A. Vaccani&Partner AG
Bid Confusion, Big Threat or Big Opportunity? Zollikerstrassse 141
P.O. Box 1682
CH-8032 Zurich
Switzerland
T +41 44 392 99 00
info@avp-group.net
www.avp-group.net
Presented by Scott Affelt
January 2017
A. Vaccani & Partner AG | 2017 | Page 1
What is Big Data, Analytics and the
Internet of Things?
Source: Dataconomy
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Assets
A. Vaccani & Partner AG | 2017 | Page 10
Asset Performance Management
Asset Operations
Management Management
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Current Industry
Assets Practices
(limited by technology & cost)
A. Vaccani & Partner AG | 2017 | Page 11
Asset Performance Management
Asset Operations
Management Management
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Potential Future
Assets
Applications
A. Vaccani & Partner AG | 2017 | Page 12
(enabled by technology & cost)
How Data Analytics Adds Value
What
should I do
When about it?
will it Prescriptive
Past happen? Analytics
Why
State did it Predictive
happen? Analytics
What Diagnostic
Value happened? Analytics
Descriptive
Analytics
Current/Future
State of Analytics
Source: Gartner
Difficulty
A. Vaccani & Partner AG | 2017 | Page 13
Key Areas of Value Creation
Benefits Value Created
Predictive Early detection of failures Reduce downtime by 35%
Improved maintenance planning Reduce unplanned outages by 70%
Maintenance Remaining useful life predictions. Reduce maintenance costs by 25%.
Advanced Pattern Reduced capital spending Increase availability
Recognition + Lengthen maintenance intervals
Diagnostics +
Prognostics
Sources: DOE Study on Predictive Maintenance. NETL & EPA studies on Efficiency Improvements.
A. Vaccani & Partner AG | 2017 | Page 14
Predictive Maintenance Benefits
Direct Value Created
Accenture Study
Avoided Cost of Unplanned Outages 10GW Fleet
Improved safety
Domain Expertise
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
Learning Computer
Science
Domain Expertise
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
Learning Computer
Science
Domain Expertise
Process/Reliability
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
OEM Domain Knowledge
Learning is
Computer
Science
KEY to Maximize Value
Extracted from Data Analytics
A. Vaccani & Partner AG | 2017 | Page 19
New Business Models Can Capture Value
Services
Services
Products
Products
Customer
Outcomes
Optimized Assets & Production
Customer Value
Share risk
Transactional Reduce Total Cost of Ownership
Break/fix Long-Term Service Agreement
Preventive Maintenance
Sell Parts/Spares
Reactive Maintenance
Low
1980 2017
Capability Maximize use of core competencies & Leverage use of core competencies &
Development existing resources existing resources
Focus is on Product
Source: SmartDesign
Create new network/system value
A. Vaccani & Partner AG | 2017 | Page 23 Focus is on the System
Concepts of New Solution
Offerings and Business Models
Traditional Non-Traditional
GE IBM
Siemens Google
Schneider
Oracle
Emerson
ABB Microsoft
Honeywell SAP
AspenTech
Yokogowa
Rockwell
A. Vaccani & Partner AG | 2017 | Page 32
Where does the AVP Group fit?
Domain Expertise
Knowledge of:
Domain,
Data Analytics,
Traditional
Software Processing Market,
AVP
DATA
Value Proposition,
Players/partners
Math &
Group
ANALYTICS
Statistics Machine
Learning Computer
Science
Implementation
Digital Strategy
Initialization
Digital
Business Strategy Preparation of
Analysis Formation Implementation
External
Internal
Goals, deliverables, Deep understanding of: Digital Vision and roadmap Final alignment of the digital
key issues Current strategic vision Digital strategy including strategy with top
Finalizing project What data and value of data in the Target focus areas to provide management
organization, kick-off business model customer vale Organizational
teams Digital SWOT Digital Value Chain and gaps requirements
Define needs for Customer expectations Monetizing strategy Development budget
internal and external Competitive landscape Make or buy Roadmap and Millstones for
analysis Mapping of key players Partnering strategy and interfaces implementation
Capability assessment
AVP Group
S.Affelt@AVP-Group.com
+1 303-883-0399
Source: Dataconomy
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Assets
A. Vaccani & Partner AG | 2017 | Page 10
Asset Performance Management
Asset Operations
Management Management
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Current Industry
Assets Practices
(limited by technology & cost)
A. Vaccani & Partner AG | 2017 | Page 11
Asset Performance Management
Asset Operations
Management Management
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Potential Future
Assets
Applications
A. Vaccani & Partner AG | 2017 | Page 12
(enabled by technology & cost)
How Data Analytics Adds Value
What
should I do
When about it?
