WINNING IN THE

21ST CENTURY:

TRANSFORMING
INTO A DIGITAL
ENTERPRISE
 What is digital
business
does it matter?
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
People who Change After Change will Survive,

People who Change With Change will Succeed,

And

People who cause The Change will Lead.

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

 The Third Wave of IT Driven
Competition
1800s 1960s 1980s 2000s Beyond

Mechanical Products Value Chain Value Chain Dispersion and Smart, Connected
& Physical Processes Automation Integration Products

Products are IT used to automate The Internet enables IT is embedded in

mechanical and value information collection coordination and products themselves,
chain activities are and processing in integration across the transforming value
performed manually activities across the value-chain, with creation through
using analog value chain customers and products while
information through business partners, and triggering a new wave
paper processes and across geography of shifts in the value
verbal chain, product design,
communications procurement,
marketing, and
service while creating
the need for new
activities
 Digitalization
Unprecedented
combinations of new
technologies generating
revenue and value

2014 Gartner, Inc. and/or its affiliates. All rights reserved. 3

What Is Digital Business?

Digital business
is the creation of
new business
designs reached
by blurring the
digital and
physical worlds.

CONFIDENTIAL AND PROPRIETARY

2014 Gartner, Inc. and/or its affiliates. All rights reserved.
 Internet of Things (IoT) a Part of Digital Business

Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities.
It encompasses the entire range of new technologies such as Internet of Things,
Industry 4.0, Cloud Computing and Big Data.
Smart, Connected Product Components
Product Cloud
Database, Application Platform,
Rules / Analytics Engine, Smart Product Applications

Connectivity
One to One, One to Many, Many to Many

01101010111000110010000110 Enhanced UI
00010100001010000011100011 Ability to Interact
Smart, 01010111000110010000110000
10100001010000011100110110
Software
Connected 01001100101100110100110010
Ability to Instruct
10001101010000111101101010
Product 11100011001000011000010100
00101000001110001101010111 Sensors
00011001000011000010100001 Ability to Sense
Smart Product
Electronics and Controls
11100011001000011000010100
Ability to Process
00101000001110001101010111
00011001000011000010100001
01000001110011011001001100
10110011010011001010001101 Electrical
01000011110100110010110011
Physical Product
01001100101000110101000011
11011010101110001100100001 Mechanical
10000101000010100000111000
Smart, Connected Product Technology Stack
PRODUCT CLOUD
Software Applications running on remote
Smart Product servers that manage the monitoring, control,
Applications optimization, and autonomous operation of
product functions
The rules, business logic, and big data
Rules/Analytics analytical capabilities that populate
Engine algorithms involved in product operation and
reveal new product insights
An application development and execution
Application environment enabling the rapid creation of
Platform smart, connected business applications using External
Identity & data access, visualization, and run-time tools Information Integration
Security Sources with
A big data database system that enables
Tools that Product Data A gateway for Business
aggregation, normalization, and management
manage user Database of real-time and historical product data information Systems
authentication from external Tools that
and system sources such integrate data
access, as well as weather, from smart,
COMMUNICATIONS
as secure the traffic, connected
product, commodity products with
Network The protocols that enable communications
connectivity, and energy core enterprise
and product Communication between the product and the cloud prices, social business
cloud layers media, and systems such as
geo-mapping ERP, CRM, and
PRODUCT that informs PLM
product
An embedded operating system, onboard capabilities
Product
software applications, an enhanced user
Software
interface, and product control components

Embedded sensors, processors, and a

Product connectivity port/antenna that supplement
Hardware traditional mechanical and electrical
components
 Smart, Connected Product Capabilities
Smart, connected products enable new categories of capabilities, with each building on the preceding one
4. Autonomy

3. Optimization

2. Control

1. Monitoring

Sensors and external Software embedded Monitoring and Combining

data sources monitor in the product or in control capabilities monitoring, control,
the product the product cloud enable algorithms and optimization
condition, controls product that optimize product allows autonomous
environment, and operation and performance and product operation,
operation, and personalizes the user perform diagnostic, service, and
alert/notify of experience service, and repair coordination with
changes other product
systems
Key enablers and inhibitors for the digital transformation of industry
The Four Things to Remember

