2016 – The year of analytics
In the evolution of the Industrial Internet we have now moved on to the stage where many companies are already either in the process of experimenting or introducing different kinds of new products and services. At the moment the burning question is how to produce value around these innovations. Juha Pankakoski, CDO at Konecranes looks back at the year 2015 and forecasts the hot topics in 2016.
In the past year the floor has been taken on multiple occasions to ponder on the questions of how to create the right revenue models, and how to productize the collected data. In other words, the general interest has shifted from the technology itself to the impact it will have on the existing business models and business logics.
Collecting data alone is not enough. Neither is being able to utilize it and developing it further into new knowledge and insights. All of this needs to be done in such manner that certain, concrete actions come out of it. Think of it as a loop that needs to be closed: already before heading to the first curve you need to know how to close it.
We are now beginning to understand how certain functions in older products can be utilized to serve some of the new goals. In elevators, for example, there is a statutory alarm system that needs to be checked every day. All elevator cars must be equipped with an emergency button that at any time, once pressed, connects the elevator to the service center. So basically what we have is an existing connection and a platform that can be expanded into new functions by adding sensors, data collection features, and such.
Another very concrete example is the troubleshooting on offshore oil rigs and large cruise ships. With new remote monitoring systems any problems or faults in marine vessels can be detected and even repaired from mainland using remote connection. Analyzing the data sent from the offshore vessels also enables a more preventive approach on maintenance planning when the ship is ashore.
The year of the hackathon
Hackathons are events where coders and designers assemble to collaborate intensively for a certain period of time to create new digital software and solutions. One of the main goals of setting up hackathons is to make it easier for different companies and businesses to encounter despite of their size. And luckily this is something that truly has been achieved with these events in the past year. Forums where different actors all come together and utilize each other’s know-how to find new solutions and overcome obstacles have really increased the understanding of what kind opportunities are at hand.
Augmented reality was another hot topic in 2015, and a lot has happened on that front. Companies are pushing out products, such as virtual reality glasses, at an accelerating pace. Many of these still need further development before qualifying for industrial use, but they are close. I believe that breakthroughs are just around the corner.
Using augmented reality in business can mean, for example, being able to better utilize expertise throughout the organization and especially in the field. Consulting and supporting colleagues conducting customer visits becomes easier from a distance, for instance, when the absent can get a realistic view of the situation at hand onsite. This not only helps increase and share knowledge inside the company, but also improves quality from the customers’ perspective.
“The role of data analysts and scientists will surely become more important in strengthening and further developing companies’ competitiveness”
The importance of analytics
The focal thing that is likely to gain a lot of attention in the near future is the importance of analytics expertise. As said, in 2015, the focus was mainly on building the suitable technology that enables monitoring and data collection, whereas now the main motivation is to process that data into new kind of operation, which then generates value. As a result, the role of data analysts and scientists will surely become more important in strengthening and further developing companies’ competitiveness. Also, we will undoubtedly be introduced to numerous new concepts that draw from machine learning, pattern recognition and so on.
Finally, a trend that will most likely continue to shape the industry in 2016 is the ongoing discussion about dominant standards and platforms. I believe that it is still too early to expect any system to gain superiority over the others. However, I do think that more and more actors have realized that the chances of survival for closed systems are rather weak. From where I stand, the future is in open source software and modularity.
All in all, finding out what works and what doesn’t is basically about learning things through trial and error. This is why we need to keep putting our heads together for the greater good.
Juha Pankakoski works as CDO at Konecranes
Image credit: yavuzunlu / Shutterstock.com
Equip, utilize, make it actionable – steps to realizing the Industrial Internet
Data doesn’t lie, according to Harvey Shovers, the President of MSI Data. In baseball, for instance, it’s a commonly known fact that all of the teams today analyze huge amounts of data that is produced on the field. In 2013, the Pittsburgh Pirates managed to break their 20 year losing spree by applying sophisticated data analytics to the baseball field. The same idea can be applied to different manufacturing industries like the steel industry.
“With the steel industry being one of the oldest industries out there, you can imagine it is very traditional when it comes to managing. These kinds of industries have been pretty reserved of the idea of managing by data. But the steel industry, just like everybody else, is going to benefit from the capture and analysis of that data”, Shovers says.
If you take the right mix of experience and reliance on the data that you have never been able to act on before, the steel industry, like any industry, is able to make better decisions that can more quickly affect the manufacturing process.
