CEO's Guide to Smart Manufacturing 2015

CEO’S GUIDE TO SMART MANUFACTURING BONUS 11-PAGE VENDOR DIRECTORY INSIDE

Second Annual Manufacturing Supplement

FEATURES

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The Great Industrial Disruption

The Drive to Digitize Manufacturing

3D technology is poised to revolutionize conventional manufacturing.

Can the Digital Manufacturing and Design Innovation Institute deliver on its promise?

By Rick Smith

By Dale Buss

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Reinventing American Manufacturing

Directory

Takeaways from informal “solution exchange” discussions at Chief Executive’s recent Smart Manufacturing Summit.

A resource guide to companies that serve the manufacturing industry.

CEO’S GUIDE TO SMART MANUFACTURING

September/October 2015

C O V E R P H O T O G R A P H S , C LO C K W I S E F R O M T O P L E F T : C O U R T E S Y O F S I E M E N S , R O C K W E L L A U T O M AT I O N , C I S C O , S T R ATA S Y S

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The Power of the Network Effect Allow your team to benefit from the experience of peer senior executives with comparable roles and responsibilities at noncompetitive companies. Let your them find solutions in Senior Executive Network (SEN) group sessions designed to explore issues and clarify options and actions steps, including: • Benchmarks for projects and outcomes • Clarifying what’s working (and what’s not) • Developing individual skills, and management methods, learning from shared experience Imagine a more effective and motivated team with enhanced skills and new relationships, focused on driving your bottom line.

We have networks for the following key executives in your company: • Finance • Operations • Marketing • Controllers • Sales • Product Development • Engineering & Technology

Candidates must be nominated and sponsored by their CEO and/or President.

Tap into the Power of the Network Effect >> Visit www.SrExec.com Or call Rob Grabill at: 785-832-0303

3D PRINTING

companies in the world are already dedicating substantial resources toward a historic shift away from conventional manufacturing. The coming era of additive manufacturing is not a question of if, but when.

Additive manufacturing is poised to disrupt conventional manufacturing. By Rick Smith REMEMBER THE INDUSTRIAL REVOLUTION? Industrial 3D printing will be bigger. That may seem like a bold statement—especially at a time when many people already think that 3D printing is over-hyped. However, facts support the assertion.

Consider that there now exists a single technology from which almost everything can be produced. In the near future, people will be able to simply print out objects on demand—at home and in factories. Parts and products will no longer need to be mass produced in China or other far away countries and then stored for years in warehouses. They can be produced close to the end consumer exactly when they are needed. Manufacturing will once again flourish in America and 4

CEO’S GUIDE TO SMART MANUFACTURING

Europe, and also in Africa, Costa Rica and Greenland. Waste from production and supply chains—both in materials, water and fuel—will be reduced by up to 50 percent. Mass consumer products will be made one at a time, customized for individuals, millions of times over.

In the last few months, my colleague Mitch Free and I have spoken with more than a dozen Fortune 500 CEOs about 3D printing, also referred to as “additive manufacturing.” The response has been shocking. Not only was every single executive we spoke with excited about the potential for additive manufacturing, but each one pointed us to a senior executive charged with managing the monumental transition to this emerging technology. In other words, the largest September/October 2015

THIS CHANGES… EVERYTHING Truth be told, manufacturing hasn’t experienced a global paradigm shift since Henry Ford ushered in the world of modern production, pumping out Model-Ts at a price that almost any working person could afford by pushing scale and standardization to unprecedented levels. This model of conventional manufacturing is now pervasive in almost every aspect of modern life. Hierarchies, companies, industries, even governments have all been built around this simple principal of production.

3D printing is now poised to change it all.

With additive manufacturing there are no design limitations, what some refer to as a “complexity tax.” You can produce a seamless ball with a hollow core or drill the proverbial “curved hole.” Since each object can be made individually, additive manufacturing enables limitless customization—both in product and production location— which makes scale industrial production look restrictive and grey. These and other advantages are leading some experts to predict that industrial 3D printing may reduce average unit production costs by an astounding 25 percent,

while reducing barriers to entry by up to 90 percent. Rarely has a technology generated so much promise—and such a threat—as 3D printing.

Cost Per Unit

SO WHY HASN’T ANYTHING CHANGED YET? As with most new technologies, the quality of 3D printed objects was initially low, while the costs per unit were much higher than with conventional production. From 1990 to 2000, the quality of the printers increased, the costs decreased and, for the first time, the application of 3D printing in industry became feasible.

Since then, 3D printing has been used primarily for rapid prototyping, a process that allows designers or engineers to quickly create a physical representation of the object they are designing. The market for 3D printing used for rapid prototyping has grown quickly to $1 billion in the U.S. alone.

Additive manufacturing prom-

ises freedom from the constraints of conventional manufacturing but—until recently—it has not been a cost-effective alternative for anything other than prototyping. However, history tells us that world-changing technologies often take time to develop. In 1811, trains were overweight, smelly novelties that often exploded; 30 years later they had remade the UK—and made their companies fantastically rich. Additive manufacturing is now poised for a similar leap. For the first time, 3D printing is now a viable alternative for certain areas of conventional manufacturing.

As time passes, improvements in quality and reductions in cost will accelerate. Industrial 3D printers are already producing thermoplastic parts with characteristics and tolerances comparable to conventional manufacturing. Companies across a range of industries have begun experimenting with this technology

THE INDUSTRIAL DISRUPTION

Scale & Standardization Additive Manufacturing

Conventional Manufacturing

for small production runs, such as for spare parts, rapid iteration and customization. Meanwhile, revenues from the production of end-use parts have quietly grown from three percent in 2003 to more than 35 percent of the entire market for additive manufacturing services in 2013. Over the next several decades, more and more of the conventional manufacturing value chain will become vulnerable to the superior design flexibility, customization and logistics available through 3D printing. Businesses will be created and destroyed by the thousands.

The implications of this great shift will be measured in the trillions of dollars. For example: ■ Products never before imagined will be created and personally customized.

■ Inventory and warehousing will be replaced by just-in-time production.

■ Replacement parts will be stored digitally in the “iTunes of Things,” where consumers can look up and print at home nearly any object on demand.

■ The global supply chain will be fundamentally different.

Industrial 3D printing is quickly ushering in a historic disruption in global manufacturing. How will your company be impacted? How will your operations and supply chain be re-crafted? What opportunities and threats will emerge that impact your customers?

Will you be the windshield, or the bug?

September/October 2015

CHIEFEXECUTIVE.NET

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INNOVATION

The Drive to Digitize Manufacturing

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Can the Digital Manufacturing and Design Innovation Institute deliver on its promise to bring digital innovations to manufacturers large and small? By Dale Buss DIGITIZATION IS KEY to the future success of American manufacturing—which is why dozens of major manufacturers and the federal government backed the creation of the $320-million Digital Manufacturing and Design Innovation Institute (DMDII) on Goose Island in the Chicago River. Now the Obama administration and some of the icons of American manufacturing—including GE, John Deere, Procter & Gamble, Caterpillar, Lockheed Martin and Boeing—want to see DMDII over the next five years synergize the digital acumen of U.S. fabricators into the sort of determinative global advantage in manufacturing that domestic firms enjoy in software.

“Digital is how the U.S. wins in manufacturing,” says William King, chief technology officer of DMDII, the organization led by the University of Illinois that launched in 2014 with $70 million in funding from the Depart-

Driving Digital Manufacturing The DMDII aims to help mid-market enterprises harness the power of digitization

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for Manufacturing Innovation, also including outfits devoted to lightweight manufacturing materials and to electronics manufacturing with “next-generation” power. But DMDII’s mission might be the most critical because of how digitization is rapidly redefining manufacturing prowess.

In fact, digitization is unfolding as “the fourth major upheaval in modern manufacturing,” McKinsey consultants recently concluded, following the lean revolution of the 1970s, the outsourcing phenomenon of the 1990s, and the automation that took off in the 2000s.

In its effort to lead what McKinsey calls “Industry 4.0,” the U.S. “is certainly not ahead,” the institute’s King maintains. There are “pockets of excellence,” he notes—such as GE’s Brilliant Factory concept, Boeing’s complete digitization of aircraft design and the way that engine companies such as Pratt & Whitney track parts

KEY TAKEAWAYS

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ment of Defense and $250 million in corporate commitments, and just opened its doors in the spring. “The whole world looks to the U.S. for digital innovation, [and] digital is a really good fit for the American way of doing things, for our business and culture and education system. As manufacturing becomes much more of an information industry, we’re really poised to win because of the things that have helped America to win at digital in other industries.”

David Pivonka, chief scientist for electronics and software at Illinois Tool Works, agrees that DMDII’s work “will significantly affect the way products are designed and manufactured here in the U.S. These changes will help U.S. manufacturing gain a competitive edge.”

DMDII is one of just six public-private partnerships launched over the last couple of years under the Obama Administration’s National Network

CEO’S GUIDE TO SMART MANUFACTURING

Pilot Projects Test Initiatives Two dozen pilot programs will test new methods and concepts in the Midwest

September/October 2015

Creating a Common Thread Creating a “digital manufacturing commons” lets all participants in a manufacturing supply chain collaborate with maximum transparency and efficiency

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through the entire life cycle of their products–but similar outcroppings of sublime digitization of manufacturing are evident around the world. America is already behind in some areas, he argues, including the extent to which small- and mid-sized manufacturers are digitized in Germany.

Backers’ dream is that the “nodes” of the National Network for Manufacturing Innovation duplicate the success of Sematech a quarter-century ago. Formed in 1988, the Semiconductor Manufacturing Technology consortium successfully organized leaders in semiconductor tech, such as Intel and Texas Instruments, to help the U.S. memory-chip economy regain its competitive edge by cutting manufacturing costs and product defects.

A similar outcome for DMDII, King said, “would be awesome.”

Even in its very inception, some participants argue, the DMDII already accomplished much. The institute executed the “tall order” of “bringing together a really credible mix of public and private partnerships” to act on the digital-manufacturing challenge, says Tolga Kurtoglu, vice president and director of the system-sciences lab for the Palo Alto Research Center (PARC), an advanced-research outfit owned by Xerox. The new organiza-

tion is aiming at the right sweet spot for accelerating factory digitization, he says: bridging the “valley of death” where early-stage and risky ideas go to die for lack of a guaranteed return on investment.

With about 30 staffers on site and as many as another 50 on the way to its 94,000-square-foot facility, the institute has already been disbursing a total of about $50 million in awards to a few dozen pilot projects that will unfold over the next two years, not only at Goose Island but all over the Midwest, mostly at clusters consisting of a manufacturing OEM, a university, a software company and some mid-market suppliers. Many teams will be competing with one another to come up with the best solutions for a given challenge.

