IoT: LiveBlogging PTC’s LiveWorx

Got here a little late for CEO Jim Heppelman’s keynote, so here goes!

  • Vuforia: digital twin gives you everything needed for merging digital “decorations” on the physical object
  • Unique perspective: AR takes digital back to the physical. Can understand & make better decisions.
  • Virtual reality would allow much of the same. Add in 3-D printing, etc.
  • “IoT is PLM.” Says PTC might be only company prepared to do both.
  • Says their logo captures the merger of digital and physical.
  • Case studies: they partnered with Bosch’s Rexroth division. Cytropac built-in IoT connectivity–  used Creo. Full life-cycle management. Can identify patterns of usage, etc. Using PTC’s analytics capacity, machine learning analysis. Want to improve cooling efficiency (it was high at first). Model-based digital twin to monitor product in field, then design an upgrade. How can they increase cooling efficiency 30%??  Came up with new design to optimize water channel that they will build in using 3-D printing. Cool (literally!). 43% increase in cooling efficiency. The design change results in new recommendation engine that helps in sales. Replaced operating manual with 3-D that anyone can understand. (BTW: very cool stagecraft: Heppelmann walks around stage interviewing the Rexroth design team at their workstations).
  • Ooh: getting citizen developers involved!!!  Speeds process, flexibility. App shows how products are actually operating in the field. Lets sales be much more proactive in field. Reinventing CRM.  May no longer need a physical showroom — just put on the AR headset.
  • Connectivity between all assets. The digital twin is identical, not fraternal. Brings AR into factory. They can merge new manufacturing equipment with legacy ones that didn’t have connectivity.  ABB has cloud-based retrofit sensors. Thingworx can connect almost anything, makes Industry 4.0 possible. Amazing demo of a simulated 3-D disassembly and replacement.
  • Hmmm — closing graphic of his preso is a constantly rotating circular one. Anticipating my “circular company” talk on Wednesday????

Closing the Loop With Enterprise Change Management. Lewis Lawrence of Weatherford, services to petroleum industry:

  • former engineer. In charge of Weatherford’s Windchill installation (they also use Creo).
  • hard hit by the drop in gas prices
  • constant state of flux
  • 15 years of constant evolution
  • their mantra: design anywhere, build anywhere.
  • enterprise change — not just engineering.
  • hmmm: according to his graphics, their whole change process is linear. IMHO, that’s obsolete in era of constant change: must evolve to cyclical. Ponderous process…
  • collect data: anything can be added, if it’s latest

The IoT Can Even Help You Breathe Better: GCE Group’s Zen-O portable oxygen concentrator for people with respiratory problems (not actually launched yet):

  • InVMA has built IoT application using ThingWorx to let patients, docs and service providers carefully monitor data
  • GCE made radical change from their traditional business in gas control devices. Zen-O is in the consumer markets. They were very interested in connected products — especially since their key competitor launched one!
  • Goals: predictive maintenance, improved patient care, asset management, development insight.
  • Design process very collaborative, with many partners.

The Digital Value Chain: GE’s Manufacturing Journey. Robert Ibe, global IT Engineering Leader at GE Industrial Solutions:

  • supports Brilliant Factory program.
  • they design and manufacture electrical distribution equipment, 30 factories worldwide.
  • “wing-to-wing” integrated process
  • had a highly complex, obsolete legacy
  • started in 2014: they were still running really old CAD technology. 14 CAD repositories that didn’t talk to each other. 15 year old PLM software. No confidence in any of data they had.
  • They began change with PLM — that’s where the digital thread begins.  PLM is foundation for their transformation.
  • PLM misunderstood: use it to map out cohesive, cross-functional, model-based strategy. Highlight relevance of “design anywhere — manufacture anywhere.” Make PLM master of your domain. Make it critical to commercial & manufacturing. Advertise benefits & value.
  • Whole strategy based on CAD. Windchill heart of the process.
  • Rate of implementation faster than business can keep up with!
  • Process: implementation approach:
    • design systems integration
    • model-based design
    • digital thread
    • manufacturing productivity.
  • common enterprise PLM framework
  • within Windchill, can see entire “digital bill of documents.”
  • focused on becoming critical for supply chain.
  • total shift from their paper-based legacy.
  • integrated regulatory compliance with every step of design.

