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Summary
The recent IBM InterConnect event had 21,000 attendees in two locations in Las Vegas. It combined three previous events and focused on cloud, mobile, analytics, and cognitive computing. Fortunately, ARC was there for the sessions on the Internet of Things (IoT), Maximo, and TRIRIGA.
Industrial IoT (IIoT) has evolved into a technology with practical applications - particularly for original equipment manufacturers (OEM). ARC recommends considering new business strategies including selling PdM services and using closed-loop PLM to grow market share. OEMs can use IIoT to grow revenue which improves shareholder value and gets senior executive attention.
Key takeaways include:
- New APIs for Watson enable integration with commercial applications and development of an ecosystem of applications and partners
- Industrial IoT can enable business transformation to closed-loop PLM so equipment manufacturers can improve product design, grow market share, and reduce warranty costs
- Industrial IoT provides a means for equipment manufacturers to obtain new revenue streams for value-added services with condition monitoring and maintenance
Cloud, Mobile, Analytics, and Cognitive Computing
The IBM InterConnect event combined three previous IBM conferences - Impact, Innovate, and Pulse - into one event focused on cloud, mobility, and security. The event, which used two locations in Las Vegas, drew 21,000 attendees.
IBM rolled out new hybrid cloud technology for cloud adoption with integration to existing applications, data, and services across a multitude of traditional systems. The hybrid cloud uses open standards to help overcome the barriers between clouds and on-premise IT systems. It provides clients with control, visibility, and security for public and private clouds to make integration easier to manage.
IBM unveiled the Watson Zone, a new resource center that brings together Watson APIs, sample code, training resources, and use cases to incorporate cognitive computing into solutions. The APIs enable partners to create solutions that could develop into an ecosystem for broader commercialization of Watson. An application would make a query to a cloud instance of Watson and use the response. According to the company, over 30 industries have deployed applications using Watson.
Asset Management and the Internet of Things
Combining three events at InterConnect resulted in a diverse set of sessions and activities. ARC focused on asset management with Maximo, integrated workplace management with TRIRIGA, and the Internet of Things (IoT). Several sessions included impressive case stories on the use of these products and technologies. We summarize some of the more thought-leading sessions below.
IoT Implementation Helps Reduce Unplanned Downtime
A demonstration of IBM's integrated technology illustrated the potential of IoT for asset managers. Pete Karns, IBM, reviewed the demo's five steps:
- Connect assets
- Compose data flow
- Forecast failures
- Automate response
- Accelerate repairs
The key benefit of IoT with this combination of data acquisition and analytics involves reduced unplanned downtime and improved uptime. Major General Les Eisner followed with, "You should not wait until it fails. Leverage condition monitoring, analytics and IoT for better asset management." The maturity path to maintenance proficiency is corrective, preventive, and then predictive. Benefits include fewer parts replacements, less preventive maintenance, lower cost maintenance, and improved safety.
IoT for Business Growth
Looking beyond predictive maintenance (PdM), IBM's Neil Postlethwaite outlined three business transformation opportunities using IoT.
- New revenue from existing products or services
- New working practices or business processes
- Change an existing business model or strategy
Avner Goren, Texas Instruments, stated that "IoT is an enabling technology, not a market by itself." The recurring cost (electronics, power and housing) for an equipment manufacturer to add IoT to a dumb asset (a pump in his example) is now under $50.
Industrial IoT for Closed-Loop PLM at Cummins
Usually, equipment manufacturers make products that are installed and used by others without feedback on performance - until something goes wrong. Essentially, the product development occurs "open loop" without customer feedback. Kevin Massey, Cummins, provided a superb presentation on how to achieve "close loop" product lifecycle management (PLM) with IoT.
The Cummins engines already have intelligence in the form of the engine control module (ECM) which has access to all the engine data. By adding communications, it transfers data to IBM CloudOne with analytics. Now, product development has access to performance data that it uses to improve the engine's design. Configuration changes are sent to an engine to improve its operating performance and reliability.
The primary reason for Cummins' IoT initiative is to improve the design of the engine, gain competitive advantage, and grow market share. Another benefit has been a reduction in warranty costs.
Cummins has started to consider adding a condition monitoring service for the users of its engines. Cummins sells its engines through an extensive dealer network that also services the equipment. The strategy would be to offer a PdM service where Cummins manages the data acquisition and analytics, and transfers the results to its dealers who engage with the user to deliver the maintenance services.
Conclusion
Industrial IoT (IIoT) has evolved from a thought-leading concept to a technology with practical applications that currently focus on original equipment manufacturers (OEM). This event offered demonstrations and case stories to substantiate new business strategies identified by ARC Advisory Group, including selling PdM services and using closed-loop PLM to grow market share. The benefits of IIoT for OEMs involve revenue growth, which grabs senior executive attention for improving shareholder value.
By combining events, IBM InterConnect covered important and dynamic technologies with a focus on cloud, mobile, analytics and cognitive computing. The event was huge, making it easy to get lost. Fortunately, IBM provided an integrated desktop and mobile scheduling application that made it easy to identify and attend specific sessions, such as IoT and asset/facilities life cycle management, which highlighted IBM's market leading Maximo and TRIRIGA solutions.
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Keywords: IBM, Maximo, TRIRIGA, Industrial IoT, InterConnect, CloudOne, Analytics.