There’s a lot of work ahead to make America an undisputed No. 1 in digital manufacturing. U.S. universities and research institutes are considered the best in the world at creating knowledge. American manufacturers also have become astute at generating mind-boggling quantities of data— more than any other part of the economy, actually—about their operations, products and other measurables, from the first concept entered into a 3D computer model to information about

how long a product sits on a store shelf. What’s more, the U.S. retains the best system of commercialization and taking things to market.

But in crossing the “valley of death,” American manufacturing has much to learn from others. In Germany, for example, the Fraunhofer Society does research for both the public and private sectors, examining early-stage ideas, determining if they can be affordably scaled up and then readying the best ones nearly to the point of commercial launch. There are 67 locations spread throughout Germany, each focusing on different fields, from an applied polymer research facility in Potsdam to a laser-technology redoubt in Aachen.

DMDII wants to accomplish something similar for digitization of manufacturing in America, but there are three obstacles. The first is that manufacturing today remains largely a “pencil-and-paper industry” outside of the very biggest companies, King says. The second is that designers and “makers” continue to be separated, in part because of inefficient structural legacies and also partly because U.S. manufacturers have outsourced and offshored so much engineering and production. The third challenge in the U.S. is an acute shortage of workers

DMDII: For the Common Good systems engineering lab at GE Global Research.

Or, as another GE Global Research executive, Christine Furstoss, said at a conference in Detroit, the commons is “like massive multi-player online gaming meeting the real world of manufacturing.”

William King, chief technology officer of the institute, says that the idea of the web-based “community” is to “give people a place where they can put the data and a way to have digital collaboration across the life cycle of a product.

“So we’re looking for tech-savvy manufacturing leaders to come and participate as alpha customers,” he says. “And it won’t cost you anything.”

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Software writers and even video-game players long have been able to collaborate on “open-source” web platforms that have made their digital products better, and more thoroughly vetted, more quickly. Now one of the first pilot projects of the Digital Manufacturing & Design Innovation Institute—a “digital manufacturing commons”—aims at helping American manufacturers do something similar.

GE is leading the pilot that will build a “digital thread” on an open-source platform that GE scientists demonstrated a few years ago and “truly will democratize access to the tools of manufacturing innovation for companies, universities, institutes and entrepreneurs big and small,” says Joseph Salvo, manager of the complex

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INNOVATION

Developing Digital Threads TWO EXAMPLES—one surprising, the other probably not so—illustrate what digital-manufacturing advocates mean when they talk about how “digital threads” can revolutionize American manufacturing.

Coca-Cola’s “Share a Coke” promotion is actually a perfect example. Launched in 2014, under this campaign Coke printed individual names on its 20-ounce bottles, from “Erin” to “John,” as well as other bonding monikers such as “family.” Sales took off, giving the brand its first significant volume bump in years. So Atlanta-based beverage giant Coca-Cola expanded the program this year to thousands more names.

What does that have to do with manufacturing? “This is an innovation that came from Coke’s manufacturing people and moved the needle,” explained William King, chief technology officer for the DMDII. “They needed to have digital capabilities, agility, robotics and all kinds of information technology to make that kind of mass customization happen.”

A more typical example of the magic of the digital thread comes from Local Motors. Earlier this year, this Phoenix-based startup demonstrated live 3D printing of the polymer body of a working car prototype, based entirely on a digital blueprint, to rapt audiences ranging from President Obama to journalists at the North American International Auto Show in Detroit.

Local Motors’ designs “are crowdsourced from an online community,” McKinsey consultants noted recently. It “can build a new model from scratch in a year, far [shorter] than the industry average of six years.”

who are skilled and capable enough to work in today’s advanced-manufacturing environment.

Digitization can help solve each of these problems to varying but great degrees, King says, which is the raison d’étre for DMDII. In fact, the institute calculated that a digital revolution

could create almost $500 billion a year in total value among only the 41 companies that are funding the institute—and they’re among the most digitally savvy manufacturers in the world. Such gains would come from accelerating R&D, improving production operations and many other areas.

BY THE NUMBERS U.S. manufacturing executives have a keen sense of the importance of digitizing their enterprises—and also of how far most of them have to go—according to a survey of 180 of them by the Digital Manufacturing & Design Innovation Institute. Here's what they said:

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80% 61%

SAID THAT DIGITAL OPERATIONS ARE "A CRITICAL DRIVER OF EVERY ORGANIZATION'S MANUFACTURING COMPETITIVENESS"

SAID DIGITAL IS “A SENIOR LEADERSHIP PRIORITY”

37%

13%

SAID THEIR ORGANIZATION HAS “A STRATEGY FOR HOW DIGITAL MANUFACTURING WILL ENABLE COMPETITION”

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CEO’S GUIDE TO SMART MANUFACTURING

SAID THEIR ORGANIZATION HAS “DIGITAL MANUFACTURING CAPABILITY TODAY”

September/October 2015

“This is a staggering opportunity,” King says.

To take advantage, the institute’s overarching goal is to create a “digital thread” of data that is generated across the lifecycle of a manufactured product, enabling a seamless flow of information among all functions and members of a supply chain. The organization of the Goose Island facility itself illustrates this objective, including a “collaboration space” to stage teamwork and a technology-demonstration facility stocked with robots, 3D printers and other digital equipment.

Three of DMDII’s first pilots also point to this approach. One is testing how to aggregate images of products and processes that are generated by “wearable” computers donned by factory-floor workers, learn from the results and use them to train the workforce. A second project feeds data from factory sensors into “visualization tools” that can be analyzed for improvements at each level of an operation, from individual worker to plant manager. A third pilot is creating an open-source software project called a “manufacturing commons” in a project led by General Electric (see sidebar, p. 7).

Like Fairfield, Connecticut-based GE, other supporting companies are

INNOVATION

be able to help it harness intelligent machines and advanced analytics to “open new opportunities across our businesses,” Pivonka says. Its participation helps put Norwalk, Connecticut-based Xerox “on the cusp of significant disruption and the tectonic shift brought by digitization,” said PARC’s Kurtoglu.

This is the kind of enthusiasm about DMDII that will be crucial to

buzzing around DMDII expectantly.

Aurora, Illinois-based Illinois Tool Works, for instance, is particularly interested in how the institute might

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Mid-Size Makeover

BIG MANUFACTURERS and the federal government are the founding forces behind the Digital Manufacturing and Design Innovation Institute (DMDII), but mid-market companies are its future. That’s how institute principals view things, anyway.

“We really want to get a lot of small and medium-sized businesses involved,” says William King, chief technology officer of the DMDII. “That’s really where we’re going to move the needle. That’s where the job creation is going to be. That’s where the wealth creation is going to be, more than in the biggest manufacturing OEMs.” Some mid-market companies already know how they want the institute to help them. AskPower, for instance, is an Aurora, Illinois-based maker of terminal lugs, electrical splices and other fasteners and connectors for the booming telecommunications-infrastructure industry and other verticals, with sales of tens of millions of dollars a year.

CEO Steve Kase believes it may be existential for suppliers like AskPower to leverage DMDII’s help in tapping into the “digital thread” within their customers’ supply chains. “The same kinds of consolidation that we have seen at the top of the [telecom] market, where there used to be 15 competitors and now there are just two or three, now is also happening at the component level of small and medium-sized manufacturers,” Kase says. Buttressing these suppliers “is totally critical, because it’s one thing to have the front end of the supply chain—the major manufacturers like GE—geeked up for digital manufacturing, but what if there are no suppliers to play with them?”

Specifically, AskPower wants DMDII’s guidance in bolstering the company’s digital chops in both product development and process improvements in designing, costing, manufacturing and replicating its components—and ensuring that in every step along the way AskPower is as completely integrated as possible with customers’ digital environments.

“One area is: How can we connect our products to the customers’ assembly process and demonstrate that simulation, because normally our simulation is about how we make the part?” Kase says.

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success in its mission of creating a digital thread that easily connects manufacturers, big to small, across the supply chain. “It’s about advanced technologies and rapid innovation, and how do we get these digital tools in the hands of lots of people,” King says, “so that American manufacturing looks a lot more like the way the software industry has been democratized over the last decade.”

CEO’S GUIDE TO SMART MANUFACTURING

September/October 2015

AskPower has been investing heavily in capabilities to simulate the final assemblies of its customers in three dimensions so that its own product designers understand exactly how the company’s components are expected to fit and perform in concert with everything else. If the final product is a grounding cable for a telecom-transmission tower, for example, AskPower understands “the cable [the customer is] using, the lightning-protection aspects of the tower, the electronics they’re trying to preserve at the bottom of the tower and what the installation process is on the tower,” Kase explains. “What we want to be able to do is simulate for our customer how our product will fit into its system. That’s something [DMDII] will help us with.”

In the process arena, AskPower is looking to the institute to help it link the company’s computer-aided design capabilities more effectively with its computer-aided manufacturing capabilities by ensuring that the supplier is in complete digital synchronization with what customers require.

“We want to understand where our product fits into their system, design it in their system, test it for manufacturability and run it through a simulation on manufacturing software,” Kase explains. “We also want to be able to template our materials and processes to come up with a digital cross-lead system that enables us to quote with confidence.”

DMDII’s King said that AskPower’s notions of how the institute can help the company are right on point. Unfortunately, he says, the numbers of mid-market manufacturers that don’t address or don’t even recognize their digital predicament are legion.

“If you dig into the companies that are in the ecosystems of the big manufacturers, they are smaller outfits with fewer digital experts, and the ones they do have will be focused on day-to-day, tactical kinds of things—and probably not keeping up with the latest digital technology,” King says. “So as we’re putting together our portfolio of pilot projects, we’re doing our best to include both big OEMs and mid-size and small manufacturers because the links between them is where the value is created in the manufacturing-value chain.”

SMART MANUFACTURING SUMMIT

REINVENTING AMERICAN MANUFACTURING RECRUITING TECHNICAL TALENT A DEARTH OF experienced technical employees has increasingly been an issue for manufacturing companies, agreed CEOs participating in this session sponsored

by Lincoln Educational Services Corporation and Lincoln College of Technology.

Business leaders developed these best practices for finding and developing technical talent.

To Fill The Talent Gap… Leveraging the Internet of Things, harnessing technology to boost customer demand and recruiting technical talent are among the challenges manufacturing companies face in leading a U.S. Manufacturing Renaissance. Chief Executive’s recent Smart Manufacturing Summit featured informal “solution exchange” discussions where CEO participants shared insights and learnings on these critical challenges. Here we present the key takeaways from those discussions.

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September/October 2015

1. When challenged to find talent trained to use automation, controls and robotics, recruit candidates with technical/mechanical aptitude and train them, either in-house or through external programs.

2. Consider targeting early

retirement engineers—or those 55-plus years of age). They have valuable experience, may be willing to mentor young talent and often want to stay engaged in working.

To Engage Millennials...

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Millennials are often unrealistic about how quickly they can advance. Challenge this generation with new responsibilities, changing responsibilities and new projects to keep them engaged.

