The document discusses major changes coming to industrial automation due to new digital technologies. It notes that globalization, faster production, and consumption-based markets require smaller, customized, distributed production. New automation technologies like wireless networks, mobile devices, cloud computing, the internet of things, machine-to-machine communication, and smart robots will transform automation by making it more connected, data-driven, and productive. The new leaders in automation will be those able to significantly improve productivity and meet rapidly changing global demands through innovative use of these digital technologies.

1. Industrial Automation in
the New Digital World
Jim Pinto
Technology Futurist

2. Accelerating Future
 The future is coming at us fast!
 Major changes in past decades
 Globalization
 Technology acceleration

3. Global Economics
 Today’s Markets are Global
 Old - Production Limited
 Make more
 New - Consumption limited
 Sell more
 Era of giant production factories is over
 Production
 Small, custom, distributed
 Suited to local needs and styles

4. Staying Globally Competitive
 Many products have become
commodities.
 Increased competitive pressures -
many global producers accept lower
profit margins
 Producing high value-added products
is part of the solution.
 Compete with best assets - knowledge
workers, technology, innovation, agile
response

5. Faster, Cheaper, Better
 Productivity has become a
global race
 Those who can produce
materials and products
cheaper, faster, better – win!
 Fierce, head-to-head
competition between regions
and nations
 Reason: It is the source of
wealth

6. Demise of Size
 The age of large factories is over.
 Advantages of BIG factories now liabilities.
 Size inhibits growth - some of the biggest
companies are ailing and failing.
 Today's markets are consumption limited,
not production limited.
 Stop manufacturing commodities
 Become innovators and specialists in new
types of high-value manufacturing

7. Old Automation Tech
 For the past decades,
automation technology has
had only changes around
core developments:
 PLCs, DCS and SCADA
commodity hardware
 Migration to networked and
Internet-connected systems

8. Consolidation
 Automation majors are changing
old product-centric approach to
systems and services for large
end-users (lower margins)
 Opportunities for manufacturers,
software developers and systems
integrators to fill the gaps.

9. Digital Technology Shift
 PC to Thin-clients
 Tethered to mobile devices
 Wired to wireless connectivity
 Client-server to cloud-based
 Centralized Deterministic to
Distributed peer-to-peer based
 Machine-to-machine (M2M)
 Robotics & smart machinery

10. Post-PC Era
 The PC-centric period winding
down.
 Thin-client computing delivers
vastly improved productivity at
lower cost.
 Information and displays accessed
from anywhere with smart-phones
or tablets.
 Superior security protection
against introduction of external
worms or virus attacks.

11. Mobile Devices
 Exploding commercial use
generating industrial applications
growth
 Reduced costs
 More functions
 Improved operating efficiency
 Boosts productivity
 Increased throughput using existing
people and resources.

12. Security – Primary Issue
 Post Stuxnet awareness
 Many suppliers consider Security
“after incident service revenue”
 Wireless creates new targets
 Cloud services – new security issues
 Social media provides new
mechanisms for network penetration
 Mobile Devices Embedded IP-
cameras - image-recognition before
access

13. Wireless networks
 Wireless sensor networks will
provide vast arrays of real-
time, remote interaction with
the physical world
 Wireless connectivity is
already wide spread in office
and consumer environments
 Manufacturing is already
taking advantage of the
overwhelming benefits.

14. The Cloud
 More than just conventional data
center model
 Fundamentally changes how
masses of data can be stored for
interaction.
 Services on demand at the
infrastructure, platform and
software levels.
 Big data, the cloud and analytics
combine to offer breakthrough
productivity solutions.

15. Internet of Things (IoT)
 Next huge leap in productivity
 Transform the next decade
 Everything connected
 Significantly reduce operating
expenditures
 Manufacturing devices, sensors and
actuators become Internet-enabled
devices.

16. Machine-to-Machine
 End-users will manage their own
assets
 Complete revolution of conventional
services
 Operating return on investment (ROI)
on all equipment assets available all
the time, any time
 Efficient way to collect and analyze
data from wired and wireless systems
across the enterprise.
 Cloud-based M2M storage reduces
the burden on IT staff and enable
scalability with pay-as-you-go

17.  Self-diagnostics — not only
showing causes of failure
after failure has occurred, but
also predictive (before
failure), preventive
(precautionary and deterrent)
and advisory (maintenance
instructions).
Predictive Diagnostics

18. Robots & Smart Machines
 200 years ago automation
eliminated 70% of Farm Jobs
 70% of today’s job being replaced
by smart machines
 All routine information-intensive
activities will be eliminated

19. New automation leadership
 The new automation leaders
will be those who can
demonstrate that their
products and services can
yield significant productivity
improvements, and can meet
the demands of rapidly
changing global markets.

20.  Globalization – Markets & Suppliers
 Faster, Cheaper, Better Wins
 Old Automation – PLC, DCS, SCADA
 Digital Shift
 Post-PC Era
 Wireless Everywhere
 Mobile Devices
 The Cloud
 Internet of Things
 M2M
 Smart Robots & Machines
 Industrial Internet
Pinto's Pointers

21. Related Links
 Automation Innovation Paradigms:
http://www.jimpinto.com/writings/innovationparadigms.html
 Mobile Devices in Automation:
http://www.jimpinto.com/writings/mobiledevices.html
 Post-PC Era:
http://www.jimpinto.com/enews/22feb2013.html#5
 Industrial Automation and the Cloud:
http://www.jimpinto.com/writings/indautocloud.html
 Automation Internet of Things:
http://www.jimpinto.com/writings/automationiot.html
 Smart Machines Eliminating Human Jobs:
http://www.jimpinto.com/enews/22feb2013.html#3
 GE Targets Industrial Internet:
http://www.jimpinto.com/enews/19mar2013.html#1
 JimPinto.com:
http://JimPinto.com e-mail: jim@jimpinto.com