1. Industry in Transition FB note January 7, 2015
The “Information Driven Enterprise” for the “ConnectedWorld”
What does it mean to be information-driven ? New information technologies such as Internet of Things,
predictive analytics, wireless, collaborative manufacturing, cloud computing, mobility, and 3D visualization
have the potential to disrupt and radically change the way companies do business. An information-driven
enterprise leverages these new technology solutions to achieve agility and sustain a competitive edge. An
information-driven strategy can better position our companies to succeed and determine how we can best
approach critical technology decisions.
IndustrialInternetof Thingssolutions“IIoT”
The transformation of the industrial sector has begun. Information-driven systems based on increased
connectivity, real-time data, advanced analytics, and execution software can deliver better performance and
enhance competitive advantage, not only in the plant, but across an industrial organization’s supply chain
and throughout theirs value network. Many suppliers are developing and deploying new Industrial Internet of
Things (IIoT) solutions. Thanks to “ intelligent, connected “ production assets and new Cyber Physical
Service models, we can improve performance, productions Time Up reducing operating costs, and
increasing reliability.
However, we still have a long way to go. Large portions of
industry have yet to embrace these new solutions. Industry
organizations, some newly re-formed, have begun proof of
concept and test bed projects. Standards and best
practices are slowly emerging from the innovative stew of
technologies, products, services, and ideas that
characterize the IIoT today. Many thought leaders forecast
dramatic growth in the number of connected industrial
things in the coming years.
The “Industrial Internet of Things” serves up data from
connected devices and systems in the plant floors or in the
field and then processes those data using sophisticated
new analytics and execution software systems. This sets
the stage for operational improvements and for
implementing new and innovative business
processes. Smart connected production platforms can be
more flexible and perform better than their unconnected
machine predecessors. However, achieving the
transformational potential of the IIoT is not as simple as deploying a “smart” phone. Getting significant
benefits from IIoT requires a collection of software, hardware, communications, and networking technologies,
working in concert.
That implies :
Know more about all key components of IIoT including advanced platform’ intelligence, secure
remote communications, local diagnostics and control, public or private application platforms in the
cloud, remote asset monitoring, predictive analytics, and all kinds of “ intelligent services “
Discover what leading companies are doing to implement successful connected shop-floor programs
in their organizations and overcome key cultural, organizational, and technological hurdles
Get an update on IIoT strategies and solutions
Get valuable research shown what works and what doesn’t
Share challenges, ideas, and strategies with peers and gain from our experience with similar issues
2. Information DrivenProjects,Operations,and Assets:
Intelligence for ALM Excellence
Balancing the objectives of operations for on-time delivery, volume, and quality with those of maintenance for
asset availability, longevity, and reliability requires sharing information and harmonizing these objectives with
the goals of the enterprise. New information technologies provide functionality to intensify cross-functional
collaboration, business process improvements, and higher levels of performance to achieve asset lifecycle
management (ALM) excellence.
The new technologies driving the next wave of advances include
Internet of Things (IoT), social, analytics, and 3D visualization where
huge volumes of “Big Data” are transformed into actionable
information. These technologies have the potential to disrupt and
radically alter the way companies operate in the future. Some
manufacturers and utilities have begun adopting these technologies,
particularly mobility and cloud. Those attending this ALM track will
learn what was successful, and gain insights into what is next.
Enabled by the wide distribution of IP networks, IIoT and modern
Machine-to-Machine (M2M) communication now go well beyond
one-to-one connections, and transform into a network model with
data exchange among devices and Companies’ functions. The
ability to interact with production’ equipment, like a variety of
production’ platforms on a single site, or widely dispersed, presents
new opportunities for global companies, utilities, and equipment
suppliers. These networks provide a “ new connected ecosystem ” of OEM, original equipment
manufacturers, and the End-Users.
The objective is to make fact-based decisions using reliable information that aligns with the organization’s
objectives. An ALM strategy helps ensure the best possible returns on intensive capital investments over the
lifecycle of the asset; involving operations, maintenance and industrial IT.