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Millennials welcome mentoring and are avid users of social media. Assign an existing employee to each new hire. Have the new and veteran employees connect on Facebook, Twitter and LinkedIn. Provide new hires with close support during their first few months. One firm reported that having HR organize outings for new hires and their mentors at the expense of the company for 18 months helped strengthen the bond. The investment in building the social/psychological contract with each new employee built loyalty and forged friendships.

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Convince future prospective workers that a career in manufacturing is interesting, well-paying

work by using your facility as a showplace in the local community to build awareness of your company, your culture and your career offering. Dispel the image of the dark and dingy factory environment.

4.

Be clear about your culture, your work environment, the career path and the expected timing for career advancement.

When Millennials feel that a work environment and career path have been misrepresented, they are more likely to leave.

5.

Use the allure of high-tech manufacturing tools, such as 3D/ additive manufacturing, to boost interest in engineering and technical training. Provide recognition and perks and pay attention to quality of life to improve retention.

On Working With Local Schools and Universities‌

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Provide in-school information sessions and internships, sponsor robotics teams, etc.

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Note that internships are a long-term investment not likely to yield college grad hires in the first few years. Make your internship experiences enriching and positive if you hope that candidates will return after graduation.

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Create an attractive employment/career path package (job titles, skills, tuition reimburse-

ment, etc.) and communicate this program to high school students.

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Work with schools to encourage them to incorporate specific skills and training into their curriculum. Offer to enhance these programs with real-world training on equipment, software and information systems.

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Expect to invest in institutions before you can expect them to “let you in� to influence their training programs and have access to their students.

September/October 2015

CHIEFEXECUTIVE.NET

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SMS

HARNESSING TECHNOLOGY TO INCREASE CUSTOMER DEMAND A KEY DRIVER for executives looking to leverage technologies includes business case development, agreed CEOs participating in this session sponsored by eLogic and Vertical Solutions. Business leaders developed these steps to effective use of technology:

1.

Start by identifying a significant pain point. Then put a small pilot together with a passionate leader and group to address it.

Use iterative steps until success is replicated.

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Engaging customers throughout the entire life cycle from lead to sales/service is increasingly important to manufacturing CEOs. Couple this with leveraging IoT and CRM data to anticipate equipment service needs, promote proactive service campaigns, and provide additional feedback to customers/ suppliers on equipment performance.

3.

When adopting CRM, it’s important to have seamless database and transaction capability affiliated with ERP systems. These are available through various technology enablers to generate a “single truth.”

4. Collecting sensor and usage

data to anticipate and promote customers’ equipment service, parts and upgrade needs can result in dramatic cost/performance improvements. It also makes these applications accessible for most discrete manufacturers.

5.

Leverage machine feedback and machine learning to improve the performance of processes and equipment to increase the customer experience. These same technologies enable internal monitoring, measuring and data-driven improvements.

6. Mine data to develop further intelligence on product perfor14

CEO’S GUIDE TO SMART MANUFACTURING

September/October 2015

mance and improvement opportunities, identify trends and provide feedback for innovation and product development.

7.

When charging customers based upon risk sharing and improved output, beware the amount of data that will be needed to manipulate and be sure you have that capacity.

8.

Be sure to develop a complete business case so you can monitor results.

9.

Finally, watch the market closely, as changes can affect the success of this type of charging philosophy.

10.

Companies should streamline the data they provide to customers that use their website with software that pulls data from other sites and agglomerates it, rather than requiring customers to do that.

SMS

USING THE INTERNET OF THINGS FOR SMALL MANUFACTURING WITH ALL OF THE BUZZ being generated around the Internet of Things (IoT), it’s easy to get caught up in IoT fervor, agreed CEOs participating in this sessions sponsored by Cisco Systems. They identified these steps to leverage interconnectivity effectively:

1.

Don’t just connect things— be intentional.

Your IoT strategy should be all about increasing revenue, decreasing costs and making people safer.

2. The CEO should spearhead

a workshop with operations and IT to: • Identify the biggest challenge/pain point/process breakdowns.

• Identify a killer use and build the business case around it.

• Identify the current process being used and metrics.

• Design and launch a pilot.

• Have a strategy to build out that first backbone for future growth.

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CEO’S GUIDE TO SMART MANUFACTURING

3. These basics must be

addressed: • Use an Ethernet IP to enable wireless IoT. • Enable devices to get to your cloud without going through lots of walls.

• IoT should be used to increase the visibility and quality of your data • Maintain a secure environment.

• Determine who needs access and how to make the data readable.

September/October 2015

• •

4.

Managing cultural change.

Agreeing on protocols between suppliers and customers.

Start with common processes that can be improved, such as: • Tracking inventory.

• Optimizing your production process.

• Decreasing downtime by predicting maintenance and repair needs.

Chief Executive’s

2015 CEO Talent Summit September 30-October 1 • Dallas, TX Hosted by Southwest Airlines

Solutions for Your Growing Talent Gap The Impending Talent Crisis Building a Performance and Recognition Culture Retaining Your Top Talent Developing Leaders In a Rapidly Complex and Changing World How Data and Analytics Will Reshape Your Workforce

CEOTALENT.CHIEFEXECUTIVE.NET

2015 CEO Talent Summit copy.indd 7

8/26/15 5:24 PM

2015 MANUFACTURING BUYER’S GUIDE PAGE 19 3D PRINTING

PAGE 19 ACCOUNTING

PAGE 20 AUTOMATION

PAGE 22 COMMERCIAL/ INVESTMENT BANKING

PAGE 29 CONSULTING

PAGE 23 CYBERSECURITY

PAGE 23 DATA ANALYTICS

PAGE 25 EDUCATION/ TRAINING

PAGE 25 ERP

PAGE 26 RISK MANAGEMENT/ INSURANCE

PAGE 27 TALENT/ RECRUITMENT

PAGE 27 TRANSPORTATION/ LOGISTICS

3D PRINTING 3D SYSTEMS Rock Hill, South Carolina 3dsystems.com 800-793-3669 Provides 3D digital design and fabrication solutions to small and midsize aerospace/defense, energy and automotive firms. Customers include original equipment manufacturers, government agencies, universities, independent service bureaus and consumers.

AUTODESK San Rafael, California autodesk.com / 415-507-5000 Provides 3D design, engineering and entertainment software for customers across industries.

Offers apps for iPhone, iPad, iPod and Android that make design technology mobile.

DASSAULT SYSTÈMES Montreal, Québec, Canada 3ds.com / 514-940-2949 3DEXPERIENCE platform helps businesses design, test and evaluate the experience they will deliver to their customers anywhere in the development lifecycle of a product or service.

ENVISIONTEC, INC. Dearborn, Michigan envisiontec.com / 313-436-4300 Provides expertise in optical, mechanical and electrical engineering to produce a rapid prototyping system employing its core-based technology of selective light modulation. Customers include GE, Kraft and P&G.

OPTOMEC Albuquerque, New Mexico optomec.com / 505-761-8250 Prints metals in a wide range of areas such as electronics, energy, life sciences and aerospace/ defense manufacturing. Key services include reducing the size and cost of electronic devices, improving the efficiency for the generation of alternative sources of energy, extending the life of aerospace components and producing wear-resistant medical devices. Customers include GE, Boeing and United Technologies.

SOLIDSCAPE Merrimack, New Hampshire solid-scape.com / 603-429-9700 Uses 3D printers to produce wax-like patterns for lost-wax casting/investment casting and mold-making applications. Solidscape printers and advanced materials are used in the manufacturing of small parts and assemblies.

STRATASYS Eden Prairie, Minnesota stratasys.com / 952-937-3000 Manufactures objects using systems ranging from affordable desktop 3D printers to large, advanced 3D production systems, such as FDM technology and polyjet technology.

Manufacturers use Stratasys 3D printers to create models and prototypes for new product design and testing, as well as to build finished goods in low volume.

STRATASYS DIRECT MANUFACTURING Valencia, California stratasysdirect.com / 888-311-1017 Offers a wide array of technologies and materials to produce parts

for applications ranging from models and prototypes to end-use components and assemblies.

Manufacturing services include direct metal laser sintering, fused deposition modeling, polyjet, stereolithography, urethane casting, CNC machining, tooling and injection molding. Customers include BMW, Lockheed Martin, Medtronic and Aurora Flight Sciences.

ACCOUNTING BAKER TILLY Chicago, Illinois bakertilly.com / 312-729-8000 Brad DeNoyer / Head of Manufacturing & Distribution / 608-240-2466 brad.denoyer@bakertilly.com Offers services in audit, accounting, tax, M&A and risk management in areas including casting, molding, forming, machining, rapid manufacturing, processing and more. Clients include QuadGraphics, Besser, S&C Electric Company and Bemis.

BDO New York, New York bdo.com / 212-885-8000 Provides business and financial advisory services, including transaction, risk and executive services. Tax team handles all types of global, federal, state and local tax matters for the private, public and nonprofit sector.

BKD Springfield, Missouri bkd.com / 417-831-7283 Jerry Henderson/ National Industry Partner / 502-581-0435

Helps manufacturers through strategy development, operations excellence, organizational improvements and information support systems. BKD provides services in audit, assurance and tax. Also offers manufacturing consulting solutions for decreasing costs, responding to changing market conditions and strategies and improving the accuracy of delivery promises. Clients include Baldor Electric, Shintech and Dolce International.

CBIZ/MHM Cleveland, Ohio cbiz.com / 216-447-9000 Mark Baricos/ Leader of Manufacturing Segment/ 901-685-5575 / mbaricos@cbiz.com Delivers financial and employee business services to organizations of all sizes, as well as individual clients. Middle-market manufacturing services include audit/ assurance, accounting and ERM software and risk advisory.

CLIFTONLARSONALLEN Minneapolis, Minnesota claconnect.com / 888-529-2648 Erik Skie/ Managing Principal of Manufacturing & Distribution 630-368-3645 / erik.skie@CLAconnect.com Delivers integrated wealth advisory, outsourcing and public accounting capabilities to small and medium-size privately held companies in industries such as plastics, metal fabrication, equipment design, wholesale distribution and precision machining.

COHNREZNICK New York, New York cohnreznick.com/ 212-297-0400 Alan Wolfson / Manufacturing-

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Wholesale Distribution Leader 646-254-7416 / alan.wolfson@ cohnreznick.com Provides industry-focused financial and operational solutions in areas such as process improvement, tax structuring and supply chain management to middle-market companies.

CROWE HORWATH Chicago, Illinois crowehorwath.com / 312-899-7000 Doug Schrock / Managing Principal Manufacturing Services 212-572-5545 / doug.schrock@ crowehorwath.com Provides audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. In the manufacturing sector, specializes in accounting services, M&A and risk management.

DELOITTE New York, New York deloitte.com / 212-492-4000 Dan Haynes / Manufacturing Sector Leader / 404-631-2155 dhaynes@deloitte.com Provides audit, tax and financial advisory services. Sectors of expertise include aerospace/ defense, automotive, process and industrial products, paper and packaging, metals and chemicals.

