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Another Digital Manufacturing Domino Falls

by Rick Franzosa  |  February 28, 2019  |  4 Comments

Today’s announcement “ABB and Dassault Systèmes enter global software partnership for digital industries” is the latest domino to fall in the enterprise digital manufacturing world, roughly 9 months after Rockwell Automation’s investment in PTC.  There is a lot to unpack here, but on the surface we are now looking at three enterprise level vendor solutions encompassing the digital thread from ideation through production (and possibly lifecycle support), with Dassault Systèmes/ABB, Rockwell Automation/PTC and Siemens Industrial Automation/PLM.   Assuming these mega-partnerships actually work out, this represents an interesting new set of choices, especially for continuous process manufacturing industries, which represent the majority of manufacturing operations (as measured by MES/MOM software and services revenue).

This news also raises a number of questions for  process manufacturing digital manufacturing offerings, as well as specific questions for Dassault Systèmes and  ABB.

  • All three vendors must admit that their offerings in process PLM pale in comparison the their decades of offerings and expertise in discrete manufacturing PLM.  What is the plan for new, robust offerings in process PLM,
  • Where will the subject matter expertise come from for new offerings in new markets?  Success in discrete manufacturing does not automatically translate into success in process manufacturing, and there’s plenty of evidence to that effect.
  • Specifically with Dassault/ABB, does this mean the end of Dassault DELMIA Apriso MES in continuous process manufacturing, as ABB has been there and done that for a very long time?
  • Does the Dassault/ABB team have there sights set on process manufacturing in general or is this strictly for mining applications as stated in the release?
  • Does this represent a new dawn in the end-to-end PLM/manufacturing space, or the next to last gasp of monolithic enterprise systems in the face of the coming disruption from open-source alternatives built on IIoT platforms?

Here is my take on the winners and losers:

Winners:

  • Enterprise manufacturers in the process manufacturing space, who now have multiple alternatives for end-to-end engineering and manufacturing solutions for digital manufacturing
  • The vendors mentioned above, who get both larger and more diverse.
  • The implementation provider/systems integrator ecosystem tasked with delivery of these solutions.

Losers:

  • Enterprise ERP vendors that will see their role diminished as the three above continue to add both industrial domains and additional technologies to their portfolios
  • Industry specific niche vendors in MES, APM, engineering & construction, who will struggle to compete.
  • The wallets of enterprise manufacturers.  If history is any indicator, these end-to-end solutions will be priced at the Lamborghini level.

Bottom line, this is very interesting and exciting news.  Partnerships and consolidations in this space are a recognition that enterprise vendors recognize the need for and the value of digital manufacturing.

So, who/what is the next domino?

 

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Category: business-value  digital-manufacturing  erp  iiot  industrial-internet-of-things  mes  mom  plm  

Tags: digital-manufacturing  manufacturing-process-management  mes  model-based-manufacturing  plm  smart-manufacturing  

Rick Franzosa
Research Director
4 years at Gartner
32 years IT Industry

Rick works with vice presidents and directors of manufacturing, business process experts and leaders of Operational Excellence and Continuous Improvement, and enterprise architecture and IT roles supporting manufacturing operations. He also works with providers of technologies and services for manufacturing operations. Read Full Bio


Thoughts on Another Digital Manufacturing Domino Falls


  1. Rick Bullotta says:

    Aveva/Wonderware is a really, really interesting wildcard in this equation. Unlike ABB, GE, Rockwell, etc.. – they don’t sell any control hardware. If I was a customer, I’d be biased towards a vendor that could integrate all of my “stuff” and cover a broad swath of my processes (continuous, discrete, batch, hybrid, etc)

    • Swarandeep Singh says:

      Integrating software is very different from integrating hardware. ABB has struggled in the past with such acquisitions (remember Skyva !) and partnerships (more recently Ventyx). The market just creates a big hype around the announcement, including Gartner, and no one really follows what happens next.

      • Rick Franzosa says:

        I agree with most of your comment, but as far as Gartner following up what happens next? I wouldn’t worry about it, it’s my job

  2. Nikhil Joshi says:

    Rick, Aveva / wonders are is already part of Schneider Electric. My understanding is that the way Dassauly has Quintiq, you will see Siemens, Rockwell And others looking to acquire supply chain planning companies. This is really the missing link today in digital manufacturing of manufacturing has to embrace predictive analytics.



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