TechHub: New GE CEO Pushes for Digital Future, US Manufacturing Growing Fast & Cyber Security

Our Future is Digital

New General Electric CEO John Flannery put an end to the constant question, “where is the company headed?”

“I have a lot of decisions to make in my new role as CEO, but one decision is easy: GE is all in on digital,” said Flannery in a blog post on LinkedIn.

The digital age is bringing innovation and productivity for industries everywhere, allowing real, tangible outcomes for business.

Through scalability, installed base and industrial expertise, GE plans to be a major player in helping lead this transformation.

With a focus on their core verticals leveraging energy, oil and gas, aviation, healthcare, rail and mining, to help create a strong Predix ecosystem.

GE’s previous CEO Jeff Immelt at the 2016 Minds + Machines conference.

“The company I joined 30 years ago made machines that made the world work better,” said Flannery. “We are still that company, but the world has changed, and the industrial world is increasingly powered by digital applications.

We are part of this transformation, and we have a focused strategy that I believe is best for our customers and for GE.”

Join John Flannery and GrayMatter October 25 in San Francisco at Minds + Machines, an event that connects industrial thought leaders and showcases technology that helps solve the world’s biggest industrial IoT challenges.

Learn More About Minds + Machines

US Manufacturing Expands at Fastest Pace in 13 Years

American manufacturing expanded last month at the fastest pace in 13 years, according to Industry Week.

The strength of advances in the Institute for Supply Management’s gauges partly reflects impacts from hurricanes Harvey and Irma, which forced shutdowns of refineries, chemical plants, retail establishments and car dealerships which were flooded in the storms and had merchandise destroyed.

However, the nation’s producers had already been on firmer footing because of improving global demand and an increase in US capital spending, according to Industry Week.

Manufacturing

Students visiting a PPG paint and coatings plant for Manufacturing Day 2017 in Delaware.

Orders are projected to remain strong in coming months as Manufacturing Day approaches.

Manufacturing Day is a national celebration of modern manufacturing, meant to inspire the next generation of manufacturers. Manufacturing Day occurs on the first Friday in October — this year’s falls on Oct. 6, 2017.

Statistical analysis of key event reporting suggests Manufacturing Day 2016 affected 595,341 participants, including 257,607 students.

Manufacturing Day is about celebrating manufacturing by providing an opportunity to focus collective attention on manufacturing, aiming to:

  • Empower manufacturers
  • Change public perceptions of manufacturing
  • Introduce people to manufacturing careers
  • Draw attention to the roles manufacturers play in their communities
  • Underscore the economic and social significance of manufacturing

Since 2012, MFG Day events has grown over 1,000%, with manufacturers in all 50 United States and Puerto Rico consistently participating.

Source: MFGDay.com

According to survey results by Deloitte from students that attended events in 2016:


89% of students were more aware of manufacturing jobs in their communities.

84% of students were more convinced that manufacturing provides careers that are interesting and rewarding.

64% of students were more motivated to pursue careers in manufacturing.

71% of students were more likely to tell friends, family, parents or colleagues about manufacturing after attending an event.

Every Third Computer Attacked in 2017 From Manufacturing Sector

In the first half of the year the manufacturing industry was the most susceptible to cyberthreats, with the industrial control systems computers of manufacturing companies accounting for almost one third of all attacks, according to Security Magazine.

The majority of the cyber threats were in manufacturing companies that produced various materials, equipments and goods. Other highly affected areas include engineering, education and food & beverage. Energy companies accounted for almost 5% of all attacks.

Special Agent Keith Mularski, Unit Chief of the FBI Cyber Initiative & Resource Fusion Unit, spoke at GrayMatter’s annual conference on industrial cyber security.

The main source of threats was the internet. Attempts to download malware or access malicious phishing web sources were blocked on over 20% of the ICS computers.

The reason this is such a high number is because of:

  • Interfaces between corporate and industrial networks
  • Availability of limited internet access from industrial networks
  • Connection of computers on industrial networks to the internet from operators’ mobile phones

Ransomware attacks on industrial companies tripled by June this year, with various large crime campaigns.

