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Growth and revenue opportunities emerge from the advent of new business models, mergers & acquisition activity, finds Frost & Sullivan...Rebounding from a two-year slump, the non-destructive test (NDT) inspection services market is undergoing an overall transformation. The convergence of various technologies such as Big Data, predictive analytics, digital twin, cloud computing, and smart factories is enhancing growth opportunities in the market, giving rise to several new business models. Vendors are making concerted efforts to convert Big Data to smart data and shift the market from the traditional time-people business model to more proactive performance-based business models.

"Industrial Internet of Things (IIoT) and Artificial Intelligence (AI)-based NDT capabilities are altering market structures and driving the transformation of traditional business models,” said Prem Shanmugam, Senior Consultant for Measurement & Instrumentation at Frost & Sullivan. "Automation companies are increasingly repositioning themselves as service providers, while sensorization and predictive analytics have enabled vendors to develop innovative business models."

Frost & Sullivan’s recent analysis, Global Non-destructive Testing Inspection Services Market, Forecast to 2022, identifies key growth opportunities while detailing the challenges and threats. The forecast period is from 2018 to 2022, with 2017 being the base year. It covers the technology segments of ultrasonic, radiography, electromagnetic, visual inspection, and penetrant test.

 

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For further information on this analysis, please visit: http://frost.ly/30g 

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"This evolving market ecosystem will encourage numerous mergers and acquisitions as NDT inspection service companies look to broaden their capabilities in areas such as online monitoring, robotics, and predictive analytics," noted Shanmugam. "The convergence of dimensional metrology with NDT applications will help create a competitive advantage for NDT vendors by allowing them to expand beyond their core capabilities. For instance, technology synergies will enable vendors to use 3D portable laser scanners to scan pipeline corrosion."

Another significant benefit of applying technologies such as connectivity, cloud, and advanced analytics is that it mitigates the challenge of a shrinking pool of experienced and qualified NDT technicians. There are additional revenue opportunities to be gained by leveraging cutting-edge technologies, such as:

• AI-powered industrial robots in inspection and material handling.
• Intelligent algorithms for processing huge amounts of data in real time.
• Drones to inspect components and repair damaged components in the wind energy sector. The results will be automatically analyzed using fuzzy logic and neural networks.
• Mechanical follow-up tools to ensure adherence to the structure of the actual part or new advanced technologies such as CT 3D X-rays.
• The combined synergies of NDT inspection services with online monitoring solutions similar to condition monitoring and other ICT and advanced analytics.

Global Non-destructive Testing Inspection Services Market, Forecast to 2022 is part of Frost & Sullivan’s global Test & Measurement Growth Partnership Service program.

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Simon Fahie, Managing Director - Global Technologies, at ByBox reflects on a busy final quarter for the year, what the big challenges for 2019 will be and how we can overcome them...

Judging by the packed conference halls I’ve seen across the world this quarter, I think it’s fair to say that Winter 2018 is ‘events season’ for the global field service industry.

I was among the thousands of professionals who travelled to attend flagship conferences – all connected by a ‘need to know’ the latest developments within our sector.

But, as I heard tales of pioneering innovations and technologies at, for example, exhibitions in the USA, and a user group event in the UK, I was struck that the processes behind our work are just as important as the technology which supports it.

Hearing about the increasing pressures and challenges affecting the field service supply chain, and the different ways organisations are seeking to address them, triggered a train of thought in my mind around the power of lean thinking.

The principles of Lean are clear. It’s a systematic way of checking every process to find and extinguish waste. By eradicating unnecessary spend, time and resources, organisations can focus on adding value to customers.

And this one methodology is so effective, it can be used equally well within a wide range of businesses, from office cleaning, to automotive manufacturing, or the delivery of complex highway schemes. All three of these tasks have been analysed, broken down into steps, designed and redesigned to be as Lean as possible.

For decades, service companies have seen the value in similarly systematically removing unnecessary delays, materials, labour and costs from their processes. And yet, as the events began to wrap up, it became obvious to me that Lean thinking could have played a part in the case studies I had presented, and the networking conversations I had enjoyed.

