Why does the industrial Internet break out? Seems it has a little relationship with China

Why Industrial Internet? 

Why does the Industrial Internet break out? Seems it has a little relationship with China.

The real cause of the industrial Internet outbreak is the manufacturing industry encountered a stumbling block.

The "manufacturing costs rise". In 2016, the hottest news in manufacturing is "Do not let Cao Dewang run!", "corporate profits are too low", this is because of the product with the low-end and lack of value-added services. Manufacturing companies want to reduce costs through the integration with Internet, while industrial equipment manufacturers need to increase profits through service-oriented manufacturing, supply and demand between the two driving forces together, contributed to the "industrial Internet" develop rapidly.

In the era of economic growth slowdown, open source is not as good as throttle, the factory cost mainly occurs on people, machines, and raw materials. The Costs of materials depend on management, such as supply chain management and Toyota zero inventory management; the costs of human rely on technology, such as robot replacement and artificial intelligence replacement; the costs of machine rely on the Internet connection, such as predictive maintenance and sharing of the economy. The cost used in "machine" is 15% of the total cost of production and operation, that is 10 trillion for the whole country, but it has not been taken seriously before.

The above-mentioned consumption of 10 trillion spare parts, labor, energy, depreciation and other factories to manage their own inefficient business, can be "Internet + industrial services" in the form of break and reconstruction, and the formation of trillion level of industrial service market.

For example, in order to prevent equipment failure, the factory to buy a lot of maintenance spare parts, many factories more than 33% of the inventory are more than 2 years of stagnant goods. --- This is our current status quo "Preventive Maintenance" (Device Management 2.0).

With the Internet of things, cloud computing, industrial data technology is mature, through technical means to analyze and predict equipment failure possible, for example, we can predict a month in advance of a device will be a failure, then we only need one month in advance to buy spare parts This is the "predictive maintenance" (Device Management 3.0).

On the other hand, with the development of the Internet, sharing the economy has also become a trend, such as factories do not know when the equipment will fail, if you can share the same time through other parts of the company's other spare parts inventory, then the factory spare parts inventory can be reduced 60% or more, --- this is "interconnection maintenance" (device management 4.0).

Equipment manufacturers to enter the industrial service along the predictive maintenance of the entrance, the Internet companies along the shared economic entrance into the industrial services, these two models will make the factory equipment and plant external equipment data connection and sharing, and ultimately will reach the same purpose To: industrial internet.

Consumer Internet Three Entries (Search, Electricity, and Social) Achieve BAT, and so on: Industrial Service's two import predictive maintenance platforms and MRO service community platforms also generate industrial Internet BAT.

Industrial Internet, you can from the "Internet +" and "+ Internet" two aspects of understanding, such as: Wal-Mart to the supermarket stuff into the Internet to order, the Internet is only a supplementary tool, called "+ Internet"; Alibaba build A platform that allows everyone to sell things on the platform, the Internet is a new business model, called "Internet +", only the latter is known as the Internet company.

(1) Industrial + Internet: Basically, in the existing product design, manufacture, sale, operation, maintenance business in the introduction of data, Internet, software analysis, as much as possible to optimize the process, resulting in new economic benefits, many Chinese claim to industry Most of the Internet projects belong to this category.

(2) Internet + industry: there are some "industrial + Internet" project, to a certain stage, no longer only sell their own services and products, but to provide platform services, such as helping other companies to copy their own business capabilities, there May be transformed into "Internet + industry". For example, GE has accumulated a number of industry predictive maintenance analysis capabilities, to open their own predix platform to help other companies also have this ability to become the "Internet + industrial services" platform.

Machine is the core of the industry, GE's "Internet + industrial services" model has become a global leader in industrial Internet, so this article focus on this model to start analysis and discussion. Pie Jun Jun summed up the four levels of industrial Internet, then describe how the industrial Internet from an "industrial maintenance under the eggs", through the amount of change, qualitative change, nuclear change, and ultimately developed into a monster devouring industry.

First level: predictive maintenance applications

Industrial Internet is a concept, but also a product, one of its prototype is the key parts of the equipment installed several sensors, and then equipment manufacturers through the Internet of things and software at any time access, operation, analysis and calculation.

