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The Brilliant Factory: Optimize, Predict, and Prevent David Sweenor | Global Product Marketing Manager | Advanced Analytics @DavidSweenor Embed Analytics Everywhere Optimize, Predict, and Prevent Likelihood to… Become scrap Design Machine Learning & Data Mining Machine learning crunches data to build a predictive model Predictive Model The predictive model acts on unseen” data Predictive Score Generated Sensor Data Blending Supplier Predictive Model Deployed Factory Trigger an alarm Become and outlier Exhibit abnormal behavior Breakdown or become defective Analytics Embedded into Business Be out of compliance Data Process improvement Dashboards Mobile Web The output is a score Direct Mail Campaign Results Data Assumptions • $2 to mail each prospect • Profit = Revenue - Cost Mail Cost $2 • 1 out of 100 will buy Mailing List • $220 profit for each response • =($220*10,000) – (1M * $2) Catalogue • =$200,000 1M prospects The Value of a Prediction Results Assumptions • Profit = Revenue - Cost Mail Cost $2 Analytical Model output: • 25% of the entire list are 3x more likely to respond Mailing List 250K prospects Adapted from Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie or Die by Eric Siegel • =($220*7,500) – (250K * $2) Catalogue • =$1,150,000 • 5.75x improvement by mailing fewer people Manufacturing Analytics Discover defects, improve yields, monitor suppliers, optimize processes and reduce costs • • • • • • • • • • • Manufacturing Optimization Predictive Failure Analysis Root Cause Analysis Process Optimization Statistical Process Control R&D Predictive Maintenance Design of Experiment Product Traceability Six Sigma Production Process The Internet of Things Impacts All of Us Why are Analytics essential to IoT? "Data is inherently dumb, it doesn't actually do anything unless you know how to use it and how to act on it, because algorithms are where the real value lies; algorithms define action,” Source: Gartner Symposium Nov 2015 in Barcelona, Peter Sondergaard, senior vice president and head of research at the analyst house http://www.v3.co.uk/v3-uk/news/2433966/algorithms-key-for-turning-dumb-data-into-real-business-benefits Creating Value with a Social French Fryer Business need • Differentiate a commoditized business and product to enhance margins and react to an offshore competitor seizing market share. Data required for analysis • Historical Equipment data - performance • Sensor data – temperature, maintenance • Real time social data - Sentiment data analysis • Geospatial data – Lat/Long position data Solution and results • Aligning social sentiment with equipment performance for higher quality • Differentiated value proposition • Higher margins • Predictive performance and service The impact of analytics on IoT Industrial Automation and Manufacturing Transport Logistics Healthcare Life Sciences Retail Process Improvements Opportunity for Innovation Demand From End Users Opportunity for Innovation 52% 50% 43% 40% 57% Opportunity for Innovation Opportunity for Innovation Need for Faster Decision Making Opportunity for Innovation Cost Savings via Automation 40% 48% 41% 38% 46% Process Improvements Cost Savings via Automation Need Competitive Advantage Cost Savings via Automation Process Improvements 38% 43% 33% 35% 42% Building Automation, Energy, Utilities Cost Savings via Automation . The ability to collect data will always outstrip the ability to transmit and store it Pushing Analytics to the Edge Big Data Streams from Connected Cars • Cars – connected car data, network, contextual • OEMs & Dealerships – vehicle diagnostics, incar service consumption • Insurance companies – aggregated/anonymized driving data, incident data • Fleet customers – fleet performance, compare against competition Big Data Streams from Connected Cars – con’t • Federal / State DoT – breakdown data, accident data, environmental data • Smart Cities – real-time traffic flow, incident alert, parking • Advertisers – customer/passenger demographics • Other B2B – content usage, frequency, length, etc. Are you moving data to and fro? There is a better way! Internet of Things – Edge Analytics Device/Sensor Analytics Edge Analytics Core Analytics Cloud Data Flow Cloud Gateway Data center Eliminate Unnecessary Data Movement Analytic Transport Statistica Date/Time Trans type Velocity Trigger Analytic Workflow Atom Export Models as: Java, PMML, C, C++, SQL Public or Private Cloud Oracle Hadoop Hive on Spark Teradata In-Database Analytics How does work get done in your organization? How many people keep reinventing the wheel? Image Source: IBM/Vermont Historical Society Image Source: Google Maps Distribute analytic output to LOB Network (Entity) Analytics Real-time streaming Airport Predictive Maintenance Dashboard Process Flow Visualization Democratizes Analytics to the Entire Organization Data scientists Engineers Operators Use the global community for analytic modules Build advanced analytic flows once; reuse and share Empowered with in-database processing Automated data preparation Wizards and templates with reusable configurations No knowledge of SQL or databases required Embed analytics in LOB apps Recipes & Quick Starts CI driven by shortage of expertise, thus a greater need for democratization and decentralization Promote and Distribute Best Practices Distribute & share analytics across the world Site 1 Site 2 Tulsa, OK Taiwan Take your math Analytics Platform to where the data lives Avoid duplicate infrastructure Site 3 Site 4 Sao Paolo, Brazil California Power utility plant optimizes coal-fired cyclones without infrastructure retrofits Regional USA energy company turns to predictive analytics in pursuit of cleaner air and regulatory compliance. Business challenge The