Technology and Operations Strategy

Industrial Robotics
ABB v/s FANUC

TOS-1 Group-I
Deep Zanzrukia (1611218) | Vivek Sidhana (1611367) | Abhishek Ghosh (1611151)
Vijay Venkatesh (1611216) | Mohit Uikey (1611260) | Nikita Garg (1611189)
Industrial Robots in India
MATERIAL HANDLING

India ranks 13th globally for robot

usage

CAGR of 29% (2010-2014)

2126 robots installed (2014); LASER CUTTING

71% automotive industry

Avg. robot density 2:10000

(mfg); 58:10000 (automotive)
WELDING

FANUC market leader – 4700 units &

55% market value followed by ABB

ASSEMBLY LINE
 Industrial Robotics Value Chain
Component
Supply

R&D Manufacturing Systems

Marketing After Sales
IPR Integration

Robotics
Software

R&D includes System and software design, development and prototype testing
R&D is the major lever of value creation and IPR is crucial
Close collaboration with specialized component suppliers and software providers
Standard robots by themselves are not adequate for direct industrial use
Customization is carried out in the Systems Integration
After sales is a key differentiator in the Indian context as explained later
• World’s 1st Industrial robot maker and market leader now

• Strong R&D backbone : recent launches include SCARA robot - small robot with focus
on speed and accuracy. Also launched Yumi - human collaboration robot

• Best in the industry : Big customers demand ABB in their factories (e.g. Ford, BMW).
ABB has 71 customers in India

• Robots supplied to India are manufactured in China but cost advantage negated by high
import tariffs viz-a-viz Japan

• Several products are delivered in collaboration with other 3rd party (sourcing)

• ABB has a service intelligence unit (SIU) with remote monitoring of the robots, we are
able to predict the service need in advance
FANUC is positioned as the best choice for total cost of ownership

Only FANUC has total industrial offerings in India

Customers get hooked to automation

Industry growth projected with increasing safety norms (painting)

Service is the backbone of our India operations

Our after-sales service is considered best in the industry

Reaping benefits from repeat purchases.

Fastest response time in India (Network of 22 offices)

After-sales service comparison

FANUC provides lowest cost of ownership in the industry

Network of 22 offices (FANUC) vs 4 offices of ABB

Reputed and established players in the Industry

Spare-part availability in ABB, feature not present in FANUC

Feature Comparison
Feature ABB FANUC

Software Coder’s software – control and Customer’s software – ease

flexibility of learning and use

Organization Structure Multiple divisions – information 2 divisions (CNC &

flow low across Robotics) under Industrial –
salespeople trained across
divisions
Offering Standard product Whole integrated solution

Price Expensive Least Total Cost of

Ownership
Spare part availability Sells spare parts to customers Does not sell spare parts

Customers Industrial, Utility, Transportation Industrial

Benefits to Customer
ABB

• Availability of Spare parts

• Control and flexibility – more switches in software
• Consulting services to B2B customers using R&D centers

FANUC

• Least total cost of Ownership

• Ease of learning and use – fewer switches and knobs in software
• Whole solution – wide array of products + trained salesforce

Source of Competitive Advantage

R&D – 1st Industrial Robot, Consulting
ABB services

Use of technology – Remote monitoring

of robots to predict service needs

FANUC Organization structure Integrated solution – trained

salespeople

Upselling, cross selling and

maintenance – customer relationship
Collaborative Robots –
‘Co-bots’
• Designed to work with humans.
• Built-in force torque sensors that detect
collisions with worker.
• Automatically stops the robotic arm thus
preventing further damage.
• First entrant- Universal Robots (3500 robots,
60% market share)

ABB launched YUMI (2015)

• Compactness
• Precision
• High end camera part location
• State of the art motion control

FANUC launched CR-35 iA (2015)

• 35 Kg payload
• Bigger and 3 times stronger
• Integrated vision iRVision
• Soft gentle rubber cover
FIELD: The start of platform wars in automation?

FANUC Intelligent Edge Link & Drive (FIELD)

• FANUC's FIELD system is a new open-source platform that connects machine tools,
Robots, PLCs and sensors with other manufacturing plant enabling companies to utilize
the vast amount of data available. And manufacturing is set to become more intelligent
than ever before
 Industry & Value ABB FANUC
Chain World’s Industrial
1st
robot maker Best Choice - Total
CAGR – 29% Cost of Ownership
Market Leader – Strong R&D backbone
FANUC – SCARA Customers – Hooked to
Automation
Remote Monitoring of
ABB and FANUC plays robots
across the value chain
Focus on service –
Collaboration with Faster Response
other 3rd party

Competitive Disruption Platform War

Advantages Co-bots FIELD
ABB – R&D, Remote Working with humans Open Source Software
Monitoring, Flexibility Improved sensor Platform
in Programming technology
Connects all
FANUC – Integrated ABB Yumi – Dual Arm automation device
Solution, Cross-selling, with high precision
Ease of Operability
FANUC – Bigger & Move towards IoT
Stronger
THANK YOU