Industrial Transformation Blog

The LNS Research globetrotting team found itself in Hannover last week, excited to see what’s new in the world of Industrial Transformation (IX). The event was as full (or perhaps even busier) than the last two years, it was noticeable that the space for software companies was substantially larger, and the big guys had toned down the one-upmanship: gone were the enormous jet engines, tractors, and other boys’ toys. In their place were small booths demonstrating the latest solutions and lots of open space with tables and chairs for better interaction with show-goers and potential customers.

Hannover Messe continues to accelerate, and along with it the Industrial Transformation (IX) space. LNS Research received 46 executive briefings this year, more than any previous year. Yes, it’s an enormous show, but we’ve condensed it down to the five biggest trends you need to know.

The #MondayMusings Industrial Transformation blog series provides insight and analysis for executives from the previous week’s briefings, events, and publications @LNSResearch.

Commitment matters, whether it is in a romantic comedy, real-life dating, or Industrial Transformation (IX). In a relationship, it is imperative that there is a “real commitment” for the relationship to progress and succeed. To make romance hard, romantic comedies and scuttlebutt tell us that determining if your partner is committed to the relationship can be difficult. Despite their pronouncements of love, “real commitment” can be elusive.

On Wednesday, March 13, LNS Research hosted the webcast “Digital Readiness for Industrial Transformation: Success Lessons from Real-World Leaders.” The presentation covered the scope, scale, strategy, budget, and organization of Industrial Transformation (IX) programs globally. The session also investigated the technology choices made in the IX programs, and how these new technology choices balance against Operational Technology (OT) and Information Technology (IT).

We recently conducted a global survey on Industrial Transformation (IX) and the Industrial Internet of Things (IIoT).  These are topics that we have been studying for quite a while.  In fact, LNS Research was the first to coin the term “IIoT” in the 2014 report, “What is an IIoT Platform?”  This new report examines the year-over-year trends in industrial corporations’ plans, projects and outcomes around IX generally and IIoT specifically.  The research and trendlines demonstrate the continually growing interest in and maturity of the IIoT and IX markets.

Forty-five percent of companies globally are executing an Industrial Transformation (IX) program, according to recent LNS Research survey data.  Before we can really understand the journey companies undertake, we need to know where they’re headed.  That requires a solid definition: what is Industrial Transformation, and how should companies execute it?  LNS Research defines Industrial Transformation simply as:

A proactive and coordinated approach to leverage digital technologies to create step-change improvement in industrial operations.

LNS’ Industrial Transformation Framework, has at its center, the Operational Architecture (OA) process where organizations align people, process, and technology at the convergence of IT and Operational Technology (OT). Ideally, OA efforts occur after a company defines its strategy and determines how technology should drive Industrial transformation.

The Industrial Internet of Things (IIoT) technology has become one of the supposed underlying drivers of Digital Transformation in manufacturing, along with predictive analytics and enhanced data presentation tools like augmented reality (AR)/ virtual reality (VR). Most of the focus has been on how the vastly increased amount of information and data about manufacturing processes in IIoT equipped plants will drive analytics and AR/VR visualization tools to accelerate decision making at what is generally considered “level 3, 4 or 5” systems.

The #MondayMusings Industrial Transformation blog series provides insight and analysis for executives from the previous week’s briefings, events, and publications @LNSResearch.