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.

 

 

Live Blogging from SAP’s SCM CRM IoT 2016 – Day 2

Greg Gorbach, ARC Advisory Group, Industrial Internet of Things:

  • ARC is an analyst firm, in Boston.
  • new service models
  • new products
  • new production techniques
  • new business processes
  • new competitors
  • new partners
  • new workers
  • new business opportunities.
  • innovation improves competitiveness: value-based competitiveness raises value of output.
  • Drivers:
    • reduced machine or asset downtime
    • more rapid service response
    • improved process performance
    • improved personnel productivity
    • reduced machine or asset lifecycle costs
    • improved asset utilization/RoA
    • opportunity for business innovation
    • ability to sell products as a service
  • manufacturing momentum for digital transformation: factors include 3D printing, IoT technologies, changing economies of scale, new service models
  • goal is digital transformation
  • software transitioning from monolithic to microservices

Richard Howells, SAP:

  • IoT is all about re-imaging things:business process, customer experiences
  • SAP solutions for IoT
    • SAP Connected Assets
    • SAP Connected Manufacturing
    • SAP Network Logistics Hub
    • SAP Augmented Reality Solutions
  • SAP Predictive Maintenance and Service: leverage operational insights to drive innovation & new business models
    • Deere putting sensors everywhere, doing predictive maintenance of tractors. In some cases, leasing instead of selling, so they have incentive to keep it operating.
    • Kaeser Compressors
    • Asset Intelligence Network
    • Connective Manufacturing: leveraging big data to drive new insights into operations.
      • Example of Harley Plant in York, Pa.  Many new design options (1,700 options), but do 25% more bikes with 30% fewer people. Went from 21 days for a custom cycle top 6 hours.
      • Pepsi: improving asset utilization with SAP Connected Manufacturing: collect all downtime and loss data in real time.  Went from 65 to 85% asset use.
    • SAP Networked Logistics Hub
    • SAP AR Warehouse Picker
    • SAP AR Service Technician

Where is IoT going??

  • 68% of companies see IoT being strategic or transformational to their business.
  • 78% plan to invest in IoT  in next 24 mo. — 24% already have.
  • Increasing productivity and improving customer experience are top business benefits
  • Challenges to deploying IoT include unclear ROI, lack of industry standards, costs, and data security.

 

Next was my presentation on “Getting Started With the IoT,” in which I emphasized that companies that have hung back from the IoT are still in the majority, but had better heed John Chambers’ warning that they’ll be toast in just a few years if they don’t start now.  I emphasized that an ideal early focus is to build the efficiency or “precision” of your existing operations, and to build operating safety (especially in inherently dangerous settings such as construction sites), then move on to more radical transformation.  I cited GE’s rather modest goal (I think they’re understating it, based on their own internal results) of a 1% increase in productivity for the IoT as something that most companies could achieve, and then talked about GE’s Brilliant Factories as a model for increasing operating efficiency, zeroing in on my favorite example, the Durathon Battery plant, where a sensor on every battery and 10,000 on the assembly line give them tremendous flexibility to cope with differing situations and to increase efficiency.  Finally, I suggested that the companies begin to rethink the role of their products and to begin considering the “circular enterprise” vision I’ve articulated as they look to the future.


 

Kris Gorrepati, SAP “IoT: from Big Data to Smart Data to Outcomes.”

  • OK, I’d never heard of a Brontobyte before…
  • “IoT relevant to all industries.” Agreed.
  • Amazon Dash service (Whirlpool now building it in!)
  • Uses same curve that other SAP guys do: from connect to transform to reimagine (latter being empowering new biz models, value-added products and services.
  • HANA Cloud Platform for the IoT.

Live Blogging from SAP’s SCM CRM IoT 2016

I’m back in Sodom and Gomorrah in the desert, AKA Las Vegas, to speak at another SAP IoT conference: SCM CRM IoT 2016, and to live blog again!

