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2015 Manufacturing Industry Predictions

What’s new and trending for the industry? Well, predictions for the upcoming year as a motif is certainly not new but is definitely trending, considering the deluge of pundits concentrating their well-informed thoughts about which industry happenings will emerge through hyperbole and into reality. Amongst go-to industry resources I find myself perusing is LNS Research, who has chosen to break down their Top Three 2015 predictions by industry trend/topic: Industrial IoT; Industrial Energy Management; Environmental Health and Safety; and Asset Performance Management.

Another annual favorite that I’ve blogged about in the past—including commentary on Cisco relevance—is IDC Manufacturing Insights, who this year took on a refreshing, new format entitled IDC Futurescape: Worldwide Manufacturing 2015 Predictions. The team of IDC manufacturing practice analysts quantify and qualify their ten most critical imperatives to be addressed by global manufacturers in 2015 and beyond—based on the coalescence of technology and line of business interests—including a few that are very pertinent to Cisco’s Internet of Everything (IoE) initiatives:

  • In 2015, customer centricity requires higher standards for customer service excellence, efficient innovation, and responsive manufacturing, which motivates 75% of manufacturers to invest in customer-facing technologies.
  • By 2016, 70% of global discrete manufacturers will offer connected products, driving increased software content and the need for systems engineering and a product innovation platform.
  • By 2018, 40% of Top 100 discrete manufacturers and 20% of Top 100 process manufacturers will provide Product-as-a-Service platforms.
  • In 2015, 65% of companies with more than 10 plants will enable the factory floor to make better decisions through investments in operational intelligence.

Before the analyst predictions pushed their way onto my laptop screen, I was asked by Cisco’s press relations team to put forward my top 3 for the industry. So on All Saints Day, before heading out on weeks of travel to China, India, and several of the United States outside my home residence, I produced three ideas that didn’t make it to our PR megaphone. As part of this blog, I’ve decided to share these three predictions, with some relevant observations from my Nov-Dec travels and customer interactions …

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Go to the Edge to Unlock Value in the Internet of Everything

Cisco_Infographic_Analytics Tony Shakib Blog

Now that we are connecting billions of things to the Internet, companies are faced with a huge opportunity and a huge dilemma. Connected things are generating an explosion of data that has the potential to save and earn tremendous amounts of money, time, and resources for companies. However, much of that potential is wasted because that data is most valuable in the moment it is generated, and the time it takes to send that data to the cloud for analysis is too long for real-time decision making. Read More »

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Get Ahead of the Curve in 2015: Invest in IoT

As the holiday season gets into full swing, executives like you are polishing off strategic and operational plans for the New Year. For many manufacturing companies, 2014 was a good year, for some outstanding, and most manufacturers are optimistic for more of the same in 2015. According to MAPI’s US Industrial Outlook, “manufacturing will continue to grow faster than the overall economy,” with 2015 growing at a higher rate than 2014.

Because manufacturers are looking to get ahead of this growth curve and set the stage for competitive differentiation and advantage in 2015, you are utilizing budgets remaining from 2014 to make smart investments now in new technologies, before the year comes to a close. With strategic investments in operations or R&D/engineering, companies position themselves to be more agile, productive and competitive while the economy slowly but surely continues to strengthen. In an Industry Week report, “Manufacturers are optimistic about their businesses as well as the economy as a whole, and are investing accordingly … Following a profitable growth strategy, they are controlling costs while introducing new products, increasing sales from existing customers, and leveraging data to make smarter business decisions.”

In recent conversations with a few of my Cisco colleagues who happen to be 20+yr Manufacturing / OT (Operations Technology) veterans, these industry gurus describe how they counsel manufacturing clients during the transitional holiday season. Steve Gansen points out that for many companies, budgets need to be expended this calendar year-end (‘use it or lose it’), which presents a great opportunity to change the prioritization for projects. “Many of my customers see this as an opportunity to reprioritize projects and drive budget to improve R&D or product engineering and offerings.” (His comments reminded me of the Sub-Zero’s innovative investments in their product development, NPI and processes.)

Jim Fledderjohn and Dwayne Edwards add that there are other considerations for a variety of Internet of Things (IoT) proof-of-concept (PoC) projects for production environments and engineering programs that present incremental, re-directional opportunities at year-end. From video surveillance to energy management, to factory wireless and plant virtualization, there are many compelling use cases that can be easily ‘piloted’ to deliver immediate business outcomes and measurable ROI. In fact, an option recently announced at Automation Fair is Cisco Services Factory Starter Kit, a fast-track, turnkey PoC package of wireless capabilities for your plant environments.

Jim further describes, “Piloting an IoT project on a small scale lets manufacturers test out a concept in their environment and puts them in a better position to win budget and additional investment in 2015.” Particularly in the US—where according to the latest ISM Report On Business for November, the manufacturing sector expanded for the 18th consecutive month—momentum in the industry just keeps building. And considering manufacturing technologies that include embedded intelligence and IoT, according to the Association for Manufacturing Technology (AMT), orders for 2014 are showing growth of >5%.

Are YOU planning end-of-the-year investments in IoT? Let us know what you think in the comment block below. Thanks for reading.

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The Internet of Things Accelerates Innovation and Value Creation for Manufacturers

I wasn’t around during the Industrial Revolution, but I can’t help but think that today is an even more interesting time to be in manufacturing. I’m happy to be participating this week in the annual Rockwell Automation Fair, where it seems we can see the Internet of Things (IoT) evolving in real time.

Perhaps no other industry is being disrupted by technology more than manufacturing. As manufacturers digitize their businesses, operational complexity increases and competitive pressure builds—driving the need for faster innovation, quicker time to market, and more efficient processes. Those who can’t keep up are left behind. Read More »

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Now’s the Time to Deploy Wireless in the Factory

tony shakib connected factory banner pic

Since manufacturers around the globe constantly have to adapt to ever shifting market conditions, any technology that lends a competitive advantage can be a game changer. Implementing wireless on the factory floor can be just that. And our announcement with Rockwell Automation this week at Automation Fair, will make this a no-brainer. The announcement covered enhancements to our joint architecture with Rockwell Automation called the Converged Plantwide Ethernet (CPwE). The Cisco branded version, called Connected Factory, is a portfolio of validated, proven architectures, capabilities and market-leading technologies and services for industrial markets. Factory Wireless is the latest solution offering in this portfolio and delivers unified wireless for industrial applications. Read More »

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