The main role of this thing is to improve the efficiency of equipment maintenance, reduce accidents. Predix's prototype is almost just a software brand used by GE to serve the equipment sold by the company, and its signature use is for predictive maintenance of aircraft engines to avoid accidental downtime.

At this level, predictive maintenance of the prototype products also began to evolve, gradually with the industrial Internet three basic functions: (1) to improve maintenance and maintenance efficiency (2) to improve energy efficiency (3) to optimize the operation.

At the first level of the company a lot, China's well-known equipment manufacturing enterprises are also along the way GE has gone through to the industrial Internet to enter, such as Sany Heavy Industry, Xugong, Zoomlion and so on.

The second level: industrial services networking platform

The second level is the amount of change, through the capital and industrial resources to copy and expand. In 2013, GE extended its successful experience in the field of aircraft engines to other GE's operations. 2014 will be a variety of equipment management program into more than 40 kinds of predictive analysis solutions. With so many applications running, this project has evolved into an industrial service networking platform.

This stage, in order to get more cross-industry customers, is not easy, even GE such a company, mainly by the capital operation. GE carried out several billions of dollars in capital for the layout of the industrial Internet in order to complete the initial accumulation of industrial Internet.

At this stage, the platform needs to develop more software quickly. The core function of industrial Internet is "connection, monitoring, analysis, prediction, optimization", for different industries to establish an analytical model is essential, the more models, the greater the value of the platform. This platform platform for software development is a huge challenge for industrial companies to transform into a software company. GE CEO Immelt said: "This is a huge change," GE's goal is to become the world's top ten software companies in 2020.

At present, only similar to Siemens industrial giants, GE itself has similar industrial resources, but also a software company, have the ability to successfully upgrade from the second level. For the domestic equipment manufacturing company, the breakthrough "market cross-sector expansion and software-based enterprise transformation," the threshold need to pay a very big effort.

The third level: industrial application operating system

The first two levels are basically also belong to the "industrial services + Internet", the third level is qualitative change, is to "Internet + industrial services" evolution, is the industrial networking platform to industrial Internet ecological qualitative change.

The world's equipment types, brands, customers need is a machine-oriented medicine for the right machine of the machine software. GE has upgraded "Predix" to "operating systems for cloud-based industrial device applications", enabling external software developers to write programs that run on Predix, for example, which may be used to monitor oilfield drilling and wind turbine Equipment health and operation, improve performance, reduce wear and adapt to changing environments.

What is the Predix platform? It is a bit like Industrial Andrews, helping developers eliminate the complexity involved in writing programs so that people can create more programs.

After the opening of Predix is ​​a milestone, if run properly, on the Predix platform, hundreds of thousands of engineers to develop millions of equipment operation and maintenance software, connecting tens of millions of equipment, equipment brought huge industrial data, forming a huge Industrial Internet Ecosphere.

At present, GE only 1616 years to upgrade to the "industrial Internet ecology" level, GE Predix open to the outside world, the momentum is very good, and achieved good results, engage in Siemens panic, and quickly adjust the strategy, but also engage in a similar product MindSphere.

The fourth level: industrial data platform

The fourth level is the industrial large data platform, the aggregation of large industrial data generated "nuclear fusion", a large number of atoms (data), under certain conditions (industrial software algorithm), the collision (connection), the release of a lot of energy , Open the industrial box, the existing Internet and industrial ecology will be deconstructed and rebuilt.

Experts predict: industrial Internet will be through cheap sensors, powerful computing and intelligent software as the representative of the digital technology invasion of the industrial sector. GE's China executives said: "Predix cloud ambition is to become the industry's Amazon and Google," the invasion of industry with GE's ambition to become possible.

Industry Amazon: Amazon by virtue of the huge power of the advantages of data resources to become the boss of cloud computing, industrial Internet data resources will be more huge, all future cloud computing companies may also add to the enemy but the predix cloud cloud.

Industrial Google: Google already has a car manufacturing license, and GE as the industry equipment business, the future with the Predix platform to collect large machine industry data, to produce high-end machine tools, construction machinery, is not surprising. And this is precisely the Sino-Japanese and other manufacturing powers worried about.

