by Gary Mintchell | May 25, 2018 | Automation, News
It’s Friday before Memorial Day and I’m catching up on a number of items I’ve read this week concerning automation and ethics.
- GPR
- AI (Eric Schmidt / Elon Musk)
- Robot Market
- Automation Tsunami
- Rockwell Automation OPC UA
- Schneider Electric Triconex
- Peaceful Fruit
GDPR
Marketing people lust after your information. Trust me, I was in the business. If a magazine or website can collect your email address and provide (sell) it to a marketer, fantastic. If they can add name, company, address, and telephone number(s), all the better.
Some companies have treated you (us) like a commodity to be harvested and sold. Now in the wake of the European GDPR regulation, companies have been flooding us with emails telling us that, while in the past they may have done all that to us, in the future they’ll do less of it—maybe. Makes me wonder about all of them.
As for me—I have an email list of people who have signed up for my occasional newsletter. I use them only for that. No one besides me sees it.
Artificial Intelligence
Remember the old Groucho Marx line, “Military intelligence is an oxymoron”? Well, how about adapting the phrase to modern times? “Artificial Intelligence is an oxymoron.”
I wrote a little about that yesterday. Scanning my news items today, I see Eric Schmidt contesting with Elon Musk on the subject—“Elon is just plain wrong.” Yep.
Robot Market
According to Tractica, a market intelligence firm, Consumer Robots, Enterprise Robots, Autonomous Vehicles, and Unmanned Aerial Vehicles are expanding their share of the $52.7 billion annual robotics market.
A new report finds non-industrial robots represented 70% of the $39.3 billion robotics market globally in 2017, growing from a 64% share in 2016. By the end of 2018, the market intelligence firm expects that non-industrial robots will rise to 76% of the total market, which will have grown to $52.7 billion by that time.
Tracticas analysis finds that most robotics industry growth is being driven by segments like consumer, enterprise, healthcare, military, unmanned aerial vehicles (UAVs), and autonomous vehicles.
The epicenter of robotics continues to shift from the traditional centers of Japan and Europe toward the emerging artificial intelligence (AI) hotbeds of Silicon Valley and China.
Tracticas report, Robotics Market Forecasts, covers the global market for robotics, including consumer robots, enterprise robots, industrial robots, healthcare robots, military robots, UAVs, and autonomous vehicles. These categories are further segmented into 23 robot application markets. Market data within the report includes robot shipments and revenue segmented by world region, application market, and enabling technology. The technologies included in the attach rate analysis are machine vision, voice/speech recognition, gesture recognition, and tactile sensors. The forecast period for this report extends from 2017 through 2025. An Executive Summary of the report is available for free download on the firm’s website.
“Automation Tsunami”
Steve Levine in Axios Future of Work newsletter reports, “There is barely a peep from Washington in response to a widely forecast social and economic tsunami resulting from automation, including the potential for decades of flat wages and joblessness. But cities and regions are starting to act on their own.”
What’s happening: In Indianapolis, about 338,000 people are at high risk of automation taking their jobs, according to a new report. In Phoenix, the number is 650,000. In both cases, that’s 35% of the workforce. In northeastern Ohio, about 40,000 workers are at high risk.
Check it out on his website. I have mixed feelings on the issue. On the one hand automation has replaced humans in dull, dirty, and dangerous tasks. And…we are facing a coming labor shortage if demographic data suggestions hold out and politics inhibits immigration. On the other hand, we do have short term crises for people who can’t find work. That is a very real social and personal problem.
Rockwell OPC UA
I’ve written a couple of times lately about how Rockwell Automation has switched direction and adopted standard technologies OPC UA and TSN. It has just informed me that its FactoryTalk Linx software allows OPC UA communications across industrial IoT technologies from different vendors.
Companies can now take advantage of the OPC UA standard in Rockwell Automation products to achieve interoperability among their industrial IoT devices. Support for the vendor-neutral standard is provided through the FactoryTalk Linx communications software, which allows Rockwell Automation and third-party products to exchange data.
Schneider Electric Tricon update
Schneider Electric has released Tricon CX version 11.3, the most powerful version of its EcoStruxure Triconex safety instrumented system. This version embeds cybersecurity features within its flagship process safety system.
