Partner of Choice for Perfection in Automation - Peter Terwiesch, ABB - ARC Orlando 2018 Forum

Good morning ladies and gentlemen. Let me talk about digital transformation at ABB. And I noticed I haven't got a remote control yet, so in digital it's obviously important that you close those loops. From the field you have the right sensors, bring the information into the digital space, but then also once you've taken all your right decisions, basically you have the actuation back to the process. So if I could either have the remote control or run this in a way that I give order commands that slides will actually change. Let me talk about digital transformation at ABB, and for me that is really about, thank you, anyway, for me this is really about shaping the energy revolution and shaping the Fourth Industrial Revolution that Jason and Kenny have just been talking about. And it's very much the question of how do we enable our customers' transformation to move your operations to the digital age, but it's also, as a part of that, how do we transform our own company, really in terms of reinventing what you see here on this slide. So you know us for many years in process automation. What process automation is changing, as we just heard from Kenny, and in addition we've been organically with a quiet being our leader in the field of machine and factory automation. So actually also we're convinced the electrical, the process automation, the machine and factory automation, it's all going to come closer together through digitalization. And this is why in 2016 we've launched ABB Ability as a unified cross-industry platform that connects a lot of information, but more importantly it connects us a lot closer to our customers through the different stages of the lifecycle of a customer's investment. And, of course, digitalization and I see some faces that I've seen here at ARC for many years. It's not new. I mean digital technologies, many of us have been in this for 40 years. We've remote-enabled software-assisted solutions, and gradually I think we've built a cyber-physical stack. But really digitalization as we talk about it today really enhances the collaboration with our customers much more closely at all these stages: the plan, the build, and the operate and optimize stages. It also eases partnerships, which I think is very important. You see the number of companies here has actually grown. If you go to the exhibit hall, there's some of the large players you've always been familiar with, but there's an increasing number of smaller players also. There's partnerships, there's companies coming together. So actually the effort of interfacing has also been reduced. If I just give a high-level teaser on ABB Ability, I would distinguish between the project phase, where it's about really managing cost, schedule, and risk, and where we speak of what we call intelligent projects, and the operations phase, where what we do there as part of ABB Ability we call that collaborative operations, which is really about increasing productivity, energy efficiency, and safety over the lifecycle of an asset. If that's a little abstract, here's a map of what we've put in place and how collaborative operations very often works with our customers. I've got 15 dots on this map already, so we've got 15 of these collaborative operation centers worldwide. Currently two of them here in the States also, and these centers are very much about connecting not only the systems with the systems, but it's connecting the people with the people, the people with the systems, and very often in a triangular constellation like you see it here. So the shift, the crew on a vessel rigged in a plant in the middle of a mine is connected, and their systems are connected to a customer's collaborative operation center, and at the same time connected to ABB's collaborative operation center. And in this way we basically support the crew with constant expert engagement while also on-demand expert engagement with a whole range of services. If you look at these services, this is all started and started quite a few years ago around condition-based maintenance, and then it became increasingly predictive, preventive. You added optimization type of services. Added, as we've heard yesterday, there's a great need also to make sure when we rely increasingly on digital information, it's cyber security services. So there's a whole portfolio of digital services that we've built. Today we're basically operating out of these 15 centers already more than 200 customer solutions for ABB Ability collaborative operations. And just to add some color to this, let me show you a few, and let me emphasize that what we do in this space, 70-80% is actually the same across industries. It's very consistent, and that's why we can actually pool and bundle some of the competence in centers supporting multiple industries at the same time. There's also some very specific varieties based on different end-user requirements. If I take on the very left-hand side for instance offshore oil and gas rig, collaborative operations there typically means that there's a dedicated onshore center often to that specific offshore installation. The customer's got a dedicated place for that, we have a dedicated center for that, sometimes even at our facilities. You then need a badge of one of the IOCs or NOCs that we're supporting remotely. In collaborative operations you need an access badge even within our own building from a customer supporting that specific asset, which is quite different from if you look at the marine industry. We have more than 700 vessels under contract already. We're basically three centers around the world, 24/7 support these vessels with anything from condition monitoring services where you look: is the propeller in good shape? Is there a reason why that particular drive is tripping more frequently than it trips on other vessels of this class? Those kinds of things, all the way up to advanced services like how do I, in the most energy-efficient, time-efficient way, and bearing in mind weather conditions in terms of wave height and safety and integrity of your vessel, your crew, your cargo, go from one place to another. So it's an entire stack of services that's behind that. It's a joint platform across all industries, and then we build according to the needs of industry verticals as well as then specific customers a solution portfolio. Was that enough of a teaser? I want to make sure we have enough time for questions also. I think in this exciting time of transformation, I really want to conclude on saying let's write that future together. So great to be here. Thank you.