More Blockchain Synergies With IoT: Supply Chain Optimization

The more I learn about blockchain’s possible uses — this time for supply chains — the more convinced I am that it is absolutely essential to full development of the IoT’s potential.

I recently raved about blockchain’s potential to perhaps solve the IoT’s growing security and privacy challenges. Since then, I’ve discovered that it can also further streamline and optimize the supply chain, another step toward the precision that I think is such a hallmark of the IoT.

As I’ve written before, the ability to instantly share (something we could never do before) real-time data about your assembly line’s status, inventories, etc. with your supply chain can lead to unprecdented integration of the supply chain and factory, much of it on a M2M basis without any human intervention. It seems to me that the blockchain can be the perfect mechanism to bring about this synchronization.

A brief reminder that, paradoxically, it’s because blockchain entries (blocks) are shared, and distributed (vs. centralized) that it’s secure without using a trusted intermediary such as a bank, because no one participant can change an entry after it’s posted.

Complementing the IBM video I included in my last post on the subject, here’s one that I think succinctly summarizes blockchain’s benefits:

A recent LoadDelivered article detailed a number of the benefits from building your supply chain around blockchain. They paralleling the ones I mentioned in my prior post regarding its security benefits, of using blockchain to organize your supply chain (with some great links for more details):

  • “Recording the quantity and transfer of assets – like pallets, trailers, containers, etc. – as they move between supply chain nodes (Talking Logistics)
  • Tracking purchase orders, change orders, receipts, shipment notifications, or other trade-related documents
  • Assigning or verifying certifications or certain properties of physical products; for example determining if a food product is organic or fair trade (Provenance)
  • Linking physical goods to serial numbers, bar codes, digital tags like RFID, etc.
  • Sharing information about manufacturing process, assembly, delivery, and maintenance of products with suppliers and vendors.”

That kind of information, derived from real-time IoT sensor data, should be irresistible to companies compared to the relative inefficiency of today’s supply chain.

The article goes on to list a variety of benefits:

  • “Enhanced Transparency. Documenting a product’s journey across the supply chain reveals its true origin and touchpoints, which increases trust and helps eliminate the bias found in today’s opaque supply chains. Manufacturers can also reduce recalls by sharing logs with OEMs and regulators (Talking Logistics).
  • Greater Scalability. Virtually any number of participants, accessing from any number of touchpoints, is possible (Forbes).
  • Better Security. A shared, indelible ledger with codified rules could potentially eliminate the audits required by internal systems and processes (Spend Matters).
  • Increased Innovation. Opportunities abound to create new, specialized uses for the technology as a result of the decentralized architecture.”

Note that it the advantages aren’t all hard numbers, but also allowing marketing innovations, similar to the way the IoT allows companies to begin marketing their products as services because of real-time data from the products in the field. In the case of applying it to the supply chain (food products, for example), manufacturers could get a marketing advantage because they could offer objective, tamper-proof documentation of the product’s organic or non-GMO origins. Who would have thought that technology whose primary goal is increasing operating efficiency could have these other, creative benefits as well?

Applying  blockchain to the supply chain is getting serious attention, including a pilot program in the Port of Rotterdam, Europe’s largest.  IBM, Intel, Cisco and Accenture are among the blue-chip members of Hyperledger, a new open source Linux Foundation collaboration to further develop blockchain. Again, it’s the open source, decentralized aspect of blockchain that makes it so effective.

Logistics expert Adrian Gonzalez is perhaps the most bullish on blockchain’s potential to revolutionize supply chains:

“the peer-to-peer, decentralized architecture of blockchain has the potential to trigger a new wave of innovation in how supply chain applications are developed, deployed, and used….(becoming) the new operating system for Supply Chain Operating Networks

It’s also another reminder of the paradoxical wisdom of one of my IoT “Essential Truths,” that we must learn to ask “who else could share this information” rather than hoarding it as in the past. It is the very fact that blockchain data is shared that means it can’t be tampered with by a single actor.

What particularly intrigues me about widespread use of blockchain at the heart of companies’ operations and fueled by real-time data from IoT sensors and other devices is that it would ensure that privacy and security, which I otherwise fear would always be an afterthought, would instead be inextricably linked with achieving efficiency gains. That would make companies eager to embrace the blockchain, assuring their attention to privacy and security as part of the deal. That would be a definite win-win.

Blockchain must definitely be on your radar in 2017.

 

Lo and behold, right after I posted this, news that WalMart, the logistics savants, are testing blockchain for supply chain management!

 

IoT Intangibles: Increased Customer Loyalty

There are so many direct, quantifiable benefits of the IoT, such as increased quality (that 99.9988% quality rate at Siemens’s Amberg plant!) and precision, that we may forget there are also potential intangible benefits.

Most important of those is customer loyalty, brought about by dramatic shifts both in product designs and how they are marketed.

