Rivian: Sustainable electric vehicle adventure driven by procurement
Boehringer Ingelheim: Healthy data creates a better world
iQuantum: A modern procurement platform for today’s business
UPG Enterprises: UPG Enterprises on digital transformation and automation
FEATURING: ASPENTECH SOPHOS IBASET | | | INTELEX
Feb 2023 | manufacturingdigital.com
Agricultural equipment manufacturers
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10 0 0 0 1 LEADERS2022 • LE A D SRE 2202 • SREDAEL2202 • EL A D ERS2022 • Creating Digital Communities OUT NOW Read now Don’t miss this Issue! The most influential people in Supply Chain
The Manufacturing Team JOIN THE COMMUNITY Never miss an issue! + Discover the latest news and insights about Manufacturing Global... EDITOR-IN-CHIEF HELEN ADAMS CHIEF CONTENT OFFICER SCOTT BIRCH MANAGING EDITOR NEIL PERRY PROOFREADER JESS GIBSON CHIEF DESIGN OFFICER MATT JOHNSON HEAD OF DESIGN ANDY WOOLLACOTT LEAD DESIGNER JORDAN WOOD FEATURE DESIGNERS MIMI GUNN SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD JUSTIN SMITH REBEKAH BIRLESON ADVERT DESIGNERS JORDAN WOOD DANILO CARDOSO CALLUM HOOD VIDEO PRODUCTION MANAGER KIERAN WAITE SENIOR VIDEOGRAPHER HUDSON MELDRUM DIGITAL VIDEO PRODUCERS MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN JOSEPH HANA SALLY MOUSTA JINGXI ANG PRODUCTION DIRECTORS GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS JANE ARNETA MARIA GONZALEZ CHARLIE KING YEVHENIIA SUBBOTINA MARKETING MANAGER DAISY SLATER PROJECT DIRECTORS CRAIG KILLINGBACK MIKE SADR MEDIA SALES DIRECTORS JAMES WHITE MANAGING DIRECTOR LEWIS VAUGHAN CEO GLEN WHITE
The threats of outdated technology in manufacturing and the rise of ESG in 2023
In Manufacturing Digital February 2023, we take a closer look at ESG in the sector and how the manufacturing industry is attracting young, talented professionals in the skills shortage
Hello and welcome back to the first edition of Manufacturing Digital 2023!
In this issue, we catch up with AspenTech’s Senior Director, Ron Beck, to hear about how the company is attracting young professionals into the manufacturing sector and how AspenTech is increasing its sustainability credentials. Meanwhile, John Shier, Senior Security Advisor at Sophos, shares his knowledge of ransomware and the results of Sophos’ ‘State of Ransomware in Manufacturing’ report.
Rashpal Mundi, Senior Partner Manager for iBASEt EMEA, discusses how the manufacturing sector is changing and the threats of using outdated technology. Lastly, Ben Henderson, Head of Product Solution Consulting at EMEA Intelex Technologies, explores the company’s ESG efforts.
Helen.Adams@bizclikmedia.com
FOREWORD manufacturingdigital.com 5 © 2023 | ALL RIGHTS RESERVED
“ In this issue, we discuss how the manufacturing sector is changing and the threats of using outdated technology ”
HELEN ADAMS
MANUFACTURING GLOBAL MAGAZINE IS PUBLISHED BY
Our Regular Upfront Section:
Factory of the Future
Rivian Sustainable electric vehicle adventure driven by procurement
AspenTech’s Ron Beck on sustainable manufacturing & AI 24 42
10 Big Picture 12 The Brief 14 Timeline: 2023 predictions for the manufacturing sector 16 Trailblazer: Blake Moret 20 Five Minutes With: Michael J. Zeto III Boehringer Ingelheim Healthy data creates a better world 50 CONTENTS
Digital Manufacturing John Shier, Senior Security Advisor at Sophos, on Ransomware Technology iBASEt’s Rashpal Mundi on the risks of outdated technology iQuantum A modern procurement platform for today’s business Sustainability Ben Henderson, Intelex Technologies,on ESG & sustainability SAP SAP’s Sam Castro on AI and risk resilience in manufacturing Top 10 Agricultural equipment manufacturers UPG Enterprises UPG Enterprises on digital transformation and automation Applovin Managing risk and growing the global app ecosystem 64 84 72 106 92 128 116 140
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OUT NOW Read now 10 0 0 0 1 LEADERS2022 • LE A D SRE 2202 • SREDAEL2202 • EL A D ERS2022 • Creating Digital Communities Don’t miss this Issue! The most influential people in Procurement
BIG PICTURE
Colleagues using digital tablet and working in industry Brazil
To attract Gen Z talent, a commitment to digital can demonstrate manufacturing is a progressive industry in which to work. “This means using technology to eliminate repetitive tasks and provide crucial insight that fuels intelligent decision-making,” says Rashpal Mundi, iBASEt’s Senior Partner
Manager for EMEA.
10 February 2023
manufacturingdigital.com 11
THE BRIEF
READ MORE
ASPENTECH’S RON BECK ON SUSTAINABLE MANUFACTURING & AI
READ MORE
Many of AspenTech’s major customers have been struggling for the past two years with various supply chain disruptions.
“We see the opportunity to help these global companies adopt digital solutions, so they can support and achieve this agility,” says Beck.
AspenTech continues to maintain a substantial team conducting software testing and related work in its Shanghai location. Over the past five-plus years, AspenTech has also progressively expanded and added staff to its new team in Mexico City.
READ MORE
“We have found that there is a strong talent pool of the right kind of motivated and creative technical people in the Mexico City area that meet the profile of R&D support and other skilled resources we have been adding over the past few years, to support the company’s innovation in areas core to our company mission.”
At the beginning, we had a shell of a manufacturing plant. Now, we're fully operational, building three different vehicles.
Brad Hood
Director of Indirect Purchasing, Rivian
Our global database of suppliers allows customers to source from new diverse suppliers to meet their goals.
Hetal Mehta Founder and CEO, iQuantum Inc
The enterprise has to provide guidance to the manufacturing and supply chain teams as a whole
Sam Castro Solution Manager for Digital Manufacturing, SAP
12 February 2023
EDITOR'S CHOICE
BEN HENDERSON, INTELEX TECHNOLOGIES, ON ESG & SUSTAINABILITY
Ben Henderson, Head of Product Solution Consulting at EMEA Intelex Technologies, discusses the company’s ESG efforts and sustainability initiatives
IBASET’S RASHPAL MUNDI ON THE RISKS OF OUTDATED TECHNOLOGY
Rashpal Mundi, Senior Partner Manager for iBASEt EMEA, on how the manufacturing sector is changing and the danger of outdated technology
JOHN SHIER, SENIOR SECURITY ADVISOR AT SOPHOS, ON RANSOMWARE
John Shier is the Senior Security Advisor at Sophos. Here, he discusses ransomware and the results of Sophos’ ‘State of Ransomware in Manufacturing’ report
BY THE NUMBERS
93% of manufacturers believe a lack of digital investment poses the risk of going out of business
CONNECTED SECTOR ECOSYSTEMS
AVEVA’s CEO Peter Herweck & IDC’s Senior Vice President Bob Parker are fascinated by the rise of connected industry ecosystems & the industrial sector’s digital economy
CLOUD ASSESS
Rob Bright, CEO of Cloud Assess & manufacturing engineer, gives his Top 4 reasons why manufacturers cannot afford to overlook training practices in 2023.
