Achieving Top Quartile Performance

with Operational Certainty

Harnessing the IIoT for Digital Transformation

 We Remain Committed to Partnering with Our Customers to Achieve
Top Quartile Performance Across the Lifecycle of Their Investments

PROJECT PERFORMANCE
WHY? $430B Opportunity
Top Quartile
Performance OPERATIONAL PERFORMANCE
$1T+ Opportunity

WHAT? Customers cite people,

culture as the most
Project Certainty
Operational Certainty
HOW? significant challenge
Plantweb to change*

*Source: IHS Markit, Operational Excellence VOC Research (2016) 2

 Manufacturers Must Transform Operations to Achieve Top Quartile Performance,
But How?

“We have had process control “...nobody wants to be back in the

for a long, long time… now we pack even if you are still making
can extend that to a much money...there is a sense of
wider range of possibilities” needing to be in the top quartile
– CTO Integrated O&G to survive...”

“[Digital investments] it’s literally “The challenge is something we talk

just to stay competitive” about—companies do things they
– CEO US Power Utility always did rather than doing things
differently -- it is a mind-set...”

Source: Harris Insights & Analytics Digital Workforce Study (2017) Source: IHS Markit, Operational Excellence VOC Research (2016))
Project Performance Has Become A Major Business Issue

25% over budget

50% over schedule

Independent Project Analysis (IPA), Inc., Industry Metrics, September 2015

Top Quartile Performers Have 54% Lower Cost and 49% Shorter Schedules
Than Fourth Quartile Performers 4
 Project Certainty Leads to Lower Costs, Reduced Schedules, and More
Predictable Outcomes
Eliminate Cost Reduce Complexity Technology Enablers Availability for Use
Electronic Marshalling (CHARMs) Available Now
• Eliminate Unnecessary Work • Utilize Cloud Engineering Standard ICSS Smart Junction Boxes Available Now
• Automate Steps to Reduce Hours • Decouple Dependencies Standard ICSS Controller, network, Server Cabinets Available Now
• Utilize Standardized Technologies • Improve Information Management DICED, Smart Commissioning (Analog) Available Now
DICED, Smart Commissioning (Discrete) Under Development
Auto Programming of Cause & Effects Under Development
Virtualized Engineering Available Now
Runtime Virtualization Available Now
Electrical Control Implementation in ICSS Available Now
Smart, Configurable MMS I/O Available Now
Alarm Management Delivery Solutions Available Now
HMI Simplification & Delivery Improvements Available Now
Simplified 3rd Party Package Interface Available Now
Embedded APC Available Now
Cybersecurity 3rd Party Certifications Under Development
Wireless Networks & Instrumentation Available Now
Field Mounted Analyzers Available Now
Conditioning Orifice Plates Available Now
Multi-Port / Multi-Phase Testing Solutions Available Now
Non-Intrusive Temperature Measurement Available Now
Expert Partnering Accommodate Change Dual Vortex Available Now
Multi-Variable Transmitters Available Now
• Strategy Alignment • Add Speed & Flexibility
High Integrity Solenoids Under Development
• Application Expertise • Absorb Late Design Changes Local Modular Power Distribution Under Development
• Global Engineering • Eliminate Plant Start-up Delays Custody Transfer Meter Skid Standard Solutions Under Development
Automated Isolation Valves Under Development
5
 Industry Benchmarks Reveal Significant Business Improvement
Opportunities from Average to Top Quartile Performers
Safety Reliability
Recordables Maintenance
3X fewer 4% higher Availability
Process availability
recordables Incidents
and process
incidents
Approximately Half the
ONE TRILLION maintenance
4th 1st costs 4th Quartiles 1st
Quartiles
DOLLARS
Production in company value is Emissions
lost every year to
Operating Costs CO2 Emissions
suboptimal operating
20% lower Utilization performance 30% lower
operating costs emissions Energy Use