company wanted to use complex streaming data and existing control technology to address competing goal functions and achieve significantly better operations without the need for expensive infrastructure projects. Solution Statistica monitors and analyzes complex power plant operations in real time and identifies specific settings for multiple parameters that will reliably produce desired performance of high-dimensional, continuous processes. Results • Significantly improved & stabilized low NOx operations for cyclone • • • Read the EPRI case study report > Published: June 2016 | Expires: June 2018 furnaces Optimized robust performance of 340 Mega Watt Cyclone with OFA ports Optimized simultaneously for competing goal functions: minimum emissions, maximum efficiency, and greatest reliability Fully documented by Electronic Power Research Institute (EPRI) Automotive tech manufacturer increases efficiency of warranty scoring and defense against claims “We quickly identified the right claims to investigate and saved $500K in warranty chargebacks.” Business challenge In the warranty of mechatronic systems and electric motors, manual claims classification required over 50% of engineers’ and analysts' time on data retrieval, alignment, and preparation. Also, the company was unable to identify quality issues early enough to pursue proactive process improvement. Solution “Defending against a warranty claim, we needed to analyze several years of data in a short period of time, impossible without Statistica. We quickly identified the right claims to investigate and saved $500K in warranty chargebacks.” National Warranty Manager Published: March 2015 | Expires: March 2017 Dell Statistica’s auto-classification solution uses text mining and conceptextraction; builds prediction models for each failure classification; builds a workflow with rules to classify narratives to highest-probability failure mode; and deploys for automatic scoring of new warranty narratives. Results • • • Enhanced accuracy due to automatic text classification Enables proactive and preventive measures instead of reactionary Provides competitive advantage and drives down warranty costs Solar tech producer drives quality with predictive analytics When your reputation is built on the highest standards of quality, performance and durability, Statistica shines. Business challenge Over 10,000 streaming, automated parameters required real-time monitoring and analysis to meet ever-higher demands of product quality—and to anticipate manufacturing issues—in this extremely competitive industry. Solution Statistica Enterprise integrated easily with the company’s existing MRP system and offered practical algorithmic capabilities in a scalable, web-enabled platform that maintains performance in the face of increasing complexity. Results • “This technology has enabled [us] to stay in business in the face of very strong headwinds and competitive pressures.” Director of IT Major solar tech producer Published: June 2016 | Expires: June 2018 • • Optimizes manufacturing efficiency by enabling hundreds of end-users and engineers to monitor and respond to mission-critical data Maintains company’s competitive edge through application of predictive process monitoring for potential quality issues Supports real-time processes 24/7 Lower manufacturing costs and higher quality through predictive analytics v. “tribal knowledge” “Statistica offers an empirical line of sight between what we do in assembly and its effect on finished product.” Business challenge Even with sophisticated data-collection, our customer sought to improve quality and reduce product failures by replacing "tribal knowledge" with additional empirical data analysis that would more accurately relate equipment parameters to product performance. Solution Using Data Miner to identify correlation of complex parameters to product quality outcomes, we built models that enabled engineers to test “what-if” scenarios and optimize multiple, competing outcomes (e.g., power v. fuel efficiency). Results • • • • Streamlined multiple processes, e.g., reduced trim balance problems 45% Replaced metrology equipment costs and reduced product cycle time Reduced time & personnel costs needed for product adjustments Increased throughput with reduced scrap and rework Read the Quality Digest article > Published: August 2016 | Expires: August 2018 By 2018 more than half of large organizations around the globe will compete using Advanced Analytics and proprietary algorithms, causing disruption on a grand scale. Source: Gartner, Inc., Magic Quadrant for Advanced Analytics Platforms, Lisa Kart, Gareth Herschel, Alexander Linden, Jim Hare, 9 February 2016. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Analytics of Things • Reduce scrap and waste at the Edge • Root cause at the edge – power, torque, pressure with constraints vibration and temperature with one metric in near real time • Multivariate alarms with tens of thousands of parameters – send state changes back • Edge filtering of outliers, alarms, and relevant history • Pattern recognition on critical machinery – e.g. wind turbines and sound signatures • Quality control thorugh edge based analytics Key Takeaways The Industrial IoT will transform and disrupt entire industries while creating opportunities for new business models The ability to collect data will always outstrip our ability to transmit and store it pushing analytics to the edge Statistica addresses some of the broadest set of analytic use cases including IoT Edge Analytics. . Embed Analytics Everywhere Questions? John K Thompson | GM of Advanced Analytics | @johnkthompson60 Questions? dell.com/statistica David Sweenor | Global Product Marketing Manager | Advanced Analytics @DavidSweenor dell.com/statistica