Challenges Driving the Need for Connectivity
Leaders need solutions to meet the demands of industrial automation applications yet may face challenges across the plant floor, IT, and the boardroom.
Industrial Connectivity Layers are Difficult to Scale
Leaders who find themselves with no way of accessing data from their industrial systems are seeing increased costs and wasted time. They lack the visibility into their devices, which limits their ability to effectively understand or manage security across the organization.
Although they seek to build custom connectivity, they find that it can be cost-prohibitive and require a team with very specific skills. If they standardized processes for their connected machines, they’d see substantial cost savings, an accelerated process, and get back the time to focus on innovation.[12]
The average manufacturer deals with 800 hours of equipment downtime per year[14]
Lack of the Right Data at the Right Time Negatively Impacts Investment ROI
Leaders needing to maximize the ROI for their investments of their production environment need access to the right data in order to make business decisions. Unfortunately, too many times companies don’t plan for scale and jump into launching a pilot only to struggle with arduous implementations that don’t yield the expected ROI.[13]
Executives are left questioning if the effort is worth the return with organizations losing confidence, still lacking the proper data, facing unrealized efficiencies, and missing opportunities to gain a competitive advantage.
Unplanned Downtime is Impacting Costs and Processes
The average manufacturer deals with 800 hours of equipment downtime per year — which translates to more than 15 hours per week. This downtime comes at a cost with over 80% of companies experiencing an average of two full outages over a three-year span.[14]
Given the amount of machinery that requires maintenance and attention, there tends to be higher levels of human error when there are manual processes. As a result, manufacturers see the value in digitizing intervention before failures take place. [15] Copyright
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Overcoming the Constraints Impacting Industrial Automation
Modernizing Incompatible Legacy Systems that Slow Down Digitization Initiatives
Digitizing operations is fundamental to the digital transformation journey.[16] This journey of modernizing legacy assets opens up many paths for leaders who let their strategic priorities be their guide.
Some businesses may opt to remove legacy systems and build from the ground up while others see the value in choosing to configure a new software solution. Still others may decide to transfer technologies, processes, and people to an external provider. In doing so, they relieve the burden on their IT department to no longer support older assets. This saves time, resources, and millions in operating costs. [17]
With updated systems, they can more efficiently build out the modern, flexible platform they require which lets them get back to meeting their business needs as well as having more opportunities for growth.
Executing Proof-of-Concepts before Committing Investments
For many manufacturers, executing a pilot can be an obvious place to start. Obtaining that evidence will demonstrate that the connectivity idea and project is feasible. However, don’t get stuck in pilot purgatory, stopping short of developing structure and preparing for scale. By starting with the end goal in mind, those preliminary pilots can be leveraged for valuable learnings and used to jump-start a program that can be rapidly scaled.[18]
Use this experiment to explore possible tracks forward, discover any roadblocks, and convince the greater organization that connectivity should be the goal. Overcoming any hesitancy will prove to be more proactive than reactive, even during negotiations, bottom-line discussions, and any skepticism of quantifiable ROI. Especially postpandemic, manufacturers that thrive are those strong leaders who realize the value of Industry 4.0 technologies early.[19]
65% of industrial companies face pilot purgatory or an inability to scale pilot projects (such as PoCs) when embarking on a digital transformation project.[20]
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Utilizing Advanced Analytics for Data Visibility and Continuous Improvement
Industrial leaders have more machinery to manage, pressures to boost productivity, and demands for flexible operations. Since these organizations generate such great volumes of data, utilizing advanced analytics will help manufacturers solve what seem like impossible problems, as well as uncover issues that may have been hidden.
These can include bottlenecks, causes of downtime, or unprofitable production lines. Advanced analytics can put that data to work by collecting information from various sources and uncovering new ways to optimize their processes, improve uptime, and maximize asset effectiveness.[21]
Boosting IoT Adoption by Addressing Security, Interoperability, and Lack of Standardization
Ecosystem maturity plays a critical role in adoption of IoT, which had been slowed somewhat by security concerns, interoperability, and a lack of standardization.[22] To boost adoption, leaders are assessing the need for retraining developers and engineers as a way of developing the trust needed to integrate IoT applications.[23]
Another solution lies in the convergence of IoT and cybersecurity. IoT and cybersecurity create large amounts of value, so implementing devices that harness the power of connectivity provides a seamless, secure experience for both businesses and their customers.
With technology/software standardization, the total cost of ownership drops. Complexity is reduced, creating a streamlined operation-wide consistency that boosts adoption.
