by Gary Mintchell | Jan 29, 2018 | Data Management, Manufacturing IT, Operations Management
I am a sucker for open platforms. When the PR agency wrote with a teaser about discussing open platforms with Marc Lind, SVP Strategy at Aras, a PLM supplier, I bit. They threw in “digital twin” and “digital thread” as the topping and cherry atop the sundae, and the appointment was made.
We talked just before Christmas, but I’ve had such a crazy January that I’ve just now gotten to this in my pile of things to write.
PLM is often thought of as an enterprise application and covered by analysts who also watch such areas as ERP. I’ve talked with suppliers for years as a magazine editor, but they didn’t really seem to fit well within the magazines and they most likely were not advertising prospects, so there wasn’t pressure to write much. I’m saying that I’m not an expert in the area like some of my friends.
But I’ve followed the technology for many years. I’ve seen it coming—this coordination of digital and physical. As soon as the digital folks could get it all together—especially better databases and interfaces—then I knew we’d be much closer to the realization of digital manufacturing.
Lind told me something about the Aras platform. First, he said, was the attempt at doing away with silos where you might have your mechanical CAD, then have your electrical CAD, then perhaps your MES, and your ERP. He said not only was there a problem within manufacturing, think about the next step, say connected cars and other systems of systems, where things really need to interact across boundaries.
Check out the Aras platform. It’s interesting. And once again as I’m seeing more often, it is exploring a different business model that can make its platform and products available to a wider customer base. For other writing I’ve done on open platforms, click the small “ad” on my site to download the MIMOSA white paper.
Digital Twin
We also talked digital twin, one of the foundation concepts for digital manufacturing.
He said the term Digital Twin was coined back in 2002 by Dr. Michael Grieves while at University of Michigan. Effectively, the Digital Twin is an exact virtual representation of a physical thing. It’s as if the physical product or system was looking in a virtual mirror.
Grieves describes it as a mirroring (or twinning) of what exists in the real world and what exists in the virtual world. It contains all the informational sets of the physical ‘thing’ meaning its cross-discipline – not just a mechanical / geometric representation, but also including the electronics, wiring, software, firmware, etc.
Many people talk about Digital Twins in the context of monitoring, simulation and predictive maintenance which are all incredibly valuable and potentially transformative in their own right, however, there would seem to be much more to it.
“As products of all types move to include connectivity, sensors, and intelligence we can’t just think about the data streaming back from the field.”
Without accurate “Context” – Digital Twin – time series data generated during production and ongoing operation is difficult or even impossible to understand and analyze.
In addition, the ability to interpret and act upon these data often require traceability to prior information from related revisions – Digital Thread.
“To complicate matters further as artificial intelligence / cognitive computing is introduced the necessity for the Digital Twin becomes even greater. If Knowledge = Information in Context, then without a Digital Twin, machine learning won’t work as intended, will be rendered ineffective or worse… potentially leading to risky misinterpretations or misdirected actions.”
Finally, Lind warns, “Because without Context – Digital Twin – the IoT-enabled value proposition is severely limited and could introduce real liability.”
by Gary Mintchell | Nov 15, 2017 | Commentary, News
GE’s restructure includes sharp cuts at GE Digital.
Jeff Imelt had a dream for GE. It would get on board the digital manufacturing train. They would ride it toward new modes of profitability. He built a division called GE Digital and spent a lot of money on it.
Then profits and stock price took a dive. One of those activist investors got a seat on the board. The kind of guy who doesn’t want to build a company. He wants to break it up in order to get a quick payday.
Immelt’s out. Flannery, former CFO, is in. When he spoke at Minds + Machines a few weeks ago, we knew there were cuts coming. But he said he was all in on digital. But he also said he wanted more use of partners and less of inventing everything inside.
Well the shoe dropped. $400 million in cuts at GE Digital. Lots of layoffs. We’ll just have to see what the future holds for GE in the software business.