Clients include Boeing, Microsoft and Dell.

DIXON HUGHES GOODMAN Charlotte, North Carolina dhgllp.com / 877-761-1126 Gary Greer / Partner / gary.greer @dhgllp.com / 704-367-5884 Offers assurance, tax and advisory services in a wide range of industries, including aerospace, apparel, automotive, defense, food & beverage, plastics and more.

EISNERAMPER New York, New York eisneramper.com / 212-949-8700 Neal Godt / Partner / Neal.godt@ eisneramper.com.

Offers services in accounting, tax and consulting to clients in food, packaging, glass, electronics, pharmaceuticals and more.

EY New York, New York ey.com / 212-773-3000 Provides assurance services, accounting compliance and reporting, financial accounting advisory services, financial statement audits and fraud investigation and dispute services. Also offers M&A, divestiture, capital and debt advisory services.

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GRANT THORNTON Chicago, Illinois grantthornton.com / 312-856-0200 Jeff T. French / National Managing Partner, Consumer & Industrial Products / 920-968-6710 / jeff. french@us.gt.com Serves middle-market clients, including public and private companies, government agencies and financial institutions with core industries of consumer and industrial products.

KPMG New York, New York kpmg.com / 212-758-9700 Brian Heckler / National Advisory Industry Leader / bheckler@ kpmg.com Provides services in audit, tax and advisory to clients such as BMW AG, General Motors and Honeywell.

MARCUM New York, New York marcum.com / 212-485-5500 Lenny Gordon / lenny.gordon@ marcumllp.com Serves manufacturing-driven and consumer-pulled businesses with services of profit enhancement and coaching, forecasting and strategic planning, auditing and tax to clients like American Apparel.

MCGLADREY mcgladrey.com / 800-274-3978 Provides assurance, tax and consulting services focused on the middle market. Has nearly 8,000 professionals and associates in 80 cities nationwide and access to more than 32,000 people in 100 countries through its membership in RSM International.

PLANTE MORAN Chicago, Illinois plantemoran.com / 312-207-1040 Chris Montague / Head of Manufacturing & Distribution / 877-6222257 x23561 / chris.montague@ plantemoran.com Has expertise in accounting, tax and consulting to help manufacturers manage steadily during economic contraction and growth. Areas of manufacturing include automotive, food and beverage, metals, plastics and packaging.

PRICEWATERHOUSECOOPERS New York, New York pwc.com / 646-471-4000 Robert Bono / US Industrial Manufacturing Leader / 704-350-7993 Offers tailored solutions in audit and assurance, tax and consulting to industrial manufacturing companies listed in Fortune 500.

Major clients include Toyota, Kraft and Nintendo.

CEO’S GUIDE TO SMART MANUFACTURING

AUTOMATION ATMEL INDUSTRIAL AUTOMATION San Jose, California atmel.com / 408-441-0311 Offers solutions for automating and monitoring industrial processes, including robot integration, sensors, network connectivity and data analytics, security and IoT integration. Approximately 5,000 employees serve the manufacturing sector, which serves industrial and automotive manufacturers, among other industries.

BLUE OCEAN ROBOTICS U.S.A. Westchester, Ohio blue-ocean-robotics.com 513-939-9580 Provides emerging robotic solutions and services to improve quality-of-life, working environments and productivity for humans. Approximately 1,600 employees serve the manufacturing sector, which serves industrial work processes manufacturers.

CISCO INTERNET OF THINGS SOLUTIONS San Jose, California cisco.com / 866-428-9596 Offers industry-specific solutions to improve connectivity and operational efficiency, including automation control, robot integration, networking connectivity, fog and edge computing, data analytics and IoT security and integration. With 70,112 employees, Cisco’s IoT serves manufacturing clients, including Stanley Black & Decker and GM. DELL OEM SOLUTIONS FOR INDUSTRIAL AUTOMATION Round Rock, Texas dell.com / 800-456-3355 Offers a single source for comprehensive, end-to-end OEM integration and industrial automation solutions, including robot integration, network connectivity, data analytics, IoT security and IoT integration.

More than 70,000 employees serve the manufacturing industrial sector.

FLEXEYE SMART SYSTEMS FOR MANUFACTURING Surrey, United Kingdom flexeye.com 44 (0) 1483-306060 With approximately 30 staffers, Flexeye’s solutions offer operational intelligence and IoT Smart Systems, including robot integration, fog and edge computing, data analytics, IoT security and IoT integration. A staff of approximately 30 serves manufacturing clients, including Rolls-Royce and Jaguar.

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FREESCALE IOT SOLUTIONS Austin, Texas iot.freescale.com / 800-521-6274 Offers IoT solutions from edge to network to cloud, including automation control; robot integration, sensors, actuators, accelerators and component traceability; network connectivity, data analytics, IoT security and IoT solutions. More than 17,000 employees serve manufacturing clients, including KegData and BAM Labs.

GE AUTOMATION Fairfield, Connecticut geautomation.com / 800-433-2682 Offers industrial automation solutions that include automation control; discrete automation; drive systems; process automation; manufacturing information; robot integration; sensors, actuators, accelerators and component traceability; smart equipment; network connectivity; data analytics; and IoT security. Approximately 3,500 employees serve the manufacturing sector, including DVL, Pirelli, BP and Vari-Kool Manufacturing.

HONEYWELL INDUSTRIAL AUTOMATION AND CONTROL SOLUTIONS Morristown, New Jersey honeywellprocess.com 800-822-7673 Helps industrial customers operate safe, reliable, efficient, sustainable and more profitable facilities through solutions that include automation control, discrete automation, process automation, manufacturing information, robot integration, fog and edge computing and IoT security. Approximately 12,000 employees serve manufacturers, including MOL and TATA Steel.

IBM CLOUD AND SMARTER INFRASTRUCTURE SOLUTIONS Armonk, New York ibm.com / 800-426-4968 Offers systems that include manufacturing information, robot integration, fog and edge computing, data analytics, IoT security and IoT integration.

Approximately 2,000 employees serve manufacturers that include Becker Underwood and Mueller.

INTEL Santa Clara, California intel.com / 408-765-8080 Provides an end-to-end platform for connectivity, with systems for automation control, robot integration, fog and edge computing, data analytics, IoT security and IoT integration. With 106,700, Intel serves manufacturers including Fusheng and Abbaco Controls.

MICROSCAN Renton, Washington microscan.com / 800-762-1149

SPOTLIGHT ON / AUTOMATION

The promise is there, but manufacturers are only just beginning to realize the Internet of Things’ potential.

AUTOMATION SOLUTIONS are in-

creasingly incorporating capabilities to handle the Internet of Things (IoT), but manufacturers will likely need to shop separately for many best-of-breed IoT components. These include sensors to make factory equipment “smart” and Internet-connected; “fog computing” or “edge computing” applications for nearby tablets and rugged personal computers to capture, filter and analyze data from smart equipment so that only the necessary data needs to be uploaded to manufacturers’ main systems, and the right data analytics solutions to make the kinds of decisions that help manufacturers best compete. Manufacturers will also likely need third parties to help them integrate all of these moving parts.

With IoT, manufacturers can collect real-time information from equipment, facilities, supply chain partners and logistics providers, and analyze that data to make decisions on new control mechanisms, optimized routings or improved maintenance regimes. The ultimate goal? Better asset utilization, greater operational efficiencies, improved manufacturing quality, and reduced waste, says Alex Blanter, partner in A.T. Kearney’s communications, media & technology practice.

“This is the broad promise of IoT in manufacturing,” Blanter says. “In reality, delivering on this promise is complex, and comprehensive integrated solutions are years away.

Therefore, at the present time and in the near future manufacturers need to focus on finding specific-use cases where the

Automates processes to drive down cost and reduce waste with systems that include automation control; sensors, actuators, accelerators and component traceability, and fog and edge computing. Approximately 150 employees serve the pharmaceutical and automotive sectors.

MICROSOFT AZURE IOT SERVICES Redmond, Washington microsoft.com / 877-696-7786 Offers solutions for improved efficiencies and operational performance with systems including manufacturing information, robot integration, fog and edge computing, data analytics, IoT security and IoT integration. Manufacturers such as Lido Stone Works and ThyssenKrupp Elevator are served by 118,584 employees.

benefits are more immediate and obvious, and available IoT solutions are somewhat more mature.”

Ideally, smart technologies will be integrated into existing automated systems and processes, so manufacturers don’t have to redesign and rebuild everything, says Julie Anderson, a principal at AG Strategy Group in Washington, D.C. Justin Hoss, principal, advisory at KPMG LLP, prefers to use the term the “Internet of Everything (IoE),” which focuses on a “broader business ecosystem” including people, processes, devices and data.

Manufacturers can leverage IoE capabilities to get real-time data for diagnostics, inventory control, supply chain management, cargo container management, geo fencing and other functions, Hoss says. Some manufacturing technology vendors are integrating IoE into their existing automation solutions, while others are not.

“Manufactures will have to figure out what they are going to do with all of that data enabled by device connectivity, and how they are going to make decisions and provide business insight based on that data,” he says. “So the real challenge is investment in analytics solutions and not necessarily connectivity. Manufacturers will need solutions to help them make decisions on issues as complex as real-time demand signals in supply chains based on autonomous connectivity devices and systems.”

—KATIE KUEHNER-HEBERT

ORACLE INTERNET OF THINGS Redwood City, California oracle.com / 800-633-0738 Offers an integrated, secure, comprehensive platform for IoT architectures across all vertical markets with systems including manufacturing information, robot integration, fog and edge computing, data analytics, IoT security and IoT integration.

Manufacturing clients include DG Khan Cement and Dynamics NAV. PTC INTERNET OF THINGS Needham, Massachussets ptc.com / 877-275-4782 Delivers technology solutions to cut costs, reduce risk and drive growth, with systems including manufacturing information, robot integration, fog and edge computing, data analytics, IoT security and IoT integration.

Approximately 5,000 employees serve

manufacturing companies, including Sysmex and Orbotech.

ROCKWELL AUTOMATION Milwaukee, Wisconsin rockwellautomation.com 414-382-2000 Offers solutions for smart, safe, sustainable manufacturing supported by automation control; discrete automation; drive systems; process automation; manufacturing information; robot integration; sensors, actuators, accelerators and component traceability; smart equipment; network connectivity; data analytics; and IoT security. Approximately 22,500 serve manufacturing sector clients, including Hillshire Brands, Nestle USA and Tata Motors.

SAP CONNECTED MANUFACTURING go.sap.com

877-727-1127, ext. 11001 Offers fully integrated production from sales order to workstation supported by manufacturing information, robot integration, fog and edge computing, data analytics, IoT security and IoT integration. Approximately 74,400 employees serve manufacturers, including Dunn-Edwards, Joy Global and Redfoot Shoes.