Much of this results from the IoT lifting the veil of Collective Blindness to which I’ve referred before: in particular, our prior inability to document how products were actually used once they left the loading dock. As I’ve speculated, that probably meant that manufacturers got deceptive information about how customers actually used products and their degree of satisfaction. The difficulty of getting feedback logically meant that those who most liked and most hated a product were over-represented: those who kinda liked it weren’t sufficiently motivated to take the extra steps to be heard.

Now, by contrast, product designers, marketers, and maintenance staffs can share (that critical verb from my Circular Company vision!) real-time data about how a product is actually operating in the field, often from a “digital twin” they can access right at their desks.

Why’s that important?

It can give them easy insights (especially if those different departments do access and discuss the data at the same time, each offering its own unique perspectives, on issues that will build customer loyalty:

  • what new features can we add that will keep them happy?
  • can we offer upgrades such as new operating software (such as the Tesla software that was automatically installed in every single car and avoided a recall) that will provide better customer experiences and keep the product fresh?
  • what possible maintenance problems can we spot in their earliest stages, so we can put “predictive maintenance” services into play at minimal cost and bother to the customer?

I got interested in this issue of product design and customer loyalty while consulting for IBM in the 9o’s, when it introduced the IBM PS 2E (for Energy & Environmental), a CES best-of-show winner in part because of its snap-together modular design. While today’s thin-profile-at-all-costs PC and laptop designs have made user-friendly upgrades a distant memory, one of the things that appealed to me about this design was the realization that if you could keep users satisfied that they were on top of  new developments by incremental substitution of new modules, they’d be more loyal and less likely to explore other providers.

In the same vein, as GE has found, the rapid feedback can dramatically speed upgrades and new features. That’s important for loyalty: if you maintain a continuing interaction with the customer and anticipate their demands for new features, they’ll have less reason to go on the open market and evaluate all of your competitors’ products when they do want to move up.

 

Equally important for customer loyalty is the new marketing options that the continuous flow of real-time operating data offer you. For a growing number of companies, that means they’re no longer selling products, but leasing them, with the price based on actual customer usage: if it ain’t bein’ used, it ain’t costing them anything and it ain’t bringing you any revenue!

Examples include:

  • jet turbines which, because of the real-time data flow, can be marketed on the basis of thrust generated: if it’s sitting on the ground, the leasee doesn’t pay.  The same real-time data flow allows the manufacturer to schedule predictive maintenance at the earliest sign of a problem, reducing both its cost and the impact on the customer.
  • Siemens’s Mobility Services, which add in features such as 3-D manufactured spare parts that speed maintenance and reduced costs, keeping the trains running.
  • Philips’s lighting services, which are billed on the basis of use, not sold.
  • SAP’s prototype smart vending machine, which (if you opt in) may offer you a special discount based on your past purchasing habits.

At its most extreme is Caterpillar’s Reman process, where the company takes back and remanufactures old products, giving them a new life — and creating new revenues — when competitors’ products are in the landfill.

Loyalty can also be a benefit of IoT strategies for manufacturers’ own operations as well. Remember that the technological obstacles to instant sharing of real-time data have been eliminted for the supply chain as well. If you choose to share it, your resupply programs can also be automatically triggered on a M2M basis, giving an inherent advantage to the domestic supplier who can get the needed part there in a few hours, versua the low-cost supplier abroad who may take weeks to reach your loading dock.

It may be harder to quantify than quality improvements or streamlined production through the IoT, but that doesn’t mean that dependable revenue streams from loyal customers aren’t an important potential benefit as well.

Libelium: flexibility a key strategy for IoT startups

I’ve been fixated recently on venerable manufacturing firms such as 169-yr. old Siemens making the IoT switch.  Time to switch focus, and look at one of my fav pure-play IoT firms, Libelium.  I think Libelium proves that smart IoT firms must, above all, remain nimble and flexible,  by three interdependent strategies:

  • avoiding picking winners among communications protocols and other standards.
  • avoiding over-specialization.
  • partnering instead of going it alone.
Libelium CEO Alicia Asin

Libelium CEO Alicia Asin

If you aren’t familiar with Libelium, it’s a Spanish company that recently turned 10 (my, how time flies!) in a category littered with failures that had interesting concepts but didn’t survive. Bright, young, CEO Alicia Asin, one of my favorite IoT thought leaders (and do-ers!) was recently named best manager of the year in the Aragón region in Spain.  I sat down with her for a wide-ranging discussion when she recently visited the Hub of the Universe.

I’ve loved the company since its inception, particularly because it is active in so many sectors of the IoT, including logistics, industrial control, smart meters, home automation and a couple of my most favorite, agriculture (I have a weak spot for anything that combines “IoT” AND “precision”!) and smart cities.  I asked Asin why the company hadn’t picked one of those verticals as its sole focus: “it was too risky to choose one market. That’s still the same: the IoT is still so fragmented in various verticals.”

