Aveva Calls Off Schneider Electric Software Reverse Merger

Aveva Calls Off Schneider Electric Software Reverse Merger

A news item from the Department of the Blindingly Obvious. Aveva’s board has called off discussion for the “reverse merger” with Schneider Electric Software. It cited two reasons: the structure of the deal was overly complex and software integration issues. Yep, they are certainly correct on both counts.

You may recall that Schneider would give Aveva its software businesses (Wonderware, Avantis, SimSci, Indusoft, Citect I presume) and a huge chunk of cash in return for a 53% stake in the “New Aveva.”

I have watched many software mergers over the past 10 years. None ever achieved technology integration. They were all organizational and technical nightmares.

Then think about all the Wonderware technology embedded in Foxboro products. I’d get a headache even trying to sort through the legal and organizational problems.

A good software company

Wonderware (perhaps with other pieces of the software portfolio) would make a marvelous software company with adequate investment behind it. I still think that Schneider Electric will find a way to divest it. Running software is qualitatively different from running an electrical components and process automation business. Right now Schneider is still investing in the business, and that is a good sign.

Aveva Calls Off Schneider Electric Software Reverse Merger

HMI SCADA At the High End

I’m still pondering the whole HMI/SCADA market and technologies. I’m still getting a few updates after the Inductive Automation conference I attended in California and the Wonderware conference in Dallas that I missed.

The two have traditionally been referred to in trade publications together.

Today, I think three or four things are blending. Things are getting interesting.

SCADA is “supervisory control and data acquisition.” The supervisory control part has blended into the higher ends of human-machine interface. Data Acquisition software technology is a key platform for what we are today calling the “Industrial Internet of Things.” I’ve heard one technologist predict that soon we’ll just say “Internet.”

Data acquisition itself is a system that involves a variety of inputs including sensors, signal analyzers, and networks. The software part brings it all under control and provides a format for passing data to the next level.

HMI also involves a system these days. Evolving from operator interface into sophisticated software that includes the “supervisory control” part of the system.

Some applications also blend in MES and Manufacturing Intelligence. These applications, often engineered solutions atop the software platforms, strive to make sense of the data moving from HMI/SCADA either using it for manufacturing control or as a feed to enterprise systems.

Wonderware has been an historical force in these areas. Its original competitor was Intellution which is now subsumed into GE’s Proficy suite. The other strong competitor is Rockwell Automation. All three sell on a traditional sales model of “seats” and/or “tags.”

Inductive Automation built from enterprise grade database technology and has a completely different sales model. It is driving the cost of HMI/SCADA, and in some ways MES, down.

Competitors can meet that competition by either pursuing a race to the bottom or through redefining a higher niche. The winner of the race to the bottom becomes the company built from the ground up for low individual sales price.

Wonderware announcements

All of that was just an analyst prologue to a couple of items that have popped up from Schneider Electric Software (Wonderware) over the past couple of days.

timSowellTo my mind, Tim Sowell is addressing how some customers are taking these platforms to a new level.   Writing in his blog last weekend, Sowell notes, “For the last couple of years we have seen the changing supervisory solutions emerging, that will require a rethink of the underlying systems, and how they implemented and the traditional HMI, Control architectures will not satisfy! Certainly in upstream Oil and Gas, Power, Mining, Water and Smart Cities we have seen a significant growth in the Integrated Operational Center (IOC) concept. Where multiple sites control comes back into one room, where planning and operations can collaborate in real-time.”

I have seen examples of this Integrated Operations Center featuring such roles as operations, planning, engineering, and maintenance. But this is more than technology—it requires organizing, training, and equipping humans.

Sowell, “When you start peeling back the ‘day in the life of operations’ the IOC is only the ‘quarterback’ in a flexible operational team of different roles, contributing different levels of operational. Combined with dynamic operational landscape, where the operational span of control of operational assets, is dynamically changing all the time. The question is what does the system look like, do the traditional approaches apply?”

Tying things together, Sowell writes, “Traditionally companies have used isolated (siloed) HMI, DCS workstation controls at the facilities, and then others at the regional operational centers and then others at the central IOC, and stitched them together. Now you add the dynamic nature of the business with changing assets, and now a mobile workforce we have addition operational stations that of the mobile (roaming worker). All must see the same state, with scope to their span of control, and accountability to control.”

