SIEMENS DIGITALIZATION STRATEGY SINALYTICS PLATFORM

Công Nghệ Thông Tin - Công nghệ thông tin - Quản trị kinh doanh Unrestricted Siemens AG 2016 siemens.com Siemens Industry Analyst Briefing Call Siemens Digitalization Strategy Sinalytics Platform Dr. Horst J. Kayser, Chief Strategy Officer Siemens AG Dr. Norbert Gaus, Head of Siemens Research and Technology Center Munich, January 20, 2016 Unrestricted Siemens AG 2016 January 2016Page 2 Corporate Strategy Corporate Technology – 26 high-speed trains at Renfe Spanish Rail Company (Madrid- Barcelona-Malaga) – Performance contract with availability guarantee – Passengers are reimbursed for delays >15 mins – On-time rate of 99.9 – 60 passengers switched from aircraft to train Unrestricted Siemens AG 2016 January 2016Page 3 Corporate Strategy Corporate Technology Demographic change Urbanization Climate change Globalization Five Megatrends shaping our world of tomorrow – changes in the markets are accelerating 1 UN World Population Prospects (2015) 2 Met Office Hadley Centre observations (2014) 3 McKinsey Global Institute Cityscope (2011) 4 UNCTAD (2013) 5 Cisco: The Internet of Everything (2013) 6 IDC: The Digital Universe (2012) Digital transformation Trend to increase investment abroad Growing and ageing population Cities as main driver of GDP growth Global warming and weather extremes Contribution to global GDP growth, 2007-20253 , in Foreign direct investment vs. global GDP, in 4 World population1, in bn Annual mean temperature variations 1950-20142 (in ° C) Connected devices5, in bn -0,3 0 0,3 1950 1970 1990 2010 0.3 -0.3 0 2 4 6 1970 1976 1982 1988 1994 2000 2006 2012 2013 Other cities and rural areas 38 Cities >10mn 5mn – 10mn 2mn – 5mn 150k – 2mn 50 23 9 2012 20202016 Exponential growth of connected devices ... … and digital data6 2.8 ZB 40.0 ZBZB = Zettabytes = 109 Terabytes 9.00 0.16 1.92 0.83 6.10 0.12 2015 1.25 -0.010.00 1.36 2050 Developing countries Industrial countries 15-65 65+ 0-14 Age Unrestricted Siemens AG 2016 January 2016Page 4 Corporate Strategy Corporate Technology Global trends Siemens strategy – ‘Ingenuity for Life’ Market development (illustrative) Digital transformation Networked world of complex and heterogeneous systems Globalization Global competition driving productivity and localization Urbanization Infrastructure investment needs of urban agglomerations Demographic change Decentralized demand of a growing and aging population Climate change Higher resource efficiency in an all-electric world Efficient Energy Application Power Transmission, Distribution Smart Grid Power Generation Imaging In-Vitro Diagnostics Today Mid term – 2020 Electrification ~2–31 Market growth Automation Digitalization ~4–61 Market growth ~7–91 Market growth Innovating along the electrical value chain 1 Est. market growth (CAGR) over cycle Unrestricted Siemens AG 2016 January 2016Page 5 Corporate Strategy Corporate Technology Siemens Digitalization Siemens Digitalization – Leveraging digital technology trends for concrete customer benefits Connectivity and Web-of-systems Collaboration and mobile Smart data and analytics Cloud technologies Cyber-Security Maintenance services Automation operation Design engineering Improved productivity time-to-market Higher flexibility resilience Increased availability efficiency Combining the virtual physical world … … across entire customer value chains Unrestricted Siemens AG 2016 January 2016Page 6 Corporate Strategy Corporate Technology Digitally enhanced electrification and automation 1 automation player in industry, buildings, grids, power plants, and rail €0.6 billion revenue in FY15 +15 yoy growth FY15 >300k devices – Remotely monitored and administered – Data driven – Analytics enabled Digital services €3.1 billion revenue in FY15 +16 yoy growth FY15 Leading provider across verticals Vertical software Customer benefit translates to substantial revenue growth for Siemens – Siemens Digitalization XHQ Unrestricted Siemens