The creation of GE Digital and its Predix product befuddled most of us on the outside. There were many aspects that looked like they were thrown together in order to satisfy upper management’s drive to show results of digital transformation.
(Aside: those of us who have worked in product develoment, like me, have never seen upper management pressure to get something released before its time—he said sarcastically.)
From The New York Times, “GE Digital, Mr. Flannery said, “continues to be vital to the company.” But its spending will be trimmed sharply as it concentrates on a narrower set of products that improve the efficiency and performance of G.E.’s industrial equipment.”
by Gary Mintchell | Jun 6, 2017 | Internet of Things, News
Digitalization is the current hot word describing the latest manufacturing strategies. The concept has morphed from Industrie 4.0, Industrial Internet of Things, and smart manufacturing. The word was all over Hannover Messe this year, and one of the more fervent advocates was Siemens.
How important is this, really?
“What’s at stake with digitalization is the future of manufacturing competitiveness,” says Dean Bartles, Founding Executive Director of the Digital Manufacturing and Design Innovation Institute. “Germany is ahead, and China is making a big move in this area. More and more countries are adopting these technologies. To remain competitive, US manufacturers are going to have to master digital technologies.”
Bartles was quoted in a report commissioned by Siemens, The race to a digital future: Assessing digital intensity in US manufacturing.
On behalf of Siemens, Longitude Research surveyed 209 senior executives and directors of large US manufacturing organizations to understand the progress of digitalization among discrete and process manufacturers. Topics include trends in digitalization, examples of successful adaptation and suggestions to overcome barriers to moving forward in the digital age.
The Webpage includes a benchmarking tool so that you can compare your efforts to those in the study.
Based upon my own conversations with a variety of suppliers and implementers, I am not surprised that the researchers show two types of adopters: the ‘Efficiency Experts’ and the ‘Revenue Re-inventors’. Both groups are deploying digital technologies to improve productivity and efficiency, but the latter is leading the way in exploring how digital can be progressed even further – to transform their business model and unlock new markets.
Firms in the Revenue Re-inventors group are more likely than Efficiency Experts to say that their financial performance is ahead of their peers. In particular, Revenue Re-inventors are more likely to create new revenue streams from the provision of digital services – as Rolls-Royce has done through its Engine Health Management service, which uses onboard sensors and live satellite feeds to track the health of thousands of engines operating worldwide.
Once again, we should not be surprised. When did anyone cut their way to prosperity? On the other hand, I’d have expected the efficiency people to show more gains than they did. Wonder what their overall programs were?
The research evaluates manufacturers’ digital capabilities across the following core dimensions, using their relative progress in each to provide an overall score out of 100.
• Data intensity: data strategy, data collection, storage and analysis, and data-driven decision-making.
• Connectivity: sensor usage in production and output, and networking of production equipment and plants.
• Adaptability: customization capability, design and modeling, and robotics.
• Integration: enterprise and supply-chain data integration.
• Security: strategy and systems implementation.
• People: leadership, skills and training.
Does implementing a strategy show results, or is it more important as to how you implement a strategy? Research reveals that increased adoption rates do not necessarily translate into better results. Rather, the most successful manufacturers are those which take a bold and strategic approach to deploying the digital technologies they do invest in, and use this to predict trends and identify new opportunities to delight customers.
Here is a finding that is surprising—while 69% of the Revenue Re-inventers use predictive analytics, only 44% of the Efficiency Experts do. I’d figure that predictive analytics for such things as predictive maintenance would be enticing for the efficiency people.
Another finding that seems a little weird—the study sorted out the top five digital technologies. First off, this is definitely a Power Law curve, and secondly these don’t seem to fit together.
Cloud computing is almost universally adopted, a fact which should be no longer surprising. Drop some and then you have connected sensors—but we’ve been connecting sensors for years. Then a considerable drop off to 3D printing. The last is advanced data analytics—the one of all of these that seems to get the most media coverage.