More than 60% of surveyed executives are partnering with specialized technology companies to further their smart manufacturing initiatives in the coming years.[24]
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Connectivity Simplified with Kepware: Customer Value Stories
Imagine if all of your machines across all of your operations were communicating seamlessly. Kepware enables accessibility, aggregation, optimization, connectivity, security, and diagnostics that help businesses connect diverse automation devices and software applications. Utilizing a scalable, unified architecture, Kepware provides a flexible single server that combines drivers and consumes multiple protocols with simple installation, configuration, and maintenance.[25]
Hear from a number of our customers who are solving their connectivity problems and realizing the value Kepware provides.
Kepware Solves the Inoperability Problem
For over a century, Electrolux has developed appliances for homes around the world and has cultivated a diverse portfolio of brands, making it a leading global appliance company. Electrolux has numerous factory sites, and as such, harnesses factory and machine data to reduce errors, improve performance, and ensure product quality.[26]
With many legacy assets and inoperability issues, factory teams lacked visibility into operations and understanding how their machines were performing. Since they wanted to look at the timestamps on data, they spent a lot of time troubleshooting to see where they had a break in communication. They knew they needed consistency and standardization but lacked that standardized method to connect to specific machines. This is where Kepware comes in.
We were able to connect those machines and now receive that real-time data. Kepware is our single source of truth for all of our data. - Kwabena Hobbs, Electrolux
North American IT Automation Connectivity Lead
“Kepware was a key piece to help bridge that gap because it helped us to be more efficient with what we were doing,” said Kwabena Hobbs, Electrolux North American IT Automation Connectivity Lead. “We were able to connect those machines and now receive that real-time data. Kepware is our single source of truth for all of our data.[27]
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With Kepware, the team can now leverage the OEE and start seeing how efficiently they are running machines. With visibility into their downtime, the Electrolux team now knows the overall health of their equipment, producing real-time dashboards from that information.
“So, without that, we wouldn’t have an MES system (Manufacturing Execution System); we wouldn’t be able to track our work orders, our genealogy, traffic control, some of our scanners, or our progression throughout the factory line,” said Hobbs. “With other platforms, there were limitations when it came to the drivers. Since we have legacy equipment, it’s a no-brainer for us to use Kepware because it was just a standardized way of connecting to the equipment.”[28]
With over 50 instances globally and 17 servers in North America alone, Kepware is scaling for Electrolux, with the team standardizing and using Kepware across the entire organization.
Kepware Makes Data Accessible to Reduce Downtime and Waste
Brembo is a leading designer, developer, and producer of braking systems and components for cars, motorbikes, industrial vehicles, and machinery all for the OEM market, after-market, and racing. Brembo operates in 14 countries and on three continents, with 40 production and business sites, and a workforce of over 12,000 employees.[29]
We wanted someone who not only understood the technology, but could also provide insights, ideas, and manufacturing expertise to ensure the solution was robust and solved real business problems.
- Jason Wolfe, Manufacturing Director
Brembo wanted to boost efficiency with centralized visibility of their operations. They had been using manual, paper-based methods for preventative maintenance of their equipment which resulted in a lot of scrap and rework. They required a flexible solution that they could deploy into their facilities.
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“We wanted someone who not only understood the technology, but could also provide insights, ideas, and manufacturing expertise to ensure the solution was robust and solved real business problems,” said Jason Wolfe, Manufacturing Director.[30]
Kepware made their data more visible with real-time production performance monitoring and built support for OT/IT connections. Brembo was able to standardize across all facilities, identify sources of waste, and schedule maintenance when an asset had an out-of-range performance, improving OEE.
“The solutions delivered have shown value in weeks, rather than months, and will help us drive innovation and improve business results,” said Dan Sanberg, CEO, N.A.[31]
Monitoring Plant Assets with Kepware
Stellar is a full-service industrial architecture and engineering firm focused primarily on the food and beverage market. They have more than 750 employees, offering multifaceted design and construction services to businesses around the world. Stellar has been continually ranked as one of the nation’s Top 25 companies in the design-build industry and among the top 100 contractors in the United States by Engineering News-Record.[32]
Stellar was looking to collect data insights into total cost of ownership (TCO) of a facility for their industrial refrigeration customers. They wanted to know what the costs were to operate a facility, what machines were needed, and how often they would need to be serviced.
We wanted to expand our service business and help customers move to a more proactive maintenance approach. - Luke Facemyer, Divisional Vice President
Stellar recognized that by providing insight to their clients about the real costs of building ownership, they could create opportunities for efficiency.
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“And to do that, we recognized we would need to collect significantly more data,” said Luke Facemyer, Divisional VP. “We wanted to expand our service business and help customers move to a more proactive maintenance approach.”[33]
Kepware created that connectivity for their industrial assets. By helping assets speak a common language, analytics help plants monitor assets on the line. Using this data from machines, maintenance can be scheduled and planning for the future is possible.