It’s Not Your Grandmother’s IoT: Blockchain and IoT Morph Into An Emerging Technology Powerhouse:

  • Example of claims for fair-traded coffee that I’ve used in past

Finding Business Value in IoT panel:

  • Bayer — been in IoT (injection devices for medicine) for 7 years.  Reduced a lot of parts inventory.
  • Remote control of vending machines replaces paper & pencil
  • Your team needs to evangelize for biz benefits of IoT
  • New Opportunities:
    • vision and language
    • interacting with physical world
    • problem solving.
  • Didn’t know!  Skype can do real-time translation.
  • Google Deep Mind team worked internally, cut energy costs at its server farms. 15% energy reduction.
  • Digital progress makes economic pie bigger, BUT  most people aren’t benefitting economicallly. Some may be worse off. “Great decoupling” — mushrooming economic gap. One reason is that tech affects different groups differently.
  • “Entirely possible to create inclusive prosperity” through tech!

 

WEDNESDAY

Delivering Smart City Solutions and an Open Citywide Platform to Accelerate Economic Growth and Promote New Solution Innovation, Scott McCarley, PTC:

  • $40 trillion potential benefits from smart cities
  • 1st example & starting point for many cities, is smart lightpoles. Major savings plus value added. Real benefit is building on that, with systems of systems (water, traffic, energy, etc.) — the systems don’t operate in isolation.
  • Future buildings may have built-in batteries to add to power supply. Water reclamation, etc.
  • Cities are focused on KPIs across all target markets.
  • Cornerstone systems for a city: power & grid, water/wastewater, building management, city services & infrastructure.
  • Leveraging ThingWorx to address these needs:
    • deploy out-of-box IoT solutions from a ThingWorx Solution Provider: All examples, include Aquamatix, DEPsys (grid), Sensus, All Traffic, Smoove (bike sharing).
    • leverage ThingWorx to rapidly develop new IoT solutions.
      connect to any device, rapidly develop applications, visually model systems, quickly develop new apps. Augmented reality will play a role!
    • create role-based dashboards:
      one for your own operations, another for city.
    • bring the platform to create a citywide platform.
      Sum of connected physical assets, communication networks, and smart city solutions.

Digital Supply Networks: The Smart Factory. Steven Shepley, Deloitte:

  • 3 types of systems: 1) foundational visualization solutions:  KPIs, etc. 2) advanced analytical solutions 3) cyber-physical solutions.
  • Priority smart factory solutions:
    • advanced planning (risk-adjusted MRP), dynamic sequencing, cross network.
    • value chain integration: signal-based customer/supplies integration, dynamic distribution routing/tracking, digital twin.
    • asset efficiency: predictive maintenance, real-time asset tracking intelligence, energy management
    • labor productivity: robotic and cognitive automation, augmented reality-driven efficiency, real-time safety monitoring
    • exponential tech: 3-D printing, drones, flexible robots.
  • How to be successful: think big, start small, scale fast
  • Act differently: multi-disciplinary teams,
  • sensors getting simpler, easier to connect & retrofit. National Connectors particularly good.

Global Smart Home, Smart Enterprise, and Smart Cities IoT Use Cases. Ken Herron, Unified InBox, Pte.

  • new focus on customer
  • H2M: human to machine communication is THE key to IoT success. Respect their interests.
  • Austin TX: “robot whisperer” — industrial robot company. Their robots aging out, getting out of tune, etc. Predictive analytics anticipates problems.
  • Stuttgart: connected cow — if one cow is getting sick, may spread to entire herd. Intervene.
  • Kuala Lumpur: building bot — things such as paper towel dispensers communicating with management.
  • London: Concierge chatbot — shopper browsing can chat with assistant on combining outfits.
  • Dubai: smart camera. Help find your car in mega-shopping center: read license plates, message the camera, it gives you map to the car.
  • Singapore: Shout — for natural disasters. Walks the person making the alert through process, confirms choices.
  • Stuttgart: Feinstaubalarm — occasional very bad airborne dust at certain times. Tells people with lung problems options, such as taking mass transit.
  • Singapore: Smart appliances — I always thought smart fridge was stupid, but in-fridge camera that lets you shoot a “shelfie” does make sense
  • Fulda Germany: smart clothing for military & police: full record of personal health at the moment. Neat!
  • Noida India — smart sneakers can automatically post your run results (see connection to my SmartAging concept)

Business Impact of IoT, Eric Schaeffer, Accenture:

  • Michelin delivery trucks totally reinvented, major fuel savings, other benefits.
  • manufacturing being deconstructed
  • smart, connected products are causing it
  • industrial companies must begin transformation today

Thingworx: Platform for Management Revolution. W. David Stephenson, Stephenson Strategies:

Here are key points from my presentation about how the IoT can allow radical transformation from linear & hierarchical companies to IoT-centric “circular companies” (my entire presentation can be found here):

  • The IoT can be the platform for dramatic management change that was impossible in the past.
  • Making this change requires an extraordinary shift in management thinking: from hierarchy to collaboration.
  • The results will be worth the effort: not only more efficiency & precision, but also new creativity, revenue streams, & customer loyalty. 
  • In short, it will allow total transformation!

Kickstarting America’s Digital Transformation. Aneesh Chopra & Nicholas Thompson!

  • on day one, Our President (not the buffoon) told Chopra he wanted default to be switch from closed to open government & data.
  • National Wireless Initiative: became law 1 yr. after it was introduced.  Nationwide interoperable, secure wireless system.
  • Obama wanted to harness power of Internet to grow the economy. Talked to CIO of P & G, who was focused on opening up the company to get ideas from outside.
  • Thompson big on open data, but he thinks a lot more now is closed, we’re going wrong way.
  • Interesting example of getting down cost of solar to $1 per installed watt!!
  • Thompson: growing feeling that technology isn’t serving us economically. Chopra: need to democratize the benefits.
  • Chopra talking about opening up Labor Dept. data to lead to creative job opportunities for underserved.

 

 

 

 

Sound’s emerging IoT role

Could sound be a critical IoT tool?

I’d fixated in the past on a metaphor I called “Collective Blindness,” as a way to explain how difficult it used to be to get accurate, real-time data about how a whole range of things, from tractors to your body, were actually working (or not) because we had no way to penetrate the surface of these objects as they were used. As a result, we created some not-so-great work-arounds to cope with this lack of information.

Then along came the IoT, and no more collective blindness!

Now I’m belatedly learning about some exciting efforts to use another sense, sound, for the IoT.  Most prominent, of course, is Amazon’s Alexa and her buddies (BTW, when I ask Siri if she knows Alexa, her response was an elusive “this is about you, not me,” LOL), but I’ve found a variety of start-ups pursuing quite different aspects of sound. They nicely illustrate the variety of ways sound might be used.

technician using Auguscope to detect   sound irregularities in machinery

First is Augury.

What I particularly love about their device and accompanying smartphone app it is that they are just about the lowest-cost, easiest-to-use, rapid payback industrial IoT devices I can think of.

That makes them a great choice to begin an incremental approach to the IoT, testing the waters by some measures that can be implemented quickly, pay rapid bottom-line benefits and therefore may lure skeptical senior management who might then be willing to then try bolder measures   (this incremental approach was what I outlined in my Managing the Internet of Things Revolution e-guide for SAP, and I’ll be doing a webinar on the approach in April with Mendix, which makes a nifty no-code, low-code tool).

Instead of requiring built-in sensors, an Auguscope is a hand-held device that plant personnel can carry anywhere in the building it’s needed to analyze how the HVAC system is working. A magnetic sensor temporarily attaches to the machine and the data flows from the Auguscope to the cloud where it is analyzed to see if the sound is deviating from pre-recorded normal sounds, indicating maintenance is needed. Consistent with other IoT products that are marketed as services instead of sold, it uses a “Diagnostics as a Service” model, so there are no up-front costs and customers pay as they go. The company hopes that the technology will eventually be built into household appliances such as washers and dryers.

Presenso is the second company using sound to enable predictive maintenance.  It is sophisticated cloud-based software that takes data from a wide range of already-installed sensors and interprets any kind of data: sound, temperature, voltage, etc.  It builds a model of the machine’s normal operating data and then creates visualizations when the data varies from the norm. Presenso’s power comes from combining artificial intelligence and big data.

Finally, and most creative is Chirp (hmm: Chrome wouldn’t let me enter their site, which it said was insecure. Here’s the URL:www.chirp.io/ — try at your own risk…) , a UK company that transmits data using audio clips that really sound like chirps. It’s amazing!  Check out this video of an app in India that uses sound to pay fares on the country’s version of Uber:


Another Chirp app is a godsend to all who forget Wi-Fi passwords: your phone “chirps” a secure access code, allowing you to join the network automatically.   The company has released iOS and Android versions.  As VentureBeat reported:

“Each chirp lasts a couple of seconds, and the receiving device “listens” for a handful of notes played quickly in a certain order, in a certain range, and at a certain speed. While there are other easy ways of sharing files and data in real-time, such as Bluetooth, Chirp doesn’t require devices to pair in advance, there is no need to set up an account, and it’s ultimately a much quicker way of sharing files.