INTEGRATION CHALLENGES
Up to 90% of manufacturers struggle with integration challenges, meaning that when disruption occurs, they struggle to react effectively, says Arjun Khanna, Chief Technology & Innovation Officer at Kallik.
CHINESE MANUFACTURING
According to CNBC Supply Chain Heat Map data, manufacturing orders from the USA for China have decreased by 40%.
U P D O W N
FEB 2023
manufacturingdigital.com 13
2023 PREDICTIONS THE MANUFACTURING SECTOR
Research shows that 43% of people give up on their New Year's Resolutions after just one month, but these five leaders from the manufacturing sector know that the industry must harden its resolve to accelerate important transformations throughout 2023 to carry the sector into the future
Ford Motor
Autonomous vehicle development
In 2020, Detroit-based automaker Ford Motor said that it expected autonomous vehicle development to rise to US$4bn through to 2023.
"Ford has made tremendous progress across the self-driving value chain — from technology development to business model innovation to user experience,” said then-CEO
Jim Hackett.
White Label Loyalty
Use data and technology to build customer loyalty
Achile Traore, CEO of White Label Loyalty, said he believes that manufacturing brands should use data and technology to build customer loyalty in 2023.
“Research suggests that by 2023, over 60% of consumers will expect companies to be able to anticipate their needs and make relevant recommendations,” he said.
TIMELINE
14 February 2023
FOR MANUFACTURING
Decarbonisation
Industrial companies are now realising that they have to start making progress towards their decarbonisation goals.
“We believe 2023 will be a year when many industrial organisations will look closely at their emissions and take tangible steps to reduce them,” said Berk Birand, Co-founder and CEO of Fero Labs.
Important trends for manufacturing playbooks
Paul Wellener, Vice Chair of US Industrial Products & Construction Leader at Deloitte LLP, shared his thoughts: “Our newly released 2023 Manufacturing Outlook highlights five important trends for manufacturing playbooks in the year ahead: managing uncertainty; tackling workforce shortage; driving supply chain resiliency; scaling smart factory initiatives; and developing sustainability.”
Rob Bright, CEO of Cloud Assess & manufacturing engineer, offered his reasons as to why manufacturers cannot afford to overlook training practices in 2023.
“With the manufacturing industry under increasing pressure to find a solution to the ongoing skills shortage, 2023 will be a crucial year for those looking to improve business performance.”
Training practices
Deloitte
PREDICTIONS
Cloud Assess
manufacturingdigital.com 15
Fero Labs
Name: Blake Moret
Job Title: CEO Company: Rockwell Automation
Blake Moret became the President and Chief Executive Officer of Rockwell Automation in 2016. In his role, he leads productivity and sustainable initiatives across the biggest industrial automation and information company in the world.
At Rockwell Automation, the mission is to accelerate the quality of life through more efficient production, smart manufacturing and sustainable options. An investment in Rockwell Automation’s technology is an investment in the future of manufacturing.
Moret’s vision for one project, The Connected Enterprise, is to use information to assist industrial companies in their productivity. “Manufacturers are looking for new ways to leverage technology to reduce their environmental footprints,” says Moret.
TRAILBLAZER
Moret has worked at Rockwell Automation for 38 years 16 February 2023
is the CEO of Rockwell Automation – and a trailblazer. Here’s why
manufacturingdigital.com 17
Mechanical engineering and volunteer work
Moret is a graduate of Georgia Institute of Technology, where he studied a Bachelor's Degree in Mechanical Engineering 1980 –1985. After completing this, he arrived at Rockwell Automation and worked across sales and business management roles until 2002.
From then up until 2005, he worked as Director of Electronic Operator Interface Business, then moved to Customer Support and Maintenance until 2007, where he led the control products and solutions across the business segment of Rockwell Automation. Up until 2011, Moret worked as Vice President. He was then promoted to President and Chief Executive Officer in 2016, and Chairman and Chief Executive Officer in 2018.
Moret has also served as Chair of the Board for the Manufacturing Institute of the National Association of Manufacturers and is a member of the Board of Directors for the Urban Ecology Center. He is on the Board of Directors of the United Way of Greater Milwaukee and Waukesha, and is also on the Advisory Board of the Woodruff School of Mechanical Engineering at Georgia Tech.
Over his 38 years at Rockwell Automation, Moret has seen a huge rise in sustainable manufacturing and is racing to meet it across the company.
Sustainable efforts in the workplace and the world
Rockwell Automation, along with many other manufacturers, suspended operations and
TRAILBLAZER
“Manufacturers are looking for new ways to leverage technology to reduce their environmental footprints”
18 February 2023
– Blake Moret
sales in Russia and Belarus following the invasion of Ukraine. Though sales in these countries total less than 0.5% of Rockwell Automation’s total revenue, the company has said that it will continue to pay salaries and benefits for its Russian team.
“Rockwell Automation joins the US government and the global community in condemning Russia’s attack on Ukraine and its citizens,” said Moret. The company made a financial donation to Project HOPE, which offers humanitarian aid to Ukrainian refugees. Further to this, Rockwell Automation has matched employee donations for Project HOPE while supporting local volunteer efforts.
Within the company, Moret is prioritising sustainable initiatives. “Manufacturers are looking for new ways to leverage technology
to reduce their environmental footprints,” Moret said. “Intelligent devices, combined with innovative sustainability and energy management software, provide new levels of insight to reduce energy demand and increase efficiency.”
Moret believes that real-time energy management is within reach, from monitoring to embedded AI tools that offer closed-loop optimisation. In using a standard energy data model, Moret hopes that energy intensity and other key performance metrics can be measured and improved.
“This simple, yet impactful, insight allows businesses to de-energise the equipment when not in use, reducing both costs and greenhouse gas emissions.”
manufacturingdigital.com 19
MICHAEL J. ZETO III
Boingo designs, builds and manages wireless networks to help enterprises streamline operations, improve business outcomes, and bolster the bottom line.
QHI MICHAEL, TELL US ABOUT YOUR PATH TO CCO AT BOINGO?
» I joined Boingo Wireless in 2020 as the SVP of Global Strategy, leading our worldwide strategy, business development and new business creations. I was a senior member of the executive team, guiding the company through the pandemic, a private equity transition and the launch of Boingo’s highly anticipated private network offering. In 2021, I stepped into the role of Chief Commercial Officer.
Prior to Boingo, I worked at AT&T, leading the emerging business portion of AT&T IoT. I created the smart city business, public private partnerships, and several other businesses in new categories for the company. I was focused on driving successful utilisation of 5G and IoT applications.
QTELL
US
ABOUT BOINGO AND THE WORK YOU DO?
» Wireless networks have changed from a single source needed by an enterprise to multiple types of connectivity required to run the entire business.
We start by asking, ‘What outcomes do you need to accomplish?’ From there, we develop a network that specifically serves that company’s unique needs and drives business outcomes. In short, we design, build and manage converged networks that can include all technologies or solutions – such as 5G, DAS (distributed antenna systems), Wi-Fi or CBRS to meet growing connectivity needs. It sounds complex because it is. Enterprises work with Boingo to bring all technologies together – an increasingly challenging goal.