Peaceful Fruits
I am interested in good products, ethically produced, that perform a social good. I’ve invested in a local coffee house that buys coffee from a distributor/roaster who buys directly from the farmer. Not only does the farmer (and his workers) earn a living wage, the coffee is ethically grown, and also tastes great.
A message came my way this week about Peaceful Fruits. This young man joined the Peace Corps and worked every day for two years to make an impact on people’s lives in the Amazon rainforest. Living in the Suriname jungle, he worked jointly with indigenous tribes to build systems to preserve independence and sustainability.
It was here that Evan first tasted the acai berry — which grows naturally in the rainforest — and he decided to take the first step in helping to make advances in the food industry.
As the founder of Peaceful Fruits, an Akron, Ohio-based company specializing in whole fruit snacks, Evan speaks to this generation’s pursuit of nutrient-friendly, label-accurate, and eco-sensitive food. And with childhood obesity skyrocketing, it’s a great time to revisit which snacks our kids are eating on a daily basis. “The snack industry is slowly lurching forward because of increased consumer demand for healthier and more responsible options — and this is an opportunity to teach the next generation of kids that everyday food can be tasty, healthy and sustainable.”
His goal beyond changing the food industry is to educate and empower young people to pursue big goals that have big consequences. “Sure, I’m in the healthy fruit snacks business, but I’m really in the business of promoting wellness, sustainability and a cultural shift in how we think about what we put in our bodies.”
by Gary Mintchell | Feb 26, 2018 | Asset Performance Management, Operations Management, Software
So last week I shared an update on Schneider Electric from the ARC Forum–mostly on cybersecurity. A helpful marketing person guided me to the press release with all the data that updated the software side of the week’s news–specifically asset performance management. For the most part the discussion did not center on product updates but on “increasing momentum surrounding customer adoption”. In other words, Schneider wanted to highlight an area of software not often brought to center stage and show that it is a growth area.
Kim Custeau (I misspelled her name in my last post, I believe–thank you autocorrect), Asset Performance Management Business Lead, shared how investments in the cloud, advanced machine learning, and augmented reality, coupled with new partnerships, have empowered customers.
“Defining and executing an asset performance strategy is a critical component to improving productivity while safeguarding business continuity,” she said. “We have been delivering proven, industry leading asset performance solutions for nearly 30 years, and continue to invest in a long-term strategy to drive innovation in this area. Our focus is to provide real value to our customers by empowering them to maximize return on capital investment and improve profitability. We are proud to see our customer results speak for themselves with significant savings.”
Machine learning and prescriptive analytics:
- Duke Energy prevented an estimated $35 million cost from early warning detection of a steam turbine problem
- Ascend Performance Materials now responds faster to alerts saving an estimated $2 million through avoided plant shutdowns
Augmented Reality:
- BASF is implementing AR to improve asset performance, reliability, and utilization while increasing production efficiency and safety because technicians leverage an augmented digital representation of the asset.
Cloud and Hybrid Deployment:
- WaterForce partnered with Schneider Electric to develop and IIoT remote monitoring and control system in the cloud that allows farmers to operate irrigation pivots with greater agility, efficiency, and sustainability.
New Partnerships:
- MaxGrip and Schneider Electric announced a partnership to expand APM consulting and add Risk-based Maintenance capabilities. The APM Assessment is a first step for industrial companies to evaluate asset reliability and digital transformation strategy.
- Schneider Electric and Accenture completed development of a Digital Services Factory to rapidly build and scale new predictive maintenance, asset monitoring, and energy optimization offerings. As a result, a large food and beverage company saved over $1 million in maintenance costs
by Gary Mintchell | Feb 23, 2018 | Asset Performance Management, Automation, Security
Cybersecurity, digitalization, and asset performance management headlined the various press events with Schneider Electric at the recent ARC Forum. I took notes from Kim Cousteau’s presentation on APM at the main press conference and expected a follow up press release for details. I have not received one yet.
Remember the “reverse acquisition” of Aveva where Schneider Electric placed all of its software divisions into Aveva and then took a 60% share in the company? The deal is about to close. Schneider spokespeople assured me that digitalization is proceeding apace with the leveraging of Aveva design through construction applications into operations and maintenance applications—Schneider’s strong suit. This, on paper, brings the company into the competitive marketplace with Siemens and its UGS acquisition of several years ago. This is an interesting area to watch.