SIEMENS AUTOMATION SYSTEMS Walldorf, Germany siemens.com / 49-69-797-6660 Offers integrated systems designed for deployment with all manufacturing applications and all industries, including energy and healthcare. Core competencies include automation control; discrete automation; drive systems; process automation; manufacturing information; robot integration; sensors, actuators, accelerators and component traceability; smart equipment; network connectivity; data analytics and IoT security.

SCHNEIDER ELECTRIC Andover, Massachusetts iom.invensys.com 888-869-0059 Delivers software solutions that allow smart devices, systems and people to connect more easily and securely, supported by automation control, manufacturing information, robot integration, fog and edge computing, data analytics, IoT security and IoT integration. Approximately 16,500 employees serve manufacturing clients including Immobilien and Eskom.

TEXAS INSTRUMENTS FACTORY AUTOMATION & CONTROL EQUIPMENT Dallas, Texas ti.com / 972-995-2011 Supplies the industrial automation market with dedicated products for programmable logic controllers (PLCs), sensor transmitters and industrial communication systems. Core competencies include automation control; sensors, actuators, accelerators and component traceability; fog and edge computing, data analytics, IoT security and IoT integration. Manufacturers such as Nokia and Lenoco are served by 34,759 employees.

VERTICAL SOLUTIONS Cincinnati, Ohio vertsol.com / 800-466-0238 Provides business management solutions integrated with technology to automate processes for the medical, legal, hospitality and not-for-profit sectors.

Core competencies include sensors, actuators, accelerators, component traceability and IoT integration.

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SPOTLIGHT ON / CYBERSECURITY

COMMERCIAL/ INVESTMENT BANKING BANK OF AMERICA Charlotte, North Carolina bankofamerica.com 704-386-5681 Specializes in credit, business loan and equipment financing for the energy, corporate and commercial aircraft industries, among others.

Trade Pro Platform helps its middle-market clients manage receivables, mitigate risk, improve working capital and speed up transactions across supply chains.

BMO HARRIS BANK Chicago, Illinois bmoharrisbank.com 888-340-2265 Ray Whitacre/ Managing Director, Head of Diversified Industries 312-461-3436 Offers financing solutions, including procuring raw materials, acquiring capital equipment or meeting working capital requirements. Capabilities range from procurement and creation to distribution and lending.

CITIZENS BANK Elkins, West Virginia / Providence, Rhode Island citizensbank.com / 888-798-4600 Jerry Sargent / Head of Middle Market Banking / 617-994-7074 girard.sargent@citizensbank.com Offers a full range of wholesale banking products and services, including lending and deposits, capital markets, treasury services, foreign exchange and interest hedging, leasing and asset finance, specialty finance and trade finance. Industry served include food and beverage, energy, chemicals, plastics, medical devices and motor vehicles and parts.

CAPITAL ONE McLean, Virginia capitalone.com / 703-720-1000 Offers financing for equipment purchases, including industry-specific equipment and new or used equipment, as well as refinancing of existing equipment. Capital One offers a wide range of financing products with competitive terms and pricing, including term loans, finance leases, tax leases and TRAC leases. Transaction sizes range from $500,000 to $50 million.

CITIBANK New York, New York citibank.com / 212-559-1000 Has experts in global energy and

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Significant and frequent data breaches are driving rapid evolution of the cybersecurity sector.

THE INCREASING FREQUENCY of

cyberattacks coupled with innovative new technologies is causing the cybersecurity sector to explode, creating many vendor choices for manufacturers. “There’s a tremendous amount of venture capital money flowing into cybersecurity right now due to all of the breaches, and there are also now a lot more choices for types of products,” says Quentin Orr, a partner and consultant for cybersecurity at PricewaterhouseCoopers LLP in Philadelphia.

The state of cybersecurity currently varies greatly by industry. For example, the financial and healthcare sectors are far ahead in cybersecurity in large part because they have to meet regulatory requirements.

At the same time, manufacturers have some of the “most poorly secured environments in the world,” because they have no such requirements, Orr says.

“But the threat to manufacturers is dramatically increasing, particularly from adversaries who want to steal their intellectual property and technologies,” he says. “These adversaries often come from developing countries who want to steal proprietary information that has taken manufacturers years of R&D efforts to launch.”

Predictions call for the number and severity of attacks to increase over the next two years due to significant “meta trends” globally, says Ed Ferrara, vice president, principal analyst for security and risk at Forrester Research in Cambridge, Massachusetts.

He points to political instability, the rise of nation states and their interest in asserting spheres of influence, the cooperation of organized crime and terrorist groups to extend or advance their agenda and “hacktivists” wanting to make both political and ideological statements as factors contributing to this likely escalation.

Depending on need and the results of a

agriculture sectors and primarily serves the Midwest. Clients include Victron Energy, Monpat Construction and Womack Machine Supply.

JPMORGAN CHASE New York, New York jpmorgan.com / 212-270-6000 Mike Linley/ Middle-Market Banking / 414-977-6720 / michael.j.linley@chase.com Offers financial services, including capital raising, risk management and strategic advice to private and public companies with revenues typically

CEO’S GUIDE TO SMART MANUFACTURING

thorough risk assessment, manufacturers should consider a number of different solutions covering a broad area of security concerns, Ferrara adds. Today, there are technologies that address top security issues such as threat intelligence, security analytics, identity and access management, intrusion protection, network security, data loss protection, web application firewalls, endpoint security and social media.

“Companies should be careful, however, to not create an ‘expense-in-depth’ scenario where they spend significant amounts of money on the latest technology but do not appreciably improve their security posture,” he warns.

Software and consulting are converging a bit more. Companies like Mandiant (which was acquired by FireEye but kept its branding) provide specialized services like DDoS attack simulations, training employees to avoiding phishing and allocating investments to the risk areas of highest priority, says Julie Anderson, a principal at AG Strategy Group in Washington, D.C., who notes that consultants like McKinsey and Deloitte can help companies formulate the big picture and integrate cyber considerations into the overall strategy and operations at the C-Suite level.

However, manufacturers should be careful not to be oversold, as there are many businesses of all types who believe their problem is different than what it truly is and there are vendors developing software and tools to help customers solve problems they may not have. “That’s why cybersecurity is not just a CIO problem—it goes all the way to the top,” says Anderson. “There is an opportunity for vendors and consultants to translate very technical issues to that level into how attacks can create economic loss and damage to customer trust, their reputation and their brand.”

—KATIE KUEHNER-HEBERT

between $500 million and $2 billion across industries, including consumer products, aerospace/defense, industrials, automotive, energy and paper and packaging.

GOLDMAN SACHS New York, New York goldmansachs.com 212-902-1000 Provides financial services, including M&A and client financing. Sectors served include technology, natural resources, industrial, consumer retail, healthcare and renewables.

September/October 2015

MORGAN STANLEY New York, New York morganstanley.com 212-761-4000 Provides a variety of services, including M&A, global capital markets, capital-raising and advisory services to governments, institutions, corporations and individuals. Clients are in a wide range of industries, including energy, industrials, power and utilities, consumer products and technology.

SIKICH Naperville, Illinois sikich.com / 630-566-8400 Jerald M. Murphy/ Partner in charge, Manufacturing & Distribution Services / 630-566-8559 Services include M&A advisory and capital-raising to industry sectors of equipment manufacturing, metal fabrication, automotive, heavy duty vehicle/construction equipment, packaging equipment and electrical/ electronic products. Clients include Boeing, GE, GM and IBM. WEISERMAZARS New York, New York weisermazars.com / 212-812-7000 Full-service accounting, tax and advisory firm with global reach, deep local market knowledge and manufacturing and distribution expertise.

WELLS FARGO Charlotte, North Carolina wellsfargo.com / 866-878-5865 Offers financial services, including M&A, financial restructurings, equity private placements and financial sponsors to middle-market firms in areas that include consumer and retail, energy and power, industrials and technology.

CYBERSECURITY CHECK POINT SOFTWARE San Carlos, California checkpoint.com / 800-429-4391 Offers a complete enterprise-wide security architecture, including network and database security, data loss prevention, identity authentication and management, Internet, cloud and mo bile security and threat monitoring and incident response.

Approximately 430 employees serve manufacturing companies such as Pacific Coffee, Osmose and Sinopec Group.

FIREEYE Milpitas, California fireeye.com / 877-347-3393 Offers agile, flexible and deeply integrated security architecture including network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, threat monitoring and incident response, endpoint forensics and training for clients’ in-house security teams. Approximately 2,000 employees serve manufacturing companies in the high tech, energy and global manufacturing industries.

FORTINET Sunnyvale, California fortinet.com

408-235-7700 Offers multi-layered, defensein-depth security technologies, including network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, and threat monitoring and incident response. More than 3,070 employees serve clients such as Nasdaq and Advent One. HP ARCSIGHT Spokane, Washington ndm.net / 877-686-9637 Provides security information and event management solutions for collecting, analyzing and assessing security events, with features that include network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, and threat monitoring and incident response. More than 400 employees serve manufacturers including Northrop Grumman and BMW. IBM SECURITY Armonk, New York ibm.com / 914-499-1900 Offers a customizable, deep enterprise security portfolio for integrated security intelligence, with features that include network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, and threat monitoring and incident response. Manufacturing and financial services clients include Caterpillar and Deutsche Bank.

JUNIPER NETWORKS Sunnyvale, California juniper.net / 888-586-4737 Provides scalable and intelligent network security solutions, with features that include network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, and threat monitoring and incident response. More than 9,000 employees serve telecom and retail customers, including Virtual1 and Zulily.

MCAFEE Santa Clara, California mcafee.com / 888-847-8766 Offers a wide range of enterprise security solutions for clients such as Xerox and Deutsche Edelstahlwerke.

Core competencies include network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, and threat monitoring and incident response.

ORACLE SECURITY SOLUTIONS Redwood City, California oracle.com / 800-392-2999

Offers database security solutions, including network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security and threat monitoring and incident response. Approximately 6,000 employees serve industrial and manufacturing clients such as Samsung, Hosun and CNH Industrial.

PALO ALTO NETWORKS Santa Clara, California paloaltonetworks.com 866-320-4788 Offers enterprise security solutions that include network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, and threat monitoring and incident response. Clients include Osram and Nordson.

ROOT9B root9b.com / 719-534-3994 Eric Hipkins / eric.hipkins@ root9b.com Offers a wide range of cybersecurity software products and services.

SOPHOS Abingdon, United Kingdom sophos.com / 888-767-4679 Provides solutions for network, server and end user security, including network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security, threat monitoring and incident response, and training clients’ in-house security teams. Clients include such companies as Heinz and Under Armour.

SYMANTEC BUSINESS Mountain View, California symantec.com / 800-745-6054 Provides security, storage and systems management solutions for clients such as Alghanim Industries, JDR Fixtures and Sealed Air. Supported features include network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security and threat monitoring and incident response.

