IoT Valued in Aftermarket Services for Connected Machines

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What if your car dealer cared more about your car than you do, and did something about it?  What if your ride was always in tip-top shape, never broke down, and got regular, dealer-sponsored tune-ups while sitting in your garage, or even on the road?  Wouldn’t that be great?  And what if your dealer gave you a discount for letting him service your car that way?  This is the kind of aftermarket service that the IoT is making possible for industrial machine builders.

A recent blog by Sal Spada, Research Director of Discrete Automation at ARC Advisory Group, highlights the value of the Internet of Things (IoT) for machine builders looking to improve their aftermarket services.  The IoT approach to maintenance and service of industrial tools and machinery has already started, and is expected to increase significantly in the coming years.  Spada introduces a number of reasons for this increase.

Cost effective: Real-time remote monitoring done well gives the supplier full access to the machine 24/7, making it easier to spot problems before they arise. When something occurs that needs a technician, they have immediate access to the system and spend their time solving problems, rather than travelling to the site.

Competitive: Industrial customers are in it for the long haul.  Better maintenance and service translates into less downtime for the equipment, making that supplier more competitive in the marketplace.

Company Growth: As his maintenance costs go down, the machine supplier becomes more competitive in his market, and more able to afford to do business.  This can readily lead to company growth.

Using the IoT for service connectivity has found favor with suppliers of large, expensive products that typically require regular maintenance, such as cranes, hoists, elevators, and escalators, and is expected to expand in a number of areas.  ARC Advisory Group recently published a report “Production Machinery Automation” that covers a range of product segments and machinery sectors, and illustrates the growing value of the IoT in providing aftermarket services.

Cutting Costs with the Industrial IoT

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What is the ongoing attraction of the Industrial IoT?  Why does it get so much press these days?  Moving past the glitz and hype, beyond the desire to follow the “next big thing”, corporate executives from IBM to GE have recognized that there are solid benefits.  And many of these benefits boil down to this: cost savings.

“Leading thinkers have looked at cost savings available in terms of productivity, new business models and environmental benefits compared to the cost of implementing these systems and they’ve determined that this is the direction they want to go,” said Steve Jennis, Senior Vice President for Corporate Development at PrismTech in a speech at Smart Industry 2015 in Chicago last October.

Jennis points out that the steady reduction in costs for hardware and data connectivity infrastructure are making the Industrial IoT possible, and increasingly accessible for more and more companies.  Multi-million dollar SCADA systems, once available only to governments and large corporations, are giving way to thousand-dollar remote monitoring and supervisory control systems that can be implemented by small and medium-sized companies.  And the reach of these systems goes far beyond the plant floor.  “We can connect the enterprise end-to-end for a reasonable cost for the first time ever,” Jennis says.  “That’s what’s making the difference.”

Challenges

That being the case, Jennis does see challenges.  There are cultural challenges of merging the IT (information technology) culture of generalized, people-focused applications with OT (operations technology) requirements for specialized, real-time, mission-critical systems.  And there are technical challenges of integrating data among machines and systems from different epocs, vendors, and locations, often using a variety of protocols and engineering units.

“From a technology standpoint,” recommends Jennis, “systems must be adopted that enable data connectivity on demand in real time across different environments to provide a global data space that can be utilized to give people what they need to do their job.”

At Skkynet we understand these challenges, and develop products like SkkyHub, DataHub, and the ETK to meet them.  At a cost far below a commercial SCADA system, and with very short implementation times, Skkynet users leverage the benefits of real-time cloud computing and off-the-shelf software to get up and running on the Industrial IoT, and start cutting their costs right away.

A Time of Transformation for System Integrators

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Jose M. Rivera, CEO of the Control System Integrators Association (CSIA) sees change coming to the world of system integration for industrial automation and control.  In a recent article, “At a time of transformation, CSIA helps members thrive, Rivera highlights the changes currently impacting the automation sector, and mentions some of the challenges and opportunities, such as:

A need for interconnectivity.  With consumers demanding greater environmental responsibility, companies are beginning to track carbon footprints, resource consumption, and other environmental factors.  To collect this information on a large scale requires companies to “bridge ‘silo’ systems and organizations, such as operations and infrastructure, that previously had no need to interact with each other.”

