I’ll be on SAP Radio Again Today: the IoT and Big Data

I’ll be on SAP’s “Coffee Breaks With Game Changers” radio again today, live @ 2 EST, appearing again with SAP’s David Jonker, again talking about the IoT and Big Data.  This time I plan to speak about:

  • Integrating real-time and historic data in decision-making:  in the past, it was so hard to glean real-time operating data that we had to operate on the basis of inferring about how to manage the future based on analysis of past data.  Now we have a more difficult challenge: learn to balance past and real-time data.
  • Sharing data in real-time: In the past, data trickled down from top management and might (or might not) eventually get to operators on the shop floor.  Now, everyone can get immediate access to it. Will senior managers continue to be the gatekeepers, or will everyone have real-time access to the data that might allow them to do their jobs more effectively (for example, fine-tuning production processes).

  • Revolutionizing decision-making: Decision-making will also change, because of everyone being able to have simultaneous access to data. Does it really make sense any more for sequential decision-making by various siloed departments when they might all benefit by making the decisions simultaneously and collaboratively, based on the data?

Tune in!

Is GE the future of manufacturing? IoT + nanotech + 3D-printing

The specific impetus for this post was an article in The Boston Globe about heart stents that fit perfectly because they’re 3-D printed individuallly for each patient.

GE jet engine 3-D-printed fuel nozzle

That prompted me to think of how manufacturing may change when three of my favorite technologies — nanotech, 3-D printing and the Internet of Things — are fully mature and synergies begin (as I’m sure they will) to emerge between the three.

I’m convinced we’ll see an unprecedented combination of:

  • waste elimination: we’ll no longer do subtractive processes, where a rough item is progressively refined until it is usable.  Instead, products will be built atom-by-atom, in additive processes where they will emerge exactly in the form they’re sold.
  • as with the stents, products will increasingly be customized to the customer’s exact specifications.
  • the products will be further fine-tuned based on a constant flow of data from the field about how customers actually use them.

Guess what?  The same company is in on the cutting edge of all three: General Electric (no, I’m not on their payroll, despite all my fawning attention to them!):

  • Their Industrial Internet IoT initiative is resulting in dramatic changes to their products, with built-in sensors that relay data constantly to GE and the customer about the product’s current status, allowing predictive maintenance practices that cuts repair costs, optimizing the device’s performance for more economical operations, and even allowing GE to switch from selling products to leasing them, with the lease price determined dynamically using factors such as how many hours the products are actually used.  Not only that, but they practice what they preach, with 10,000 sensors on the assembly line at their Durathon battery plant in Schenectady, plus sensors in the batteries themselves, allowing managers to roam the plant with an iPad to get instant readings on the assembly line’s real-time operation, to fine-tune the processes, and to be able to spot defective batteries while they are still in production, so that 100% of the batteries shipped will work.
    They’re also able to push products out the door more rapidly and updating them quicker based on the huge volumes of data they gather from sensors built into the products: “… 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. These approaches follow the ‘lean start-up’ style at many software-intensive Internet companies. “’We’re getting these offerings done in three, six, nine months,’ he [William Ruh] said. ‘It used to take three years.’”
  • They’ve made a major commitment to 3-D printing, with 100,000 3-D printed parts scheduled to be built into their precision LEAP jet engines — a big deal, since there’s not a great deal of fault tolerance in something that may plunge to the earth if it malfunctions! As Bloomberg reported, “The finished product is stronger and lighter than those made on the assembly line and can withstand the extreme temperatures (up to 2,400F) inside an engine.”  They’re making major investments to boost the 3-D printers’ capacity and speed.  Oh, and did I mention their precedent-setting contest to crowd-source the invention of a 3-D printed engine mount?
  • They’re also partnering with New York State on perhaps the most visionary technology of all, nanotech, which manipulates materials on the molecular level. GE will focus on cheap silicon carbide wafers, which beat silicon chips in terms of efficiency and power, leading to smaller and lighter devices.