FIVE MINUTES WITH...
BOINGO WIRELESS CHIEF COMMERCIAL OFFICER
20 February 2023
QWHAT SKILLS HAVE YOU DEVELOPED TO STAY AHEAD OF THE GAME?
» First and foremost, I believe in listening to those around you –both colleagues and customers. Having empathy for them and what they're going through is essential. This way, you’re able to develop solutions that really meet the outcomes they're trying to drive. I've also learned that whatever your role, you’ve got to be agile. We've seen a heightened need for agility over the past three years, and I don't think it's going to stop. We need to quickly pivot, act with velocity, think creatively and collaborate.
QHOW IS DIGITAL TRANSFORMATION IMPACTING MANUFACTURING?
» Over the last eight to ten years, we’ve talked a lot about IoT, Industrial IoT, and how machines are connecting things that weren’t previously connected. Digital transformation can be as basic sounding as moving file-keeping from paper to electronic, or it can be as complex as the use of digital twins for virtual simulations and product testing.
In the last couple of years, the need for digital transformation in every industry has accelerated. Now, connectivity is a key component in providing a stronger bottom line, bigger ROI and more agility.
QWHAT ARE THE BIGGEST CHALLENGES AHEAD FOR MANUFACTURERS?
» As far as challenges go, manufacturers are going to continue to focus on balance. The macro environment is saying that you need to be profitable and deliver for your shareholders, yet all the public markets are facing increases in costs and experiencing issues in the supply chain.
Manufacturers need to find other ways to drive profit, because there's only so much elasticity in the market. That's where you're going to see a lot of focus on increasing efficiencies through digital transformation.
FIVE MINUTES WITH...
22 February 2023
“WE HANDLE THE NETWORK SO OUR PARTNERS CAN FOCUS ON THEIR BUSINESS”
QWHAT SHOULD IT TEAMS BE DOING TO SOLVE THESE PROBLEMS?
» Reliable, fast, secure connectivity is key. It’s the common thread through every solution. Connectivity drives positive productivity gains, efficiency and business innovation. Determine the business outcomes you need and work with a connectivity partner who can execute your strategy.
QHOW DOES BOINGO SUPPORT MANUFACTURERS AND THEIR BOTTOM LINE?
» At Boingo, we serve as trusted advisors and partners. We come in and stand side-by-side with you. We evaluate the outcomes you want to drive and help you develop a strategic roadmap for solutions. We then design, build and manage that for you. We know wireless today is complex. We know it is challenging. We also know you just want it to work, and work well. We handle the network so our partners can focus on their business.
QWHAT TIPS DO YOU HAVE FOR THOSE WHO ARE GETTING A BUSINESS STARTED?
» Outcomes are different for each industry and each business. Take time to know who your customer base is first and build your strategies around their needs.
Learn more at boingo.com
“CONNECTIVITY DRIVES POSITIVE PRODUCTIVITY GAINS, EFFICIENCY AND BUSINESS INNOVATION”
Sustainable electric vehicle adventure driven by procurement
WRITTEN BY: TOM SWALLOW
PRODUCED BY: MIKE SADR
24 February 2023
manufacturingdigital.com 25
Brad Hood, Director of Indirect Purchasing at Rivian, on the benefits of a ‘blank canvas’ and how the EV manufacturer implements sustainable procurement
Anyone harbouring a passion for adventure and sustainability will no doubt have heard of the company leading the market for electrified pickup trucks.
Not only does Rivian boast sustainability credentials across its entire business, it’s also a business built with the planet at the forefront of all its activities. Yet, while there are many exciting aspects to highlight, the critical element of Rivian’s story is the “design and development of categorydefining electric vehicles”, in the words of the company’s Director of Indirect Purchasing, Brad Hood.
We often see the company through the consumer lens. Thousands evangelise the clean, robust, unique style of the Rivian R1T and R1S—its pioneering EVs, the pinnacle of the environmentally and socially responsible business.
Founded in 2009, the Rivian story began with a vision for sustainable mobility. As an automotive enthusiast himself, the company’s founder, RJ Scaringe, saw that the two things he lived for—cars and nature— were not compatible in the long-term. This conclusion formed the very basis of the company, which holds an integral place in the electrification of automotive.
manufacturingdigital.com 27 RIVIAN AUTOMOTIVE
Procurement drives a sustainable electric vehicle adventure
“He created a product that was a more sustainable alternative to the fossil-fuelburning carried out by internal combustion engine vehicles. He really wanted to facilitate a transition to more neutral energy transportation, not only for our generation, but for our kids', kids’, kids,” says Hood.
“It's a multi-generational purpose that goes beyond any one of us, which is what drives the overall culture at Rivian: we're here for something bigger than ourselves.”
Of course, there’s more to Rivian vehicles than the fact they run on electric propulsion. The company prides itself on sustainable sourcing and leveraging a circular system, right from the design stage. Its batteries can be easily removed for either recycling or ‘second life’ applications. When it comes to the interiors, vegan leather and other animal-free materials are used, with mid-life repairability in mind.
Beyond the product itself, sourcing also involves the unique procurement of oceanharvested plastics for its dunnage containers and other packaging solutions. Such actions earned the company the 2022 Excellence and Reusable Packaging award from the Reusable Packaging Association.
“If we are working on an e-sourcing event or an auction, we can leverage these templates”
28 February 2023 RIVIAN AUTOMOTIVE
BRAD HOOD DIRECTOR OF INDIRECT PURCHASING, RIVIAN
“We use the most sustainable products we can and when we went public, 1% of the company went to the Rivian Forever Fund,” says Hood.
“We think about how to operate responsibly within the plant. When we began the conversion of the old Mitsubishi plant to the new Rivian plant, we used some of the old steel to make tables, a mezzanine—and we even repurposed old robots as a door holder for the conference room.
“We reused things, and maybe went above and beyond. Instead of scrapping it, instead of getting rid of those materials, we thought, ‘how can we repurpose that and reuse them?’.”
Indirect procurement provides the operational foundations
As a new entrant to the automotive industry in 2009, Rivian was built with sustainability in mind. And being a new business gave the company a competitive edge to not only grow, but advance the use of new technologies and lean processes.
Hood explains that when he joined the organisation in 2018, the procurement function was significantly smaller than it is today, but this has allowed the company to take an approach that is driven by technology.
“When I joined, there were 500, 600 employees. There were about three people within our department,” Hood says. “Now, the total company size is more than 20 times that.”
BRAD HOOD
TITLE: DIRECTOR OF INDIRECT PURCHASING
INDUSTRY: OIL & ENERGY
LOCATION: DETROIT, USA
Brad shifted careers from manufacturing and production planning to procurement after graduating from Western Michigan University with a major in Integrated Supply Chain Management. After spending most of his procurement career in consulting, he joined Rivian at the tail-end of their stealth mode in 2018 to help build their procurement department. Rivian has experienced tremendous growth since then, which includes the indirect procurement team that Brad leads. This has proved both Rivian and Brad the opportunity to grow the procurement organisation in the same manner as Rivian talks about designing the vehicles, from a blank
10,000+ Number of employees
2009
Year founded
“At the beginning, we had a shell of a manufacturing plant. Now, we're fully operational, building three different vehicles with multiple different variations in Normal, Illinois.”
manufacturingdigital.com 29 RIVIAN AUTOMOTIVE
PROVIDING RETURNABLE PACKAGING SOLUTIONS
Essex Weld Solutions is a global company servicing customers across North America.
