Rockwell Automation, Inc. (ROK) Earnings Call Transcript & Summary

Hello, and thank you for joining today's webinar, Empowering Automotive Tier Suppliers, Unleashing Workforce Potential with the Right Technology. Before we get started today, I do have a few housekeeping items. The audio for this event will be streaming through your computer speakers so please make sure your volume is turned up and your speakers are turned on. [Operator Instructions] Today's event will be recorded, and it will be available immediately after its completion. You can access the reporting utilizing the same link that you used to access the live event today. After the webinar, we will also be sending you an e-mail with the resources from today's event, including the slides, any handouts and the event recording. Additional information regarding today's topic can be found in the handout panel of the webinar, and with that, I will pass it over to today's speakers, Renee Pieti and Barry Paul. Take it away...

Thank you, Elizabeth. My name is Renee Pieti. I am the global leader for Tier 1 automotive here at Rockwell Automation. And we're going to be speaking about empowering automotive tier suppliers and unleashing workforce potential with the right technology. I am joined with Barry Paul, who is the Senior Manager at Kalypso. We are going to be your hosts today. What's on the agenda, we're going to be talking just to kind of relate to what the tier suppliers are going through and kind of review the challenges that are out there and how we're trying to provide solutions and making sure that we're exposing the tier community to the different technologies available that can help mitigate these challenges. We'll also be talking about workforce enablement, the digital thread utilizing digital twins, extended reality and its use cases and benefits and then summary up with the Q&A. I spent a lot of time working with the Tiers, working on their manufacturing floors, working with their global headquarters, and also working with their machine builder ecosystems and the automakers that drive their business. And right now is a really challenging time because -- we're going through the EV revolution, the alternative fuel cell revolution looking at hydrogen and all different types of energies. Tier suppliers are looking at their portfolios if they typically had products cater to gasoline engine vehicles, things are completely changing. And so there's a lots of -- lots of quick moving, everything is very quick moving, and speed to market is shrinking. So the speed -- the time frame, which to deliver to the market is shrinking, and it's putting pressure on everybody. And then also accelerating refresh rates more than ever, it is important to be flexible in manufacturing. And then optimizing production being efficient, the tier supplier community works on low margins, they typically do not have the types of resources available to them they're very lean organizations. And so being able to implement technologies and ideas that produce an ROI quickly that bring that cost down is really important. And doing it with minimal influence and pressure on workforce, which is one of the challenges that we are going to directly hit on today, which is workforce enablement. It's not just a tier industry problem or automotive problem, it's an all industry problem and finding skilled labor in the plans, in any kind of position, in companies is an issue and is usually top of mind of most of the tier suppliers. So we are trying to bring you guys topics and technologies that will help address that. And that's why I'm going to turn it over to Barry Paul, and he will begin on -- talking about how you can do just that.

