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0 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
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The IoT In Manufacturing Operations:
Where Are We Now?
Simon F. Jacobson
Research VP
17 years at Gartner, 16 years Industry experience
Supply Chain
For a broader insight into Gartner you can find us: @Gartner_inc on Twitter and Gartner on LinkedIn.
@simonfk
https://www.linkedin.com/in/simonfkj
2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Transparency
Data and
Information
3 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
“We have
more data…"
"… but over 70% of it
never gets used!"
“Everything is
connected…"
“to what? Why?
and where?…"
4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
The Pieces Are
Already In Place
5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Intranet of Things Internet of Things
Scope
Isolated Optimization
Local
Extended Optimization
Supply Network
Value Delivered
Controlled, efficient, and
flexible process capabilities
Agile, collaborative, and
ecosystem-based service
levels
Examples
Automated Test and Inspection
• Goal: Reduce warranty and
escapes in drivetrain production
• Approach: IP-addressable tools,
IoT platform for higher-fidelity
process monitoring
• Outcome: 50% decrease in
process disruptions
Digital Twin of Production Assets
• Goal: Boost factory reliability and
decrease service costs
• Approach: Virtual model of
production equipment, advanced
algorithms
• Outcome: Knowledge and
understanding, decreased
maintenance hours
The Intranet and Intranet of Things
6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Through 2018 three out of five Internet of Things projects
in manufacturing operations will only deliver benefits
to local plant operations
7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Digitalization vs. Storm Windows
8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Inwardly Focused Ecosystems Do Not Thrive
Source: "Factory of the Future Strategies Innovate How Production Delivers Value" (G00275084)
Process Granularity
Performance
9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Cultivate Information-Based Ecosystems
Process Granularity
Performance
Production
Plan Source Deliver Service
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Partner
Source: "Factory of the Future Strategies Innovate How Production Delivers Value" (G00275084)
10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Poll: Which styles of analytics does/will your
organization use for its IoT data in manufacturing
operations?
A. Descriptive
B. Diagnostic
C. Predictive
D. Prescriptive
Please do not vote if you have not already or are not planning to implement an
IoT project in the next 12 months
11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Difficulty
(to Scale)
Time Scale
Low
High
QuickSlow
Factory
Supply Chain
Reliability
Error
proofing
Serialization
Energy Management
Asset Performance
Decision Quality
Labor Efficiency
Improved Inventory
and Cash Flow
Safety
IT TCODecision Latency
Pull-Based Replenishment
Degree of Connectivity
LowHigh
Traceability
Break The Plant Centric Benefits Model!
Intranet of Things
Internet of Things
Digital Twin
Availability
12 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
The Manufacturing Improvement Portfolio
Balancing Innovation with Core Competency
13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Poll: If you have already or plan to implement an IoT
project in the next 12 months, are you planning or have
already used Digital Twins?
A. Yes
B. No
C. Maybe
Please do not vote if you have not already or are not planning to implement an
IoT project in the next 12 months
14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
MaturityLevel
Inside-Out Outside-In
Connected Plants and Factories Connected Value Networks
Site Excellence
Anticipating
Improvement Projects to
Drive Efficiencies
Integrated
Manufacturing
Network
Integrating
Integrated "Excellence"
Within the Manufacturing
Network
Outcome-driven
Manufacturing
Collaborating
Customer-Driven With
Integrated End-to-End
Processes
Solution-driven
Manufacturing
Orchestrating
Value Translated Into
Multiple Network
Participants
Standalone
Manufacturing
Reacting
Accidental Excellence
Operating Efficiencies
Orchestrated
Capabilities
The Trap
The Opportunity
Avoid Outpacing Yourself
Five-stage Maturity Model Provides The Roadmap
15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
 Ask: "What opportunity are we creating?" and not "What problem
are we trying to solve?"
 Remove barriers and build bridges between IT, OT and line-of-
business constituencies.
