by Gary Mintchell | Jun 23, 2015 | Automation, Events, Internet of Things, News, Operations Management, Process Control
Since I have to follow the Honeywell User Group (number 40, by the way) from afar, I’m relying on tweets and any Web updates or articles I can find.
So far, Walt Boyes (@waltboyes, and Industrial Automation Insider) has posted a few things to Twitter, mostly slides from presentations that are barely legible; Aaron Hand (Automation World) has posted a few tweets; Mehul Shah (LNS Research) has a couple of tweets—interestingly saying he things as an analyst that Honeywell has all the elements of a complete IIoT solution—hmmm; and Larry O’Brien, analyst at ARC Advisory Group has published a few tweets. If they would post links to articles in the tweets, that would be interesting.
Putman Publishing (Control magazine) once again is doing a digital “show daily” and therefore is posting several articles a day and blasting out an email daily.
Walt sent a tweet about obsolescence of open systems to which software geek Andy Robinson (@Archestranaut) replied. I didn’t understand until I saw Paul Studebaker’s article online (see below). The open systems in use today are getting long in the tooth. They feature Microsoft Windows XP—evidently never getting upgrades. Now there is no Microsoft support, the world has moved on, and all these DCS interfaces based on PCs are getting ancient.
Paul Studebaker, Control magazine’s editor-in-chief, reported on the keynote presented by Vimal Kapur, Honeywell Process Solutions president.
“ ‘Since Q4 of last year, since oil prices have changed, capital investments have been reduced’, said Kapur. Investments were up about 20% in 2010 and 2011, and remained flat through 2014, but so far, 2015 is down about 12%. Operational expense spending is also off.”
Kapur described how Honeywell is helping operators meet those challenges with strategies, technologies and services.
1. Honeywell will expand the role of the distributed control system (DCS). Now, the DCS has become a focal point of all control functions, taking on the functionality of PLC, alarm, safety, power management, historian, turbine control and more. Having a single system and user leverages scarce resources, and a single platform leveraging standards does more with less.
2. Cloud computing is becoming a standard part of HPS automation projects, with a logarithmic increase in the number of virtual machines in the HPS cloud over the past two years.
3. While process safety management has always depended on detecting unsafe situations, preventing them from causing an incident or accident and protecting people from any consequences.
4. For cybersecurity, Honeywell has created a team of specialists who can do audits, identify vulnerabilities and recommend solutions. But cybersecurity requires constant monitoring, so consider using a cybersecurity dashboard, “a step toward enabling a much higher level of proactivity by identifying cyber threats before it’s too late,” Kapur said.
5. Standardization holds great promise for reducing cost and time to production by allowing pre-engineering of control systems.
6. Honeywell continues to expand and refine its field device products to offer a complete line of smart instrumentation that can be preconfigured and use the cloud for fast auto-commissioning, and that have full auto-alerts and diagnostics to enable predictive maintenance.
7. OPC UA is becoming the key to leveraging the Industrial Internet of Things (IIoT).
8. Kapur told attendees their existing investments are not fully leveraged.
9. Expansion of mobility is changing workflows and the responsibilities of individuals.
10. Honeywell is driving more outcome-based solutions in services.
Jim Montague, Control executive editor, reported on the technology keynote.
(Jim, you need to update your bio on the Control Global page)
“This is a transformative time in process controls, rivaling the open process systems introduced in the early 1990s,” said Bruce Calder, new CTO and vice president of HPS, in the “Honeywell Technology Overview and New Innovations” session on the opening day of Honeywell User Group (HUG) Americas 2015, June 22 in San Antonio, Texas. “Today, the words are cloud, big data, predictive analytics and IoT, but this situation is similar to when Honeywell pioneered and invented the DCS in the early 1970s. For instance, our Experion PKS integrates input from many sources, which is what big data and the cloud aim to do, and our Matrikon OPC solution gives us the world’s leading contender for enabling IoT in the process industries. And all these devices are producing lots more data, so the question for everyone is how to manage it.