Stellar was able to improve their uptime with connected manufacturing which reduced downtime, lowered TCO, reduced energy costs, and improved workforce efficiency.
Industrial Connectivity Next Steps
What to Look for in a Technology Vendor
When developing a digital transformation strategy, leaders consider the framework of people, processes and technologies to streamline organizational change management. Industry 4.0 and digital transformation is more than just technology upgrades. It’s about redefining a company’s strategy and cultural mindset.[34]
Do we need to upskill or reskill our employees? How are we empowering our teams to embrace change?
Are our processes streamlined? How complex are they? Should we optimize them?
Do we have the proper internal expertise in place to support any technology adoption or implementation?[35]
Kepware has been the industry leader for industrial connectivity for over 25 years and has a proven foundation for digital transformation.
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Instead of adopting a do-it-yourself approach by building applications themselves or realizing they lack security and scalability capabilities, leaders are engaging with a proper digital partner who helps them achieve time to value with a positive impact.[36]
Kepware has been the industry leader for industrial connectivity for over 25 years and has a proven foundation for digital transformation.
Industrial companies seeking an OT solution need a future-proofed, edge-to-cloud technology that connects assets and provides data visibility through a connectivity platform.[37] Particularly one that allows users to manage, monitor, and control diverse automation devices and applications through a single user interface.
With Kepware, companies have:
Administrative ease, which saves time and money
Security, which offers peace of mind
A single connectivity layer to access data and manage integrations
Speed of implementation
Simplified vendor management
The ability to meet compliance requirements
Reduced operation costs
Lower carbon footprint
Improved or achieved ROI and OEE
Reduced downtime
Improved throughput
Connected data from legacy systems
Pushed data to more modern software, either on-prem or SaaS with Kepware+
Kepware optimizes manufacturing operations to enable digital transformation use cases through its portfolio of industrial connectivity solutions, connecting diverse automation devices and software applications.
With the right digital partner, companies will have access to the right data to make smarter business decisions, improve productivity, and realize rapid time to value.
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Endnotes
1. Ted Kerkam, How Industrial Connectivity Drives Digital Transformation in the Enterprise, Liveworx, May 2023.
2. McKinsey & Company, Technology Trends Outlook 2023, July 2023, pg. 47.
3. Catherine Kniker and Colin McMahon, Digital Transformation Strategy: Where Executives and End Users Differ on the Future. ,2023, pg. 7.
4. Ibid, Knicker and McMahon, pg. 13.
5. Forrester Research Inc., Seamless Connectivity Fuels Industrial Innovation: Industrial Connectivity Leaders from Around the Globe Share Their Perspectives, February 2021, pg. 8.
6. Sebastian Trolli, Are you Ready for your Digital Transformation Journey?, 2021, pg. 17.
7. Forrester Research Inc., Seamless Connectivity Fuels Industrial Innovation: Industrial Connectivity Leaders from Around the Globe Share Their Perspectives, February 2021, pg. 7.
8. Ibid, Forrester, pg. 4.
9. Ibid, Forrester, pgs. 9-11.
10. Deloitte Research Center for Energy & Industrials, 2023 Manufacturing Industry Outlook, 2022, pg. 4.
11. Forrester Research Inc., Seamless Connectivity Fuels Industrial Innovation: Industrial Connectivity Leaders from Around the Globe Share Their Perspectives, February 2021, pg. 15.
12. Industrial Connectivity for Machine Builders, ptc.com
13. Valeriy Dokshukin, Michael Koppelmann, AJ Maxwell, Tom Densevich, and Coleman Rowland, Move into the fast lane: A guide to accelerating automation and creating scale, 2019, pg. 3.
14. Common Cause of Unplanned Downtime in Manufacturing Than Any Other Sector, businesswire.com, 2017.
15. Ibid, businesswire.com, 2017.
16. Nathan Furr, Andrew Shipilov, Didier Rouillard, and Antoine Hemon-Laurens,The 4 Pillars of Successful Digital Transformation, 2022.
17. Marlin Metzger and Thorsten Bernecker, Legacy modernization: A digital transformation - How to modernize your IT infrastructure, 2018. pg. 4.
18. Valeriy Dokshukin, Michael Koppelmann, AJ Maxwell, Tom Densevich, and Coleman Rowland, Move into the fast lane: A guide to accelerating automation and creating scale, 2019, pg. 3.