AG 2016 January 2016Page 7 Corporate Strategy Corporate Technology Digitally enhanced electrification and automation 1 automation player in industry, buildings, grids, power plants, and rail €0.6 billion revenue in FY15 +15 yoy growth FY15 >300k devices – Remotely monitored and administered – Data driven – Analytics enabled Digital services €3.1 billion revenue in FY15 +16 yoy growth FY15 Leading provider across verticals Vertical software Customer benefit translates to substantial revenue growth for Siemens XHQ Unrestricted Siemens AG 2016 January 2016Page 8 Corporate Strategy Corporate Technology Sinalytics Platform powers Siemens Digital Services Connectivity 300,000+ connected devices including wind turbines, buildings, trains Advanced analytics Creating new insights from smart data by leveraging world-class technologies Customer outcomes ─ Higher availability ─ Lower costs ─ Increased performance ─ More security Know-how ─ Product, domain and data science know-how ─ Overall IT know-how with about 17,500 software engineers ─ 160 Data Scientists Unrestricted Siemens AG 2016 January 2016Page 9 Corporate Strategy Corporate Technology The Digital Transformation of Services Improving efficiency of classical services Performance Outcome based Contracting Classical Time Material Maintenance Network Platforms E.g. Digital diagnostics E.g. Augmented Reality for training and Maintenance Repair and Overhaul E.g. digitally optimised work scheduling Unrestricted Siemens AG 2016 January 2016Page 10 Corporate Strategy Corporate Technology The Digital Transformation of Services 1. Predictive Maintenance 2. Performance-based contracts 3. Outcome-oriented contracts Performance Outcome based Contracting Classical Time Material Maintenance Network Platforms E.g. Healthcare E.g. Power ServicesE.g. Mobility Power Services Objectives Improve customer ROI through flexible service in any market condition Objectives Prevent unplanned downtime of CT scanners caused by tube failures Objectives Increase availa- bility and reliability of trains Preventive Maintenance Reactive Maintenance Condition-based Maintenance Predictive Maintenance Prescriptive Maintenance Unrestricted Siemens AG 2016 January 2016Page 11 Corporate Strategy Corporate Technology Digital Service Siemens Digital Services Portfolio – Overview Remote services based on device connectivity – Data generated by connected devices and transferred for evaluation Data analytics- enabled services – Value added by additional insights generated from available data Network Platforms – Generation of additional value by bringing together relevant experts and data Division view (examples) PG Power generation, transmission distribution PSWP EM – Power Plant optimization, remote support-operation – Flex LTP, data-driven upgrades of turbines – Fleet statistics of power plants and wind farms – Wind farm optimisation – Performance contracts consulting – SCADA, WTC3 and vibration diagnostics – Remote Monitoring (Switchgear and Transformers) – Smart Grid Asset performance management security services – Smart Grid Asset operation services BT – System performance services – Building performance energy optimisation services – Smart Guidance – Smart Monitoring – Smart Data Analysts – 3D printing for optimised parts logistics MO – Master Asset Uptime – Optimise energy performance – Maximise process efficiency – Enhance Industrial Cyber security DF PD – Predictive maintenance – Network platform for diagnostic exchange HC Building Technologies Mobility Healthcare Digital Factory Process and Drives Unrestricted Siemens AG 2016 January 2016Page 12 Corporate Strategy Corporate Technology Drive train analytics Industrial Network Analytics Machine tool analytics Security Assessments and Implementation Security Managed Services Digital Services Example – Digital Factory Master asset uptime Enhance Industrial Cyber-Security Optimize Energy Performance Maximize process efficiency Control performance a...

