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Dublin – April 10, 2013


Big Data in industrial applications
Keynote European Data Forum
2013
© Siemens AG 2013 All rights reserved.   siemens.com/answers
Topics of the presentation



  1      Siemens as a leading software provider


  2      Siemens perspective on Big Data


  3      Examples from offerings and research


  4      What can we expect from big Data in industrial applications?




Page 2       2013-04-10   Siemens AG                               © Siemens AG 2013 All rights reserved.
Siemens is a global company active in
Industry, Energy, Infrastructure and cities and
Healthcare


  Revenue by Sector                                                                  Revenue by Region

                      Healthcare                                                                Germany
                                                                                                                    Europe, CIS,
                                  17%                   Energy                                          14%         Africa, Middle East
                                                35%                                        Asia,                37% (excl. Germany)
                    Infra- 22%                                                          Australia 20%
                structure
                                          26%                                                             29%
                                          Industry                                                      Americas         Based on customer location


                                                                                     Continuing operations –
  Revenue and employees
                                                                                     comparison with previous year
               Revenue in millions of €               Employees in thousands
 100,000                                                                       500   In millions of €              FY 2011              FY 2012
   80,000                                                                      400   New orders                      85,166               76,913
   60,000                                                                      300   Revenue                         73,275               78,296
   40,000                                                                      200   Income                           7,376                5,184
   20,000                                                                      100   Free cash flow                   5,918                4,790
         0                                                                           Employees                      359,000             370,000
      FY       1986        1990       1995       2000       2005      2012

As reported in annual reports


Page 3              2013-04-10             Siemens AG                                                         © Siemens AG 2013 All rights reserved.
Siemens aims to being a pioneer in technology
driven markets

                         Future of energy
                         High-performance technologies for the generation, transmission,
                         distribution and use of energy
                         • Highly efficient power generation from fossil fuels as well as renewable sources
                         • Smart grids that integrate decentralized power generation and energy storage units
                         • Comprehensive electromobility solutions – from charging infrastructures to drives


                         Vertical IT
                         Integrated industry-specific hardware and software solutions
                         • Industrial automation         • Building automation
                         • Transport logistics           • Healthcare IT




                         SMART products for local markets
                         Innovative, robust products for entry-level market
                         segments – developed in local markets for local
                         markets and for customers around the globe




Page 4   2013-04-10   Siemens AG                                              © Siemens AG 2013 All rights reserved.
Vertical IT is a new and fast growing market



  Horizontal IT




  Vertical IT                      Vertical IT – a new market




  Equipment




Page 5   2013-04-10   Siemens AG                   © Siemens AG 2013 All rights reserved.
Siemens aims for leadership in vertical IT by
combining domain know how and technology



                             Infrastructure                                                      Key strengths to
      Industry                                           Energy            Healthcare
                                & Cities
                                                                                                 leverage:
                                                                                                 • Deep domain
                                                                                                   know-how and
                                                                                                   customer
                                                                                                   intimacy
                                                                                                 • Outstanding
• PLM                       • Smart Grid            • Plant mgmt         • IT workflows            technology
• Production SW             • Smart buildings       • Plant automation   • Patient record
• Computer aided            • Intelligent traffic   • Renewables           management            • Global
  design                                                                 • E-health                presence

                                     Vertical IT & Software



                                      Horizontal IT
                     (Infrastructure, tools, platforms and services)
PLM: Product lifecycle management


Page 6         2013-04-10         Siemens AG                                            © Siemens AG 2013 All rights reserved.
Topics of the presentation



  1      Siemens as a leading software provider


  2      Siemens perspective on Big Data


  3      Examples from offerings and research


  4      What can we expect from big Data in industrial applications?




Page 7       2013-04-10   Siemens AG                               © Siemens AG 2013 All rights reserved.
The future of big data will be in industrial data

            Social media today mostly in focus

                                                                  In 2000 years, the world
                                                                  generated approximately
                                                                      two Exabytes of
         FACEBOOK GROWS
                                                                      new information:
           250MILLION
          PHOTOS / DAY
                                                                 2,000,000,000,000,000,000
          Social Media               Mobile devices

         The future will focus more on sensor data


                                                                   It now generates
                                                                   that much data in
   ONE OIL RIG OFFERS
    25 THOUSAND
                                             READING METERS
                                             EVERY 15 MINS. IS           1 day
                                              3,000X MORE
    DATA POINTS/SEC
                                              DATA INTENSIVE

    Geophysical            Medical               Smart
    Exploration            Imaging               Grids



