Disrupt your Industry with Lumada Trends, Lumada IoT Platform and - PowerPoint PPT Presentation

Disrupt your Industry with Lumada Trends, Lumada IoT Platform and Solution Cores Ravi Chalaka, VP, Global IoT and Lumada Marketing Kosta Ristovski, PhD, Sr. Research Scientist, CSI NA

Disruptive Technology is your Opportunity Can’t wait till our customers or markets demand a change

Industrial Revolution 4.0 (Industrial IoT) 2000 Today 1800 1900 * First programmable logic * First assembly line, 1870 * First mechanical loom, 1784 controller (PLC) 1969 FIRST SECOND THIRD FOURTH Mechanization with Mass production with Automation with Cyber-physical steam power electrical energy electronic systems systems 100% replacement ~20% replacement ~80% replacement of ~50% replacement of of equipment like same tools new tooling equipment by legacy machines that looms conveyor belts machines cannot be connected

Evolution of Digital Technologies Europe China Japan India Americas Industrie 4.0 Made in China 2025 Society 5.0 Digital India Industrial IoT INTERNET OF ARTIFICIAL ROBOTICS THINGS INTELLIGENCE Products Outcomes Own Everything-as-a-Service Closed Open Individual optimization Overall optimization Driving Growth and Competitive Advantage

Delivering Value Value Creators Value Drivers Delivering Value Workers 45 to 55% increase in Internet of knowledge worker productivity productivity Things Assets 20 to 50% reduction of machine downtime Uptime Artificial Process 3 to 5% productivity increase Intelligence Improvements Service 10 to 40% reduction of maintenance costs Automation Robotics Quality 10 to 20% increase in yield Improvements Source: McKinsey

Hitachi is Uniquely Positioned for Digital Transformation That Creates Value CIT CLOUD Y Hitachi COMMUNICATIONS INDUSTRIAL IT OT IoT 58+ ARTIFICIAL 107+ Innovation INTELLIGENCE is in our YEARS YEARS BUSINESS DNA IT SYSTEMS BIG DATA CONSUMER ANALYTICS

“illuminate” ＋ “data”

Data is the new oil. It’s valuable, but if unrefined it cannot really be used. It has to changed into gas, plastic or chemicals to create a valuable entity that drives profitable activity, so must data be broken down, analyzed for it to has value. Clive Humby, Mathematician and architect of Tesco’s Clubcard, 2006

Lumada Accelerates IoT journey with data-driven DATA outcomes BUSINESS HUMAN MACHINE

>6 Million Connected Hitachi Machines Pump, Train Elevator Steel valve ATM plant Construction Car vehicle navigation Lumada will connect to every Server MRI Hitachi machine and much more storage

Lumada IoT Platform

Lumada IoT Platform Intelligent Composable Secure Flexible OT systems Lumada IoT platform Lu IT systems Studio Studio Machine Data Application Alerts / Dashboard enablement notifications Business Data Edge Core Analytics Artificial Data Collection Asset intelligence Core Analytics integration Human Data Asset Batch / stream Edge management analytics Data caching / Data blending Filtering Asset Avatar / orchestration Edge analytics Foundry OT = Operational Technology, IT = Information Technology

Lumada’s Intelligent Asset Avatars Physical Asset Asset Visualization Avatar Applications Asset Avatar Physical Asset Type Data Query Asset Avatar Service Alerts Asset Physical Avatar Asset Analytics Asset avatar type is a digital blueprint for Asset avatar is digital Asset avatar provides a class of assets representation of a current state of asset (e.g: Truck) physical asset. (e.g.: using sensor values to Truck #24, Model: 550 meet the needs of users.

Lumada is a Composable Architecture § Customers have made investment in apps, analytics, data management and visualization systems § Lumada can be composed to integrate to customer’s existing systems: 1 2 3 Databases Visualization Asset Data avatar Cloud Data consumer Apps integration data query message queue connectors CRM service Analytics Alerts ERP

Security Challenges in IoT Adoption § Hackers and sensitive data loss create risks and can interrupt operations. Secure Access Token TLS TLS TLS IPSec Asset Edge Core Analytics Studio § Lumada is secured at every tier using authentication, authorization, outbound-only connections, blacklisting and encryption of data at-rest and data in-transit. TLS is Transport Layer Security

Lumada is Flexible Fully on-prem Hybrid on-prem to cloud Fully on cloud Core Core Assets Edge Assets Assets Edge Core Lumada IoT Platform runs anywhere

Lumada Contextualizes all Data Types UNSTRUCTURED DATA SEMI-STRUCTURED DATA STRUCTURED DATA Video or Geo-Location Voice Data Sensor ERP Data Data Asset Image Management Data CRM Machine Data SIMPLIFIED BY LUMADA IOT Data Action Ingest Process Blend Prep Machine Learning

Hitachi’s Co-Creation Approach

Hitachi Co-Creation Ecosystem Customer Challenges Partners Hitachi Insight Group Technology vendors Lumada IoT platform and Co-creation solution cores System integrators Innovation through collaboration Hitachi R&D Hitachi Business Units Global Center for Social Industrial Power & energy Innovation (CSI) Water Urban Financial NEXPERIENCE Government Healthcare

Hitachi Co-Creation Approach Jointly create unique solutions to specific customer challenges and data Engage Build Model Create Solution Validate Analytics model Outcome Business value Understand customer challenges Analytics pipeline Analytics Analytics pipeline Data pipeline Data pipeline Sample data Customer IT & OT Share vision, demos ecosystems Hold workshop Data scientist Delivery engineer Consultant Data scientist Solution developer Data scientist Researcher Domain expert Iterate Solution cores

Customer Requirements and Solution Types

Powered By Lumada Solution Cores

Transforming Asset Maintenance As-is processes Decision maker: 75% of work Corrective maintenance: after failure orders generated on a time schedule may not be necessary and the Time-based maintenance: Periodic maintenance expense may be avoidable Reduce Reduce Reduce maintenance replacement Efficient process repair cost cost cost Increase Right parts Predictive maintenance: as needed availability and right time

Predicting Remaining Useful Life (RUL) for NASA Jet Engines Customer Need Difficult to decide when to replace an asset § Failures before replacement is unsafe or replacement of healthy assets is costly § Solution Extract complex features from historical sensor data for § run-to-failure equipment / components Benchmark Use deep learning to capture temporal information § Apply learned model to real-time sensor data to § estimate remaining useful life Estimating RUL for Jet Engines with NASA data Estimation Error Hitachi’s technology is the most accurate among § publicly reported benchmarks from NASA datasets

Smart Transportation Business UK Outcomes Studio § Real-time monitoring of Hitachi trains Asset Artificial Data Collection Batch / integrati Core Analytics intelligence § Enhanced Asset stream Data on Edge management analytic caching Data blending operational insights Asset Avatar s / / orchestration Filtering Edge Foundry analytics § Optimized maintenance practices Predictive Maintenance CONFIDENTIAL – For use by Hitachi, Ltd. employees and other audiences under NDA only.

Conclusion Studio Asset Artificial Data Collection Batch / integrati Core Analytics intelligence Asset stream Data on Edge management analytic caching Data blending s / Asset Avatar / orchestration Filtering Edge Foundry analytics Disruptive innovations Lumada powered Lumada is the most enables competitive solutions provide composable, flexible, advantage, business descriptive, predictive, intelligent end-to-end IoT transformation and prescriptive analytics platform growth and automation

Let’s create a wonderful future together.

Q & A

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