Keynoters: Hans Thalbauer, sr. vp of extended supply chain solutions at SAP, and Dr. Volker G. Hildebrand, global vp or customer engagement & commerce for SAP Hybris:
Hildebrand:

  • theme: move beyond traditional CRM: look at entire customer journey
  • you have to meet customer expectations for convenience, relevance, reliability, and in real-time.
  • real lesson from Uber: customers upend markets, not companies; carry power of internet in their pocket; if you’re fighting alone, you have no chance of success;
  • when London cabbies went on strike, Uber membership went up 850% in 3 days.
  • “74% of execs. believe digital transformation is improving value for customers”
  • must thinking beyond CRM: 2 of 3 companies don’t think their CRM doesn’t support their future needs for customer engagement.
  • blend marketing & commerce.
  • personalization is key to digital commerce.
  • beyond service: customer served before, during & after buy; flawless field service. 53% abandon online purchase if they don’t be quick answers to questions.
  • why no app from cable provider allowing you to get assistance Uber-style? Instead, hold on phone.
  • One-to-one future is here.
  • Omnichannel selling
  • By 2020: 1 million fewer B2B sales reps (@Forrester)
  • EY: enabled collaboration with 15,000 client partners
  • “Engage your customers like never before:” commerce, marketing, service & sales.

Bob Porter, Pregis (protective packaging):

  • liked ease of use with Hybris (vs. Salesforce)

Thalbauer (digital transformation of supply chain):

  • end-consumer driven economy
  • very related to IoT
  • tech adoption accelerating
  • biz model transformation
  • instant notification if the equipment malfunctions
  • change of business transformation
  • disruption in every aspect of business:
    • customer-centric (demand sensing, omni-channel sales, same-day delivery)
    • individualized products (configured products, digitalized inventory, lot size of one)
    • resource scarcity (talent, sustainability, natural resources)
    • sharing economy (social networks, business networks, asset networks)
  • sweet: combo of 3-D printing at warehouse & Uber-based model for final delivery.
  • extended supply chain demo: sweet (literally): 3-D printing of chocolates at high-end stores! — wonderful example of IoT data-centric enterprise
  • SAP increasing pace of innovation
    • fastest-growing planning solution in history
    • only live logistics platform in the market
    • product innovation platform re-defined
    • demand-driven manufacturing
    • digital assets.

Next up: Sacha Westermann, Port of Hamburg, on how it uses IoT to streamline operations, improve efficiency & reduce accidents through “smartPORT”:

  • it’s very big (largest port in Germany), and very complex! Ships, rail (largest rail hub in Europe), trucking. 24/7.
  • big emphasis on environment: need to reduce emissions, improve sustainability.
  • can’t expand area, but must be able to handle more volume.
  • key factor is connectivity between all parties.
  • smartPORT includes energy & logistics.
  • smart maintenance: use mobile to call up SAP order & create messages, take photos. Example of malfunction with a drawbridge. Technician got new button from stock, installed it, customers didn’t even know there was a problem.
  • port monitor: digital map with all info to operate the harbor. Mobile version on iPad.
  • SmartSwitch for rail: sensors on the switches to measure conditions. Automated data flow to maintenance company.
  • dynamic info on traffic volumes: combines all real-time data on traffic. Detects available parking spaces. Created “PrePort Parking” as holding area for trucks that are early or late. Trucks park bumper-to-bumper for maximum efficiency.
  • special traffic lights: cycle changes based on real-time traffic flow. Warning messages if pedestrians cross.
  • smartROAD: smart sensing of the bridge-structural load — identifies interdependencies and to do predictive maintenance.
  • Take aways:
    • good application requires lot of data
    • must share data
    • data privacy critical for confidence
    • everyone gets just info they need
    • more participants, higher the benefit for each
    • open interfaces basic
    • application must be self-explanatory

Next up: me!, on 4 Essential Truths of IoT & how that translates into strategy.


 

Mike Lackey, IoT Extended Supply Chain, SAP explaining their IoT strategy & direction, with emphasis on “driving customer value”:

  • he’s using universe of 75 billion connected devices by 2022.
  • case study: STILL, the smart lift truck from Germany. Forklift sold as service, based on weight of materials carried. They will communicate among themselves, M2M.
  • “It is not about Things, it is about what the Things can do to radically transform business processes!”
  • oil & gas: reducing spills. They worked with the company that made the platform that failed in Deep Horizon — hadn’t been maintained in years.
  • Burbury: want to know exactly what you looked at, share the info among their stores. Creepy: invasion of privacy??
  • UnderArmour: why do you have to wear a band — build sensors right into clothes.
  • Hagleitner (I reported about them at last SAP event) provides supplies for corporate washrooms, etc. Paradigm shift: sensors let them know which dispensers need new materials. “big washroom data
  • applications: drive adoption with a few killer applications. Differentiate with “Thing to Outcome”
  • cloud: leading cloud experience for customers and partners at lowest TCO
  • platform: open big data platform. high-value services for SAP, customer & partner
  • Kaeser Compressors also made paradigm shift: no longer sell air compressors, but air — must guarantee it works constantly. Million data points per compressor daily. Differentiates them from competitors.
  • one tractor company now can recommend to farmers what they should plant based on data from sensors on the plows.
  • Asset Intelligence Network: great example of data sharing for mutual advantage. To be released soon.
  • Enables connected driving experience.
  • SAP IoT Starter Kit can get you started.