The WannaCry epidemic was one of the most notable, affecting 13.4% of all computers in the industrial infrastructure. ExPetr was a notorious encryption that followed, with 50% of the computers attacked in the manufacturing and oil & gas industries.

“In the first half of the year we’ve seen how weakly protected industrial systems are – pretty much all of the affected industrial computers were infected accidentally and as the result of attacks targeted initially at home users and corporate networks,” said Evgeny Goncharov, head of critical infrastructure defense department at Kaspersky Lab.

cyber

US pharmaceutical giant Merck & Co. was affected by the ExPetya attacks earlier this year.

“In this sense, the WannaCry and ExPetr destructive ransomware attacks proved indicative, leading to the disruption of enterprise production cycles around the world, as well as logistical failures, and forced downtime in the work of medical institutions. The results of such attacks can provoke intruders into further actions. Since we are already late with preventive measures, companies should think about proactive protective measures now to avoid ‘firefighting’ in future.”

Billions of sensors are being rolled out rapidly as the Industrial Internet expands. The devices for operational technology are very different than those found on information technology networks and they need specialized technology to protect them. 

Download the GrayMatter Cyber Security Guide for Operational Technology to get a comprehensive understanding of security in the OT world including top vulnerabilities. The guide walks you through the first steps in knowing what’s on your network and has specific advice about the assessment process from our top cyber security consultants.

Download the Cyber Guide

TechHub: Anheuser-Busch steps up after hurricane, Manufacturing & Digital Transformation and WEFTEC

In times of national disaster, Anheuser-Busch steps up

Anheuser-Busch paused beer production this week to send 155,000 cans of drinking water to those affected by Hurricane Harvey in Louisiana and Texas.

The first shipment arrived at the American Red Cross in Baton Rouge, Louisiana, on Monday, with two more shipments sent to Arlington, Texas, according to USA Today.

The Georgia brewery regularly stops beer brewing to fill cans with drinking water throughout the year to assure the water is ready should a local community need it.

This is a part of the Anheuser-Busch emergency drinking water program, which partners with the Red Cross to identify communities in crisis and supply them with safe, clean, canned drinking water following disasters.

“Putting our production and logistics strengths to work by providing safe, clean drinking water is the best way we can help in these situations,” said Bill Bradley, the company’s vice president of community affairs.

Providing emergency drinking water to people since 1988, over 76 million cans have been shipped nationwide. The last wave of support was last year, in which cans were shipped to those affected by Hurricane Matthew, floods in Louisiana and wildfires in California.

Read more.

3 Keys to manufacturing digital transformation

Digital transformation must have a purpose: to increase efficiency, quality and cost savings. Otherwise, it’s just a waste of time.

Manufacturers are struggling to keep up with the increase in volatile customer demand, according to Industry Week.

Processes and supply chains must be adaptable enough to turn on a dime. This doesn’t happen if everything is done manually, in Excel spreadsheets, or in systems that don’t talk to each other.

The idea of capturing data, automating manual processes and enabling information sharing becomes imperative.

Controlling the shop floor

Manufacturing starts at the shop floor. Manufacturers must have shop floor control, including access to production information, inventory, quality data and the ability to quickly adjust to machine status across the enterprise.

Connecting the business

The shop floor must connect to the rest of the enterprise to make data accessible and promote rapid, accurate decision-making. Cloud manufacturing ERP not only automates paper-based, manual processes, but also consolidates information into a single set of accurate data.

Unlocking People Potential

Gerdau plant in India.

Once the cloud computing infrastructure is in place, people can pivot to work as business analysts. Production workers can see everything in the “manufacturing moment” over any device, rather than hunting down and piecing together information.

Managers can view analytics and dashboards that relate to their role from anywhere, over any device, to stay on stop of business.

Steel innovator Gerdau sought out the goal to reduce maintenance costs by 20%, undergoing a digital transformation as a result.

With a company of more than 35,000 people across 13 countries, accomplishing the reduction was critical to its profitability.

