Digital Twin Alliance to Address Complex Digital Transformational Challenges

In brief: Three Organizations Combine Expertise to Bring Digital Twins to Life, Create Added Value, and Deliver Support Across the Asset Lifecycle

The idea of an open system for data flow from engineering through construction to startup to operation & maintenance, and perhaps even to decommissioning has intrigued me for years. I have worked with MIMOSA and its Open Industrial Interoperability Ecosystem for many years. Check it out.

For the most part, suppliers have been a bit slow to this game. The way of the world is that automation vendors never liked the “open” part, since their design emphasizes tight integration of as many parts as possible under their proprietary umbrella.

An ecosystem is one thing, and a partnership is another. Sometimes companies announce partnerships with great flourish and publicity only to see the great promise wither from neglect. Sometimes end users (owner/operators) reap significant benefit.

With that background, I approach the announcement of a partnership. I like the idea, but execution and sustainability will be proof of the strength of this partnership. Note that two of the companies are sort of like “conjoined twins” joined at the hip.

From the announcement:

DORIS Group, global Engineering and Project Management company in the energy industry, Schneider Electric, supplier of products and solutions for digital transformation of energy management and automation, and AVEVA an engineering and industrial software supplier, have agreed to develop a strategic partnership to deliver Digital Twin technology for the upstream oil and gas markets.

These new solutions will support the goals of oil & gas organizations to improve asset performance, increase sustainability and maximize return on capital on projects.

The three companies will combine offerings to bring engineering capabilities, an asset lifecycle software solution and digital specialization in order to create a fully formed digital twin to serve as a backbone for improving performance for the upstream sector. The new solution will:

  • Bring new assets on stream faster through the use of cloud-enabled software that improves collaboration and increases engineering efficiencies
  • Deliver enhanced safety leading to better business outcomes
  • Improve traceability through a single point of accountability
  • Enable remote operations and production assurance through a fully functional Living Digital Twin that mirrors all aspects of the operating asset

Oil & Gas owner operators have struggled to go digital due to the lack of a structured offering and orchestration as no single vendor currently delivers what is required to achieve this. Large amounts of data of various types, from different sources is another challenge they face, often leading to data inaccuracy and incompatibility, as well as difficulties in organizing that data and identifying trends.

Similarly, the oil & gas sector is under considerable pressure to quantify, track and reduce CO2 emissions as well as reduce overall pollution – this can be even more difficult with limited monitoring, no established method and no data-driven decision making.

Together, DORIS, AVEVA, and Schneider Electric will offer a structured digital and collaborative solution across the lifecycle of projects that will help oil & gas owner operators address many of these challenges.

Christophe Debouvry, CEO of DORIS Group, stated, “DORIS Group is excited to be strategically partnering with Schneider Electric and AVEVA in this unique venture which will allow us to accelerate the building out of our digital transformation strategy. Combining our complementary expertise will go a long way to providing a powerful enabler to offer our customers embarking on their digital transformational journeys with optimized solutions throughout their assets lifecycle.”

Craig Hayman, CEO AVEVA, also commented, “Leaders driving the next wave of transformation are moving quickly and that’s why this partnership with Schneider Electric and DORIS Group is so opportune. Our common aim is to support organizations on their digital journey especially in the current environment, helping them accelerate the use of digital technology, realize the value of a digital twin and also work towards a more sustainable future. It’s never been easier to begin a digital transformation program, as access to cloud computing, great connectivity, a merged edge and enterprise combined with analytics and machine learning, means that the ability to digitally drive productivity improvements into the industrial world is now unprecedented.”

Christopher Dartnell, President Oil & Gas and Petrochemicals at Schneider Electric, commented, “This partnership is in line with Schneider Electric’s objectives around Digitization and Energy Transition and we will bring our expertise in both energy and process efficiency to the industry. Our goal is to support customers looking to adopt a digital twin model, by offering our experience to facilitate the overall digital transformation for our clients enable them to improve lifecycle performance and safe operations while also making their operations more sustainable.”

