Achieving basic industrial automation functionality is required but no longer sufficient. End users seek better data availability to the enterprise, along with remote visualization capability, to support optimized operation and even new business models.
In an October 2020 article for OEM titled “Look to the Industrial Edge to Improve Machine Performance,” we describe how edge computing can be applied to accomplish these goals.
Owning versus LeasingOriginally, automobile customers bought their cars and operated them, then self-performed or subcontracted the maintenance, and ultimately sold and replaced them. Eventually a leasing model became available, which let those customers operate the car, but shifted some ownership responsibilities, often including maintenance, to the leasing agency. Today, new business models for carshare and rideshare services effectively enable customers to pay for each mile as needed and avoid purchasing or leasing costs entirely. This progression has enabled consumers to gain flexibility, reduce risk, and access the newest technologies.
Several other industries such as electric power, mobile phones and computer data centers have already shifted to this type of pay per usage model. While consumers could self-perform some of these tasks, they find it more efficient to just pay for what they consume.
An Industrial EquivalentProcuring, operating, and maintaining industrial manufacturing equipment bears many similarities to managing a car. Consumables must be ordered, some parts wear out and require replacement, and broken items demand repair. With the right technology in place, both equipment OEMs and end users could benefit by shifting to a leasing model.
Edge Computing ArrivesProgrammable logic controllers (PLCs) and programmable automation controllers (PACs) have long been utilized to automate machinery, but they were focused on equipment operation and local functionality. A new generation of edge controller continues the role of PLCs and PACs, while adding modern computing capability and IT-friendly communication and cloud connectivity.
This edge computing evolution, combined with smarter edge devices and more accessible cloud services, is enabling industrial internet of things and digital transformation implementations. For the first time, it has become easy for data to be collected and connected to the enterprise, where it can be analyzed to drive improved business outcomes.
Machine-as-a-ServiceBeyond remote connectivity, monitoring, and service, edge computing is making possible new business models like machine-as-a-service (MaaS). End users effectively lease the machine or production output services from the OEM, so they avoid large initial capital expenditures. The OEM can closely monitor the equipment and it assumes much of the risk for keeping it in service and performing, while receiving a continuing stream of revenue in return.
Edge PotentialEdge computing is changing industry in many ways, small and large. End users can save money and gain flexibility, while OEMs can realize new revenue streams and develop closer customer relationships.
Many industries and services have already been streamlined into a “pay for consumption” model. Digital transformation, and edge computing in particular, is a path for OEMs to help their users by developing smarter equipment to support remote service, and eventually deliver a MaaS.
This post previously appeared on LinkedIn.