The best illustration of the company’s strategy in action is its Waspmote sensor platform, which it calls the “most complete Internet of Things platform in the market with worldwide certifications.” It can monitor up to 120 sensors to cover hundreds of IoT applications in the wide range of markets Libelium serves with this diversified strategy, ranging from the environment to “smart” parking.  The new versions of their sensors include actuators, to not simply report data, but also allow M2M control of devices such as irrigation valves, thermostats, illumination systems, motors and PLC’s. Equally important, because of the potentially high cost of having to replace the sensors, the new ones use extremely little power, so they can last        .

Equally important as the company’s refusal to limit itself to a single vertical market is its commitment to open systems and multiple communications protocols, including LoRaWAN, SIGFOX, ZigBee and 4G — a total of 16 radio technologies. It also provides both open source SDK and APIs.

Why?  As Asin told me:

 

“There is not going to be a standard. This (competiting standards and technology) is the new normal.

“I talk to some cities that want to become involved in smart cities, and they say we want to start working on this but we want to use the protocol that will be the winner.

“No one knows what will be the winner.

“We use things that are resilient. We install all the agents — if you aren’t happy with one, you just open the interface and change it. You don’t have to uninstall anything. What if one of these companies increases their prices to heaven, or you are not happy with the coverage, or the company disappears? We allow you to have all your options open.

“The problem is that this (not picking a standard) is a new message, and people don’t like to listen.  This is how we interpret the future.”

Libelium makes 110 different plug and play sensors (or as they call them, “Plug and Sense,” to detect a wide range of data from sources including gases, events, parking, energy use, agriculture, and water.  They claim the lowest power consumption in the industry, leading to longer life and lower maintenance and operating costs.

Finally, the company doesn’t try to do everything itself: Libelium has a large and growing partner network (or ecosystem, as it calls it — music to the ears of someone who believes in looking to nature for profitable business inspiration). Carrying the collaboration theme even farther, they’ve created an “IoT Marketplace,” where pre-assembled device combinations from Libelium and partners can be purchased to meet the specific needs of niches such as e-health,  vineyards, water quality, smart factories, and smart parking.  As the company says, “the lack of integrated solutions from hardware to application level is a barrier for fast adoption,” and the kits take away that barrier.

I can’t stress it enough: for IoT startups that aren’t totally focused on a single niche (a high-stakes strategy), Libelium offers a great model because of its flexibility, agnostic view of standards, diversification among a variety of niches, and eagerness to collaborate with other vendors.


BTW: Asin is particularly proud of the company’s newest offering, My Signals,which debuted in October and has already won several awards.  She told me that they hope the device will allow delivering Tier 1 medical care to billions of underserved people worldwide who live in rural areas with little access to hospitals.  It combines 15 different sensors measuring the most important body parameters that would ordinarily be measured in a hospital, including ECG, glucose, airflow, pulse, oxygen in

It combines 15 different sensors measuring the most important body parameters that would ordinarily be measured in a hospital, including ECG, glucose, airflow, pulse, blood oxygen, and blood pressure. The data is encrypted and sent to the Libelium Cloud in real-time to be visualized on the user’s private account.

It fits in a small suitcase and costs less than 1/100th the amount of a traditional Emergency Observation Unit.

The kit was created to make it possible for m-health developers to create prototypes cheaply and quickly.

2nd day liveblogging, Gartner ITxpo, Barcelona

Accelerating Digital Business Transformation With IoT Saptarshi Routh Angelo Marotta
(arrived late, mea culpa)

  • case study (didn’t mention name, but just moved headquarters to Boston. Hmmmmm).
  • you will be disrupted by IoT.
  • market fragmented now.

Toshiba: How is IoT Redefining Relationships Between Customers and Suppliers, Damien Jaume, president, Toshiba Client Solutions, Europe:

  • time of tremendous transformation
  • by end of ’17, will surpass PC, tabled & phone market combined
  • 30 billion connect  devices by 2020
  • health care IoT will be $117 billion by 2020
  • 38% of indiustry leaders disrupted by digitally-enabled competitors by 2018
  • certainty of customer-supplier relationship disruption will be greatest in manufacturing, but also every other market
    • farming: from product procurement to systems within systems. Smart, connected product will yield to integrated systems of systems.
  • not selling product, but how to feed into whole IoT ecosystem
  • security paramount on every level
  • risk to suppliers from new entrants w/ lean start-up costs.
  • transition from low engagement, low trust to high engagement, high trust.
  • Improving efficiencies
  • ELIMINATE MIDDLEMAN — NO LONGER RELEVANT
  • 4 critical success factors:
    • real-time performance pre-requisite
    • robustness — no downtime
    • scalability
    • security
  • case studies: energy & connected home, insurance & health & social care (Neil Bramley, business unit director for clients solutions
    • increase depth of engagement with customer. Tailored information
    • real-time performance is key, esp. in energy & health
    • 20 million smart homes underway in GB by 2020:
      • digitally empowering consumers
      • engaging consumers
      • Transforming relationships among all players
      • Transforming homes
      • Digital readiness
    • car insurance: real-time telematics.
      • real-time telematics data
      • fleet management: training to reduce accidents. Working  w/ Sompo Japan car insurance:
    • Birmingham NHS Trust for health (Ciaron Hoye, head of digital) :
      • move to health promotion paradigm
      • pro-actively treat patients
      • security first
      • asynchronous communications to “nudge” behavior.
      • avoiding hip fractures
      • changing relationship w/ the patient: making them stakeholders, involving in discussion, strategy
      • use game theory to change relationship