The initial conclusion, “We need one system, but multiple operational points, and layouts, awareness so the OPERATIONAL TEAM can operate in unison, enabling effective operational work.”

Intelligence

Here is a little more detail about the latest revision of Wonderware Intelligence to which I referred last week and above.The newest version collects, calculates and contextualizes data and metrics from multiple sources across the manufacturing operation, puts it into a centralized storage and updates it all in near-real time. Because it is optimized for retrieval, the information can then be used to monitor KPIs via customizable dashboards, as well as for drill-down analysis and insights into operating and overall business performance.

“Wonderware Intelligence is an easy-to-use, non-disruptive solution that improves how our customers visualize and analyze industrial Big Data,” said Graeme Welton, director of Advansys (Pty) Ltd., a South African company that provides specialized industrial automation, manufacturing systems and business intelligence consulting and project implementation services. “It allows our customers to build their own interactive dashboards that can capture, visualize and analyze key performance indicators and other operating data. Not only is it more user-friendly, it has better query cycle times, it’s faster and it has simpler administration rights. It’s an innovative tool that continues to drive quality and value.”

Wonderware Intelligence visual analytics and dashboards allow everyone in the operation to see the same version of the truth drawn from a single data warehouse. The interactive and visual nature of the dashboards significantly increases the speed and confidence of the users’ decision making.

Manufacturing Software Future Is Loosely Coupled in Layers

Manufacturing Software Future Is Loosely Coupled in Layers

timSowell

Tim Sowell, VP and Fellow at Schneider Electric Software, always writes thoughtful and forward-looking blogs about the state of manufacturing software.  In this one, he discusses taking a lead from the human body “with reducing risk through an enterprise nervous system for industrial architectures.”

He says, “If we think about it – the human nervous system has over a billion neurons spread throughout the body to help control its various functions. If the brain had to deal constantly with a billion signals, it would “crash” the system. Thus, nature has designed a system where functions are layered in an architecture that helps create a robust sense-and-response mechanism.”

I’ve added a few books for your intellectual broadening about brain science. More and more, those of us in the more “physical” systems business are getting metaphors from biological systems. The human system is a great metaphor.

On Intelligence, Jeff Hawkins (founder of Palm)

Decartes’ Error, Antonio Damasio

The Feeling of What Happens, Antonio Damasio

And while I’m at it, Loosely Coupled, Doug Kaye, regarding Sowell’s later statements.

Sowell has lately been asked about flat vs. layered architecture, and a similar question around one platform vs. multiple platforms. Here are his points:

• Layers allow me to contain change

• Layers allow me to manage complexity, divide and conquer

• Inter-operable layers reduce technology lock-in and increase options for clients

• Federated means lower level has autonomy but cannot violate higher level rules and principles .

He continues, “The world is made up of layers of information, interaction, and decisions . It is important to optimize across a layer, so interaction with the “things” at that layer is focused, efficient, and in context of that layer in content and time. As you transverse layers so does the context of information, the interaction between different “things” and complexity or focus change.”

Further, “In the industrial automation/ operations control has it’s layers of executing with the different equipment components in the process unit, requiring speed and tight coupling. As we go up the layers to supervisory then MES and Information, the context changes, responsibility for decisions increases, but time context changes. The “things” interacting change, combined with more complex messages with more context.”

And here is Sowell’s conclusion. This is very much in tune with what I see as the direction software is going. Interoperability being the key.

“Autonomous functions (layers) which have Interoperability is key for fast relevant actionable decisions to take place with the most efficiency. So why do we ask about one, when we should design in layers but understand the layers the context, things, and actions. But understand how the layers must be “loosely coupled but aligned” so that operational execution aligns with business strategy in near real time.”

Manufacturing Software Future Is Loosely Coupled in Layers

Manufacturing Software Future Is Loosely Coupled in Layers

timSowell

Tim Sowell, VP and Fellow at Schneider Electric Software, always writes thoughtful and forward-looking blogs about the state of manufacturing software.  In this one, he discusses taking a lead from the human body “with reducing risk through an enterprise nervous system for industrial architectures.”