The New Value Proposition for Collaborative AutomationSystems
We have observed that many corporate executives, plant managers, and even some automation
professionals have come to think of their plant automation systems as commodity products. However, the
history indicates that, in fact, many of the latest IT-enabled plant systems incorporate new technologies and
provide important new capabilities that can contribute real business value ...” if utilized properly “. Indeed, as
we predicted when we developed our AAP, advanced assembly platform, model, more than a decade ago,
the range of technologies that encompass “plant automation systems” (DCS, PAC, PLC, field
instrumentation, etc.) have merged and evolved to become an “ automation platform ” to drive strategic
business performance : CPAS, Collaborative
Process Automation Systems.
These new capabilities span a variety of
technologies found at virtually all levels of the
automation system. These include :
Seamless integration of Manufacturing
Operations Management, MOM.
Smart, configurable I/O
Server virtualization
Smarter field devices
Integrated control and safety systems
Intelligent remote operations management
Cloud-enabled supplier services
3. These innovative approaches often minimize installation and sustainment costs while simplifying system
commissioning and upgrades. The new capabilities provide increased flexibility to accommodate plant
and/or process modifications at any stage in the lifecycle. These characteristics reduce cost and time-to-
value. They can also increase business agility by making it easier to modify process operations as needed
to take advantage of feedstock’ opportunity and respond faster to new market shape and regulatory
requirements.
Since older legacy systems were inherently less integrated above and below, collectively they were more
difficult to manage. The new “ multi-level “ integrated automation systems provide an opportunity to
reevaluate the organization managing the lifecycle of these systems. A modern approach take into account
the increases in functionality available by matching the organization and people skillsets with the
technology. The resulting organizations can more easily cross traditional boundaries of automation,
engineering, operations, and IT to enable industrial enterprises to move to a more predictive style of
operations and maintenance to reduce costs, minimize downtime, enhance safety and, not least,
environmental tasks.
This lack of understanding about the business value of modern automation systems can make it challenging
for Customer to justify investments in new automation systems. In some cases, this is even true when the
current installed systems have reached the end of their useful service lives and become difficult to maintain,
impossible to upgrade, and increasingly breakable and unreliable; posing a threat to both production and
business safety. From the financial stand point, the value of the production obtained from aged automation
assets are over-weighted by a full taxation effect no more moderated by investment’ depreciation.
Multiple cross-functions sessions are needed to explore some of the key value-creating capabilities of
today’s automation systems.
Workforce Developmentand TrainingSolutions
In today’s business environment, companies are pushing
their factories to the limits. Global competition demands
more: more flexibility, more productivity, and more
accuracy.
At the same time, industrial processes and technology are
becoming increasingly more complex. Existing plants are
staffed largely with older, experienced workers; while
greenfield sites in many areas cannot find the skilled
workers they require to build, operate, and maintain their
facilities.
While older workers need to be retrained on the latest
technologies, new employees who are often already familiar
with the new technologies need to be trained on existing
technologies and work processes.
All need a full complement of the skills required to maintain
productivity and business safety across the build, operate,
and maintain phases of a plant, factory, or other manufacturing asset.
Build: Factories and Plants require the technical skills of multiple engineering disciplines.
Historically many owner/operators looked to universities to provide the pool of skilled engineers to fill
their needs. The demand today and the shortage anticipated in the very near future require some
4. new and creative thinking. While universities will certainly continue to play an important role, they no
longer can be the only source.
Industrial organizations and manufacturer should work together on strategic visions from the field to
help fill the gap with common programs and other approaches.
Operate: Owner and operators spent the last several decades making their facilities smarter.
Many of the manually performed operator actions of the past are now fully automated. Many plants
today simply cannot make the quantity, quality, or variety of products within the market time desired
without these automated processes. However, the operator is not going away.
Today’s operators need a better understanding of how the plant and processes work so they can
make better decisions, perform startups and shutdowns quickly and safely, and respond more
effectively to upset situations.
