We covered just about every topic I hit in the book, with a heavy emphasis on the attitude shifts (“IoT Essential Truths” needed to really capitalize on the IoT and the bleeding-edge concept I introduce at the end of the book, the “Circular Corporation,” with departments and individuals (even including your supply chain, distribution network and customers, if you choose) in a continuous, circular management style revolving around a shared real-time IoT hub. Hope you’ll enjoy it!
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
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
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
vision and language
interacting with physical world
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!
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.
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 thischange 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.
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.
“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.
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.
“Connectivity & normalization: brings different protocols and different data formats into one ‘software’ interface ensuring accurate data streaming and interaction with all devices.
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.
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.
Processing & action management: brings data to life with rule-based event-action-triggers enabling execution of ‘smart’ actions based on specific sensor data.
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.
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.
Additional tools: allow IoT developers prototype, test and market the IoT use case creating platform ecosystem apps for visualizing, managing and controlling connected devices.
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!
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.
Wow: as the old Dinah Washington ditty went, “What a Difference a Day Makes.” Since last Thursday, I doubt even the most diehard IoT zealots have thought about anything but Brexit and its implications. Now that we’ve had a little time to reflect and digest exactly how dire the possible problems are, I’d like to suggest we look at the bright side, and think the IoT could play a major role in improving everyone’s life in the future — not just the economic elites.
Wei ji: crisis combines danger and opportunity
I used to be a corporate crisis manager, called in when major corporations had done amazingly stupid things and their reputations and sometimes even their survival was in question. For those occasions, I kept a battered greeting card in my briefcase with the calligraphy for weiji, the Chinese ideogram for crisis. I’d point out that it c0mbined danger — that was obvious! — with the less-obvious one for opportunity. I still believe that, even in the global confusion and concern resulting from Brexit, and I think there’s a role for the IoT in the new world order.
Above all, this should be a wake-up call for the global economic and political elites that, going forth, change must benefit everyone, not just them.
When it comes to the IoT, that means that it can’t be yet another excuse for automating jobs out of existence, but must instead be a way of empowering workers and creating new opportunities:
One that occurred to me is near & dear to my heart, because I thought of a primitive version 25 years ago: creating 30″ high 4′ x 8′ garden “boxes” planted using Mel Bartholomew’s “Square Foot Gardening” methods, that would allow people worldwide to grow their own veggies in very small spaces. Add in IoT water sensors so that the beds could be watered precisely when and in the amount needed, and people everywhere could become self-sufficient (e-mail me if you’re interested in commercializing the approach)! It would be the cheapie’s variation on the neat, but costly, Grove Labs home ag solution.
smart asthma inhaler
Increasingly, global populations will be centered in cities, so the whole smart cities approach will improve everyone’s quality of living by cutting down traffic, reducing municipal operating costs, and improving public health. Even fat cats get upset when their limos are stuck in traffic, so this is a win-win.
One of my favorite examples of the smart city approach is the asthma inhaler cum GPS that automatically alerts public health authorities when a user — most frequently, sadly, a low-come minority person — uses the inhaler, allowing them to identify dirty air “hot spots” where cleanup efforts need to be focused.
I’ve always been impressed about the outside-the-box mobile device apps coming out of Africa that make their lack of conventional infrastructure into an advantage. One of the coolest examples of that when it comes to the IoT is the example INEX’s Chris Rezendes told me about: how Grundfos, the world’s leading pump company, releases the data from senors on its pumps for village water supplies in Africa and some smart guys have come up with an app that allows the village women to check in advance whether the village well is working before they trudge miles to get the watch (which, BTW, I hope they’re carrying back in these way-cool appropriate technology rolling water carriers, the “Hippo”).
Also, the IoT could empower assembly-line workers and others if smart managers realize that they too should be among those sharing real-time IoT data: yes, a lot of IoT data can be used on a M2M basis so one machine’s status will regulate another’s, but there’s also a potential role for workers, with their years of experience and horse-sense, using that data to fine-tune processes themselves to optimize efficiency. Artificial Intelligence is great, but I still think there’s a role for enlightened humans, even if they don’t have a lot of education and prestige within the corporation.
Those are just a few ideas on how the IoT might be used to improve everyone’s lot in the coming years and undermine the current status quo that benefits only a few. Let me know if you have ideas on how to foster this revolution and make Brexit the catalyst for positive change.
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.
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.
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.
