Liveblogging #IoT @ #Liveworx 2016 — day 2

Colin Angle, CEO, iRobot:

  • smart home: people have hard time learning how to use current generation of smart home devices. Unacceptable delay in activation. we need “just live your life, and the house does the right thing.” Shouldn’t have to pull out phone.  Will be aware of your location, act naturally.
  • “Need metaphor of the room to exist” — and robot will do that. Cool: Future iRobot could do that while doing its own job. New generation of iRobot has mapped 1/2 billion sq. feet in less than a year.
  • Would be a lot cooler if you can just buy a smart bulb, screw it in, and it would just work without having to do anything.
  • Pogue: how do you deal with the criticism that iRobot LOOKS as if it is cleaning randomly? Angle: Customers just cared that it actually did the job. “Just make it clean better” — I don’t care how long it takes, because I’m not there.
  • Next generation of robotics will be manipulation.
  • Angle: “if you’re worried about AI taking over, don’t worry about me, worry about the marketing guys.  … I just vacuum floors.”  This is so funny: “I used to be a self-respecting robot scientist, but it wasn’t until I became a vacuum salesman that I made any money.”

Eric Schaeffer, Accenture:

  • significant change, affecting both demand and supply. No industry unaffected.
  • to remain competitive, countries and companies will have to be at edge of innovation. Faster than ever.
  • strategies focused on cost-cutting less effective than emphasis on new products
  • World Economic Forum looking at impact of internet on business and society
    • 1st report: industrial internet of things & how it would transform industries. Adoption accelerating.
    • 3-4 yrs. from now, major structural changes, massively transformative (but you can begin w/ incremental change).
    • only 7% of 500 companies surveyed said they had comprehensive IoT strategy.
  • illustrations: water distribution network, dramatic time savings in time to install plane seats.
  • where’s the value? integrate smart products and back-office systems for IoT and As-a-Service Enabled approach.
  • Moving to multi-dimensional definition of a product.
  • Companies will become platforms
  • Sales models will move to as-a-service
  • They have identified 30% “uplift” for generic company. Specific improvements from digitization of the enterprise varies from one industry to another
  • Examples:
    • a Euro telecoms company: using a Google Glass-style product for field technicians at job sites and to capture data in field. 20-40% productivity gains.
    • pay-per-use vehicle services: a French tire company that wants to create 1 b Euro biz in “mobility.” — from selling tires to selling outcomes! Money-back guarantee. 2.5 liters reduction in gas use for 100 km driven — huge reduction in trucking companies. 
    • connected homes: working with multiple clients to define what the services will be.
  • Scope and scale of changes acute.
  • Recent survey: 42% of companies have said improvement has been in how they interact with customers.
  • Leading companies moving from product push to creating value by:
    • focusing on higher value solutions
    • focusing on enhanced experience
    • focusing on customer outcomes.
  • still focus on the what, but also the how!
  • dramatic shift to “Total Experience Innovation.”
    • Be Solution Centric: all centered on customer
    • Build an Insight Platform: continuously renew
    • Drive Pivotal Leaders: find right leaders.
  • Examples:
    • ALS patients: helping them regain control of their lives through wearables, displays, etc. done with Phillips.
    • industrial equipment manufacturer: breaking silos. Innovation digital factory: to instill connectivity into the biz, and build outcome-based offers, and increasing level of engagement with customers.
  • Future:
    • implantable technologies
    • wearable internet
    • IoT everywhere
    • connected home
    • driverless cars
    • robotics
    • sharing economy

Here’s the main event!  Prof. Michael Porter, iRobot’s Colin Angle & PTC’s Jim Heppelmann on IoT transformation:

  • Porter & Heppelmann’s research collaboration on IoT: he was a PTC board member. “Magical opportunity”
  • Porter: both products and internal operations are changing due to IoT
  • Porter: still in early stages of industrial conversion
  • Porter: IoT is wrong term: real emphasis is change in products and what they can do. Embedding in service companies. Every service business will be affected.
  • Heppelmann: the IoT also affects how the customer operates the product.
  • Angle: iRobot has jumped into IoT with both feet. Touches every aspect of their biz.
  • Heppelmann: missed the human element in this. That led to their AR initiative, so people could relate to the new products in ways that are both physical and digital.
  • Angle: iRoomba sending data back in real time on how it’s being used. No more focus groups! Robot part of design team.
  • Heppelmann: fundamentally different design process now.
  • Porter: who collects, who decides how to use the data? New chief data officer position.
  • Angle: who is best to handle the data? Idea of chief data officer interesting. Product ID a new competency.
  • Porter: starting to see new organizational structures pop up. Becoming possible to sell almost anything as a service.
  • Heppelmann: “devops” — combine development & operations. Chief Data Officer — whose job is it to decide what the data is telling various departments?
  • Porter: can’t have handoffs between each group, because you need continuing dialogue.
  • Heppelmann: industrial companies can learn from software companies, with techniques such as agile dev in software.  Continuous improvement. Also, “customer analytics.”

 

Liveblogging #IoT @ #Liveworx 2016

1st up is Jim Heppelmann, PTC CEO and co-author w/ Michael Porter of the great 2-part HBR series on IoT strategy & tactics.

But 1st, few words from David Pogue, the great consumer tech writer: imagine his surprise when he sees his kids at home in CT have cranked the Nest 2 66 degrees. So he turns it up, LOL.

Heppelmann:

  • part of a fundamental transformation
  • one of biggest game-changing technologies of our time
  • things evolving from being simple physical products to complex systems, systems of systems
  • “single new reality that’s physical and digital at the same time”
  • example of rapid change: Augmented Reality & Virtuality combined with IoT: Terri Lewis, director of solutions & tech at Caterpiller — XQ Gen Set — rental power for job sites & sport events — “asset utilization” big deal for rentals & for the customers — can operate from a remote device (iPad in this case). PTC’s new product is Vuforia Studio Enterprise — “democratizing AR.” When used as a sales tool, lets customer look inside the product, vs. a static brochure.
  • humans prefer to use sight and sound simultaneously: he & Porter are working on another article on adding AR to business setting.
  • analytics: analytics is the new refinery for data, which is the new oil.  Announcing Thingworx Analytics. Example: Flowserve, an industrial products company.World’s largest flow control company. Helps to do real-time management of the device. It now takes only 1 repair trip to fix assembly rather than 3 before, because they know the actual problem at beginning. Do real-time simulations to see if it was solved.  Augmented Reality allows the person right at the pump, to see what is actually happening — that wasn’t possible before. Radically reduces time & money necessary to get it back online — reducing what was a $2 billion loss in 2015 alone.
  • New announcement: HPE industrial, hardened server to run such a system.
  • Engineering products: working with a group of local STEM kids in a robotics competition, FIRST Robotics. Use AR as part of the design review process, using Google Cardboard & Agile Engineering process. Team demo’s it.
  • He thinks they are THE company for digital/physical convergence.

Michael Campbell, Vuforia Studio AR:

  • augmented reality without writing code
  • reduces the CAD data set by 150x to optimize it, but protects all the visual richness
  • use in design review
  • can create compelling AR in a few minutes! Woo!
  • can actually put the digital info on the physical product itself.  Creo Illustrate for tech illustrators: step-by-step illustrations (wow, would that be great for product assembly and repair uses!). Intuitive interface, drag-n-drop.

 

Industry Week Survey: Most Manufacturers Don’t Get IoT

A new Industry Week survey shows that most manufacturers are, at best, just testing the IoT waters, and few have made the management changes necessary that show they understand the IoT’s revolutionary potential to change every aspect of their products, manufacturing, and even their management.

