Market Research Firm Says Digital Transformation to Drive Adoption of Manufacturing Operations Management Software

Market Research Firm Says Digital Transformation to Drive Adoption of Manufacturing Operations Management Software

‘Tis the season—for market research reports. This one again from a firm I don’t know (but quite European centric)—by Transparence Market Research attempts to gauge the size and growth of the Manufacturing Operation Management (MOM) software market. I did not get a chance to chat with the company, but I find the list of companies “surveyed” interesting. Note, this software was previously (before ISA 95) Manufacturing Execution Solutions (MES), and when I did work in the space Manufacturing (prior-Materials) Resource Planning.

According to the market report, the global manufacturing operations management software market is projected to reach a value of US$ 17 Bn by 2027. The MOM software market is projected to expand at a CAGR of about 10% from 2019 to 2027. Growth of the market can be attributed to the shift of manufacturing toward digitization. [Note: I propose that as companies have acquired other companies, the MOM of choice—Microsoft Excel—became to cumbersome and not scalable. Add to this thought, the burgeoning data available through the Internet of Things.]

Asia Pacific is anticipated to dominate the manufacturing operations management software market at a CAGR of about 11% during the forecast period. In terms of revenue share, the manufacturing operations management software market is dominated by North America, followed by Europe. In 2019, the software segment is estimated to be valued at about US$ 5 Bn in the global manufacturing operations management software market, and see an opportunity of about US$ 10 Bn in terms of revenue from 2019 to 2027, reflecting a CAGR of about 9% during the forecast period.

The report does rightly point out that “MOM plays a vital role in integrating information systems on the shop floor, with business systems in corporate offices, leading to a gradual phasing-out of traditional paper-based systems.” They expect demand for manufacturing operations management software to increase during the forecast period due to these advantages offered by these systems.

Asia Pacific is one of the fastest growing markets in the global manufacturing operations management software market, as this region is witnessing increased adoption of new technologies. The manufacturing operations management software markets in North America and Europe are also expected to expand rapidly during the forecast period. [Gary’s note: have you ever seen one of these reports where the line on the graph did not reach upward from lower left to upper right?]

The research study includes the profiles of leading companies operating in the global manufacturing operations management software market. Key players profiled in the report include Siemens AG, ABB Ltd., Dassault Systems SA, Emerson Process Management, Honeywell, International Inc., General Electric Co., and Invensys plc. [Note: I’ll give them Invensys for historical data, but the software is now aggregated under AVEVA. I’d suggest a few additional players in the space.]

Product Day At Rockwell Automation TechED

Product Day At Rockwell Automation TechED

Second day Rockwell Automation TechED keynote speakers drilled down into the weeds a little to flesh out the High Performance Architecture and Connected Enterprise themes from day one. Unusual for a second day general session, the room was about as packed as for day one.

There is little mention of Internet of Things at this conference—it’s sort of assumed as part of the Connected Enterprise. However, speakers went from one “standard, unmodified Ethernet” comment yesterday to many mentions today.

Product group vice presidents Fran Wlodarczyk (Control & Visualization), John Genovesi (Information & Process), and Scott Lapcewich (Customer Support & Maintenance) showed how their groups supported the company vision.

Wlodarczyk discussed controllers getting faster (leading to added yield for an automotive assembly plant), improved workflows and tighter integration with control in the visualization portfolio, and how the latest motion control products are self-aware (auto-tuning) and system-aware.

Genovesi, who has learned the languages of process automation and information systems well in his time leading the area, spoke to both.

“Rockwell Automation is uniquely positioned to drive value-based outcomes”:

  • Integrated Architecture that includes integrated software
  • Intelligent Motor Control (smart, connected assets)
  • Domain Expertise (Solution delivery)

When Rockwell finally made a real commitment to entering the process automation business, it specifically avoided the term “DCS” and used its “PAC” (programmable automation controller) terminology. A couple of years ago spokespeople made a point of saying they have a DCS. Genovesi said the Rockwell DCS brings a modern approach that established competitors cannot match. Plus, the Rockwell approach can be less expensive.

The Rockwell DCS (built on the Logix platform, but not a PLC) advantage is that it can integrate with other plant automation and control assets such as motor control.