TRIPWIRE Portland, Oregon tripwire.com / 800-874-7947 Offers cybersecurity solutions supporting network and database security, data loss prevention, identity authentication and management, Internet, cloud and mobile security and threat monitoring and incident response. More than 400 employees serve companies in the financial services, retail and hospitality, energy, government and defense industries, including Porsche Informatik and The North American Electric Reliability Corp.

DATA ANALYTICS AEGIS SOFTWARE FACTORY LOGIX Horsham, Pennsylvania aiscorp.com / 215-773-3571 Offers an integrated suite of software modules and devices for manufacturing operations, with core competencies including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 5,700 employees serve manufacturing companies including Connor Solutions, Distron, and Hunter Technology.

APPIAN ANALYTICS Castro Valley, California appiananalytics.com 916-293-1572 A service bureau specializing in helping clients solve data challenges via tools including real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support.

ATOS S.E. Purchase, New York atos.net / 914-881-3000 Offers digital services solutions, including real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 93,000 employees serve the consumer-packaged goods industry, among others.

CAMO SOFTWARE Woodbridge, New Jersey camo.com / 732-726-9200 Offers data analysis solutions and software, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 500 employees serve large multinationals, including DuPont, Goodyear and 3M Worldwide.

COGNIZANT TECHNOLOGY SOLUTIONS Teaneck, New Jersey

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cognizant.com / 201-801-0233 Offers enterprise analytics solutions, including real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Corporate customers including Eli Lilly, Royal Phillips Electronic and 3M Worldwide are served by 217,700 employees.

cloud support. Approximately 72,000 employees serve companies such as Autoglass and Coca-Cola.

CSC Falls Church, Virginia csc.com / 703-641-3000 Provides advanced big data and analytics solutions, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and

GE AUTOMATION/ MANUFACTURING SOFTWARE Fairfield, Connecticut geautomation.com 800-433-2682 Offers a range of data and predictive analytics solutions, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and

ELOGIC Victor, New York elogic.com / 585-506-4600 Provides an end-to-end e-commerce solution for manufacturers.

Corporate customers include FMC Technologies, Kennemetal, Lennox and SunDyne.

forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 3,500 employees serve companies in the food and beverage, defense, avionics, energy and oil & gas industries.

IBM ANALYTICS Armonk, New York www.ibm.com / 877-426-3774 Provides big data and analytics tools, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers include Mueller, Coates Hire and Jabil Circuit.

ICONICS Foxborough, Massachusetts iconics.com / 508-216-1333

SPOTLIGHT ON / DATA ANALYTICS

A look at where the complex and rapidly evolving data analytics field stands—and where it’s headed.

WHEN ASSESSING the ever-changing

data analytics vendor landscape, Soumendra Mohanty, VP with IT services and consulting firm Mindtree, reports that while consolidations have been occurring, the space is opening up thanks to big data, advanced analytics/machine learning and advanced data visualization. In fact, innovations are taking place so quickly that SAP, Oracle, IBM and Microsoft are struggling to keep up, yet startups are disrupting innovation and targeting business users, rather than enterprise IT. These fledgling firms are finding their niche by offering unique products in Analytics on Cloud, on-demand machine learning and visual discovery.

A main challenge that data analytics software makers face is the ability to forecast demand and adjust supply, according to Christer Johnson, a partner with EY. Given the inherent complexity of manufacturing various products, the question is, how quickly can the manufacturer take real information from the marketplace and then shape the demand? Essentially, the more closely a manufacturer can tie unique decisions around a product’s attributes to what’s going on in the field, the more it will improve its ability to reduce the amount of time to adjust manufacturing.

While the ability to quickly deliver market/ customer-facing solutions is clearly a need, certain capabilities aren’t available yet, such

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as API First, says Mindtree’s Mohanty. Although a few vendors have started offerings in this space, it needs to mature and become an integral part of their line.

Despite the complexity of this dynamic industry, some basic principles still apply.

Experience trumps price when trying to sell software and service in manufacturing analytics space, says Johnson. His colleague, Amber Morgan, a senior manager with EY, says data analytics integrates well with basic socio-cultural issues, such as labor skills and education.

Moving forward, in the digital convergence era, the driving force will become DevOps, says Mohanty, and that will require a change in vendors’ mindset. Packages and environment management systems/solutions will be integrated with data analytics’ vendor offerings, but before this can happen, there must be experimentation, rapid prototyping, testing and a willingness to disregard solutions that don’t meet consumer expectations.

Looking ahead five years, Johnson predicts the vendor landscape will be dominated by big European MRP systems, with SAP’s S4 serving as a tidal wave in business processing. We can also expect the sector to shrink, says Morgan, as the trend around the consolidation of smaller niche players will continue and there will be an uptick of new players using better technology.

—BETSY PETRICK

September/October 2015

Offers a suite of products that that include manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers include ABB Foundry Group, Dynastar, Mondi and Becker Underwood.

MICROSOFT ANALYTICS Redmond, Washington microsoft.com / 866-425-4709 Provides a turnkey big data analytics appliance, with tools that include real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers include Aston Martin, HyVee and Tyson Foods/Hillshire Brands.

MITS Seattle, Washington mits.com / 888-700-6487 Offers a flexible interactive reporting and analytics software solution that includes manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. More than 30 employees serve corporate customers including Field Controls and Point Precision.

NEUBRAIN MANUFACTURING ANALYTICS Rockville, Maryland neubrain.com / 301-296-4477 Offers business analytics, budgeting and performance management systems that include manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Twenty employees serve companies such as J.J. Haines, Sephora and C.F. Martin & Co. NORTHWEST ANALYTICS Portland, Oregon nwasoft.com / 888-692-7638 Offers a manufacturing intelligence solution for enterprise-wide, real-time manufacturing visibility from all data sources, with tools including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability

and cloud support. Thirty employees serve customers that include Dow Chemical, KB Alloys and PrintPack.

ORACLE MANUFACTURING ANALYTICS Redwood City, California oracle.com / 800-633-1058 Offers a prebuilt analytical solution that includes manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers include Batesville, Donaldson and Minerals Technologies.

ROCKWELL AUTOMATION Milwaukee, Wisconsin rockwellautomation.com 414-382-2000 Offers solutions for smart, safe, sustainable manufacturing, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 22,500 employees serve companies such as Kings Hawaiian and Tyson Foods/ Hillshire Brands.

SAP PREDICTIVE ANALYTICS Newtown Square, Pennsylvania go.sap.com / 800-872-1727 Provides predictive analytics solutions, including real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers include Velux, WeissBeerger and eBay. SAS Cary, North Carolina sas.com / 800-727-0025 Offers data mining and advanced analytics solutions, including real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers including Dow Chemical, Lenovo and Nestle are supported by 13,672 employees.

SCHNEIDER ELECTRIC SOFTWARE Andover, Massachusetts software.schneider-electric.com 888-869-0059 Offers data analytics and operational data management capabilities, including real-time reporting; business

intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 16,500 employees serve companies including BSH Bosch and Intersoll Rand.

SPARTA SYSTEMS Hamilton, New Jersey spartasystems.com 609-807-5100 Offers enterprise business intelligence solutions, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 200 employees serve companies in the electronics and pharmaceutical industries.

TERADATA ASTER DISCOVERY PLATFORM Dayton, Ohio teradata.com / 866-548-8348 Offers an integrated solution optimized for multiple analytics on all data, and includes manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Customers include Coca Cola, Ford and PING. TIBCO SOFTWARE Palo Alto, California tibco.com / 866-247-8182 Offers integrated data analytics solutions, including real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Approximately 4,300 employees serve corporate customers, including Merck, NXP Semiconductors and Pirelli.

WARWICK ANALYTICS Los Altos, California warwickanalytics.com 408-641-3148 Offers predictive analytics solutions, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. More than 400 employees serve companies in the pharmaceutical and automotive industries.

WIPRO TECHNOLOGIES Bangalore, India wipro.com / 289-374-2000 Offers big data analytics services, including manufacturer-specific analytics software; real-time reporting; business intelligence; advanced analytics and machine learning; predictive analytics; modeling, planning and forecasting; advanced data visualization; on-premise capability and cloud support. Companies, including Corning and Morrisons, are served by 158,217 employees.

EDUCATION/ TRAINING LINCOLN EDUCATIONAL SERVICES Newark, New Jersey lincolnedu.com / 800-793-3669 Provides hands-on training for career specific technical skills at more than 30 campuses in 15 states.

Offers training in CNC Machining and Manufacturing Technology, Automotive and Diesel Technology, Welding, Electrical, HVAC and Health Sciences.

TOOLINGU-SME Cleveland, Ohio toolingu.com / 866-706-8665 Tooling U-SME offers training resources that include professional consultative services, online training content, instructor-led training, book and video content and industry-backed certifications. Manufacturing clients include Bose, Phillips and Harley Davidson.

ERP APTEAN Atlanta, Georgia aptean.com / 855-411-APTEAN Provides integrated ERP solutions, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation, and warehouse management alignment. Approximately 1,200 employees serve clients that include Ulbrich and Stripco.

EPICOR SOFTWARE Austin, Texas epicor.com / 800-999-1809 Provides an end-to-end ERP

software solution, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Approximately 4,800 employees serve clients including Pharmedic and El-Cab. EVO-ERP MANUFACTURING CONTROL SOFTWARE Henderson, Nevada evoerp.com / 866-516-3282 Offers an ERP solution for small to medium sized businesses with features that include procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; on-premise; ERP, manufacturing, transportation and warehouse management alignment.

Clients include Alternative Manufacturing, Burr King Manufacturing and Universe Machine Group.

EXACT MACOLA 10 Dublin, Ohio exactmacola.com / 800-468-0834 Provides ERP solutions for small and midsize manufacturing and distribution companies, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Approximately 1,900 employees serve clients including Advanced Polymers, Rite Way Manufacturing, Woodstock Farms Manufacturing and Grace Engineered Products.

IBM ALLIANCE SOLUTIONS Armonk, New York ibm.com / 866-426-4252 Provides ERP solutions in collaboration with alliance partners, with features that include procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment. Clients include MITAS, Shell and TPV. IFS Chicago, Illinois ifsworld.com / 888-437-4968 Offers agile ERP solutions, including procurement and supplier relation-

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ship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Approximately 2,700 employees serve clients including Linamar and Miller-St. Nazianz.

INFOR New York, New York infor.com / 800-260-2640 Provides ERP solutions that include procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Approximately 12,400 employees serve clients including Caldera and Propper International.

IQMS Paso Robles, California iqms.com / 866-367-3772 Provides real-time ERP software with lean and agile functionality, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation, and warehouse management alignment.

Approximately 200 employees serve clients, including Donnelly Custom Manufacturing, Network Polymers and Steinwall Scientific.

