Finalist Allie Systems Pitches at Startup Battlefield | TechCrunch Disrupt 2023

We have two more the next one up is Coming to you from Mexico City Mexico It's Ali systems presenting for Alley Systems is Alex Sandoval give a big Round of applause [Applause] Hi I'm Alex CEO of Valley systems we Make machines speak and translate them Into actions on the factory floor [Music] Manufacturing is a broken system Strain Supply chains inefficiencies and Downtime We've thrown robots and automation at The problem but downtime is costing us a 1.5 trillion dollar sinkhole It is urgent that we solve the Foundation of the real world economy now The time is now when supply chain is Rapidly changing Due to disruptions caused by the global Pandemic trade Wars It is urgent that we do this now The last few years have taught us and Exemplified the fragility of our supply Chains A war in Ukraine with over-index grain Production Can nearly costed us a historical food Crisis The same can be said for steel Semiconductors and copper who bear the Same problems it is costly and slow for Them to ramp up production

Emerging Markets the near Shoring is Becoming the Strategic pivot Emerging Markets are set to become the Next Global manufacturing powerhouses And the world's biggest economies in the Next 50 years As Latin America I feel very bullish About countries like Mexico and Latin America that are set to receive an 800 Billion dollar wave of production demand But even as near Shoring and reshoring Face Tailwinds the supply to meet demand Is going to be an uphill battle This is why we created Ali Ali is a Capex site infrastructure that connects That allows like manufacturers to turn Legacy operations into intelligent Factories We started with this Hardware device Sage camera please We call it the alley Gateway It has built-in code that supports the Most widely used industrial Communication protocols allowing us to Connect with over 90 percent of Industrial Machinery categories sensors And plcs it has built-in code processing Data where we're able to run machine Learning algorithms at a local level Enabling our clients to con for enabling Our clients for business continuity in The case of connectivity disruption or Even Force Major We install them in our clients

Sites it sits next to the machines and It's pulling in data points from Processes from machines and machine Health A single line can capture over 200 000 Data points Giving us unparalleled access to a Unique data set that has previously been Unused and lived in a silo With integrated Erp systems and Maintenance data Ali becomes the Factory's Central source of Truth and a Brain We take all of this data model it and Turn it into intelligent operations to Enable our software component Please move to demo One of our cement client loses 500 000 Every hour their oven is not in Production mode making them incredibly Sensitive to downtime we're tracking Every single one of their Machinery Machine learning algorithms detect Irregular activity and machine failure Here's what makes us different to all The other manufacturing software Solutions out there we don't stop at the Alerts because we take we because we're Able to track corrective action we're Able to give the factories the probable Root cause and the recommended course of Action Years and years of factory know-how now Gets to live on in a system

Democratizing information for all of the Operators in the factory In our efficiency model we're tracking Productivity availability quality and Cost We can detect if there's inconsistency In a specific mixture and if there's Product wastage in a specific station We'll tell you where it is why it Happened and what to do about it The beauty of our model is every single Action on the platform ultimately Improves our algorithms in very specific Segments creating Network effects that Benefit every single customer on our Platform Now we've thought really hard in an Industry where every second counts how Can we make decision maker even simpler And faster So we build an assistant that is trained With all of this data You can ask it anything about your Operation Let's demonstrate Ernie can you please ask it to compare Operational efficiency in the last 30 Days By station and by month We've asked it you're able to do root Causes analysis on downtime you can do Comparative analysis on efficiency Between productivity shifts We are the first of our kind to do

Generative AI for manufacturing This is to fill a vacuum in the labor Market for an aging population that Needs to quickly upskill on the digital Skills needed for smart Manufacturing There you go this would have taken two Weeks of data crunching To be able and now you can solve it in Seconds Back to back to presentation So imagine a world of alley enabled Factories running AI powered operations To enable Dynamic Supply chains to meet Rapidly changing market conditions We're proud to say that in 12 months we Have achieved seven figures of Revenue We have 400 million dollars being Monitored and trained on Ali in Foundational use cases with paying Customers in cement steel and food and Beverage you got to wrap it up we've We've proven ourselves in Latin America And we're ready to take on the world Thank you Very good Charles let's start with you You're still writing so like a waiter Um can you talk about what it takes to Turn on one of your customers Integration onboarding like what's that Process like so we first start with a Diagnosis we take in all of their data Put it to data cleansing and understand The efficiency opportunity that they Have adding value in the beginning at

The pre-sale level then we do a Diagnosis of the critical Machinery that Will add the most value the the Pareto The 20 that will add efficiency we will Install it and put our devices in a Device can take a few hours per set of Machines and then we will Train The Operators and get live and running the Process from sale to activation will Take around two months and are there any Are there can you cover all of the Devices in in their environment are There certain classes of things you Can't monitor an instrument or what's Great about our system is that we can Connect to Old machines that are Legacy Systems and also modern systems directly Connected to the plcs of those machines Thank you Yeah Um I'm curious about the why now besides The generative AI stuff Um what's motivating your customers to Engage with you right now and pay you Seven figures So Emerging Markets like companies like Mexico they're pressured uh one of the States where we have an office Monterrey Tesla has announced that it's coming Tada Foxconn the pressure is on to Digitize and able to defend themselves From newcomers and they need to do this Now if they want to capture the majority Of value that is going to be caused from