Leveraging the value of Big Data and analytics.  As experienced workers in North America and Europe retire, relatively few can be found to fill their shoes.  In Asian countries such as China, there has been little opportunity to raise up a generation of trained, experienced system integrators for industrial systems in the first place.  Whatever the reason for this lack of qualified personnel, Rivera suggests a solution: training tools that can leverage Big Data and analytics.

Increased IT involvement: After decades of separation between OT (operations technology) and IT, Rivera sees an increase in the use of IT personnel and data in industrial systems, and expects it to continue.  System integrators will need to expand their range of expertise, and learn to work with and integrate OT and IT systems.

In brief, Rivera predicts that, “opportunities for which SIs are well-qualified will be created in areas outside of the traditional, purely industrial, space.”  Among these, he mentions that, “value delivery via a subscription-service model will become a high-growth segment.”

These are the kinds of applications that Skkynet envisioned when introducing the SkkyHub service. Whether used for plant networking, collecting data from remote locations for Big Data systems and other purposes, or creating secure shop-floor to top-floor connections, SkkyHub—combined with the DataHub and ETK—has been designed from the ground up to meet the current and future needs of system integrators for industrial automation systems of all kinds.

Comparison: Industry 4.0 and Industrial Internet

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Two terms closely related to the Industrial IoT have received quite a bit of press over the past few months: “Industry 4.0” and “Industrial Internet”. The first term was coined to describe a German government program to promote and modernize German manufacturing. The second term is promoted by General Electric (GE), who together with AT&T, Cisco, IBM, and Intel have formed the Industrial Internet Consortium.

Skkynet supports both Industry 4.0 and Industrial Internet, since SkkyHub, DataHub, and ETK technologies work well with both, and we encourage our customers and other interested parties to understand both.

Recently several documents have been published that point out what is unique to Industry 4.0 and the Industrial Internet Consortium, as well as what they have in common. We find two of these papers particularly useful, and share them with you here. The first is an article published in Automation World, Industry 4.0 or Industrial Internet of Things—What’s Your Preference?, by Luigi De Bernardini, CEO at Autoware, a system integration company in Vicenza, Italy. The second is titled The Internet of Things: Industrie 4.0 vs. the Industrial Internet by Kris Bledowski at Manufacturers Alliance for Productivity and Innovation in Arlington, Virginia, USA.

Each document presents a useful comparison. The De Bernardini article is shorter, covering the practical points of interest to system integrators. The Bledowski article goes into substantial detail on the differences and similarities. Generally, the documents agree–industry is currently experiencing and will continue to experience big changes due to a convergence of globalization, technology, and corporate mandates. Both of them also agree on the key differences between Industry 4.0 and the Industrial Internet Consortium, some which can be summarized as follows:

Key Questions Industry 4.0 Industrial Internet Consortium
Who initiated it? German government Private companies: (GE, AT&T, Cisco, IBM, Intel)
Where does it apply? Germany Worldwide: North America, Europe, Asia, etc.
What sectors? Manufacturing only All industry (manufacturing, energy, oil & gas, chemical, transportation, healthcare, utilities, agriculture, cities, etc.)
Focus is on? Manufacturing hardware (machines and tools) Manufacturing software, hardware (machines and tools), and system integration

Because Industry 4.0 has a German focus, other countries are taking similar initiatives: in the Netherlands it is “Smart Factory”, in France they call it “Usine du Futur”; in UK it’s “High Value Manufacturing Catapult” (or just “Catapult”); in Italy it goes by “Fabbrica del Futuro”; and in Belgium “Made Different”. Bernd Overmaat, Spokesman for Technology, Innovation & Sustainability at ThyssenKrupp, shares his point of view on this in a recent blog, World Wide Race.

Whatever name may be given to this kind of initiative, whoever organizes it, and whatever domain it encompasses, if it includes a requirement for industrial data communications or the Industrial IoT, then Skkynet technologies can assist in achieving its goals.