All right. Thank you, Renee. So yes, what I'm going to focus on today is the workforce enablement. There are a variety of factors these days that have impacted the workforce, and we're going to cover a few of those and some solutions that kind of can address these and how they can benefit you. And so to start with that, we'll start here at the very beginning there, the pressure to be digital. So as we all know, things have changed over the last few years. The first bullet was here COVID-19. Well that kind of brought everybody to the forefront of being digital. The digital transformation started probably several years ago, companies started moving from more of a traditional method than paper and drawings and things like that to more digital. . And as we know over the last few years, that's kind of been accelerated to bring everybody kind of more to a digital aspect because people be at home, more people being virtual and kind of the spreading out of the workforce and more of a remote environment. So that's kind of led to a lot of changes in the industry as to how people manage their business and how do they manage their manufacturing and a lot of different components. So also, that kind of leads to the next point of the geographical displacement. We've seen a lot more companies reduce their overall footprint where possible. In manufacturing, obviously, we've got to have people on site. But in other areas, we've moved them to more remote and also travel. Travel has kind of been up and down over the last few years. A lot of companies have reduced the amount of travel for one reason or another. It could be cost. It could be, again, over the past few years with the experience that we all went through. So we just kind of reduced the overall travel. So that led to, again, the need to be virtual and implement tools and resources to help make that actual path that should be possible. And another point we want to talk about is just a demographic shift. So a lot of things we see now with companies are just the aging workforce. That's a common problem across many different industries. There is an aging workforce that is starting to retire, starting to leave, and we have a younger generation of workers coming in. So the problem we have with this is a lot of that knowledge that leaves when those people retire, a lot of that knowledge goes with them. So companies are working hard to try and retain that knowledge and put it into a way that works for, I guess, not just the next generation coming in, but just even further beyond that. If we can capture that now, to put it into a system that works and can be there for generations to come, that's a big benefit to a lot of companies. One example, in particular, I'll give, I worked with the customer several years ago. It's not automotive, but it was aerospace, working with a rocket manufacturer. And they had a problem when they started a brand-new company. You've probably all heard of it, SpaceX. They started this company from ground up and wanted to reinvent the way that we use rockets and we get to the space. So a lot of the people that invented this kind of technology are already retired. They're gone. So they had the problem, but not necessarily the aging workforce, but where do you get the experience workers. They're already out of the workforce. They're already gone. So what they did was they hired people to come out of retirement to capture that knowledge before they're gone for good. And these are the people that basically started launching rockets on there. They started -- they kind of invented all this technology. So what they did there was they took these people, put them back into the workforce, made it worth their while and then built a 3D digital twin of their manufacturing floor. And they captured a lot of the ways that they went through their different processes to build the rockets and make that into manufacturing work instructions, digital twin to show people how to build rockets, how to maintain them, how to service them and they captured all this knowledge, and they went out and hired younger kids all out of college. These kids are pretty much the video game generation. These are the younger crowd that has spent their entire life being connected to the Internet, having video games, using controllers, that 3D environment that they are used to, they put that technology in that kind of working environment in front of them and that's easier for them to understand. It's engaging, they like it, and they learned a lot. You look it like the old saying, a picture is worth a thousand words, and a Forrester study out there that says a video is worth 1.8 million words. But what's an immersive environment or a digital twin or interactive environment worth? I actually couldn't find any stats on that. But I would say it's worth a whole lot more. You're giving them an experience that they can see firsthand, how things work. They don't have to look at drawings. They don't have to understand the drawing. They don't have to look at old schematics and that way of doing things. So what they've done is you can see in what we've seen this over the development of that company. Now we have not only rockets that go up the space, they land themselves. We've never had that before. We never had anything like what we're seeing these days. They took the older generation of experienced people, took that knowledge, combined it with the younger kids, younger ideas and put it together with a way to get that message out there and train people and get them collaborating together. So I have a long-winded description, but I think out of all the examples I've seen over the years that was a great way to capture that knowledge of these experienced people and put it with that younger generation, match the two together digitally, through technology and through new capabilities and new ways of doing business. So with that, let's move on to the next slide where we actually talk about some of these benefits. How does that affect us? Well, it reduces downtime in a way. We understand something, we understand how things work. We don't see a loss in production time. We don't see things going down as often because we don't -- maybe mistakes are made -- or there's not a slowdown while we bring somebody up to speed. Somebody -- if someone changes from one line to another, you had to get them up to speed. That's a lot faster process by using virtual methods versus traditional methods, shadowing people, looking over a shoulder or having someone, tell somebody how to do something or having them look at printed instructions. Your accuracy goes up tremendously by seeing things happen by interacting with it, they understand it better, the first time. They don't make mistakes as often as they used to because there's not as much misinterpretation. Overall training -- that cross training from one line to the other. You have to move somebody around within the company. Maybe someone doesn't come to work one day or perhaps as they all saw the recent lottery, somebody wins a lottery, pretty high. They don't come back to work. We can take them and use methods that we're going to discuss digital twins, augmented reality, virtual reality. These are methods we can take and dramatically reduce the amount of time it takes to get people up to speed. So what we're going to focus on, too, throughout this is just the overall digital threat. What's it take to get there? There's a lot of components in that. A lot of different ways to get you to where you need to be from beginning to end. But what we're going to focus on really is kind of where Kalypso's sweet spot is, which is creating a digital twin for you and connecting all the components throughout your enterprise, combined it with AI and extended reality and kind of bringing it all together, where we have -- we create user experiences, we're using technology to help make decisions on the back end and help us speed up the processes. And we put all this together into an experience that's going to increase a lot of things over -- pretty much a lifespan of your production. It's going to increase that training time, reduce downtime, a lot of things we just spoke about. So we are going to move forward and I want to take a little bit of a different approach, but we're going to talk about different personas throughout the factory. And you'll see these kind of as I go through my