He says, “If we think about it – the human nervous system has over a billion neurons spread throughout the body to help control its various functions. If the brain had to deal constantly with a billion signals, it would “crash” the system. Thus, nature has designed a system where functions are layered in an architecture that helps create a robust sense-and-response mechanism.”

I’ve added a few books for your intellectual broadening about brain science. More and more, those of us in the more “physical” systems business are getting metaphors from biological systems. The human system is a great metaphor.

On Intelligence, Jeff Hawkins (founder of Palm) 

Decartes’ Error, Antonio Damasio 

The Feeling of What Happens, Antonio Damasio

And while I’m at it, Loosely Coupled, Doug Kaye, regarding Sowell’s later statements. 

Sowell has lately been asked about flat vs. layered architecture, and a similar question around one platform vs. multiple platforms. Here are his points:

Layers allow me to contain change 

Layers allow me to manage complexity, divide and conquer 

Inter-operable layers reduce technology lock-in and increase options for clients 

Federated means lower level has autonomy but cannot violate higher level rules and principles .

He continues, “The world is made up of layers of information, interaction, and decisions . It is important to optimize across a layer, so interaction with the “things” at that layer is focused, efficient, and in context of that layer in content and time. As you transverse layers so does the context of information, the interaction between different “things” and complexity or focus change.”

Further, “In the industrial automation/ operations control has it’s layers of executing with the different equipment components in the process unit, requiring speed and tight coupling. As we go up the layers to supervisory then MES and Information, the context changes, responsibility for decisions increases, but time context changes. The “things” interacting change, combined with more complex messages with more context.”

And here is Sowell’s conclusion. This is very much in tune with what I see as the direction software is going. Interoperability being the key.

“Autonomous functions (layers) which have Interoperability is key for fast relevant actionable decisions to take place with the most efficiency. So why do we ask about one, when we should design in layers but understand the layers the context, things, and actions. But understand how the layers must be “loosely coupled but aligned” so that operational execution aligns with business strategy in near real time.”

Manufacturing Software Future Is Loosely Coupled in Layers

Operations Management Systems Evolution

timSowellOK, the title of this post is also the title of Schneider Electric Software Vice President Tim Sowell’s blog. I follow his blog closely. He offers deep thinking about operations management applications and the drivers, requirements and needs that affect their development.

In his latest post, he’s reflecting on both year-end planning and the evolution of what we have been calling MES.

He begins by noticing, “The labels we have used for years for products, spaces, and roles no longer mean the same thing. We rapidly find ourselves setting up a glossary of labels and what they will mean in 2020-25 in order to gain alignment.”

He starts with the label “MES”, but my involvement with the space goes back to 1977 and something called MRP II. So the evolution began before that, but it started to come together in 1990. “The label ‘MES’ was first introduced in 1990 to refer to a point application at a single site (typically Quality Management). Over the next 20 years, more functionality was added to MES to keep pace with Automation trends.”

MES Platforms, Schneider Electric Software

MES Platforms, Schneider Electric Software

 

 

 

 

 

 

 

The next evolution Sowell dates from 2010-2015. There is the introduction of the term MOM which came from the work of ISA 95. Sowell also quotes the definition from Gartner Group in 2012, “For many, MES is no longer a point application, but a platform that serves a dual purpose: integrating multiple business processes within a site and across the manufacturing network, and creating an enterprise manufacturing execution capability.”

Looking at today and tomorrow, “As the industrial computing paradigm shifts to the Internet, the platform is now being leveraged for other assets distributed across the interconnected value chain while extending the rich optimization functionality via new applications to get more productivity in areas outside of manufacturing.”

The problems increasing gained complexity as the requirements moved from a single machine or line went to many lines in one plant to standards to compare across the lines of many plants. “It was then that I realized in the meetings internally I could not use the word MES generically and needed to become specific.”

Sowell rightly concludes, “It is much easier to avoid labels and define the situation scenario / role, and start the meeting or strategy session laying out the landscape for discussion, gain alignment on the ‘desired outcome’ and destination first, it makes it easier!!!!”

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