GE years from an industrial equipment company, through the continuous strengthening of industrial software development capabilities and industrial Internet platform, is evolving into a super giant.

What is the advantage of China?

Industrial Internet is the result of GE and other industrial giants layout years ago, China is also the lack of GE level of industrial giants, so in full accordance with GE, Siemens and other companies is difficult to achieve catch up with the path, must be combined with their own advantages to develop industrial Internet

Advantages of China:

(1) Market advantage: China's industrial output value accounted for 25% of the world, is the largest industrial Internet market, which is the lack of industrial giants in China and the layout of the late circumstances, to have the opportunity to achieve " Super capital.

Industrial Internet battlefield at the core of one: industrial data for the war! China is home to combat, has a huge advantage.

(2) Internet advantages: In the field of life services, we have a classic example of defeating the US Internet giants: drop through the power of venture capital, in the short term to get through the national market, grow into a tens of billions of dollars valuation of the giant, And then drove Uber out of China. In the field of industrial services, we are likely to copy the story to the industrial Internet.

Drop mode: capital to build the giant

The country is strongly advocating "the integration of the Internet and manufacturing industry", but the manufacturing industry is hard (asset + product), the Internet is soft (team + software), these two are very difficult to integrate directly, the more feasible way is, Service is soft and hard, the Internet first with the integration of industrial services, through the industrial service industry and other aspects of the manufacturing sector to connect and integration.

With the support of the government to vigorously develop the industrial service community O2O business, the factory "industrial service resources" through the Internet to connect, the late venture capital involved, first spare parts sharing, and then the maintenance of business interconnection, and finally the formation of "equipment interconnection" End to the development of high-end industrial Internet, which is the path of China, the following figure is the industrial service industry development framework.

The industrial service industry has the characteristics of typical O2O service, which is very suitable for the Internet company. At the same time, the sharing of spare parts and maintenance personnel of industrial maintenance is the best shared economic scene in the industrial field, which is very consistent with the investment logic of venture capital.

China's capital through the "taxi war" "cycling war" baptism, has been familiar with how to use a shorter time to build unicorn, like industrial services such a trillion level of the market, once the excellent sharing of economic teams and projects They will be like a hungry wolf-like flocked to the Chinese industrial service industry into a piece, to train a few tens of billions of dollars worth of industrial service giant and GE, Siemens PK.

China Industrial Internet bridgehead

Industrial Internet in the international arena to return to manufacturing opportunities in the country is also a number of areas to achieve leap opportunities. In the process of integration of the Internet and the industry has four wave opportunities, the first wave is B2B e-commerce is basically belong to Hangzhou and Shanghai; the second wave is the enterprise services are basically belong to Shenzhen and Beijing.

Third wave of industrial internet, bridgehead Whispering? Fight library Jun do a guess:

The first may be on the standard GE model, then the more feasible is the government departments to the central enterprises of resources such as aviation, railways, electricity, oil and gas industry resources to integrate the development of industrial Internet. Now Xiong An to become the central enterprises headquarters, the central enterprises if the strong support of the development of industrial large data (similar to Guiyang government affairs data), the industrial assets of data, data business center located in the security, as a small bridal salon. .... This can lead to the development of industrial Internet. Of course, this model can only cultivate the giants for the domestic market, similar to Baidu, Taobao.

The second possibility is to use capital (drop mode) to integrate the market resources, it is more advantageous area may be Suzhou. Suzhou is located in the Yangtze River Delta Center, industrial development, the Internet is also very good, if you can vigorously support the industrial service industry, then have the opportunity to become China's industrial Internet bridgehead. Especially in Suzhou, a lot of foreign-funded enterprises, which help China's industrial Internet platform to become an international platform.

Ministry of Industry and Commerce Minister Miao Wei February 21 at 2017 Industrial Internet Summit, said the Ministry of Industry is studying the development of industrial Internet development path, will further form the development of China's industrial Internet top design. If China can become the bridgehead of the world's industrial Internet, the future of industrial Internet is like "one way along the way", as China's output of international influence as an important means.