As an example, for service technicians, having the right data means that they can update their old methods of doing maintenance.
“It isn’t beneficial for the service technician, or the customer, to come on site and not be able to identify the problem, and then have to come back again and again. It’s expensive and it doesn’t drive good relationships with the customer. Now, with the proper data, the technician can come and fix the problem before it occurs and come equipped if a problem does occur. With access to machine data, the technician knows exactly what the problem is and how to fix it. This way the first-time fix rates go up and the service technician gets his job done faster, better and more professionally. This improves the relationship with the customers. It’s a win-win-situation,” Shovers says.
Getting everyone on board is key
Speaking on the hot topics in Industrial Internet, Shovers mentions that there’s a difference in the emphasis between the consumer side of the IoT and the Industrial Internet. When thinking about the Internet of Things, people tend to associate it with consumer-type applications.
“For most people, they like to think of things you can do with your smartphone. The Internet of Things makes day-to-day activities for people easier. We now have apps to control the lights in our apartment, to record TV-shows and to change the thermostat. On the industrial side it’s more about collecting big data.”
According to Shovers, the companies on the leading edge are the ones who are already capturing data and are starting to utilize it. The main problems companies face in getting to this point is getting the whole company on board and having a clear vision as to why other companies are already collecting data and most importantly being able to see what the payback is.
Three steps to an Industrial Internet
For Shovers, the implementation of the Industrial Internet takes place in three distinct phases. The first one is making everything internet-enabled. For example, in the auto industry, most cars that ship today are equipped with some kind of data-collection and telematics devices.
“Not all of the data that can be collected from devices is actually used today, but everyone is putting hardware and software into their products,” Shovers says.
The second phase is capturing the big data, and then being able to utilize it.
“That data helps companies drive their business decisions, or manufacturing and design decisions faster.”
The third phase is making that data actionable. The end result might be, for example, that we have a car that drives itself, compared to cars now that can already change lanes for you automatically, or notify you if something negative is about to occur.
What kind of advice would Shovers then give for company CIOs in charge of implementing any of these three phases?
“The point would be to get started now; don’t wait. The technology is already here, and if you wait two or three years for the perfect solution to become available, you’re going to be behind everybody else”
“I’m a big proponent of taking steps to get things started now, because you can talk about these things forever, just like anything else,” Shovers says.
According to Shovers, an ideal scenario for a company would be to come up with a multi-year plan of where the company aims to get to and of the results they aim to achieve with the implementation of the Industrial Internet.
On the way there they should be able to report back to their stakeholders every step along the way, within or outside the organization, of the progress they’re making towards achieving these long-term goals.
“The point would be to get started now; don’t wait. The technology is already here, and if you wait two or three years for the perfect solution to become available, you’re going to be behind everybody else”, Shovers says.
Finally, coming back to baseball, only 20% of the data-collecting teams make their decisions based on it. The ones using data to guide decisions also happen to be the ones leading the surge and becoming the winners in their sport.
Harvey Shovers is the President of MSI Data, a Wisconsin based company that is the leader in field workforce automation software.
Image credit: vetre / Shutterstock.com
Arranging hackathons to make IoT-innovation easy
Hackathons have been making their mark as a way of offering novel solutions to industrial companies. One of the most interesting concepts is Industryhack, a Finnish start-up which aims to shake up the traditional hackathon formula by arranging weekend-long events for teams of coders to come up with promising new solutions for industrial partners.
“[We] were started to create concrete IIoT experiments and learn what it really means for different industries”, Ville Riikkala, co-founder of Industryhack says in this ZDNet article. Read more about the current state of hackathons at: http://www.zdnet.com/article/industrial-iot-from-cranes-to-prototypes-how-hackers-are-digging-out-new-openings/
Image credit: Spectral-Design / Shutterstock.com
Audi leading the way for smart automotive production
As automotive industry is taking steps towards automated production processes, Audi has decided to take the trend to the next level. According to the article by Automotive Manufacturing Solutions Audi’s vision for the future encompasses collaborative robots, 3D printing and cars driven from the assembly line in piloted mode. “Automobile production as we know it today will no longer exist in the future. It will become more connected, more intelligent and more efficient,” remarks Hubert Waltl, Audi’s board of management member for production. Some intelligent production processes have already been implemented in Germany. Read more about Audi’s smart factory concept:
Image credit: TheWorst / Shutterstock.com
The most read articles of Industrial Internet Now in 2015
The past year has brought numerous new advancements in the field of the industrial internet, and also sparked a great deal of thought-provoking discussion and articles. Some of the most discussed topics this year include those relating to hackathons, leadership and the change in the tasks of the industrial workforce. Below are the five most read articles in Industrial Internet Now in 2015.