Page 8        2013-04-10    Siemens AG                                  © Siemens AG 2013 All rights reserved.
However, data alone is not sufficient to drive
meaningful actions

         Sensor data                       Vertical knowledge




         ONE OIL RIG OFFERS
          25 THOUSAND
          DATA POINTS/SEC




                                                                                   Actions




          READING METERS
          EVERY 15 MINS. IS
           3,000X MORE
          DATA INTENSIVE




Page 9          2013-04-10    Siemens AG                        © Siemens AG 2013 All rights reserved.
Big Data will transform industrial systems

Dimensions of big data




                          Analyze data for         Generate analytics
                         • Optimization of complex system
                        complex systems, not  answers while they still
                           behavior
                          only components            matter

                         • Real time decisions in operational
                           processes
                         • Improvement of sustainability of
                                       Provide additional
                           industrial processes data
                                       context to the



                                             Variety


Page 10    2013-04-10     Siemens AG                            © Siemens AG 2013 All rights reserved.
Topics of the presentation



  1       Siemens as a leading software provider


  2       Siemens perspective on Big Data


  3       Examples from offerings and research


  4       What can we expect from big Data in industrial applications?




Page 11       2013-04-10   Siemens AG                               © Siemens AG 2013 All rights reserved.
Big Data in the European Industrial Sectors
Examples from the Energy Sector

Embracing big data requires both data sharing policies to preserve privacy &
confidentiality and scalable data analytics
• Intelligent on demand reconfiguration of transmission and distribution networks to
  accommodate both large renewable energy parks as well as small distributed generation
• Implementing flexible tariffs for industrial and private demand side management,
  distributed feed-in, and e-car roaming




                                       Price signals          Weather

          Renew-                        TSO1                              TSO2
                                                                                              Industrial DSM
          ables
          parks
                        DSO11
                                                              DSO21
                                                  DSO12




                                                                                       Sustainable
                                       Prosumer           e-car roaming              connected cities
 TSO – Transmission System Operator
 DSO – Distribution System Operator




Page 12        2013-04-10       Siemens AG                                       © Siemens AG 2013 All rights reserved.
Data Management and Real Time Monitoring
for Gas Turbines



                                                                     Benefits
                                                                    • Improved turbine
                                                                      ramp-up with less
                                                                      vibrations (lower
                                                                      maintenance needs)
                                                                    • Reduced NOx
                                                                      Emissions
                          Online-Data: ca. 5,000 variables / s      • Increase of turbine
                                                                      efficiency
                Real-time Data Analysis (1,000 Neural Models)       • Guiding turbine
 Modules




                                                                      development
                                                                      process
                        Database: Input data and model results

                    Complete Data and Dependency Analysis
                          plus Learning Optimization


Page 13    2013-04-10        Siemens AG                          © Siemens AG 2013 All rights reserved.
Forecasting Wind Power Supply with Neural
Networks



  Benefits
                                            Accurate forecasts of the wind energy supply of an entire wind
                                            field enable e.g.
                                            • The usage of wind power as an instantaneously
                                               available energy source,
                                            • The disposition of wind power quantities on the spot market
                                            • An optimal scheduling of wind turbine maintenance jobs
                                            • Efficient power grid management


             Wind Park Structure




Page 14   2013-04-10           Siemens AG                                        © Siemens AG 2013 All rights reserved.
Concept for Short Term Solar Power Forecast



                                              Benefits
                                           • Forecast the solar energy
                                             supply of a selected
                                             control area up to 15 min
                                           • Improve power grid
                                             management and
                                             balancing of energy mix
                            Solar            energy components
                           Forecast




     Sensing Area         Cloud Movement
     Control Area         Cloud Coverage



Page 15      2013-04-10    Siemens AG           © Siemens AG 2013 All rights reserved.
With Power/Plant Monitoring we can detect failures
 and fatigue in advance



                                                               Benefits
                                                              • Detect failures and
                                                                fatigue in advance
                                                              • Alert service
                                                                operators upfront
                                                                before damage
                                                                occurs
                                                              • Mitigate the risk of
                                                                long term service
                                                                contracts
                                                              • Increase the
                                                                efficiency of remote
                                                                monitoring
Condition monitoring platform that predicts failures by
                                                                operations
• learning from historical data and trends
• incorporating it with user defined rules and knowledge


 Page 16    2013-04-10   Siemens AG                        © Siemens AG 2013 All rights reserved.
Advanced Decision Support for Physicians:
   Semantic Information links Text and Images




