Industrial IoT and connected objects for factories are part of our research at FABERNOVEL OBJET, our activity dedicated to IoT. The future of industry is at the crossroads of internet and factories. Some call it INDUSTRY 4.0 or FACTORY 4.0 in reference to the upcoming fourth industrial revolution. Governments and private companies in Germany, UK and the USA have acknowledged the importance of industrial IoT and its central role in future industrial transformation. The adoption of Industrial Internet has both near-term and long-term impacts and will be characterized by the emergence of new models such as the “Outcome Economy” and the “Autonomous, Pull Economy”. We believe that INDUSTRY 4.0 is a growth opportunity for industrial companies, and have decrypted this very phenomenon in the following presentation.

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INDUSTRY 4.0
MERGING INTERNET AND FACTORIES

2. //2
A STORY OF
INDUSTRIAL
REVOLUTIONS

3. //3
3 MAJOR INDUSTRIAL REVOLUTIONS
1800
Hydropower and fossil
1890-1910
Electric energy
Mass Production
1960-1970
Telecommunications
Programmable Logic
I II III
# Steam machine (1803) #Electricity (1891) # Programmable Logic (1969)

4. //4
THE 4TH
INDUSTRIAL
REVOLUTION?

5. //5
INDUSTRY 4.0
WHAT IS IT?
The concept of “Industry 4.0” comes from Germany. It defines a new way of organizing factories,
also called smart factories, aiming to better serve costumers through greater flexibility of
production and resource optimization.
KEY PRINCIPLES OF THE FACTORY 4.0
THE FACTORY BECOMES
DIGITAL AND FLEXIBLE
It is characterized by continuous
and instantaneous communication
between the various workstations
and tools, integrated into the
supply and production lines.
SIMULATION TOOLS AND
POWERFULL DATA
PROCESSING
The collection and analysis of data
produced throughout the assembly
line can be used for modeling and
testing. This is of great value for
w o r k e r s w h o w i s h t o g e t
familiarized with industrial tools
and processes.
AN EFFICIENT FACTORY
REGARDING ENERGY AND
RESOURCES
Industry 4.0 is energy efficient by
using communication networks to
exchange information instantly and
continuously to coordinate needs
and availability.

6. //6
INDUSTRY 4.0
THE LEVERS USED FOR ITS PROLIFERATION
CONNECTED SENSORS PREDICTIVE ANALYSISBIG DATA

7. //7
INDUSTRY 4.0
KEY FIGURES
By 2020, more than 1 BILLION CONNECTED OBJECTS
will equip factories (237M today). This represents an ANNUAL
GROWTH OF MORE THAN 55%
IN THE USA, INDUSTRIAL IOT COULD
IMPROVE PRODUCTIVITY BY 40% UNTIL 2035
Sources : BI Intelligence 2015, GE 2014

8. //8
INDUSTRY 4.0
WHAT ARE THE BENEFITS?
FACTORIES OF THE FUTURE COMBINE MASS PRODUCTION EFFICIENCY WITH CUSTOM
MANUFACTURING (ON DEMAND) AND OPTIMIZE THE SUPPLY CHAIN IN REAL TIME
Sources : World Economic Forum 2015
1
Operational
efficiency
• Asset utilization
• Operational cost
reduction
• Worker productivity
New products and
services
• Pay-per-use
• Software-based services
• Data monetization
Outcome economy
• Pay-per-outcome
• New connected
ecosystems
• Platform-enabled
marketplace
Autonomous, pull
economy
• Continuous demand-
sensing
• End-to-end automation
• Resource optimization &
waste reduction
short term long term
2 3 4

9. //9
EXAMPLE :
FACTORY 4.0
BY SIEMENS

10. “
// 10
When you look at Industry 4.0, it’s based on a logic of
cyber-physical systems (i.e. connected systems). That
is to say you’ve got autocratic, independently
operating systems, which self-optimize,
communicate with each other and, ultimately,
optimize production as a whole
ECKARD EBERLE
CEO Process Automation @Siemens
FACTORY 4.0 BY SIEMENS

11. “
// 11
FACTORY 4.0 BY SIEMENS

12. “
// 12
FACTORY 4.0 BY SIEMENS
LIQUID PACKAGING PLANT (SIEMENS LABS)
1. A bottle with an RFID tag
comes on the packaging line
2. The filling machine reads
the RFID tag and detects
which liquid (among many)
corresponds to the bottle
3. Similarly for the type of
spout and screw.
4. And for the label to stick
on the bottle
A PRODUCTION LINE WHICH IS CONNECTED, MODULAR SMART AND SELF-ADAPTABLE
YET DOES NOT HAVE MUCH MORE EMBEDDED TECHNOLOGY COMPARED TO A
STANDARD PRODUCTION LINE