presentation, talking about different areas where we can talk about different operators on the floor. We're going to start with the controls engineer. And a lot of their methods, 2 things are a trial-and-error approach to try and figure out problems and changes and make different testing. Equipment operator. They got to get this equipment going. They've got to get -- maintain it. They got to keep it running. And they use a combination of things to do that. It's on-the-job training. They cannot learn as they go sometimes figure things out on the fly. And line operator, sometimes you have imperfections on the line. You've got to make adjustments. You've got to tweak things, maybe in your assembly lines I think. What do we do to make that happen? Currently, there's a variety of methods. Lot of it relies on tribal knowledge. And just basically a little bit of trial and error also. So we're going to see how we can put together some systems and virtual systems that will help you make adjustments reduce your downtime, reduce errors, maybe increase your throughput and provide a lot of value. So again, I kind of covered some of this in the last slide, but briefly, I'll go over these again. The current method is trial and error. If we do this virtually, if we do virtual commissioning, perhaps get a new line up and going before it actually exist. We can create a 3D model. We could do a lot of testing. We can do a lot of speed testing on the line. We can provide a lot of different input to test things virtually before they actually are built. And we've seen where that increases your time to market or time to get the line up and going by up to 10x faster by troubleshooting and alleviating problems before they actually exist in a real physical model or physical production. Training and onboarding, when we got to bring people in and teach them how to get up and going or as I mentioned earlier, cross training going from one line to the other or new hires, whatever it may be, you can see at least 50% and up to maybe 75% reduction in time to get up to speed by using virtual training versus traditional methods, again, shadowing or hands-on or just looking at 2D traditional drawings and text maybe. It's a lot easier to see something done and repeat it than it is to read it and try and understand it. And then lastly, operating method. A lot of times, you have the as designed and as built and then as maintain models. And so with operating -- the operating method here, we're relying on a lot of tribal knowledge. We have methods that are as designed, but that's not always the way it's built. Sometimes things change. So if there's a disconnect between the direction and how something should be built versus how it's actually built, where does that usually lie? That usually lies in the knowledge of the people actually building things, doesn't always make it back to the original instructions. So that's where they get that tribal knowledge from, people to understand and know how to do things. And as we mentioned earlier, the aging workforce, if those people leave, you lose that knowledge. It's gone for good in some cases. So we want to create a system where we can capture some of that knowledge and whether we're using 3D, whether we're actually capturing the live steps where somebody is walking through and doing something, we capture a variety of ways that we can go about doing this, and we'll show you some of those as we move forward. But question as we're moving forward. Anyone out there want to give us an answer to this. Are you using a digital thread currently, have you started transitioning from 2D drawings and spreadsheets and PowerPoint, perhaps, into a more digital solution, more of a virtual solution. And are you using AI. Yes 100%, no 50%. All right. A few answers coming in here. So as I mentioned, this has been going on for a little while, a few years now, the transition to digital. And we see that more and more as time goes on, that's getting where more and more companies are utilizing digital technology. And the traditional 2D or text-based is pretty much a part of the past or will be really soon. All right. About 40% there. Let's move on. Okay. What is the digital twin? This varies quite a bit depending on who you talk to. People have different interpretations of it. Their -- digital twin can mean a lot of things in different use cases. It doesn't always mean that -- a digital twin doesn't always mean it's just a 3D version or just a digital version. But again, it depends on who you talk to. In our case, we're looking at it as the digital twin is a digital representation of a physical entity. And that can be used in a variety of ways. We can use it for virtual commissioning, as I mentioned earlier, to basically troubleshoot and -- not of the troubleshoot, but actually dial in and figure out maybe speeds of a production line, a lot of different components you can put into a virtual model to determine how things are going to run before they actually exist. So when the actual physical model is built, you're kind of ahead of things, and you know what you need to put in for how -- basically how to set it up. And then the digital twins, you can make a digital twin perhaps if you have an existing product or existing production line facility, manufacturing facility, whatever it may be, if it's already in existence, maybe you want to build a digital twin of something that already exist, so that you can go in as well do troubleshooting, maybe you can do training, you can show how a production line works. So there's a variety of use cases. So digital twin for us is kind of -- it could be before something exist or replication of something or duplication of what -- though it does already exists. There are a lot of things you can use to put into those analytics, we can see different metrics. CAD data, we can actually take the CAD data. Most companies have their CAD data. Some don't if you're getting the information from suppliers, you may not have all the CAD data, but we can have -- somewhere to have to start with to create that digital twin or just capture methods where you can go actually and capture maybe it's a 3D part, it could be a part of a car, the engine or it could be an actual facility, the whole entire building. There's different ways to capture data to create a digital twin. You have physical dynamics you can put into there, you can put in attributes to emulate things. You can put in information to simulate different components. And we can actually build controls in where you can use the digital twin to control the physical models. And then the human interface. We have -- we can control, as I mentioned, you can control different aspects of real physical products. And there's certain provided ways you can interact with the digital twin. Let's go forward. How do we do that? So there's a variety of tools that we use. Now we're not here to necessarily push any one of these to a customer. These are all just a variety of tools. They do different things. So we put together a tool set and a solution based on customers' needs. You may use a few of these. You may use several of these, and we put these together to basically build an experience and build a solution. You got to -- if you want people to adopt and use a technology like this, you want people to use digital tools, you have to create something that's meaningful to them and you have to create something that's actually beneficial. So to get someone to go from traditional methods to a digital method or a more -- bringing them to current times from the older way of doing things, you've got to give them a reason to do it. So you want to build an experience worth having. It's got -- the way we look at it. You want to do something that benefits them as well as it benefits the company. You have people out here to get to change the way they've been doing work for some times for years. We have companies we work with the people who have been on the job for 20 and 30 years. So you've got to convince them that this is going to be a better way of doing it. So we use a lot of variety of tools to help accomplish that. So the company itself gets a lot of benefit out of the virtual model, the digital twins, but it also provides a benefit to the end users. And so it's a win for everybody. We show you example of this. The example, I'm going to show a video and that video will kind of give