The Internet of Things Enables Precision Logistics (& Could Save Planet!)

A degree of precision in every aspect of the economy impossible before the IoT is one of my fav memes, in part because it should encourage companies that have held back from IoT strategies to get involved now (because they can realize immediate benefits in lower operating costs, greater efficiency, etc.), and because it brings with it so many ancillary benefits, such as reduced environmental impacts (remember: waste creation = inefficiency!).

       Zero Marginal Cost Society

Zero Marginal Cost       Society

I’m reminded of that while reading Jeremy Rifkin’s fascinating Zero Marginal Cost Economy which I got months ago for research in writing my own book proposal and didn’t get around to until recently.  I’d always heard he was something of an eccentric, but, IMHO, this one’s brilliant.  Rifkin’s thesis is that:

“The coming together of the Communications Internet with the fledgling Energy Internet and Logistics Internet in a seamless twenty-first-century intelligent infrastructure, “the Internet of Things (IoT),” is giving rise to a Third Industrial Revolution. The Internet of Things is already boosting productivity to the point where the marginal cost of producing many goods and services is nearly zero, making them practically free.”

Tip: when the marginal cost of producing things is nearly zero, you’re gonna need a new business model, so get this book!

At any rate, one of the three revolutions he mentioned was the “Logistics Internet.”

I’m a nut about logistics, especially as it relates to supply chain and distribution networks, which I see as crucial to the radically new “circular enterprise” rotating around a real-time IoT data hub. Just think how efficient your company could be if your suppliers — miles away rather than on the other side of the world, knew instantly via M2M data sharing, what you needed and when, and delivered it at precisely the right time, or if the SAP prototype vending machine notified the dispatcher, again on a M2M basis, so that delivery trucks were automatically re-routed to machine that was most likely  to run out first!

I wasn’t quite sure what Rifkin meant about a Logistics Internet until I read his reference to the work of Benoit Montreuil, “Coca-Cola Material Handling & Distribution Chair and Professor” at Georgia Tech, who, as Rifkin puts it, closes the loop nicely in terms of imagery:

“.. just as the digital world took up the superhighway metaphor, now the logistics industry ought to take up the open-architecture metaphor of distributed Internet communication to remodel global logistics.”

Montreuil elaborates on the analogy (and, incidentally, places this in the context of global sustainability, saying that the current logistics paradigm is unsustainable), and paraphrases my fav Einstein saying:

“The global logistics sustainability grand challenge cannot be addressed through the same lenses that created the situation. The current logististics paradigm must be replaced by a new paradigm enabling outside-the-box paradigm enabling meta-systemic creative thinking.”

wooo: meta-systemic creative thinking! Count me in!

Montreuil’s answer is a “physical Internet” for logistics, which he says is a necessity not only because of the environmental impacts of the current, inefficient system (such as 14% of all greenhouse gas emissions in France), but also its ridiculous costs, accounting for 10% of the US GDP according to a 2009 Department of Transportation report!  That kind of waste brings out my inner Scotsman!

Rifkin cites a variety of examples of the current system’s inefficiency based on Montreuil’s research:

  • trucks in the US are, on average, only 60% full, and globally the efficiency is only 10%!
  • in the US, they were empty 20% of miles driven
  • US business inventories were $1.6 trillion as of March, 2013 — so much for “just-in-time.”
  • time-sensitive products such as food, clothes and medical supplies are unsold because they can’t be delivered on time.

Montreuil’s “physical Internet” has striking parallels to the electronic one:

  • cargo (like packets) must be packaged in standardized module containers
  • like the internet, the cargo must be structured independently of the equipment, so it can be processed seamlessly through a wide range of networks, with smart tags and sensors for identification and sorting (one of the first examples of the IoT I wrote about was FedEx’s great SenseAware containers for high-value cargo!)