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 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.”
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
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.
“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.
Fasten your seatbelts! I think I’ve finally zeroed in on the Internet of Things’ (IoT’s) most important potential economic benefit and how it could simultaneously help us escape the growing global environmental crisis:
make real-time IoT data* the hub of a circular economy and management mentality. It’s both good for the bottom line and the planet.
I started writing about circular business models back in the 90’s, when I consulted on profitable environmental strategies, i.e., those that were good both for the corporate bottom line and the planet. It galled me that executives who railed about eliminating inefficiency thought reducing waste was for tree-huggers. Semantics and lifestyle prejudices got in the way of good strategy.
Ford’s River Rouge Plant (1952 view)
I could see that it was vital that we get away from old, linear models that began with extracting resources and ended with abandoned products in landfills. Ford’s massive 1 x 1.6 mile River Rouge Plant, the world’s largest integrated factory, was the paradigm of this thinking: ore was deposited at one end, made into steel, and cars came out the other (Hank’s penchant for vertical integration even led him to buy rubber plantations! If you have any illusions about the ultimate impossibility of top-down control, watch the PBS documentary on Ford — he simply couldn’t share power, even with his own son — and it almost ruined the company). The linear model worked for a long time, and, truth to tell, it was probably the only one that was feasible in the era of paper-and-pencil information flow: it was so hard to gather and transmit information that senior management controlled who got what information, and basically threw it over the transom to the next office.
As for any kind of real-time information about what was actually happening on the factory floor: fugetaboutit: all that was possible was for low-level functionaries to shuffle along the assembly line, taking scheduled readings from a few gauges and writing them on a clipboard. Who knew if anyone ever actually read the forms, let alone made adjustments to equipment based on the readings?
Fast forward to 2015, and everything’s changed!
The image of the circular corporation popped back into my head last week while I was searching for an image of how the IoT really can change every aspect of corporate operations, from product design to supply chain management. I was happily surprised that when I Googled “circular economy” I found a large number of pieces, including ones from consulting gurus Accenture and McKinsey (the most comprehensive report on the concept is probably this one from the Ellen MacArthur Foundation), about the bottom-line and environmental benefits of switching from a linear (‘take-make-dispose’) pattern.
But how to make the circular economy really function? That’s where the IoT comes in, and, in my estimation, is THE crucial element.
When that happens, a number of crucial changes that were impossible in the era of linear operations and thinking and limited data became possible for the first time:
you can optimize assembly line efficiency because all components of the factory are monitored by sensors in real time, and one process can activate and regulate another, and/or managers and assembly-line workers can fine-tune processes (think of the 10,000 sensors on the GE Durathon battery assembly line).
you can integrate the assembly line with the supply chain and distribution and sales network as never before (provided that you share the real-time data with them), so materials are delivered on a just-in-time basis) and production is dictated by real-time data on sales (the SAP smart vending machine, integrated with logistics, is a great example).
you can optimize product redesign and upgrades and speed the process, because sensor data from the products as they are actually used in the field is immediately fed back to the designers, so they have objective evidence of what does, and doesn’t work properly (think of how GE has improved its product upgrade process). No more ignorance of how your products are actually used!
from an environmental standpoint, having sensors on key components can make it possible for you to recover and profitably remanufacture them (closing the loop) rather than having them landfilled (I was excited to learn that Caterpillar has been doing this for 40 years (!) through its Reman Program, which “reduces costs, waste, greenhouse gas emissions and need for raw inputs.”).
As I’ve written before, creating the real-time data is perhaps the easier part: what’s harder is the paradigm shift the circular economy requires, of managers learning to share real-time data with everyone inside the enterprise (and, preferably, with the supply chain, distribution network, retailers, and, yes, even customers). When that happens, we will have unprecedented corporate efficiency, new revenue streams, satisfied customers, and, equally important reduce our use of finite resources, cut pollution, and tread lightly on the earth. There you have it: the secret to 21st-century profitability is:
real-time IoT data, at the hub of the circular enterprise.
*Oh yeah, please don’t drop a dime on me with the grammar police about the title: in fact, I’m a retired colonel in the Massachusetts Grammar Police, but I’ve given up the fight on “data.” From my Latin training, I know that data are the plural form of datum, but datum is used so infrequently now and data with a singular verb has become so common that I’ve given up the fight and use it as a singular noun. You can see the issue debated ad nauseum here …