by Gary Mintchell | Jan 21, 2015 | Manufacturing IT, Operations Management, Software
Tim Sowell, Schneider Electric Fellow and Vice President, is always thinking two or three steps ahead of the rest of us. His weekly blog is on my must-read list. This week he tackles the future role of systems integrators—assuming that manufacturing software becomes much more configurable out of the box (therefore requiring much less custom code).
“In a number of discussions this week and last year it was clear that in the next 5 to 10 years the role and way traditional System Integrators work in the Industry Supervisory/ Operational/ Information space, will transform significantly. Especially those serving the smaller to medium industrial market, customers will demand accelerated solutions with a different model of project management, e.g., no RFP, no long project cycle, expect pre canned domain knowledge. They will want setup fast, and results with understandable costs. Similar to Sales Force.com where your CRM system can be set up in days, is the model that early adopters are testing in 2014, and I expect to grow in 2015.”
I tweeted this out Sunday and wound up in an interesting Twitter conversation with Andy Robinson (@archestranaut). A couple of other people chimed in. More on that below.
No offense meant to the sales function, but manufacturing operations software is of necessity much more complex. Sowell implies that there is some beta or alpha testing going on, but it will be interesting to see how that develops. One of the biggest challenges is for the customer to rationalize and understand its operations such that a configurable solution will be feasible.
Sowell continues:
“So what is changing is that users are now wanting:
- Solutions faster, minimal project removal of the project RFP process
- Less involvement
- Expect domain experience built in
- Minimal impact on internal resources
- Minimal risk
- “Good enough” will do if it improves and minimal impact or up front cost
- Minimal up front cost.
“So the new generation of System Integrator in the industrial world will be a “solution provider”. Providing a service of domain solutions hosted and built on an digital industrial platform from vendors such as Schneider-Electric. They will engage the customer in 3 to 5 year service contracts, but projects will be in weeks not months, years, RFPs will go away to selecting modules and completing configuration questionnaires.”
This begins another crucial thought process for systems integrators. I remember the height of the open systems movement from the late 90s through the early 2000s. SIs wondered if open systems would put them out of business. No more custom coding proprietary systems.
I suggested that open systems would require even more work from SIs, because someone would have to tie the parts together. In many ways, I don’t think open systems were as revolutionary as we thought they would be. However, the thought process did yield a number of standard interconnect technologies.
Now onward to operations management software. My next post after this one, as fate would have it, concerns just such a configurable system as Sowell envisions. In that case, much of the work can be done without systems integrators. The process is designed for small-to-medium-sized businesses presently, but it will be interesting to see how far the concept can be stretched.
Here is a glimpse of the twitter conversation I had with Andy Robinson:
@garymintchell – Controversial to system integrator community? “System Integrators Transformation to Solution Providers” http://invensyssysevolution.blogspot.com/2015/01/traditional-system-integrators.html …
@archestranaut – it will take a massive shift in thinking for customers but must start with the software platforms first
@archestranaut – yes bc the current solutions aren’t even close to good enough to just point click configure.
@archestranaut – also until customers are ready to accept 95% out of the box functions ala salesforce or google docs we aren’t there
@garymintchell – yes. How about need to rationalize processes before adding software? You can’t just slap software at a problem?
@archestranaut – agreed. We are light years from even the WordPress model where out of the box gets you 80% +19% with 3rd party themes
@archestranaut – but then again Tim thinks way out beyond what average folks are thinking.
by Gary Mintchell | Jul 24, 2014 | Automation, Internet of Things, M2M, News, Operations Management, Technology
The Internet of Things conversation for industrial/manufacturing application is certainly picking up steam.
Meanwhile, I’m really intrigued by what PTC is up to. It recently acquired ThingWorx, now it has announced acquisition of Axeda.
PTC is a company usually identified as “product lifecycle management” which is usually a term referring to design. The major players include Siemens PLM and Dassault Systemmes. I’ve tried covering each, and I’ve somehow always been impressed but failing to see great relevance in the market areas I typically cover.
This PTC foray into IoT is intriguing. Does this mean it will become more of a factory floor player, as well as encroaching into IT?