I heard over and over again that the pain points are there. For example, getting the right service part to the right place at the right time is so important that, ironically, some businesses seem wary of making strategic changes. We heard stories about excessive inventory or significant costs related to same-day distribution being left unchallenged because ‘it works’. We know from analysis carried out recently for one organisation that 65% of items sent to site using same-day transport were returned by the engineer as good stock.

It doesn’t take much effort to start finding waste in that process, but what are the seven types of waste in Lean, and how might field service industries start finding some waste to eliminate?

Based on my experience at 2018 field service events, here are some examples, and how our customers are going about eliminating them:

 

Transport: Unnecessary movement of people or parts between processes

We saw one company save 640,000 miles of driving by delivering parts to app lockers at service sites, instead of using dispersed forward stocking locations. (FSLs)

 

Inventory: Excess raw material or finished parts 

Another firm had more than £1 million-worth of duplicated stock sitting in repair engineers’ vans.

The company cut spend significantly, by storing items specifically required by each location in secure on-site lockers

 

Waiting: People or parts waiting for the next step of a process

45 minutes per day, per engineer – that was the average waiting time saved by one organisation when it replaced PUDO collections with public locker collections.

 

Motions: Unnecessary movement of people or parts within a process

In our experience, the most advanced firms enable engineers to order parts for direct delivery, using a mobile app. This eliminates the unnecessary and inefficient movement of thousands of parts to and from warehouses, and can even enable firms to remove entire FSLs from their supply chains.

 

Rework: Correction or repetition of a process 

Forward-thinking firms also use mobile apps to assign condition codes for parts which need to be returned. This allows items to be directly routed to repairers, rather than return to the warehouse for evaluation. We’ve seen this contribute to a 40% reduction in total inventory for some firms, as well as a reduction in processing resources.

 

Overproduction: producing sooner or in greater quantities than customer demand

We saw one corporation reduce duplicate inventory by consolidating a UK stock-holding into a European warehouse. Delivery lead times and customer service levels were maintained by exploiting scheduled flights, and pre-8am distribution to lockers.

 

Over processing: Processing beyond standard required

Implementing a dedicated delivery point at a secure site reduced same-day transportation costs by 80% for one customer. In this use case same-day delivery was only used to ensure early next day availability.

 

It’s important to remember that the benefits of Lean thinking go above and beyond reducing waste, and into adding value to customers. For example, eliminating unnecessary movements often reduces overall lead-times -which in turn reduces risks to SLA compliance. And reducing transportation waste further supports carbon reduction targets.

I don’t pretend to be an expert in Lean thinking, however, as we seek to meet ever tighter service level requirements while simultaneously reducing costs these examples serve as reminders that there is plenty of waste to find if we go looking for it.

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Simon Fahie is Managing Director, Global Technologies for ByBox

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Experts from Accenture, Daimler Trucks North America, Spartan Motors, Carlisle & Company, Bocconi University and Syncron share strategies to succeed in the years ahead...

To help manufacturers navigate one of the most transformative times in history, Syncron^TM, a provider of cloud-based after-sales service solutions focused on empowering the world’s leading manufacturers to maximise product uptime and deliver exceptional customer experiences, today published “2019 After-sales Service Predictions: Powering the Journey to Servitization Through Maximized Product Uptime.” Service experts from Accenture, Daimler Trucks North America, Spartan Motors, Carlisle & Company, Bocconi University and Syncron shared insights on the time, resources and technology manufacturers will need to win in 2019 and beyond. 

Servitisation – where organisations transition from selling one-off products to selling the outcome or value those products deliver – is leading manufacturers to evolve their after-sales service operations from reactive, break-fix models focused on repair execution, to a new paradigm focused on dynamic repair prevention and maximising product uptime. In this new white paper, Syncron unveils how manufacturers can succeed in this shift to servitisation. 

“In this new era of servitisation, the responsibility for ensuring maximised product uptime is shifting from the end-user to the manufacturer,” said Gary Brooks, CMO at Syncron. “This new business model will require manufacturers to find ways to increase cost efficiencies throughout the entire value chain, ultimately driving them to completely transform business logic, company cultures and product development strategies. Today’s global manufacturers are at a pivotal point in their storied histories, and those that adapt to the changing climate will be the ones to come out on top.”