30% less
10% higher energy use
Utilization Rate 4th Quartiles 1st 4th Quartiles 1st

Sources: Refining and Petrochemical Benchmarks,

API, Solomon, OSHA, IHS Markit and Company Reports
The Era of Extracting Efficiencies Has Reached Diminishing Returns

Efficiencies captured through modern

approach to process automation

Stagnant productivity across

the manufacturing sector
Workforce

Manufacturing workforce
is stretched

Productivity

Time

Efficiencies gained through cost reduction

& pressure on staffing levels

7
Top Quartile Performance Requires a Leadership Driven Culture Change

Many companies have operational

excellence programs that achieve “We’re staffed
only incremental benefits to run, not
Contributing Factors: staffed to
Outdated practices developed change.”
prior to advances in technology

Risk aversion – Operations Manager

Constrained resources (skills/capital)

Sustainable Change Can Only Be Achieved Through Development and Implementation of a

Digital Transformation Strategy
The Next Era of Value Creation Will Be Enabled by Digital Transformation
Adoption of
Best-In-Class
Behaviors 5 ESSENTIAL COMPETENCIES
Incremental OF DIGITAL TRANSFORMATION
Continuous
Improvement Automated Workflow
Decision Support
Workforce
Workforce Upskilling
Mobility
Productivity
Change Management
Time

Emerson Innovations Will Power Customer’s Strategies Across Essential Competencies

9
 Top Quartile Performers Behave Differently and Realize Significant Business
Performance Improvement
Behaviors of Top Quartile Performers
Link Strategy to Demand a Culture
Business of Accountability
Objectives

Embed Expertise in Optimize with

Work Processes & Real-Time Data
Applications

Emerson Confidential
10
Source: Industry Sources, Customer Interviews and Emerson Consulting Analysis
Emerson Introduces Operational Certainty Approach
for Top Quartile Performance

Identify highest impact opportunities

Provide business case for investment

Develop roadmap for implementation

Ensure realization of ROI at every step

Expert Partnering Delivers Peer Leading Reliability Performance
Programmatic Approach Results
to Top Quartile Performance Top Quartile Behaviors
Maintenance
Availability
• Business Case Strategic alignment through
Readiness
• Gap Analysis
consulting interactions and
Workshop
deliverables
4th Quartiles 1st
Establish a vision for operations
beyond the current plan
Collaborate on a shared blueprint
100+% Capacity Utilization
Information • Master Equipment List
Gathering • Criticality Ranking
for a comprehensive reliability
management program Maintenance Costs (PRV)
Revitalize asset master data in Before After
CMMS connecting criticality to
• RCM / FMEA process 7% 3 Yrs 3%
Reliability Strategy • PM Development
Development • CBM / PdM Development Rigorous work process definition
• Equipment Monitoring Design to enable planning and 24% Preventive
scheduling Maintenance

• Resource Load Balancing

Accelerated staff proficiency $10M/yr
through assessment and training
• BOM & Warehouse Optimization Air System
Implementation &
• Load Manufacturing System Rationalized spares through
Fixed & Lost Profit
Opportunity Cost
20% Efficiency
Sustaining
Emerson Confidential • Continuous Improvement efficient inventory analysis Savings
Leverage Existing Investments

Make the Business Case

Implement a Scalable Approach

 R
O
IOT
I
Automation and the Industrial Internet of Things

Why is everyone
talking about it?
Improved sensing technologies
Cost-effective, secure connectivity
Advanced computing and
analytical methods
Evolving Deployment Methods for Operational Improvement

Local Experts Centralized Expertise 3rd Party Expert Services

Automation Network On Premise or Cloud Hosted Cloud Hosted
Customer Center
Integrated Operations Center 3rd Party Monitoring
Monitoring and Diagnostics Center and Analysis Platform