5. Big data a key factor at the beginning of the supply chain
Jacqui Taylor, CEO of FlyingBinary, explained why people are the key for the Internet of Things. Taylor gives concrete advice on what a company should pay attention to when the transformation initiated by big data starts. Taylor explains that the technology on its own is there, but the question is what you can do with it, and how you’re going to explain the impact and the transformation that is needed in the organization. Nonetheless, using big data technology to construct the supply chain in a new way allows you to put your focus on the customer in a way that has never been possible before.
https://industrialinternetnow.com/big-data-a-key-factor-at-the-beginning-of-the-supply-chain/
4. Industrial Internet changes the way we approach a machine
How has the way of operating a machine changed with the Industrial Internet? Juha Pankakoski, CDO at Konecranes aims to explain how the changing technology gives us new ways to operate machinery, and what possibilities this brings for businesses. According to Pankakoski, new technology and the Industrial Internet enable us to rethink existing processes. In his experience, the amount of possibilities and benefits brought on by those applications often exceed all expectations.
https://industrialinternetnow.com/industrial-internet-changes-the-way-we-approach-a-machine/
3. How to hack an industrial crane
First ever IndustryHack Hackathon event was held on February 6-8. The Hackathon was the first to be organized as part of the IndustryHack series of ten industrial Hackathons, and the article addresses some of the key results from the event. The winning application in this Hackathon was an application developed by Valuemotive. The winning team’s idea focused on the customers’ challenges and included integration of ERP systems and crane operation.
https://industrialinternetnow.com/how-to-hack-an-industrial-crane/
2. Key findings from the Industry of Things World Survey report 2015
A report on a large survey sent to hundreds of IoT-professionals around the globe. Although many of the results were as expected, there were also a number of striking findings. Maria Relaki, Director of Product & Content at we.CONECT Global Leaders, shares some of the key insights the study found. According to Relaki, a decisive factor for companies aiming to be the early birds in IoT adoption is the presence of an innovative and forward-looking leadership.
https://industrialinternetnow.com/key-findings-from-the-industry-of-things-world-survey-report-2015/
1. New renaissance in manufacturing
Gary Mintchell, an acclaimed writer, advisor and speaker on technology and manufacturing shared his thoughts on the ups and downs of digitalization and what role humans play in the process of manufacturing goods in the future. The technological developments allow us to focus on how we can further use technology like robotics, working alongside people to make processes more effective and, furthermore, how we can have people and technology working together safely.
https://industrialinternetnow.com/new-renaissance-in-manufacturing/
Image credit: Nomad_Soul / Shutterstock.com
IoT creates flexibility and optimized manufacturing processes
Industrial Internet for manufacturing is quickly affecting the efficiency and down time of factories. Predictive maintenance and flexible manufacturing concepts are making it easier to fix problems and adapt to the fast changing conditions companies face every day. From automotive to pulp-and-paper, these innovations make companies more creative in their offerings and help them to be more competitive. The concept of a smart factory is deeply discussed in a Control Engineering article by Daymon Thompson. “Manufacturers need flexible manufacturing lines that can quickly adapt to rapidly changing customer demands. This calls for flexible machines that are able to run a multitude of product types, with the ultimate goal of profitably production at reduced lot sizes, enabling a complex mixture of products to be run and filled on-demand,” Thompson writes. Read more about how Industrial Internet could be put into smart factories at:
http://www.controleng.com/single-article/putting-industry-40-and-the-industrial-internet-of-things-to-work-in-smart-factories/87544dce4b1534f49b51514730908386.html
Image credit: Iaremenko Sergii / Shutterstock.com
Hacking and Innovation Webinar – practical findings from Konecranes hackathons
Konecranes’ recent IndustryHack events were about realizing concrete results from the welter of ideas. Now an upcoming webinar will get right to the heart of the most practical findings of the events, with the focus firmly on how these will impact Konecranes’ culture of innovation.