 Connect value creation in the plant with value at the customer
 Democratize production data across an ecosystem beyond the plant
 Avoid letting short-term focuses sub-optimize long term opportunities
This Is More Than a Campaign for Manufacturing Excellence
16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research
 Four Best Practices to Manage the Strategic Vision for the Internet of Things in
Manufacturing
Simon Jacobson (G00307794)
 Understanding the Five Stages of Gartner’s Maturity Model for Manufacturing Excellence
Simon Jacobson (G00294757)
 Hype Cycle for Manufacturing Strategy, 2016
Simon Jacobson (G00290219)
 IoT Survey Analysis: Users Cite Increasing Complexity in Their IoT Implementations
Benoit Lheureux, Angela Kreiter, Ted Friedman, Earl Perkins, Denise Rueb, etc. (G00304167)
17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
ThinkCast
the Gartner Podcast Channel
• Listen to leading analyst and
thought leaders discuss;
• The latest insights
• Best practices
• Informed predictions
• Solve your immediate challenges
• Build a better long-term strategy
• Episodes updated weekly
Listen and subscribe now:
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18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
 Top trends and predictions
 Mastermind guests and Gartner keynotes
 Face-to-face analyst consultations
 Unparalleled peer connections
 In-depth interactions with leading solution providers
 An agenda mapped to your priorities
19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Download the
presentation
A PDF is available for download
in the Attachments tab.
Get more value
out of your
webinar experience Visit
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Share
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with your colleagues.
A PDF is available for download
in the Attachments tab
Rate
and comment on
your experience
Thank you –
Don’t forget
Connect with us
Keep the conversation going
#Gartner Follow Gartner
@Gartner_Inc
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Download our monthly
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Gartner the IOT in manufacturing operations october 2016

  • 1. 0 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Download the presentation A PDF is available for download in the Attachments tab. Dial in Unable to attend via VoIP and want to dial in? Dial-in directions are in the Attachments tab. Submit your questions Have questions for the analyst? Submit them in the Questions tab. Get more value out of your webinar experience Visit gartner.com/webinars Share the Gartner webinar calendar with your colleagues. A PDF is available for download in the Attachments tab Rate and comment on your experience While you wait for our webinar to begin Connect with us Keep the conversation going #Gartner @nancyatwork Nancy Northrop Follow Gartner @Gartner_Inc Gartner Technical difficulties? Email gartnerwebinars@gartner.com
  • 2. The IoT In Manufacturing Operations: Where Are We Now? Simon F. Jacobson Research VP 17 years at Gartner, 16 years Industry experience Supply Chain For a broader insight into Gartner you can find us: @Gartner_inc on Twitter and Gartner on LinkedIn. @simonfk https://www.linkedin.com/in/simonfkj
  • 3. 2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Transparency Data and Information
  • 4. 3 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved. “We have more data…" "… but over 70% of it never gets used!" “Everything is connected…" “to what? Why? and where?…"
  • 5. 4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The Pieces Are Already In Place
  • 6. 5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Intranet of Things Internet of Things Scope Isolated Optimization Local Extended Optimization Supply Network Value Delivered Controlled, efficient, and flexible process capabilities Agile, collaborative, and ecosystem-based service levels Examples Automated Test and Inspection • Goal: Reduce warranty and escapes in drivetrain production • Approach: IP-addressable tools, IoT platform for higher-fidelity process monitoring • Outcome: 50% decrease in process disruptions Digital Twin of Production Assets • Goal: Boost factory reliability and decrease service costs • Approach: Virtual model of production equipment, advanced algorithms • Outcome: Knowledge and understanding, decreased maintenance hours The Intranet and Intranet of Things
  • 7. 6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Through 2018 three out of five Internet of Things projects in manufacturing operations will only deliver benefits to local plant operations
  • 8. 7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Digitalization vs. Storm Windows
  • 9. 8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Inwardly Focused Ecosystems Do Not Thrive Source: "Factory of the Future Strategies Innovate How Production Delivers Value" (G00275084) Process Granularity Performance