GE is the only member of the original Dow-Jones Index (in 1884) that still exists. As I’ve said before, I’m astounded that they not only get it about IoT technology, but also the new management practices such as sharing data that will be required to fully capitalize on it.

Thomas A. Edison is alive and well!

I’ll be on “Game Changer” Radio Today @ 3 EST Talking About IoT

Huzzah!  I’ll be a guest on Bonnie Graham’s “Coffee Break With Game Changers” show live, today @ 3 PM to discuss the Internet of Things. SAP Radio

Other guests will include David Jonker, sr. director of Big Data Initiatives at SAP, and Ira Berk, vice-president of Solutions Go-to-market at SAP, who has global responsibility for the IoT infrastructure and middleware portfolio.

Among other topics that I hope to get to during the discussion:

  • The “Collective Blindness” meme that I raised recently — and how the IoT removes it.
  • The difficult shift companies will need to make from past practices, where information was a zero-sum game, where hoarding information led to profit, to one where sharing information is the key. Who else can use this information?
  • How the IoT can bring about an unprecedented era of “Precision Manufacturing,” which will not only optimize assembly line efficiency and eliminate waste, but also integrate the supply chain and distribution network.
  • The sheer quantity of data with the IoT threatens to overwhelm us. As much as possible, we need to migrate to “fog computing,” where as much data as possible is processed at the edge, with only the most relevant data passing to the cloud (given the SAP guys’ titles, I assume this will be of big interest to them.
  • The rise of IFTTT.com, which means device manufacturers don’t have to come up with every great way to use their devices: use open standards, just publish the APIs to IFTTT, and let the crowd create creative “recipes” to use the devices.
  • Safety and security aren’t the other guy’s problem: EVERY device manufacturer must build in robust security and privacy protections from the beginning. Lack of public trust can undermine everyone in the field.
  • We can cut the cost of seniors’ care and improve their well being, through “smart aging,” which brings together Quantified Self fitness devices that improve their care and make health care a doctor-patient partnership, and “smart home” devices that automate home functions and make them easier to manage.

Hope you can listen in.  The show will be archived if you can’t make it for the live broadcast .

Perhaps Most Important Internet of Things Essential Truth: Everything’s Linked

PROCEED WITH CAUTION!

You see, I’m thinking out loud (that accounts for that sound of gears grinding….) — I really am writing this post as I mull over the subject for the first time, so you’re forewarned that the result may be a disaster — or insightful. Bear with me…

I’m working on a book outline expanding on “Managing the Internet of Things Revolution,” the introduction to IoT strategy for C-level executives that I wrote for SAP. One of the things I’ve been looking for is a theme that would bring together all of the book’s parts, which include product design, manufacturing, marketing and corporate organization, among other topics.

I think I’ve got that theme, and I think it may be the most Essential Truth of all the ones I’ve written about regarding the IoT:

Everything’s Linked!

When you think about it, there have been a lot of dead-ends in business in the past:

  • we haven’t been able to know how customers used our products. We’ve actually got a lot more information about the ones that failed, because of warrantee claims or complaints, than we have about the ones that worked well, because that information was impossible to gather.
  • data that could help workers do their work better has always come from top down, filtered by various levels of management and only delivered after the fact.
  • customers can’t get the full value of our products because they operate in isolation from each other, and often were slow to react to changing conditions.
  • assembly-line machinery has frequently been hard to optimize, because we really didn’t know how it was operating — until it broke down.
  • key parts of the operation, such as supply chain, manufacturing, and distribution, have been largely independent, without simultaneous access to each other’s status.