will it Prescriptive
Past happen? Analytics
Why
State did it Predictive
happen? Analytics
What Diagnostic
Value happened? Analytics
Descriptive
Analytics
Current/Future
State of Analytics
Source: Gartner
Difficulty
A. Vaccani & Partner AG | 2017 | Page 13
Key Areas of Value Creation
Benefits Value Created
Predictive Early detection of failures Reduce downtime by 35%
Improved maintenance planning Reduce unplanned outages by 70%
Maintenance Remaining useful life predictions. Reduce maintenance costs by 25%.
Advanced Pattern Reduced capital spending Increase availability
Recognition + Lengthen maintenance intervals
Diagnostics +
Prognostics
Sources: DOE Study on Predictive Maintenance. NETL & EPA studies on Efficiency Improvements.
A. Vaccani & Partner AG | 2017 | Page 14
Predictive Maintenance Benefits
Direct Value Created
Accenture Study
Avoided Cost of Unplanned Outages 10GW Fleet
Improved safety
Domain Expertise
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
Learning Computer
Science
Domain Expertise
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
Learning Computer
Science
Domain Expertise
Process/Reliability
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
OEM Domain Knowledge
Learning is
Computer
Science
KEY to Maximize Value
Extracted from Data Analytics
A. Vaccani & Partner AG | 2017 | Page 19
New Business Models Can Capture Value
Services
Services
Products
Products
Customer
Outcomes
Optimized Assets & Production
Customer Value
Share risk
Transactional Reduce Total Cost of Ownership
Break/fix Long-Term Service Agreement
Preventive Maintenance
Sell Parts/Spares
Reactive Maintenance
Low
1980 2017
Capability Maximize use of core competencies & Leverage use of core competencies &
Development existing resources existing resources
Focus is on Product
Source: SmartDesign
Create new network/system value
A. Vaccani & Partner AG | 2017 | Page 23 Focus is on the System
Concepts of New Solution
Offerings and Business Models
Traditional Non-Traditional
GE IBM
Siemens Google
Schneider
Oracle
Emerson
ABB Microsoft
Honeywell SAP
AspenTech
Yokogowa
Rockwell
A. Vaccani & Partner AG | 2017 | Page 32
Where does the AVP Group fit?
Domain Expertise
Knowledge of:
Domain,
Data Analytics,
Traditional
Software Processing Market,
AVP
DATA
Value Proposition,
Players/partners
Math &
Group
ANALYTICS
Statistics Machine
Learning Computer
Science
Implementation
Digital Strategy
Initialization
Digital
Business Strategy Preparation of
Analysis Formation Implementation
External
Internal
Goals, deliverables, Deep understanding of: Digital Vision and roadmap Final alignment of the digital
key issues Current strategic vision Digital strategy including strategy with top
Finalizing project What data and value of data in the Target focus areas to provide management
organization, kick-off business model customer vale Organizational
teams Digital SWOT Digital Value Chain and gaps requirements
Define needs for Customer expectations Monetizing strategy Development budget
internal and external Competitive landscape Make or buy Roadmap and Millstones for
analysis Mapping of key players Partnering strategy and interfaces implementation
Capability assessment
AVP Group
S.Affelt@AVP-Group.com
+1 303-883-0399
Source: Dataconomy
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Assets
A. Vaccani & Partner AG | 2017 | Page 10
Asset Performance Management
Asset Operations
Management Management
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Current Industry
Assets Practices
(limited by technology & cost)
A. Vaccani & Partner AG | 2017 | Page 11
Asset Performance Management
Asset Operations
Management Management
Predictive Optimization
Maintenance
Value Created
Production
Advanced
Preventive
Control
Reactive Control
Potential Future
Assets
Applications
A. Vaccani & Partner AG | 2017 | Page 12
(enabled by technology & cost)
How Data Analytics Adds Value
What
should I do
When about it?