One-on-one w/ Christian Steenstrup, Gartner IoT analyst. ABSOLUTE VISIONARY — I’LL BE INTERVIEWING HIM AT LENGTH IN FUTURE:

  • industrial emphasis
  • applications more ROI driven, tangible benefits
  • case study: mining & heavy industry
    • mining in Australia, automating entire value train. Driverless. Driverless trains. Sensors. Caterpillar. Collateral benefits: 10% increase in productivity. Less payroll.  Lower maintenance. Less damage means less repairs.
    • he downplays AR in industrial setting: walking in industrial setting with lithium battery strapped to your head is dangerous.
    • big benefit: less capital expense when they build next mine. For example, building the town for the operators — so eliminate the town!
  • take existing processes & small improvements, but IoT-centric biz, eliminating people, might eliminate people. Such as a human-less warehouse. No more pumping huge amount of air underground. Huge reduction with new system.  Mine of future: smaller holes. Possibility  of under-sea mining.
  • mining has only had incremental change.
  • BHP mining’s railroad — Western Australia. No one else is involved. “Massive experiment.”
  • Sound sensing can be important in industrial maintenance.  All sorts of real-time info. 
  • Digital twins: must give complete info — 1 thing missing & it doesn’t work.
  • Future: 3rd party data brokers for equipment data.
  • Privacy rights of equipment.
  • “communism model” of info sharing — twist on Lenin.

 

Accelerating Digital Transformation with Microsoft Azure IoT Suite (Charlie Lagervik):

  • value networking approach
  • customer at center of everything: customer conversation
  • 4 imperatives:
    • engage customers
    • transform products
    • empower employees
    • optmize operations
  • their def. of IoT combines things/connectivity/data/analytics/action  Need feedback loop for change
  • they focus on B2B because of efficiency gains.
  • Problems: difficult to maintain security, time-consuming to launch, incompatible with current infrastructure, and hard to scale.
  • Azure built on cloud.
  • InternetofYourThings.com

 

Afternoon panel on “IoT of Moving Things” starts with all sorts of incredible factoids (“since Aug., Singapore residents have had access to self=driving taxis”/ “By 2030, owning a car will be an expensive self-indulgence and will no longer be legal.”

  • vehicles now have broader range of connectivity now
  • do we really want others to know where we are? — privacy again!
  • who owns the data?
  • what challenges do we need to overcome to turn data into information & valuable insight that will help network and city operators maximize efficiency & drive improvement across our transportation network?
  • think of evolution: now car will be software driven, then will become living room or office.
  • data is still just data, needs context & location gives context.
  • cities have to re-engineer streets to become intelligent streets.
  • must create trust among those who aren’t IT saavy.
  • do we need to invest in physical infrastructure, or will it all be digital?
  • case study: one car company w/ engine failures in 1 of 3 cars gave the consultants data to decide on what was the problem.

Live Blogging Gartner ITxpo Barcelona!

After a harrowing trip via Air France (#neveragain) I’m in lovely Barcelona, live-blogging Gartner ITxpo courtesy of Siemens — but they aren’t dictating my editorial judgment.

Keynoter is Peter Sondergaard, Sr. VP, Gartner Research:

  • start with high-scale traditional IT structures, but with new emphasis on cloud, etc. IT system now partially inside your org. and part outside.  We are half-way through transition to cloud: half of sales support now through cloud. More financial, HR & other functions. General trend toward cloud, but still some internal processes as necessary. Must clean up traditional inside processes.
    • “Ecosystems are the next evolution of Digital”
    • Must learn to measure your investments in customer experience.
    • Starting to explore VR & AR (personal shout out to PTC & clients such as Caterpillar!!)
    • must understand customer’s intent through advanced algorithms.  Create solutions to problems they don’t even know they have!
  • next domain of new platform: Things:
    • build strategies with two lenses: consumer preferences, AND the enterprise IoT lens.
    • leverage exponential growth in connected things
    • 27445 exabytes of data by 2020!
    • can’t just bolt on new systems on old ones: must rework existing systems to include devices — processes, workflow, much harder (i.e., my circular company paradigm).
  • intelligence: how your systems learn and decide independently
    • algorithms– algorithmic intelligence — drives decisions
    • now, AI, driven by machine learning. Machines learn from experience.
    • information is new code base
    • we will employ people to train things to learn from experience through neural networks
  • ecosystems
    • linear value supply chains transformed to ecosystems through electronic interchange.
    • others can build experiences, etc. that you haven’t thought out through APIs  — my “share data” Essential Truth. APIs implement business policies in the digital world.c
  • customers
    • customer driven

Where to start?