With the Internet of Things, by contrast, everything will be linked, and that will change everything:

  • we’ll get real-time data about how customers are using our products. Most radically, that data may even allow us, instead of selling products and then severing our ties to the customer as in the past, to instead lease them the products, with the pricing dependent on how they actually use the products and the value they obtain from them.
  • everyone in the company can (if your management practices allow!) have real-time access to data that will help them improve their decision making and daily operations (hmm: still looking for an example of this one: know any companies that are sharing data on a real-time basis??).
  • products will work together, with synergistic results (as with the Jawbone UP turning on the NEXT), with their operation automatically triggered and coordinated by services such as IFTTT.
  • the assembly line can be optimized because we’ll be able to “see” into massive equipment to learn how it is operating — or if it needs repairs in time to avoid catastrophic failure.
  • access to that same data may even be shared with your supply chain and distribution network — or even with customers (again, looking for a good example of that transformation).

There’s won’t be dead ends or one-way streets where information only flows one way. Instead, they’ll be replaced by loops (in fact, I thought loops might be an alternative theme): in many cases, data will be fed back through M2M systems so things can be optimized.

If that’s the case, we’ll be able to increase the use and value of tools such as systems dynamics software, that would help us model and act on these links and loops. Instead of massive oscillations where we’re forced to make sudden, major corrections when data finally becomes available, machinery will be largely self-regulating, based on continuous feedback. We’ll delight customers because products will be more dependable and we’ll be able to fine-tune them by adding features based on actual knowledge of how the products work.  Workers will be more efficient, and happier, because they’ll be empowered. We’ll tread lightly on the earth, because we’ll use only what we need, precisely when we need it.

By George, I think I’ve got it! I’m excited about this vision of the Internet of Things linking everything. What do you think?? Please let me know! 

GE & Accenture provide detailed picture of current IoT strategy & deployment

I’ll admit it: until I began writing the “Managing the Internet of Things Revolution” guide to Internet of Things strategy for SAP, I was pre-occupied with the IoT’s gee-wiz potential for radical transformation: self-driving cars, medical care in which patients would be full partners with their doctors, products that customers would be able to customize after purchase.

GE_Accenture_IoT_reportThen I came to realize that this potential for revolution might be encouraging executives to hold off until the IoT was fully-developed, and, in the process, ignoring low-hanging fruit: a wide range of ways that the IoT could dramatically increase the efficiency of current operations, giving them a chance to experiment with limited, less-expensive IoT projects that would pay off rapidly and give them the confidence and understanding necessary to launch more dramatic IoT projects in the near future.

This is crucially important for IoT strategies: instead waiting for a radical transformation (which can be scary), view it instead as a continuum, beginning with small, relatively-low cost steps which will feed back into more dramatic steps for the future.

Now, there’s a great new study, “Industrial Internet Insights Report for 2015,” from GE and Accenture, that documents many companies are in the early stages of implementing such an incremental approach, with special emphasis on the necessary first step, launching Big Data analytics — and that they are already realizing tangible benefits. It is drawn from a survey of companies in the US, China, India, France, Germany, the UK, and South Africa.

The report is important, so I’ll review it at length.

Understandably, it was skewed toward the industries where GE applies its flavor of the IoT (the “Industrial Internet”): aviation, health care, transportation, power generation, manufacturing, and mining, but I suspect the findings also apply to other segments of the economy.

The summary underscores a “sense of urgency” to launch IoT initiatives:

“The vast majority (of respondents) believe that Big Data analytics has the power to dramatically alter the competitive landscape of industries just within the next year, and are investing accordingly…” (my emphasis).

84% said Big Data analytics “has the power to shift the competitive landscape for my industry” within just the next year, and 93% said they feared new competitors will enter the field to leverage data.  Wow: talk about short-term priorities!

It’s clear the authors believe the transformation will begin with Big Data initiatives, which, IMHO, companies should be starting anyways to better analyze the growing volume of data from conventional sources. 73% of the companies already are investing more than 20% of their overall tech budget on Big Data analytics — and some spend more than 30%! 80 to 90% said Big Data analytics was either the company’s top priority or at least in the top 3.

One eye-opening finding was that 53% of respondents said their board of directors was pushing the IoT initiatives. Probably makes sense, in that boards are expected to provide necessary perspective on the company’s long-term health.