19. Jerry Foster, Why Most Manufacturers were Hesitant about Tech Investments and Why They Aren’t Any Longer. 2022.
20. Sebastian Trolli, Are you Ready for your Digital Transformation Journey?, 2021, pg. 24
21. Valerio Dilda, Lapo Mori, Olivier Noterdaeme, Christoph Schmitz, Manufacturing Analytics Unleashes Productivity and Profitability., 2017. pg. 2
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22. McKinsey & Company, Technology Trends Outlook 2023,July 2023, pg. 47.
23. McKinsey & Company, Technology Trends Outlook 2023, July 2023, pg. 27.
24. Deloitte Research Center for Energy & Industrials, 2023 Manufacturing Industry Outlook, 2022, pg. 7.
25. Kepware: Optimizing Factory Operations for 25+ Years, ptc.com.
26. Electrolux Turns Connected Data into Transformational Insight, ptc.com, 2023.
27. Interview, Hobbs, Kwabena - IT Automation Connectivity Lead NA. Electrolux, 2023.
28. Ibid., Hobbs, 2023.
29. Ted Kerkam, How Industrial Connectivity Drives Digital Transformation in the Enterprise, Liveworx, May 2023.
30. Ibid., Kerkam, 2023.
31. Ibid., Kerkam, 2023.
32. Ibid., Kerkam, 2023.
33. Ibid., Kerkam, 2023.
34. Sebastian Trolli, Are you Ready for your Digital Transformation Journey?, 2021, pg. 22.
35. Ibid., Trolli, pg. 22.
36. Ibid., Trolli, pg. 28.
37. Ibid., Trolli, pg. 29.
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1 Seamless Connectivity Fuels Industrial Innovation: Industrial Connectivity Leaders from Around the Globe Share Their Perspectives. Forrester Research Inc., February 2021.
2. 2023 Manufacturing Industry Outlook. Deloitte Research Center for Energy & Industrials, 2022.
3. Interview. Hobbs, Kwabena - IT Automation Connectivity Lead NA. Electrolux, 2023.
4. Digital Transformation Strategy: Where Executives and End Users Differ on the Future. Kniker, Catherine - EVP and McMahon, Colin - Senior Research Analyst. PTC, 2023.
5. Technology Trends Outlook 2023. McKinsey & Company, July 2023.
6. Are you Ready for your Digital Transformation Journey? Trolli, SebastianSr. Industrial Analyst. Frost and Sullivan, 2021.
7. How Industrial Connectivity Drives Digital Transformation in the Enterprise. Kerkam, Ted - Product Strategy Director, Kepware. Liveworx, May 2023.
8. Electrolux Turns Connected Data into Transformational Insight. PTC.com, 2023
9. Legacy modernization: A digital transformation - How to modernize your IT infrastructure. Metzger, Marlin and Bernecker, Thorsten, Deloitte consulting LLP, 2018.
10. The 4 Pillars of Successful Digital Transformation . Furr, Nathan; Shipilov, Andrew; Rouillard, Didier; and Hemon-Laurens, Antoine. Harvard Business Review, 2022.
11. Why Most Manufacturers were Hesitant about Tech Investments and Why They Aren’t Any Longer. Foster, Jerry - Forbes Tech Council. Forbes, 2022.
12. Manufacturing Analytics Unleashes Productivity and Profitability. Dilda, Valerio; Mori, Lapo; Noterdaeme, Olivier; Schmitz, Christoph. McKinsey and Co., 2017.
13. Industrial Connectivity for Machine Builders, PTC.com.
14. Move into the fast lane: A guide to accelerating automation and creating scale. Dokshukin, Valeriy; Koppelmann, Michael; Maxwell, AJ; Densevich, Tom; and Rowland, Coleman. Deloitte & Touche LLP, 2019.
15. Common Cause of Unplanned Downtime in Manufacturing Than Any Other Sector. Business Wire, 2017.
16. Unplanned Downtime Costs More Than You Think. Ravande, Sundeep - Forbes Innovation Council. Forbes, 2022.
17. Kepware: Optimizing Factory Operations for 25+ Years. PTC.com.
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Conclusion
As stated when we opened our report, making connections across OT assets is no longer enough and standardization across OT and IT is key. Connectivity is what will bring visibility to critical industrial data that will allow leaders to meet these requirements across the organization. Staying competitive means embarking on a digital transformation journey and standardized connectivity is the first step.
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TO SPEAK WITH A CONNECTIVITY EXPERT AND LEARN MORE ABOUT KEPWARE, CONTACT US TODAY. ©2023. PTC , Inc. All rights reserved. Information described herein is furnished for informational use only and is subject to change. PTC,the PTC logo, and all other PTC product names and logos are trademarks or registered trademarks of PTC and/or its subsidiaries in the United States and other countries Research&Designfor KepwareBy 2023