you a better idea, like what are we talking about here really? And if you're not real familiar with the digital twins or the digital solutions, then we'll take a look at this video, I'll kind of walk you through some of this as we're going through it and explain some of this. And throughout this whole entire presentation, if you do have questions, put them into Q&A, and we will address those as we get further along as well. Okay. So what we're looking at here, this is basically just a factory line where we're actually showing a variety of stages of this line. Now this shows only the equipment and the line itself. However, I mean, you could create an entire building around it, you could actually create a representation of the entire manufacturing facility. That way, it has context around of where you are in the building, what's going on around you, maybe clearances between machines or where you've got to walk and step throughout a building, a variety of ways you can handle this. This one is actually just taking the 3D, and it's going through and showing how a line works. And all of these have to be in sync from one stage to the other. So this is actually obviously using 3D, the CAD model. We brought the CAD data in. And we're putting in information to basically show the animation of parts and tools working together in sync and moving along the line as these pieces move forward, you see the robotic arms. There's something being done at each stage. Now this is information that's being emulated. Basically, this doesn't exist yet, and we're showing what will happen, what could happen. And basically, this gives people the ability to make adjustments. You can adjust the speed of this line, you can adjust how things are moving along through the process because they're all got to work together. If one of them gets ahead, it's going to cause a bottleneck. If one of the drags behind, it's going to cause a bottleneck on the other side. So these all have to be aligned pretty accurately. And so by using this type of solution, we can do a lot of this before this line is actually built in the factory or a manufacturing floor. Now you could take this to the other side as well, where -- and we'll see an example as we move forward. If we actually have this already in existence, we could create a digital twin, didn't look real similar to this. And then we can also use that to troubleshoot and see what's going on if there's an issue. I'll show you an example of another scenario in a moment as we move forward, or you could even take an example like this, once you have this built, you can even copy this, and you could create a -- basically a model that you could monitor what's going on besides just troubleshooting and trying to improve throughput and things like that. You can actually feed IoT data back to here and sensor data and basically monitor how things are going, what's the speed, what's the temperatures look like in some of these areas, what's going on basically and align it if there is a problem. There's a -- one of the areas get stuck or maybe the stoppage somewhere in this line. We got to identify quickly where it's at. We can send maintenance directly to where they need to go and maybe even tell them what the problem is or how to fix it, depending on the historical data that we could also track. So there is a variety of ways to use these but then leverage similar models for downstream use cases. All right. what does that look like? What's the architecture look like? We're not going to spend a lot of time on this because we've only got an hour here today. But basically, what you're going to do is you take the 3D model, in this case, Creo data, we're going to push it through to emulate 3D, where we designed a lot of this overall look and feel, the interactivity, the animation, and we're thinking logic, we're putting logic in there. And we're basically taking a lot of these components and pushing them out to the end user, be that emulating robotic arms, getting that human interface going where we can control things through a digital twin. AR, VR, down here at the bottom with a headset where we can actually visualize with the headset on. And this is just a sample. This would vary dependent on the use case and the customer, but it kind of gives you an idea of how things come together. Another little question. Are you taking advantage of virtual commissioning currently? Are we still using traditional methods? Has your company and your organization kind of started that digital transformation? Are you using virtual commissioning? All right. One -- 50-50 so far. That's about right, it's about what we see, kind of -- kind of -- no, now we're skewing a little bit. All right, wow, all right. So a lot of companies still do things the traditional way, but there's a lot of changes happening in the last few years and still a lot more to come where companies are moving to that digital way of doing things over traditional. I think we'll see a lot more of that in the near future. All right. So the example I was referring to a minute ago. Here's a -- we want to show you another video. Here's our controls engineer, a persona. So we have a problem that we were asked to address. There's a beverage manufacturer, a customer we have that basically, they're having a bottleneck, a little bit of a yoyo effect. The two different lines kind of like there's a back and forth between the two. One gets faster than the other, one gets delayed, the other one gets a little bit faster. So they spent about 6 months troubleshooting and trying to figure out the balance in there. And they're having a hard time with that. So they asked us to create a digital twin. Let me just go ahead and start the video. So we created the digital twin. It basically shows their production line where you've got cases going down one belt, and you've got bottles coming down another belt. You can see how some of them are moving a little bit faster than the other, but you got to put, I don't know, how many bottles in at least 12 bottles or so in each case. So the bottle line is moving a little bit faster than the boxes. But this line already exist, as I mentioned, and they're trying to figure out what do I do? How do I make a change that actually can kind of bring it back in sync and correct this bottleneck issue and yoyo effect we have going on. So we put together this model, and this allows them to play with different metrics because we do -- the last thing we want to do is bring down the production line or we don't want to stop it and we don't want to slow it down. We got to keep our throughput going, but we want to troubleshoot and figure out what's going on. So this digital twin allows us to put different metrics in and simulate if I slow down one line or if I speed up the other, how much do I need to adjust each one to find that balance and stop this bottleneck and kind of yoyo back and forth effect of one line being ahead behind the other one. So it took us about 2 weeks to kind of do some studies and put it all together and figure out what the numbers should be. And then by applying this to their current line, Basically, this type of trial and error through a digital version was allowing us to get, in this case, and others that followed, about a 10x faster problem to solution scenario. We were able to troubleshoot and find a solution to a problem 10x faster than working with the actual physical line. So we're going to move on to the next slide and here's another use case kind of the opposite of that. So what we have here is virtual commissioning. We're going to go and take a look at the video and see how these things come together. There's kind of like the other video was showing, but this one doesn't exist yet. We're going to build a line. We're going to build a production line. And this one, we have some wet goods and dry goods that have to be combined and bottled and they've got to be put in the right amount at the right time and then they've got to be set down the line to a robotic arm, which makes them up and place them where they need to be. This line, as mentioned, doesn't exist. So we're using emulation to figure out, what's the right amount of speed? What's the right amount of volume to put into each container, what's the right combination of all the different effects that need to happen come together here to make this production line run smoothly. So if we