Diagnosis
or Work
Instructions
Customer
Data

Customer Data Customer

Connecting the Data to Expertise Unlocks the Value of Industrial IoT

16
How We Control and Improve Operations in Plants Today

Control Experts
Algorithms Limited
MES Analysis

Production Reliability
Process Safety
Control Energy
Move Valve Mostly
Sensors Start Pump Action
Manual
Etc. Data

Closed Loop Frequently Open Loop

17
Digital Transformation Changes the Role of Core Production Workers
CURRENT
Control System Engineer

Process Engineer

Instrument Technician “In many cases

we redeploy the
Control Room Operator
workforce into doing
Unit Maintenance Technician more intelligent
Routine Physical Non-Routine Physical
tasks...the integrity,
Collecting Data Interpersonal Collaboration quality, and
FUTURE Routine Data Reporting Analytical Expertise productivity of the
Control System Engineer process is improved
by them doing more
Process Engineer
intelligent tasks.”
Instrument Technician
- CTO, Integrated O&G
Control Room Operator

Unit Maintenance Technician

Source: Human Centered Design Personas, Customer Proven Results & Emerson Analysis Source: Harris Insights & Analytics Digital Workforce
Study (2017) 18
Digital Transformation Addresses the Challenges of 4D Operations

Dull Engaged
▪ Routine reporting processes Elevate roles from routine monitoring to
responsibility for business metrics with
▪ Outdated operating procedures optimization tools

Dirty Clean
▪ Unnecessary equipment repairs & rework Eliminate unnecessary field work
through use of predictive tools and
▪ Required physical observations of practices
plant/field equipment

Dangerous Safe
Mitigate exposure to personnel in
▪ Hazardous area exposure via routine, hazardous areas through elimination of
manual data collection rounds and routine data collection rounds
unnecessary work

Distant Desirable
▪ Non-productive (travel, wait, etc.) time Use remote collaboration to optimize
▪ Contingency time (scheduling & project execution/test and resolve
collaboration bottlenecks) operational problems

19
The Plantweb Digital Ecosystem Features
a Set of New Products and Services

Data Connectivity Analytics Services

A portfolio of A set of secure A portfolio of Delivering access

innovative architectural scalable and outcomes
sensors that designs that applications to
ensure data in through
are easy to install deliver monitoring
and maintain existing systems information and
are seamlessly actionable solutions and
connected to insights new commercial
operational models
applications
 Data Connectivity Analytics Services

It All Starts with Data

Pervasive Sensing: Innovative sensing strategies for cost-effective monitoring and
optimization, enabling improved operational visibility to solve new problems

The Industry’s Broadest Sensing Portfolio Recent Enhancements:

WIRELESS TOXIC GAS MONITOR:

Extends toxic gas detection coverage to
CORRLOG ROXAR NON-INTRUSIVE VIBRATION VALVE PARTIAL
CORROSION POSITION DISCHARGE costly, difficult-to-access applications

EXPLOSION-PROOF
RADAR LEVEL LEVEL SWITCH DISCRETE FLOW TOTALIZER PASSIVE
APPROVAL FOR THUM:
TEMPERATURE US and Canada
Add wireless capabilities to wired devices
in hazardous areas
NON-INTRUSIVE PRESSURE PRESSURE TEMPERATURE
TEMPERATURE GAUGE
HIGH-ACCURACY WIRELESS
GUIDED WAVE RADAR:
ACOUSTIC POWER MODULES THUM ADAPTER POWER METER Improve safety by keeping people off tanks
New Approaches to Security Needed to Data Connectivity Analytics Services

Safely Bridge OT and IT Environments

Secure First Mile: Connectivity architectures that facilitate the secure transfer of plant data to
the appropriate applications, services, or mobile users – the right solution for the right application