Every industry
will be digitally
re-ma tered
re-mastered

Attack will
Technology will come from
redefine inside and
outsid
core products
oducts beneath
under

Control of
the platform
wins the game
 Every
industry will
be digitally
re-mastered
Over the coming decade NO industry will
escape profound digital disruption

to the very nature of what

it makes and serves.
DIGITAL Is Becoming a Business
Strategy Keyword
Our digital strategy We have nothing we
is our business recognize as
strategy digital strategy
2% 14%
49% have
a digital
strategy
"To what extent
Digital strategy is a
integrated part of o r does your
main business organization
strategy
32%
We have some have a digital
strategy in that area,
but not called out as
strategy today?"
digital
37%

We have a digital N = 391 CEOs and

strategy, separate to Senior Business
Executives Worldwide
our main
business strategy
16%
 "The ability to marry
real-time customer
data with real-time
performance data of
Jeffrey Immelt our products to me
CEO, GE that's the holy grail in
Talking about his
company's our business."
"industrial Internet"
initiative in 2012
We Mean "Re-mastering" of an Industry
in TWO Senses

1. Re-imagining and re-rendering its products and services

using TODAY's technology
2. Re-defining what mastery of an industry looks like and
which firms are the new masters
The Four Things to Remember

Every
indust
industry
be will
be di
digitallytered
re-ma
remastered

Technology
will redefine
core
products
 Book Groundsman Camera

Processing Learning

music

Digitisation is not all good

Why Now?
2009 2020
Total devices: 2.5 Billion Total devices: 37.3 Billion

Internet of Personal
Things
Devices
Personal
Devices

Internet of
Things
2. Shrinking Manufacturing Footprints Are Driving
The Factory of the Future

Traditional factory layouts are changing and forcing new

tradeoffs between labor, automation, greenfield, and
brownfield.
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
 3. Technology Innovation
Is Faster Than Ever
Its not the things, its the
information and what YOU do with it

CONFIDENTIAL AND PROPRIETARY

2014 Gartner, Inc. and/or its affiliates. All rights reserved.
 Some major industry
disruptive forces
Mass customization

Cloud-connected services

Pay-as-you-go-consumption

App controlled, smart products

Data & analytics for customers

Configurability & upgradability

Immediate on-demand delivery

Provenance and traceability

Attackers Will Use Digital Forces to Enter by
Dissolving Traditional Industry Boundaries
Is this manufacturing, retailing, or design?

What is Amazon
retailer or tech. firm?

Who sets expectations

for consumers?

Whose brand has the

highest trust?

Who will determine the

future of payments and
money: MasterCard,
Google, Apple, PayPal,
Samsung, Verizon,
Walmart, Bitcoin?
Strategic Planning Assumption

By 2020, the strongest companies

will be those with most industry
digital platform control.

#GartnerSYM
2013 Gartner, Inc. and/or its affiliates. All rights reserved.
 Digital Innovation Radar

Customer
Complaints

Source: Capgemini

338th MCM Presentation by CS&IT (12/04/2016)

Confidential - For Internal use only
How
Digital
will
is Staying ahead
by anticipating

digital
changing
Working whats next
smarter
with smart

help
how you
machines
Delighting
customers
with richer

transform
business
Adapting
Innovating with the business experiences
crowdsourcing through
and data intelligent

your
gets
operations

business?
done Digital
"Every business
businesswill
is the
become
creation
a softwareof business,
new business
build
designs
applications,
by blurring
use advanced
the
digital
analytics
andand
physical
provideworlds.
Saas
services,
Source: Putting Digital Business to Work Convergence
Satya Nadella, in 2015. Gartner.
2015

30
Disruptive
digital innovation

100x faster than

physical disruption
The power of digital disruption is that it
can disrupt any aspect of any product or
service, including processes deep within
companies focused on physical things.
In fact, digital disruption's power multiplies
precisely because it can apply to
industries that are not even digital. In this
way, digital disruption happens to and
through digital things, which then
accelerate the disruption of physical
things.
James McQuivey.
 The development of
32
product-service systems