had to do this in the traditional way, we're going to actually have to build this first. We're going to have to run through some samples. We're going to have to kind of go through a trial and error type of process and figure out what the right combination is. Now while a lot of this is moving forward and perhaps being put together, we have a digital model here, the digital twin. We're able to put a lot of these metrics into the digital twin and figure a lot of this out while the assembly of the physical production line is being built. So that when it's completed, we don't have to start it up and do as many tests as we would have traditionally. We can actually figure a lot of this out ahead of time and what we've shown in here to doing this type of method about a 40% faster rate of getting that line up and going. As we mentioned in the very beginning, the big demand on companies to get product to market faster. Well, we got a 40% reduction in time it takes you to get a line up and going from building that line to getting something useful out of it, it's a huge improvement. So the virtual commissioning can be very beneficial to you getting product out the door faster. One more question. We've got a couple of these through here and maybe one or two more. Anybody out there already using virtual commissioning? Yes. No. Does anybody see this being used today in their current production line? Wow, got one. Very cool. So these are a very beneficial way to just get ahead of things. As new products come about, it's a great way to just help you get to market tremendous amount of time faster than traditional methods. All right. Move along. All right. Now let me get to another example, here's our equipment operator. You've got -- this is actually a -- it's a digital version, a belt line for like an airport where we've got luggage coming through, and we're sorting luggage. And you'll see this in a little bit different way of interacting with it. Play the video and then we'll kind of go through it together. It's kind of a virtual environment like an AR type environment. You can see we have someone pointing, clicking on things. And we're using an iPad here, and we can see this would be a real environment out here that they're looking at, and they're able to control things. You see that we have green doors, we have luggage going down the line. You see that we have green on the iPad screen. As they're clicking, you see on the left-hand side, it's sending information back to the system telling them whether it's open, whether it's closed and what -- and what's going on as they're making decisions on the iPad and controlling things out here on the actual physical line, it's logging on the back end, as you see on the left-hand side, it's what we choose our choice that we hear in iPad and what we're turning on and off out here is logging in here, date and time stamp, what happened when and it's just tracking the information as things are happening in real time. Perhaps there's a backlog in the luggage or luggage got to go one direction or the other. The operator can actually use a virtual version on the iPad to control and open and close gates to send luggage to way it needs to go down the line to get it where it needs to be. So that kind of leads us into the next section of if I've got a little hand controllers I've reached out pointing in something digitally, and I'm using the iPad to control things, how does that really work? Well, there's a way -- there's a variety of ways to do that. This is where we get into XR, an extended reality. And this could be used in a variety of ways. We're taking data, real data, information, we're tying it together with digital assets and functionality, and then we're delivering it to the end user through a variety of ways, depending on the use case, it could be a virtual reality headset, VR headset. We are totally immersed in an environment and totally digital, at the headset on or we're going to have a mixed reality, which is kind of like your HoloLens, Microsoft product or we have a new Apple version coming out here, and I guess, next year, I think, the Apple Vision, where you'll be able to mix real world and 3D together. But you don't have to have the headset necessarily. I mean, depending on the environment you build, you could do it that way or we can just use simply a tablet, iPad, as some of these things can be run in a desktop if you need it to be. So there's a variety of ways to interact with the data. These were a lot of different use cases of extended reality. Some of the ones that we focus mainly on, you'll see that here at the bottom up highlighted in red, simulations, the facility and process twin, we spoke about that a little bit, maintenance and repair. That's one we'll see here in a minute as we go forward. Maintenance and repair is a big use case for extended reality, augmented reality. Being able to look at something, but then with a headset on, you can bring in digital information into that headset and show somebody what to do, give us some instructions. It can even be training like testing. They do something right or wrong, the pass or fail, depending on what they did. So variety of use cases, guided to work construction, show someone beginning to end, how to go through a process and complete it. I think it's the last question. Are you seeing a mandate for XR? We see with a lot of companies out there, automotive, aerospace, different companies that are kind of requiring XR and AR in the training space specifically and the manufacturing. It seems to be more and more in demand these days because there's a lot of benefits to it. We'll talk about some of those as we go forward. Pretty well balanced right now, it looks like. Thank you for the input. All right, split down the middle this day and I am going to add on to the last question. If you are seeing a mandate, we had about half of you here. What are you seeing those in? Training, guided work construction, maintenance, line operation or perhaps predictive maintenance and visualization. Oh, wow, look at that. All right. It's kind of in line with what we're seeing as well. Training is kind of leading the use cases right now, a lot of use cases in the training area. All right. So on the benefits. We'll kind of go through as quickly here as we move forward. The benefits of XR. You get a 90% improved first-time success rate, so many to go through all these in detail, but some of the important ones are increased productivity and get it right the first time, basically, less mistakes. And then a key one in here. 60% less time to create training materials, create them pretty quick and as well as creating them quicker. It also is a huge reduction in the training time, as we mentioned earlier, the amount of time it takes to get someone up to speed using XR versus traditional methods of where classroom environment or hands -- or not certain hand on -- shadowing and hands on. You got to have to watch somebody, you're slowing somebody. If you have to watch and shadow somebody, you're slowing that person down and you're not really productive yourself because you're just watching. And then if someone say out there we're going about automotive on the line, putting something together, if you have to shadow someone and then they have to turn around and shadow you to make sure you're doing it right, that's a lengthy process, where you're delaying the person that does know what they're doing and slowing them down when they could be getting more work done. So by using an XR experience, you get hands-on experience with the headset or through the tablet, you're getting to see how everything works virtually and then you can go out if you still need to shadow, still need to have someone say that you can't do it. You don't bother them and hold them up from their work for near as long as perhaps you would in the past. There's the amount of -- as we said earlier, about 50% -- 50% to 75% reduction in the amount of time it takes someone to get up to speed by using an immersive experience. And here's an example of that. You'll see here we have someone with the headset on, and they are going through a virtual experience to kind of learn and get up to speed on something. Click to start this video. And this is our line operator. If you had to put someone on the line and teach them how to do something, here's how it's going to work. I was just explaining