By jumping into the digital realm of the Industrial Internet of Things (IIoT):

    • An initial investment of $1.5 million yielded annual savings of $4.5 million
    • 93 hours per month were saved in scrap classification
    • Savings of more than 130 hours in unplanned downtime
    • Truck driver productivity had gains of more than 100% with a resulting 5% drop in freight costs
    • Raw material inventory reduced from 3 days to 7 minutes

Download the Steel Case Study

WEFTEC: The world’s largest annual water quality conference & exhibition

Recognized as the largest annual water quality exhibition of its kind, WEFTEC offers water quality professionals from around the world quality education and training.

Showcasing the most cutting-edge technologies in the field, it serves as a forum for domestic and international business opportunities and promotes industry networking.

A smart sensor fountain demo will be at WEFTEC, a co-innovation product by GrayMatter and DC Water.

Experts in the water quality field offer a wide range of technical sessions and workshops, creating a diverse list of water and wastewater issues and solutions including:

  • Collective Systems
  • Energy Conservation and Management
  • Membrane Technologies
  • Plant Operations and Treatment
  • Regulations
  • Research
  • Residuals and Biosolids
  • Stormwater
  • Utility Management
  • Water Reuse/Recycling
  • Water Quality & Watershed Management

GrayMatter and DC Water have created a drinking fountain that monitors water quality and flow in real time – giving users more confidence in the water they are drinking and saving money spent on maintenance and testing.

Find GrayMatter at booth #6549 to learn about the co-innovative partnership and see a live demo of the fountain.

Read more.

TechHub: Digital Transformation in Steel, the Industrial Technology Future & Pittsburgh Tech 50

Gerdau Saves Millions Annually, Accelerates Their Digital Transformation

$4.5 million in annual savings with a complete ROI in only 8 months.

Gerdau has enjoyed a long reputation as a process innovator in the steel industry for more than a century.

For a company with more than 35,000 people across 13 countries, the goal of a 20% reduction in maintenance cost was significant. It would not be easy to accomplish, but accomplishing the reduction was critical to the company’s profitability.

When an asset fails, the company loses an average of $12 thousand per hour in downtime.

The transformation Gerdau needed would take them into uncharted territory for many in the steel industry: the digital realm of the Industrial Internet of Things (IIoT).

Dreaming big pays off

Download the case study to view the roadmap for digital transformation in the steel industry:

Download the Case Study

The Industrial Technology Future

Open software platforms are an increasingly popular trend within the industrial technology sector that is highlighting the important relationship between operational technology (OT) and information technology (IT).

For GE Digital, Predix is the nexus where app engines, digital twins, machine learning and asset performance management meet, said AutomationWorld after a meeting at GE Digital headquarters in San Ramon, Calif.

“Platforms are where tech is going,” said Gytis Barzdukas, head of product management for Predix at GE Digital. “Like Apple, Amazon, Microsoft and Alphabet have their platforms in the consumer space, we want to do the same thing in industrial space. That’s why Predix is an open platform with regulated participation. Predix has been developed as a common data layer into which third-party supplier products can plug into.”

Although the focus in the past on Predix has focused on its cloud-based operations, but Barzdukas was quick to point that Predix can run operate at the edge, in the cloud or in hybrid applications.

cloud platform

A diagram of the GE intelligent platform Predix. Image: AutomationWorld

Addressing cybersecurity concerns around the transmission and storage of such data in the cloud, Barzdukas said Predix currently uses public key encryption and is moving toward inclusion of private key capabilities for users who want it. Predix’s public key encryption security operates in addition to the security provided by Amazon Web Services on which Predix’s cloud functions run. Barzdukas added that Predix will also soon be running on Microsoft Azure.

Pittsburgh Tech 50

The Pittsburgh Technology Council’s Tech 50 finalists were announced, recognizing the most successful and innovative companies in the Pittsburgh area.

Companies range from health IT, life sciences, manufacturing, consumer products, consulting services and more, and are broken up into the following categories:

  • CEO of the Year
  • Solution Provider of the Year, Consulting and IT Services
  • Culture Leader of the Year
  • Innovator of the Year, Consumer Products
  • Solution Provider of the Year, Innovative Technology

GrayMatter is a finalist for Solution Provider of the Year, Innovative Technology, with CEO Jim Gillespie a finalist for CEO of the Year.

The award ceremony will be Thursday, October 12 at the Wyndham Grand Hotel.