People and Data—the Most Important Assets

This week I attended the AVEVA World customer conference sitting on my patio with a bank of computers on the table. It’s always nice to catch up with the latest from technology suppliers, even if we couldn’t meet in person and have all those informative hallway conversations.

Next week I’ll be attending three conferences, something that would have been a physical impossibility only a few months ago. Looks like all of my anticipated conference trips have been cancelled until November.

I must begin with a note regarding the AVEVA/Schneider Electric relationship. If you go back a few years, Schneider Electric made a rather large and significant acquisition. It kept the Foxboro and Triconex (and a few other) brands and used the software parts—Wonderware and Avantis and some others—as an investment into an engineering software company called AVEVA. As a result, Schneider Electric owns just over a majority of the shares in the publicly traded software company. And, therefore, Schneider Electric played a significant minor role in this conference.

Schneider’s chairman and CEO, Jean-Pascal Tricoire, said, “AVEVA should be agnostic. Our customers don’t have just one system but have the problem of integrating the complexity of having more than one system. AVEVA is completely open. We are independent companies working closely with each other.”

Craig Hayman, CEO of AVEVA, noted during his keynote address, “We’ve pivoted to emphasize digital. We recognize that people and data are the two most important assets. We do this technology in order to make people successful. Businesses have the great responsibility to protect employees and customers. We’re seeing the power of data and analytics helping companies respond to incidents as they occur and operate assets as efficiently as possible.” Indeed, digital, data, and people were the keywords of the event.

In further remarks, Tricoire emphasized “Digital Trust and Sustainability”. He shared how COVID-19 has accelerated existing digital trends, encouraging more efficiency, “remote everything,” greater resilience, and for sustainability to mitigate and adapt to primary threats of both the pandemic and climate change. He said, “Faced with a very volatile environment, companies need superior agility, and increased efficiency. This means they need increased capacity on one side, resiliency on the other side. The overall winner is digitalization. And the need for digitalization has been further reinforced by companies new need to operate remotely, for higher efficiency, and ultimately, for much better sustainability.”

Guest customer keynoter, Saad Bashir, CTO of the City of Seattle, speaking on “Digital Agility in the Age of COVID-19” shared his thoughts on what happened in Seattle when the pandemic hit. “Although we had planned for digital resiliency for some time, we didn’t really know how it would go until one morning all 30,000 people in our team decided to stay home and log on.” Although the team’s resiliency plans have held up well, Saad adds, “We’ve already seen opportunities from the lessons learned and one that’s worth highlighting is digital resiliency…with a unified view of our infrastructure with systems that are seamlessly connected so that they can inform decisions.”

Much discussion involved both Cloud and Edge—you must develop both, can’t have one without the other.

Ravi Gopinath, AVEVA Chief Cloud Officer and COO discussed cloud and AI. He noted four areas of investment—new way of engineering; new way of visualization; reliability and safe operations; drive agility. Develop cloud on one side and AI on the other. The cloud strengths—deploy applications easily, low TCO, enable flexible consumption, and enhance collaboration. AI provides—analysis, prediction, guidance, learning. Leading to Digital Twin, Big Data, and Industrial IoT and Edge.

The press release coming from the event focused on Schneider Electric, who announced expanded partnerships with AVEVA, Lenovo and Stratus to address the convergence of IT and OT. This partnership is bringing together system integrators with IT solution providers to build integrated industrial edge computing solutions resulting in the immediate release of three programs to empower system integrators to expand their value to end users, enabling their customers’ industrial digital transformations.

These programs include:

      Industrial edge reference designs: Co-developed with AVEVA, including solutions from Lenovo and Stratus, these reference designs reduce risk and time to market with fully customizable, pre-integrated EcoStruxure Micro Data Center solutions for any edge environment. With secure solutions designed to meet IT standards, system integrators can free up time from the IT architecture to focus on the software and solutions. These reference designs are available in Schneider Electric’s Local Edge Configurator and can be customized to specifications.
      A digital training program for system integrators: Edge computing continues to prove itself as a space for opportunity for system integrators to extend business models and establish their roles as consultants. This learning program includes a comprehensive digital training series for system integrators on Schneider Electric’s EcoStruxure Micro Data Center and EcoStruxure IT solutions to help address common challenges at the edge.
      The Industrial Edge Exchange Community: Built within Schneider Electric Exchange, the Industrial Edge Community allows system integrators to easily identify and engage with edge-certified IT solution providers. It is designed to facilitate new business and address IT/OT projects, and features a tool that pairs Alliance System Integrators with Schneider Electric’s Edge-certified IT Channel Partners.