When marking text in reports, associated diagnosis are highlighted in lists and images

   Page 17     2013-04-10    Siemens AG                                      © Siemens AG 2013 All rights reserved.
Topics of the presentation



  1       Siemens as a leading software provider


  2       Siemens perspective on Big Data


  3       Examples from offerings and research


  4       What can we expect from big Data in industrial applications?




Page 18       2013-04-10   Siemens AG                           © Siemens AG 2013 All rights reserved.
Analytics based on Big Data can
have strong impacts on industry



          Big Data implications             Possible impacts in industry

   • Optimization of complex system       • Optimization of industrial processes
     behavior                               across the value chain, including
                                            semi-autonomous, self organized
   • Real time decisions in operational
                                            continuous change
     processes
                                          • Reduction in operational risks for
   • Improvement of sustainability of
     industrial processes                   customers

                                          • Reduction in capital expenditures

                                          • Automation of decision making on
                                            the level of complex systems

                                          Individual reference cases already
                                             implemented – broader scale
                                                implementation started


Page 19   2013-04-10   Siemens AG                       © Siemens AG 2013 All rights reserved.
What is required to make this all happen?



 Continue research on vertical algorithms



 Implementation of further big data reference cases
                                                                               Capturing the
                                                                                full promise
 Understanding of big data implications                                          of big data
 (privacy concerns, risks, etc.)                                                analytics in
                                                                               the industrial
                                                                                  context
 Improvement of analytics skill base in Europe


 Continued research programs on big data in Europe (basic
 technologies, standard algorithms, data security and privacy, etc.)


Page 20   2013-04-10   Siemens AG                                 © Siemens AG 2013 All rights reserved.

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EDF2013: Keynote Gerhard Kreß: Big Data in Industrial Applications