TechHub: Digital Transformation in Chicago, Transform 2017 Keynote Kristi Woolsey & Ransomware in Industrial Networks

Chicago: The New Silicon Valley

Chicago’s technology community has been booming in the last five years.

A new KPMG report lists Chicago as a hopeful candidate to be the next international hub for innovation due to its talent and infrastructure, according to Inc. Magazine.

The city fosters a developing startup ecosystem, which raised more than $1.7 billion in funding in 2016, and ranks among the best in the country for growth of tech jobs.

Whereas Silicon Valley has shifted away from innovation to a lifestyle, landing tech leaders like the Snapchat CEO on the front page of a major fashion magazine, Chicago fosters a culture of no-nonsense leaders based on the value of hard work and dedication, according to Inc.

digital

The rooftops at Wrigley Field. Source: CNNMoney

The digital revolution is making more millionaires than ever, pooling together the most brilliant minds on the plant to cultivate an innovative mindset that focuses on creating value.

Join GrayMatter and GE Digital for an interactive session on digital transformations in Chicago on Wednesday, June 21.

Designed for you to learn and share your thoughts, there will be a chance to network with peers and watch the Cubs play the Padres at the exclusive rooftop suites at Wrigley Field.

Nate Arnold, VP of Manufacturing Digital Technology of GE Digital and GrayMatter CEO Jim Gillespie will reveal specific insights on the best paths to success in digital manufacturing and reveal what’s gone wrong in past cases.

Space is limited, so be sure to reserve your spot today.

Reserve My Spot

Inc. Magazine’s Best Workplaces of 2017 AnnouncedInc. Best Workplaces of 2017 GrayMatter

Inc. Magazine recently announced the 2017 best workplaces in their annual list, featuring GrayMatter.

Inc. recognizes the top companies to work for, asking thousands of employees about the places they work. For GrayMatter, transforming operations and empowering people includes our own people.

Transform 2017: MAYA’s Kristi Woolsey as Keynote Speaker

GrayMatter is proud to announce that Transform 2017, the annual GrayMatter conference in Put-in-Bay, Ohio, will feature MAYA Design’s Kristi Woolsey as a prominent keynote speaker this year.

Transform 2017 Kristi Woolsey

Kristi Woolsey, MAYA Design

Woolsey is a dynamic speaker with a long track record of providing insightful presentations that put today’s initiatives into a future context.

Most of her talks revolve around behavioral strategy, the technique of influencing employees and customers towards desired behaviors including greater loyalty, innovation, collaboration, and productivity. These talks and workshops challenge business leaders, HR, IT, and CRE professionals to create lasting branded experiences that increase employee and customer engagement, driving improved business outcomes.

GE Digital’s Sr. Service Director Paul Casto will also present as a keynote speaker. Presenting the power of brand new applications that can be leveraged in the cloud to provide extremely fast, easy to access information about all your assets, he will help cut through the chaos and decipher your digital priorities and first steps.

Transform 2017 is a three day conference in Put-in-Bay, OH, from August 1 – 3.  Professionals in all verticals who are passionate about operational technology and transforming into digital, industrial operations should plan to attend.

View our full agenda and register before June 9 to get the early bird special.

View Agenda

Industrial Networks at Risk of Ransomware Attacks

In recent weeks the news has been filled with reports of the newest malware, WannaCry ransomware, which has infected more than 200,000 systems worldwide.

An alert was published by the Industrial Control Systems Cyber Emergency Response Team, a division of Homeland Security, which advised operations to update security software, create backups, train employees and configure access controls to block unauthorized access to sensitive systems.

Industrial environments are particularly susceptible to these types of attacks for several reasons, including the improper segmentation of IT and OT networks, unpatched Windows machines and the presence of SMB on devices hosting HMIs, engineering workstations, historians and other systems, according to Security Week.

Phil Neray, VP of Industrial Cybersecurity at CyberX, believes that patching the vulnerability is not easy in the case of ICS.

“It’s worth noting that many of the SCADA applications embedded in our electrical grid and manufacturing plants were developed years ago and are tethered to older versions of Windows — so the fix isn’t going to be easy,” Neray said.

 

 

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