From the release:
PTC has signed a definitive agreement to acquire privately-held Axeda Corporation, a pioneer in the development of solutions to securely connect machines and sensors to the cloud, for approximately $170 million in cash. “Axeda’s technology innovation, extensive customer base, and powerful partnerships directly complement the PTC ThingWorx business, and will accelerate PTC’s ability to deliver best-in-class solutions across the entire Internet of Things technology stack.” Subject to satisfaction of customary closing conditions and certain regulatory approvals, the transaction is expected to be completed in PTC’s fiscal Q4 2014.
Secure connectivity, and the ability to leverage machine data to create new business value, are critical components of the Internet of Things (IoT) technology stack and are in increasing demand as more companies pursue a smart, connected product strategy. An innovator in the IoT technology market, Axeda currently serves more than 150 customers, processing hundreds of millions of machine messages daily across multiple industry sectors. The company has a broad partner ecosystem that includes leading mobile network operators, edge device and design-in device makers, systems integrators, and business systems/analytics providers and its technology leadership lead to several strategic OEM agreements with leading IoT technology and solution providers.
“The world we live in is changing around us, and the pace of that change is accelerating as more and more machines, sensors, and products connect via the Internet to their makers, to their operators, and to each other,” said PTC president and CEO Jim Heppelmann. “In recent years, products have become tremendous sources of intelligence as they have been increasingly instrumented with sensors. Until now, manufacturers have been constrained in their ability to securely collect that data and make sense of it all. Axeda’s innovative approach to machine connectivity delivers exactly what manufacturers need to capitalize on the massive amounts of data now available from their smart, connected products.”
Core to Axeda’s IoT technology is the ability to enable companies to establish secure connectivity and remotely monitor and manage a wide range of machines, sensors, and devices. The Axeda Machine Cloud Service includes machine-to-machine (M2M) and IoT connectivity services, software agents, and toolkits that enable companies to connect their products to the cloud using virtually any communication channel (e.g. cellular networks, the Internet, WiFi, or satellite). Axeda’s end-to-end security strategy covers all levels of the IoT technology stack, including network, application, user, and data security. Axeda has attained ISO 27001:2005 certification, supporting the company’s focus on delivering the highest levels of security, performance, and availability.
In addition, the Axeda Connected Machine Management application set empowers companies to remotely monitor and service products, including the ability to deliver over-the-air software updates.
“Axeda was early to see the potential of the IoT space and we consider ourselves a true market innovator,” said Todd DeSisto, president and CEO, Axeda. “Our technology solutions enable companies to connect to, and manage machines and the data they generate to create new business opportunities. We share PTC’s vision for the transformative power of smart, connected products and are excited to contribute to PTC’s leadership position in this fast growing market.”
In the IoT era, PTC’s customers are developing increasingly smart and connected products which can generate value in new ways as streams of real-time operational data are captured, analyzed, and shared to deepen a company’s understanding of its products’ performance, use, and reliability. PTC intends to leverage the Axeda technology portfolio to complement its existing ThingWorx® rapid application development platform and its existing service lifecycle management (SLM) and extended product lifecycle management (PLM) solution portfolio.
“In less than a year, PTC has quickly scaled to a position of leadership in helping manufacturers seize the opportunity presented by a smart, connected world,” concluded Heppelmann. “We believe the combination of ThingWorx, Axeda and our existing SLM and PLM solution portfolio, will establish PTC as the only provider of true closed-loop lifecycle management solutions for the Internet of Things.”
The acquisition is expected to add $25 million to $30 million of revenue in FY’15. PTC expects to draw on its credit facility to finance the transaction. Axeda has approximately 160 employees primarily located in the United States.
by Gary Mintchell | Mar 12, 2014 | Automation, Data Management, Operations Management, Technology
Mitsubishi Electric Automation has been somewhat quietly building out a version of the connected manufacturing enterprise for several years. Known for machine control and motion control, it first made a splash by partnering with ILS Technology to develop e-F@ctory. This is connecting technology moving data from the control system to enterprise databases.
It recently announced an “e-F@ctory Alliance Program” that included several connectivity companies. It’s latest announcement is that eWON, which offers industrial VPN routers and Ethernet modems for remote access to PLCs and machines, is the newest member.
eWON devices allow original equipment manufacturers, systems integrators and end users to support their systems remotely. Consequently, eWON’s participation in the e-F@ctory Alliance Program gives Mitsubishi Electric’s customers greater options for anywhere, anytime access to their systems. eWON access options include remote HMI capability to monitor the machines using a built-in web server, data logging capabilities and alarming features.