“This is all part of the digital transformation that Honeywell has been leading for years. So Experion and our Orion interfaces enable IoT because they collect and coordinate vast amounts of data, turn it into actionable information and turn process operators into profit operators. At the same time, Honeywell enables customers to retain their intellectual property assets as they modernize and do it safely, reliably and efficiently.”
My analysis:
1. The downturn in the price of a barrel of oil whose impact we first noticed with the decline in attendance at the ARC Forum in February has really impacted Honeywell’s business.
2. Honeywell, much like all technology suppliers, addresses the buzz around Internet of Things by saying we do it—and we’ve always done it. (mostly true, by the way)
3. Otherwise, I didn’t see much new from the technology keynote—at least as it was reported so far.
4. I got some good reporting, but It’s a shame that all the media has retrenched into traditional B2B—reporting what marketing people say. You can read that for yourself on their Websites. Context, analysis, expertise are all lost right now. Maybe someone will spring up with the new way of Web reporting.
At any rate, it sounds like a good conference. About 1,200 total attendance. Even with oil in the doldrums, the vibes should be strong.
by Gary Mintchell | Jun 9, 2015 | Automation, Marketing, News
What Does It Mean When An Industry Consolidates?
For companies in the control and automation space, as well as manufacturing in general, acquisitions power growth.
Rockwell Automation became a factor in process automation through a number of strategic acquisitions. Siemens fulfills its digital manufacturing vision through acquisitions. ABB, until recently, pursued a growth by acquisition strategy. Schneider Electric, keeping pace with European rivals swallowed Invensys—and much to my surprise seems intent on not only keeping but even building its software presence.
What is the result of acquisitions in an industry? Consolidation. And the result of consolidation? Less competition.
Writing in Industry Week Michael Collins, president of MPC Consulting, asks, Is Manufacturing Industry Consolidation Stifling Competition and Innovation?
That is a fair question. I have been surveying the industry in the two years after leaving Automation World (and Maintenance Technology, where I stayed briefly) looking for what’s new and interesting. The latest cool startup was ThingWorx, which sold to PTC. There are companies doing instrumentation, control and automation well, but not much really new or innovative.
Collins tries out a definition, “Capitalism is a free market system that is supposed to promote competition. In capitalist theory, competition leads to innovation and more affordable prices for consumers. Without competition, a monopoly, oligopoly or cartel may develop.”
This statement contains an amount of belief, but it does describe a market economy in keeping with the 18th Century “liberals” who valued “liberty” over government. The economic theory superseded mercantilism where the government picked winners and losers.
Wishing for more government regulation, Collins reviews history, “This formation of monopolies and oligopolies also occurred in the Gilded Age, when the robber barons controlled entire industries, including oil, railroads, steel and the telegraph. The consolidation did not stop until President Theodore Roosevelt broke up the monopolies using antitrust legislation.”
Today’s monopolies/oligopolies
Collins then surveys today’s consolidations:
- Airlines
- Banks–“In 1995, the six biggest U.S. banks had assets equal to 18% of GDP. Today, they hold assets of about 63% of GDP.
- Search Engines–The search engine business is dominated by Google, which, according to Forbes, owns 90% of the market in non-mobile search worldwide.
- Media Companies–In 1983, 50 companies controlled the vast majority of news media including newspaper, magazines, radio and TV stations, books, movies, videos, and wire services. Consolidation reduced the original number to 24 companies by 1992 and to six companies by 2000. Today, five corporations—Time Warner, Disney, News Corp., Bertelsmann (of Germany) and Viacom control the majority of the U.S. media industry.
- Hospitals
Manufacturing industries also have consolidated:
- Meat Packers–In 1982, the five largest meatpackers controlled 16% of the meat industry. Today four firms control 85% of the beef market, an oligopoly that includes National Beef, Cargill, Tyson, and JBS (which purchased Swift).
- Microsoft
- Intel
- Beer–At that time (1970s), there were 43 firms making beer, and the largest had 25% of the market. Today two firms—Anheuser Busch and Miller/Coors—own 90% of the non-craft beer market.