Siemens Industry Analyst Briefing Call

Siemens Digitalization Strategy & Sinalytics Platform

Dr Horst J Kayser, Chief Strategy Officer Siemens AG

Dr Norbert Gaus, Head of Siemens Research and Technology Center | Munich, January 20, 2016

– 26 high-speed trains

at Renfe Spanish Rail Company (Madrid- Barcelona-Malaga)

– Performance contract with availability

guarantee

– Passengers are reimbursed for delays

>15 mins

– On-time rate of 99.9%

– 60% passengers switched from aircraft

to train

Demographic change

Urbanization

Climate change

Globalization

Five Megatrends shaping our world of tomorrow –

changes in the markets are accelerating

Digital transformation

Trend to increase investment abroad

Growing and ageing population

Cities as main driver

0.3

-0.3

0246

1970 1976 1982 1988 1994 2000 2006 20122013

Other citiesand rural areas38%

Exponential growth of connected devices

… and digital data6

2.8 ZB

40.0 ZB

Global trends

Siemens strategy – ‘Ingenuity for Life’

Market development (illustrative) Digital

transformation

Networked world of complex

and heterogeneous systems

Globalization

Global competition driving

productivity and localization

Higher resource efficiency

Application

Power Transmission, Distribution &

Smart Grid

Power Generation

Imaging &

In-Vitro Diagnostics

Combining the virtual & physical world …

… across entire customer value chains

Digitally enhanced

electrification

and automation

buildings, grids, power plants, and rail

€0.6 billion revenue in FY15

+15% yoy growth FY15

€3.1 billion revenue in FY15

+16% yoy growth FY15 Leading provider

across verticals

Vertical software

Customer benefit translates to substantial

revenue growth for Siemens – Siemens Digitalization

XHQ

Digitally enhanced

electrification

and automation

buildings, grids, power plants, and rail

€0.6 billion revenue in FY15

+15% yoy growth FY15

€3.1 billion revenue in FY15

+16% yoy growth FY15 Leading provider

across verticals

Vertical software

Customer benefit translates to substantial

revenue growth for Siemens

XHQ

Sinalytics Platform powers Siemens Digital Services

Connectivity

300,000+

connected devicesincluding wind turbines,buildings, trains

Advanced analytics

Creating new insightsfrom smart data byleveraging world-classtechnologies

Customer outcomes

─ Higher availability

─ Lower costs

─ Increasedperformance

software engineers

─ 160 Data Scientists

The Digital Transformation of Services

Improving efficiency of classical services

Performance & Outcome based Contracting

Classical Time &

Material Maintenance

Network Platforms

E.g Digital diagnostics

E.g Augmented Reality for training and Maintenance Repair and

Overhaul

E.g digitally optimised work scheduling

The Digital Transformation of Services

1 Predictive Maintenance 2 Performance-based contracts 3 Outcome-oriented contracts

Performance & Outcome based Contracting

Classical Time &

Material Maintenance

Network Platforms

Power Services

Objectives Improve customer ROI through flexible service in any

market condition

Objectives Prevent unplanned downtime of CT

scanners caused

by tube failures

Objectives Increase availa- bility and reliability

of trains

Preventive Maintenance

Reactive

Maintenance

Condition-based Maintenance

Predictive Maintenance

Prescriptive Maintenance

connected devices and

transferred for evaluation

Data

analytics-enabled services

– Value added by additional

insights generated from

available data

Network Platforms

– Generation of additional

value by bringing together

relevant experts and data

Division view (examples)

PG

Power generation, transmission & distribution

PS

– Power Plant optimization, remote support/-operation

– Flex LTP, data-driven upgrades of turbines

– Fleet statistics of power plants and wind farms

– Wind farm optimisation

– Performance contracts / consulting

– SCADA, WTC3 and vibration diagnostics

– Remote Monitoring (Switchgear and Transformers)

– Smart Grid Asset performance management / security services

– Smart Grid Asset operation services

BT

– System performance services

– Building performance / energy optimisation services

– Smart Guidance

– Smart Monitoring

– Smart Data Analysts

– 3D printing for optimised parts logistics

MO

– Master Asset Uptime

– Optimise energy performance

– Maximise process efficiency

– Enhance Industrial Cyber security

Drive train analytics

Industrial Network Analytics

Security Managed Services

Digital Services Example –

Digital Factory

Master asset uptime Optimize Energy Performance Enhance Industrial Cyber-Security