This entire area has received at least four years of intense media coverage. Analyst firms have begun reformatting practices to specifically call out these strategies. Are we beyond the hype curve, yet? Or is it still in the smoke and mirrors stage?
by Gary Mintchell | Sep 12, 2016 | Manufacturing IT, Operations Management, Technology
Are we getting beyond the speculation and hype of ideas such as Industry 4.0 and digital manufacturing? This latest survey and study by PwC (www.pwc.com/industry40) reveals that executives anticipate benefits from investments within two years.
PwC says its 2016 Global Industry 4.0 Survey is the biggest worldwide survey of its kind, with over 2,000 participants from nine major industrial sectors and 26 countries. It goes to the heart of company thinking on the progress of Industry 4.0. The study explores the benefits of digitising the horizontal and vertical value chain, as well as building your digital product & service portfolio.
Industry 4.0 at a glance
“We include a detailed description and definition of Industry 4.0 in the main global report on the survey.” Digitisation and integration of vertical and horizontal value chains, digitisation of product and service offerings, and the development of new digital business models and customer access platforms are driving Industry 4.0 adoption.
Digital Enterprise From the Study
Behind the scenes of the world’s leading industrial products companies, a profound digital transformation is now underway. Companies are digitising essential functions within their internal vertical value chain, as well as with their horizontal partners along the supply chain. In addition, they are enhancing their product portfolio with digital functionalities and introducing innovative, data-based services.
- Industrial manufacturing companies plan to invest 5% of annual revenue in digital operations solutions over the next five years. And they are setting themselves ambitious targets for the level of digitisation and integration that can be achieved.
- Many companies are already producing machines to deliver on the vision of the connected factory, using the power of the internet to link machines, sensors, computers, and humans in order to enable new levels of information monitoring, collection, processing, and analysis. This is adding to the products and services that companies can offer their customers, helping them work in collaborative ways in the design of future machines and their digital environment to boost performance.
- A number of technologies, including robotics, cobotics, 3D printing and nanotechnology, have direct relevance for many industrial manufacturing applications while other technologies, such as augmented reality, can enable manufacturers give customers realtime information and training at the point of use.
Some of these developments are maturing now. Others remain for the future. The rate of adoption of Industry 4.0 technologies by industrial manufacturing companies is accelerating fast.
The digitisation, integration and automation opportunities offered enable companies to collaborate both internally and across their value chains in ways that can provide a step change in productivity as well as design and build quality. And they are opportunities that are increasingly important as companies seek to stay relevant as the era of digitally connected smart infrastructure develops.
Analysis
The point that fascinates me is the speed of adoption. It was only three years ago when I was introduced to the “hype” of Industry 4.0. Then followed speculation and hype. Typical technology curve, I think.
However, most of the technology existed. It just took the foresight and will to begin and the intelligence of implementation. Ways to increase sales and reduce costs both contribute to profitability. Maybe the strategies and technologies behind Industry 4.0 and Internet of Things and digital manufacturing actually will help us cross the next manufacturing divide.
by Gary Mintchell | Sep 6, 2016 | News, Security
Siemens invited a couple of writers to the Cincinnati area headquarters of PLM and a Cyber Security Center of Excellence to witness an internal presentation to Siemens employees. The presentation included both an overview of cyber security and the Siemens response plus Siemens’ plans to build a sizable business in the area. I was there along with safety and security writer Greg Hale.
Eric Spiegel, President and CEO, Siemens USA, kicked off the day with a presentation on the importance of cyber security and Siemens’ intent to build the business. In fact, Spiegel noted, “We want to grow the cyber security services in the US at 2x market speed. Cyber was a small part of our business, but we see much potential for growth.”
