CHALLENGES IN A DIGITAL WORLD Martin à Porta, President & CEO, Pöyry PLC. Siemens Smart Future Seminar, December 1, 2016

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1 Martin à Porta, President & CEO, Pöyry PLC Siemens Smart Future Seminar, December 1, 2016

2 THE DIGITAL NARRATIVE 68 years since the first successful run of a computer program CAD introduced to engineering design Big data algorithms used to map world s pulp and paper mills The digital revolution has not just arrived, it has well and truly settled in Cate Connolly, UM London First computers installed at Pöyry (HP 2000 & 3000) Pöyry develops MODE and DATMO data management systems Virtual Mill introduced by Pöyry, enabling connected design decisions 2

3 DIGITALISATION IS NOTHING NEW Our industries have, in a way, been digitally advanced for a long time, for example in forestry: FOREST INDUSTRY Social media of the day: printed! FOREST INDUSTRY Rise of industrial nations outside Anglo- Saxon world FOREST INDUSTRY Automation superhighway Water Power Newtonian Calculus Electricity Maxwellian Calculus Automation Control theory 3

4 THE BIG PICTURE THE WORLD IN 2016 World population reaches 7.6 billion 10.8% of global population undernourished 93% of energy for transport use is oil 41% increase greenhouse gas emissions v billion connected things in today s world Forests cover 31% of land area 50% of people live in urban areas 1/12 of world s population over 65 40% of wood traded, used by pulp & paper industry 4

5 THE BIG PICTURE THE WORLD IN 2050 World population reaches 9.6 billion 3.9 billion people living under severe water stress 1/3 all energy used for transportation Energy production will need to increase by 100% Computers will be 1,000 times more powerful* 12% increase in area covered by forest versus % of people will be living in urban areas 1 in 6 of world s population will be over 65 Bio-materials proliferation of products developed from natural sources 5

6 THE DIGITAL NARRATIVE THE CHALLENGES Continuing digitalisation and crossing thresholds SECURITY PROCESSES OPERATIONS CONSUMER Keeping data, tools, operations and processes safe from external interference What do we need to a) understand b) measure c) analyse in our industry s processes How do we gain new operations insight with big data Meeting the consumer s in new ways, more power will be in the hands of the consumer PRAGMATISM Purpose driven digitalisation Digitalisation has to bring value to us and our customers Making a better connected companies Fully leveraging services & expertise Not digitalisation for the sake of digitalisation 6

7 THE DIGITAL NARRATIVE PURPOSE DRIVEN DIGITALISATION Unlocking the value Big Data & AI Automated engineering and design decisions backed up by 500 million points of engineering data. Blockchain peer-to-peer transactions shaping future energy markets. Virtual Reality Combine virtual reality with virtual mills, reducing risk, improving design process and increasing customer satisfaction. Cybersecurity 78 percent of security officials were expecting a successful attack on their ICS/SCADA systems within the next two years * Use engineering, process and IT knowledge for more holistic security. Connected smart sites We ve built engineering expertise looking at the bigger picture of energy, industry and infrastructure. Now we can do the same with their data, control systems and digital processes - across the whole site. *Source: 2014 Ponemon Institute study, Critical Infrastructure: Security Preparedness and Maturity 7

8 USING BIG DATA IN ENGINEERING DESIGN PROCESS Automatic lessons learnt from all previous engineering design Manual routine work Low reuse Consistency checks and quality issues Lack of transparency Lack of automation & scripting Integration issues Highly automated design process (target: -30% in detailed design work) High degree of reuse Consistent quality Transparency of design choices Routine work automated Fully integrated design Specialist knowledge still required, but can focus on key areas of value based on automated design processes. Starting the race 5 steps further ahead. 8

9 POTENTIAL BLOCKCHAIN APPLICATIONS IN THE ENERGY INDUSTRY Home appliances Home appliances can be made autonomous to manage their own energy usage and communicate with other appliances Peer-to-peer energy trading Peer-to-peer networks where for example neighbors can sell their PV overproduction to each other EV charging Autonomous EV charging stations that procure electricity from a peer-topeer network Saving time, improving quality of life Saving money on energy and storage Saving costs in sustainable charging Key challenges: Scaleability, speed, confidentiality, transparency, governance, resistance to centralisation, frameworks. 9

10 Level of Cybersecurity CYBERSECURITY FINDING THE SWEET SPOT HOW MUCH IS ENOUGH? 100% Cybersecurity does not exist How high the bar is set (as for example on a high jump) Find the Sweet Spot, where you get the optimal return value for your investment The Sweet Spot will drift in time with along the new Cyber-threats Effort & Investment ($) Combine strategy, engineering, process, systems and IT expertise to create stronger cybersecurity 10

11 CREATING CONNECTED SMART SITES The forest industry has always had the latest technology in its value chain BIOMASS PROCESSING VALUE ADDING END USE AND LOOPING Mechanical processing Converting to end uses Consumer and relooper*) Chemical and biological processing Infra: Logistics, data, operations *) ReLooper = reuser, recycler, energy recoverer, compostor Smart Forestry Smart Processes Smart Value SmartLoop Satellite monitoring Smart Inventory Predictive forestry Fibre fractioning at source Deep Sight (Microtec) into logs - Artificial intelligence (AI) in process control - Data mining - Materials simulation by AI Virtual and Augmented Reality Data mining of consumer needs Smart customisation of converting Maximising value of each point of information now lost AI recycling systems Digital tracking Smart logistics Complete design: designing mills incorporating information from all points of value chain; optimising for feedstock and product; remote VR maintenance; VR improvement of design 11

12 THE DIGITAL NARRATIVE THE CHALLENGES Continuing digitalisation and crossing thresholds SECURITY PROCESSES OPERATIONS CONSUMER Keeping data, tools, operations and processes safe from external interference What do we need to a) understand b) measure c) analyse in our industry s processes How do we gain new operations insight with big data Meeting the consumer s in new ways, more power will be in the hands of the consumer PRAGMATISM Purpose driven digitalisation Digitalisation has to bring value to us and our customers Making a better connected companies Fully leveraging services & expertise Not digitalisation for the sake of digitalisation 12

13 CONTINUING THE DIGITAL NARRATIVE The best way to predict the future is to invent it. Alan Kay, computer pioneer,

14 THANK YOU! Consulting. Engineering. Projects. Operations.