will it Prescriptive
Past happen? Analytics
Why
State did it Predictive
happen? Analytics
What Diagnostic
Value happened? Analytics
Descriptive
Analytics
Current/Future
State of Analytics
Source: Gartner
Difficulty
A. Vaccani & Partner AG | 2017 | Page 13
Key Areas of Value Creation
Benefits Value Created
Predictive Early detection of failures Reduce downtime by 35%
Improved maintenance planning Reduce unplanned outages by 70%
Maintenance Remaining useful life predictions. Reduce maintenance costs by 25%.
Advanced Pattern Reduced capital spending Increase availability
Recognition + Lengthen maintenance intervals
Diagnostics +
Prognostics
Sources: DOE Study on Predictive Maintenance. NETL & EPA studies on Efficiency Improvements.
A. Vaccani & Partner AG | 2017 | Page 14
Predictive Maintenance Benefits
Direct Value Created
Accenture Study
Avoided Cost of Unplanned Outages 10GW Fleet
Improved safety
Domain Expertise
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
Learning Computer
Science
Domain Expertise
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
Learning Computer
Science
Domain Expertise
Process/Reliability
Traditional Data
Controls Processing
DATA
ANALYTICS
Math &
Statistics Machine
OEM Domain Knowledge
Learning is
Computer
Science
KEY to Maximize Value
Extracted from Data Analytics
A. Vaccani & Partner AG | 2017 | Page 19
New Business Models Can Capture Value
Services
Services
Products
Products
Customer
Outcomes
Optimized Assets & Production
Customer Value
Share risk
Transactional Reduce Total Cost of Ownership
Break/fix Long-Term Service Agreement
Preventive Maintenance
Sell Parts/Spares
Reactive Maintenance
Low
1980 2017
Capability Maximize use of core competencies & Leverage use of core competencies &
Development existing resources existing resources
Focus is on Product
Source: SmartDesign
Create new network/system value
A. Vaccani & Partner AG | 2017 | Page 23 Focus is on the System
Concepts of New Solution
Offerings and Business Models
Traditional Non-Traditional
GE IBM
Siemens Google
Schneider
Oracle
Emerson
ABB Microsoft
Honeywell SAP
AspenTech
Yokogowa
Rockwell
A. Vaccani & Partner AG | 2017 | Page 32
Where does the AVP Group fit?
Domain Expertise
Knowledge of:
Domain,
Data Analytics,
Traditional
Software Processing Market,
AVP
DATA
Value Proposition,
Players/partners
Math &
Group
ANALYTICS
Statistics Machine
Learning Computer
Science
Implementation
Digital Strategy
Initialization
Digital
Business Strategy Preparation of
Analysis Formation Implementation
External
Internal
Goals, deliverables, Deep understanding of: Digital Vision and roadmap Final alignment of the digital
key issues Current strategic vision Digital strategy including strategy with top
Finalizing project What data and value of data in the Target focus areas to provide management
organization, kick-off business model customer vale Organizational
teams Digital SWOT Digital Value Chain and gaps requirements
Define needs for Customer expectations Monetizing strategy Development budget
internal and external Competitive landscape Make or buy Roadmap and Millstones for
analysis Mapping of key players Partnering strategy and interfaces implementation
Capability assessment
AVP Group
S.Affelt@AVP-Group.com
+1 303-883-0399