by Gary Mintchell | Apr 21, 2016 | Automation, Industrial Computers
The PC market, especially for consumers but also for business, is slowing. Manufacturers are turning to industrial PC market.The New York Times recently ran an article about Intel cutting jobs due to the continued slowdown in the PC market. Recently I wrote about Dell entering the embedded PC for industrial applications market, most likely due to the same market forces.
From The New York Times article:
Intel, the world’s largest maker of semiconductors, said on Tuesday that it was laying off 12,000 people, about 11 percent of its work force, as it continues to reel from a long downturn in global demand for personal computers.
The company’s chief executive, Brian Krzanich, announced the layoffs as part of a larger corporate restructuring, which will result in a $1.2 billion charge. Intel also reported lower-than-expected first-quarter earnings and reduced its projected revenue for the year.
“Intel has been known as the PC company,” Mr. Krzanich said in an earnings call with Wall Street analysts. “It’s time to make this transition and push the company all the way over” to supplying chips for things like smartphones, cloud computing, sensors and other devices.
Here is my introduction to the Dell embedded PC announcement:
Faced with a declining market for desktop PCs and a burgeoning market for embedded PC, Dell has announced launch of its first purpose-built industrial PC (IPC) products. This release complements its entry into the Internet of Things market announced last fall at Dell World. [Note: I do some work with Dell on IoT issues, but that has no bearing on reporting this.]
Rising Industrial PC Market to Stabilize
While the global market for industrial PCs has experienced ups and downs in recent years, it is forecast to pick up in 2016 and will start to stabilize in 2018. The key reason for the increase in short-term growth is an expected improvement in the outlook for process industry investment and the continued use of industrial PCs in applications outside the established areas of industrial automation.
Global revenue from industrial PCs is forecast to grow at a compound annual growth rate (CAGR) of 6 percent from 2014 to 2019, reaching $4.3 billion, according to IHS Inc.
“While the world market for industrial PCs has enjoyed relatively strong growth since 2013, recovery is projected to be slower through 2016,” said Rita Liu, manufacturing technology analyst, IHS Technology. “This slowed recovery is based on poor performance of downstream process-industry sectors in the current economic environment, with very low oil prices, a global downturn in mining, and the like.”
Europe, Middle-East and Africa (EMEA) was still the largest market for industrial PCs in 2014, at $1.2 billion, or 38 percent of the global total, according to the IHS Industrial PCs Intelligence Service. Asia-Pacific was the second-largest market, with estimated revenues of $ 1.1 billion. “It is worth noting that due to the slowing Chinese economy, the Asia-Pacific market for industrial PCs is projected to grow more slowly,” Liu said. “In fact, the Asia-Pacific market is expected to fall behind the American market this year.”
Of course the performance of the industrial PC market depends largely on the underlying growth in the sectors that use them, including discrete and process manufacturing sectors, as well as building automation, medical, transportation and infrastructure and other non-industrial sectors. Industrial sectors accounted for over half of the world market in 2014 and 2015, and they are expected to grow much more slowly than non-industrial sectors. Generally transportation and infrastructure, medical, and gaming sectors will grow more quickly than the general market through 2019.
Robotics is the fastest growing industrial sector for PCs; followed by materials-handling equipment; food, beverage and tobacco machinery; and packaging machinery. “Tobacco and packaging machinery are closely connected with consumer markets and enjoy relatively stable performance, no matter what the overall economic situation might be,” Liu said.
by Gary Mintchell | Mar 7, 2016 | Operations Management, Software
Tim Sowell always packs many operations management ideas into a brief blog post. Sowell is a VP and Fellow at Schneider Electric Software (Wonderware). I’ve looked at his posts before. He is always thinking out in front of most people.
His Feb. 14 post, Composite Frameworks What Are They, the Shift to Model Driven vs. Custom: How Do They Play?, takes a look at moving the user experience of operations management software into newer territory.
He probably says much more, but this is the take I’m going to analyze. He’s pointing out the difficulties of using traditional approaches to programming and presenting User Interfaces in a way that keeps pace with today’s expectations.
“Traditionally companies have built User Interfaces to an API, with the calls needed to execution actions and transactions; these have worked well especially within a plant. But a key to operational systems being effective and agile is their ability to adapt on a regular basis. This requires a sustainable and evolving system. This is especially important in form/ transaction activities where information is provided and where actions/ data input, and procedures need to be carried out.”