The key predictions included in the white paper include: 

1. The time for manufacturers to begin shifting to servitisation is now
2. Manufacturers must intelligently allocate the resources behind an evolving industry
3. Adopting the right technology is crucial to making servitisation a reality

In addition, the white paper includes a foreword by Syncron CEO, Anders Grudén, plus further details about the future of after-sales service and immediate next steps for manufacturers to take as they begin 2019.

“We interviewed multiple industry experts – the best-of-the-best around the globe, to compile this expert advice,” continued Brooks. “This white paper will serve as an ultimate guide for manufacturers to establish business plans for not only 2019, but also several years down the road.”

Key contributors to “2019 After-sales Service Predictions: Powering the Journey to Servitization Through Maximized Product Uptime” include: Kurt Ranka, Principle Director, Accenture; Carlo Alberto Carnevale Maffè, Professor of Strategy, Bocconi University; Nate Chenenko, Manager, Carlisle & Company; Jay Johnson, General Manager, Daimler Trucks North America; Jon Dickinson, Director of Aftermarket Sales, Spartan Motors; Anders Grudén, Chief Executive Officer, Syncron and Gary Brooks, Chief Marketing Officer, Syncron.

Click here to read “2019 After-sales Service Predictions: Powering the Journey to Servitization Through Maximized Product Uptime” in its entirety. To learn more about Syncron and its suite of after-sales service solutions, visit syncron.com.

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Aly Pinder looks at three ways in which manufacturers must consider leveraging augmented service tools...

The way we work, learn, and communicate have all taken a drastic turn from just a couple decades ago. When was the last time you saw a teenager or even a current college student read a physical newspaper, write a note in a notebook or on piece of paper, or look up a definition in a dictionary (not an online one)?

I imagine like me, you probably can’t remember the last time. This transformation has wide ranging implications, the least of which is the collapse of the encyclopedia industry. But this is not another article on why millennials need to be coddled, or how Gen Z is bad for the economy.

I don’t think any generation, ones before or after me, are the problem. But the way in which their behaviours impact the world around us must be addressed and used to help us all evolve.

 

"Manufacturers must take a few steps to turn knowledge into a shared resource  and not just a repository of work instructions..."

 

This is where manufacturers and service leaders come in. For manufacturers, the implications of a changing economy and digital world are even more real as it is becoming more apparent that to fill a growing gap in labor the tools, training, incentives, and motivations of work will need to be transformed as well. Not only do manufacturers need to do more for the customer, it increasingly is coming from more junior workers who need to get up to speed fast.

This convergence is where I believe augmented service tools can play a big role in democratizing knowledge across a varied set of employees and levels of tenure. But to get there, manufacturers must take a few steps to turn knowledge into a shared resource  and not just a repository of work instructions. 

With this in mind there are three things I believe manufacturers should consider.

 

Peer-to-Peer vs. Top Down.

Are you more likely to listen to your boss or your colleague?

The answer may be a bit different depending on whether you work in an office or out in the field. Many manufacturers I’ve spoken with talk about the level of engagement they find when they empower their field teams to work together to share best practices, whether in a newsletter, during beginning of day meetings, or via a video. Insights are more powerful when they come from a peer that is going through the same challenges you are.

Therefore, I believe user-generated content from field service technicians will help speed the adoption of video training tools and knowledge sharing.

But it is up to the manufacturer and service leadership to provide the tools, security, and platform for this technology to work and be accessible to the right people.

 

Amplify Investments in Innovation and Collaboration.

It is probably not prudent to predict industrial manufacturers or an oil & gas company to rival Google or Apple as the next great innovative companies of this generation.

However, there is a lot of innovation happening today within manufacturers that doesn’t often get reported to the outside public. If manufacturers want to draw the talent of the future they must not only have the tools the next wave of workers want to use, but they must also highlight in recruiting and marketing materials the innovative technologies that are used daily to get work done. This may help differentiate from the throng of manufacturers that are trying to procure talent. And why not promote innovation to those you want to bring in as employees in the same ways you woo customers.