Manufacturers becoming
service providers and setting
out to improve the processes of
their customers through
business model innovation
rather than product-based
differentiation.
Interpreted from Baines and Lightfoot, Made to
Serve,
2013 John Wiley & Sons
33 Millennials
will become the
majority in the
workforce in 2015.
Hiring managers value their
technological adeptness and quick
adaptability. But it remains to be seen
whether traditional companies can
evolve quickly enough to attract and
hold onto young talent.
Fastcoexist.com
Risk management
complexity
Mobile, social, cloud and big data, each
a disruptive force, together change
everything related to protecting systems
and information.
By 2020, 60% of digital businesses will suffer
major service failures due to the inability
of the IT security team to manage digital
risk in new technology and use cases.
Digital Business Forever Changes How Risk and Security Deliver Value. Gartner 2014.
Innovation Insight: Digital Business Innovation Disrupts Risk and Security Management. Gartner

60%
2014.

of businesses will suffer

major service failure
 High
Virtual Virtual High

External
Internal

Impact
Effort

External
Internal

High Physical Physical High

338th MCM Presentation by CS&IT (12/04/2016) Confidential - For Internal use only

BHELs Digitalization Quadrant Operational Product Customer

 List of Digital Initiatives
Digital Units/Regions Roadmap Recd.
S.No Description
Leader Initiatives (Status as on Aug'16)

Dash Board (TO/cash collection / Corp MON/

1 Units/Regions Completed
Debtors/MOU Project) Corp FIN

Company level Mobile Apps at Single Units/Regions Developed

2 CDT
Platform Mobile Apps (To be launched)
Developed
Business
3 Order Book and Liquidation Corp MON (Units Liquidation is
Sector/Units/Regions
being updated)
Developed
4 SCMS- Planning Module PMG Regions/Sites Proj. Plg. Module

Dash Board for existing SAR/CAR

5 CQ Units/Regions By Oct'16
System
Dash Board for existing Customer
6 CQ Business Sector By Oct'16
Complaint Mgmt. System
By Dec'16
7 Enterprise Social Network (ESN) HR Corp
(Discussed in CoFD)
 List of Digital Initiatives
Units/Regions Roadmap Recd.
S.No Description Digital Leader
Initiatives (Status as on 12th May'16)

Developed
Enterprise Level File Sharing
8 CDT/Bhopal Units/Regions (Mobile enabled module to
be launched)

-3 Applns by June Compl.

Employee Centric Services of
9 HR Units/Regions - 2 Applns by Sept'16
SAP-HR
- 1 Appln by Dec'16

10 Vehicle Tracking System Corp R&D Units/Regions By Dec'16

Digitalization of Central Store-
11 Corp R&D Unit By Dec'16
RFID

12 Online RCA System CQ Units/Regions By Oct'16

13 KBE Portal ARP Units By Mar'17
14 3D Modelling/Analysis ARP Units By Oct'17
Sl. Unit IIOT Projects taken PDC
No.
1 TRICHY 1. Remote monitoring of plant wide solar power Jan-17
systems (roof top and outdoor)
2. Real time open arc weld monitoring and Feb-17
process management using advanced sensor
camera
3. RFID based storage, retrieval and logistics Mar-17
management

2 EDN 1. Power Failure Indicator for Data Center Jul16

2. MobileRPDM with real-time dynamic update Decl16

3 Ranipet 1. Monitoring of solar PV power

2. Monitoring of data centre

4 Hyderabad 1. Industrial IoT implementation for energy Feb-17

Management-POC for 2 CNC machines at the Shop
flr
2. Industrial IoT implementation at Admin/restricted Jan-17
area
5 Bhopal 1. 11Kv substation : Up-gradation of numerical May-17
relays ,SCADA & online metering and Control of
breakers . Joint project of ELX and SCR with
necessary network and application support from
ITS. Mar-17
2. Open Yard Management for Finished/Semi-
Finished Goods inventory through RFID

6 Jhansi 1. Online monitoring of Process Plant Centre

2.

7 Haridwar 1. Energy Management System of HEEP. Feb-17

2. Remote diagnostics, monitoring and data feeding Dec-16
of CNC m/cs

8 Haridwar 1. Remote Monitoring of Furnaces in Medium Forge Mar-17

(CFFP) Shop
2. Remote Monitoring of Energy Consumption Mar-17