Schneider called a special press event, with lunch, to talk specifically about cybersecurity. This response to an incident in which the company’s Triconex safety system earned some publicity—but not always accurately portrayed. The incident was a cyber attack that caused a situation that the safety system caught and initiated a safe shut down.
However, the event caused renewed concern for cyber defense. ARC Vice President, Larry O’Brien, said, “This is a wake up call for people to follow existing security standards.” Gary Freburger, who heads that division of Schneider, said, “It’s everybody’s job.”
We received this official statement from Peter Martin, vice president of business innovation and marketing, Schneider Electric
At Schneider Electric, we heartily encourage all collaborative efforts to strengthen cybersecurity. The growing problem of cybersecurity is not specific to any single company, institution or country. Rather, it’s a threat to business and public safety that can only be addressed and resolved when suppliers, customers, integrators, developers, standards bodies and government agencies work together. This collaboration starts with common standards, agreed-upon rules, appropriate funding and active cooperation. It extends beyond national borders and transcends competitive interests.
Schneider Electric continues to work diligently with our customers, partners, developers and industry peers to make the shift from reactive to proactive cybersecurity management through compliance with evolving industry standards, agreement that cybersecurity is a journey not a destination, and a commitment to standing together in the face of cyber threats.
Today, we commend the signatories to the “Charter of Trust.” It’s another important step toward ensuring that the promise of digital transformation and automation will prevail over the threat of cyberterrorism.
Regarding APM, Kim Cousteau discussed a new release of Avantis that expanded machine learning from the power industry to oil & gas. For maintenance, it incorporates a team system for operator rounds and improved workflow. It incorporates augmented reality and virtual reality (AR/VR) “because workers are so new and need help to get up to speed. Look for updated analytics to aid in catching anomalies ahead of failure. She cited a customer who has been tracking savings from this feature alone and is up to $65 million.
by Gary Mintchell | Sep 6, 2017 | Commentary, News, Software
A little consolidation in the industrial software space. Remember when Schneider Electric was shopping its software division a couple of years ago and came up with a reverse acquisition with AVEVA? And the deal fell apart almost a year ago?
Well, it seems that Schneider spent the year internally restructuring such that it could pull off this weird financial transaction. Announced Monday evening, the two companies have reached an agreement to ship SE software to AVEVA forming a new company with SE as a 60% owner and AVEVA holds the other 40%. Plus AVEVA shareholders get some cash in the deal.
Management touts the transaction as having a clear and compelling business logic. Reasons include building a “global leader in engineering and industrial software”, covering entire asset lifecycle management, and positioned for further acquisitions.
I’ve believed that Schneider would sell off its software businesses ever since the deal for Invensys was announced. Some venture capitalists have talked with me about potential acquisitions. Evidently no one wanted to buy it. I thought maybe Wonderware could make it on its own as a spinoff, but there probably wasn’t enough financial payoff for Schneider with that sort of deal.
However, this also isn’t a clear divestiture. One is left wondering what the future will bring in a couple of years when this transaction matures.
The Management of the Enlarged AVEVA Group will be comprised of:
- Key members of the existing executive management team of AVEVA, namely Dave Wheeldon (Chief Technology Officer and currently also Deputy Chief Executive Officer) and Steen Lomholt-Thomsen (Chief Revenue Officer) are expected to remain in place following completion;
- Ravi Gopinath, currently Executive Vice President of the Schneider Electric Software Business, will be appointed as Chief Operating Officer of the Enlarged AVEVA Group. He will report to the Chief Executive Officer of the Enlarged AVEVA Group; and
- David Ward will continue in his current role as Chief Financial Officer of AVEVA, until a new Chief Executive Officer is appointed. Following such appointment it is intended that David Ward will be appointed to the role of Company Secretary of the Enlarged AVEVA Group.
I received this from Vertical Research Partners analyst Jeff Sprague:
- Deal Structure Overview – Schneider Electric announced today the combination of its industrial software business and AVEVA to create a global leader in engineering and industrial software. On completion, Schneider will own 60% of the combined new AVEVA group while existing AVEVA shareholders will have 40% equity ownership. However, SU is contributing a little over 60% of the proforma EBITA in addition to a £550MM payment, and allowing AVEVA to distribute a £100mm dividend to AVEVA shareholders at or around completion. Schneider will benefit from unlocking the higher trading multiple of its Software business outside of the Group structure, in addition to future synergies (unquantified). We estimate the transaction creates 42 euro cents of value to SU’s stock price. Closing is expected to be at or around end of 2017.
