Engineers on the business side

We have been harping on this topic in InTech for years, but it is so important it needs mentioning again.
For engineers to succeed in today’s work environment, they have to learn about the business side of their profession.
They can’t just get by on their pure engineering expertise alone anymore. Surely that is the baseline, but they need to know so much more.
More engineers seem to be getting that concept as most of the executive forums at this week's ABB Automation World Conference and Exhibition in Orlando, Fla., are usually full.
Late Tuesday afternoon ABB Chief Executive Fred Kindle moderated a lively discussion on global business issues were he outlined what he thought were some of the drivers behind the industry today and what may occur in years to come.
“Planning for the future is more difficult than ever. Even planning two years out is difficult,” he said.
Who could account for China’s and India’s growth? Who can predict isolated incidents such at 9/11, SARS, Katrina, the bird flu, and Iraq? He asked.
But ABB’s executive forum just didn’t stop with Kindle’s discussion.
On Wednesday, more business related topics were front and center. Leveraging technologies to gain productivity advantages, showing true collaboration between end users and suppliers, and how safety impacts a company’s profitability.
Sessions like these can really give an engineer a crash course in the entire business dynamic going on at a plant.
On the safety front, James Porter, vice president and chief engineer for DuPont’s Engineering and Operations, said “simply put, safety is good business.”
“The cost of safety is a hidden one with estimates coming in at $100 billion last year,” he said. He added that number is just the tip of the iceberg.
Darryl Hill, ABB’s safety and health officer, said he had statistics to show for a company to make up for one back injury claim that comes in at $50,000, they will have to increase revenues by $2.5 million.

ABB: Collaboration key to success

For manufacturers to continue to growth in an incredibly competitive marketplace, it’s all about collaboration, said keynoters at ABB Automation World Conference and Exhibition in Orlando, Fla.
“We can’t continue doing the same thing, we have to be able to take advantage of technology,” said Mark Taft, group vice president process automation for ABB’s Global Control System Business as he kicked off the day’s festivities.
“Collaboration is a necessity for today. A necessity for the future,” said Fred Kindle, president and chief executive of ABB before a record attendance of just over 2,500.
He pointed to the good news and the bad news for the industry. First, the bad news. “The competitive nature of the industry is sure to increase in the coming years. One reason is globalization.” He pointed to other trends. “Industry consolidation is another reason. Capital efficiency is a third reason. Today, the hedge fund industry is about $1.3 trillion. The message is clear, if you can generate returns you will control your destiny.”
But enough of the bad news, now the good news. Globalization increases competition, but “the world is full of opportunities,” Kindle said. China and India are growth opportunities, he said, but so are Russia, Vietnam, Pakistan, and Indonesia. “The question you have to ask is how are you going to exploit these opportunities?”
Manufacturers cannot take advantage of those opportunities unless they have partners; in most cases, they can’t go it alone.
“The new trend is not only on transactions, it is on interaction,” Kindle said.
One of the areas manufacturers have to get ahead in today’s evolving landscape is to innovate. The challenge, though, is innovation is different today than it was a decade ago, said Nicholas Donofrio, executive vice president of innovation and technology at IBM.
“Technology itself is not the only condition for success,” Donofrio said. “It is how you use it.”
In terms of innovation, Donofrio said he is often asked what will be the next big innovation. “There is no one ‘next big thing,’ ” he said. “There will be thousands of ‘next big things.’ “
Alcan’s Vice President of Technology, Engineering and Regional Industrial Development for the Primary Metal Group, Donald Macmillan, echoed the theme of the day saying, his company could not grow without the knowledge of its partners.
“We can’t do it alone,” Macmillan said. “We need partners to enhance the value proposition.”

On-line tool to help secure control systems

A web-based tool launched at the Process Control Systems Forum (PCSF) in Atlanta Tuesday will allow for collaboration in security control systems in the energy sector.
The tool, called the Interactive Energy Roadmap or ieRoadmap offers a list of the most current projects throughout the energy control system area.
“The entire energy control systems community can now use this searchable, on-line tool to view and post key activities within the strategic framework of the Roadmap,” said Hank Kenchington, manger of control systems and security activities at the Office of Electricity Delivery and Energy Reliability at the U.S. Department of Energy. “By matching current activities to priority needs, this tool will enable the energy sector to measure its progress in meeting its defined goals and milestones.”
“This tool will make it easier to spot gaps in coverage and identify opportunities for leveraging resources through partnerships,” said Mike Torppey, PCSF technical manager.
For more information on the tool, go to www.pcsforum.org/roadmap.

Security here, but threats continue

Four or five years ago, the idea security in the industry was a new and different thing. Today in Atlanta, that idea is no longer new and different. That is because the Process Control Systems Forum (PCSF) is meeting to a packed room talking about key areas in the control systems security environment.
Michael Torppey, technical manager for PCSF and senior principal at Noblis, talked about how the conference has grown over the past few years. He said they have just under 200 people registered to attend the event. That is quite a larger turnout from previous years, he said.
“We have done well, but we still have a lot more room to cover,” Torppey said.
Keynote speaker Bruce Landis, U.S. Department of Homeland Security assistant secretary for cyber security and telecommunications, talked about how to the needs for the future.
“We all use tools in our work and process control systems are tools,” he said. “I can use your tools and make them do what I want. Risk is a function of threat, vulnerabilities and consequences. If any of them get to zero, then you are OK.”
The problem is, though, the people attempting to get into systems are very well equipped.
“We face real dangers from sophisticated, intelligent adversaries,” Landis said.