 

AR / VR should play a role in the field.

I am not as bullish as my peers regarding the future pervasiveness of Augmented Reality (AR) and Virtual Reality (VR) tools in field service. I do, however, think there are several use cases and environments where this technology makes sense.

 

"What it most important though, is that manufacturers evaluate their infrastructure, environment, and workforce capability to maximise the value of this technology..."

 

What it most important though, is that manufacturers evaluate their infrastructure, environment, and workforce capability to maximise the value of this technology. AR and VR tools do have the ability to help bridge the gap between an ageing workforce that may need to move to a back-office role and a less tenured technician who needs real-time assistance while on a job.

The talent pool or lack thereof is forcing manufacturers to re-think how they recruit, where they recruit, and what tools they need to navigate this environment.

As much as we have all discussed this topic for years and almost a decade now, manufacturers must take this moment to understand the worker of the future. It is imperative that manufactures provide the tools to augment their work environment to bring them in and keep them on the team.

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Aly Pinder is Program Director for IDC

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The rapid proliferation of service-based models, including Software-as-a-Service (SaaS) and asset management, is attracting new market participants to the analytical instrumentation space. In just a few years, analytical SaaS instrumentation and cloud-based alternatives to legacy solutions will dominate the industrial sector due to the shift in customer focus from instrumentation features to the ways in which the technology can help enhance business outcomes.

"As the data collected from instruments can potentially deliver more value than the hardware, there is high demand for analytical instruments that mine data and convert it into actionable insights,” said Mariano Kimbara, Senior Industry Analyst, Industrial Group at Frost & Sullivan.

"Consequently, service providers are delivering software solutions that help digitize lab operations by intelligently connecting people, processes, data, and instruments. These solutions will allow users to target services more strategically, better utilize assets, reduce downtime, and plan program schedules."

Frost & Sullivan’s recent analysis, Advanced Services in the Analytical Instrumentation Market, Forecast to 2022, identifies new areas of advanced services, including asset management services, radio frequency identification (RFID) inventory control services, laboratory intelligence services, consulting services, and compliance services. It also offers a deep dive into new data-driven business models.

For further information on this analysis, please visit: http://frost.ly/2ze

"In the current connected era of continual business transformation, there is an intense need to consolidate all work order management activity into a unified, automated data platform to optimize costs," noted Kimbara. "System vendors are, therefore, offering new, unified platforms that remove organizational silos and ensure connections among cross-functional divisions, linking sales, procurement, finance, logistics, suppliers, and scientists."

In addition to developing integrated service capabilities, market vendors could explore the growth opportunities present in:

 

• Delivering an OPEX model. Create an asset management service that increases visibility into the condition of existing assets.
• Shifting from a reactive business model to a proactive business model. A central data platform with automated allocation of instruments and inventory based on project demand and timelines can help anticipate events and lower costs.
• Tapping opportunities to cross-sell. The growth of asset management services could lead to revenue opportunities from rental services.
• Delivering offline and online measurement services. They can expand service lines through partnerships with software analytics providers.
• Making available expert, multi-vendor instruments service support for instruments in the entire laboratory.

 

Advanced Services in the Analytical Instrumentation Market, Forecast to 2022 is part of Frost & Sullivan’s global Test & Measurement Growth Partnership Service program.

 

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In the third from our series of articles looking at the key speakers at this year's Aftermarket business conference, Copperberg's Mark McCord reflects on an exciting presentation given by Mika Karaila, Valmet on the potential of Augmented Reality in field service delivery...

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The schedule for Aftermarket 2019 is already being put together and it promises to be a key date in the calendar once again. This is an event that almost always sells out so head over to aftermarketeurope.com now and secure your place at this important industry event...

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Maintenance technicians are busy feeling their way around a new power station in northern Finland – even though the plant hasn’t been built yet.

They’re part of a team that’s breaking new ground with augmented reality (AR) technology, working within a virtual model of the facility, even “walking” its rooms and machinery two years before it’s completed.