Our focus is the development and global supply of custom and standard automotive racking products. Essex Weld Solutions is a “Full Service Manufacturer” of custom automotive containers from bins to racks. We offer Designs, Prototypes, and high-volume production. This ensures superior quality control, something our customers expect and deserve.
LEARN MORE
FULL SERVICE CUSTOM RACK MANUFACTURER
Essex Weld Solutions began with a handful of customers and a production plant in Essex, Ontario. From the start, people were our strength. We have selected a team with a focus on integrity and trust, which is the foundation that we have built our reputation on. Keeping our customers’ needs at the center of every decision is what has led us to strive for excellence in everything we do. These values have been instilled in all our team members ensuring we all work together towards these goals.
Twenty years later, we have expanded to multiple locations across three countries. Our Canadian plants include Leamington and Essex, Ontario. We also have American plants in Laurens, South Carolina and Warren, Michigan as well as one plant in Durango, Mexico. All locations boast on-site engineering and full production capabilities so that we can provide in-house concepting, designing, prototyping, and large-scale production allowing us to be a one stop shop for our customers’ projects.
Over one-hundred years of combined experience has taught us that investing in the latest manufacturing technology is necessary to provide top quality products. Our plate and tube lasers, break presses, robotic welders, and full powder coat system allow us to maintain high standards across all locations. Our manufacturing process is monitored from concept to delivery using
our own ERP system, Edata+, with real time inventory levels, production status, and barcode tracking labels. This enables us to maintain inventory of common materials at all locations and efficiently control quality and delivery timing.
Our innovative approach to the everevolving world of manufacturing means we never stop improving the service we provide our customers. As manufacturing shifts to a greater integration of robotic production lines, we have developed a Metrology team that exclusively handles the precise quality control required for those projects. These continuous improvement efforts allow us to expand our capabilities so that we can better serve our existing customers, and reach out to new ones, as their needs change, especially as the shift to Electric Vehicles continues.
RIVIAN AUTOMOTIVE
The story behind sustainability Rivian entered the automotive industry at an interesting period. The company was very much undergoing its formation when major carmakers first started thinking about EVs, which, at the time, were seen as a ‘nice-to-have’.
With a passion for automotive and a desire to protect nature in all its glory, Rivian’s CEO, RJ Scaringe, set about building his dream: a vehicle with no limits and an adventurous edge that would allow drivers to explore harmlessly, reinvigorating their love for the environment.
The company first piqued interest with its two EV models. The R1T, its pickup truck model, and the R1S, which leverages the same great technology in an SUV body. In 2022, the company reached a major milestone with the announcement of it supplying electric delivery vans to Amazon—the initial quantity being 10,000, with potential for the e-commerce giant to expand this to 100,000.
Rivian cultivating a business on what was seemingly a blank canvas meant that the company worked through many challenges in its indirect procurement function to ensure that it remained true to its roots.
The solutions adopted by the company were pivotal. They allowed the team to focus on more hands-on tasks, alleviating the need for human input in the day-to-day processes.
“We had the opportunity to build an organisation that is truly best-in-class, from the ground up. We don't have to change any old behaviours; we can create new ones, and in the right manner, too. Balancing the two of those meant knowing
32 February 2023
what we needed to do daily versus what was required to build a foundation for the future.
“This was the biggest challenge, balancing the short-term and long-term needs. There are so many day-to-day requirements, but we must be able to balance the day-to-day work, while building the foundation of the organisation we desire to build.”
Another major challenge that wreaked havoc on all supply chains—and inevitably affected Rivian—was the COVID-19 pandemic, which meant navigating a remote-working environment while scaling and taking on new team members across the globe.
“We're fully operational, building three different vehicles with multiple different variations down in Normal, Illinois”
BRAD HOOD DIRECTOR OF INDIRECT PURCHASING, RIVIAN
manufacturingdigital.com 33
Intelligent tech needs ingenious humans
With data, automation, and AI, we help organizations transform and build value across the board. Explore how people and companies are reimagining supply chain networks at accenture.com Let there be change
These trying times meant the company had to adapt to onboarding and training the team online, without knowing when new starters would come into contact with their colleagues.
As a result of these challenges, the company adopted ‘category cards’ to create ease in the purchasing process. This is just one of the ways in which the company streamlines the onboarding process, automating indirect procurement processes to allow a smaller team to manage more purchases.
36 February 2023 RIVIAN AUTOMOTIVE
BRAD HOOD DIRECTOR OF INDIRECT PURCHASING, RIVIAN
“When you log in, you see the category, you select that category, and it gives you a brief description to tell you if you can buy it from a catalogue—so we can drive more spend to a catalogue—or it gives you a direction to reach out to a purchasing manager or supplier,” Hood explains.
“That way, we can touch more spend with a smaller team, increasing the addressability of the spend and continuing to educate the rest of the organisation to drive spend to our preferred buying channels.”
Further sourcing platforms used by the company provide further standardisation of indirect procurement processes. This includes supplier negotiation preparation, which can largely be templated—as Hood explains.
“If we are working on an e-sourcing event or an auction,
we can leverage these templates. “Automatically, a quantitative proposal comes in and we can analyse that based on our previous price paid, other proposals, market intelligence,” says Hood.
“We can look at that pretty quickly and find any outliers, identify where the best quantitative values are and work with our stakeholders as we incorporate the qualitative aspects. These tools really allow us to work faster.”
While businesses would often apply the term ‘digital transformation’ to their operations, it seems Rivian is beyond this, ensuring that technology is embedded into all processes from the earliest possible stage as part of its strategic approach to growth.
“It's a multi-generational purpose that goes beyond any one of us, which is what drives the overall culture at Rivian”
manufacturingdigital.com 37 RIVIAN AUTOMOTIVE
A Tour of the Rivian Plant | Go behind the scenes with founder RJ Scaringe
“It can standardise things and reduce errors but, for us, it allows us to actually promote and enrich the daily operations of those working in data-entry roles. They've now gone into more category management roles and supporting student sourcing, as well as those roles where we can marry technology and experience,” Hood explains.
Leveraging partnerships to integrate more technology
As the company looks to ramp up the production of EVs, technology will become an integral component in allowing the organisation to scale its operations and meet demand.
The company will continue to add value to its services sustainably, with
manufacturingdigital.com 39 RIVIAN AUTOMOTIVE
“We use the most sustainable products we can and try to be more sustainable with the materials of the vehicles”
40 February 2023 RIVIAN AUTOMOTIVE
BRAD HOOD DIRECTOR OF INDIRECT PURCHASING, RIVIAN
sourcing playing an integral role in reducing emissions down the supply chain. As the company expands its own charging network, technology will allow personnel more time to explore renewable energy sourcing, making sure that Rivian customers are charging up with clean energy.
Meeting its strategy for success hinges on its use of data in the procurement functions to standardise processes and focus on saving costs, time, and limiting negative
climate impact—with the overarching aim of eliminating it. As such, the procurement team will look at supplier spend and consider whether its dollars are going towards the desired suppliers.