He does not stop there but proceeds to enumerate some challenges:
- Operational Process cross-over functional domains and applications
- Lack of governance
- AgilityResponsive manufacturing business processes
- Increase the performance of their people assets
- Too much Custom Code, making it unmanageable and evolutionary
He wonders why we can’t use techniques gleaned from Business Process Modeling. That’s a good question! He notes that some people will say that BPM is not real-time like manufacturing/industrial applications are. But he rebuts that “this also aligns with what the industrial world is very comfortable world with—that of ‘stable in control loops’.”
Operations management solutions
Here are some proposed solutions:
- Providing a graphical configuration environment for the capture and defining of operational process including the validation of data input, and guiding actions, working inline with the user Interface/ forms etc.
- Providing a framework for building of reusable forms, and reusable procedures that can be managed as templates and standards to enforce consistent operational practices.
- Empowering the operational domain people to develop, evolve and manage their procedures.
“Most of all empowering the different roles in the plant, that operational close loop moving to an “activity” centric system where information, and action is driven from a consistent operational model and practices.”
This is a consistent Sowell message. Let’s see what we can template-ize or project as a model rather than custom code everything.
More and more owner/operators and users I talk to are getting tired of the expense and lead-time for custom coded projects. They need the speed and flexibility of using models and standards for application implementation. I think this is where Sowell was headed (if not, he’ll correct me, I’m sure). This will serve to move industry forward as a more profitable contributor to enterprise health.
by Gary Mintchell | Mar 3, 2016 | News, Organizations, Standards, Technology
Interoperability among systems spurs economic and technological growth. Two of the leading proponents of new strategies for this next Industrial Revolution that we are beginning recently met.
Representatives of Plattform Industrie 4.0 and the Industrial Internet Consortium met in Zurich, Switzerland to explore the potential alignment of their two architecture efforts – respectively, the Reference Architecture Model for Industrie 4.0 (RAMI4.0) and the Industrial Internet Reference Architecture (IIRA).
The meeting was a success, with a common recognition of the complementary nature of the two models, an initial draft mapping showing the direct relationships between elements of the models, and a clear roadmap to ensure future interoperability. Additional possible topics included collaboration in the areas of IIC Testbeds and I4.0 Test Facility Infrastructures, as well as standardization, architectures & business outcomes in the Industrial Internet.
The Zurich meeting was originally proposed by Bosch and SAP as members of the steering committees of both organizations. The meeting constituted an informal group which will continue their work on exploring potential alignment between I4.0 and IIC.
The open, informal discovery group included Bosch, Cisco, IIC, Pepperl + Fuchs, SAP, Siemens, Steinbeis Institute and ThingsWise.
Every press release these days, especially when it is an association of many members, includes the requisite quotes. Below are thoughts from some of the leaders.
Industry Reference Architecture Thought Leaders
State Secretary, Matthias Machnig, Ministry for Economic Affairs and Energy: “We welcome the cooperation of both initiatives as an important milestone in the cooperation of companies internationally. The combined strengths of both IIC and Plattform Industrie 4.0 will substantially help to pave the way for a mutually beneficial development of a digitized economy for our international businesses.”
Prof. Dr. Siegfried Russwurm, Technical Director of Plattform Industrie 4.0, CTO and Member of the Managing Board of Siemens AG, said “Collaborating with other initiatives is important, especially for Germany’s export-oriented economy. We are highly interested to cooperate intensively with others in order to pave the way for global standards. Cooperating with IIC – and with other consortia – is an important step in the right direction”
Dr. Richard Mark Soley, Executive Director of the Industrial Internet Consortium, commented, “The effort shows that smart technical people can bridge any gap and find a way to solve problems that might otherwise have created barriers to entry in the adoption of IoT technology for industrial applications. I applaud the participants and thank them for their initial work, and look forward to a successful collaboration moving forward.”
Dr. Werner Struth, member of the Bosch board of management: “This is a huge accomplishment for industry adoption of the Industrial Internet of Things, as it will simplify technology choices immensely and lead to greatly enhanced interoperability.”
Bernd Leukert, Member of the SAP Executive Board emphasizes the importance of alignment between IIC and Plattform Industrie 4.0-initiated testbed initiatives: “This will allow for a much smoother international cooperation between smaller companies and larger enterprise to test out use cases and to initiate standards.”
Greg Petroff, Chief Experience Officer for GE Digital, said: “Breaking down the barriers of technology silos and supporting better integration of these architectures efforts will be key to advancing the Industrial Internet. This collaboration will help build a vibrant, united community around standards that drive integration toward solving the world’s toughest challenges.”