In this digital environment the technicians are familiarising themselves with the Oulu Energy Co power station’s layout and using the platform to make alterations to its design before construction begins next year.

 

"It means there are no delays and there is no downtime when the plant eventually opens, the engineers will know every centimetre of it when it’s open..."

 

“It means there are no delays and there is no downtime when the plant eventually opens, the engineers will know every centimetre of it when it’s open,” explained Mika Karaila, research director at Valmet, the Finnish services and automation firm that’s developing the power station and which created the software for them. “They are designing everything there.”

Karaila is a leading expert in the application of AR, and its cousins virtual reality (VR) and mixed reality (MR) to maintenance and support services, a subject he elaborated on in detail at Aftermarket 2018. He foresees a future in which crucial training and maintenance will be carried out remotely and virtually.

“The technology is there already and we are using it,” he said.

For more than 30 years, Karaila has been developing and putting into operation distributed control systems and integrated controls systems, and has more recently turned to artificial intelligence and visual technologies.

In his presentation, Karaila donned a pair of high-tech digital glasses and headset to demonstrate how the Valmet software can add virtual elements to a real-life environment. Via a giant video screen linked to Karaila’s headset, assembled delegates watched a huge paper processing machine materialise in the room. As Karaila walked around, his view of the digitally visualised machine adjusted accordingly.

Still, in its infancy, the technology is being driven mostly by the gaming industry, where players demand increasingly immersive and life-like experiences. But Karaila says AR, MR and VR’s application in industry will grow in sophistication as it becomes more widely adopted.

Its potential for field services and aftermarket services are enormous, he said.

“Facilities that are located many miles away can be monitored remotely,” he explained. “That, we can do now, but in the not too distant future it could be used so that an engineer can be at a facility as a telepresence, guiding the actions of a technician at the facility in repairs and maintenance.”

 

"Eventually, of course, we will be able to use this software in conjunction with robots to perform repair and maintenance tasks remotely..."

 

Lasse Laanikari, head of area customer service management at Liebherr, said the technology would be suitable for his company.

“I see training benefits in this,” Laanikari said. “We have earth movers 3,000 kilometres from our base, which we may see once a year and when we send a technician they may never have seen it before. They may travel there and realise they do not have what they need for the job. So you stay there, wait for someone to ship it over and start again. This could offer expert help in the field when they operators don’t know what to do.”

The Valmet technology enables collaboration between multiple engineers in the same virtual space. In a demonstration, Karaila showed how other team members are represented as simple plain head-and-shoulders avatars. But he said soon the software will be able to project images of those individuals’ faces onto their digital forms.

“Eventually, of course, we will be able to use this software in conjunction with robots to perform repair and maintenance tasks remotely,” Karaila said. “The possibilities are endless.”

Interview Conducted by Mark McCord at Aftermarket Business Platform 2018

 

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Ericsson has been selected by Swisscom, the largest telecommunications service provider in Switzerland, to enhance the consumer experience for its subscribers through deployment and integration of the Ericsson Expert Analytics solution into its existing big data ecosystem.

Ericsson’s solution will deliver data analysis and actionable insights for the service provider’s 5.3 million 4G mobile broadband subscribers using video and other OTT applications on the nationwide mobile network.

Daniel Staub, Swisscom, says: “Delivering a superior experience to our customers is at the very centre of Swisscom’s strategy, and Ericsson Expert Analytics will help us to pursue this vision even further by providing us with end-to-end visibility of our services across our 4G mobile broadband network. With this solution, we will now be able to monitor and proactively optimize our service level performance, as well as take action on any issues we see."

Arun Bansal, President and Head of Ericsson Europe and Latin America, says: “Satisfied customers are loyal customers. Not only will Ericsson Expert Analytics enhance the customer experience and improve network quality for Swisscom, but it also paves the way for smoother entry to 5G, IoT and cloud services with the solution’s advanced capabilities. We will continue to provide Swisscom with the most advanced network technologies and support as they move rapidly toward commercial availability of the next generation of connectivity.”