earlier, putting their head set on going through an experience, you can see the headset, he's got 2 hand controllers. He's moving a part, and it's a 3D part. This is all working with 3D data to simulate. So this is what he would be doing once this person is actually trained up and put out on the production line. But here, they go through and he can go through here as many times as they need to do stop and start, restart from the beginning. And kind of get some experience to put things together before they're working with the real parts. You can make mistakes here that are a lot more cost-effective because that don't cost you anything. Mistakes on your production line can get pretty expensive. If someone put something together wrong, maybe drills a whole in the wrong place, we start to have a lot of costs involved in that. So this way, they can understand and get up to speed like we said 50% faster. And this is just kind of them walking through the process step by step. You can also integrate some test components in here. Did they pass, did they fail? Do they understand what they're doing. We can track how many times they had to go through and do something if they had to do it 3 or 4 or 5 times. Still can move around here, but that's just going to give you an idea of the completely virtual experience. And next, we're going to go through a little bit different scenario. Let's say you don't have CAD data. Maybe you have something that is already in existence. And there's not CAD data or there's just not enough of it or whatever the case may be, maybe you don't want to capture it, but it already exists. We talked about the tribal knowledge already here. Somebody is out here has done this process, knows it inside and out. Now maybe we want to capture what they know. So let's play this one. We can use expert capture with Vuforia to go through, and we can actually set this up, put some names in here and some different components, scan a bar code, this is actual engine. And then say, we went through and someone showing us how to go through and create a -- or go through a procedure, certain steps we've got to take, we can follow them around. We can actually use the same headset that we used for viewing. We can use that headset with the camera in the -- camera in the goggles to capture this. We go through, we go through all the steps. We follow the person around that's showing us how to do this the first time, and we capture all these steps. And then we take it into Vuforia and we add what you see, the UI here, we got the little notes and we've got the buttons, the pass, fail, we got highlights out here on the motor. You see that the person did something now you get a green check box out here. There's a circle showing them where to focus. We see a red x. They didn't address this area. We need to do something there. Now we put something there. It tracks us with the cameras on the headset. It knows that we did something and see something different. We get a green check. We pass or we fail. So we go through and capture all of this with the headset. And as I said, we go through an add the enhancement in here, add what needs to happen in each step. And we're walking through and basically seeing what they need to know. We can track this. You can see -- keep statistics on the back end. How did the person do? How many times did it take them to go through and do it right. Or maybe it's a compliance thing. Maybe it's not even about training as much as it is this is what we're doing, and we're going through this procedure because if something happens later with this engine and there's a safety concern or something happened, we want to go through and double check that they actually went through all the correct procedure and checked off -- you see all the check boxes happening here. Did they go through every single step. And did they pass every single step and everything got done correctly. So that could help with liability and components to show that, yes, this is when this particular VIN model, or VIN number was created. And this is all the steps we went through, there's proof of it, and it shows that we've done correctly. There are a variety of ways you could use this type of technology. Now there's another example of a little bit different. This is Vuforia Studio. So we talked about bringing CAD models in and create an experience, a total virtual experience. And then we talked about bringing and this going in and capturing it from something that already exists, where we don't have a CAD model. So we can also combine the two together and create a total separate experience of going through and we'll show you here, let's get this video started. So you see a vehicle. This is kind of like what we just had a minute ago, we're going through and we're capturing the actual physical vehicle. We're going to scan a bar code and then we're going to go through the UI here. We create this UI and before a studio. Whatever information we want to put in there, they can check boxes and different step-by-step things they need to do. We have some warning labels that pop up. This is actually a physical vehicle that we've gone into or going to, and captured with the camera, adding the UI, but then we're going to see in just a second. We're going to see some other elements come in, where we're starting to highlight. We've got a tire. There is an alert on the tire. We can tie this to the back end, the database to give us information about that tire or that wheel, what's going on. Why is there an alert. There's information we need to know about that. That's popping up in our headset. We can see what's underneath the hood here. That's part of our drivetrain. We can get information about it. So we're starting to put 3D elements into the actual physical model and tie it in the together for augmented reality use case. And you'll see here in a second. We've got more check list we're going through. We got a warning in there, a little yellow icon. And now we've got some more information. We're highlighting a certain part. We're going -- we got some warnings that are coming up. And now we have 3D and animation in here. That looked like it was an actual part of the vehicle, but this is actually 3D we've combined in here to show animated instructions on exactly what you need to do for this component. So quite a variety of ways to interact with the model. And it's all just different use cases, different scenarios as to what we want the end user to take away from this. Are they learning something? Or this could be -- in addition to training this could be service and support. This could be someone out in the field. This is a military looking vehicle. This could be a vehicle that's somewhere in the world that's not by service facility, is not anywhere that it could be easily worked on in a shop. So maybe we have a headset that this tells us these are all the maintenance scenarios we need to go through. These are all the checkpoint for safety, make sure all these things are completed before we put this vehicle out in the field, and we can do remote maintenance, remote service. Something breaks on it, we can go through and that we can have procedures for how to fix things that are broken, variety of use cases overall. All right. We move to the next slide. So basically, we're kind of getting towards the end of time here, and I want to leave some time for questions in the end. And we have -- basically, we've gone through digital twins, extended reality, it's kind of a high level and kind of differences between them. So you can use the digital twin for virtual commissioning. You can use it to troubleshoot and train after a facility or whatever the real object is, it's simulating. You can use that for a variety of use cases. And we can have users through extended reality is in headsets using tablets, using whatever in deliverable, the method we want to use for them to experience this information. And overall, we see it's pretty large savings, reduction in time it takes to get up to speed, reduction in time it takes to get a line up and going, increase time to market. There's endless use cases and endless benefit and savings through utilizing digital twins and XR capabilities. So I'm going to wrap up with that and just give a few minutes to see if there's any questions out there, see if I can answer anything for anyone. Perhaps -- okay, anyone has a question?