With the aging workforce, many experienced workers getting ready to retire, companies need to
ensure that they can continue to operate their plants in a safe, reliable, and profitable
manner. Today, companies are using a variety of training approaches including Operator Training
Simulators (OTS), computer-based training (CBT), mentor-based training, gaming, 2D and 3D
virtualization, and other methods to train the “ new digital generation “ of workers.
Maintain: Many plants and factories today continue to operate with the older production systems and
other technology already in place.
Experienced maintenance personnel have the training and skills to continue to maintain these
systems, often far beyond their intended lifecycles.
New workers entering the workforce are expecting to find technologies they are already familiar with:
smart phones, tablet computers, 3D graphics, interactive active displays, and so on.
The challenge for many owner/operators is to determine how to continue to keep their systems
operating at peak performance while managing the transition from retiring workers to the new
generation.
This task will address skills development requirements and effective training approaches that can
apply to the full span of employees in today’s industrial organizations, from new workers to
experienced, senior-level engineering, operations, and maintenance employees.
5. RE: ferdinando bettinelli wants you to see this
Malcolm Goodwin Senior Project Manager
January 14, 2015 3:20 PM
Hello Ferdy
I have read the slides would agree that Internet access / data sharingand management could be an advantageto a lot
of industrial companies. Thekey to success ismaintainingaccessibility to the system whilstmaintainingdata security
and traceability. I would see that this could be of interest to automotive and Pharma companies in particular to have
realtime data from their contractsuppliers manufacturingprocesses and equipment. This would aid real visibility on
supplier targets being met to fulfil orders.
Hope this gives some help with your progression on this topic.
Kind Regards
Malcolm
Industry in Transition:The InformationDrivenEnterprise for the ConnectedWorld
February 9-12, 2015 - Orlando,Florida
NewinformationtechnologiessuchasInternetof Things,predictive analytics,wireless,additive
manufacturing,cloudcomputing,mobility,and3D visualizationare beginningtodisruptandradically
change the way industrial enterprisesdobusiness. Departingfromthe characteristicindustry
conservatism,leadingcompaniesnowrecognize thattheymustembrace new informationandautomation
technologiestomaintainacompetitiveedge.
The businessenvironmentisincreasinglydynamicandvolatile. New businessmodelssuchas“Industry
4.0”, “Industrial Internet”,“ConnectedManufacturing”,and“ConnectedAssetValue Networks”are
emerging. Inadditiontoa hostof potentiallydisruptive technologiesenteringthe marketplace,companies
alsoface rapidchangesingovernmentregulations,energyandraw materialsavailability,markets,and
competition. Bydeployingleadingedge technologies,today’scompaniescanthrive.
Informationandautomationtechnologieswill playagreaterrole inthe productionprocessthaninthe
past. The target isto increase productivity,flexibility,andresponsivenessbyautomatingall industrial
processesthatdon’trequire humaninterventionandempoweringhumanswiththe timely,in-context
informationtheyneedtoimprove performance onthe plantorfactory floorandmanage the business.
Processplantswithcontinuousorhybridmanufacturingprocesseswill leverage connectedassets,together
withthird-partyservices,toimprove uptimeandassetperformance. Discrete manufacturerswillbe able
to produce customizedproductsquickly,cost-effectively,andinsmall quantities. Soon,smart,cyber-
physical componentsincorporatingembeddedsystemswill be able toactivelytell machineswhat
procedurestoexecute next. Backgroundprocesseswill triggeractionstoensure thatindividual component
parts are re-orderedintime andanypotential deviationsare addressedandcommunicatedtomanagers,
executives,orcustomersasappropriate.
Leadingindustrial enterpriseswilltake advantage of enhancedproductconnectivitytooffernew value-
addedservicestocustomers,andevenchange businessmodelsfrom‘sellingandsupportingproducts’to
supplyingthe value deliveredbyproductsasa service tousers.
6. What strategiescanindustrial enterprisesadopttohelppositionthemtotake advantage of the latest
roundof technologychangeswhile prioritizingtheirinvestmentswisely ? Joinusat the NineteenthAnnual
IndustryForumto learnfromyour peershow aninformation-drivenstrategycanbetterpositionyouto
succeedanddetermine howyoucanbestapproachcritical technologydecisions.