13. //13
SOME
CASE STUDIES

14. //14
Nouveaux produits
et services
• Business model du
product-as-a-service ou
pay-per-use
• Création de nouveaux
services basés sur du
software (analyse de
données, algorithmes)
• Valorisation /
monétisation des datas
Economie de la
performance
• Business model du Pay-
per-outcome
• Création de nouveaux
écosystèmes connectés
(partenaires industriels)
Economie autonome
et dynamique
• Analyse et modélisation
de la demande en
continu et alignement en
conséquence de la
chaine de production
grâce à une
automatisation complète
long-terme
2 3 4
Sources : World Economic Forum 2015
INDUSTRY 4.0
WHAT ARE THE BENEFITS?
1
Operational
efficiency
• Asset utilization
• Operational cost
reduction
• Worker productivity
short term

15. //15
OPERATIONAL EFFICIENCY
WATER MANAGEMENT
Thames Water
The largest water services provider and
wastewater treatment in the UK, uses MEMS
sensors in all its facilities, and analyses in real
time all collected data.
RESULTS
This allows to anticipate equipment failures
and respond more quickly to critical situations,
such as leaks or critical weather events.
In 2 years, Thames Water was able to see a
TOTEX (CAPEX + OPEX) decrease of 15 to 20%.

16. //16
OPERATIONAL EFFICIENCY
PREDICTIVE MAINTENANCE
ThyssenKrupp
The company operates more than 1.1 million
elevators worldwide. In 2013, a partnership
was launched with Microsoft (Azure IoT
service) in order to remotely obtain and store
several measurements and settings for their
lifts (engine temperature, shaft alignment,
speed, door functionality, etc.).
RESULTS
All these parameters analyzed in real time
using algorithms help anticipate, operations
related to maintenance and to minimize
breakdowns.

17. //17
Airbus introduced in 2014 on its Puerto Real
plant the first cobot operating on an assembly
line for the A380. A gradual implementation of
cobots allows workers to focus on higher
value-added tasks that require dexterity and
inventiveness.
RESULTS
An efficiency leap in aircraft assembly with:
• 50% decrease in production cost and
• 85% decrease of the worker’s downtime
when working with robots.
OPERATIONAL EFFICIENCY
THE COBOTS (COWORKING ROBOTS)

18. //18
OPERATIONAL EFFICIENCY
PREDICTIVE MAINTENANCE
Apache is a company that operates oil and
gas fields in several countries.
Apache uses sensors to collect data that will:
• predict failures
• minimize production losses
RESULTS
• An increase in efficiency of 1% for
Apache pumps (this would generate an
additional production of half a million
barrels / day for the entire oil industry )

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1
Efficacité
opérationnelle
• Optimiser l’utilisation des
ressources (matière,
machines, humain)
• Diminuer les coûts
d’exploitation
• Améliorer le productivité
des employés
Economie de la
performance
• Business model du Pay-
per-outcome
• Création de nouveaux
écosystèmes connectés
(partenaires industriels)
Economie autonome
et dynamique
• Analyse et modélisation
de la demande en
continu et alignement en
conséquence de la
chaine de production
grâce à une
automatisation complète
court-terme long-terme
3 4
Sources : World Economic Forum 2015
INDUSTRY 4.0
WHAT ARE THE BENEFITS?
New products and
services
• Pay-per-use
• Software-based services
• Data monetization
2

20. //20
NEW PRODUCTS AND SERVICES
AUGMENTED MAINTENANCE
In October 2013, Volkswagen developed an
application for tablets and smartphones
named MARTA (Mobile Augmented Reality
Technical Assistance).
Thanks to data collected by onboard
electronics, the application allows:
• Instant identification of a problem via a
mixture of real images and virtual
information
• Help repair with technical explanations
and video simulations for each step
RESULTS
It becomes impossible for a technician not to
know where the problem relies. MARTA
simplifies vehicle maintenance by analyzing
information provided by onboard electronics.

