to employees and

employers enabling preventive measures if

physical well-being is compromised or

safety procedures have not been applied.

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Engineers are training Watson to collate

30+ years of engineering experience in

managing liquid gas facilities to create a

cognitive advisory service to help

employees across the organization resolve

problems faster, improve process flow and

achieve better operational outcomes.Plant Advisor

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Embracing cognitive manufacturing

Collect the

Data

Collect and curate the

right data— data on

processes and

operations you would like

to improve, data across

your systems, both

structured and

unstructured. Connect

systems and sensors to

bring in real-time data for

more accurate insights

Visualize the

Patterns

Visualize your data on a

platform. Quickly build up

dashboards and use

simple analytics to

determine patterns.

Supplement with external

sources of data and

analyze variables that

impact the process and

operation you would like

to improve.

Analyze with

Purpose

Apply purpose driven

analytics to gain new

insights from you data

Developed advanced

models, process a

combination of variables

and utilize the prediction

engine to generate the

best recommendations

the drive the most

business results

Deliver with

Cognitive

Whether it’s dealing with

vast amounts of IoT data

or dark and unstructured

data, cognitive

capabilities brings light

and clarity. Take

advantage of the

processing power of

cognitive to enable you to

act, resolve, and deliver

better

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At the cusp of the 5th Industrial Revolution

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MAXIMO Focus

21

22

MAXIMO Focus

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Optimize Equipment

with AIOptimize

Buildings with AIOptimize

Operations with

AI

Workplace Safety

InsightsDevice

Connectivity &

Data Capture

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USD 1.7 trillionin value added by the IoT to the global economy in 2019.1

82 percentof enterprise decision makers say IoT is strategic or transformative to their enterprise.3

From 13 billion to 29 billion Projected growth in connected devices by 20202

1 Business Insider, "The 'Internet of Things' will be the world's most massive device market and save companies billions of dollars," John Greenough, April 14, 2015.2 IDC, Worldwide Internet of Things Forecast, 2015-2020, Doc #256397, May 2015.3 IDC, “Internet of Things: New Worldwide Demand Side Research on Perceptions and Plans for Adoption 2015,” September 10, 2015,

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IoT em Números….uma enorme escala e impacto

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En LA

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OnStar Go

ExxonMobil

iHeartRadio

Mastercard

Parkopedia

✓ 2 Millions in 2017

✓ 8 diferent type of services

✓ 5 brands at IBM platform

Glympse

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Olli

First self-drive bus passengers

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3131

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IsoFarmshows

tractor

autonomous,

powerd by Watson IoT.

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Aerialtronics, uses dones with

Watson IoT, providing services like inspeccion, monitoring on all industries sector::

• Trafic• Agribusinesso

• Eolic Towers• Energy Networks• Oil&Gas Operations • Cel Towers

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© 2014 International Business Machines Corporation 37

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Muchas Gracias !

/in/carlostunes

@CarlosTunes

Carlos TUNES

Watson IoTLatin America Executive

ctunes@br.ibm.com

+55 11 999-309-674

carlos.tunes.9

Argentina 95 Años

39

Detecting hazards to help employees stay safer

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©2015 IBM Corporation40

Cognitive IoT enables us to

learn from, and infuse intelligence into, the

physical world to

transform businessand enhance the human experience.

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Leaders are putting the physical world to work and

achieving busine$$ result$ now.

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Boosting Operational Efficiency

Transforming Customer

Engagement

Business Transformation

Disrupting their industry

Deeping

human

engagement

Infusing cognition

into products and

services

Extending

expertise

Enhancing

exploration and

discovery

Creating cognitive

processes /

operations

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Watson IoT, e BlockChain

Integrated Supply Chain

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The IoT Value Chain

Silicon, embedded OSes & Recipes

Connectivity & Security technology

Silicon

IoT devices & recipes for connecting them

Connectivity & Security technology

IoT Devices

Network partners

Relationships & reach

Networks

Customer solutions built on IBM and partner IoTtechnology

Solution

& Applications

Oil & Gas

Smarter Cities

Connected Vehicle

Life Science & Healthcare

Energy & Utilities

Consumer Electronics

Transport & Rail

Industrial Manufacturing

IBMIndustry

Expertise

Additional value add cloud services

Cloud

Cloud platforminnovation platform

End-end IoT solution

Gateways

Gateways & recipes for connecting them

Connectivity, Security and edge

analytics

IBM

Par

tner

s

WATSON IoT

Industries Solutions

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We’re entering the fourth revolution of industry and it is fully differentiated

from any that came before it

Line

Production

Electrification &

Automation

Miniaturization &

Global Scale

Cognitive

ManufacturingComplexity

Era

1783

1870

1960

2020

Water, steam, and

conveyors; modern

materials handling

Assembly systems:

Lighting, electricity

and assembly lines

Embedded

systems:

Semiconductors,

computers,

information

technologies and

increase in trade

Cyber-physical

systems: sensors,

big data, predictive

analytics, cognitive

computing, cyber-

physical systems,

robotics, 3D

printing

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Technology trends are fueling the 4th Industrial Revolution

Various initiatives around the world are seeking to accelerate the potential in

manufacturing

Enable Innovation & Differentiation

Create new opportunities to achieve levels of productivity & specialization not

previously possible

Productivity

Efficiency

Revenue

Customer Value

Competitiveness

Respond to demographic change in the workplace

Create value opportunities through new services

Agility & Flexibility

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collected manufacturing

and enterprise data

Smarter

Supply Chain

Management

Smarter

Energy

Smarter

Factory

Operations

Smarter

Product

Design

Smarter

Employee

Safety

Smarter

Quality

made into a transparent,

comprehensive,

interactive, minable corpus

of information

that makes visible new

patterns in the data

to continuously monitor,

predict, respond and

interact with humans and

machines

To deliver

Smarter

Equipment

Maintenance

Cognitive Manufacturing applies cognitive capabilities to digitize and optimize previously inaccessible areas of manufacturing processes

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I nvisibleI ntuitive