- Autos–The auto industry is now a global industry where five multinational companies have 50% of the world market. The top 10 auto manufacturers control 70% of the world market. [Note: and now the Chrysler CEO is drumming up support for a merger with GM.]
- Oil and Gas–Exxon merged with Mobil Oil and Conoco merged with Phillips. Along with Chevron and Occidental Petroleum, these four giants have 70% of all oil produced in the U.S. (1,919 barrels).
Collins concludes:
I think it is in the DNA of capitalism to create oligopolies and monopolies, and they can only be restricted by government regulation.
Gary Responds
Often consolidation is a reflection of a mature industry. Not much is happening. It’s an industry ripe for disruption.
A number of entrepreneurs are trying innovative airline models. Who knows when one will “take off”, so to speak?
Doctors are forming small companies, removing outpatient surgery and other services out of the hospitals.
Brewery consolidation means companies run by finance people rather than product people. While many will buy according to price even if the taste is not there, the interesting end of the market is now wide open among small craft brewers. When I travel, I always ask for the local beer.
Microsoft is being pressured by Linux in the enterprise and smartphone and tablet products in the low end. Google docs are a viable alternative to Office.
Intel is pressured on many sides with new competition.
Software as a Service models are pressuring the major automation software companies. And open source hardware and software threaten disruption of those markets.
Innovation often comes from outside the dominant market leader group. It is difficult to predict. But there is no doubt disruption is occurring. What’s that famous phrase? “The future is here, just not evenly distributed.” Yep.
by Gary Mintchell | Jun 1, 2015 | Automation, Internet of Things, Manufacturing IT, Networking, News, Operations Management, Technology
How many careers have you had?
Some may have chemical engineering or computer science degrees and are still doing process control or computer networking. But many of us have wound up with a circuitous path to where we are now. In a different industry. Or doing sales or management rather than pure engineering.
The key for career flexibility and advancement is continuous learning.
For a very long time, I’ve been concerned with the prevailing “wisdom” that education exists solely for vocational enhancement.
Here is a voice from the Silicon Valley venture capital community issuing a warning much as I would. In Hard-Core Career Advice for a 13-year-old, James Altucher notes, “[My experience] shows that school is too focused on ‘education leads to a job.’ This is not true anymore. “
He continues, “The reality is the average person has 14 different careers in their lives and the average multi-millionaire has seven different sources of income. So anything that is ‘one-job focused’ will create a generation of kids that will learn the hard way that life doesn’t work like that.”
I have always believed that education is necessary for personal growth.
There are more of my thoughts on this topic in my (mostly) weekly newsletter that went out today.
I am typing this article outside the press room on the pool deck of the Grand Hyatt in San Diego. Press room? Yes, I’m at Rockwell Automation TechED. I find myself needing to cut back on the amount of travel. In a couple of weeks, I’ll have to report on both Honeywell and Siemens from the reports of my friends. Yes, they are the same week in different parts of the country. I just couldn’t make them. But this week in San Diego worked.
Plus, this is my 9th one of these, I think. Formerly RSTechED (they like the capital d–that makes it a logo rather than text), it is now dubbed Rockwell Automation TechED. The reason is there is an expansion of training opportunities beyond the initial HMI/SCADA and programming software. It now includes information systems, new commercial technologies, and discussion of new hardware products.
Attending these events is one way professionals participate in continuous learning.
Connected Enterprise
Rockwell has maintained a consistent theme for many years–the Connected Enterprise. It is still building upon that vision. Cisco, Panduit and Microsoft remain as top-tier partners. EtherNet/IP, the Industrial IP Consortium, and mobility remain as foundations.
There will be more to contemplate this week as I have four defined interviews and many other opportunities. The connected enterprise really is a vision beyond just the Industrial Internet of Things. And Manufacturing 4.0 remains a German initiative mostly targeting Germany’s strength in machine building. I’ve been removed from the US “Smart Manufacturing” circle, but I don’t see it really have a huge impact in the market.