Swisscom is a pioneer for 5G services with Ericsson as its strategic partner. The two companies have already achieved a number of significant milestones in making 5G a commercial reality, highlighted recently by Europe’s first end-to-end, multivendor 5G Non-Standalone (NSA) data call on 3.5 GHz band. Swisscom was also the first announced customer for Ericsson’s strengthened end-to-end mobile transport solutions.

 

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With field service becoming increasingly dependent on mobile computing and the IIoT the advent of 5G could be a significant boost to productivity in many ways so it was interesting to note that earlier this month Intel and Huawei announced that they have successfully completed 2.6GHz 5G NR Interoperability and Development Testing (IoDT) based on the 3GPP Release 15 global standard September version.

The IoDT test is the world's first 2.6GHz 5G interoperability test under SA network and is a key milestone towards accelerating the maturity of the 2.6GHz 5G NR ecosystem With Intel’s 5G Mobile Trial Platform (MTP) and Huawei's latest 5G NR (New Radio) base station supporting the 2.6GHz with 160MHz bandwidth, the two companies jointly completed the IoDT and successfully enabled the first call under SA network.

The successful completion of this IoDT test not only marks the end-to-end successful interoperability of 5G in the 2.6G band but also lays a foundation for large-scale commercial launch. It will promote the development and maturity of the 5G end-to-end industry in the 2.6G band.

In the future, Intel and Huawei will continue to carry out more test and commercial verification and promote the rapid maturity of the ecosystem, laying a solid foundation for the future 5G commercialization.

 

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Blockchain and its potential has been mooted in field service circles for years. Is it time we stop thinking big and instead build smaller use-cases before we lose sight of what’s actually important, the end-user? Mark Glover, Field Service News’ Deputy Editor finds out more.

In 2008, a person (or a group of people) known as Satoshi Nakamoto conceptualised the first blockchain. A year later, this digitised digital ledger was a critical accessory to the group’s (or his) headline act, the now ubiquitous cryptocurrency Bitcoin.

The impact of this decentralised digital currency on financial markets and a curious, confused society has been fascinating to follow. That the persona of the inventor or the inventors remains unknown adds to the plot.

Yet, without blockchain, the currency wouldn’t function. This smart ledger, driven by a peer-to-peer network has the potential to stamp itself on industry and in particular field service. But can the sector adopt the technology in a way that will ultimately benefit the end-user?

Firstly though, and apologies to all those who have a handle on the technology, what is blockchain? Scouring the internet for a simple definition is tricky, eventually, the excellent forward-thinking mission.com offered this: “Blockchain is the technology that underpins digital currency (Bitcoin, Litecoin, Ethereum and the like). The tech allows digital information to be distributed, but not copied. That means that each individual piece of data can only have one owner.”

 

"The tech allows digital information to be distributed, but not copied. That means that each individual piece of data can only have one owner..."

 

Straightforward enough. But let’s expand it to industry. How can it fit into the aerospace sector and specifically a plane engine? Parties involved include the airline, the engine manufacturer and the service company all of whom are squirting data into that asset’s blockchain.

The jet engine is a high-end valuable piece of equipment, the blockchain systems enable a single, irrefutable history of that asset. The linking of parties (blocks) removes the requirement for inter-party consultation before extracting required information meaning critical decisions can be made quicker and more effectively. It’s also secure and visible to everyone and accurate and trust, therefore, is enhanced around the chain. The benefits are tangible. So why aren’t all companies rushing to implement it?

“Like all emerging technologies there are only going to be one or two applications that are going to come up for this kind of thing in the very early days,” says Stephen Jeffs-Watts, Senior Advisor – Service Management at IFS. Stephen is an expert in blockchain, a keen enthusiast of its benefits but warns that fields service shouldn’t get too carried away just yet, particularly as sectors are only starting to dip their toes in the murky blockchain water.

 

"We have to try and bear in mind that it [blockchain] is also directly proportionate to the type of kit that’s been installed...“

 

A lot of the use cases that are coming up at the moment,” he tells me, “are in very high-value assets and very highly regulated supply chains; in aerospace, defence, nuclear and very-high-end medical applications,” he pauses. “There aren’t too many Phillips Medicals out there.”