 The Internet of Things: Finding the Path to ValueThe survey, “The Internet of Things: Finding the Path to Value,” (underwritten by SAS) was conducted late last year.  478 companies completed it.  The survey’s major finding was that:

Despite the fact that they’re already collecting such (i.e., IoT) data, and two- thirds believe the Internet of Things technology will be critical to their future success, only one third of manufacturers report that they have a specific IoT technology strategy.” (my emphasis)

One finding was particularly damning, because it shows senior management really doesn’t get the full value of IoT data and how it must radically alter their decision making:

“… two out of three say they rely more on management experience [than the IoT] when addressing key business issues.”

On the other hand, 28% said they think they’re outpacing their competitors in use of the IoT. Pardon my skepticism..

Here’s the finding that clearly indicated to me that these executives don’t get it that the vast amounts of data yielded by the IoT requires new analytical tools (HANA and its ilk) and new skill sets (i.e., data scientists): ”

It should come as no surprise … that well over half (57%) of manufacturers report that they are using spreadsheets to analyze sensor data.” (my emphasis)

Really?? Those guys gotta download the Managing the Internet of Things Revolution e-guide I wrote for SAP, which explained that the way to ease your way into the IoT is to begin by acquiring data mining and visualization tools and beefing up your cloud storage, which will benefit you with your current operations, as well as building the data analysis skills such as predictive analytics — and attitudes — necessary to capitalize on the IoT.  If you’re analyzing sensor data with spreadsheets, your priorities are totally out of wack…

On the positive side, 45% are integrating and supplementing IoT data regarding product quality, and 43% integrating production data.

I see little indication from the findings that most companies (a few, such as GE and Siemens, excepted) are fully integrating the IoT into day-to-day operations, resulting in what I’ve called “precision manufacturing.”

Long way to go, folks, long way to go…

 

Amazon Leads IoT With Comprehensive Services, Platform & Devices!

Several months ago I predicted that Amazon’s Echo might become the IoT’s killer device, primarily because it is voice activated. It appears that prediction is coming true, which should give the entire consumer IoT a boost because Amazon is also providing a soup-to-nuts approach of devices, platform, and storage meeting a wide range of IoT needs, which puts a real emphasis on customer ease of use.

 Amazon Flywheel

Amazon Flywheel

Even more exciting from my perspective, is that part of that success may be due to something I was unaware of that fits beautifully with my “circular enterprise ” vision of the IoT: Jeff Bezos’ back-of-the-envelope sketch when he founded the behemoth, of what he called the “Amazon Flywheel,” It’s as good an illustration as I can think of regarding my vision of circular organizations and strategy — not to mention their profitability!

Even the WSJ got on board with an article about Amazon in regard to the IoT, although it focused solely on Echo and its voice app, Alexa, and ignored the all-important mechanics that it also provides.

 Amazon IoT Button

Amazon IoT Button

The latest step in fleshing out the ecosystem was the announcement earlier this month of the AWS IoT Button, modeled on its highly successful DASH button, which allows ordering more than 100 different consumer products from Amazon by simply pressing the button (the “button” is also now also available in virtual form as a software service, so that a number of products, such as a Whirlpool smart washing machine, will determine that the owner is running low on detergent, and automatically send an alert to her phone. A simple touch on the phone triggers a refill order from Amazon). The 1st edition IoT button sold out instantly!

It joins a comprehensive, and growing, package of IoT devices and services from Amazon that I suspect will quickly make it the platform of choice for the consumer IoT:

You get the idea: this is a conplete solution, from platform to cloud storage to devices to highly-personal (voice) interface.