With the Logistics Internet, we’d move from the old point-to-point and hub-and-spoke systems to ones that are “distributed, multi-segment, intermodal.” A single, exhausted, over-worked (and more accident-prone) driver would be replaced by several. It’s a  little counter-intuitive, but Montreuil says that while it would take a driver 240 hours to get from Quebec to LA under the current system, instead 17 drivers in a distributed one would each drive about 3 hours, and the cargo would get there in only 60 hours.

Under the new system, the current fractionated, isolated warehouse and distribution mess would be replaced by a fully-integrated one involving all of the 535,000 facilities nationwide, cutting time and dramatically reducing environmental impacts and fuel consumption.

Most important for companies, and looping back to my precision meme, “Montreuil points out that an open supply network allows firms to reduce their lead time to near zero if their stock is distributed among some of the hundreds of distribution centers that are located near their final buyer market.” And, was we have more 3-D printing, the product might actually be printed out near the destination. How cool is that?

Trucking is such an emblematic aspect of the 20th-century economy, yet, as with the neat things that Union Pacific and other lines are doing with the 19th-century’s emblematic railroads, they can be transformed into a key part of the 21-st century “precision economy” (but only if we couple IoT technology with “IoT thinking.”

Now let’s pick up our iPads & head to the loading dock!


 

PS: I’ll be addressing this subject in one of my two speeches at the SCM2016 Conference later this month. Hope to see you there! 

 

FedEx package…

Digital Twins: the Ultimate in Internet of Things Real-Time Monitoring

Get ready for the age when every product will have a “digital twin” back at the manufacturer, a perfect copy of not just the product as it left the factory floor, but as it is functioning in the field right now. That will be yet another IoT game-changer in terms of my 4th IoT Essential Truth, “rethink products.”

Oh, and did I forget to mention that we’ll each have a personal body twin from birth, to improve our health?

For the first time we’ll really understand products, how they work, what’s needed to improve them, and even how they may be tweaked once they’re thousands of miles from the factory, to add new features, fix problems, and/or optimize efficiency.

Key to circular organizations

Even better, the twin can play a critical role in accomplishing my vision of new circular organizations (replacing obsolete hierarchies and linear processes), in which all relevant departments and functions (and even supply chain members, distribution networks and customers, where relevant) form a continuous circle with real-time IoT data as the hub).  Think of the twin as one of those manifestations of the real-time data to which all departments will have simultaneous access.

GE Digital Twin visualization

               GE Digital Twin visualization

I’ve often remarked how incredible it was that companies (especially manufacturers) were able to function as well as they did and produce products as functional as they were despite the inability to peek inside them and really understand their operations and/or problems. Bravo, industrial pioneers!

However, that’s no longer good enough, and that’s where digital twins come in.  In a WSJ blog post this week, General Electric’s William Ruh, my fav IoT visionary/pragmatist, talked about how the company, as part of its “Industrial Internet” transformation, is making digital twins a key tool:

“Every product out there will have one, and there will be an ability to connect a system, or systems of digital twins, easily. The digital twin is a model of an asset, a product such as a jet engine or a model of the blades in a jet engine. Sensors on those blades pull the data off and feed them into the digital twin. The digital twin is kept current with the data that is run off the sensors. It is in sync with the reality of the blade. Now we can ask what is the best time to change the blade, how the blade performs, options to get greater efficiency.”

Proof of the pudding?

Ruh says they’ve created a wind turbine and twin they call the “Digital Windfarm,” which generates 20% more electricity than a nearby conventional turbine.

PTC is also working on digital twins. According to the company’s Executive VP for Digital Twin, Mike Campbell,:  “It’s a model that uniquely represents a physical occurrence in the real world. This one-­to­one mapping is important. You create a relationship between the digital data and a unique product occurrence from a variety of sources: sensors, enterprise data on how it was made, what its configuration was, its geometry, how it is being used, and how it is being serviced.”

Predix

The key to digital twins is GE’s “Predix” predictive analytics software platform, which the company is extending across its entire product line. As always, the key is a constant stream of real-time data:

“weather, component messages, service reports, performance of similar models in GE’s fleets—a predictive model is built and the data collected is turned into actionable insights. This model can perform advanced planning, such as forecasting a ‘plan of the day’ for turbine operation, determining a highly efficient strategy to execute planned maintenance activities, and providing warnings about upcoming unplanned maintenance events, all of which ultimately generates more output and revenue for the customer.”