Spiegel related, “I was at a White House meeting in the situation room, had a chance to meet the President. He talked to me directly about the need to protect critical infrastructure.” Spiegel continued that hacking is top of mind in this area. Recognizing Siemens’ own strategies in the area, he continued, “If digitalization is important for the future of manufacturing, then cyber security is also important. Attacks on critical manufacturing are becoming more frequent and intense. Two-thirds of CEOs rank cyber security as one of the top two things on their agenda. In response, we have 50 differentiated service offerings in cyber today.”
Cyber Security Golden Nuggets
Joanna Burkey, U.S. CISO, moderated the first panel discussion which was more technical in nature. She suggested to look for what she called “Golden Nuggets”, that is, places where a risk-based approach suggests vulnerabilities. For example, she noted, one is source code.
Siemens began the effort to uncover these golden nuggets and then decided to take what it learned to its customers. When Siemens goes out to a customer to consult on cyber risks, it follows a process that includes mapping IT assets (for example, SAP, end points, encryption), developing an asset classification system, designing an holistic protection process coordinating with business, IT, and vendors.
Siemens has identified about 700 of these golden nuggets and is in the process of mitigating 121 of them. It expects the number to grow to about 1,000.
Rolf Reinema, Head of Technology Field, added that protecting Intellectual Property goes beyond hardware and software, but it also includes algorithms. In process industries, these might be called recipes residing in a processor. “OT attacks are complex. Having so much legacy equipment creates vulnerabilities.” Then he left us with this sobering thought, “If a hacker shows they can attack, they’ll ask for a substantial deposit of bitcoins so that they won’t carry out the attack.” Think of the blackmail you could be open to.
Udo Wirtz, Head of Technology Field, calls the Internet the new company Intranet. “We are shining a light in a cave, we now can see some of the problems where five years ago not so much.” Wirtz also addressed phishing attacks. These attacks are still an important problem tricking people into clicking on what looks like a legitimate link which instead gives the hacker access to user accounts and even administrative rights. “So they are phishing all of us,” he concluded.
In March the FBI came to Siemens and GE and said that both had been contacted by Facebook. It seems that someone was “friending” employees on Facebook and building an innocuous relationship. Then they sent a link that turned out to be malicious. “It used to be stupid to click on a link. But today the messages are so sophisticated that it is hard to tell legitimate from phishing.”
Growing Cyber Security as a Business
The next session was a Marketing Panel addressing how Siemens will move cyber from internal to a customer service. Rajiv Sivaraman, VP and Head of Plant Security Services, said that given the development of digital manufacturing, cyber is high on the enterprise list. Siemens is laying foundations for taking customers on a journey to awareness. Answering the question about scaling the business, Sivaraman noted a progression of going from consulting and “hand-holding” to ultimately scaling to managed services. Siemens is also checking out partners for both C-Level and operations level consulting.
Ken Geisler, VP of Strategy & Markets, Energy Management Digital Grid, reported grid suppliers do have compliance requirements. As they grow many more points of access, e.g., smart meters on homes, there is growing concern for cyber security. Cyber is a huge potential market with many competitors.
Judy Marks, Executive Vice President, Global Solutions, Dresser-Rand, A Siemens Business, says that with the oil & gas market it’s all about business and enterprise risk. Especially with the exposure of offshore facilities. They also have the challenge of operating in a heterogeneous environment. Siemens, through acquisitions, is now a leading service provider to O&G and plans to leverage that into growing the cyber business.
In his first year at Siemens, Leo Simonovich, Director, Global Cyber Strategy, said operations is the new frontier for attacks. Of all attacks, 30% are targeting of coming from OT. Customers are turning to Siemens “because we understand that environment. We can secure the technology stack.” Another sobering thought, your chances of an attack? 100%.
Jeremy Bryant, Head of PD PA secure networking solution business, added that customers (and Siemens) need to be worried about inside-out attacks as well as outside-in.
Overall, a profitable day in Cincinnati to learn what Siemens was up to. Several of the majors have some type of cyber division or initiative. Siemens appears to be ahead of that pack right now. As a user, you should be happy that suppliers are developing solutions to help in the battle.