Traditional Offline Secure OSI PI-PI Physically Direct Connect

“Purdue Model” File Transfer Cloud Connect Independent Network with Data Diode

Edge
IT Firewall Telecom. Gateway
RDP File Infrastructure
Data (Remote Desktop Transfer Secure
Protocol) Secure Secure Data
Server First Mile
First Mile First Mile Diode
3G/4G
Router
OT Firewall Field
Sensor VLAN VPN Sensor Sensor Gateway
Gateway (Virtual LAN) (Virtual Private Gateway Gateway
Network)

EMERSON IS WORKING WITH CUSTOMERS TO TEST AND DEPLOY

SECURE CONNECTIVITY ARCHITECTURES
 Analytics and Applications Enable Data Connectivity Analytics Services

Expanded On-Premise Expertise

Plantweb Insight: Lightweight analytics with Plantweb Advisor: Enterprise-wide analytics

pre-configured algorithms for specific asset classes with customizable algorithms and displays

Relevant Time Asset Monitoring Rigorous analysis of Equipment

Performance & Efficiency
Abnormal Situation Identification
Pre-Packaged Analytics
Seamless Integration
Minimal Configuration
Simple, Actionable Interface

Plant, Unit, and

Equipment Health analytics

Comprehensive management of Energy

Consumption, Costs, and Emissions
Alert Management and Mobility Tools Data Connectivity Analytics Services

Improve Effectiveness and Collaboration

Plantweb Optics: Integrates disparate data and delivers to relevant users, enhancing
workflow processes, collaboration, and integration

NEW RELEASES:
Data connectors for:
• AMS Device Manager
• AMS Machinery Manager
• Wireless Gateways

COMING SOON:
Data connectors for:
• Plantweb Insight
• Plantweb Advisor
Historian: Health trends
over a period of time
CMMS Integration:
Integrated workflows
IIoT Enables New Outcome-Based Data Connectivity Analytics Services

Services and Business Models

Connected Services: Remote asset monitoring service models that deliver actionable
insights, enabled by highly secure connectivity and delivered by Emerson experts

Expert Analysis
CURRENT
OFFERINGS

On-Premise Sensing
and Data Collection Repair Recommendations,
Collaboration, or Services
Plantweb Enables Innovative Lifecycle Data Connectivity Analytics Services

Services and Support Capabilities

Lifecycle Services: New digital Shutdowns, Turnarounds, and Outages (STO) capabilities
transform the end-to-end service and support journey
 The Plantweb Digital Ecosystem: Enabling Top Quartile Performance With the
Industry’s Broadest Integrated Portfolio of Digital Transformation Solutions

DIGITAL DIGITAL
FOUNDATION TRANSFORMATION

Project, Lifecycle, As-a-

Consulting & Software Connected Services
Services and Educational Shutdowns, Service Cloud-Deployed Asset Expertise and
Implementation Industry Expertise: Digital Strategy Turnarounds, Applications Actionable Insights
Services Projects & Operations & Cybersecurity & Outages
Models

Production
Optimization Personnel Effectiveness Asset Performance Platform Digital Twins
Digitally-Enabled Work Processes Enterprise Analytics & Collaboration Plant & Asset Optimization
Analytics
Operator Platforms
Edge, On-Premise,
and Cloud Performance & Software
Device & Machinery Diagnostics Asset Health Asset Health & Efficiency
Condition-Based Analytics Pre-Configured Analytics Integrated Multi-Asset Analytics
Control & Safety
Systems

Secure Data Integration & Cybersecurity

Secure First Mile
Connectivity SCADA Embedded Security at All Levels
Secure Data Pathways to
Connectivity External Applications and Experts

Measurement Valve Non-Intrusive Radar Pressure Toxic Non-Intrusive

Instrumentation Valves Pneumatics Position Flow Temperature Level Gauge Gas Acoustic Vibration Corrosion Location
Intelligent Pervasive
Data Field
Devices
Sensing
 OT and IT Organizations Traditionally Have Very Different Competencies
Operational Technology (OT) Information Technology (IT)

“Run the process” “Run the business”

