In a recent ARC Advisory Group SPARC podcast, I had the pleasure of speaking with Steve Blackwell, Head of the Manufacturing Center of Excellence at Amazon Web Services (AWS).

Steve Blackwell leads the Manufacturing Center of Excellence at Amazon Web Services, bringing over 25 years of global experience spanning engineering, operations, and IT in the manufacturing industry. At AWS, he drives the business and technical strategy for manufacturing, covering product engineering, smart manufacturing, supply chain, and smart products and services, collaborating closely with customers, partners, and AWS service teams. His industry experience includes aerospace, automotive, CPG, high-tech, pharmaceuticals, and industrial segments. A trained Six Sigma and Lean practitioner, Steve began his career as a mechanical engineer after earning a Bachelor of Engineering, later completing a Master’s degree in Information Technology.
We took a deep dive into one of the most transformative shifts underway in the industrial sector: Software Defined Manufacturing (SDM) in the era of agentic AI.
The pace of change is staggering. What was theoretical just a year ago is quickly becoming reality. AI agents are finally providing the orchestration layer that unlocks the full potential of the industrial AI toolbox. In our conversation, Steve and I unpacked the key concepts, technologies, and strategies shaping this new era for manufacturers.
Listen or Watch
You don’t have to just read about our conversation—you can listen in as well. The full discussion is available here:
ARC Advisory Group's syndicated Digital Transformation Channel (as a podcast).
ARC Advisory Group's YouTube Channel (for a video experience).
From Software Defined Automation to Software Defined Manufacturing
We started by clarifying the terminology. While many in our OT audience are familiar with Software Defined Automation (SDA)—which focuses on decoupling control software from hardware with innovations like virtual PLCs—Steve outlined a much broader, multi-layered vision for Software Defined Manufacturing.
Steve Blackwell (AWS): "We look at software-defined manufacturing as three layers. At the traditional layer two and layer one, we have what we define as software-defined control. The next layer is software-defined automation, which is the orchestration and automation of that control layer. And then the top layer is what we call software-defined production. This is where we see simulation coming in to do 'what if' analyses."
This holistic view encompasses not just control, but the orchestration of automation and the simulation of entire production environments, closing the loop between the digital twin and the physical factory floor.
The Breakthrough: Agentic AI as the Great Orchestrator
The real catalyst for realizing this vision is Agentic AI. We discussed how AI Agents are moving beyond simple chatbots or analytical tools to become the autonomous orchestrators of complex industrial processes. They act as the interoperability engine, automating the "swivel chair" work of navigating disparate systems.
Steve Blackwell (AWS): "For me, Agentic AI in Industry 4.0 is going to deliver that next level of operational efficiency and enable manufacturers to truly get to software-defined manufacturing. Agentic AI is the overarching enabler that brings together all the different parts of AI, the systems of record, and the applications to deliver that value."
Agents can take an insight from one system—like a predictive maintenance alert—and autonomously execute a multi-step workflow across ERP, EAM, and maintenance scheduling systems, turning a prediction into a completed action without human intervention.
An Open, Interoperable Future
This new paradigm is being built on a foundation of openness and interoperability. The rapid emergence and adoption of protocols like the Model Context Protocol (MCP) and Agent-to-Agent (A2A) communication standards are preventing the industry from falling into proprietary traps.
Colin Masson (ARC Advisory Group): "I'm seeing this idea of an industrial AI protocol stack that brings together MCP servers and clients with agents orchestrated using A2A. I’m hoping this will break things open in terms of interoperability in the factory and with the supply chain."
AWS is leaning into this open ecosystem with tools like the recently announced AWS Strands, an SDK designed to simplify building and deploying interoperable AI agents that can run anywhere—from the cloud to the industrial edge.
Key Takeaways
Our conversation covered a wide range of topics, but a few key takeaways stood out:
SDM is a Holistic Vision: Software Defined Manufacturing is not just about virtualizing control; it's a comprehensive, software-first approach to optimizing the entire production value chain.
Agentic AI is the Enabler: AI Agents are the key to unlocking SDM, providing the autonomous orchestration needed to connect siloed systems and automate complex business and operational processes.
Data is the Prerequisite: A successful SDM strategy depends on an open and accessible data foundation, which is the core idea behind the AWS Industrial Data Fabric (IDF).
An Open Ecosystem is Emerging: The future is being built on open standards. Initiatives like MCP, A2A, and tools like AWS Strands are creating a new, interoperable "Industrial AI Protocol Stack."
The Future of MES is Composable: Legacy systems like MES are not disappearing. Instead, they are evolving to become more modular, or "composable," with AI agents augmenting and automating core functions.
This is a pivotal moment for manufacturing. The convergence of software-defined architectures and agentic AI presents a massive opportunity to build more agile, resilient, and intelligent operations.
Diving Deeper with AWS
AWS Manufacturing Homepage
https://aws.amazon.com/manufacturing/
AWS AI Landing Page
Amazon Q
Blog for the Introduction of Strands Agents
https://aws.amazon.com/blogs/opensource/introducing-strands-agents-an-open-source-ai-agents-sdk/
Blog Covering the Launch of MCP Support in Amazon Q Developer CLI
https://aws.amazon.com/blogs/devops/extend-the-amazon-q-developer-cli-with-mcp/
Blog detailing MCP servers in Amazon Bedrock Agents
Engage with ARC Advisory Group
For ARC Advisory Group recommendations for Navigating the AI Wars, Closing the Digital Divide by Embracing Industrial AI, assembling your Industrial-Grade Data Fabric, the Modern Industrial AI Technology Stack, and governing and guiding major decisions about enterprise, cloud, industrial edge, and AI software, please contact Colin Masson at [email protected] or set up a meeting with me, or my fellow Analysts at ARC Advisory Group.