IndustryHack presented hackers with the toughest of challenges; the extraction of real customer value from the sometimes intangible world of the Industrial Internet. The 30 minute webinar will sum up the most intriguing concepts, some of which are already at the implementation stage.
Jari Pehkonen, Industrial Internet Service Development Manager, will be speaking at the webinar, explaining the forward-thinking impetus behind IndustryHack,
“The design work of cranes and their control systems has been driven to become more team work-orientated and the development process has become more agile. Each member of the team has a specific task, whether it’s system development, interface design or testing”.
According to Pehkonen, the teams at Konecranes consist of young talents and professionals with extensive experience.
“This has created team spirit and fostered a culture of team work in a new way, improving the quality of the systems created and leading to an environment of innovation, where employees with different backgrounds and experience level learn from each other. This culture also enables new and bold events such as the hackathons”.
Webinar will shed light on new ways of working
Andrew Quinn, Process and Training Owner, will also be speaking at the webinar, presenting real case studies from IndustryHack and explaining how the Industrial Internet can change the workplace for the better.
As Quinn says, “One of the big ideas was inspecting without inspection; a new way of gathering data from various machines and utilizing this, so that when our technicians actually go to site they already know what work needs to be carried out”.
This webinar will be a must for anyone interested in the pragmatic realization of the Industrial Internet and takes place on December 8, 2015 at 3PM (UTC +2h). Sign up here: https://attendee.gotowebinar.com/register/4095891190657136385
Ask Our Experts: A case example for Pulp & Paper industries
Doesn’t the use of Industrial Internet just make things more complicated and vulnerable?
The converting line operator has a practical problem because he has no rolls coming in on the conveyor from the automatic warehouse. He couldn’t care less about any “Industrial Internet“.
George R, United States
Thank you for your question, George.
To solve the mentioned problem and get the rolls moving in as soon as possible, remote connection can in fact provide valuable help.
Through a remote connection, the crane automation specialist can immediately see from the log-files that the crane has stopped precisely at 15:07:43 hours with its load hanging in the roll gripper on the top of the outfeed conveyor. He can also see the rolls ID number, its diameter, width and weight.
A missing hardwired safety signal from the conveyor is traced from the short term data logs in a few minutes. With the cameras on board the crane, the specialist can also see that there is no roll on the conveyor output and that it’s empty.
A safety signal is released by the conveyor automation (PLC) when the conveyor is empty and ready to receive a roll and if not released, the crane is stopped within a safety distance to avoid collision risk. Now – with this information- the operator can check the conveyor and either drive it empty on manual command or reset it and let the process go on.
This way the remote connection, sensoring and video monitoring on board the crane can save hours of troubleshooting time.
Hannu Piispanen, Industry Specialist, Pulp and Paper, Konecranes
Do you have a question regarding Industrial Internet in a material handling context? Our experts are happy to answer them! Please send in your questions to
Industrial Internet Now reserves the right to edit and possibly shorten the questions before publishing.
IoT upgrades manufacturing companies from traditional to pioneers
Big data is one innovation that is developing manufacturing to be even more of a high-tech pioneer industry. According to Irish Times, one of the reasons for this is that the industry is at the top in terms of the amount of data it generates. “Traditionally, manufacturing has been a very conservative industry, but over the last two to three years, with the technologies of the internet of things, they’ve been able to unleash a new level of productivity,” says Maciej Kranz, vice-president of the corporate technology group at Cisco. Read more about the role of manufacturing as a Big Data front runner:
Image credit: Adam Vilimek / Shutterstock.com
What can be learned about Industrial Internet from the oil and gas industry?
Many heavy industries that are contributing to the Industrial Internet, understand that by sharing and listening outside our own industries we gain maximum benefits of the solutions enabled by Industrial Internet. In oil and gas industry, Industrial Internet can offer efficiency gains at all levels of value chain, according to New Technology Magazine. “The oil and gas industry could save billions of dollars by shifting all of its upstream, midstream and downstream operations to the Industrial Internet, say energy and technology executives with two of the world’s largest corporations, both of which have embraced the technology”, writes Jim Bentein. Even though the article focuses on the oil and gas industry, there are many similarities compared to manufacturing, steel and the pulp and paper industry. For example, “M2M technology approach would also allow operators to take a predictive approach toward equipment failures.” Read more about benefits of Industrial Internet in other industries at:
Image credit: Dabarti CGI / Shutterstock.com