  • 70% of IoT implementation is through new organization within companies!

Now other Gartner analysts chime in:

  • insurance: engage your customers.
  • smart gov: must interact with those who implement. Must re-imaging public involvement sense/engage/interact
  • case study: Deakin University in Australia: digital platforms to enhance student experience.
  • case study: Trenitalia mass transit system switching to predictive maintenance! Huge cost savings. “Experience hands & beginners mind at work” — love that slogan!!!! “Listen to the train instead of scheduling maintenance”
  • blockchain: ecosystem, brilliant in simplicity. All can see transaction but no one can invade privacy. Use to solve many problems: data provenance, land registry, public infrastucture, AI.
  • Woo: use this to TRANSFORM THE WORLD!!!
  • ratz — I was preoccupied at time, they talked about a new mobility system for seniors — re my SmartAging paradigm!!
  • paradigm shift — partnering with competitors (much of what I wrote about in DataDynamite: share data, don’t hoard it!)  Think about Apple & Google driving car companies’ interfaces. “Do you join hands with digital giants or join hands with them?”).
  • ooh, love the digital assistant correcting his presentation. I can only dream of a future where there are millions added to grammar police!

 

 

Circular Company: Will Internet of Things Spark Management Revolution?

Could the IoT’s most profound impact be on management and corporate organization, not just cool devices?

I’ve written before about my still-being-refined vision of the IoT — because it (for the first time!) allows everyone who needs instant access to real-time data to do their jobs and make better decisions to share that data instantly —  as the impetus for a management revolution.

My thoughts were provoked by Heppelmann & Porter’s observation that:

“For companies grappling with the transition (to the IoT), organizational issues are now center stage — and there is no playbook. We are just beginning the process of rewriting the organization chart that has been in place for decades.”

If I’m right, the IoT could let us switch from the linear and hierarchical forms that made sense in an era of serious limits to intelligence about things and how they were working at thaFor companies grappling with the transition, organizational issues are now center stage—and there is no playbook. We are just beginning the process of rewriting the organization chart that has been in place for decades.t moment, to circular forms that instead eliminate information “silos” and instead give are circular, with IoT data as the hub. 

This article expands on that vision. I’ve tried mightily to get management journals to publish it. Several of the most prestigious have given it a serious look but ultimately passed on it. That may be because it’s crazy, but I believe it is feasible today, and can lead to higher profits, lower operating costs, empowering our entire workforces, and, oh yeah, saving the planet.

Audacious, but, IMHO, valid.  Please feel free to share this, to comment on it, and, if you think it has merit, build on it.

Thanks,

W. David Stephenson


The IoT Allows a Radical, Profitable Transformation to Circular Company Structure

 

by

W. David Stephenson

Precision assembly lines and thermostats you can adjust while away from home are obvious benefits of the Internet of Things (IoT), but it might also trigger a far more sweeping change: swapping outmoded hierarchical and linear organizational forms for new circular ones.

New org charts will be dramatically different because of an important aspect of the IoT overlooked in the understandable fascination with cool devices. The IoT’s most transformational aspect is that, for the first time,

everyone who needs real-time data to do their jobs better or
make better decisions can instantly 
share it.

That changes everything.

Linear and hierarchical organizational structures were coping mechanisms for the severe limits gathering and sharing data in the past. It made sense then for management, on a top-down basis, to determine which departments got which data, and when.

The Internet of Things changes all of that because of huge volumes of real-time data), plus modern communications tools so all who need the data can share it instantly. 

This will allow a radical change in corporate structure and functions from hierarchy: make it cyclical, with real-time IoT data as the hub around which the organization revolves and makes decisions.

Perhaps the closest existing model is W.L. Gore & Associates. The company has always been organized on a “lattice” model, with “no traditional organizational charts, no chains of command, nor predetermined channels of communication.”  Instead, they use cross-disciplinary teams including all functions, communicating directly with each other. Teams self-0rganize and most leaders emerge spontaneously.