Maximize facility performance and uptime Strategic Mindset Provide the infrastructure to enable optimal performance

Purpose-built Open and Connected

technologies to perform specific platforms leveraging latest technology
tasks reliably, for long life, with trends, with regular updates performed
minimal expectation of updates
Technologies Deployed during down periods

Ensure Mitigate risk of physical Ensure Prevent information theft by

disruption or safety incident deploying network security
Control by limiting access Security Objectives Confidentiality best-practices and devices

Domain Expertise: Technology expertise:

intimate knowledge of the process, and understands Digital Transformation knows how to implement new technological
where to target new applications to extract real value Competencies approaches and optimally architect data flows

IT and OT Organizations Must Work Together in Order to Extract Real Business Value
from Digital Transformation
28
Emerson Strategically Partners with IT Providers

1. OT Expertise and the broadest IIoT portfolio in

the industry

2. IT / OT Solutions Architects understand IT

and OT organizations and deliver jointly
developed solutions

3. Partnerships with proven IT domain experts

that our customers already work and trust

29
 Emerson Is Ready to Jumpstart Your Digital Transformation

1. 2. 3. 4. 5.
Align Justify Design Deploy Sustain

DELIVERABLES

Stakeholder Readiness Business Case & Architecture & Program Implementation Program Management
Goal alignment, culture, Opportunity Prioritization Functional Specification Process w/ deliverables, KPI tracking and scale up
operations and Performance benchmarks, Infrastructure gap & work streams, resource
infrastructure workflow and ROI analysis solution analysis, plan
management of change

WHY EMERSON?

100 CONSULTING LEADS 6200 EQUIPMENT TEMPLATES CHANGE MANAGEMENT TOOLKIT & SURVEY
supported by over 5000 used to standardize operations identify and create opportunities for
delivery engineers and maintenance processes organization and workflow changes
 Plantweb Solutions Deliver Incremental Return on Every Investment
as You Move Toward Top Quartile

Operational
Certainty
PUMPS STEAM TRAPS CORROSION

Asset Monitoring Health Advisor Enterprise Optimization

On-Premise Deployment, Cloud-Enabled Deployment, Consulting Engagement, Business
Standalone Applications Centralized Applications Alignment, Applications Expertise

SCOPE Dozens of Assets Thousands of Assets Plant Reliability

INVESTMENT $ $$ Partnership Engagement

+4% Availability
ROI in ROI in
RESULTS -50% Maintenance Costs
Weeks Months
Top Quartile Outcomes
Plantweb is Already Putting Companies on the Path to Top Quartile
Operations

Customer: Specialty Chemical Customer: International Oil & Customer: International Oil &
Company, North America Gas Company, North America Gas Company, North America

Pain: Limited visibility to safety Pain: Unknown vibration, Pain: Heat exchanger fouling
shower trips causing long and cavitation & seal fluid issues and heat duty error were causing
unreliable response times to on rotating pumps were causing process interruptions and energy
incidents shutdowns and safety risks losses
Solution: Safety shower and Solution: Pump health Solution: Enterprise wide heat
eyewash station monitoring monitoring exchanger monitoring

4-month investment 17% maintenance cost 9-month investment

payback with reduced HSSE savings, installed at 1/10th the payback on enterprise-wide
risk and cost costs of the alternative approach solution
Summary of Emerson’s Digitization Beliefs

The opportunity for transformational Solutions must use existing

results is real, but the technology is infrastructure where possible and
mostly evolution not revolution meet existing security practices

Work process change and people’s You need to know the problem you are
resistance to it is the biggest challenge addressing – just running analytics at
to broad deployment and sustainability data looking for insights doesn’t work

Model with rules, first principles,

Applications and programs
and FMEAs where you can; let
must have clearly defined ROI
machine learning fill the gaps

Even a big infrastructure is made of many small parts;

you can start small and scale up
33
We Put the ROI in IoT