As with all e-F@ctory Alliance Program products, Mitsubishi Electric has thoroughly tested the eWON solutions to ensure ease of implementation and compatibility with its own products. No programming of Mitsubishi Electric hardware is required to use eWON devices, other than setting the correct IP addresses.
“With the addition of eWON to our e-F@ctory Alliance Program, OEMs, systems integrators and end users can remotely access their systems across the globe,” said Robert Miller, senior manager, strategic collaborations and partnerships, Mitsubishi Electric Automation, Inc. “This eliminates the need for an engineer’s on-site presence to access a system, saving both time and money.”
Mitsubishi Electric’s e-F@ctory Alliance Program is a third-party referencing program with other automation hardware and software vendors that allows customers to select solutions that best solve their automation challenges. Through pre-engineered integration, the latest technologies are easier to use and more cost effective. Complete documentation, including quick start guides, sample programs and maintenance screens when required, are available for each solution, drastically reducing the time necessary to implement and maintain the solutions.
eWON joins third-party hardware and software vendors Balluff, COGNEX, LEM®, MDT Software, eWON, Kepware Technologies, Ocean Data Systems – Dream Report, CC-Link Partner Association and Powerit Solutions in the Mitsubishi Electric Automation e-F@ctory Alliance Program.
by Gary Mintchell | Dec 2, 2013 | M2M, News, Operations Management, Organizations, Software
Marketplace for IoT
I think I first met Russ and Rick, the founders of ThingWorx, about 15 years ago at a National Manufacturing Week trade show (remember those?) as they were launching Lighthammer—a data connectivity product that has worked out well for eventual owner, SAP.
They came back with a new start up a few years ago named ThingWorx. This company provides a platform designed to efficiently build and run the applications of today’s connected world. Its model-based design and search-based intelligence reduces application development efforts by 10X, minimizing cost, risk and time to market. The ThingWorx platform combines the key functionality of Web 2.0, search, and social collaboration, and applies it to the world of “things,” including connected products, machines, sensors, and industrial equipment.
This idea of connecting the world of things intrigues me. We’ve discussed it for years, but I think that we as an industry are nearing critical mass where things begin talking with things and humans interact simply to direct processes and make critical decisions.
ThingWorx announced Nov. 18 the immediate availability of the ThingWorx Marketplace. The ThingWorx Marketplace is a global platform that enables developers, hardware and software providers, and systems integrators to build value-added IoT/M2M components and make them available to a broad range of companies.
“The ThingWorx Marketplace is a first mover in an exciting new niche with vast potential,” stated Emil Berthelsen, Principal Consultant at Machina Research. “Through application extensibility, ThingWorx Marketplace aims to deliver a comprehensive and complete apps store that allows developers to integrate with other systems, devices, industries and partners in a quick, seamless, and highly intuitive way.”
The ThingWorx Marketplace offers a wide range of components and services that are required for innovative M2M and IoT applications, including: widgets, analytics, application templates, device connectors, protocol adapters, and integrations to device clouds, provisioning platforms, enterprise systems, and big data stores. These components are built by ThingWorx, ThingWorx partners, independent hardware and software vendors, and third party developers.
“As a ThingWorx Partner, we are excited about the release of the ThingWorx Marketplace,” stated Alicia Asín, Co-Founder and CEO of Libelium. “The Marketplace provides us with a venue for making our sensor products and Meshlium Cloud platform front and center to a global ecosystem of M2M and Internet of Things developers and solution providers.”
The ThingWorx marketplace provides value to all members of the M2M/IoT value chain including:
- Enterprise Customers – deploy a private instance of the Marketplace, to simplify sharing of internally developed applications, application templates, analytics, visualizations and services.
- ThingWorx Platform-as-a-Service (PaaS) Partners – deploy a private labeled instance of the Marketplace, to simplify sharing of partner specific applications, analytics, visualizations and services.
- Marketplace Partners – an opportunity to make a company’s intellectual property available to customers on a global basis, offering new ways to promote and monetize their offerings.
“We are excited about the launch of the ThingWorx Marketplace,” stated Russ Fadel, CEO of ThingWorx. “With the predicted 50 billion connected ‘things’ by 2020, we believe there will need to be at least 5 million applications created to drive value. Our Marketplace will provide the next significant improvement in application development efficiency by providing a global market with the building blocks necessary to rapidly assemble these applications.”