In field service, blockchain technology can potentially trace parts, verify assets and look-up maintenance and operations history, but according to Stephen, it needs to bed-in with modern hardware before its benefits can be felt. “We have to try and bear in mind that it [blockchain] is also directly proportionate to the type of kit that’s been installed,” he warns, “Are you really going to use blockchain to authenticate the asset history or the maintenance and servicing history for a ten-year-old piece of equipment?” Another pause, “You’re not.”

Let’s go back to the jet engine blockchain analogy; the engine itself is a high-end piece of equipment.

The airlines and engine manufacturer, themselves are high-end companies:  BA, KLM, Lufthansa, Rolls Royce, GE, Northrup Grumann, for example. All are big companies keen to monetise blockchain, the only real way to do this is through data-ownership but in a high-asset blockchain, this isn’t always straightforward.

Who owns the data from a jet-engine? Is it the airlines?

The thrust from their plane goes through that engine and what about linking that to the pilot who’s flying that aircraft and jet engine through the air? That’s the airline’s data too. They also have a hand in the plane’s load: the number of passengers and baggage, fuel etc. That’s also data from the airline.

The engine itself? Rolls Royce might run it on a power-by-the-hour contract, so it’s their engine, so do they own the blockchain data? Like that other revolution IoT, blockchain becomes an issue of data ownership. What can be done to grease the chains to make the process run smoother?

“You’re going to have to get industries and supply chains to actually come together and solve the underlying data ownership issue,” Steve offers. “There is going to have to be some kind of consensus; an informal consensus through co-operation; the introduction of some kind of industry standard or ultimately an enforced consensus through legislative means,

Be it an Industry standard or a regulatory framework, large-scale blockchain implementation ultimately needs sectors to work together, to come together in agreement and as Steve explains, it also becomes an issue of trust. “Let’s say there are ten people involved in the supply chain: the operator, the Original Equipment Manufacturer (OEM), there may be a service operator; they’re all contributing data to that chain.

“But does the end operator actually have enough trust in the OEM to question if they are going to use their data and benchmark it against its competitors”, he ponders.

Issues around data-ownership, trust and unfit equipment unable to handle what is essentially a large-scale, shared google document are indicators that large-scale field-service blockchain implementation isn’t as close as we might think. Perhaps we are setting our sights too high? Maybe the use-cases should be carried out on a much smaller scale?

After all, cryptocurrency, the original thread of blockchain was designed for electronic financial transactions, not necessarily jet engines. Stephen agrees, referencing a well-known tracking device, he suggests we should keep things simple. “We could use blockchain like a glorified RFID tag that authenticates, verifies and gives you a reference point,” he says. “I can look at the blockchain and I can see who made it, when it was made, how it was transported.

“Where they may be just a couple of parameters about its last usage, you can look at that by a component-by-component type level, specifically in those cases where that kind of information is critical, or the authenticity is critical.

 

"There’s got to be a realistic level of ambition and some specific use-cases that prove the technology and prove the value of the technology before there comes any mainstream adoption..“

 

There’s got to be a realistic level of ambition and some specific use-cases that prove the technology and prove the value of the technology before there comes any mainstream adoption,” Stephen urges.

My conversation with Steve has been fascinating and his contribution to this article I’m sincerely grateful for. The insight he offered - most of which I’m unable to fit into this wordcount – was invaluable, yet despite all its potential of blockchain Stephen left me with a thought that goes beyond the blockchain hype: “So what?”

So what if an asset is pumping with blockchain data? All the customer wants is the device to start working again so they can get on with their business.

“What value does that bring to me as a customer,” argues Steve. “unless I’m in a highly regulated environment. When do you start loading up past-maintenance history? Is it good? Is it worthwhile? Probably not. So what’s the use-case that going to give killer value?

Steve continues from the end user's perspective: “Great, you’ve got blockchain. What do I get from you having blockchain? What do I get from being able to prove every last working second of this particular piece of kit? Why should I care?”

It’s an excellent point that perhaps gets lost in this fourth industrial revolution we find ourselves in. Among AI, and IoT and machine learning and blockchain should we not just focus on the customer needs and their requirements? Or will we continue to pursue the hype?

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