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ARC 2012 World Industry Forum keynote addresses transforming industry

April 2012 News

Andy Chatha, ARC Advisory Group founder and president, gave the leadoff keynote presentation at ARC’s 2012 World Industry Forum in Orlando, Florida. This was followed by additional keynote presentations by Diane Chong from Boeing who spoke on transformative technologies and processes at that company; Ron Guido from Johnson & Johnson who spoke on J&J’s efforts to safeguard the supply chain against product counterfeiters; and Leo Christodoulou from the U.S. Department of Energy who spoke on developing and deploying new energy-saving technologies for industry.

Chatha began by listing what he considers to be industry-transforming processes or products:

* Natural gas fracking.

* Wind turbines and solar farms.

* Boeing’s 787 Dreamliner.

* Electric cars.

* Self-driving cars.

* Military drones.

* Smartphones and tablets.

* Smart learning robots.

* Self-health monitoring gadgets.

* Nest self-learning thermostat.

Chatha focused on the Nest self-learning thermostat, a product that (according to the company’s website) programs itself to save energy. He believes that this commercial product can serve as an example of what we should be doing in our industrial automation industry.

According to Chatha his picks for the top four transformative technologies – social technologies, mobile Internet, cloud computing, and advanced analytics – do not apply at the industrial controls layer. Instead, each provides opportunities for improvement at higher levels of the enterprise. As social technologies become increasingly mature, they can provide people across an industrial organisation with easy access to the information they need to do their jobs better and improve overall performance.

Smartphones, tablets, and other mobile Internet technology-based products provide people with access to the information they need from any location at any time. According to Chatha, “We already have more devices connected to the Internet than there are people on this planet. It is safe to say that the era of the Mobile Internet is here.” The emerging Internet of Things (IoT) will further extend mobile information access to a wide variety of smart industrial devices (sensors, machines, equipment, etc) to help enable collaborative predictive maintenance and other highly effective asset management practices. Andy recommended that every company should implement a good mobile enterprise management platform.

Cloud computing-enabled virtualisation technology can offload much of the cost and the responsibility for providing server hardware and implementing and supporting virtualised applications from an industrial organisation’s own typically under-staffed IT group, to a third-party provider. These service providers typically utilise the most advanced technology for high availability and security (both physical and cyber). According to Chatha, “A cloud is just another data centre; you can think of your control room as a private cloud.” While many manufacturers are already doing mission-critical control in the field, it is not likely that we will ever do mission-critical control in the cloud. However, according to Chatha, cloud computing is perfectly acceptable for a wide range of other plant and enterprise-level applications.

Last, but not least, Chatha discussed advanced analytics as a transformative technology. “Analytics is my favorite,” he said. “Now that it is much faster and easier to use, you have to see it to believe it! I did not realise the full potential myself until we started using the technology ourselves to develop our new cloud-based analytics capability. Several of our larger supplier clients are already using this new capability, which we call MIRA (manufacturing intelligence and rapid analysis) to extract more value from ARC’s vast amount of market research data.”

For manufacturers and other industrial organisations, today’s advanced and well-proven analytics technologies can provide the key that finally enables them to unlock actionable information from the ‘Big Data’ they have been collecting all along in their plant historians and other data repositories. Many industrial organisations already use advanced analytics to do performance monitoring, statistical process control, root cause analysis, and so on.

In closing, Chatha summarised that while each of these transformative technologies is powerful on its own, when you combine cloud computing with advanced analytics, a mobility platform and devices and a collaborative social platform, you will have a much more powerful organisation.

For more information contact Paul Miller, ARC Advisory Group, +1 781 471 1126, [email protected], www.arcweb.com





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