While much of the technology adoption and integration is carried out in-house, Hood explains that technology partners will be leveraged by Rivian to meet demands unique to its processes.
Hood says: “We understand what we want to do in theory—on a whiteboard—but how do we integrate that into the actual software that’s more commonplace?”
In trying to answer this question, the company has been able to push technologies to their absolute limits, which is a benefit to Rivian, but also the partner that supplies that solution—making Rivian a testbed ripe for procurement solutions.
manufacturingdigital.com 41
ASPENTECH’S RON SUSTAINABLE MANUFACTURING
AspenTech’s Senior Director Ron Beck is working hard to draw in young professionals to the manufacturing sector & build sustainability within the company
WRITTEN BY: HELEN ADAMS
Today, a lot of young, talented professionals entering the workforce are ranking the purpose of the company they might work for as a strong element of their career selection process.
Ron Beck, Senior Director at AspenTech, is aware that for manufacturing companies, this translates into young workers understanding their company’s drive around sustainable manufacturing and sustainable products.
“Manufacturing commitments to zero carbon, circularity, and the digitalisation that enables them are proving to be a powerful driver in recruiting the next generation into jobs where they can make a difference,” says Beck.
AspenTech is a leader in asset optimisation software and assists industrial businesses in running their operations more safely. The company is also focused on smart manufacturing – especially in regards to the chemicals it uses,
42 February 2023
BECK ON MANUFACTURING & AI
manufacturingdigital.com 43 FACTORY OF THE FUTURE
A BizClik Event: Get tickets Sponsor opportunities 26-27 SEPTEMBER 2023 EXHIBITION & CONFERENCE – BUSINESS DESIGN CENTRE Watch our 2022 Showreel
minimising plastic waste and putting cloud data to effective use – one level of which is automation.
“Data is expensive – so how do you make intelligent use of it? AI helps us do that,” says Beck. “We have a long-term vision, a selfoptimising plant roadmap of how to use the least energy possible and save money.”
The company was founded in 1981 in Bedford, Massachusetts. Beck joined the company in 2007 as a Product Marketing Director. “We have very strong leadership in our company,” he says proudly.
Beck also volunteers with the Water Resources Advisory Committee. As Chairman, he works to protect groundwater and correctly manage stormwater and wastewater.
Moving manufacturing to Mexico
Many of AspenTech’s major customers have been struggling for the past two years with various types of supply chain disruptions. This has led companies to seek more agility and flexibility to adjust supply chains as economic and geopolitical factors change. A strategic component of this is much more pervasive digitalisation to provide such agility across the value chain.
“We are seeing the opportunity to help these global companies adopt digital solutions at a much more sophisticated and pervasive level, so they can support and achieve this agility,” says Beck. “Some of this is enabled simply by broader adoption of existing technologies. Some of this will happen through companies taking advantage of the integration and work flows we have built into the technology, but companies have been slow to adopt.
“MANUFACTURING COMMITMENTS TO ZERO CARBON ARE A POWERFUL DRIVER IN RECRUITING THE NEXT GENERATION, WHERE THEY CAN MAKE A DIFFERENCE”
manufacturingdigital.com 45 FACTORY OF THE FUTURE
RON BECK SENIOR DIRECTOR, ASPENTECH
Some will happen through innovative ways of solving staffing shortages through re-skilling, digital and online training methods, and organisational excellence.”
AspenTech continues to maintain a substantial team conducting software testing and related work in its Shanghai location, where the company gave out food baskets to their employees during the lockdown. The company also has another office location in Beijing.
Over the past five-plus years, AspenTech has progressively expanded and added staff to its relatively new team in Mexico City.
“Success has spawned success,” says Beck. “We have found that there is a strong talent pool of the right kind of motivated and creative technical people in the Mexico City area that meet the profile of the R&D, support and other skilled resources we have been adding over the past few years
to support the company’s innovation in areas core to our company mission –in particular with respect to the use of digitalisation in support of operational excellence and sustainability.”
Partnership with Emerson for expansive manufacturing
Last year, AspenTech teamed up with industrial machinery manufacturing company Emerson, which bought 55% of AspenTech. Beck believes that the key to their work has been the strong synergies that have blossomed from their partnership, already beginning to bear fruit, as well as the almost completely complementary nature of the offerings of the two companies.
“One key synergy area is in the area of electrification,” says Beck. “As the oil and gas, chemical, and mining industries work
46 February 2023 FACTORY OF THE FUTURE
RON BECK SENIOR DIRECTOR, ASPENTECH
to electrify their most energy-intensive processes while simultaneously integrating renewables into their sites and business portfolios, the synergies of the renewables’ automation and sensor strengths of Emerson alongside the energy optimisation and digital grid management strengths
of AspenTech will be increasingly important.”
A second key synergy area is in carbon capture and storage – another element of research for young, talented professionals who are job-hunting in the manufacturing sector.
“CCS projects are end-to-end projects, from carbon source to carbon capture, from transport to subsurface geological formation storage to long-term monitoring,” says Beck. “Effective execution, scaling and economics of the projects will take full advantage of the capabilities of AspenTech to provide design, optimisation and monitoring software. Emerson will provide the automation and monitoring systems and programme execution.”
“WE HAVE FOUND THAT THERE IS A STRONG TALENT POOL OF THE RIGHT KIND OF MOTIVATED AND CREATIVE TECHNICAL PEOPLE IN THE MEXICO CITY AREA”
manufacturingdigital.com 47 FACTORY OF THE FUTURE
RON BECK SENIOR DIRECTOR, ASPENTECH
48 February 2023
“EFFECTIVE EXECUTION, SCALING, AND ECONOMICS OF PROJECTS WILL TAKE FULL ADVANTAGE OF THE CAPABILITIES OF ASPENTECH AND EMERSON”
In addition to this, AspenTech is currently seeing considerable adoption of a timely solution comprising multiple AspenTech tools together: a carbon emissions decision-support solution.
“This is a high-value solution positioning, comprising multiple existing AspenTech products implemented together for customers looking for actionable insight around their carbon emissions landscape,” explains Beck. “This decision-support solution empowers a company to get an actionable, birds-eye view of their carbon emissions through the mobilisation of underlying data and models. Companies today are challenged in understanding their carbon emissions across all their assets – as well as in detail within assets – in a timely, accurate enough manner to enable better operating decisions to reduce carbon emissions day-to-day.”
This new solution can and does achieve that. Up until today, companies have been using spreadsheet-based approaches that are manual, lack transparency and slow to compile. AspenTech has innovated an approach that will provide the same ultimate answer to regulators, but in a real-time manner that enables agile decision making at each asset, and with units within an asset.
“Companies will be able to report accurately and auditably but, more than that, have insight into the performance of their enterprise, with decision support to predict future performance and look at scenarios that will optimise their operations between sustainability, profit, delivery to customers, and safety.”
