Industrial Transformation Blog

IIoT has become a primary talking point about not only Industry 4.0 (I4.0), but all of the other digitalization topics around I4.0 such as analytics, artificial intelligence, augmented reality/virtual reality and digital twins. The ability to get information from the factory floor and move it anywhere and to anyone cheaply and in real time has driven IIoT into virtually every manufacturer and asset intensive industry client and vendor community discussion lately. With so much focus, both from management and leadership and technical and engineering staff, why then, have so few industrial internet of things (IIoT) projects moved out of pilot purgatory and into full scale production. Some will argue the business case isn’t there yet, others will argue that the technology is not ready or scalable yet while others say something else is lacking like leadership support or adequate deployment and support skills. There is possibly an even more fundamental cause projects are stalling; cultural wars inside the organization are inhibiting progress.

Technology has almost always proven most beneficial when it operates within an ecosystem. The adage “the whole is greater than the sum of the parts” is especially true in the world of technology. Smartphones have changed the world because they operate within multiple technological ecosystems. If they did not allow phone calls to landlines or to subscribers of other providers, they would be of limited use. Without GPS much of the smartphones value would gone. Bluetooth makes lining the smartphone to other devices easy and provides not only wireless headsets but connectivity to vehicles and other devices. What makes all of this connectivity work? Standards. The same holds true in the industrial automation sector.

Over the last decade, Siemens has gone through a massive transformation, not least in its software businesses. The current home for its comprehensive offerings is the Digital Industries Software (“Siemens”) division (a part of Digital Industries that includes discrete and process controls, automation, and drives). Siemens recently held its annual conference for media and analysts in New York where it brought us up to date on its impressive progress in software solutions. Announcements primarily related to how the company is bringing different parts of the portfolio together. We don’t perceive that as a lack of progress, but rather a demonstration of ever more sophisticated solutions around the Digital Twin.

LNS Research was delighted to be invited again to Dassault Systèmes’ (3DS) annual get together for a small band of diverse industry analysts that cover a wide range of 3DS’ industries and technologies. Quite literally right out of the gate, 3DS surprised us on the bus to the event by announcing that Dassault Systèmes had acquired Medidata Solutions, Inc. for $5.8 billion.

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.

Manufacturing Operations Management (MOM) solutions provide two traditional functions in the manufacturing plant:

• Support and enforce manufacturing processes and procedures, and
• Bridge industrial automation systems that provide plant floor control to enterprise and business operations systems.

LNS Research spends a great deal of our time exploring and writing about Industrial Transformation (IX), including best practices around people, processes, and technology. However, many small and mid-sized businesses (SMB) are not ready for the scope and impact of IX projects – they’re already behind in technology adoption, and don’t have the personnel or budget required to take on a full-blown IX project. These companies however must still compete against larger, resource-rich organizations that are moving ahead with the latest technologies and are seeing step-change improvements in their operations thanks to the new Industrial Internet of Things (IIoT) solutions. So, how can SMBs compete?

Industry 4.0, Smart Manufacturing are hot topics for companies gearing-up Industrial Transformation. The goals of these ambitious programs while admirable have a long-term view. Here at LNS as we define our upcoming research agenda and delve into Industrial Transformation, it has become clear that many of our clients are opting for shorter term view than the typical large-scale and expensive Industrial Transformation programs.

Until recently, manufacturing operations management (MOM) software and Industrial Internet of Things (IIoT) platforms were two distinct solutions serving different purposes and providing separate capabilities. That’s no longer the case. MOM software vendors today embed several IIoT capabilities that enable the applications to run at any level in the operational structure. This new degree of connectivity, together with smart connected devices and inexpensive sensors have enabled manufacturers to replace older, monolithic MOM solutions with IIoT-based MOM applications in the plant.

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

LNS recently attended the Excelerate 2018 Conference in Dana Point, California hosted by iBASEt, a manufacturing execution system (MES)/ manufacturing operations management (MOM) company focused on aerospace and defense (A&D) and complex discrete industries. Over the past years (2015 and 2017), LNS has witnessed a continued growth in customer and prospect participation at the Excelerate conferences. The most quoted statistic of the event was from Tom Captain, the retired Vice Chairman and former Global A&D Leader at Deloitte - there is now $1.7 Trillion in defense spending worldwide.