Yes. Thanks, Barry, so much for that presentation. And we do have a couple of questions that have come in. [Operator Instructions] so the first question that has come in. I was asking around whether this solution can be installed on-premise. I know you talked a little bit about it being in the cloud, but is there an on-prem option here as well?

There it is, depending on the use case. Vuforia typically -- I mean, as I mentioned on the slide that had different options, different technologies we use, some of them are versus -- some of the Vuforia products are cloud-based, but some of them are -- some of these solutions can be completely customized solutions to your use case, which can run locally and on-premise. So I would say it really depends on the use case and whether or not you have restrictions because some companies have restrictions on -- for security reasons. They don't want their information to go outside of the company. Their IP. So yes, we can address that, just depending on the customers' needs. There are certain ways we could go about creating a solution for either one.

That's right. Okay. Another question that came in is, is there a learning curve to using the AR devices. I know you showed some examples of those. So I guess the question is, is there a learning curve? What does that learning curve look like?

There definitely is a learning curve to using the headsets. As we said, that you could use tablets, you could use iPads or you can use the headsets. So it's just -- it's not difficult. There's a learning curve mainly because it's -- you've got to reach out -- you've got the headset, Oh, you see things in front of you. You've got to reach out, you've got to touch them. Sometimes you can use your fingers to squeeze. Sometimes you have to poke. So I would say that if you have never used it before, it's a little bit -- I wouldn't necessarily say awkward, but it's just different to use it. But once you've got the hang of it, it doesn't take long to get comfortable with it and use it. You do want to make sure that you kind of enter in a space where you can reach out and not hit things as you got the headset on, you may -- if you're in a VR type environment and totally immersive, you're looking at an immersive like world, 3D world, where you're not seeing what's around you, so you could hit things if you're not careful. But in the augmented reality scenario, you actually see what's around you as well as the 3D that you're interlining with the real world. So yes, a little bit of a learning curve. But overall, it's relatively easy. And it kind of goes back to the -- what we were talking about earlier, user experiences. We have -- as you create these experiences, you got to think of the end user and keep them in mind as how they're going to interact with that data. So as an author or creator of the content, you want to think about how your end user is going to interact with it and make it just easier for them as possible. So it's kind of a 2-sided thing. The content creator wants to make it easier for the end user and end user needs to be able to -- these are not to make life harder for them because if you want user adoption throughout your company, you need to make sure that people aren't going to come back and say, "Well, I like the old way better, it was easier." So yes, they have to be comfortable in using it as well.