AspenTech is starting the ground work now to be a more competitive business partner – and employer – in the future.
manufacturingdigital.com 49 FACTORY OF THE FUTURE
HEALTHY WORLD HEALTHY DATA CREATES A BETTER WORLD
50 February 2023
PRODUCED BY: KRISTOFER PALMER
manufacturingdigital.com 51 BOEHRINGER INGELHEIM
WRITTEN BY: GEORGE HOPKIN
Boehringer Ingelheim’s Head of Data Management, Bruno Rizzuti, explains how Big Pharma builds a better world with tech innovation throughout the enterprise
Humanity faces serious challenges in 2022: climate change threatens the planet; global health crises have exposed vulnerabilities in society; communities are being marginalised; and demographic trends are creating new pressures on healthcare worldwide. To meet these challenges, pioneering familyowned Boehringer Ingelheim is working on breakthrough therapies with the hope of transforming lives.
First established in Germany in 1885 and now one of the top 20 pharmaceutical companies in the world, Boehringer Ingelheim specialises in areas of unmet medical need in three business areas: Human Pharma, Animal Health, and Biopharmaceutical Contract Manufacturing.
Boehringer Ingelheim strives to develop improved therapies, healthcare products and services to ensure we all live in a better world. The company has plans to increase the scope of its social and environmental ambitions, aiming to explore what more can be done to contribute to a sustainable world and a healthier future.
The company attributes its success to scientific innovation, including investments in sustainable healthcare and technology to accelerate industry improvements.
Boehringer Ingelheim is currently pursuing more than 390 research collaborations in the
52 February 2023 BOEHRINGER INGELHEIM
CAPGEMINI HELPS BOEHRINGER INGELHEIM TOWARDS DATA-DRIVEN DECISIONS
The Dataland program was initiated to create the end-2-end data ecosystem that powers Boehringer Ingelheim's needs for data-driven decisions and to enable the use cases that drive innovation and efficiencies now and in the years to come. Capgemini supported Boehringer on their journey to the AWS cloud and in the implementation of use cases across all business domains.
Learn more
CAPGEMINI HELPS BOEHRINGER INGELHEIM IN A WORLD OF DATA
Ruth Lütticken, Director of Life Sciences, Data Science & AI, Capgemini, explains how data management is helping Boehringer Ingelheim to transform lives
Pioneering family-owned Boehringer Ingelheim is making use of cutting-edge data management services provided by Capgemini in its work on breakthrough therapies.
Boehringer Ingelheim specialises in areas of unmet medical need in Human Pharma, Animal Health, and Biopharmaceutical Contract Manufacturing. As part of its Dataland program, Boehringer Ingelheim invests in data-related initiatives to strengthen its foothold in the digital world. Leveraging data has the potential to transform drug development and the patient experience. Several units within the organisation were already successfully working with data, but Boehringer Ingelheim wanted to scale its usage across the entire company. This ambition required a strong technology foundation and modern infrastructure, as well as clear processes and responsibilities in the area of data governance.
“It is a cloud-based ecosystem that we’re building for our data needs not just for today but the years to come in the future,” explains Boehringer Ingelheim’s Head of Data Management, Bruno Rizzuti. “This project is designed to create a trusted environment not only for our regular use cases but also for those that require more, let’s say, flexibility and the capabilities that the technology in the cloud can provide.”
“There are many exciting use cases for data and human pharma,” says Ruth Lütticken, Director of Life Sciences, Data Science & AI, Capgemini. “I think since Covid 19, everybody knows how important that step is in developing new tracks.
Here the change was for the global feasibility managers at the country level to select a certain trial site for a certain trial phase.
So many factors and data will have to be considered, and this gives them a predictive modelling solution which is using internal but also external data to allow them to have data-driven site identification, which means they can reduce the time for the trial.” Learn
more
life sciences' community – representing more than 50% of its pipeline projects – and the company’s animal health business is now the second largest in the world, with more than 200 products for dogs, cats, horses, pigs, cattle and poultry.
To add to this, Boehringer Ingelheim is also investing €35bn in health innovation to tackle non-communicable diseases, as well as an additional €250mn in partnerships to combat emerging infectious diseases. Through its flagship initiative Making More Health, it has partnered with Ashoka, the largest global network of social entrepreneurs. To mitigate the environmental impact of its growing business, Boehringer Ingelheim has
committed to becoming carbon neutral in its operations and halving its resource footprint by 2030.
Driving innovation across the enterprise with advanced technologies
Boehringer Ingelheim is driving innovation across the enterprise and has focused on advanced technologies to discover new ways of introducing technology to core business processes. Big Data and analytics powered by AI allows the company to build new models and predictive tools that can have far-reaching impact on production processes, improving the quality, connectivity and availability of patient solutions.
“WE WORK TO MAKE HUMANITY BETTER, RIGHT? TO MAKE THE LIVES OF PEOPLE AND ANIMALS BETTER EVERY DAY”
Boehringer Ingelheim
56 February 2023 BOEHRINGER INGELHEIM
BRUNO RIZZUTI HEAD OF DATA MANAGEMENT, BOEHRINGER INGELHEIM
Bruno Rizzuti joined Boehringer Ingelheim in 2014 and took up his role as Head of Data Management in 2020. "I moved into the pharmaceutical industry when I was very young," says Rizzuti. "I had been working as a consultant on analytical processing systems, working with many clients in the pharma industry – which is how I got to know the industry so well – and then moved to Boehringer Ingelheim."
Inclusiveness in the industry has been a draw for Rizzuti, being one of the main reasons he joined the industry. “Big Pharma companies listen to their employees, as well – this is something you can immediately tell when you join a pharma company,” says Rizzuti. “Whether at Boehringer Ingelheim or another company, the standard in the industry is that the employee's voice is heard, based on the notion that this is important because happy people give better results."
Innovation is another attractive, industrywide aspect of the profession, according to Rizzuti. "You cannot survive in pharma if you don't innovate. You must innovate in new treatments and in new therapeutic areas. This is an industry that has innovation at its essence. And that also makes it a wonderful place to grow; you always have new challenges."
BRUNO RIZZUTI
TITLE: HEAD OF DATA MANAGEMENT
INDUSTRY: PHARMACEUTICAL
MANUFACTURING
LOCATION: BARCELONA, SPAIN
Bruno Rizzuti is currently the Head of Data Management & Data Engineering at BoehringerIngelheim with an extra passion about working culture, data-driven mindsets and technology scouting. His studies include Data Engineering, Data Science, Project Management and a little bit of Economics. In his free time, he exercises, studies technology, reads and plays videogames.
With over a decade of experience in Data & Analytics in the Big Pharma Industry and viscerally passionate about technology, he has his focus every day in what he considers the two most valuable assets of any organisation: People and Data.
52,000
Global workforce
130 Markets served by Boehringer Ingelheim
EXECUTIVE BIO
BOEHRINGER INGELHEIM
Migrating to the cloud is a journey and a huge paradigm shift
One of the biggest tech-related challenges facing the industry today is migrating to the cloud, not only from a technology perspective but also from a cultural perspective, says Rizzuti.
"When you embark on a journey to build an ecosystem and a data analytics platform that will serve you for the next five to 10 years, that’s a huge paradigm shift in comparison to how we've been doing things in analytics since the 80s and 90s."
The industry needs the kind of mindset changes that have already been introduced by data-driven professionals. “But you can't expect everybody in every position to have that mindset. One of the biggest changes that we're seeing nowadays is that it used to be enough for IT people to be on top of technology. Now, you need everybody on board to make such a change. And that requires an educational and cultural component in our IT roles.”