As Deloitte’s Cathy Benko and Molly Anderson wrote, “Continuing to invest in the future using yesteryear’s industrial blueprint is futile. The lattice redefines workplace suppositions, providing a framework for organizing and advancing a company’s existing incremental efforts into a comprehensive, strategic response to the changing world of work.”  Add in the circular form’s real-time data hub, and the benefits are even greater, because everyone on these self-organizing teams works from the same data, at the same time.

You can begin to build such a cyclical company with several incremental IoT-based steps.

One of the most promising is making the product design process cyclical. Designers used to work in a vacuum: no one really knew how the products functioned in the field, so it was hard to target upgrades and improvements. Now, GE has found it can radically alter not only the upgrade process, but also the initial design as well:

“G.E. is adopting practices like releasing stripped-down products quickly, monitoring usage and rapidly changing designs depending on how things are used by customers. ‘We’re getting these offerings done in three, six, nine months,’ (Vice-President of Global Software William Ruh said). ‘It used to take three years.’”

New IoT and data-analytics tools are coming on the market that could facilitate such a shift. GE’s new tool, “Digital Twins,” creates a wire-frame replica of a product in the field (or, for that matter, a human body!) back at the company. Coupled with real-time data on its status, it lets everyone who might need to analyze a product’s real-time status (product designers, maintenance staff, and marketers, for example) to do so simultaneously.

The second step toward a cyclical organization is breaking down information silos.

Since almost every department has some role in creation and sales of every product, doesn’t it make sense to bring them together around a common set of data, to explore how that data could trigger coordinated actions by several departments? 

Collaborative big-data analysis tools such as GE’s Predix, SAP’s HANA, and Tableau facilitate the kind of joint scrutiny and “what-if” discussions of real-time data that can make circular teamwork based on IoT-data sharing really achieve its full potential.

The benefits are even greater when you choose to really think in circular terms, sharing instant access to that real-time data not only companywide, but also with external partners, such as your supply chain and distribution network – and even customers – not just giving them some access later on a linear basis.  For example, SAP has created an IoT-enabled vending machine. If a customer opts in, s/he is greeted by name, and may be offered “your regular combination” based on past purchases, and/or a real-time discount. That alone would be neat from a marketing standpoint, but SAP also opened the resulting data to others, resulting in important logistics improvements. Real-time machine-to-machine (M2M) data about sales at the new vending machines automatically reroute resupply trucks to those machines currently experiencing the highest sales. 

With the IoT, sharing data can make your own product or service more valuable. With the Apple HomeKit, you can say “Siri, it’s time for bed,” and the Hue lights dim, Schlage lock closes, and Ecobee thermostat turns down. By sharing real-time IoT data, each of these companies’ devices become more valuable in combinations than they are by themselves.

Hierarchical and linear management is outmoded in the era of real-time data from smart devices. It is time to begin to replace it with a dynamic, circular model with IoT data as its hub.

Concurrent Engineering: Great Tool to Make IoT “Circular Company” Reality!

Simultaneously sharing real-time data and collaborating (vs. linear methods where departments work in isolation from each other and sequentially) is a major theme of my “Circular Company” vision.

At the PTC ThingWorx expo in June one of the themes was “concurrent engineering“), which could be a major tool in making the circular company a reality.  The company’s Creo Advanced Assembly Extension  lets the the lead designer plan the assembly’s “skeleton” to give all the subassembly teams a common work basis and to include critical design info in the subassemblies. This lets each team work in parallel. If the lead engineer modifies the primary design, all the subassemblies will modify automatically. The process transfers seamlessly to the assembly line.

According to Wikipedia, the concept also fits nicely with the “circular economy” concept that’s gaining strength, by considering factors such as end-of-life disposal and recycling,  which is a great bonus of the “circular company”:

“.. part of the design process is to ensure that the entire product’s life cycle is taken into consideration. This includes establishing user requirements, propagating early conceptual designs, running computational models, creating physical prototypes and eventually manufacturing the product. Included in the process is taking into full account funding, work force capability and time. A study in 2006 claimed that a correct implementation of the concurrent design process can save a significant amount of money, and that organizations have been moving to concurrent design for this reason.[3] It is also highly compatible with systems thinking [which, BTW, is what originally introduced me to this concept, many years ago, through the writings of Peter Senge and Jay Forrester, who, BTW, is still kickin’ at 97!] and green engineering.”

Come on, gang: hierarchy and linear processes are soooo 20th century. Get with the program.

I’ll be on live Thursday morning talking the IoT and Smart Cities

Cities are the future of global civilization and the economy, and smart cities are the only way they’ll survive and prosper!

Join me and two SAP experts on the subject, Dina Dayal (global vice president for Digital Enterprise Platform Group) and Saj Kumar (vice president of Digital Transformation and Internet of Things) as we guest on Bonnie D. Graham’s always-enjoyable Coffee Break With Game Changers, 11 AM EDT, 8 AM PDT (it will be archived at the site if you can’t listen live.