“That said, with Chirp, the file itself isn’t sent peer-to-peer, and the data doesn’t actually travel directly via audio. Chirp merely decodes and encodes the file, with the associated sound serving as the delivery mechanism. A link is generated for the recipient(s) to access it on Chirp’s servers, but the process from sending to receiving is seamless and near-instant.”

In terms of IoT applications, it could also connect with physical objects (hmm: retailing uses??). The Chirp platform is so cool that I suspect it will be a global hit (the company says it’s already used in 90 countries).

So, I’ve had my senses opened: from now on, I’ll add voice and sound in general to the list of cool IoT attributes.  Because voice and sound are so ubiquitous, they really meet the late Mark Weiser’s test:  “the most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it.” What could be more woven into the fabric of everyday life than sound — and, potentially, more valuable?


BTW: let me put in a plug for another IoT voice product. During the past two months, I recorded 7 hours of my voice speaking a very strange mishmash of sentences drawn from, among others, Little Women, Jack London’s Call of the Wild, The Wizard of Oz, and The Velveteen Rabbit (I worried about the she-wolf sneaking up on Meg, LOL….). Using the algorithms developed for Alexa, the Vocal ID team will slice and dice my voice and create a natural sounding one for someone who cannot speak due to a birth defect or disease.  I hope you’ll join me in volunteering for this wonderful program.

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!

 

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.

Siemens’s MindSphere: from automation to digitalization

Perhaps the most important component of a successful IoT transformation is building it on a robust platform, because that alone can let your company go beyond random IoT experiments to achieve an integrated IoT strategy that can add new components systematically and create synergistic benefits by combining the various aspects of the program.

A good starting point for discussion of such platforms is a description of the eight key platform components as detailed by IoT Analytics:

  1. “Connectivity & normalization: brings different protocols and different data formats into one ‘software’  interface ensuring accurate data streaming and interaction with all devices.
  2. Device management: ensures the connected ‘things’ are working properly, seamlessly running patches and updates for software and applications running on the device or edge gateways.
  3. Database: scalable storage of device data brings the requirements for hybrid cloud-based databases to a new level in terms of data volume, variety, velocity and veracity.
  4. Processing & action management: brings data to life with rule-based event-action-triggers enabling execution of ‘smart’ actions based on specific sensor data.
  5. Analytics: performs a range of complex analysis from basic data clustering and deep machine learning to predictive analytics extracting the most value out of the IoT data-stream.
  6. Visualization: enables humans to see patterns and observe trends from visualization dashboards where data is vividly portrayed through line-, stacked-, or pie charts, 2D- or even 3D-models.
  7. Additional tools: allow IoT developers prototype, test and market the IoT use case creating platform ecosystem apps for visualizing, managing and controlling connected devices.
  8. External interfaces: integrate with 3rd-party systems and the rest of the wider IT-ecosystem via built-in application programming interfaces (API), software development kits (SDK), and gateways.”

Despite (or because of, the complexity,) I think this is a decent description, because a robust IoT platf0rm really must encompass so many functions. The eight points give a basis for deciding whether what a company hawks as an IoT platform really deserves that title or really constitutes only part of the necessary whole (Aside: it’s also a great illustration of my Essential Truth that, instead of hoarding data as in the past, we must begin to ask “who else can use this data?” either inside the company or, potentially, outside, then use technology such as an IoT platform to integrate all those data uses productively.).

During my recent Barcelona trip (disclaimer: Siemens paid my way and arranged special access to some of its key decision makers, but made no attempt to limit my editorial judgment) I interviewed the company’s Chief Strategy Officer, Dr. Horst J. Kayser, who made it clear (as I mentioned in my earlier post about Siemens) that one of the advantages the company has over pure-play software firms is that it can apply its software offerings internally first and tweak them there, because of its 169-year heritage as a manufacturer, and “sits on a vast program of automation.”

