The Trials and Tribulations of Creating a New Market Space – The ECS Story
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Being first to market in the industrial automation space is no easy task, and involves creating new vocabulary, redefining technology territories and communicating technical messages in an easy to understand manner. Invensys faced this challenge head on In 2006 when they introduced InFusion ECS as the world’s first Enterprise Control System. InFusion ECS was part of a Blue Ocean marketing strategy by Invensys, which means to create new market space or a “blue ocean”, thereby making the competition irrelevant. Although the launch was successful, trying to create a new market space in an engineering-driven market presented some very interesting challenges. Among the greatest challenges included: driving a business value proposition in an technology-focused segment – a shift from product features to business solutions overcoming the devaluation of the technology itself as a commodity and demonstrating the huge potential value of automation/information technology overall to the business; driving a human empowerment theme in a market where automation replaces human power; driving a collaboration between accounting and engineering, two functions that do not see eye to eye showing the value of instrument and control engineering to an audience that has diminished those skill sets to a thing of the past; sales channel disconnects; and market message targeting. Dr. Martin will share the journey that Invensys took for the launch of InFusion ECS from a sales and marketing perspective. He will expose the challenges, barriers and pitfalls and Invensys’ ongoing diligence and their continued persistence to overcome them and to thrive in a difficult industrial automation marketplace.
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The Trials and Tribulations of Creating a New Market Space – The ECS Story
- 1. 27 October 2011 Invensys proprietary & confidential Slide
- 2. The Trials and Tribulations of Creating a New Market Space – The ECS Story Peter G. Martin PhD Vice President and Fellow Invensys Operations Management September, 2011 © Invensys 27 October 2011 Invensys proprietary & confidential
- 7. Return on Automation Investment P r I c e Time $ ROI Economic Benefit Cost to Modernize Not Measured Sometimes Measured
- 8. Cash Flow Analysis $ Time 0 ROI Mentality – Negative or Zero 100% Return
- 9. Current Industrial Plant Architecture Safety Control Systems Distributed Control Systems SCADA Systems Manufacturing Execution Software HMI Software Advanced Application Software Distributed Control Systems Distributed Control Systems Manufacturing Execution Software Advanced Application Software © Invensys 25 February 2011 What is the problem?
- 10. Unification through Process Historian Reporting Infrastructure Slide Automation Systems Plant Historian Information Systems
- 12. Executive Industrial Driving Forces Transactional Business Real Time Business Process Control Profitability Control Replacement Empowerment Rigidity Agility Islands of Operation Collaborative Operation
- 13. Real-Time Profit Impact Model Production $ Material $ Safety - people - plant - environment © Invensys, February 2011 Energy $ From To
- 15. Blue Ocean Strategy Value Costs Blue Ocean (new Market Space) Red Ocean (Established Market Space) Harvard Business Review, Oct. 2004
- 16. Red Ocean - Blue Ocean Strategy Red Ocean Blue Ocean Compete in existing market space Beat the competition Exploit existing demand Make the value/cost trade-off Align the company’s activities with strategic differentiation or low cost Create uncontested market space Make competition irrelevant Create and capture new demand Break value/cost trade-offs Align the company’s activities in pursuit of differentiation and low cost Harvard Business Review, Oct. 2004 Blue Ocean Results Consistently Outperform Red Ocean
- 17. Create uncontested market space: Measurable Value Improvement Open Enterprise Control System Microsoft based iSOA Make competition irrelevant Measurable Value Improvement Reduce integration cost 90% Multi-vendor perspective Create and capture new demand Measurable Value Improvement Break value/cost trade-offs Low Cost Unified Delivery System Visible High Value Results Align the company’s activities in Godzilla Program – 18 teams pursuit of differentiation and low cost Blue Ocean Invensys
- 18. Objectives of Godzilla $ Time ROI Godzilla Deliver Measurable Performance Improvement Radically Reduce Lifecycle Cost (ECS)
- 19. Plant/Enterprise Architecture Safety Control Systems Distributed Control Systems SCADA Systems Manufacturing Execution Software HMI Software Advanced Application Software Distributed Control Systems Distributed Control Systems Manufacturing Execution Software Advanced Application Software Enterprise Control System © Invensys, February 2011 34
- 20. Performance-Based Infrastructure Slide Plant Historian Enterprise Control System
- 21. Enterprise Control System Collaboration across complete enterprise © Invensys, February 2011 35
- 29. Cash Flow Analysis $ Time 0 $ 100% Return Cemex Balcones Plant
- 31. 27 October 2011 Invensys proprietary & confidential Slide
Hinweis der Redaktion
- Introduction The accompanying notes to the slides form a guideline to producing successful presentations. You may use this file as a ‘design template’ or simply as slide master copies which you can cut and paste. When you assign a ‘design template’ to your presentation it will adopt the properties from the ‘master slides’ only. ‘ Notes master’ and ‘handout master’ are set with fixed elements; footer information and the Invensys brand mark. It is recommended that you print your presentation in ‘black and white’ to a black and white printer. ‘Black and white’ will convert all colour elements to grayscale. If you wish to preview how your presentation will print in ‘black and white’, the option to do this is available under the ‘View’ menu in PowerPoint. General principles All elements such as text and graphics should be positioned within the margins of the slide. These can be seen by viewing the drawing guides in the typographic grid (Ctrl G). Text should not be reduced in size or condensed etc. to accommodate more text (edit the text or use a second slide). Slides should be used only as a prompt for the presenter. ‘ Opening’ Invensys brand mark slide The size and position of the Invensys brand mark is fixed and should not be modified. Note : This slide is intended as an introductory ‘opening’ slide and a ‘closure’ slide (for use at the end of a presentation) and should not include any additional graphics or text . This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- Title slide [from Title Slide master] The title slide is available as a Title Master and the background and graphic elements are fixed. Text is editable for the slide heading and presentation details but the small compliance text exists in editable form only on the Title Master itself. This type area should be used only for the purposes of compliance text and should not be replaced by other content. Font, type size and colours are fixed for the Title Master style and should not be modified. Footer details Footer detail appear in the bottom-left corner of the slide and appear in fixed positions and order. Editing of the Footer details is done by accessing ‘Header and Footer’ under the ‘View’ menu in PowerPoint®.