Maximize process efficiency

Control performance analytics

Process event analytics

Dynamic process optimization Energy analytics

Siemens Digital Services demonstrate

proven success in diverse industries

Higher plant

availability

12% energy cost savings

Target – 5% energy cost savings

The Digital Transformation of Services

Performance & Outcome based Contracting

Classical Time &

Material Maintenance

Network Platforms

– Increased utilization

– Improved dose quality

– Enhanced fleet management & standardization

– Clinical collaboration

– Optimized energy performance

– Increased asset up-time

– Maximized process efficiency

– Enhanced cyber-security

Teamplay – connect, compare, collaborate Mindsphere – Cloud for Industry

‒ Availability guarantee and shared risk is only possible with highly advanced analytics

‒ Trains are fitted with hundreds

of sensors to monitor critical parameters

‒ Siemens Sinalytics provides the data basis to ensure very high availability and reliability

Siemens Digital Services powered by Sinalytics – Combining

technology with domain and context know-how for customer value

Context of data from installed basis

+ Context know-how

+ Analytics know-how

Customer value Options for action

Information Data analysis

Data

Siemens Digital Services powered by Sinalytics –

Example: Predictive maintenance of trains and locomotives

Results

Improved asset availability

Avoidance of unnecessary maintenance Reduction of maintenance costs

Rail Transport

– Market drivers

– Rail operator challenges

– Rail user demands

Trains/Locomotives

– Rail vehicle engineering – Mechanical vibrations – Sensor properties – Maintenance operations

Data Science

– Pattern identification – Machine learning – Automated alert generation

Domain

know-how

Context know-how

Customer value

Analytics know-how

Siemens

Siemens Digital Services powered by Sinalytics –

Example: Optimization of gas turbine operations

Results

Reduced NOx Emissions Extension of service intervals

– Combustion chemistry – Sensor properties

Autonomous Learning

– Neural Networks – Smart Data Architecture processes data from 5,000 sensors per second

Domain

know-how

Context know-how

Customer value

Analytics know-how

Siemens

Sinalytics: Our new platform architecture for data-based services

We build on common technology platforms …

+ Latest technology for all Siemens businesses

+ Reduction of technical complexity in the company

+ Leveraging synergies through scaling

+ Deep know-how of customer processes and challenges

+ Many existing applications that already generate value for our customers

Mobility

Building Technologies

Sinalytics Data analyticsData visualizationModeling/AnalysisData managementData integration

Cloud/Connectivity Cyber Security

… EnergyIP

Mindsphere

Sinalytics builds on a strong technology stack for connectivity,

data analytics supported by state-of-the-art cyber security

Variety of data sources and types

Customizable analytics solution packages

Sinalytics

BU specific use case implementations

Common industrial data analytics platform

‒ Several off-the-shelf tools are available in each layer

‒ Tools are integrated with each other through “glue code”

‒ On-premise and cloud deployment possible

Common data analytics set-up

‒ Modular analytics solution packages

We continue developing data analytics capabilities of Sinalytics:

From predictive to prescriptive analytics

Same functional architecture

Predictive analytics for service

On-premise and in the cloud

“Data and models at rest”

Streaming analytics and for decision support

On-premise, in the cloud

and in the field

“Data and models in motion”

Operational prescriptive analytics

On-premise, in the cloud

and in the field

“Automated data analytics”

distributed analytics Using Webof Systems

technologies

Siemens leverages the Internet of Things

to the needs of our customers in industry and infrastructure

+ The Web of Systems puts devices, machines and their interactions in the center of digitally-

networked industries

+ Devices process data locally and make decisions

+ Owners decide what happens with their data

+ Devices organize themselves and communicate with each other

+ New functionalities can be installed as with apps on smartphones

+ The installed base can be digitalized with the Web

Mobility

Building Technologies

Web of Systems

Web of Systems technologies already work –

Example: The Intelligent Secondary Substation in a Smart Grid

Sinalytics brings together the technologies needed

in an increasingly digitalized world

Energy management

Power generation

Energy consumers

On-premise, in the cloud and

soon in-the-field leveraging

Web of Systems technologies

Cyber security

Protecting customer data in

open, interconnected industrial

IT systems

Connectivity

Secure and proven technologies connecting already ~300k devices

Smart networked devices & systems

System-aware, autonomous and app-enabled to meet industry and infrastructure needs

Sinalytics