ABB Journey to Digital New ways of Collaboration with Customers

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ASUT ANNUAL GENERAL MEETING 2017, 18. MAI 2017 ABB Journey to Digital New ways of Collaboration with Customers Sandro Maciocia,

Agenda ABB Group ABB Ability solutions & platform Project Example ABB Journey to Digital ABB Digital Lab Working within ABB Journey to Digital May 17, 2017 Slide 2

ABB in Switzerland Facts & Figures ABB Group ABB Switzerland 132 000 employees 150 nationalities Present in 100+ countries 300+ production plants USD 33.8 billion revenue in 2016 6 000 employees 80+ nationalities CHF 2 980 million revenue in 2016 13 production sites And a worldwide unique center for power electronics CHF 270 million investment in R&D every year 20% of global R&D investment Switzerland s second biggest patent applicant in 2016 May 17, 2017 Slide 3

ABB in Switzerland The pioneering technology leader What (Offering) Pioneering technology Products 59% Systems 24% Services & software 17% For whom (Customers) Utilities Industry Transport & Infrastructure ~35% of revenue ~40% of revenue ~25% of revenue Where (Geographies) Globally Asia, Middle East, Africa 37% Americas 30% Europe 33% May 17, 2017 Slide 4

ABB in Switzerland Our Divisions Electrification Products The division offers technology across the full electrical value chain from substation to the point of consumption, enabling safer and more reliable power. Robotics and Motion The division provides products, solutions and related services that increase industrial productivity and energy efficiency. Industrial Automation The main focus of this ABB business is to provide customers with products and solutions for instrumentation, automation and optimization of industrial processes. Power Grids The division offers power and automation products, systems and service solutions across the generation, transmission and distribution value chain. May 17, 2017 Slide 5

ABB in Switzerland Our locations Production/Engineering 1. Zürich Oerlikon/Altstetten 9 2. Baden-Dättwil 3. Genf 4. Kleindöttingen 5. Klingnau Headquarters Baden 6 5 4 10 2 12 1 11 13 6. Lenzburg 7. Molinazzo di Monteggio 14 8. Quartino 9. Schaffhausen 10. Turgi 11. Uster 12. Wettingen 13. Zuzwil 15 Sales&Service 2. Baden 8. Quartino 14. Biel 15. Lausanne 3 7 8 May 17, 2017 Slide 6

Unlocking the ABB potential in digital ABB Ability : industry-leading digital solutions built on a common set of standard technologies Open access, intelligent cloud New end-to-end digital solutions Systems to master process control Closing the loop with connected devices May 17, 2017 Slide 7

ABB Ability solutions & platform ABB Ability Utilities solutions Industry solutions Transport & Infrastructure solutions What Delivers customer benefit (uptime, speed, yield ) Platform (common technologies for device, edge, and cloud) How Provides ABB with efficiency and scale May 17, 2017 Slide 8

Digital services Software-based services through the complete value chain Markets we serve Connected hierarchy ABB Ability TM Utilities Autonomous operations Remote and integrated operations Industry Transport & infrastructure Analytics and advisory Remote monitoring and diagnostics Connected systems Assets, smart devices Uptime, speed and yield operational excellence May 17, 2017 Slide 9 www.abb.com/service

ABB Journey to Digital Project Example 1: Advanced Service Concept for Large Commercial Building Need Projectable, reduced total cost of ownership during entire product life cycle of ABB Products & Systems Maximum performance, efficiency, reliability and availability Challenges Integration into local control systems or other systems Technical spec, road map, work packages, methodologies System architecture, physical data transport, algorithms, HMIs (web, apps), cloud-platform, cyber security May 17, 2017 Slide 10

ABB Journey to Digital Project Example 2: Maintenance Free Waste Water Pumps Available Products Smart Sensor APP ABB Ability Smart Sensor Differential Pressure Sensors Communication Gateway ABB Ability Platform Need Early detection of potential problems in pump to trigger actions Market launch of solution available by April 2018 May 17, 2017 Slide 11

ABB Journey to Digital Supporting Customers with ABB Digital Collaboration Lab Co-Innovation Workshop Design Sprint Projects Installation, Commissioning Exploration Meeting Improvement Loop Initial Idea IT innovations + OT expertise May 17, 2017 Slide 12

Methodology within ABB Journey to Digital Speeding up learning and development within established companies Design Thinking Design thinking in business uses the designer s sensibility and methods to match people s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity. (Wikipedia) Minimal Viable Product In product development, the Minimum Viable Product (MVP) is a product with just enough features to gather validated learning about the product and its continued development. Gathering insights from an MVP is often less expensive than developing a product with more features, which increase costs and risk if the product fails, for example, due to incorrect assumptions. (Wikipedia) May 17, 2017 Slide 13

Digital Lab ABB Switzerland Collaboration with the customers (currently in proposal stage) Showroom ABB Digital Co-Innovation Lab Condition Monitoring MES System Zenon Connected Services Co-Innovation and training zone Digital Lab Drives Motors with motor sensor Robots on track PLC Design sprint project team1 Design sprint project team 2 May 17, 2017 Slide 14

Working within ABB Journey to Digital Interpersonal and Social Skills gaining high importance Interpersonal / Social Skills Stakeholder management Networking Common framework Rules of engagement Equality Transparency Creativity Trust Methodologic Skills Design Thinking Agile Development Minimum Viable Product, Roadmap Road Map building Design Sprint Projects Proof of Concept Prototyping Domain Expertise ABB Products Sensors System architecture Physical data transport Algorithms /Artificial Intelligence HMIs (web, apps) Cloud-platform Cyber security Yesterday Today Yesterday Today Yesterday Today May 17, 2017 Slide 15

Remarks, Questions and Discussion May 17, 2017 Slide 16