 

And there’s that matter of the Amazon Flywheel that I mentioned previously.  I came across it in researching this post, in a blog post by John Rossman in which he referred to the Flywheel as “a long-tested systems dynamic view of Amazon’s core retail and marketplace business” (music to my ears: it was exposure to Jay Forrester & Peter Senge’s work on systems dynamics that first got me interested in cyclical processes, back in the late ’80s). He explains how this continuous loop leads to dynamic growth, especially in Amazon’s infrastructure offerings:

“When thinking through an IoT solution, what is most obvious is the end device.  But this is the classic “tip of the iceberg” in creating an end-to-end solutions.  The IoT Value Chain is defined by devices, connectivity, big data, algorithms, actions, and connection to the rest of the enterprise.  As more and more IoT Devices get introduced, a greater amount of data (both big and small) is generated. This data, once integrated with algorithms create a greater overall customer IoT impact generating more demand for more devices. All of these devices and services can be hosted on AWS and utilize their infrastructure capabilities leading to greater growth of the infrastructure. At this point, the loop looks familiar: infrastructure growth leads to lower costs, which means more services and companies rely on the infrastructure locking into a cycle of higher customer impact.  Amazon Web Services has several existing IoT enabling products include AWS Redshift, AWS Kinesis, AWS Machine Learning and recent acquisition of 2lemetry show that the big bet for Amazon is not in creating devices for its retail business, but in providing cloud infrastructure and software to thousands of companies needing to build IoT devices and capabilities.  This is the AWS IoT flywheel and the real business in IoT for Amazon.”

Yeah, but the bucks that it will get from Dash orders and from Echo ain’t shabby either. Keep up that cyclical thinking, Mr. Bezos!

 

PS: this also makes me more and more confident that Echo and Alexis can be the key to the robust “SmartAging” approach that I visualize because its use of voice will help seniors, especially the tech-averse, manage their health AND their homes and allow them to age in place healthily! Gonna have to get me some partners to go after Alexa Fund backing…

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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.

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.

Internet of Things Can Pay Off for Small & Medium Businesses Too

Think again, if you’re a small and medium-sized business (SMB) that is holding back on Internet of Things projects until the price of software and components such as sensors came down and the technology is more robust!

INEX Advisors’ IoT Impact LABS, an accelerator program in New Bedford, MA brings together IoT startups, top technology and industrial suppliers such as Analog Devices, Dell, and PTC/ ThingWORX, plus legal and policy experts to use the IoT help innovative, sustainable small and medium-sized businesses in the region in fields such as “smart cities,” food and agriculture, water and maritime, and energy and transportation.

One is particularly noteworthy because it is bringing fishing into the 21st century.

Island Creek Oysters of Duxbury MA, was plagued by the need to do a five-step, paper-based food safety inspection reporting on variables such as water temperature and pH, that had to be recorded precisely during the two-hour window after low tide when it had to harvest the oysters.  It’s difficult to do both.

The Mass. Department of Fisheries Management brought together INEX and Island Creek to develop a real-time digital program to both monitor the oysters and do the data collection. Chris Rezendes, partner at Inex Advisors, said the department contacted IoT Impact Labs to figure out a digital traceability program for shellfish farmers in Massachusetts, which includes Island Creek’s farm in Duxbury Mass., just a half-hour south of Boston.

IoT Impact Labs put together a solution to enable monitoring of conditions in real time, wirelessly.

“There are just dozens of instrumentation opportunities. That means dozens of opportunities for sensors, and firmware, and connectivity, and analytics vendors,” Rezendes told CRN.

The project included replacing time-consuming human monitoring of more than 60 water pumps with wireless sensors.

The LABS will release more information about the other projects in coming months, and will host one of our Boston/New England IoT Meetups on February 29 in New Bedford (6 PM, 1213 Purchase Street), with speakers including:

  • Dave Wiley, PhD. NOAA, Research Director, Stellwagon National Marine Sanctuary. He has led the development and deployment of sensor buoys and marine mammal tracking, including supporting a recreational marine application based on his team’s work.
  • Dave Duquette, Founder and CEO, Littoral Power Systems which recently closed its Seed Round, including a prestigious ARPA-E grant. Their kinetic energy harvesting systems are breaking ground in tidal energy capture.
  • Brian Coffey, environmental sensing and instrumentation lead at Analog Devices.

 

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.