Sudipta Bhattacharya
One thing is for sure, unlike a couple of years ago, Invensys Operations Management is firmly in the hands of leaders who know process automation. Another thing is that expectations were exceeded with registrations totaling more than 1,200. (New rule of thumb–figure about 70% customers.) The third thing is that CEO and President, Sudipta Bhattacharya, and his team knew they had to clearly spell out just what an Enterprise Control System is.
The point of ECS is to close the “control gap” between strategy and execution, or put another way by Invensys Operations Management President, Sudipta Bhattacharya, “It’s time to close the profit control loop.”
“We will be foremost provider in the world of ECS. No one has a package solution but us. This is our vision of ECS, and it is one that leads to operational excellence,” added Bhattacharya. The challenge in manufacturing is to be able to manage the real-time plant. To do that, you must understand the plant floor. “That is our challenge and our opportunity,” he added.
The key is to integrate all the levels of the enterprise. Bhattacharya noted the company’s challenge is how well it can put the pieces together better and faster than the competition. “That is our journey,” he said.
Information without context is useless. Bhattacharya pointed to the Skelta acquisition which has led to ArchestrA Workflow—a technology that adds actionable context to plant information.
Grant Le Sueur, director of InFusion Product Marketing, demonstrated a scenario of a leaking control valve to show some of the ECS value. The leaking valve could lead to potential loss of production, profitability or even potential danger.
Using SimSci-Esscor Dysim, Foxboro I/A Series distributed control system (DCS), Wonderware InTouch, Avantis Pro & CM, Wonderware IntelaTrac and ArchestrA Workflow from Invensys plus integration to SAP, Le Sueur showed how the integrated solution delivers consistent operational integrity, a full audit trail for traceability, control excellence and asset excellence, plus involvement of all plant and business stakeholders to solve both plant and business problems.
So, people have written to me asking, “Does IOM have a chance?” I will take that question to mean, does it have a chance to survive. I think the answer is yes. Two years ago, it was standing on a precipice overlooking the abyss of irrelevance. It was about 18 months ago when Invensys appointed Bhattacharya to his current position, brought together the rest of the brands and charged him with reforming the company. I’ve asked successful CEOs about team building in this sort of environment. The answer is always, measure the teams in months, not weeks. The team has come together well. The teams obviously enjoy working together. Investment in things that matter for process professionals is back on track. So, yes, IOM has a chance to survive–and be successful.
But then, execution is everything. So we’ll continue to watch performance.
Gary, while I respect your optimism, I heard nothing new from IOM that I have not heard many times over the past 5 years, and this team has been in place for nearly two years, not merely months, as you've suggested. I'm also very surprised that you feel that the leadership team understands process manufacturing. Many of those in key positions as direct reports or one report away from Sudipta have exactly zero years of experience in process (notably the Senior VP of Product Management). The current team is being driven by profitability and cash flow targets set by Invensys senior leadership that run counter to some of the ambition vision set forth here at OpsManage.
I'll agree with you that they have a chance, but a very small one and an increasingly short onramp on which to demonstrate whether this team can execute or not.
Unfortunately in times of change, there are people who feel disenfranchised or left behind. Compared to the regime of Paulett Eberhart, this is a more industry focused team. Some are process and some are software. The new world is a combination of the two. I occasionally stoop to reading the chronic complainers on Jim Pinto's "blog." I've been in the shoes of some of the complainers and recognized when it was time to move on. There are huge changes in the industry and in the company. Things will never go back to the old days of Foxboro and Wonderware. That time is past.
I don't know if the new direction will support a $2 billion company. Company size may shrink, I don't know. But without a new direction, the company was doomed. With a new direction, it will survive–I think.
By the way, there are other process companies in big trouble, too. Times have changed, and that requires big changes in company directions. Those who make the transition have a chance of survival. Some people think there will be consolidation with some companies buying others. I think that there is no good reason for a company to buy a $1 billion or greater company. There are half-a-dozen competitors. One or two may just fold up the tents and go away.
Any management (and employee) that is not worried about profits is doing the "cover your ears and singing la-la-la-la" thing. If you don't make profits, then you go out of business. Life is brutal in capitalism. Trust me. I worked for four straight companies in the 80s where top management forgot a few fundamental things — cash flow and profits. Result was many people wound up looking for new jobs in recessionary economies. I've been unemployed looking for a new position more times than I care to enumerate (and my wife and family for that matter). You'd better be focused on making money–period. It's not about a job for life–those don't exist in capitalism–and actually not in socialism, either. Either your company makes money–and you contribute to the success, or everyone loses.
So, I think that there will be an IOM in five years. What will it look like? I didn't address that. Interesting thought. I'll ponder. In the meantime–it won't be the old Foxboro and it won't be the old Wonderware. I'm sorry. I liked those companies. But it's the 21st century now. And things have changed.
Mr. Mintchell, you are coming dangerously close to appearing to be a paid shill for Invensys.
Hi "Al", Well, first off, I'm not paid by Invensys. I know that if I write anything positive about the company all the bitter, angry anonymous Foxboro employees will attack back. That's OK, I won't delete this even though I should since you and Mark are afraid to say who you are.
That must mean that you are still working for Invensys. Much as I try to say that I have sympathies for people in companies going through change, I have little sympathy for people who refuse to move into the current century and go to work every day bitter and negative. Seth Godin pointed out the two problems with whining today, http://sethgodin.typepad.com/seths_blog/2010/10/two-problems-with-whining.html .
Let's look first not at the company but at people. Attitude makes all the difference in the world to a person's health, relationships, outlook. If you cultivate a negative, bitter outlook on life at work, how can you be a loving father and husband? How can you love and relate to your God? These are the important things in life. It would be better to quit your job (and let someone who appreciates it get a job) than to kill yourself. I'm serious. I'm much more concerned with a person than with analyzing companies.
Second, I believe that even if KB had been picked instead of Paulett (certainly a far better choice, but water over the dam now), IPS would have changed. Without change, you would be working for a company (maybe) that has 67% of its revenues from service because all it's doing is servicing the installed base. And those revenues would be shrinking.
I don't think I've been bamboozled. I talk to many people I can't quote to get background information. There is a lot of optimism about the future. Customers are starting to come around to a better view of IOM. There are many reasons to be positive about IOM's survival. But it will be a very different company as it tries to meet the demands of the 21st century. But there are many challenges ahead.