Grundfos iSolutions Cloud for Wastewater Networks 28th January 2020 WWT Conference Ryan Pearson
#1 74 83 Pump manufacturer in the world Years old (founded in 1945) Companies across the world >16 19,000 Million units produced every year Employees worldwide Companies (1) 3,6 Turnover (billion EUR) in 2018 Owner 2
Grundfos (like many organisations) has embarked on a Digital Transformation journey… THE NEW CORE IN GRUNDFOS capable of developing and bringing to market a combination of physical and digital products and services Digital As-a-service New business models, e.g. performance X driven contracts Core Digital & Innovation Pump and systems, New core Services spare-parts Pumps, systems and Advanced digital Engine solutions with offerings and and simple services services connectivity and sensors DIGITAL BUILDING BLOCKS PREDICTIVE REQUIREMENTS MONITORING ALARMS REMOTE CONTROL OPTIMIZATION CONNECTIVITY MAINTENANCE
Water Utility Applications – United Kingdom High-quality data is the foundation for better service for customers, What are and enables the effective development of markets. Risks Challenges OFWAT saying? • Cyber Security We want to see the sector make a step change and start driving • Application suitability innovation through better use of data • IT/OT Convergence • Legal T&C’s • Value not realised • Leveraging Value It will improve overall efficiency by enabling smarter management of • Unknown Unknowns But Utilities • networks and more targeted and lower cost interventions. Quantifying Value • Known Unkowns • Bureaucracy have many • Data reliability • Asset Standards concerns • Control • Data Validation despite the • Supply Chain • Commercial benefits • Digitally enabled hardware DCO | Confidential for internal use only
Grundfos iSOLUTIONS CLOUD for Wastewater Networks Data-driven optimization Future solution SCADA to Cloud Wastewater Network For: • Asset management • OPEX savings SCADA/ Cloud • Operational reliability • SMART Network Grundfos equipment/solution “x - name” equipment/solution SCADA/ Cloud 5
WWNC Software Capabilities OVERFLOW ACTUAL PREDICTIVE CAPACITY INFILTRATION WARNING FLOW MAINTENANCE UTILIZATION 6
TECHNICAL | Flexible connection and data collection to generate value 1 2 3 Cloud/ Cloud/ Grundfos Grundfos Grundfos SCADA SCADA End-to-end End-to-end to cloud Cloud-to-cloud 7
Grundfos iSOLUTIONS CLOUD for Wastewater Networks This is how the hardware looks
Co-Creation| WWNC is designed with four essential design principles in mind to unlock the value of the data At the start of the process it was unclear how the value is captured, therefore we ensure the following principles are followed to ensure value created with the data is captured. Alignment with existing Simplicity in structure Ensure access is with tools and ways of and functionality to the correct persons and Application Engineers on hand to interpret that intervention is at working to ensure we ensure it is easy to use the data and transpose the right ptocess stage address gaps and add reflecting current to knowledge value operating practices FOUR KEY DESIGN PRINCIPLES Modularity in input and Minimum-viable- Customer engaged to Simplicity in the way output to ensure only product to reduce enable data the data is obtained required input is complexity verificaiton, reducing and only the data for go to market time for the specific module is captured expansion packages displayed 9
Co-Creation| To ensure our solution creates value, we take a value-based approach and seek to understand the key challenges as well as how we can deliver commercial viability Implementation Phase APPROACH TO VALUE-BASED SOLUTIONS UNDERSTAND IDENTIFY POTENTIAL QUANTIFY IMPACT OF FINALISE SOLUTION TAILORED OFFER & COMERCIAL CHALLENGES SOLUTIONS POTENTIAL SOLUTIONS PROPOSITION Activity Understand and prioritize the key Assess how Grundfos can address Estimate and discuss your current Determine how and with which Calculate annual savings with the pain points of your business. your challenges and identify the operational and risk-associated specific solution Grundfos can suggested solution and present solutions most suitable to your costs. deliver cost reductions and add business case of the offer. needs. most value. Outcome Common starting point for Overview of solutions and the Transparency on operational Specification of services , products Final solution tailored to specific identification of relevant solutions services, products and guarantees impact and additional value from and guarantees in solution and the needs and an overview of the to address challenges. included. risk reduction. price of each. annual savings . 10
Co-Creation| A thorough understanding of the challenges faced in the business or for the particular asset base will help identify relevant solutions KEY STEP EXAMPLES OF CHALLENGES NON-EXHAUSTIVE High cost of Un-optimised asset Low energy High cost of UNDERSTAND maintenance performance efficiency down-time CHALLENGES Unpredictable Lack of transparency Lack of Risk of environmental ! costs on operations transparency spills on costs Activity Understand and prioritize the key pain points of the business. Limited internal Pump failures Lack of internal Stress and resources expertise and pressure from Outcome failing sites capabilities Common starting point for identification of relevant solutions to address challenges. 11
Future State | Deliver customized packages of services and products dependent on the needs and identify the relevant solutions based on an assessment of the priority of the challenges OFWAT Future State | Data Innovation - Use data to get better insight to offer better or new services KEY STEP EXAMPLES OF VARIOUS 'AS-A-SERVICE'-SOLUTIONS NON-EXHAUSTIVE Operations as a Pump as a service Maintenance as a Energy optimisation Transparency as a IDENTIFY POTENTIAL service service service SOLUTIONS Grundfos deliver Grundfos ensure Grundfos deliver pumps, take care of Grundfos provide optimization of Grundfos provide pumps, digital maintenance, repair maintenance for all energy consumption digital services and solution and take and spare parts and of the customer's of the customer's data reports for care of operations, provide digital pumps. asset base. existing asset base. incl. maintenance & solution. energy optimisation. Activity Assess how Grundfos can address your challenges and identify the solutions most suitable to your needs. Outcome Overview of possible solutions and the services, products and guarantees included. 12
Future State |Four key steps to initiate new commercial solutions based on identification of specific business needs, ensuring investment is only where it is required. OFWAT Future State | Data Innovation - Drive Product and Service Innovation - Through the improvement of existing or the creation of new services KEY STEPS 1 2 3 4 CUSTOMER CHALLENGES BUSINESS MODEL & CUSTOMER COSTS & VALUE Commercial & Technical MODULES POTENTIAL Offer Sheets Customer P-a-a-S Customer Grundfos info modules costs P&L Understand the customer Select the modules offered to Quantify the operational value Estimate Grundfos revenue challenges and identify pain ensures the right input fields of the offering by gathering or and actual costs. Discuss value points and possible value and outputs in the following estimating customer costs. quantification and fee drivers to facilitate an internal sheets are enabled. internally. Ensure technical discussion on the relevant viability in the future state business model. digital ecosystem 13
Summary Notes: ✓ We have managed to clear barriers for initial implementation; I. Identified Client Need II. Legal T&C’s. III. System Integration/Technical Approval IV. Application Feasibility V. Process Responsibility, Governance and processes VI. Potential Value Drivers VII. Preferred Future Developments based on need ✓ Commercial Model based on actual value created to be assessed after initial phase. ✓ Future state ecosystem integration incorporating real time control and AI is a possibility, enabled by current data capture. 14
Next steps Implement Solution & potential co-create ” We never know the value of water till the well is dry Thomas Fuller 15
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