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1
Efficacité
opérationnelle
• Optimiser l’utilisation des
ressources (matière,
machines, humain)
• Diminuer les coûts
d’exploitation
• Améliorer le productivité
des employés
Nouveaux produits
et services
• Business model du
product-as-a-service ou
pay-per-use
• Création de nouveaux
services basés sur du
software (analyse de
données, algorithmes)
• Valorisation /
monétisation des datas
Economie autonome
et dynamique
• Analyse et modélisation
de la demande en
continu et alignement en
conséquence de la
chaine de production
grâce à une
automatisation complète
court-terme long-terme
2 4
Sources : World Economic Forum 2015
INDUSTRY 4.0
WHAT BENEFITS?
Outcome economy
• Pay-per-outcome
• New connected
ecosystems
• Platform-enabled
marketplace
3

22. //22
OUTCOME ECONOMY
MAXIMIZE THE PRODUCTION OF
RENEWABLE ENERGY
General Electric launched its Wind Power Up
platform. By placing sensors on wind turbines
(existing or new) and with accurate weather
data, GE is now able to optimize in real time
the use of turbines, power generation and
maintenance through analysis of collected
data.
With E.ON (Climate and Renewables in North
America), GE is compensated by taking a
percentage of the incremental income due to
improved power generation.
RESULTS
• A 5 to 20% growth of renewable energy
produced by E.ON wind farms.

23. //23
OUTCOME ECONOMY
HOW TO SELL FLIGHT TIME
Rolls-Royce provides a range of services
dedicated to predictive maintenance for its jet
engines with a set of remote analysis tools
based on sensors.
This increases engine reliability and limits
unexpected time spent on the ground for
airline companies (i.e. maximizes flight time
and generates more specific estimates and
predictions).
With the TotalCare program, Rolls-Royce is
able to reimburse airline companies for losses
due to unexpected outages.
RESULTS
92% of Trent engines (latest generation) have
a TotalCare maintenance program.

24. //24
OUTCOME ECONOMY
BENEFITS FROM HIGH
PERFORMANCE TIRES
With EFFIFUEL, MICHELIN solutions promises
to lower fuel consumption for carriers.
By analyzing transportation data and
information of a truck fleet’s load, Michelin is
able to predict fuel economy targets (with the
use of new tires and an eco-driving training).
If targets are not met, Michelin commits to
offer a refund in proportion to the expenses
incurred.
RESULTS
• 1,5 l/100km saved with an even
higher potential gain

25. //25
1
Efficacité
opérationnelle
• Optimiser l’utilisation des
ressources (matière,
machines, humain)
• Diminuer les coûts
d’exploitation
• Améliorer le productivité
des employés
Nouveaux produits
et services
• Business model du
product-as-a-service ou
pay-per-use
• Création de nouveaux
services basés sur du
software (analyse de
données, algoritmes)
• Valorisation /
monétisation des datas
Economie de la
performance
• Business model du Pay-
per-outcome
• Création de nouveaux
écosystèmes connectés
(partenaires industriels)
court-terme
2 3
Sources : World Economic Forum 2015
INDUSTRY 4.0
WHAT ARE THE BENEFITS?
Autonomous, pull
economy
• Continuous demand-
sensing
• End-to-end automation
• Resource optimization &
waste reduction
long term
4

26. //26
AUTONOMOUS, PULL ECONOMY
DIGITALIZATION OF FACTORIES
AREVA launched the Comurhex 2 project,
which aims to create an uranium conversion
site, used before the enrichment steps.
A 3D modeling of the building facilitated the
construction by:
• Optimization of space management
• Detection of possible conflicts between
different types of equipment
• Better visualization of technical systems
compared to a 2D plan
• Better on site management of human
resources
RESULTS
• Process optimization for the project and
the company
• Time and money saved

27. //27
AUTONOMOUS, PULL ECONOMY
FACTORY MANAGEMENT
General Electric, develops the Predix cloud
platform, a Cloud-as-a-Service platform aimed
at industries where issues of security and
compliance are very important.
Application development on this platform
started with GE and will eventually open
following an on-demand pricing model.
The development of analytics services will
enable GE to provide reporting applications,
maintenance and technology optimization
services to its customers.
RESULTS
GE has the ambition to become one of the top
ten software players by 2020, a sector where it
already boasts a turnover of $ 6 billion.

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Contacts
Elodie Bongrain, director at Objet by FABERNOVEL
elodie.bongrain@fabernovel.com
Thomas Borie, Project Manager
thomas.borie@fabernovel.com

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