ANDERS LINDH

PresidentSandvik, Center of Digital Excellence

How Digital is Enabling the Next Wave of Lean

HUGO NORDELL

Director, Digital SolutionsSandvik, Center of Digital Excellence

= Problem customer cannot solve by itself + proof of value

Business

3

Let’s unpack this statement

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5

Content

Reach

Usability

=

=

= Tribal know-how

High touch

Customer insights

+

+

+ Codification

Low touch

User experience

Industrial value Digital value

= Business

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WorldsColliding

Industry

Digital

SERVICEPLATFORM

CONTENT

USABILITY

REACH

Smart collaborationenvironment

At Sandvik, we work witheverything from...

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TO AIR-DRIVEN ENERGY

...Underground mines...

...to big trucks...

11...to machining...

TO BIG TRUCKS

...to nanotechnology

7,900ACTIVE PATENTS ANDOTHER IP RIGHTS

500MILLION USDINTO R&D EACH YEAR

150 COUNTRIES AROUND THE GLOBE

SALES IN OVER 43,000EMPLOYEES

BILLION USD

INVOICED SALES10

60R&D CENTERS GLOBALLY

Figures refer to Group total 2016 excl. Mining Systems

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Dual mission of CODE

Accelerate digital transformation to defend core business

Expand offering by realizing customer benefits across value-chain

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2. Offensive1. Defensive

How do we protect our core business?

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Establish a new premium.

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How do we build new business?

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Smart collaboration with customers and partners

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How do we build traction for the digital team?

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1

2

3

Start small

Define success

Engage customers

Tangible resultsthat build credibility early

An entirely new service in 3 months that yielded 6x

resource growth21

Our story

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Before After

1% of cost compared to previous digital projects

inside Sandvik

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12x faster time to market

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Customer feedback: problem solved.

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CONTENT

§ Digitized our tool catalogues

§ Codified how our tools shouldbe used

§ Content and data exposedthrough easy to use APIs

Content

USABILITY

§ Created value stream maps ofkey customer tasks involvingour tools

§ Enabled customers to digitizetheir shop floor tool inventoriesusing mobile devices

§ Customer behavior basis of all service interactions

Usability

REACH

Reach§ Cloud enabled web

application to managedigitized tools

§ Cross-platform and alwaysup-to-date

§ Hundreds of thousands oftools from dozens of suppliersonly a click away

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Our takeaways

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Beware of solutions in search of problems

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Blend industrial and digital in a team with

mandate to drive change

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Codify tribal knowledge to create and win new markets

Thank you