GE and Accenture present a  4-step process to capitalize on the IoT:

  1. Start with the exponential growth in data volumes
  2. Add the additional data volume from the IoT
  3. Add growing analytics capability
  4. and, to add urgency, factor in “the context of industries where equipment itself or patient outcomes are at the heart of the business” where the ability to monitor equipment or monitor patient services can have significant economic impact and in some cases literally save lives [nothing like throwing the fear of God into the mix to motivate skeptics!].
For many companies, after implementing Big Data software, the next step toward realizing immediate IoT benefits is by installing sensors to monitor the status of operating assets and be able to implement “predictive maintenance,” which cuts downtime and reduces maintenance costs (the report cites some impressive statistics: ” .. saving up to 12 percent over scheduled repairs, reducing overall maintenance costs up to 30 percent, and eliminating breakdowns up to 70 percent.” What company, no matter what their stance on the IoT, wouldn’t want to enjoy those benefits?). The report cites companies in health care, energy and transportation that are already realizing benefits in this area.
Music to my ears was the emphasis on breaking down data-sharing barriers between departments, the first time I’ve seen substantiation of my IoT “Essential Truth” that, instead of hoarding data — whether between the company and supply-chain partners or within the company itself — that the IoT requires asking “who else can use this data?” It said that: “System barriers between departments prevent collection and correlation of data for maximum impact.” (my emphasis). The report went on to say:

“All in all, only about one-third of companies (36 percent) have adopted Big Data analytics across the enterprise. More prevalent are initiatives in a single operations area (16 percent) or in multiple but disparate areas (47 percent)…. The lack of an enterprise-wide analytics vision and operating model often results in pockets of unconnected analytics capabilities, redundant initiatives and, perhaps most important, limited returns on analytics investments.”

Most of the companies surveyed are moving toward centralization of data management to break down the silos. 49% plan to appoint a chief analytics officer to run the operation, and most will hire skilled data analysts or partner with outside experts (insert Accenture here, LOL…).

The GE/Accenture report also stressed that companies hoping to profit from the IoT also must create end-to-end security. Do do that, it recommended a strategy including:
  1. assess risks and consequences
  2. develop objectives and goals
  3. enforce security throughout the supply chain.
  4. use mitigation devices specifically designed for Industrial Control Systems
  5. establish strong corporate buy-in and governance.

For the longer term, the report also mentioned a consistent theme of mine, that companies must begin to think about dramatic new business models, such as substituting value-added services instead of traditional sales of products such as jet engines.  This is a big emphasis with GE.  It also emphasizes another issue I’ve stressed in the “Essential Truths,” i.e. partnering, as the mighty GE has done with startups Quirky and Electric Imp:

“Think of the partnering taking place among farm equipment, fertilizer, and seed companies and weather services, and the suppliers needed to provide IT, telecom, sensors, analytics and other products and services. Ask: ‘Which companies are also trying to reach my customers and my customers’ customers? What other products and services will talk to mine, and who will make, operate and service them? What capabilities and information does my company have that they need? How can we use this ecosystem to extend the reach and scope of our products and services through the Industrial Internet?'”

While the GE/Accenture report dwelt only on large corporations, I suspect that many of the same findings would apply to small-to-medium businesses as well, and that the falling prices of sensors and IoT platforms will mean more smart companies in this category will begin to launch incremental IoT strategies to first optimize their current operations and then make more radical changes.

Read it, or be left in the dust!


PS: as an added bonus, the report includes a link to the GE “Industrial Internet Evaluator,” a neat tool I hadn’t seen before. It invites readers to “see how others in your field are leveraging Big Data analytics for connecting assets, monitoring, analyzing, predicting and optimizing for business success.” Check it out!

My speech on how the Internet of Things will aid Predictive Analytics

I spoke yesterday at the Predictive Analytics Manufacturing conference in Chicago, about a theme I first raised in the O’Reilly SOLID blog, about how the Internet of Things could bring about an “era of precision manufacturing.”