Rizzuti plays a key role in the area of data ingestion, which includes crucial data governance issues that should be incorporated into business planning at all stages.
“YOU CANNOT SURVIVE IN PHARMA IF YOU DON'T INNOVATE; YOU MUST INNOVATE IN NEW THERAPEUTIC AREAS”
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BRUNO RIZZUTI HEAD OF DATA MANAGEMENT, BOEHRINGER INGELHEIM
"Who will consume this data, for what purpose, and for how long? What are the different usages of this data? Having that in mind beforehand is key,” he explains. “Sometimes, people will jump into action without having a clear definition of who the data owner is, what the usage of this data will be, and what is the intended purpose – but all of that information is needed to provide the best tools to make the best of it. Otherwise, you end up having a 'data swamp' instead of a 'data lake', which eventually replicates errors from the past."
Global product teams work to uncover ideas and solutions
Boehringer Ingelheim has a workforce of more than 52,000 employees serving over 130 markets. In Germany, the company's New Therapeutic Concepts team in Biberach is introducing data and analytic tools to the early-stage drug discovery process. By working with some of the early findings and connecting those across projects, Boehringer Ingelheim can identify patterns that have the capacity to help multiple product teams uncover ideas and solutions that speed up the development process.
BOEHRINGER INGELHEIM
“THIS IS AN INDUSTRY THAT HAS INNOVATION AT ITS ESSENCE. AND THAT ALSO MAKES IT A WONDERFUL PLACE TO GROW”
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BRUNO RIZZUTI HEAD OF DATA MANAGEMENT, BOEHRINGER INGELHEIM
In Ingelheim, the company's Farmer team works with devices, data collection and systematic analytics to identify and isolate early signs of health problems that risk spreading through animal herds. The underlying data generated will simultaneously help identify inefficiencies that impact yields and farm productivity.
Meanwhile, the Mobinostics team is working with vets to develop mobile diagnostic and treatment solutions that allow greater reach and greater speedto-treatment for remote farms all over the world.
Ingelheim is also home to the company's BRASS (Benefit Risk Assessment System) project, which uses AI to conduct an initial analysis of adverse reactions to medications that have already been approved –identifying potential side effects and undesirable events – and offer a valuable decision-making tool for those working in pharmacovigilance, helping them process each case more quickly.
In Vienna, Austria, Boehringer Ingelheim's Smart Process Design team is leveraging the power of data to strengthen yields in previously unpredictable biopharma manufacturing.
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62 February 2023
Also in Vienna, the Biomarker-Based Patient Population project empowers experts within the company to identify biomarkers to better characterise patient populations for clinical studies. Being able to process and analyse large amounts of data creates the potential to select the right drug for a patient.
Based in Buenos Aires, Argentina, PetPro is one of the company's first digital products that directly addresses end users’ needs. PetPro Connect has been developed in close collaboration with the company's Animal Health business to connect pet owners and veterinarians, organise follow-up appointments via video chat, quickly and easily order medication refills, and benefit from bonus programmes.
Over in Spain, the company's Pathological Speech Processing team – based in Sant Cugat del Vallés, Barcelona – develops digital tools that facilitate the process of speech and language processing (SLP) by using machine learning and disease-customised algorithms. This will be used to analyse speech and language patterns, which can consequently be analysed to predict the development of mental diseases, such as the risk of dementia.
More Health, More Potential and More Green at Boehringer Ingelheim
Boehringer Ingelheim has defined three areas: More Health, More Potential and More Green – which are at the heart of a framework the
company calls Sustainable Development For Generations. The framework incorporates established initiatives, building these into more ambitious goals to increase the company’s impact on health, society and the planet. In doing so, Boehringer Ingelheim generates greater long-term economic and social value for stakeholders, the communities they serve and employees.
Through these focus areas, Boehringer Ingelheim can contribute to the creation of solutions for global challenges and help enable sustainable change. The impact in each area reflects its core business and aligns with the United Nations’ Sustainable Development Goals (SDGs). Sustainable development goes hand-in-hand with the company’s planning principles of taking responsibility for communities and the environment.
Big Pharma has big aims and ambitions, providing a daily incentive for everyone working in the industry at every level. "We work to make humanity better, right?" asks Rizzuti. "To make the lives of people and animals better every day. That's a difficult model to reject. It's definitely something that immediately gives you a sense of purpose when you're working in such an industry. It's a life science; it's all about taking care of people, taking care of animals.”
“IT USED TO BE ENOUGH FOR IT PEOPLE TO BE ON TOP OF TECHNOLOGY. NOW, YOU NEED EVERYBODY ON BOARD”
manufacturingdigital.com 63 BOEHRINGER INGELHEIM
BRUNO RIZZUTI HEAD OF DATA MANAGEMENT, BOEHRINGER INGELHEIM
JOHN SHIER, JOHN SHIER, SENIOR SECURITY ADVISOR AT SOPHOS, ON
John Shier is the Senior Security Advisor at Sophos. Here, he discusses ransomware and the results of Sophos’ ‘State of Ransomware in Manufacturing’ report
WRITTEN BY: HELEN ADAMS
64 February 2023
Since the COVID-19 pandemic, pets video-bombing online meetings have amassed millions of views. As such, when I meet John Shier on a video call, he’s not alone. “This is a little French bulldog that we're dog-sitting, and every once in a while he gets a little excited!”
Dog-sitting in Toronto is not Shier’s full time occupation – he is a Senior Security Advisor and Senior Research Scientist at software development company Sophos.
“I'm usually a Senior Security Advisor for the press, but what that really means is I work in the office of the Chief Technology Officer as a liaison as well as those of all the different research groups within the organisation,” Shier explains. “We have our Sophos labs that do threat research, our Sophos AI team, an anti-exploit team, and our MDR group, which generates intelligence through the activities that they do monitoring our customers' environments. A subset of that is the Rapid Response Group, which is our Incident Response Investigation Group.”
Shier takes all of that information, synthesises it and then contextualises it within the security industry. “I look at what we are seeing as a broader industry; how does that fit and how does security itself fit within it? The idea is to be able to hopefully provide advice on how to better protect individuals and companies, as we're all trying to navigate this crazy digital world.”
manufacturingdigital.com 65 DIGITAL MANUFACTURING
Get reliable network coverage and security protection, fast.
A modern network must be able to respond easily, quickly and flexibly to the growing needs of today’s digital business. Must provide visibility & control of applications, users and devices on and off the network and Intelligently direct traffic across the WAN. Be scalable and automate the process to provide new innovative services. Support IoT devices and utilize state-of-the-art technologies such as real-time analytics, ML and AI. And all these must be provided with maximum security and minimum cost.
This is the power that brings the integration of two cloud managed platforms, Cisco Meraki and Cisco Umbrella. This integration is binding together the best of breed in cloud-managed networking and Security. cisco.com
cisco CiscoSecure CiscoSecure
Sophos is a global leader and innovator of advanced cybersecurity solutions, which includes managed detection and response as well as incident response services. The company has a broad portfolio of endpoint, network, email and cloud security technologies that enable companies to better protect themselves and defeat cyber attacks.