Reshoring and near Shoring And do they have internal Roi studies Around hey like you know we're losing so Much in waste and whether it's labor or Or uptime on our equipment Well surprisingly some some of our Clients don't even know how much they're Losing so when they talk to us we're Able to model data on our pre-existing Models and tell them where the Opportunity lies in terms of processes And Machinery some clients that already Do were able to provide generative eye For advanced analytics to make them not Reactive but actually proactive Great Matthew thank you manufacturing is Hard everywhere but it's really hard in Emerging Markets especially developing Ones that are getting a lot of influx New customers Um What's what enables you uniquely to Scale in that in that kind of Environment so I worked on Predictive Analytics for the turbine industry and Thermoelectric power plants uh being Able to work on predictive models to do Alarms Um then I spent 10 years I lived in Asia Europe the United States Building SAS Products for different companies like Rappy Oracle and Google Cloud I come From a manufacturing background third Generation and I joined all of our

Experience to be able to bring modern Day SAS into a legacy industry like Manufacturing Mark yeah Yeah I think if you can educate me a Little bit about the market like you Mentioned Tesla and Foxconn those are Folks that are already observing their Machines they're super sophisticated Factories yeah you talk about the Legacy Factories like in a country like Mexico Who are you selling to are you selling To the little factories To the Teslas yeah I don't think so but We are just to give you a step there's About three to four million uh factories In in Latin America less than 10 percent Of penetration in in software Mexico has Alone has six hundred thousand factors Out of those three and four million you Know how big are they like what's the You know what I'm saying the the larger Industrial conglomerates uh represent About 10 of of that market that's that's Who we are addressing so there's a long Tail of smaller factors no the large Industrial conglomerates on the other Side That's where that's who we are targeting Is that an answer your question Yeah I I think one more question one More one more sorry are those folks are You saying those folks are not currently Observing their machines yes

Okay that did it all right Dana yeah I Mean it's sort of along the same lines Of questioning which is I mean are you Are you really only working with Kind of older factories Is that what happens typically an Industrial conglomerate it will have a Mix they will have very modern machines Siemens 2023 equipment with legume Machinery and they're all living in the Same line the problem that automation Does not equal digitalization this Industrial conglomerate can have a very New machine with very Advanced sensors And controls but lives in a silo it's Not connected to other systems you can't Be able to draw correlations and Patterns and that's where we really come In So so I mean you know as ventric office We always want to be investing into like The growth markets right and so what What happens when everything's Modernized and working where do you fit In well we're a SAS model so if they Disconnect they're going to go back to Square one Yeah it's surprising that there's no you Know big Erp Oracle software that comes In and says I'm gonna happen Erp Software is try to do that they have Very limited capability as we all know Uh we all maybe there are but they're Terrible they're coming in okay yeah

Marissa Uh I think overall looking at the system There's a lot of different challenging Parts I guess I want to hear from you Which pieces are the most challenging in Terms of obviously you've got to get the Devices and the sensors into the Factories you've got to get the data all Together then you've got to analyze it Correct and my hunch is actually that The software part of it is on the easier Side and it's actually the deployment of The hardware and I would Factory wire it Up that actually might be where the Different ideas the biggest challenge We've encountered it's very easy for us To sell uh at the top of the chain when You go to the lowest stakeholder working In the facility uh convincing them to Adopt the software we've made the Experience as you can see from our Software super easy it looks like a b2c App so it actually makes their life Easier but we've all we're also Realigning incentives both from an Emotional and financial level so every Time an operator hits a productivity Target or a line we'll put in one of our Clients requested a rock song so we'll Play it for them to make them happy and Improve their Club quality of life but We'll also aligning efficiency targets So if a client is able to drive Incremental productivity those

Efficiency gains are then translated Back into the operator Could you talk about maybe one of your Multinational type customers and what They would pay you on a per Factory Basis based on number of machines I'll Give you I'll give you an example of one Of our zixing clients or one of the Largest ham producers in the region they Export to 45 countries they're a five Billion dollar in Revenue they have over 30 uh five facilities and we're Currently onboarded in four that's a That's a typical ICP in those four Facilities how many machines are you Hooked up to about 45 per line Hmm And what do they like about your product Uh productivity gains so we we are Averaging about 15 uh in increased Productivity from a line so if one of Your lines is producing 400 million Dollars which is like kind of the Average Um we're we're talking uh about more Than 40 million dollars in in from 40 to 50 million dollars in increased gains is That predictive is that improvements in Predictive maintenance or downtime Reduction we have we have three Avenues So one of them is downtime reduction the Other one is uh reduction in product Wastage so you can reduce costing costs And then you can also reduce maintenance

Costs By optimizing Optics through it through Analytics okay thank you very much give A round of applause [Applause]