Bonnie likes us to start with a provocative (and relevant) quote, and mine will be from Jane Jacobs’ great Death and Life of American Cities:

Cities have the capability of providing something for everybody, only because,
and only when, they are created by everybody.”

… with the emphasis on everybody: I’ll explain that there really is an important role in smart cities for city government, the private sector, and — often ignored — grassroots innovators.

A critical key is the global Things Network, created by Wienke Gieseman and his Gang of Ten in Amsterdam,  who created a free LoRaWAN city-wide data network for $12,000 and in less than a month, and then went on to create a global network and a crowdsourced campaign to bring the cost of LoRaWAN hubs down to $200.

I like to think I was there at the beginning, working with Vivek Kundra, then the DC’s CTO (before his accomplishments there led Obama to name him the first US CIO). Vivek and Mayor Fenty took the bold move of releasing more than 40 major city data bases on a real-time basis, then held a contest to get smart developers to create new-fangled “apps” (remember, this was 2008!) to capitalize on them. Because the apps were open-source, they’ve been constantly copied and improved in the years since then.

And that’s only the beginning:

  • creative startups such as Alicia Asin’s Libelium, working with an enlightened city government, have made Barcelona a massive testlab for the Iot, and arguably THE smart city of the day
  • Columbus OH won the Obama Administration’s Smart City competition for its all-inclusive transportation scheme (and I do mean all-inclusive: who ever thought a better transportation network could be used to cut infant mortality???)
  • Smart Cities organizations have been formed in cities worldwide to share ideas — we’re all in this together!

And, of course, I’m going to bring the discussion down to earth by really getting down and dirty — yessiree, we’re gonna talk trash cans.

Be there or be square!

 

Distributed Manufacturing by 3D Printing Revolution for IoT Comes of Age!

Two major developments in the 3-D printing world, from Fictiv and (who woulda thunk it!) UPS, make me think the time has come for “distributing manufacturing” and getting away from the old massive, manufacturing mentality exemplified by Ford’s River Rouge plant.

OK, first a confession and a little history. Being short & named David, I’ve always had a fascination with David & Goliath, and you can bet who I’d root for. I also was deeply touched by two visionaries in my past:

  • Steve Clay-Young, who used to run the workshop at the old Boston Architectural Center & turned me on to a neat, nearly-forgotten bit of WWII history: either Popular Science or Popular Mechanix (can’t remember which), organized a network of hobbyists with metal lathes, who played a major role in the war effort. The magazine published plans for turning metal for munitions, and these guys each worked in their workshops to make them.
  • Eric Drexler, the nano-tech guru, spoke at the Eco-Tech conference in the ’90s about his vision of a bread-box-size gizmo on your kitchen counter that would churn out all sorts of customized products for you.

Now, it’s all taking place, and I suspect 3D printing will be a crucial element in the IoT-based transformation of the economy.

 

                                   Fictiv distributed manufacturing model

Fictiv is a startup founded to “democratize manufacturing,” which just went public with its new “distributed manufacturing” service using a nationwide network of 3D high quality printers and CNC machines:

 

“We route parts to machine with open capacity so you don’t wait 5 days for a part that takes 5 hours…. We aggregate orders so every customer receives the benefits of large purchasing power….”

Perhaps coolest, “Parts are produced as close to customers as possible to reduce inefficiencies in logistics and shipping lead-time”  so that (for an extra charge) they’re fabricated and delivered in 24 hours, and otherwise delivered in two days.  I suspect that, just as having sensors on their products that results in real-time feedback allowing GE to compress the design cycle, especially upgrades, that this proximity and quick turn-around will allow designers to radically alter the design process by “failing rapidly,” just the way early spread-sheet software allowed business managers to do “what-if” hypotheticals for the first time.

By bundling orders, they give startups the bargaining power of large companies.As co-founder Dave Evans, an experienced product design pro, says, distributed, local manufacturing can even the playing field for smaller companies, especially startups just designing their first products:

“When ordering from a large manufacturing company, parts need to navigate through their complex system and then be shipped from the machine warehouse direct to the customer, increasing lead times.

From an engineer’s perspective, when you’re in the prototyping and ideation stages, time is everything and even a 1-2 day loss from a 3PL (third-party logistics player) matters significantly.

What’s important to consider here is that in manufacturing, things can and will go wrong. So when remote manufacturers inevitably have to manage errors, there’s a lot of complexity to deal with …. This is very evident in overseas mass manufacturing, which is why companies put engineers as close to the source as possible. It’s amazing how few companies consider the same principles during the early prototyping stages of a product when time is everything.

The beauty in working with smaller, local manufacturers on the other hand, is that parts can be picked up as soon as they’re ready or delivered via same-day courier, saving you the 1-2 days of shipping. In addition, if things go wrong (they always do), smaller shops have more agility, fewer organizational layers, and in general can respond more quickly compared with their larger counterparts.”