    “The smart factory is becoming smarter. Our expanded partnerships and new industrial edge programs empower system integrators to leverage their domain expertise and become IT/OT convergence specialists and meet these needs for their customers,” said Philippe Rambach, Senior Vice President, Industrial Automation, Schneider Electric. “We know that smart manufacturing is driving an unprecedented wave of IT technologies into industrial spaces. As companies leverage AI, robotic processing automation, and more, they will require edge computing solutions to reduce latency and enable resiliency, while ensuring privacy and security, and addressing important data and bandwidth requirements.”

    What is the Industrial Edge?

    For industrial operators to capture the benefits of increased automation, they cannot rely on cloud-technology alone to bring the resiliency and speed demanded by AI, HD cameras, and other Industry 4.0 technologies. Local edge data centers are IT infrastructure enclosures/spaces/facilities distributed geographically to enable endpoints on the network. When in industrial environments such as a manufacturing plant or distribution center, this application is referred to as “industrial edge.”

    Integrating Engineering and Project Execution

    Integrating Engineering and Project Execution

    The design engineering function originates data. It includes data about the structure of the plant or factory, data about the equipment and processes used to make the product, and data about the product(s) itself. In my early career, I embodied the movement of the data from design to operations and then back to design in a continuous loop of as designed—>as built—>as designed. I was also involved for a while in the development of a platform to automate this process using standards.

    To say I’m interested in this area would be an understatement. And this process is important to all of you, too. Including those who siphon off some data for other uses such as accounting, customer service, maintenance, and reliability.

    AVEVA, the integration of its iconic design engineering software and Schneider Electric’s software business, just introduced integrated engineering software designed to help customers transform the way capital projects are engineered, executed, and integrated into operations and maintenance.

    The integrated portfolio comprises three software solutions. AVEVA Unified Engineering integrates process design with front-end engineering and detailed 3D based design. AVEVA Unified Project Execution links and streamlines procurement and construction processes for capital projects. AVEVA Enterprise Learning enables the rapid skilling of operators and engineers using Extended Reality (XR) and simulation tools, to ensure efficient startups and shutdowns, normal operations, and the ability to handle abnormal situations

    “This launch builds on the recent news describing AVEVA’s capabilities as the first company in the engineering and industrial software market to comprehensively address the end-to-end digital transformation imperatives with an integrated portfolio of solutions that deliver efficiency, unlock value and empower people across the lifecycle of capital assets and operational value chains,” commented Craig Hayman, CEO, AVEVA. “It changes the way that owner operators engage with Engineering, Procurement and Construction (EPC) companies in designing, building, commissioning, and operating their capital assets.”

    The functionality provided in these integrated solutions enables the realization of an EPC 4.0 strategy for owner operators, central to digital transformation in the capital-intensive process sectors. This allows collaboration on a global scale, through hybrid cloud architectures and on a common platform. The entire manufacturing process can be traced, tracked, and linked – from engineering and design, through procurement and construction, to handover and to operations and maintenance, as a comprehensive Digital Twin for the capital asset.

    “As competition in the business world accelerates the time has come for industrial organization to innovate to facilitate the transition from the manual, document-centric processes, towards a data-driven vision of project design, procurement, and execution in order to increase safety, reduce costs, and minimize delays, “ commented Craig Hayman, CEO AVEVA. “With the launch of AVEVA Unified Engineering, a first of its kind solution, we are breaking down the silos between engineering disciplines and enabling our customers to turn conceptual designs into 3D models quickly, accelerating engineering to estimation and ensuring designs can be operated before committing billions of dollars.”

