The Cognitive Enterprise

The Cognitive Enterprise - Perspectives for the Aluminium Industry

Manish Chawla

Global Managing Director

Energy and Natural Resources Industries, IBM

Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation 1

Increase Customer Centricity

Leverage Sustainability Trends

Grow through Substitution

Portfolio and assets optimization

Strengthen

Core

Focus on

Profitability

Invest with

Future Focus

Disruptive environmental forces are driving seismic shifts within the

Aluminium Industry


“We're in the middle of three Climate Changes, not Just one. The world is moving from being an interconnected one, to being interdependent, and it is the most adaptive that survive” - Thomas Friedman, Business Commentator

Organizations

need adaptive

ecosystem-

coalitions

The Change The Imperatives

ENVIRONMENT

GLOBALIZATION TECHNOLOGY

The digital

experimentation

of the recent past

decade has set

the stage for

deeper

transformation at-

scale

CHAPTER 1 “Outside-in”

CHAPTER 2 “Inside-out”

Innovation Consumer-driven

Additive to core business

Enterprise-driven

Transformative of mission-critical

New ways of working

Incubated in labs, “digital islands”

Transformed enterprise-wide

Digital / exponential technologies

Inspire broad experimentation

Embed in the business, with focus and scale

Legacy process & infrastructure

Supportive of innovation – but rate-limiting

Modernized and responsive to future need

Data leverage 20% structured, visible, public

80% “behind the firewall”

Definition of done Pilots, POCs In production

Advantage Pure plays End-to-end integration

We call this holistically transformed organization …

the Cognitive Enterprise


Culture of agile innovation

Ecosystem of business platforms

Cognitive-enabled enterprise workflows

Exponential technologies

Fueled by data

Next-generation applications

Secure multicloud infrastructure

Industry platforms

Transaction platforms

Culture SkillsWays of working

Decision processes

Front-office processes

Back-office processes

Artificial Intelligence

Blockchain AutomationInternet of Things

5G

Licensed data

Proprietary data

Public data

Custom LegacyAPI-enabledapplications Cloud native Digital

Public Private On-premise Security

Key success

factors


2. Leverage the

incumbent advantage

in data

3. Architect your business

for change

1. Create platforms to

unleash Digital

Darwinism

6. Reinvent your workforce

to ignite talent

7. Win with trust

and security

5. Get agile, change fast

and build things

4. Redesign company

workflows around AI

Tradelens

Problem: Inconsistent information

across organizational boundaries

and “blind spots” throughout the

supply chain hinder the efficient

flow of goods.

Solution: Use IBM Blockchain to

create a Global Logistics Platform

that provides instant, secure access

to end-to-end supply chain

information; single source of the

truth.

+15% total trade volume

Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation

Create platforms to unleash Digital Darwinism

1

– Strategic clarity

– Ecosystem expansion potential

– Accelerative approaches

CEMEX built a platform

to provide superior

customer experience

IBM helped CEMEX revolutionize

the way they conduct commerce

with their consumers. A digital

platform enabled CEMEX to

connect with large contractors

and individual consumers on a

personal level, delivering the best

product to an entire market of

customers.

6

Leverage the incumbent advantage in data

2

– Curated for platform purpose

– Bias avoidance

– Data ownership

JFE Steel Corp

Challenge: To keep production

schedules moving and workers

safe, detecting and fixing

equipment failures is key.

Solution: AI capabilities mining

vast pools of unstructured

Japanese text creates safer,

more efficient plants, helping

technicians diagnose, fix and

prevent failures

Substantial Reduction in Mean

Time to Repair

7 Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation

Yara

Challenge: To feed a growing

global population sustainably,

farmers must increase food

production on existing farmland

to avoid deforestation

Solution: Yara’s vast trove of data

unlocked with IBM AI and

analytics to build a digital

farming platform, providing

holistic digital services and

instant agronomic advice

8

Architect your business for change

3

– Target operating model

– Enabling architectures

– Open to ecosystem

Sandvik Mining

Built a platform to enable Sandvik

to provide high value aftermarket

services to their clients.

The solution results in an increase

of about 10% in productivity,

increase field workforce efficiency

& reduce repair costs, improve

customer satisfaction & increase

retention while increasing

equipment lifecycle revenue for

Sandvik.

10% Productivity Increase in

Mining Operations 8 Future Aluminium Forum | IBM Confidential | © 2019 IBM Corporation

9

Redesign company workflows around AI

4

– Humanized customer-facing workflows

– Self-learning operational workflows

– Open ecosystem workflows

Gerdau

Problem: Specialty steels require analysis of

hundreds of variables and many thousands

of previous materials. This learning process is

highly dependent on the level of experience

of metallurgists

Solution: Leveraging AI to Process Complex

Orders, IBMRFP Advisor enables Gerdau to

capture expertise and reduce the total time

of response

↓70% in Time Spent on RFP Process

Transform Products –

Cognitive Material Discovery

Expediting the development of

new products / alloys

Amplified R&D capabilities to

expedite product

development, creating new

products to better compete in

the marketplace.