Robert Martin, Senior Principal Engineer in Cyber Security Partnership, The MITRE Corporation and member of the IIC Steering Committee, said “Bringing together the work of the Industrial Internet Consortium and the Plattform Industrie 4.0 Konsortium will dramatically increase the international value of both efforts and help to clarify and resolve the problems and concerns facing the global Industrial IoT marketplace quicker and more effectively than either could do alone.”
“I’m excited to see the two premier Industrial Internet of Things organizations aligning their efforts,” states Stan Schneider, CEO of Real-Time Innovations (RTI) and a member of the IIC Steering Committee. “Industrie 4.0’s strong foundation in industrial manufacturing and process combines well with the IIC’s emphasis on emerging IIoT applications in healthcare, transportation, power, and smart cities. We are working aggressively to align the connectivity infrastructures of the underlying DDS and OPC UA connectivity standards. We look forward to driving the rapid growth of the IIoT across all industries.”
by Gary Mintchell | Dec 7, 2015 | News
This is interesting news. I’ve noticed GE doing much reorganizing around the former automation businesses. I actually thought Bernie Anger was going off in a different direction–perhaps with the software group. Instead, he’s leading the embedded computing business (the old SBS and VMIC businesses, if you remember way back when) off on its own.
For some time, marketing in the old GE Fanuc, now GE Intelligent Platforms, business has become quite differentiated. They’ve tried some agencies for PR. But the software side (including the Cimplicity and Intellution businesses which “merged” into Proficy) are seemingly subsumed into the huge investment GE is making corporately in software–note the ads it is running on TV recently. I never know what to call the division, group, or name when I write about it.
Here is the press release regarding the divestiture.
Abaco Systems, an industry-leading supplier of sophisticated, open architecture electronic systems for aerospace, defense and industrial applications, today announced its separation from the General Electric Company (“GE”), opening a new chapter in the company’s history.
“This is a momentous day for Abaco Systems,” said Bernie Anger, president and CEO of Abaco Systems. “Today, we start the next stage in our company’s future – pursuing a strategy focused on satisfying the needs of customers looking for high-performance embedded technology and systems that can withstand the harshest of conditions. I am very proud of our team who has prepared us for this day, and extremely thankful for the support that we have received from our customers during the transition process.”
“As an independent embedded technology and systems company,” continued Anger, “we see real opportunity to take our extensive experience, mission-critical technology and the repeatable business processes we have developed to continue building a business that combines a commitment to technical innovation with extreme focus on customer service. The company is positioned to benefit from long-term market trends, including shifts towards open architecture, interoperable systems, smarter purchasing initiatives and technological modernization.”
Customers have been notified of the change in ownership and have welcomed the news of the new Abaco Systems. Feedback from customers has been extremely positive:
“Thanks for letting us know about the GE transition to Abaco Systems,” said Rance Myers, Director of Engineering at Honeywell Aerospace. “We’re looking forward to the continued relationship and working with Abaco as we progress forward on new projects.”
“SNC is a long-time customer of the GE team and is very excited that they are moving to this new phase in their business,” said Greg Cox, Vice President, CNS at Sierra Nevada Corporation. “It demonstrates the strength of this cohesive team and we look forward to working with them in their new structure.”
Veritas Capital, a leading private equity firm that invests in companies that provide critical products and services to government and commercial customers worldwide, acquired Abaco Systems from GE. One customer noted the strength of the Veritas reputation:
“My staff was particularly pleased that Veritas acquired GE’s embedded computing business, because Veritas apparently has such an ‘active’ interest in the GE products,” said Dr. Mark Gaertner, Manager, Bomber Programs, Northrop Grumman Corporation. “That’s good for NGC and the USAF, because we need stability in our products and suppliers for programs that stretch out over the next 25+ years. We look forward to continuing our relationship.”
“The good news for our customers is that, from day one, it is business as usual,” concluded Anger. “They will continue to deal with the people they have always dealt with, re-energized by an opportunity to really make a difference.”
Abaco Systems is a global leader in open architecture computing and electronic systems for aerospace, defense and industrial applications. Spun out of General Electric in 2015, we deliver and support open modular solutions developed to upgrade and enhance the growing data, analytics, communications and sensor processing capabilities of our target applications. This, together with our 700+ professionals’ unwavering focus on our customers’ success, reduces program cost and risk, allows technology insertion with affordable readiness and enables platforms to successfully reach deployment sooner and with a lower total cost of ownership. With an active presence in a significant number of national asset platforms on land, sea and in the air, Abaco Systems is trusted where it matters most.
