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Digital Transformation in the Oil & Gas Industry: “Drill, Data, Drill!”

“Drill, baby, drill” makes for an easy mantra when it comes to energy exploration, but the oil and gas (O&G) industry moved past simply drilling long ago with the introduction of digital information processing. For example, integrated production modeling was introduced in the 1970s. With the recent turmoil in the energy industry, the stakes are even higher for O&G companies to work smarter and more efficiently. Forward-looking businesses are making the transition to true digital transformation, which requires the adoption of the Internet of Everything (IoE)—the networked connection of people, process, data, and things—throughout the entire O&G value chain. According to a recent Cisco study, of these four IoE elements, essential “data” is the component most in demand—and the element that needs the most improvement.

Survey respondents identified “data” as the area of IoE they need to improve most to drive insight and value.

Survey respondents identified “data” as the area of IoE they need to improve most to drive insight and value.

However, in many cases it’s not data that’s lacking; O&G firms are awash in data generated by sensors and machines spread throughout their far-flung operations. The struggle comes in capturing real-time operating data closest to the point it’s created, analyzing it in real-time and applying the results to improve functional and business capabilities. To capitalize on the wide range of data IoE generates, O&G firms must overcome three key challenges:

  • Automating the collection of data
  • Integrating data from multiple—and often far-flung—sources
  • Analyzing data to effectively identify actionable insights

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Connected Machines Take Manufacturing to the Next Level of IoT

We’ve all seen how connected products can transform industries in areas like home energy management and personal health, and manufacturing is no exception. When products communicate back to their original makers, the manufacturers can detect production flaws well before customers would need to raise warranty claims. Further, product usage data can become the core of value delivered to the customer. Now that we have Fitbit and Jawbone UP, would you ever consider buying a traditional pedometer whose only method of telling you steps is on an LCD display?  These ideas can be applied to machines on the factory floor too.

In a previous blog post on the Connected Factory, I shared how Cisco’s validated designs combine best practices from operational technology (OT) and IT into robust and secure networks. I also addressed how wireless connectivity can enable a more effective workforce and how digital transformation with real-time production analytics improves quality. Read More »

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What happened after the Innovation Grand Challenge Awards?

At Cisco, we have invested significant time, money and resources into igniting innovation around the Internet of Everything (IoE) both inside and outside the company.

Since fostering an innovation ecosystem is so critical to the success of IoE, last year we launched the global Innovation Grand Challenge. The risk-reward ratio was high, but with a lot of hard work – at Cisco and with partners — the Challenge was a resounding success by all accounts: more than 1,000 entries from 171 countries.

The winners were announced at the IoT World Forum in Chicago last October, and they received not only prize money, resources and mentorships – but also valuable publicity. Driven by the success of the initial Challenge, the IoTWF Steering Committee recently decided to launch a second Innovation Grand Challenge, and this year’s winners will be announced in December at the World Forum in Dubai. Read More »

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What happened to the “Things”

We are all very caught up in the “Internet of Things” phenomenon.  There isn’t a day goes by when we don’t see an article (or sixteen) on the topic.  We see statistics quoted here there and everywhere about this is going to/already is affecting our lives, yet almost none of these articles seems to see the big picture.

In “How to Fly a Horse” by Kevin Ashton (http://www.amazon.com/How-Fly-Horse-Invention-Discovery/dp/0385538596 ) we learn that Kevin coined the phrase “Internet of Things” (IoT) in 1999 when he was trying to present a solution to the problem of tracking the sales of lipsticks.  Kevin worked at Procter & Gamble and the misplacement of lipsticks in the display case was causing a sales issue when the required color was in stock, on the display, but in the wrong place and not easily found.  Kevin put an RFID tag in the lipstick and an antenna under each location, monitored the display unit, uploaded the information to the internet and used it to make decisions about the actual sales stock position.

Since then the term has been broadened to include almost anything that is in some way connected to the Internet and is providing information that can be used. The term has almost become a part of everyday use, though it seems the understanding of the term has morphed.  In 2013 the Oxford English Dictionary included a definition for the IoT – “The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data” (http://www.oxforddictionaries.com/us/definition/american_english/Internet-of-things ). While this definition is fine, it does not capture the real essence of the concept.

OSI ETC JTC 1In 2013-4, Special Workgroup 5 under ISO/IEC JTC 1 (International Standards Organization/International Electrotechnical Committee Joint Working Group 1) spent a lot of time looking at the definition of the IoT and found over 30 definitions in common use including one from CISCO.  The group reviewed all of these and created a new definition that is currently being used in ISO – “The Internet of Things (IoT) is a global network infrastructure, linking physical and virtual objects through the use of interoperable data capture and networking methods.  Standards‐based object identification, sensors, controls, actuators, and connection capability provide for  the  development  of  independent  cooperative  services  and  applications  supported  by data analytics and characterized by a user‐defined degree of autonomy.” The work of this group can be found in a report and annexes to be found at http://www.iso.org/iso/jtc1_home.html. Read More »

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Security as an Enabler in a World of Increased Manufacturing Vulnerability

CF imageTShakibManufacturing is entering a new digital era, with more opportunity for mass customization, reduced downtime, and increased innovation. Manufacturers are capturing the value of the Internet of Everything (IoE) by becoming digital. Many are taking their first steps in this transformation by adopting Ethernet to connect plant floor devices to better manage operation and supply chain workflows, improve efficiency, and reduce costs. This digital transformation, however, creates greater exposure to cyberattacks. As a result, mitigating security threats has never been more important. Read More »

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