- Strategic Rationale – The combined company will provide engineering services and industrial software, with combined revenues of £657.5mm and adjusted EBITA of £145.8mm for the financial year ended March 2017. The combined portfolio will cover process simulation to design and construction to manufacturing operations/ optimization. As shown below, AVEVA is very strong in the front end design and engineering work while SU is strong in O&M and asset optimization. The company noted an ability to create a more streamlined solution as it will control both ends of the spectrum. Management also indicated plans to scale up with future M&A. AVEVA will also enhance the value proposition of Schneider’s existing IOT platform (ExoStructure).
The only interest I’ve seen with total asset lifecycle management is with the OIIE platform from MIMOSA (download whitepaper from my site). A few end-user companies have shown interest in that, but I don’t know that the combined companies will offer much of a competitive advantage in that regard. That would require strong management bringing the disparate parts together into a whole.
For example, I only point to GE Digital whose recent public woes with the Predix system point to the difficulties of software integration.
by Gary Mintchell | Dec 2, 2016 | Automation, Internet of Things, News, Technology
Schneider Electric announced launch of what CTO Prith Banerjee called a major advance for its Internet of Things (IoT) architecture and strategy. I’ve had a bit of a problem wrapping my head around the announcement. That is because this is not a product announcement. It’s more of a strategy announcement.
At the end of Banerjee’s 45-minute presentation, he began talking about putting the elements together with APIs (application program interfaces) that describe how the components work together.
The platform describes five application areas and four vertical industries. These are safety, reliability, efficiency, sustainability, and connectivity applications, and building, grid, industry, and data center markets.
Prominent were partners Microsoft and Intel along with many others noted briefly. The platform is build atop Microsoft Azure—not surprising since Microsoft seems to have captured the manufacturing/industrial market. The intel part os for its FPGA technology used in smart devices.
“EcoStruxure combines our history in pioneering in automation, energy management and deep domain expertise with data-driven metrics and analytics to help us maximize the value of the Internet of Things for our customers,” said Dr. Prith Banerjee, Chief Technology Officer, Schneider Electric. “EcoStruxure gives our customers the platform, architecture and roadmap to quickly and easily implement IoT in an enterprise, extending the benefits of IoT beyond the device layer to create a more intelligent, efficient and secure operation.”
The first layer builds on Schneider Electric’s core competency in developing connected products with embedded intelligence, such as sensors, medium and low voltage breakers, drives and actuators.
The Edge Control layer gives organizations the critical capability to manage their operations on-premise as well as from the cloud depending on their needs. This includes connected control platforms with remote access, advanced automation and operator override capabilities. Local control and firewall protection is included to maximize the benefits especially for mission-critical applications.
Schneider Electric’s focused investment in R&D and product development in the critical areas of software, analytics and services, coupled with the integration of recent acquisitions such as Invensys, Telvent and Summit Energy forms the third layer of the stack – a portfolio of apps, analytics and services. EcoStruxure enables the most extensive breadth of vendor-agnostic apps, analytics and services on open IP protocols in order to work with any hardware, system, or control.
The last “layer” includes a set of core reference architectures. The architectures build on the company’s deep domain expertise and portfolio and are tested, validated and tailored for its core end markets of Buildings, Grid, Industry and Data Centers, with even more specific architectures also available for industrial plants, industrial machines, and power distribution. The architectures give customers access to documented and standardized system reference designs that can be used in the implementation of interoperable, sustainable, efficient and connected systems.
These announcements follow the trends described here and by most analysts. The Industrial Internet of Things builds up from smart devices (things) connected (Internet) to each other and to various gateways, databases, the cloud, with analytics performed at various stops along the way and finally displayed as actionable information on some sort of desktop or mobile device. Common with the industry at large, Schneider Electric builds upon Microsoft Azure.
The omissions I found striking were mention of EtherNet/IP (Schneider is an ODVA member) and OPC UA—two connectivity technologies. Probably doesn’t mean anything, but noticeable by absence.