Nine Pillars of Technology Called Industry 4.0

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Perhaps you have heard of Industry 4.0, or “Industrie 4.0”. It is a term coined by the German government to cover what they saw in 2011 as a coming revolution in manufacturing. Industry 1 was an initial level of mechanization using steam power; Industry 2 saw mass production with electrical power; while Industry 3 has been automation with digital computers. The new phase that we now embark on, they say, is a combination of embedded systems, robotics, the Internet, and much more.

The Boston Consulting Group (BCG) has published a concise overview of Industry 4.0 in a recent white paper Industry 4.0: The Future of Productivity and Growth in Manufacturing Industries. They identify nine pillars of technology which make up Industry 4.0. Four of these pillars are areas in which Skkynet is directly involved in, while the other five are closely related, since at some level everything uses data communication.

We find this overview to be helpful in understanding Industry 4.0, and recommend it. To whet your appetite, here is a quick glimpse of the nine pillars:

  1. Big Data – The ability to collect, store, and analyze massive amounts of data, which can then be used to identify inefficiencies and production bottlenecks.
  2. Autonomous Robots – The next generation of robots can do more on their own, including learn on the job and team up with other robots and humans.
  3. Simulation – Operators and system designers can model and optimize machine settings in virtual reality, cutting actual set-up time to a fraction of what was previously thought possible.
  4. Universal System Integration – The long-standing barriers between the shop floor and top floor give way to a more cohesive, cross-company approach to using and sharing data. Also horizontal integration with raw material suppliers and equipment vendors can benefit producers and suppliers alike.
  5. Industrial IoT – Connecting embedded devices, plants, offices, and companies, the Industrial Internet of Things (IoT) gains prominence as a way to enable real-time data sharing between all parts of the system, and all connected parties.
  6. Cybersecurity – With such expansion of industrial communications, security becomes a critical aspect that must not be overlooked. As the white paper says, “… secure, reliable communications as well as sophisticated identity and access management of machines and users are essential.”
  7. Cloud Computing – Much of the IoT and Big Data capacity will be provided through the cloud. Again, here is where security plays a vital role.
  8. Additive Manufacturing – 3D printing allows for small batches and quick design changes, as well as reduced stockpiles of raw materials and lower transportation costs through on-site manufacturing.
  9. Augmented Reality – Presenting useful task background and context for production and maintenance staff right when they need it will make their work easier and more successful.

 

Is the IoT Old Hat for Industry?

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As the press raves on about the Internet of Things (IoT), at least one industry analyst wonders what all the fuss is about.  Peter Zornio, Chief Strategic Officer of Emerson Process Management shares his view in Forbes that industrial data systems have been doing for years many of the things that the IoT is being touted for.

“Since there was no public Internet when we started, we didn’t call it the IoT,” he says, “but it was based on the same concept: Integration of very large amounts of data to achieve better decision-making.”

At the same time, Zornio acknowledges that using the Internet for industrial data communications is a new phenomenon with lots of potential.  The combined effect of low-cost sensors, improvements in the Internet, and Big Data capabilities will allow for much better monitoring and supervisory control for remote operations.  There are a few areas that pose significant challenges in the short run, but he confidently expects they will be resolved over time.  Two that he mentions are complexity and security:

Complexity
Understanding a single process is one thing, but working with data from a whole factory is quite another. Zornio compares an industrial plant to a human body–each one is unique, complex, and constantly changing. Analyzing data in a meaningful way at the level of one or more plants will be rewarding, no doubt, but how to do it well is still being developed.

Security
When considering security, Zornio focuses specifically on the need to protect a company’s data from the competition. This concern, he feels, will slow adoption of the IoT in certain areas.  “Unnecessary secrecy will stunt the IoT’s potential impact throughout entire industries,” he says.

As industry expands its reach to embrace the IoT, the value Skkynet’s secure-by-design approach will become increasingly apparent.  Plant managers and engineers will be more willing to allow connectivity to their systems when they know that their data is secure behind completely closed firewalls. As access to real-time production data becomes more common, corporations will develop the skills and tools needed to analyze and share that data, to better understand the complexity and derive full value from modern, connected industry.