Definitely, all about advancing the workforce. So that's what we're here to help make it easier for them. It's a good point. No, go ahead.

I was going to say, overall, I mean, it does just create a better experience for the company as well as the end user because sometimes the traditional methods may be time consuming or just repetitive and things like that. Well, with these new -- moving into more of a digital method and virtual method of doing these things, you can automate some of the mundane task or some of the repetitious tasks that are out there. So that actually makes some people's role easier because a lot of things that need to be done, they can start to introduce AI and different technologies out there to help them speed their job up or free them up to do other things that they didn't have to waste time doing -- just time-consuming task. Automation will help out quite a bit. I see we have one question in the chat here.

So we do have another question that came in. Is there a way to record data from PLCs and then use the digital twin to replay events for troubleshooting?

All right. Record data. So this for clarification of that record data perhaps from the camera on the headset or record the actual. If we're interacting within a digital twin say on a computer, recording your actions in there?

I think he is asking about the data from the PLCs themselves.

From PLCs. I'm sorry, I need glasses, I read that x like for pictures. I misread that. Yes, you can record and replay. So you can save, you can do that. That is definitely possible.

I know we are just about at time. So we are going to wrap up the webinar there. So thank you, everyone, for attending today's webinar. At the conclusion of this webinar, a brief survey window will pop up in an effort for us to keep improving the topics that we're sharing and the value that we provide to you, we kindly ask for your participation in that survey. And if you would like to speak to someone at Rockwell for more information on the topic that you learned about today, you can also make that request in your webinar survey as well. Thank you so much, Barry and Renee, and we look forward to seeing everyone at our next event. Thanks, everyone. Have a great day.

Thank you. Have a good day, everyone.