- Section divider 1 [from Section Divider 1 master] The section divider slide is a useful way of breaking up a presentation. Two section divider masters have been included in this template – where you require more than two section dividers you can either use the same style or alternate the styles as required. The number of the section always appears in Green on its own line, with the title text appearing beneath this in White. The title text is in a fixed position and should not be altered or modified. This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- The economic profile of any capital asset that is installed in a manufacturing operation has two basic components to it. First is the lifecycle cost of the asset itself. The cost tends to be higher early in the lifecycle due to engineering, installation and start-up. After start-up the cost tends to level off for a period of time. Later in the lifecycle the cost tends to increase due to maintenance and obsolescence. Many process manufacturers have a good understanding of their costs - even over the lifecycle. But few have any understanding of the economic benefit derived from most capital asset investments. One important reason for this is that the economic benefit of the assets is seldom, if ever measured. If it is not measured - it is very difficult to understand how to manage it, or even what value is being derived from any asset.
- Section divider 1 [from Section Divider 1 master] The section divider slide is a useful way of breaking up a presentation. Two section divider masters have been included in this template – where you require more than two section dividers you can either use the same style or alternate the styles as required. The number of the section always appears in Green on its own line, with the title text appearing beneath this in White. The title text is in a fixed position and should not be altered or modified. This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- Section divider 1 [from Section Divider 1 master] The section divider slide is a useful way of breaking up a presentation. Two section divider masters have been included in this template – where you require more than two section dividers you can either use the same style or alternate the styles as required. The number of the section always appears in Green on its own line, with the title text appearing beneath this in White. The title text is in a fixed position and should not be altered or modified. This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- Text slide, with title and body text [from Slide Master] This slide exists as a Slide Master and all type specifications and graphic elements are fixed. Simply type into the prompt boxes. The layout is set as a Title Box and Text Box – within the Text Box there are five levels of type: Level 1 – Body text set in Verdana Regular (18pt on 24pt linefeed) with ‘0.5 line’ space below each paragraph. Level 2 – Bulleted body text set in Verdana Regular (18pt on 24pt linefeed) with ‘0.5 line’ space below each paragraph. Level 3 – Bulleted body text (using a horizontal dash) set in Verdana Regular (16pt on 20pt linefeed) with ‘0.5 line’ space below each paragraph. Level 4 – Bulleted body text set in Verdana Regular (15pt on 18pt linefeed) with ‘0.5 line’ space below each paragraph. Level 5 – Bulleted body text (using a horizontal dash) set in Verdana Regular (14pt on 17pt linefeed) with ‘0.5 line’ space below each paragraph. Within standard body text, subheads are set in Verdana Bold at the same size as the body text. Advancing through the text levels To advance to each text level from the previous one you can use the ‘Increase Indent’ and ‘Decrease Indent’ buttons on the ‘Formatting’ toolbar in PowerPoint®. While the text position is fixed, the text box will grow as you enter further content in the slide – therefore, care should be taken to keep within the present text box margins.
- Section divider 1 [from Section Divider 1 master] The section divider slide is a useful way of breaking up a presentation. Two section divider masters have been included in this template – where you require more than two section dividers you can either use the same style or alternate the styles as required. The number of the section always appears in Green on its own line, with the title text appearing beneath this in White. The title text is in a fixed position and should not be altered or modified. This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- Section divider 1 [from Section Divider 1 master] The section divider slide is a useful way of breaking up a presentation. Two section divider masters have been included in this template – where you require more than two section dividers you can either use the same style or alternate the styles as required. The number of the section always appears in Green on its own line, with the title text appearing beneath this in White. The title text is in a fixed position and should not be altered or modified. This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- Section divider 1 [from Section Divider 1 master] The section divider slide is a useful way of breaking up a presentation. Two section divider masters have been included in this template – where you require more than two section dividers you can either use the same style or alternate the styles as required. The number of the section always appears in Green on its own line, with the title text appearing beneath this in White. The title text is in a fixed position and should not be altered or modified. This slide also exists as a Slide Master option (viewable from ‘Slide Design’ under the ‘Format’ menu in PowerPoint®).
- ‘ Closure’ Invensys brand mark slide The presentation ends with a repeat of the opening slide. This slide can also be used as a holding slide, e.g. between presenters but should not include any additional graphic or text. The size of the Invensys brand mark and its position are fixed. Note : This slide also exists as a Slide Master option. When the presentation is finished, this slide can be left on-screen.