I argued that, as powerful as Predictive Analytics tools have been in analyzing manufacturing data and improving forecasting, their effectiveness has been artificially restricted because, for example, we can’t “see” inside production machinery to detect early signs of metal fatigue in time to avoid a costly breakdown, nor can we tell whether EVERY product on an assembly line will function when customers use them.

By contrast, I argued that the IoT will give us all this information, and, most important, allow everyone (from your supply chain and distribution network to EVERYONE in your company) to share this data on a real-time basis.  I warned that it will be management issues (those pesky IoT Essential Truths again!), such as whether to allow this sharing to take place, and whether to end departmental silos, that will be the biggest potential barrier to full IoT implementation.

Believe me, it will be an incredible transformation.  You can read the full text here.

Here’s where I draw the IoT privacy line! social sensing badges

Posted on 5th November 2013 in Internet of Things, management, privacy

Yikes!

I had the same reaction to this story by the Boston Globe‘s Scott Kirsner (“Is this a management breakthrough, or Big Brother in the workplace?” — sorry, no linkie: it only appears to be available through the subscribers’ archive) that a lot of people did to the story about the hacked, un-encrypted baby monitor: this is the Internet of Things run amok.

Sociometric Badge

It seems that a local firm, Sociometric Solutions,  has come up with a “social sensing badge” that employees would wear around their necks. According to the firm’s CEO, Ben Waber, before long “every employee ID badge will have sensors in it.” Holy George Orwell!

As Kirsner said, “You might call it the NSA style of management.” My thoughts exactly.

Here’s how this demonic gizmo works:

“…the badges rely on infrared sensors to know when you are clustered with other people in a meeting or conversation. While they don’t record conversations, they capture data about how often you talk versus listen, how frequently you interrupt people, and your tone of voice.” (my emphasis)

This is supposed to lead to a more humane workplace, that “.. will enable companies to try different approaches to office design, corporate hierarchies, and perhaps even work schedules.”

Baloney!

I’m reminded of a story a friend tells. He had a very talented employee who was anti-social, and frequently would work in the middle of the night, even sleep at his desk. Unconventional, but absolutely essential to the department. How long do you think he’d last after wearing one of these badges? Turn in your sociometric badge as you pick up your last check, anyone with ADHD or Aspergers — and probably a lot of others who wouldn’t fit some manager’s pre-conception of the ideal employee!

According to workplace consultant Alexandra LaMaster, of OrgSpeed:

“When there’s trust between an employer and employee, and they see that you’re moving people around because you want more communication across departments, or to achieve some kind of business result, that’s one thing. If there’s a lack of trust, people might feel they’re being policed.”

I’ve seen far too many dysfunctional workplaces — particularly in low-status companies such as retailers — to subscribe to the idealized view of how this device could be used. As far as I’m concerned, the sociometric badge is one example of technologists (IMHO, shame on MIT Prof. Sandy Pentland, who is a co-founder and chairman of the company’s board, and who I’d always counted among the IoT Good Guys) who get the idea that because you can do something, you should do it.

You shouldn’t.

What do you think?

 

 

 

Tweeting the IoT Summit!

Posted on 1st October 2013 in government, Internet of Things, M2M, privacy, security

I Tweeted throughout the IoT Summit today, cryptic as the comments may have been. You can check them out at @data4all.  Learned a great deal, and picked up several nice examples for the e-book I’m writing on implications for corporate management of the IoT!

Enjoy.  Will do the same tomorrow!

GE Crowdsourcing Design For 3-D Printing Project

OK, I admit to losing all sense of objectivity on this one! After all, it hits all my sweet spots:

  • Internet of Things (AKA General Electric’s “Internet of Things”)
  • 3-D printing
  • crowdsourcing/collaboration.

As I wrote earlier, about GE’s collaboration with Electric Imp and Quirky, this exemplar of Industrial Age might (what could be more powerful than a GE locomotive???) really seems to get it that the Internet of Things is as much about new attitudes of collaboration and sharing data as it is about Internet technology.

