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Intelligent Asset Network: An Innovative Approach to Operational Excellence Sunil Srinivasan, Senior Principal, Industry Value Engineering, SAP

Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

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Page 1: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

Intelligent Asset Network: An Innovative

Approach to Operational Excellence

Sunil Srinivasan, Senior Principal, Industry Value Engineering, SAP

Page 2: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public

AGENDA HERE

1Digital transformation impacting business

processes across the Extended Supply chain

3How intelligence in the assets provides an

opportunity for innovation

2 Trends shaping the Asset Management

SAP’s Next generation Asset management

solutions 4

Q&A5

Page 3: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public

Digital transformation in the extended supply chainBridging traditional lines of business

Supply chain R&D/Engineering Manufacturing Asset management Sustainability

Customer centricityOmnichannel

Individualized productsIndustry 4.0

Resource scarcitySustainability

Sharing economyBusiness network

Customers and

markets

People and

resources

Products and

assets

Suppliers and

logistics

End-to-end

visibility

Page 4: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public

Trends shaping Asset Management

Cloud –

to establish an asset network

Big Data –

to predict behavior of assets, people, and

processes

Analytics –

to monitor performance of assets, people,

and processes

Enterprise Mobility –

to be more effective and efficient

as well as to empower employees

Internet of Things (IoT) –

to connect the assets to the business (IT/OT

convergence)

Machine-to-machine (M2M)

communication –

to build cyber-physical systems

Technology

Enablers

Process harmonization across industries

based on ISO 55001, ISO 14001,

and ISO 45001

Managing cost, risk, and performance

holistically

Balancing operating expenditures (OPEX)

with capital expenditures (CAPEX) with

focus on asset lifecycle costing

Collaboration of engineering, procurement,

and construction (EPC) contractors, OEMs,

service providers, and operators

Empowerment of users with simplified

applications

Increasing stakeholder expectations that

require operating safely and reliably under

cost pressure

Business

Challenges

Page 5: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public

Connecting all stakeholders

alongside the asset lifecycle

Connecting corporate objectives

with the asset system

Asset Management in an ever-more-connected world...

Plan and design Procure and build Commission Operate Maintain DecommissionAsset

Cost

Risk

Performance

Manufacturer

Supplier

EPC

Service provider

Owner/operator

DealerIT OTConnecting IT with OT

55001

Page 6: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public

SAP Enterprise Asset Management

Asset Management Strategies getting more sophisticated

Mai

nte

nan

ce S

trat

egie

s

Dec

ide

on

Str

ateg

ies

Ho

listi

c En

terp

rise

Ass

et M

gmt

tact

ical

to

str

ateg

ic

fragmented to integrated

Source: taken from Gartner and modified.

Few Data

Big Data

Integrated

Information

Page 7: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public

Asset Health Control Center (AHCC) as the core application of the

solution makes unplanned machine downtime a thing of the past

AHCC FEATURES:

Monitor asset health and prevent failures

Initiate preventive counter measures that trigger service or

maintenance notifications/orders/requests (e.g. Plant

Maintenance, Multi Resource Scheduling)

Enable a closed-loop maintenance and service process

Improve asset availability

and performance

by enabling maintenance

engineers to detect health

issues and fix equipment

long before failures occur

Improve return on assets

by promoting overall

equipment effectiveness,

enhancing maintenance

efficiency, and lowering

maintenance costs

Reduce annual service

and maintenance cost

by improving first-visit-fix

rate

Increase asset utilization

by monitoring and analyzing

asset health to predict future

failures and reduce

unplanned downtime

TYPICAL VALUE DRIVERS

EXAMPLE CUSTOMER BENEFITS

31%Lower annual

maintenance costs

8.2%Higher asset

productivity

25%Lower unplanned

downtime

Page 8: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public

Where is Asset Maintenance and Service Today?Different Stakeholders with Different Concerns

How can I improve my product’s

reliability and up-time?

Which quality problems are

arising with purchased

components?

Which service level do we need

to provide?

How can I provide the best service at the right time?

How can I reduce service and operational

cost?

How can I improve efficiency and improve

processes?

Asset

Manufacturer

Asset

Operator

3rd Party

Service Provider

Page 9: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public

Asset NetworkSAP Asset Intelligence Network

Applications

Pump OEM

Valve OEM

Service

Provider

Chemicals

Mill / Mining

Oil&Gas

Content Integration Network

Shared Model

Database

Global

Equipment

Registry

Business Partner

Network Services

OperatorsOEMs Service Providers

Page 10: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public

SAP Asset Intelligence NetworkSAP solution for collaborative asset management

Apps for collaborative processing of service bulletins,

performance improvement, and spare parts change

management

A cloud portal of standardized content that defines

and documents equipment and models, shared

and stored, for a consistent definition between

business partners

A secure network to connect multiple business

partners for inter and intra company collaboration

SAP Asset

Intelligence

Network

AppsCombined together

to deliver

Content

Network

Page 11: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public

SAP Predictive AnalyticsGain completely new insights from your assets

Telemetry data Sensor measurements

Geospatial data

Diagnostics

Events

Business data Warranty information

Maintenance/ service history

Customer profile

Dealer events

Cost and risk

Third-party data …

Structured and unstructured, such

as a weather forecast

Benchmarking

Prioritizing

maintenance and

service activities

Machine health

and early

warnings to

prevent downtime

Design

improvementsSelling

performance /

pay per use

Optimized

warranty and

spare parts mgmt.

Page 12: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public

New user experience for asset managementEmbedded SAP 3D Visual Enterprise, side panels, QuickViews, new list views, enterprise search, mass change,

personalization,...

Page 13: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public

Spatially enabled SAP solutionsExample: Enterprise Asset Management

Desktop Mobile

Page 14: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public

Many companies are actually doing this todayAcross many industries

Compressor Manufacturer

Equipment ManufacturerTrain Operator

Utilities CompanyChanged the business model from selling

compressors to selling compressed air.

Resulted in improved ability for compressor

stations and a move from unplanned to

planned maintenance.

40% of maintenance effort is for

corrective maintenance. Implemented

remote train diagnostics, engineering

rules and predictive models, resulting in

lower maintenance costs, less effort

and higher passenger satisfaction.

Business requirement to improve asset

performance. Predictive maintenance

resulted in reduction in equipment failures,

while improving reliability and customer

satisfaction.

Target to strengthen company brand by

improving product quality and reliability

through analysis of equipment telematics

data. Resulted in warranty cost reduction

and shortened detection-to-correction

cycle, while improving equipment up-time.

Page 15: Intelligent Asset Network: An Innovative Approach to ... · How can I improve my product’s reliability and up-time? Which quality problems are arising with purchased components?

Thank you

Contact information:

Sunil Srinivasan

Senior Principal

Toronto, SAP Canada

[email protected]