Siemens’s IoT platform, MindSphere  is a collaboration with SAP, using the latter’s vast HANA cloud.  It ties together all components of Siemens’s IoT offerings, including data analytics, connectivity capabilities, developers’ tools, applications and services. MindSphere focuses on monitoring manufacturing assets’ real-time status, to evaluate and use customers’ data, producing insights that can cut production costs, improve performance, and even switch to predictive maintenance. Its Mind Connect Nano collects data from the assets and transferring it to MindSphere.

The “digital twin” is integrated throughout the MindSphere platform. Kayser says that “there’s a digital twin of the entire process, from conception through the manufacturing and maintenance, and it feeds the data back into the model.” In fact,  one dramatic example of the concept in action is the new Maserati Ghibli, created in 16 months instead of 30 — almost 50% less time than for prior models.  Using the Teamcenter PLM software, the team was able to virtually develop and extensively test the car before anything was created physically.

IMHO, Mindsphere and components such as Teamware might really be the key to actualizing my dream of the circular company, in this case with the IoT-based real-time digital twin at the heart of the enterprise — as Kayser said, “everything is done through one consistent data set.)” I hope to explore my concept, and the benefits I think it can produce, more with the Siemens strategists in the future!  I tried the idea out on several of them in Barcelona, and no one laughed, so we’ll see…

As with the company’s rail digitization services that I mentioned in my earlier post, there’s an in-house guinea pig for MindSphere as well: the company’s “Factory of the Future” in Amberg. The plant manufactures Simatic controllers, the key to the company’s automation products and services, to which digitalization is now being added as part of the company’s Industrie 4.0 IoT plan for manufacturing (paralleling GE’s “Industrial Internet.”). As you may be aware, Siemens’s efforts in this area are a subset of a formal German government/industry initiative — I  doubt seriously we’ll see this in the U.S. under Trump.

The results of digitalization at Amberg are astonishing by any measure, especially the ultimate accomplishment: a  99.9988 percent rate (no typo!!), which is even more incredible when you realize this is not mass production with long, uniform production runs: the plant manufactures more than 1,000 varieties of the controllers, with a total volume of 12 million Simatic products each year, or about one per second.  Here are some of the other benefits of what they call an emphasis on optimizing the entire value chain:

  • shorter delivery time: 24 hours from order.
  • time to market reduced by up to 50%.
  • cost savings of up to 25%

Of course there are several other robust IoT platforms, including GE’s Predix and PTC’s Thingworx, but my analysis shows that Mindsphere meets IoT Analytics’ criteria, and, combined with the company’s long background in manufacturing and automation, should make it a real player in the industrial internet. Bravo!

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.

High-speed 3D Printer & IoT Could Really Revolutionize Design & Manufacturing

There’s a new high-speed 3D printer on the horizon which, coupled with the IoT, could really revolutionize product design and manufacturing.

I’ve raved in the past about 3D printing’s revolutionary potential, but I’ll admit I was still thinking primarily in terms of rapid prototyping and one-off repair parts.  Now, according to Bloomberg, HP is going to transfer its ink-jet printer expertise to the 3D printer field, with a $130,000 model set for release later this year that, for the first time, could make 3D printing practical and affordable for large-scale manufacturing, with “parts at half the expense and at least 10 times faster than rival printers — and likely [using] lower-cost materials.”

Combined with the IoT, that would go a long way toward making my “precision manufacturing” vision a reality, with benefits including less waste, streamlined products (a single part replacing multiple ones that previously had to be combined into the final configuration),  factories that are less reliant on outside parts and encouraging mass customization of products that would delight customers. 

Customers are already lining up, and see manufacturing-scale 3D printing as a game-changer:

Jabil Circuit Inc. [itself a digital supply-chain innovator] plans to be an early adopter of HP’s device, printing end plastic parts for aerospace, auto and industrial applications that it currently makes using processes such as injection molding, John Dulchinos, vice president of digital manufacturing at the electronics-manufacturing service provider, said in an interview.

“‘We have use cases in each of these segments,’ Dulchinos said. ‘Parts that are in hundreds or thousands or tens of thousands of units — it’s cheaper to 3D print them than mold them.’”

Other HP partners in the venture include BMW, Nike, and and Johnson & Johnson. The article cites research by Wohlers Associates predicting that manufacturing using 3D printers could “eventually grab at least 5 percent of the worldwide manufacturing economy, and translate into $640 billion in annual sales.”

3D Systems is also making the transition to large-scale 3D printing.

As I’ve written before in regard to GE’s leadership in the field, toss in some nanotech on the side, and you’ve really got something.

 

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!