    New AVEVA Unified Engineering enables the integration of the process model and plant model lifecycles from concept to detailed design, delivering frictionless collaboration for multi-discipline engineers to collaborate in the cloud. The net result is a minimum 50% improvement in engineering efficiency in FEED and up to 30% in detail design, which can yield a 3% total installed cost improvement. These savings can be re-invested to ensure engineering quality, accuracy, and maturity for downstream project execution business processes.

    AVEVA Unified Project Execution solutions integrate with AVEVA Unified Engineering to further break down the silos within Procurement and Construction by combining key disciplines covering Contract Risk Management, Materials and Supply Chain Control, and Construction Management into one cloud based digital project execution environment. AVEVA Unified Project Execution solutions deliver up to 15% reduction in material costs, 10% reduction in field labor costs and reduces unbudgeted supplier change orders by up to 50%, which translates to 10% total installed costs savings opportunities for our customers.

    AVEVA’s Enterprise Learning solutions combine traditional simulation-based learning with 3D connected learning management solutions. AVEVA’s learning solutions extend process models and 3D models from AVEVA Unified Engineering to fast track DCS panel operator training, field operator training, process and maintenance procedural training, and process safety situational awareness training using cloud and Extended Reality (XR) technology to deliver up to 2% Total Installed Cost reduction by improved operations readiness.

    “Our Engineering portfolio enhancements will deliver increased agility for our customers, enabling them to reduce cost, risk, and delays, minimizing errors and driving rapid capital project execution. The cost savings are realized by mitigating capital investment risks at the process design stage, cutting engineering man-hours by up to 30% in plant design, reducing material costs in procurement by up to 15% as well as reducing field labor costs in construction by up to 10%,” commented Amish Sabharwal, SVP, Engineering Business, AVEVA. “With these new solutions AVEVA is providing integration across all stages of the capital project, from conceptual design to handover, to optimize collaboration and break down silos between both engineering disciplines and project stages.”

    Smart Factory Demonstrats Quantifiable, Real-Time Benefits of IIoT and Digitizing

    Smart Factory Demonstrats Quantifiable, Real-Time Benefits of IIoT and Digitizing

    A mere 2.5-hour drive south on I-75 June 13 brought me to the Schneider Electric plant in Lexington, KY that manufactures load centers and other electrical devices. Schneider Electric marketing people invited me down for tours and festivities marking the unveiling of this brownfield manifestation of Smart Factory using the latest of IIoT, AR, digitalization, and other smart manufacturing principles.

    Highlights:

    • Schneider Electric Lexington facility is a showcase for sharing IIoT integration strategies with End Users, Machine Builders and Partners

    • Lexington plant strategically integrates connected EcoStruxure solutions to enhance efficiency and provide end-to-end operational visibility throughout supply chain operations

    • Smart Factory has tracked quantifiable benefits from IIoT implementation, including a 20% reduction in mean time to repair and a 90% paperwork elimination

    If this plant is to demonstrate “in real time how its EcoStruxure architecture and related suite of offerings can help increase operational efficiency and reduce costs for its customers”, I asked the natural question—“What is EcoStruxure?”

    I’ve heard the term for many years, but being a little slow on the uptake, I’ve never really understood what is meant. So, they set me up with an interview with Vice President Domenic Alcaro. Refreshingly, EcoStruxure is neither a platform or a product. Alcaro told me, “EcoStruxure is a phenomenal way to explain our value structure.” The foundation block consists of connected products (connectivity being a key word). The intermediary block is what they call Edge Control. However, whereas many people look at Edge and think hardware, Schneider Electric considers it basically software. Think the InduSoft HMI product, if you will. Atop the model then are apps and analytics.

    Back to the plant:

    In operation for more than 60 years and employing nearly 500 people, the Lexington factory is truly a showcase of modern integrated digital experience. Among the benefits realized include empowering operators to gain visibility into operations maintenance, driving a 20% reduction in mean time to repair on critical equipment, and process digitization eliminating paper work by 90%.