Digital doppelgängers

Here’s where the really sci-fi part kicks in: Ruh also predicts (Predix??, LOL) that GE’s medical division will soon create digital twins for you and me — at birth!

“I believe we will have a digital twin at birth, and it will take data off of the sensors everybody is running, and that digital twin will predict things for us about disease and cancer and other things. I believe we will end up with health care being the ultimate digital twin. Without it, I believe we will have data but with no outcome, or value.”

And, frankly, there’s also a spooky aspect to what GE’s doing, working with retailers to create psychographic models of customers based on their buying preferences. I’m dubious on that account: I do appreciate some suggestion about what might interest me, especially books, based on my past purchases. On the other hand, a couple of weeks I shopped for — but didn’t buy — biz cards online. Now, I get AdSense ads for these cards everywhere — even on this homepage (sorry for stuff that isn’t IoT, dear reader) Get over it, OK? Count me out when it get’s down to really granular psychographic profiles — too many risks with privacy and security.

I suspect digital twins will become a staple of the IoT, yielding critical real-time info on product status that will enable predictive maintenance and, as Ruh has written elsewhere, speeding the product upgrade process because, for the first time, designers will know exactly how the products are functioning in the field, as opposed to the total lack of information that used to be the norm. Stay tuned.

Day 2, Live Blogging from SAP’s IoT2016 Internet of Things Event

I’m up first this morning, & hope to lift attendees’ vision of what can be achieved with the Internet of Things: sure, cool devices and greater efficiency are great, but there’s so much more: how about total transformation of businesses and the economy, to make them more creative, precise, and even environmentally sustainable?

I’ve just revised my 4 IoT Essential Truths, the heart of my presentation, bumping make privacy and security the highest priority from number 4 to number 1 because of the factors I cited last week. I’ll draw on my background in crisis management to explain to the engineers in attendance, who I’ve found have a problem with accepting fear because it isn’t fact-based, how losing public trust could kill the IoT Golden Goose.

I’ll go on to explain the three other Essential Truths:

  • Share Data (instead of hoarding it, as in the past)
  • Close the Loop (feed that data back so there are no loose ends, and devices become self-regulating
  • Rethink Products so they will contain sensors to feed back data about the products’ real-time status, and/or can now be marketed not as products that are simply sold, but services that both provide additional benefits to customers while also creating new revenue streams for the manufacturer.

I’ll stress that these aren’t just truisms, but really difficult paradigm shifts to accomplish. They’re worth it, however, because making these changes a reality will allow us to leave behind old hierarchical and linear organizational structures that made sense in an age of limited and hard-t0-share data. Instead, we can follow the lead of W.L. Gore and its cyclical “lattice management,” in which — for the first time — everyone can get the real-time data they need to do their jobs better and make better decisions. Equally important, everyone can share this data in real time, breaking down information silos and encouraging collaboration, both within a company and with its supply chain and distribution network — and even with customers.

Amen.


Back with Michael Lynch of SAP!

  • we can change the world and enhance our understanding greater than ever.
  • can help us solve global warming.
  • great case study on heavy truck predictive maintenance in GoldCorp Canadian gold mines.
  • IoT maturity curve:
  • Critical question: who are you in a connected future?  Can lead to re-imaginging your corporate role.
  • UnderArmour is now embedding monitors into clothing.
  • Tennant makes cleaning equipment. Big problem with lost machines, now can find them quickly.
  • Asset Intelligence Network — Facebook for heavy equipment — SAP will launch soon.
  • example of a tractor company that’s moving to a “solutions-based enterprise.” What is the smallest increment of what you do that you could charge customer. Like the turbine companies charging for thrust.

SAP strategy:

  • “Our solution strategy is to grow by IoT-enabling core industry, and providing next generation solutions for millions of human users, while expanding our platform market by adding devices.”
  • they have an amazing next-gen. digital platform. More data flow through there than Alibaba & Amazon!
  • CenterPoint Energy — correlating all sorts of data such as smart meter & weather. Better forecasting.
  • Doing a new home-based diabetes monitoring system with Roche.
  • Doing a lot of predictive maintenance.
  • Connected mining.
  • Building blocks:
    • Connect (SAP IoT Starter Kit)
    • Transform
    • Re-imagine

Ending the day with my presentation on first steps for companies to take in beginning an IoT strategy, with special emphasis on applying analytical tools such as HANA to your current operations, and building “precision operations” by giving everyone who needs it real-time data to improve their job performance and decision-making. Much of the presentation will focus on GE, with its “Brilliant Factories” initiative!