  • 1. Dublin – April 10, 2013 Big Data in industrial applications Keynote European Data Forum 2013 © Siemens AG 2013 All rights reserved. siemens.com/answers
  • 2. Topics of the presentation 1 Siemens as a leading software provider 2 Siemens perspective on Big Data 3 Examples from offerings and research 4 What can we expect from big Data in industrial applications? Page 2 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 3. Siemens is a global company active in Industry, Energy, Infrastructure and cities and Healthcare Revenue by Sector Revenue by Region Healthcare Germany Europe, CIS, 17% Energy 14% Africa, Middle East 35% Asia, 37% (excl. Germany) Infra- 22% Australia 20% structure 26% 29% Industry Americas Based on customer location Continuing operations – Revenue and employees comparison with previous year Revenue in millions of € Employees in thousands 100,000 500 In millions of € FY 2011 FY 2012 80,000 400 New orders 85,166 76,913 60,000 300 Revenue 73,275 78,296 40,000 200 Income 7,376 5,184 20,000 100 Free cash flow 5,918 4,790 0 Employees 359,000 370,000 FY 1986 1990 1995 2000 2005 2012 As reported in annual reports Page 3 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 4. Siemens aims to being a pioneer in technology driven markets Future of energy High-performance technologies for the generation, transmission, distribution and use of energy • Highly efficient power generation from fossil fuels as well as renewable sources • Smart grids that integrate decentralized power generation and energy storage units • Comprehensive electromobility solutions – from charging infrastructures to drives Vertical IT Integrated industry-specific hardware and software solutions • Industrial automation • Building automation • Transport logistics • Healthcare IT SMART products for local markets Innovative, robust products for entry-level market segments – developed in local markets for local markets and for customers around the globe Page 4 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 5. Vertical IT is a new and fast growing market Horizontal IT Vertical IT Vertical IT – a new market Equipment Page 5 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 6. Siemens aims for leadership in vertical IT by combining domain know how and technology Infrastructure Key strengths to Industry Energy Healthcare & Cities leverage: • Deep domain know-how and customer intimacy • Outstanding • PLM • Smart Grid • Plant mgmt • IT workflows technology • Production SW • Smart buildings • Plant automation • Patient record • Computer aided • Intelligent traffic • Renewables management • Global design • E-health presence Vertical IT & Software Horizontal IT (Infrastructure, tools, platforms and services) PLM: Product lifecycle management Page 6 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 7. Topics of the presentation 1 Siemens as a leading software provider 2 Siemens perspective on Big Data 3 Examples from offerings and research 4 What can we expect from big Data in industrial applications? Page 7 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 8. The future of big data will be in industrial data Social media today mostly in focus In 2000 years, the world generated approximately two Exabytes of FACEBOOK GROWS new information: 250MILLION PHOTOS / DAY 2,000,000,000,000,000,000 Social Media Mobile devices The future will focus more on sensor data It now generates that much data in ONE OIL RIG OFFERS 25 THOUSAND READING METERS EVERY 15 MINS. IS 1 day 3,000X MORE DATA POINTS/SEC DATA INTENSIVE Geophysical Medical Smart Exploration Imaging Grids Page 8 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 9. However, data alone is not sufficient to drive meaningful actions Sensor data Vertical knowledge ONE OIL RIG OFFERS 25 THOUSAND DATA POINTS/SEC Actions READING METERS EVERY 15 MINS. IS 3,000X MORE DATA INTENSIVE Page 9 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 10. Big Data will transform industrial systems Dimensions of big data Analyze data for Generate analytics • Optimization of complex system complex systems, not answers while they still behavior only components matter • Real time decisions in operational processes • Improvement of sustainability of Provide additional industrial processes data context to the Variety Page 10 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 11. Topics of the presentation 1 Siemens as a leading software provider 2 Siemens perspective on Big Data 3 Examples from offerings and research 4 What can we expect from big Data in industrial applications? Page 11 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 12. Big Data in the European Industrial Sectors Examples from the Energy Sector Embracing big data requires both data sharing policies to preserve privacy & confidentiality and scalable data analytics • Intelligent on demand reconfiguration of transmission and distribution networks to accommodate both large renewable energy parks as well as small distributed generation • Implementing flexible tariffs for industrial and private demand side management, distributed feed-in, and e-car roaming Price signals Weather Renew- TSO1 TSO2 Industrial DSM ables parks DSO11 DSO21 DSO12 Sustainable Prosumer e-car roaming connected cities TSO – Transmission System Operator DSO – Distribution System Operator Page 12 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 13. Data Management and Real Time Monitoring for Gas Turbines Benefits • Improved turbine ramp-up with less vibrations (lower maintenance needs) • Reduced NOx Emissions Online-Data: ca. 5,000 variables / s • Increase of turbine efficiency Real-time Data Analysis (1,000 Neural Models) • Guiding turbine Modules development process Database: Input data and model results Complete Data and Dependency Analysis plus Learning Optimization Page 13 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 14. Forecasting Wind Power Supply with Neural Networks Benefits Accurate forecasts of the wind energy supply of an entire wind field enable e.g. • The usage of wind power as an instantaneously available energy source, • The disposition of wind power quantities on the spot market • An optimal scheduling of wind turbine maintenance jobs • Efficient power grid management Wind Park Structure Page 14 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 15. Concept for Short Term Solar Power Forecast Benefits • Forecast the solar energy supply of a selected control area up to 15 min • Improve power grid management and balancing of energy mix Solar energy components Forecast Sensing Area Cloud Movement Control Area Cloud Coverage Page 15 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 16. With Power/Plant Monitoring we can detect failures and fatigue in advance Benefits • Detect failures and fatigue in advance • Alert service operators upfront before damage occurs • Mitigate the risk of long term service contracts • Increase the efficiency of remote monitoring Condition monitoring platform that predicts failures by operations • learning from historical data and trends • incorporating it with user defined rules and knowledge Page 16 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 17. Advanced Decision Support for Physicians: Semantic Information links Text and Images When marking text in reports, associated diagnosis are highlighted in lists and images Page 17 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 18. Topics of the presentation 1 Siemens as a leading software provider 2 Siemens perspective on Big Data 3 Examples from offerings and research 4 What can we expect from big Data in industrial applications? Page 18 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 19. Analytics based on Big Data can have strong impacts on industry Big Data implications Possible impacts in industry • Optimization of complex system • Optimization of industrial processes behavior across the value chain, including semi-autonomous, self organized • Real time decisions in operational continuous change processes • Reduction in operational risks for • Improvement of sustainability of industrial processes customers • Reduction in capital expenditures • Automation of decision making on the level of complex systems Individual reference cases already implemented – broader scale implementation started Page 19 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.
  • 20. What is required to make this all happen? Continue research on vertical algorithms Implementation of further big data reference cases Capturing the full promise Understanding of big data implications of big data (privacy concerns, risks, etc.) analytics in the industrial context Improvement of analytics skill base in Europe Continued research programs on big data in Europe (basic technologies, standard algorithms, data security and privacy, etc.) Page 20 2013-04-10 Siemens AG © Siemens AG 2013 All rights reserved.