    “We understand the value of IIoT and the positive business impact that innovation and digitization can have on our operations – particularly in our global supply chain. As a living example of how our EcoStruxure solutions deliver benefits to our customers, we are gaining those same benefits in our operation and sharing that knowledge,” said Mourad Tamoud, Executive Vice President, Global Supply Chain, Schneider Electric. “With our latest Smart Factory showcase, we are able to demonstrate this value in real-time, show the solutions at work and share the tangible benefits that we ourselves are seeing from our own IIoT investment as we accelerate our Tailored Sustainable Connected 4.0 digital transformation.”

    As part of the Smart Factory program, Schneider Electric exemplifies brownfield implementation for customers who may be facing the same challenges with their existing production facilities. The team is able to offer strategies and talk through the challenges they faced to help customers exploring IIoT connected technologies overcome those same hurdles toward their modernization goals. By sharing their experience in leveraging EcoStruxure solutions, visiting customers can better understand the value of the brownfield modernization and the resulting operational efficiencies.

    In this production environment, these solutions have demonstrated operational and quantifiable value since their implementation:

    • EcoStruxure Augmented Operator Advisor – Delivered a 20% reduction in mean time to repair on critical equipment where it has been implemented.

    • EcoStruxure Resource Advisor and Power Monitoring Expert – Delivered 3.5% YOY energy savings in the Lexington facility in addition to $6.6 Million in regional savings since 2012; sophisticated reporting capabilities and increased transparency also drive operational performance.

    • AVEVA Indusoft Web Studio – Delivered powerful Edge digitization of paper processes to eliminate paper work by 90% and cloud connectivity has enabled digital dashboarding of a critical process.

    • RFID OsiSense – Eliminated 128 daily fork truck miles and eliminated $500,000 in Work in Progress (WIP) inventory with a 33% first year ROI.

    • AVEVA Insight Data – Unlocked and shared silos of data in a mobile manner reducing downtime in critical processes by 5% with ROI of less than 6 months.

    • Magelis GTU/GTUX HMI – Provided agile operator management of the process and vivid visual of the process onsite and via mobile devices.

    Among the tidbits of information I picked up on the tour include:

    Extensive use of Ethernet and IP networking. Interesting in that the very first conversations I had with a Modicon VP 20 years ago concerned how Ethernet was the network of the future. In 1999 that was revolutionary thinking. Today—it’s the backbone. Hat tip to Mark Fondl.

    Great use of data tracking involving RFID tags, MES software, Ethernet connectivity, and visualization that coordinates all the products and containers throughout the company-wide power-and-free conveyor system.

    Oh, and a Megelis computer/HMI collecting data from sensors and passing it on uses Node-RED for programming. It’s only the second instance of Node Red I’ve seen in automation.

    Finally, Schneider Electric plant management correctly combines digitalization with Lean principles enhancing their daily stand ups and feeding continuous improvement.

    Impressive facility. When our politicians and east coast journalists go ripping on American manufacturing, they should be forced to take deep dives into plants like this one.

    Smart Factory Demonstrats Quantifiable, Real-Time Benefits of IIoT and Digitizing

    Automation and Industrial Innovation Funding News

    Automation, Innovation, Funding news from Rockwell Automation, IoT Partners Research, Dell EMC IoT, Schneider Electric Ventures

    Rockwell Automation

    I started going to Automation Fair in 1997. This is the first year I have missed. I could be in any of four different venues this week. Used to be that Rockwell had the week to itself. No longer. I am not there because I don’t like Rockwell. Business considerations are taking me a different direction. Tomorrow I’ll be speaking on IoT, data, solving business problems at the Industry of Things World-East forum in Orlando. I thought about a huge tour of three cities. Then I thought again.

    I posted news from Rockwell Automation yesterday about its recent collaboration with PTC. I haven’t seen anything newer coming out yet from my sources.

    ABI Research

    In its recent analysis ranking 547 companies on their IoT service capabilities, ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, finds that partner programs and their member companies are continuing to mature in their IoT offerings while simultaneously decreasing the average number of members per partner program.