Live Blogging from SAP’s HANA IoT event

Hmm. Never been to Vegas before: seems designed to bring out the New England Puritan in me. I’ll pass on opulence, thank you very much…

 SAP HANA/ IoT Conference

SAP HANA/ IoT Conference

Up front, very interested in a handout from Deloitte, “Beyond Linear,” which really is in line with speech I’ll give here tomorrow on the IoT “Essential Truths,” in which one of my four key points will be that we need to abandon the old, linear flow of data for a continuous cyclical one.  According to Deloitte’s Jag Bandia,

“Among users with a complete, 360-degree view of relevant data for each specific process can help avoid missed opportunities. The ‘all data’ approach means relevant data can and should come from anywhere — any application, any system, any process — not just the traditional channels associated with the process.”

Bravo!

First speaker: SAP Global Customers Operations CTO Ifran Khan:

  • “digital disruption”: catalyst for change & imperative to go digital.
  • digression about running going digital (I put in my 30 minutes this morning!!!), creating a totally new way of exercising (fits beautifully with “Smart Aging“!)
  • new macro tech trends are enabling digitalizations: hyper-connectivity, super computing, cloud computing, smart world, and cybersecurity (horrifying stat about how many USB sticks were left in dry cleaning!)
  • those who don’t go digital will go under…. (like John Chambers’ warning about IoT).
  • new opportunities in wide range of industries
  • need new digital architectures — “driving locality of data, integrated as deep as possible into the engine.
  • HOLY COW! He starts talking about a circular, digitally-centered concept, with a buckyball visual.  Yikes: great minds think alike.
  • sez HANA allows a single platform for all digital enterprise computing.
  • running things in real-time, with no latency — music to my ears!

Jayne Landry, SAP:

  • too few in enterprise have real-time access to analytics — oh yeah!
  • “analytics for everyone”
  • “own the outcome”
  • “be the one to know”
  • SAP Cloud for Analytics — “all analytics capabilities in one product.” real-time, embedded, consumer-grade user experience, cloud-based. Looking forward to seeing this one!
  • “Digital Boardroom” — instant insight. Same info available to board also available to shopfloor — oh yeah — democratizing data!

Very funny bit by Ty Miller on using SAP Cloud for Analytics to analyze Area 51 data. Woo Woo!

Ifran Khan again:

  • how to bring it to the masses? Because it’s expensive and difficult to maintain on the premises, extend and build in cloud! Add new “micro services” to SAP HANA cloud platform: SAP Application Integration, Tax Service, Procurement, Customer Engagement, Predictive, and, ta da, IoT.
  • video of Hamburg Port Authority. Absolutely love that and what they’re doing with construction sites!

Jan Jackman, IBM:

  • customers want speed. Cloud is essential. IBM & HANA are partners in cloud…

This guy is sooo neat: Michael Lynch, IoT Extended Supply Chain for SAP (and former opera student!):

  • “Connecting information, people, and things is greatest resource ever to drive insightful action.”
  • “big deal is the big data processing potential is real & chips are cheaper, so you can build actual business solutions”
  • STILL gmbh (forklifts) great example!
  • phase 1: connect w/ billions of internet-enabled things to gain new insights
  • phase II: transform the way you make decisions and take action
  • phase III: re-imagine your customer’s experience.
  • they do design thinking workshops — would luv one of those!
  • great paradigm shift: Hagleitner commercial bathroom supplies
  • Kaeser compressors: re-imaging customer service
  • working with several German car companies on enabling connected driving
  • once again, the  Hamburg Port Authority!!

SAP’s strategy:

  • offers IoT apps. platforms, and facilitates extensions of IoT solutions
  • work closely with Siemens: he’s talked with them about turbine business.
  • SAP has several solutions for IoT
  • Cloud-based predictive maintenance!
  • “social network for assets”: Asset Intelligence Network
  • They did the Harley York PA plant! — one line, 21-day per bike to 6 hrs.  (displays all around the plant with KPIs)
  • 5 layers of connectivity in manufacturing “shop floor to top floor”  SAP Connected Manufacturing
  • They have a IoT Starter Kit — neat
  • SAP Manufacturing Integration and Intelligence
  • SAP Plant Connectivity
  • SAP Event Stream Processor
  • SAP MobiLink
  • SAP SQL Anywhere/SAP ultralite
  • 3rd Party IoT Device Cloud (had never heard of “device cloud” concept — specialize in various industry verticals).