On the Information Services side, he emphasized the partnership with OSIsoft—a company now saying it has moved from just a historian company to providing a “real-time infrastructure.” We’ve been in the Industrial Internet of Things for 35 years, the OSIsoft spokesman proclaimed.

Lapcewich listed five sets of services his group provides:

  • networks & security
  • product & application lifecycle
  • remote monitoring & cloud analytics
  • asset management & reliability
  • people & asset safety

[Note: when Rockwell discusses asset management, it refers to the types of electrical and automation assets/products it provides.]

Industrial Internet of Things Training

Industrial Internet of Things Training

Internet of ThingsWhat was once called Information Technology (IT) and then Manufacturing IT (for the IT jobs directly working with the plant such as MES applications) now seems to be falling under the Internet of Things label. Probably part of the reason that there is confusion as to what the IoT term really means.

Terminology aside, Rockwell  Automation and the Industrial IP Advantage (industrial-ip.org) group it has formed have been investing much in providing training on a variety of networking and IT topics. In today’s news, Rockwell Automation and Sunset Learning Institute (SLI) are teaming up to improve and increase access to continuing education and certifications surrounding the Industrial Internet of Things (IoT).

Rockwell Automation has rolled out several courses and a certification program over the last year with its Strategic Alliance Partner Cisco. New courses and certifications can help both IT and OT workers gain the skills needed to manage, administer, design and operate converged industrial networks–now becoming known as industrial internet of things networks. These include the Managing Industrial Networks with Cisco Networking Technologies (IMINS) training course; Managing Industrial Networks for Manufacturing with Cisco Technologies (IMINS2); and CCNA Industrial certification.

SLI specializes in delivering and developing authorized Cisco training. SLI has been a top-tier Authorized Cisco Learning Partner for 20 years. The courses and certifications supported by Rockwell Automation-SLI collaboration include:

  • Interconnecting Cisco Networking Devices Part 1 (ICND1): A five-day course on how to install, operate, configure and verify basic IPv4 and IPv6 networks.
  • Interconnecting Cisco Networking Devices Part 2 (ICND2): A five-day course on how to install, configure, operate and troubleshoot a small enterprise network.
  • Interconnecting Cisco Networking Devices Accelerated (CCNAX): An advanced, five-day course consisting of ICND1 and ICND2 content in its entirety.
  • Implementing Cisco Unified Wireless Networking Essentials: A five-day course designed to prepare for the CCNA wireless certification, an associate-level certification specializing in the wireless field.

Students can register for courses via the Rockwell Automation and SLI websites.

Take Advantage of Industrial Internet of Things Opportunities

“Our customers are tasked with building and managing networks and information systems that are different from anything their predecessors confronted,” said Glenn Goldney, global business manager for training services, Rockwell Automation. “Pairing SLI’s qualifications with our own expertise in OT provides IT and OT professionals with premium quality IoT training. These are the skills workers need to take advantage of IoT to drive new opportunities, and unite traditionally disparate practices.”

“The convergence of IT and OT makes it critical that we partner with the very best in the OT space,” said Rick Morgan, CEO, Sunset Learning Institute. “Combining our in-depth knowledge of IT and Cisco markets with Rockwell Automation expertise in the OT space creates an unrivaled partnership in the emerging IoT marketplace.”

SLI also provides a distinct training delivery platform with its High-Definition, Instructor-Led Training (HD-ILT) Network. HD-ILT is SLI’s proprietary video conferencing and patented, remote-lab training modality. Students using HD-ILT have interactive training sessions with two-way, high-definition video and real-time audio, giving instructors and students easy and full visibility of one another.

With over 50 locations across the U.S., Canada and Latin America, the SLI HD-ILT network significantly increases options for IT and OT professionals looking for training without the travel costs. Training is also available in person at Rockwell Automation and SLI facilities across North America. Rockwell Automation and SLI expect to add joint course offerings in the years ahead. All courses are open for registration.

Industrial Internet of Things Training

The Internet of Things Is Coming–According to MIT Anyway

Internet of ThingsEveryone is in a rush to get an opinion or observation published about the Internet of Things. Evidently it gets lots of page views. Recently other analysts have been publishing thought pieces on IoT in Industry. It appears they have reached the same conclusion that I first broached a couple of years ago. The IoT is not a “thing.” To make any sense of it and use it for any strategy, it must be thought of as an ecosystem encompassing a variety of technologies.