But smart, connected devices, machines, lines, plants, and enterprises still point to the future of manufacturing.
by Gary Mintchell | May 6, 2015 | Automation, Internet of Things, Manufacturing IT, News, Operations Management, Technology
In the rush of a lot of news and a vacation thrown in, I’m still digesting news from Hannover Messe in April. Microsoft had called and asked if I could stop by for an interview, but unfortunately I was not at Hannover.
Below is a Microsoft blog post. The writer posits three industrial ages, and then he surprises us by announcing the arrival of a fourth. Interestingly, it is at Hannover two years ago where Industrie 4.0 sprang forth into our consciousness. Here is Microsoft’s take on the fourth generation of manufacturing along with a few specific examples of what it means in practice.
I think this is a good, though not necessarily complete, look at aspects of Industry 4.0.
From the blog
When we think about what it takes to build a successful business, there were three main eras, which characterized important shifts in the global marketplace. The first was the industrial revolution when people began to mass-produce and distribute goods with tremendous scale and efficiency. Since everyone received information at the same time and speed was not an issue, change wasn’t particularly fast.
What followed was the Information Age where people weren’t just using technology to drive production efficiencies; they were using it to drive information efficiencies. During this time, competitive advantage began to shift to our access to information.
Today, information and data are ubiquitous which has had a tremendous effect on both our digital work and life experiences. The world has formed a giant network where everyone has access to anyone and everything. Some people refer to this as the Connected Age.
However, the ubiquity of data and connected devices, coupled with important advances in machine learning, are powering a new set of capabilities called the Internet of Things (IoT). IoT is now at the forefront of a fourth era in business productivity. With IoT, companies worldwide are transforming the way they plant crops, assemble goods and maintain machinery. Now, several Microsoft customers and partners, including Fujitsu, KUKA Robotics, and Miele, are announcing IoT initiatives that will change the way people live and work.
IoT’s influence on those companies and many others is on display this week at the large industry fair Hannover Messe, where the term “Industry 4.0” was first coined. Everywhere we look there are examples of physical assets integrated with processes, systems and people, and exciting possibilities are being fueled by this transformation.
At this event, Microsoft is showing how we’re helping manufacturers innovate, bring products to market more quickly and transform into digital businesses. Aided by unlimited compute power and rich data platforms, the creation of “systems of intelligence” that enable reasoning over vast amounts of data are empowering individuals and organizations with actionable insights.
Blending physical with digital
Fujitsu is bringing together its Eco-Management Dashboard, IoT/M2MP platform, Microsoft cloud services, and Windows tablets in a way that can enable managers, engineers, and scientists to improve product quality, streamline systems, and enhance functionality while reducing costs. For example, at its facility in Aizu Wakamatsu, Japan, Fujitsu is able to grow lettuce that is both delicious and low in potassium so that it can be consumed by dialysis patients and people with chronic kidney disease. They can track all of the plant info from their Windows tablets through the cloud. These solutions will also be able to help other agriculture and manufacturing companies transform their businesses through innovation.
Artificial intelligence is no longer a fantastic vision for the future—it is happening today. KUKA, a manufacturer of industrial robots and automation solutions, is using the Microsoft IoT platform to create one of the world’s first showcases that blends IT with robotic technologies into a smart manufacturing solution with new capabilities.
Intelligent Industrial Work Assistant (LBR iiwa), a sensitive and safe lightweight robot, uses precise movements and sensor technology to perceive its surroundings around a complex task like performing the delicate action of threading a tube into a small hole in the back of a dishwasher. Errors in the supply chain are addressed in real time through Windows tablets, making the automated process faster and easier. Through this demonstration, KUKA is highlighting how its LBR iiwa can collaborate with humans to jointly perform the task as peers working together without being controlled by a human or using a vision system.
Eyeing physical assets through a digital lens
For companies trying to understand how this approach can help, look at the infrastructure you already have. How can these assets become connected and intelligent? What kind of data would help to reduce cost, or increase agility? How can you use insights to grow revenue in existing operations, or offer those insights to customers and create new revenue streams?
The focus here is on transforming existing business models and adding cloud-connected services. In the age of Industry 4.0, manufacturing and resource companies will no longer compete over the products and features they offer, but on new business models they can either pursue themselves or offer to customers.