“Becoming an Insight-Driven Organization”  Speakers: Jag Bandla and Chris Dinkel of Deloitte.

  • Deloitte is using these techniques internally to make Deloitte “insight-driven”
  • “an insight-driven organization (IDO) is one which embeds analysis, data, and reasoning into every step of the decision-making process.” music to my ears!
  • emphasis on actionable insight
  • “when humans rely on their own experiences and knowledge, augmented by a stream of analytics-driven insights, the impact on value can be exponential”
  • benefits to becoming an IDO:
    • faster decisions
    • increased revenue
    • decreased cost of decision making
  • challenges:
    • lack of proper tech to capture
    • oooh: leaders who don’t understand the data…
  • 5 enabling capabilities:
    • strategy
    • people
    • process
    • data
    • tech
  • developing vision for analytics
  • Key questions: (only get a few..)
    • what are key purchase drivers for our customers?
    • how should we promote customer loyalty?
    • what customer sentiments are being expressed on social media?
    • how much should we invest in innovation?
  • Value drivers:
    • strategic alignment
    • revenue growth
    • cost reduction
    • margin improvement
    • tech
    • regulation/compliance
  • Organize for success (hmm: I don’t agree with any of these: want to decentralize while everyone is linked on a real-time basis):
    • centralized (don’t like this one, with all analyzed in one central group.. decentralize and empower!)
    • consulting: analysts are centralized, but act as internal consultants
    • center of excellence: central entity coordinates community of analysts across company
    • functional: analysts in functions such as marketing & supply chain
    • dispersed: analysts scattered across organization, little coordination
  • Hire right people! “Professionals who can deliver data-backed insights that create business value — and not just crunch numbers — are the lifeblood of an Insight-Driven Organization”
    • strong quantitative skills
    • strong biz & content skills (understand content and context)
    • strong data modeling & management skills
    • strong IT skills
    • strong creative design skills (yea: techies often overlook the cool design guys & gals)
  • Change the mindset (critical, IMHO!):
    • Communicate: build compelling picture of future to steer people in right direction.
    • Advocate: develop cohort of leaders to advocate for program.
    • Active Engagement: engage key figures to create pull for the program
    • Mobilize: mobilize right team across the organization.
  • How do you actually do it? 
    • improve insight-to-impact with “Exponential Biz Processes” — must rebuild existing business processes!  Involves digital user experience, biz process management, enterprise science, all data, and IT modernization.
      • re-engineer processes from ground up
      • develop intuitive, smart processes
      • enable exception-based management
  • Data:
    • “dark data:” digital exhaust, etc. might be hidden somewhere, but still actionable.
      • they use it for IoT: predictive personalization (not sure I get that straight…).
    • want to have well-defined data governance organization: standards, data quality, etc.
  • Technology: digital core (workforce engagement, big data & IoT, supplier collaboration, customer experience
    • HANA
  • Switch to digital delivery: visualizations are key!
    • allow for faster observations of trends & patterns
    • improve understanding & retention of info
    • empower embedded feeds and user engagement

 

IoT and the Data-Driven Enterprise: Bob Mahoney, Red Hat & Sid Sipes, Sr. Director of Edge Computing, SAP

  • What’s driving enterprise IoT?
    • more connected devices
    • non-traditional interactions such as M2M and H2M
    • ubiquitous internet connectivity
    • affordable bandwidth
    • cloud computing
    • standards-based and open-source software
  • Biz benefits:
    • economic gains
    • new revenue streams (such as sale of jet turbine data)
    • regulatory compliance
    • efficiencies and productivity
    • ecological impact
    • customer satisfaction
  • example of Positive Train Control systems to avert collisions. Now, that can be replaced by “smarter train tech”
  • SAP and edge computing (can’t move all of HANA to edge, but..)
    • improve security in transmission
    • reduce bandwidth need
    • what if connection goes down
    • actual analysis at the edge
    • allows much quicker response than sending it to corporate, analyzing & send it back
    • keep it simple
    • focused on, but not limited to, IoT
  • they can run SQL anywhere on IoT, including edge: SQL Anywhere
  • Red Hat & SAP doing interesting combination for retail, with iBeacons, video heat map & location tracking: yields real insights into consumer behavior.