Here is an article that appeared in the Sloan MIT Management Review. Since I am a subscriber, I don’t know if you can see the article at this link.

The writer is Sam Ransbotham is an associate professor of information systems at the Carroll School of Management at Boston College and the MIT Sloan Management Review Guest Editor for the Data and Analytics Big Idea Initiative. He suggests, “The Internet of Things will bring huge changes to the way markets and businesses work — and it could get messy.”

Here is a bromide that I’ve read a thousand times, “Most businesses aren’t ready for the changes to the marketplace that the Internet of Things will bring. But the time to prepare for them is now.”

Actually most business adapt. Some are visionary and will develop new products, processes, and services–and make a lot of money. Others will adapt and survive. Still others will wonder what happened and die. That is the way of business for at least 5,000 years.

Use Case for Internet of Things

“Yes, the potential insights from IoT are enticing. For example, it’s fun to think about the potential personal and even societal benefits from self-driving cars, such as fewer accidents, no problems with parking, more productivity while traveling, car sharing, greater infrastructure efficiency, etc. But perhaps a more profound implication is the data that they can collect. These cars will also be widely distributed “things,” gathering performance data that can help manufacturers diagnose problems, operational data that can help mechanics prevent failures, driver data that can help insurers understand risk, road data that can help cities improve infrastructure, etc. These kinds of insights, we’re ready for.”

But there are a lot more changes coming with the IoT transformation than many people may recognize.

Ransbothem looks into information technology as a model for what will happen in IoT. “About a decade ago, advances in information technology converged to fuel a boom in corporate use of analytics. First, widespread implementation of information systems captured unprecedented amount of data in ways that could be used in isolation or combined. Second, tools and technologies allowed the inexpensive storage and processing. Third, savvy analytical innovators creatively combined these to show everyone else what could be done.”

We have seen all this play out in industrial systems. There remains more to be done, here, though.

He proceeds to look at Internet of Things. “First, the cost and physical size of sensor technology have dropped such that they can be incorporated into most items. Second, widespread communications infrastructure is in place to allow these distributed components to coordinate. Third, once again, savvy innovators are showing the rest of us the possibilities from the data they collect.”

Manufacturing and production are not only poised to exploit these technologies and strategies, they have already been implementing to one degree or another. But his point is valid. IoT needs the ecosystem of sensing devices, networking, communication technology, databases, analytics, and visualization.

Ransbothem identifies four areas of change. Of these, I direct your attention to the last–process changes. I think everything feeds into process changes–not just the processes to make things, but also the information technology, supply chain, and human processes that must not only adapt but thrive with the new information awareness.

  • Market Power: IoT should provide a greater amount and a greater value of data, but are companies ready to align their interests in obtaining value from this data with the multiple other companies and end users who create, own, and service the products that originate the data? In the driverless car example, it is easy to see how multiple stakeholders could make use of the data from cars; the same is true for other devices. But it may not be clear who owns what data and how it can be used.
  • Complexity: Few organizations are prepared to be hardware and software development companies. But that’s what the Internet of Things will enable. As products are built with embedded sensors, the component mix increases in complexity. As a result, manufacturing systems and supply chains will become more elaborate. Software embedded in products will need to be updateable when the inevitable shortcomings are found.
  • Security: If we believe data is valuable, then we need to be ready for people to want to take it from us — why would data be any different than any other precious item? The IoT context intensifies the need for security requirements; for example, sensors or software that allow physical control of the product make attacks easier.
  • Process Changes: Many business processes continue to be “pull” oriented. Information is gathered, then analyzed, then decisions are made. This works when change is slow. But with the IoT transition, data will stream in constantly, defying routine reporting and normal working hours. Flooding data from IoT devices will give opportunities for quick reaction, but only if organizations can develop the capacity needed to take advantage of it. Few mainstream large companies are ready for this, much less small- to medium-sized companies that lack the resources of their larger corporate brethren.

 

The Internet of Things is bringing and will continue to bring advances in how we do business. How well will executives, managers, and engineers execute on this vision? That is key.

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