Ability to investigate new ideas

and products possibilities

faster


10

Get agile, change fast and build things

5

– Strategic agility

– Operational flow

– DevOps for business

Co-create, co-locate,

co-innovate with

experts at scale

THINK

Enterprise

Design Thinking

THRIVE

Talent & Change

DevOps

Agile &

Distributed Agile

TRANSFORM

Lower the risk of

building strategic

business platforms

Evolve enterprise

culture over the

journey


Reinvent your workforce to ignite talent

6

– New skills & continuous learning

– AI-enabled skills development

– Agile teaming

Customer

experience +10 pts

while driving cost

savings and

establishing a

model for ethical AI

adoption

75% Reduction in searching time across multiple data sources in

exploration

Skill Transfer using Watson Woodside Engineers have the knowledge of 1000

Accelerates expertise by giving staff unlimited access to 30 years

of tribal knowledge

IBM developed an easily accessible body of knowledge that all

engineers can access, effectively placing the combined history

and knowledge of all engineers into the hands of every single

engineer.

IBM Watson


12

Win with trust and security

7

– Bias-free automation and algorithms

– Protected workflows and data

– Expertise with integrity and values

IBM and Industry Partners

Working together as part of a larger consortium across the

mining and metals industry leveraging blockchain

technology to ensure a secure and trusted environment

for business transactions .


Aluminium Industry has significant digital opportunities to generate new avenues of growth as

well as drive efficiency


Bauxite Mining Alumina Refining Primary Aluminum

(Smelting) Casting

Rolling, Extrusion

& Component

Manufacture

Market: Final

Consumption

Secondary Aluminum Recycle

Portfolio optimizer, dynamic value

based pricing

Cognitive plant advisor

Cognitive equipment advisor

Cognitive Ore Body Discovery

Circular Economy and Responsible Sourcing

Blockchain for supply-chain operations

Cognitive material design

Cognitive marketing and lead

generation

Digital Order to Cash and data

monetization platform

Watson Blockchain IoT Cloud

Disruption is a catalyst for provocative business opportunities and Digital ReinventionTM

provides pathways to drive growth and profitability


Digitization Improve efficiency by applying technology to individual

resources or specific domain processes

Example: Digitizing manual processes

Digital Transformation Digitize whole aspects of a business producing

customer experiences that support what individuals

need or want

Example: AI-based plant maintenance

Digital Reinvention Incorporate digital technologies to create results via

innovative platforms, product strategies, and consumer

experiences

Example: Create new markets through platform based

ecosystems

“Doing Things Smarter”

“Doing Smarter Things”

“Doing New Things”

Incremental, purposeful innovation and sustainable culture change

Bring together the right

people from IBM, our

clients, and ecosystem

A platform for

data &

technology

With

enterprise

scale ways

of working Structured network of global and

local capabilities (Industry, Domain)

Program 4

MVP 5

Program 2

MVP 2

MVP 4

CoE 1

BUSINESS PLATFORMS BUILT OVER TIME: BRICK BY BRICK

DATA FIRST, CUSTOMER LED, GOVERNANCE & TRANSPARENCY

POC 1


Cognitive

Enterprise:

CEMEX


2. Leverage the incumbent

advantage in data

Executing data curation strategy,

driven by analytics CoE in

connection with lines of

business

3. Architect your business for

change

Legacy systems re-architected

to cloud with open standards

and API-enabled microservices

Ecosystem-facing “Ventures”

function to engage startups,

partners and industry bodies

1. Create platforms to unleash

Digital Darwinism

CEMEXGo: customer-facing

platform for order placement,

shipment tracking, invoicing and

payments

Expanding to adjacent platform

plays in last mile logistics and

scheduling efficiency

6. Reinvent your workforce to

ignite talent

Top executive leadership trained

on digital reinvention, agile

practices and new technologies

7. Win with trust

and security

Pricing consistency and

transparency enabled by

CEMEXGo

Enterprise security standards

enhanced and unified to support

new global platforms

5. Get agile, change fast and

build things

Opened Monterrey Hub to

house and govern innovation

efforts by co-located teams

IT skills fully transformed to

integrate Design Thinking, Agile

and DevOps

4. Redesign company

workflows around AI

Core business processes

re-engineered to bring

digitization and global

consistency to Finance,

Procurement and HR

2018

Implementation of

DevOps and Agile in I.T.

Agile for

Executives

July 2018

The Digital Hub is

established

Industry Solution

Business Model Strategy C-Suite Study

Digital Customer

Insights

Digital Customer

Insights Emerging Tech Education &

Use Case Development

E-commerce Strategy &

Enablement

T R A N S F O R M I N G

T O G E T H E R

E X E C U T I N G

T O G E T H E R

B U I L D I N G T O G E T H E R

Digital Freight

Management Analytics CoE

Digital Marketing

Strategy

2019

Voice of the

Customer

Cemex Cognitive Enterprise Roadmap: executing and transforming together

18

Documents

The Cognitive Enterprise