Sunday, October 6, 2013

Is the end of heavily customised Industrial Operational Systems here?


“What are you saying came?” A comment back from an engineering house, as I started talking about the end users looking for speed to production of projects and are prepared to compromise customization for this!

Not surprising as their business is built around satisfying end users desires for heavily customized automation and operational solutions, even built on standard industrial products, companies have pushed for the customization of these products to suit the way they intend or operate.

I would challenge that these days of heavily customization are coming to an end, driven by the need to get systems and plants up as fast as possible at the compromise for totally custom solutions.

The concept of “good enough" driven from companies such as Apple where their applications from the store provide “specific” task capability (book taxi, airport flight status, email  etc.) with limited customization and configuration options, yet we constantly adopt them due to risk, and speed of and convenience of now.

There are a number of trends that point to this move to adopt proven completed functionality vs customize:

·         Also in manufacturing people are looking for " plug in and play" process modules units, "skids" that have machinery and control configured and proven and are already tested and commission, so now we just have to plug them together. Example in packaging lines, but even refinery ports where we have had modular solutions with equipment, instrumentation, piping and control for years and just bolted and plugged them together.

·         Multi site companies are driving programs around standards, and then enforcing these to be rolled out and managed across sites and in many case different system integrators.

  • So now as look at the adoption of “Managed Services” into the industrial market, we see the need for speed to full production as key, causing people to avoid capital projects/ RFPs and look to gain an advantage by using what is available already as a “managed service”. This has not hit larger companies but certainly is becoming the norm at Tier 3 (small companies) and at tier 2 companies, who want take advantage of the opportunity now. The concept of a set of managed services for:
    • Energy monitoring and analysis across all my pumping stations in a water plant or plants
    • Production/ process information solution that draws up real time data from many plants and assets and stores it in a historian like storage, with out of the box notifications, rules, and analysis clients that are self service to a wider community. Again this could be across facilities monitoring, unconventional gas wells, pump stations along a pipeline etc.
    • Manufacturing operations (MES) for a particular industry that provides manual good/ materials receivables, inventory and WIP management across the manufacturing floor, production order management to CNC machines etc. Again the screens, the forms, the reports are built for that industry, the proven system, the companies provide the master data (customers, products etc), and the rest is available fast as managed services. So a typical MES/ Operations project for a small plant with RFP and definition would go from 6 month to 2 weeks and extremely low risk.

At VM Ware conference two weeks ago again we see the cloud services, and significant discussion that adoption of cloud based services is at the expense of customization. The idea of plugging in a solution and plant and leveraging the design as is will become the norm I believe in the next 3 to 5 years, and certainly provide the edge of agility to those adopt this approach.
Does this mean I think the day of the system integrator is over, NO, they have the unique domain knowledge to build these ‘managed services” and provide the local services to rapidly deploy standards and “managed services”. Yes the way of working in the engineering house will change but I see this as significant opportunity not the other way round!  

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