    In fact, 65% of listed organizations received a high IoT maturity grade, which is nearly 2½ times the number of organizations that received a high maturity ranking when ABI Research first analyzed these IoT ecosystems back in September 2015. Partner program parents such as Amazon Web Services, Dell, and IBM are aligning themselves with fewer, higher-value partners who can better help end-users navigate the convoluted IoT ecosystem.

    Partner program parents need to ensure that their partners can effectively address the current major needs of the market while also addressing high-growth niche vertical markets, with companies like Dell and AWS showing that it’s possible to address these changing market dynamics without being encumbered by hundreds of partners. AWS’ IoT Competency program ensures that its partners have a high-depth of IoT expertise to meet end-user needs, while Dell’s IoT Solutions Partner Ecosystem is focused on having both technology and services partners who can address specific use cases.

    The three most targeted verticals within these partner program ecosystems have consistently been healthcare, manufacturing, and energy applications, but over the past three years, there has been a remarkable increase in the number of partners offering solutions targeting the digital signage, wearable, and smart building markets due to end-user demand.

    FogHorn Partners With Dell EMC OEM Solutions

    Speaking of partnerships, this came in today. FogHorn, a developer of edge intelligence software for industrial and commercial IoT applications, announced a collaboration with Dell EMC OEM Solutions to deliver end-to-end Industrial IoT (IIoT) edge computing solutions. This collaboration allows industrial and commercial customers to leverage the power of the edge quickly with an out-of-the-box solution for their Industrial IoT (IIoT) deployments – providing real-time insights to streamline operations and improve business outcomes.

    By integrating FogHorn’s Lightning edge computing technology to solutions from Dell EMC, industrial and commercial customers now have access to preconfigured gateways and other devices that simplify IoT deployments. These “edgified” solutions allow clients to deploy edge computing at various end-point locations quickly, wherever the power of edge computing is needed.

    Schneider Electric Ventures

    Schneider Electric, who also has an event this week, has announced “Schneider Electric Ventures”, which identifies, nurtures and supports innovations that will make a major contribution to future sustainability and energy efficiency. Several major projects are underway and ready to be deployed.

    ‘Schneider Electric Ventures’ nurtures tomorrow’s transformational and disruptive technologies according to the press release.

    The company spends €1 billion a year on R&D; and EcoStruxure, its IoT-enabled, plug and play, open, interoperable, architecture and platform is at the cutting edge of connected energy management and industrial automation.

    A few months ago, the company created “Schneider Electric Ventures”. The mission of this initiative is to identify, support and nurture companies and entrepreneurs whose innovations will transform the way we live and work, how we produce and consume energy, and how we run buildings and factories.

    Schneider Electric Ventures supports innovation through:

    • Funding
    • Incubation
    • Partnerships

    At its Innovation Summit North America, Schneider Electric announced some projects developed by “Schneider Electric Ventures”. These projects include:

    • eIQ Mobility, a start-up and spinoff from Schneider Electric Incubator, which enables and accelerates electric mobility at scale by providing “Electric Fleet as a Service ” to large commercial fleets.
    • Clipsal Solar, a business venture for on-grid and off-grid solutions for residential and commercial applications in Australia, where 1.8 million homeowners have installed solar panels to help manage their energy bills. The market is forecasted to grow with additional 134,000 homes by 2021.
    • Greentown Labs Bold Ideas Challenge in partnership with Greentown Labs, focused on fast-tracking entrepreneurs with the mentors, team members, grants of $25,000, and business and technical resources they need to launch successful ventures.

    Through its different investment vehicles, Schneider Electric also made equity investments in six companies:

    • Sense, the leader in load disaggregation technology
    • Element Analytics, a leader in industrial big data analytics
    • Habiteo, a 3D specialist for new residential housing
    • QMerit, the “Uber” for contractors & MRO spend
    • KGS, a predictive engine for just-in-time maintenance
    • Claroty, the leading Cybersecurity company for industrial OT networks

    Schneider Electric has committed to invest between 300 and 500 million euros in the coming years, in incubation projects, partnerships with entrepreneurs, and specialized funds, and welcomes ideas from innovators and entrepreneurs eager to turn their ideas into reality.

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