  • 10. 9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cultivate Information-Based Ecosystems Process Granularity Performance Production Plan Source Deliver Service Partner Partner Partner Partner Partner Partner Partner Partner Partner Source: "Factory of the Future Strategies Innovate How Production Delivers Value" (G00275084)
  • 11. 10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Poll: Which styles of analytics does/will your organization use for its IoT data in manufacturing operations? A. Descriptive B. Diagnostic C. Predictive D. Prescriptive Please do not vote if you have not already or are not planning to implement an IoT project in the next 12 months
  • 12. 11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Difficulty (to Scale) Time Scale Low High QuickSlow Factory Supply Chain Reliability Error proofing Serialization Energy Management Asset Performance Decision Quality Labor Efficiency Improved Inventory and Cash Flow Safety IT TCODecision Latency Pull-Based Replenishment Degree of Connectivity LowHigh Traceability Break The Plant Centric Benefits Model! Intranet of Things Internet of Things Digital Twin Availability
  • 13. 12 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The Manufacturing Improvement Portfolio Balancing Innovation with Core Competency
  • 14. 13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Poll: If you have already or plan to implement an IoT project in the next 12 months, are you planning or have already used Digital Twins? A. Yes B. No C. Maybe Please do not vote if you have not already or are not planning to implement an IoT project in the next 12 months
  • 15. 14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. MaturityLevel Inside-Out Outside-In Connected Plants and Factories Connected Value Networks Site Excellence Anticipating Improvement Projects to Drive Efficiencies Integrated Manufacturing Network Integrating Integrated "Excellence" Within the Manufacturing Network Outcome-driven Manufacturing Collaborating Customer-Driven With Integrated End-to-End Processes Solution-driven Manufacturing Orchestrating Value Translated Into Multiple Network Participants Standalone Manufacturing Reacting Accidental Excellence Operating Efficiencies Orchestrated Capabilities The Trap The Opportunity Avoid Outpacing Yourself Five-stage Maturity Model Provides The Roadmap
  • 16. 15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Ask: "What opportunity are we creating?" and not "What problem are we trying to solve?"  Remove barriers and build bridges between IT, OT and line-of- business constituencies.  Connect value creation in the plant with value at the customer  Democratize production data across an ecosystem beyond the plant  Avoid letting short-term focuses sub-optimize long term opportunities This Is More Than a Campaign for Manufacturing Excellence
  • 17. 16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Recommended Gartner Research  Four Best Practices to Manage the Strategic Vision for the Internet of Things in Manufacturing Simon Jacobson (G00307794)  Understanding the Five Stages of Gartner’s Maturity Model for Manufacturing Excellence Simon Jacobson (G00294757)  Hype Cycle for Manufacturing Strategy, 2016 Simon Jacobson (G00290219)  IoT Survey Analysis: Users Cite Increasing Complexity in Their IoT Implementations Benoit Lheureux, Angela Kreiter, Ted Friedman, Earl Perkins, Denise Rueb, etc. (G00304167)
  • 18. 17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. ThinkCast the Gartner Podcast Channel • Listen to leading analyst and thought leaders discuss; • The latest insights • Best practices • Informed predictions • Solve your immediate challenges • Build a better long-term strategy • Episodes updated weekly Listen and subscribe now: GooglePlay iTunes SoundCloud Stitcher Web
  • 19. 18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Top trends and predictions  Mastermind guests and Gartner keynotes  Face-to-face analyst consultations  Unparalleled peer connections  In-depth interactions with leading solution providers  An agenda mapped to your priorities
  • 20. 19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Download the presentation A PDF is available for download in the Attachments tab. Get more value out of your webinar experience Visit gartner.com/webinars Share the Gartner webinar calendar with your colleagues. A PDF is available for download in the Attachments tab Rate and comment on your experience Thank you – Don’t forget Connect with us Keep the conversation going #Gartner Follow Gartner @Gartner_Inc Gartner Technical difficulties? Email gartnerwebinars@gartner.com Download our monthly webinars A PDF is available for download in the Attachments tab. @nancyatwork Nancy Northrop