              3D printing at The UPS Store

Equally important is the continuing stream of 3D services being offered by UPS. which recently announced a nationwide on-demand 3D printing network.  The network will combine 3D printers at more than 60 The UPS Stores® and Fast Radius’ On Demand Production Platform™ and 3D printing factory in Louisville, KY. My friends at SAP will marry its SAP’s extended supply chain solutions will be integrated with the UPS 3D network and — most important — its global logistics network “to simplify the industrial manufacturing process from digitization, certification, order-to-manufacturing and delivery.”

If I’m correct, the UPS network will concentrate on prototyping at this point, but it’s easy to see that it could soon have a dramatic impact on the replacement parts industry. Why should the manufacturer warehouse a large supply of spare parts, just because they might be needed, when they could instead simply transmit the part’s digital file to the nearest UPS 3D printer, generate the part, and use UPS to deliver it in a fraction of the time.

Combine that with the predictive maintenance possible with feedback from sensors on products, and you truly have a revolution in product design and maintenance as well as manufacturing. It would also foster the IoT-based circular company vision that I’ve been pushing, because supply chain, manufacturing, distribution, and maintenance would all be linked in a great circle.

Sweet!

 

 

Brexit and the IoT: Let’s Capitalize on the Opportunity, Not Wallow in Despair

Wow: as the old Dinah Washington ditty went, “What a Difference a Day Makes.” Since last Thursday, I doubt even the most diehard IoT zealots have thought about anything but Brexit and its implications.  Now that we’ve had a little time to reflect and digest exactly how dire the possible problems are, I’d like to suggest we look at the bright side, and think the IoT could play a major role in improving everyone’s life in the future — not just the economic elites.

Wei ji: crisis combines danger and opportunity

Wei ji: crisis combines danger and opportunity

I used to be a corporate crisis manager, called in when major corporations had done amazingly stupid things and their reputations and sometimes even their survival was in question. For those occasions, I kept a battered greeting card in my briefcase with the calligraphy for wei ji, the Chinese ideogram for crisis. I’d point out that it c0mbined danger — that was obvious! — with the less-obvious one for opportunity. I still believe that, even in the global confusion and concern resulting from Brexit, and I think there’s a role for the IoT in the new world order.

Above all, this should be a wake-up call for the global economic and political elites that, going forth, change must benefit everyone, not just them.

When it comes to the IoT, that means that it can’t be yet another excuse for automating jobs out of existence, but must instead be a way of empowering workers and creating new opportunities:

  • One that occurred to me is near & dear to my heart, because I thought of a primitive version 25 years ago: creating 30″ high 4′ x 8′ garden “boxes” planted using Mel Bartholomew’s “Square Foot Gardening” methods, that would allow people worldwide to grow their own veggies in very small spaces.  Add in IoT water sensors so that the beds could be watered precisely when and in the amount needed, and people everywhere could become self-sufficient (e-mail me if you’re interested in commercializing the approach)!  It would be the cheapie’s variation on the neat, but costly, Grove Labs home ag solution.
  • smart asthma inhaler

    smart asthma inhaler

    Increasingly, global populations will be centered in cities, so the whole smart cities approach will improve everyone’s quality of living by cutting down traffic, reducing municipal operating costs, and improving public health. Even fat cats get upset when their limos are stuck in traffic, so this is a win-win.
    One of my favorite examples of the smart city approach is the asthma inhaler cum GPS that automatically alerts public health authorities when a user — most frequently, sadly, a low-come minority person — uses the inhaler, allowing them to identify dirty air “hot spots” where cleanup efforts need to be focused.

  • I’ve always been impressed about the outside-the-box mobile device apps coming out of Africa that make their lack of conventional infrastructure into an advantage. One of the coolest examples of that when it comes to the IoT is the example INEX’s Chris Rezendes told me about: how Grundfos, the world’s leading pump company, releases the data from senors on its pumps for village water supplies in Africa and some smart guys have come up with an app that allows the village women to check in advance whether the village well is working before they trudge miles to get the watch (which, BTW, I hope they’re carrying back in these way-cool appropriate technology rolling water carriers, the “Hippo”).

  • Also, the IoT could empower assembly-line workers and others if smart managers realize that they too should be among those sharing real-time IoT data: yes, a lot of IoT data can be used on a M2M basis so one machine’s status will regulate another’s, but there’s also a potential role for workers, with their years of experience and horse-sense, using that data to fine-tune processes themselves to optimize efficiency. Artificial Intelligence is great, but I still think there’s a role for enlightened humans, even if they don’t have a lot of education and prestige within the corporation.

Those are just a few ideas on how the IoT might be used to improve everyone’s lot in the coming years and undermine the current status quo that benefits only a few.  Let me know if you have ideas on how to foster this revolution and make Brexit the catalyst for positive change.