JOBSCOPE Greenville, South Carolina jobscope.com / 800-443-5794 Provides an integrated manufacturing software solution, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Approximately 250 employees serve clients including Metron, NATCO and Young Electric Sign Co. MICROSOFT DYNAMICS Redmond, Washington microsoft.com / 888-477-7989 Provides ERP software that integrates with MS Office products and includes such features as procurement and supplier relationship management; manufacturing

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planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Clients include Thorlux Lighting, Victrex and Xiamen Tungsten.

NETSUITE ERP San Mateo, California netsuite.com / 877-638-7848 Provides a cloud ERP solution that includes procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Approximately 2,550 employees serve clients including Headland Machinery and Niner Bikes.

ORACLE ERP Redwood City, California oracle.com / 800-633-0738 Provides a variety of cloud-based ERP solutions that include procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment. Clients include DG Khan Cement, Dynamics NAV and Technova Imaging Systems.

PROFITKEY INTERNATIONAL Salem, New Hampshire profitkey.com / 800-331-2754 Offers manufacturing ERP software for small to mid-sized companies, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; on-premise; ERP, manufacturing, transportation and warehouse management alignment.

Clients, including Aerospace Dynamics International, HotWatt and Taylor Forge Engineered Systems, are served by 24 employees.

QAD MANUFACTURING ERP Santa Barbara, California qad.com / 805-566-6100 Provides ERP solutions for manufacturers, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; mobile capabilities; ERP, manufacturing,

CEO’S GUIDE TO SMART MANUFACTURING

transportation, and warehouse management alignment. Clients such as Stryker and Nexteer are served by 1,540 employees.

SAGE 100 ERP Lawrenceville, Georgia na.sage.com / 866-530-7243 Provides comprehensive ERP solutions to small and middle-market businesses with a wide range of features including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment. Approximately 4,000 employees serve clients such as Alloy Polymers, Hoya Vision Care and Sonnax Industries.

SAP ERP Newtown Square, Pennsylvania sap.com / 877-727-1127 Offers ERP software for companies of all sizes with features including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Clients include Dunn-Edwards, Joy Global and Redfoot Shoes.

SHOPTECH E2 SHOP SYSTEM Hartford, Connecticut shoptech.com / 800-525-2143 Offers shop management software solutions that include procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; ERP, manufacturing, transportation and warehouse management alignment. Clients, including Action Metal and Spec Fab, are served by 159 employees.

SYSPRO ERP MANUFACTURING MANAGEMENT SOFTWARE Costa Mesa, California syspro.com / 714-437-1000 Provides ERP software solutions and services, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; financial accounting; integrated, real-time data analytics and SaaS/ cloud. Approximately 1,600 ERP partners worldwide serve clients such as Bodypoint, Columbia Manufacturing and Mopani Copper Mines.

September/October 2015

VERTICAL SOLUTIONS ERP Cincinnati, Ohio vertsol.com / 800-466-0238 Provides solutions to leverage ERP investments with features that include manufacturing planning; service and support; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment.

Clients include ABB, Mitsubishi and General Binding.

VISIBILITY ERP Andover, Massachusetts visibility.com / 978-269-6500 Provides a fully integrated ERP system, including procurement and supplier relationship management; manufacturing planning; order to cash, e-commerce and inventory; service and support; HR; financial accounting; integrated, real-time data analytics; SaaS/cloud; on-premise; mobile capabilities; ERP, manufacturing, transportation and warehouse management alignment. Approximately 100 employees serve clients such as Campbell Wrapper, Fujitec America and GLM Industries.

RISK MANAGEMENT/ INSURANCE ACE GROUP New York, New York acegroup.com / 212-827-4400 Offers a comprehensive suite of property and casualty solutions for U.S. manufacturers, from single locations to multinationals with substantial foreign operations and revenues. Provides innovative insurance products and underwriting expertise for light- to moderate-hazard manufacturing companies, backed by global capacity, network, service and claims expertise.

AIG New York, New York aig.com / 212-458-5000 Provides insurance products and services for commercial and institutional customers, including a property casualty network, mortgage guaranty insurance and an institutional retirement and savings business. Commercial Insurance offers a broad range of products to customers through a diversified, multichannel distribution network.

CHUBB Warren, New Jersey chubb.com / 312-822-5000 Offers insurance solutions to businesses and individuals around the world, specializing in property and casualty,

SPOTLIGHT ON / ENTERPRISE RESOURCE PLANNING

Evolving to address ever-changing technological capabilities, the fragmented ERP field can be difficult to navigate.

THE ENTERPRISE RESOURCE PLANNING (ERP) vendor and consultant

landscape is large and fragmented, and startups continue to emerge, especially those focused on cloud, mobile and “business planning and consolidation” technologies. In addition to ERP software vendors and consulting firms, there are also firms that focus on integrating ERP systems into the overall IT infrastructure, note Forrester’s vice president and principal analyst Liz Herbert and researcher Nate Fleming.

Manufacturers account for a significant portion of that business—70 percent, according to SAP integrators HP and ITC Infotech.The ERP space is also evolving to focus on capabilities such as “customer journey mapping,” which tells the story of the customer’s experience from initial contact through the process of engagement and into a long-term relationship, as well as design-thinking sessions and studio approaches to working, according to Forrester.

Manufacturers can improve process efficiency and variability by adjusting how the ERP works to determine which steps to keep and which to eliminate, notes Brian Dunn, a partner with A.T. Kearney’s strategic information technology practice. “This enables manufacturers to take ‘off-the-shelf’ solutions for a given area of their business, then overlay world-class practices, as well as the manufacturer’s own tweaks based on the specifics of that company, to irk out the last mile of efficiency,” Dunn says.

With ERP cloud solutions, manufacturers cannot do as much tweaking and customizing of the solution’s source code, but

management liability, accident and health and surety bonds. Clients are in technology, aviation, defense and medical devices and include CEOs of Fortune 500 companies, their families and top art collectors.

CNA Chicago, Illinois cna.com / 800-262-2000 Offers services to help manage claims, understand exposures, address potential losses and maintain business continuity. Manufacturing expertise focuses on domestic manufacturers of commercial or industrial products, encompassing 90 percent of industry standard industrial classifications with specialized insurance solutions for metals, industry/ma-

they still have access to leading practice and fairly robust configuration options, he says. Cloud solutions have also “radically accelerated” implementation timeframes and “pay-as-you-go” economics.

The prime objective of ERP has evolved from “standardizing, simplifying and automating” business processes, towards “integrating, innovating and accelerating” around business performance, Dunn says.

“Increasingly, we will see manufacturers really look to ERP vendors to help them both be and stay competitive in today’s increasingly disruptive world. Many ERP vendors aren’t frankly geared-up for this new world, and we should expect further consolidation in the market until those types of capabilities are more widely available.”

As cloud ERP solutions gain popularity because of the lower costs and flexible subscription models, it’s still unclear how cumbersome it might be for manufacturers to switch vendors, as the data is controlled by the vendor, says Arun Rangaraju, senior vice president and head of package solutions at Mindtree. With on-premise solutions, the software and data always stay with the customer even if the version is no longer supported by the vendor. A hybrid of on-premise and cloud ERP is likely to become more popular in the coming years.

“The demands on today’s established ERPs are related to building enterprise-class mobile apps, improving the end-user experience, providing high quality analytics and integrating with cloud products,” Rangaraju says. “This is where opportunities exist for startups to build niche solutions and accelerators.”

—KATIE KUEHNER-HEBERT

chinery, wood/ furniture, and paper/ printing. More than three-quarters of CNA’s clients are middle-market.

LOCKTON Kansas City, Missouri lockton.com / 816-960-9000 Offers comprehensive insurance and risk management services in areas covering paperboard boxes, steel, boats and agricultural equipment.

THE HARTFORD Hartford, Connecticut thehartford.com / 860-547-5000 Services include comprehensive insurance and risk management programs to manufacturers of all sizes, from those with less than $15 million in annual revenue, to larger firms

with more than $1 billion. Companies served sell both durable and non-durable goods, including metals, plastics, industrial equipment and more.

PURE pureinsurance.com 888-813-7873 Dedicated to creating an exceptional experience for responsible high net worth individuals and families.

Product suite includes customizable coverage throughout the U.S. for high-value homes, automobiles, jewelry, art, personal umbrella liability, watercraft and flood.

ZURICH NORTH AMERICA Schaumburg, Illinois zurichna.com

Cindy Slubowski / VP Head of Manufacturing / 847-706-2585 cynthia.slubowski@zurichna.com Offers commercial property-casualty insurance services to middle-market clients up to $150 million in areas including food, plastics, metals, electrical/electronic component, machinery and equipment, auto parts, textile and paper.

TALENT/ RECRUITMENT JMJ PHILLIP Rochester Hills, Michigan jmjphillip.com / 877-500-7762 Dennis Theodorou / VP / dennis. theodorou@jmjphillip.com Provides services such as consulting/advisory, executive search and recruiting to middle-market companies in areas that include agricultural and heavy equipment, medical device, tiered and OEM automotive, industrial automation, CPG, plastics and electronics.

KRONOS Chelmsford, Massachusetts kronos.com / 978-250-9800 Kylene Zenk-Batsford Sr. Manager, Manufacturing Practice / 978-947-6755 / kylene. zenk@kronos.com Offers solutions to help control operational expenses through accurate labor cost tracking and analysis, minimize regulatory and union compliance risk with automated labor policy application, improve productivity and efficiency by enabling better decisions with real-time visibility to labor, WIP and equipment to manufacturers of all sizes. Clients include Kellogg, National Frozen Foods and Mitsubishi NA. LUCAS GROUP Atlanta, Georgia lucasgroup.com / 800-466-4489 Services include executive search, consulting/advisory and recruiting to Fortune 500 manufacturing clients.

Specializes in consumer products, energy, aerospace & defense, food and beverage and industrial products.

TRANSPORTATION/ LOGISTICS CARDINAL LOGISTICS Concord, North Carolina cardlog.com / 704-789-2000 Provides knowledge-based, inte-

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grated logistics solutions, including dedicated contract carriage, freight brokerage and freight forwarder services, end-to-end supply chain and/or management, and inventory logistics. Approximately 1,500 employees serve clients such as TMW Systems and CHEP USA. CEVA LOGISTICS Inwood, New York cevalogistics.com / 516-620-6000 Provides non-asset-based supply chain management solutions, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services, and customs brokerage.

Serves clients in the industrial, automotive and energy industries.

C.H. ROBINSON WORLDWIDE Eden Prairie, Minnesota chrobinson.com / 800-323-7587 Provides multimodal transportation services and logistics solutions, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/ or management, fulfillment services, inventory logistics, transportation and logistics consulting services and customs brokerage. Clients such as Energizer Holdings and Metalfrio are served by 11,676 employees.

COYOTE LOGISTICS Chicago, Illinois coyote.com / 877-6-COYOTE Provides truckload, less-than-truckload, and intermodal brokerage services and transportation management services, including intermodal fleet, dedicated contract carriage, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management and transportation and logistics consulting services. Clients such as Heineken and Neuro are served by 1,994 employees.