GE jet engine mount

So it’s no surprise that Industry Week reports on a new GE initiative, soliciting crowdsourced designs for a new jet engine bracket that will be produced through 3-D printing.

As Christine Furstoss, technical director of Manufacturing and Material Technologies at GE Global Research, explains:

“‘For any industry to be successful, you really need to develop communities or ecosystems of partners and thought leaders…

‘No sustainable, established industry technology exists without multiple players, multiple styles of thought, multiple ways of growing … We feel like one of the best ways to stimulate that, to find the newest and best ideas, is to start with open collaboration.'”

Bravo!

Contrast that attitude with what is still all too prevalent, as summarized by Paul Horn, former senior vp of research at IBM:

“Horn remembers a time before open innovation — a competitive, suspicious era when innovative and great, transformative ideas were only allowed to grow in a tightly sealed vacuum.

‘When we built the Almaden Laboratory at IBM in the early 1980s, we put it south of Silicon Valley on purpose,’ he recalls. ‘In those days, our biggest fear was the leaking of intellectual property out into the valley.'”

I suspect that one of the biggest obstacles to full realization of the IoT’s promise will be the difficulty of leaving that old zero-sum game, my-gain-is-your-loss mentality behind!

I wasn’t aware that this latest competition, to design a 3-D printed bracket strong enough to support a jet engine on a commercial plane, is part of a 2-year crowdsourcing initiative, with approximately $20 million in prizes for products, designs and processes, especially in 3-D printing:

“‘We’re trying to find thought leaders in this area — people who may know through a technique they’ve devised or a piece of software that they’ve found or just their own experiences what is the best way to design with additive for real industrial parts,’ Furstoss explains. ‘We’re really at the birth of industrial additive technology. This is a way for us to build support for that community of makers.'”

Furstoss says the crowdsourcing competitions are no knock on GE’s own 50,000 engineers: “‘We have a platform in place that can put a student in his dorm on the same plane as our engineers,’ she says. ‘We’re making sure that people who may have ideas, may have skills, may have things to offer have an opportunity to bring them forward, no matter who they are.'”

It’s that kind of openness to not only new technologies, but also new management practices, that will give GE a huge head start over competitors that have yet to come to grips with the new reality: the Internet of Things!

 

Essential Truth of the IoT: empowering individuals!

I am still euphoric after last night’s IoT Meetup in Providence (such a meeting of the minds!) and it inspired me to write another of my posts about what I see as “Essential Truths” of the IoT!

In fact, I dare say this is the most profound — and perhaps least understood — way in which the IoT will bring about fundamental transformation of our lives.

When we talk about IoT components such as automated Machine-to-Machine (M2M) communication, it tends to obscure the human aspect of the IoT.

I think that’s going to be a HUGE component of the change, and one that we won’t be able to fully appreciate or exploit until the IoT is an omni-present part of our daily lives.

That’s because we have labored under such fundamental restrictions on communicating about data in the past that we can’t really visualize what things will be like when those restrictions are removed and data flows freely.

Here’s where something truly magical comes in!

It is no knock on even the most creative organization or its staff to say that it doesn’t have a strangle-hold on the truth: there’s simply no way that any organization or any individual can think of all the ways that certain data could create value. But when you make that information readily available, someone who has a particular interest (OK, maybe we’re talking about obsession!) or feels particular pain about that thing can come forward with a creative new product or service to capitalize on that information. I can visualize mutually beneficial partnerships that we can’t conceive of today between major corporations and tiny startups (i.e., GE/Quirky/Electric Imp  — or perhaps even individuals  (that’s the kind of thing that Innocentive has successfully pioneered with its challenges, where many of the profitable solutions have come from rank amateurs who may have no professional credentials but personal zeal and insights).

I realize that senior managers may be uncomfortable talking about the role “magic” can play in development of profitable new goods and services, but I humbly suggest that with the birth of the IoT it’s something they should add to their vocabulary.

What a future!