DB SCHENKER USA Freeport, New York dbschenkerusa.com 800-225-5229 Offers integrated multi-modal transportation and logistics services, including dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/ or management, fulfillment services, inventory logistics, transportation

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SPOTLIGHT ON / TRANSPORTATION AND LOGISTICS

Supply chain transparency can be challenging in this highly fragmented marketplace.

THE TRANSPORTATION AND LOGISTICS VENDOR LANDSCAPE is highly fragmented due largely to the numerous moving parts it takes to get a manufacturer’s product from concept design through production and all the way to the end-user’s hands.

Brett Cayot, principal and partner, global logistics and distribution lead at PriceWaterhouseCoopers LLC in New York City, says the logistics market is evolving due to: •INCREASING NUMBERS of third-party logis-

tics providers with transportation management software solutions and outsourcing services •ONGOING CONSOLIDATION among vendors to better link their transportation/ logistics offerings to their offerings for enterprise resource planning, warehouse management systems and order management systems; and • THE EMERGENCE of new niche players to solve specific distribution problems.

However, a major gap yet to be resolved for manufacturers is the challenge of end-to-end visibility across functions, he adds. “For example, if a customer has an order that is being delivered late to a cross dock, how does the customer notify outbound transportation planners or alert them so they can take corrective action? We typically still see a separate WMS, TMS, global trade management and fleet/routing system with clients. And while integration can provide some of this visibility with a status message, the main value is having it streamlined in one system. As distribution applications continue to mature, the demand for a one-stop-shop technology for all needs will likely continue to increase.”

Then there’s the freight-forwarding landscape. These are the middlemen between transportation providers, who are akin

and logistics consulting services and customs brokerage. Approximately 235,000 employees serve clients such as Aptean and Honeywell.

EXPEDITORS INTERNATIONAL Seattle, Washington expeditors.com / 817-305-4000 Offers customized logistics solutions, including warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-toend supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting

CEO’S GUIDE TO SMART MANUFACTURING

to freight brokers, but with the ability to warehouse goods when there are delays, such as when they are unloaded off ships and waiting for rail or truck transport.

The freight-forwarding market is highly fragmented, with the top 10 forwarders controlling 9 percent and 26 percent of the ocean and air freight markets, respectively. Thousands of independent forwarders service the remainder.

“In an increasingly data-driven world, manufacturing clients are demanding logistics solutions based on analytics rather than kickbacks,” says Ryan Petersen, founder of Flexport, a San Francisco-based customs brokerage and global freight forwarder built around an automated online dashboard.

“There’s an ever-pressing need to reduce inefficiencies and human error, while providing high integrity service.”

Likewise, the road transportation market has thousands of providers, spurring vendors to offer value-added services, such as end-to-end supply chain management, to differentiate from their competition, says Anshu Prasad, a lead partner in A.T. Kearney’s Analytics Service Practice in New York City.

Manufacturers can get better service and negotiate better deals with carriers if they run their own operations more efficiently, Prasad says. “By having a load ready for pickup minimizes idle, uncompensated time for the carrier, and often translates to more reliable service and cost for the shipper,” he explains. “Compare that to manufacturers who ask drivers to drop trailers in their yard, but don’t have shipments ready for hours or maybe days after the scheduled pickup time, and it’s easy to understand why carriers provide advantaged capacity and rates to their better shipper partners.”

—KATIE KUEHNER-HEBERT

services and customs brokerage. More than 14,600 employees serve clients such as Walmart and GE, as well as others in the aviation/aerospace and oil & gas industries.

FEDEX SUPPLY CHAIN SOLUTIONS Memphis, Tennessee fedex.com / 800-463-3339 Provides optimized transportation management and integrated logistics solutions, including intermodal fleet, freight brokerage and freight forwarder services, transportation management, end-to-end supply

September/October 2015

chain and/or management, fulfillment services, inventory logistics and customs brokerage. Clients in biotech, medical device technology and high-tech industries are served by 120 employees.

ICAT LOGISTICS Elkridge, Maryland icatlogistics.com / 800-572-1324 Offers customized logistics solutions, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services,

transportation management, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services and customs brokerage.

JB HUNT TRANSPORT SERVICES Lowell, Arkansas jbhunt.com / 877-288-8341 Provides transportation and logistics services, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services and customs brokerage. Clients such as PPG Industries and Weyerhaeuser are served by 20,158 employees.

MENLO WORLDWIDE San Mateo, California menlologistics.com 248-648-6100 Provides supply chain management and third-party logistics services, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services and customs brokerage.

Approximately 8,500 employees serve clients such as JF Hillebrand and Sears.

PENSKE LOGISTICS Reading, Pennsylvania penske.com / 888-234-4201 Delivers innovative transportation and logistics solutions, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services, and customs brokerage.

Approximately 13,000 employees serve clients such as Ford, Whirlpool and GM. RUSH TRUCKING Wayne, Michigan rushtrucking.com / 800-526-7874 Provides trucking and freight transportation services, including dedicated contract carriage, warehousing and distribution optimization services and freight brokerage and freight forwarder services. Approximately 450 employees serve clients such as Ford and Toyota.

RYDER INDUSTRIAL MANUFACTURING SUPPLY CHAIN Miami, Florida www.ryder.com / 888-793-3702 Provides commercial transportation, logistics, and supply chain management solutions, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/ or management, fulfillment services, inventory logistics, transportation and logistics consulting services and customs brokerage. More than 31,000 employees serve clients such as Cisco and Bendix.

SCHNEIDER NATIONAL Transportation Management Greenbay, Wisconsin schneider.com / 888-491-1653 Provides truckload, logistics and intermodal services, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services and customs brokerage. Clients such as NorFalco and Nissan are served by 18,185 employees.

SWIFT TRANSPORTATION Phoenix, Arizona swifttrans.com / 800-800-2200 Offers customized transportation solutions, including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management, inventory logistics, transportation and logistics consulting services and customs brokerage. Clients such as Walmart and Quaker Oats are served by approximately 17,700 employees.

UPS SUPPLY CHAIN SOLUTIONS Atlanta, Georgia ups.com / 800-742-5877 Offers a single source to manage global transportation and freight, with services including intermodal fleet, dedicated contract carriage, warehousing and distribution optimization services, freight brokerage and freight forwarder services, transportation management, end-to-end supply chain and/or management, fulfillment services, inventory logistics, transportation and logistics consulting services, and customs brokerage. Approximately 435,000 employees serve clients such as Baxter and Sprint.

MANUFACTURING CONSULTING SERVICE PROVIDERS AG STRATEGY GROUP agstrategygroup.com / janderson@agstrategygroup.com Offers strategy development, planning, execution and human capital development, among other things.

A.T. KEARNEY atkearney.com / 312-648-0111 Strategic IT department provides industrial automation and IoT consulting services. Also offers manufacturing data analytics and ERP consulting services.

ACCENTURE accenture.com / 877-889-9009 Digital Plant Solutions department (aiss. enquiries@accenture.com) offers manufacturing automation and IoT consulting services. Also offers consulting services on data analytics, ERP integration systems and transportation and logistics.

BAIN & COMPANY www.bain.com / 617-572-2000 Expertise in advanced analytics, transportation, industrial goods and services, and more.

CAPGEMINI capgemini.com / 212-314-8000 Offers consulting services on automation, IoT and ERP. CHAINALYTICS chainalytics.com / 770-574-4291 Provides a range of transportation and logistics consulting services.

CSC csc.com / 703-876-1000 Provides a wide range of cybersecurity services. Clients include Selex and MWH Global.

Chief Analytics Officer, Center of Excellence Leader, 212-773-3671).

IBM ibm.com / 877-426-3774 Provides automation and IoT consulting services, including connectivity and application integration.

KLC CONSULTING klcconsulting.net / 617-314-9721 Provides cybersecurity services.

Clients include Siemens and HP. KPMG kpmg.com / 201-307-7000 Offers consulting services on automation & IoT (Jeffrey Dobbs, Global Sector Chairman, Industrial Manufacturing, 313-230-3460, jdobbs@kpmg.com), cybersecurity (Ed Goings, Principal, 312-665-2551, egoings@kpmg.com), ERP, data analytics (Bradley A. Fisher, National Leader, Data & Analytics, 212-909-5498, bfisher@kpmg.com) and transportation and logistics.

MAVERICK TECHNOLOGIES mavtechglobal.com / 888-917-9109 Provides cybersecurity consulting services, including a specialty in industrial security for manufacturers and power plant operators.

MCKINSEY & COMPANY mckinsey.com / 212-466-7000 Provides consulting services on automation and IoT, ERP and transportation and logistics.

MINDTREE mindtree.com / 908-604-8080 Offers digital transformation and technology comsulting services.

BAIN & COMPANY bain.com / 312-541-9500 Provides a range of transportation and logistics consulting services to manufacturers.

OPTIV SECURITY optiv.com / 800-565-5091 Offers cybersecurity services, including on-demand security staffing and system set-up. Clients include U.S. Cellular, Home Depot, Accor.

DELOITTE CONSULTING deloitte.com / 404-220-1500 Offers consulting services on automation & IoT (Dan Haynes, Section Leader, Manufacturing, 404-631-2155, dhaynes@deloitte.com), cybersecurity, data analytics, ERP (John Ciaramella, Global AMS Leader, 404-631-2960, jciaramella@deloitte.com) and transportation and logistics.

PWC pwc.com / 203-539-3000 Provides consulting services for automation and IoT (Robert Bono, U.S. Industrial Manufacturing Leader, 704-350-7993), cybersecurity, ERP (Paul Horowitz, Principal, 646-4712401) and transportation and logistics (Julian Smith, Global Transportation & Logistics Leader, +62 21 5289 0966).

EY ey.com / 415-894-8000 Provides automation and IoT consulting services (Chris Mazzei, Global

TATA CONSULTANCY SVCS. tcs.com / 732-590-2600 Offers a range of enterprise resource planning consulting services.

September/October 2015

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Leverage the Power of A CEO Peer Network.

Chief Executive Network (CEN) is a National Peer Group member organization that helps chief executives improve their effectiveness and gain competitive advantage through an exchange of expertise on critical business issues.

Chief Executive Network peer groups are: Industry-specific Meet with peers in your same industry

Similar size Meet with CEOs of similar-sized organizations

Non-competitive Each and every member can singly block competitors from their group

CEN facilitators are selected for their skills as facilitators for CEOs, and are brought in from around the country for meetings.

Join the Chief Executive Network.

In just two meetings per year, you’ll gain the invaluable power of a peer board of advisors to help you get better results through shared experience and objective insights.

Executive effectiveness is dramatically improved when CEOs meet with industry peers.

Find the CEO Peer Network that’s right for you: • • • •

Manufacturing Wholesale/Distribution Software/Technology Engineering

• Architecture • Electrical/ Mechanical Contracting • General Contracting

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