Threats behind manufacturing cyber attacks
The difference between a cyber attack and a ransomware attack is simple: information gained in a ransomware attack is kept from the public and offered back to the victim for a price, whereas in a cyberattack, there is no offer of negotiation. But who are the people committing these attacks – pariah states or a lone wolf with a grudge or financial incentive to wreak havoc?
“IF A LARGE MANUFACTURER LIKE THAT GOES DOWN FOR ANY LENGTH OF TIME, THEN IT HAS THESE RIPPLE EFFECTS THROUGH THE SUPPLY CHAIN”
“IF A LARGE MANUFACTURER LIKE THAT GOES DOWN FOR ANY LENGTH OF TIME, THEN IT HAS THESE RIPPLE EFFECTS THROUGH THE SUPPLY CHAIN”
manufacturingdigital.com 67 DIGITAL MANUFACTURING
JOHN SHIER SENIOR SECURITY ADVISOR, SOPHOS
In Sophos's ‘State of Ransomware in Manufacturing’ report, they asked 5,600 respondents across 31 countries
68 February 2023
“I would say that it's fairly rare to have nation states behind ransomware attacks that are for profit,” says Shier. “Nation states are generally after information, they're not really in it to make money; they're gathering intelligence, state secrets, intellectual property and information about activists.”
Metal manufacturer Aurubis was hit by a cyberattack last year. “They believe it’s a part of a broader attack against the manufacturing sector – and this has impacted some of their IT systems,” he says.
But Shier saw one silver lining: based on the company's reporting, the Environmental Protection side of the business was only minimally impacted. “They were still able to ingest materials and ship materials. If a large manufacturer like that goes down for any length of time, then it has these ripple effects through the supply chain.”
Aurubis is the EU’s largest supplier of copper, so a delay in their production could have a fairly large domino effect on the manufacturing sector.
“Ransomware is a financially motivated crime, with individuals who are a part of an affiliate network.” In such cases, affiliate networks are the creators of the ransomware that provide the actual software doing the encrypting. They also provide other services like payment and negotiation services, as well as dashboards for victim management.
“There's another tool called X matter, which is also a data stealing tool that is being used by several different groups,” explains Shier. “It could be a single person that's part of this affiliate programme or it could be a bunch of people. You can also be part of more than one such programme. There's a whole bunch of these ransomware groups; as a group or an individual, you can participate in many
of these schemes. Generally, they take anywhere from 10-20%, then the affiliates themselves get the rest of the profit.”
Sophos's ‘State of Ransomware in Manufacturing’ report
Every year, Sophos conducts a global survey about the IT and security industry.
“We asked 5,600 respondents across 31 countries about what they wanted to find out more about. The answer was ransomware, the one threat that just refuses to go away.”
Sophos found that 55% of companies in manufacturing were hit in the reporting year of 2021, versus a global average of 66%.
“That's good in relative terms, because they're below the global average, but over half of the sector is getting hit and attacks appear to be increasing.”
Sophos also asked whether those who were hit by ransomware attacks paid the ransom or not and how much they paid. 33% paid, versus a global average of 46%.
“RANSOMWARE IS THE ONE THREAT THAT JUST REFUSES TO GO AWAY”
“RANSOMWARE IS THE ONE THREAT THAT JUST REFUSES TO GO AWAY”
DIGITAL MANUFACTURING manufacturingdigital.com 69
JOHN SHIER SENIOR SECURITY ADVISOR, SOPHOS
JOHN SHIER SENIOR SECURITY ADVISOR, SOPHOS
“This is not an indictment or criticism of the companies themselves, but this means that 33% of those companies are directly funding criminals. Sometimes, you just have to because it's incumbent on the survival of your business, so we fully understand that.”
A lot of this has to do with whether the company has reliable backups or cyber insurance.
Overall, Shier failed to find the results surprising.
“The problem I have as a jaded security guy that's been in this industry a little too long is that some of this stuff was not shocking to me. If you have a vulnerable service or exposed system, you will be found out by cyber criminals.”
For Shier, the results confirmed what he already knew – everybody is a target.
“THE IDEA IS TO BE ABLE TO PROTECT INDIVIDUALS AND COMPANIES, AS WE ALL NAVIGATE THIS CRAZY DIGITAL WORLD”
“THE IDEA IS TO BE ABLE TO PROTECT INDIVIDUALS AND COMPANIES, AS WE ALL NAVIGATE THIS CRAZY DIGITAL WORLD”
70 February 2023 DIGITAL MANUFACTURING
manufacturingdigital.com 71
A modern procurement platform for today’s business
manufacturingdigital.com 73
PRODUCED BY: MIKE SADR
IQUANTUM
WRITTEN BY: ILKHAN OZSEVIM
iQuantum is a global technology platform that uses AI & ML to enable innovation and procurement focusing on supplier diversity and ESG
Hetal Mehta is the founder and CEO of iQuantum Inc., a modular, modern procurement platform. As the leader of iQuantum’s woman and minority owned business, Hetal works closely with all internal teams, customers, partners, and the iQuantum Advisory Board of industry champions and practitioners.
Hetal Mehta’s journey into the industry
For many years, Mehta worked as a developer and consultant to procurement teams. Through that experience she recognised the need for a more sophisticated and user-friendly procurement solution, “one that does all the efficient and effective consolidations, automation and workflows – but also helps guide alignment between buying decisions and larger strategic corporate goals like increased diversity,” she says.
“My in-depth experience and understanding of supplier diversity led me to realise that customers struggle with finding appropriate suppliers and are prone to continuing business with existing ones – even if that is not ideal.
“With iQuantum our goal is to leverage machine learning and AI to provide a modern procurement platform with access to the largest global supplier database that includes diverse and sustainable supplier options. This helps customers build a more resilient and robust supply chain.”
iQuantum’s unique selling point
iQuantum Inc. is a modern Source-to-Pay platform designed to meet today’s procurement needs for Supplier Relationship Management, Diversity and ESG Sustainability tracking and reporting. They provide the tools and transparency to align spend decisions to strategic corporate goals.
74 February 2023
IQUANTUM
manufacturingdigital.com 75
HETAL MEHTA CHIEF EXECUTIVE OFFICER, IQUANTUM
Mehta says: “There is no single provider on the market who competes with us pinto-pin.” iQuantum is the only SaaS platform to provide:
• Complete Supplier discovery to Pay on one platform WITH modern ESG and full diverse supplier management.
• New supplier discovery from a database of millions of global suppliers to increase supply chain resilience and support new product introduction (NPI) sourcing
• Integrated supplier communication and collaboration with in-built Chat and conversation storage for future reference and context
• Modern approach to complete strategic sourcing for indirect, direct and new product introduction with internal team collaboration
• Rich contracts, procurement, and spend management analytics
• Integrated Tier 1 & Tier 2 Diversity and ESG Sustainability reporting and benchmarks
76 February 2023
“Prioritising diversity in your employees and your supplier base as a part of ESG is integral to the growth and future trajectory of the company – employees, leadership, investors, stakeholders, and customers seek brands that are improving their profiles”
• Government and Customer reporting along with Subject Matter Expertise by fine-tuning their diverse spend tracking and achieve the elite Billion Dollar Roundtable or BDR
• Diverse and small supplier visibility to iQuantum’s Fortune 500 customer base, including support for supplier marketing of their products and catalogues
• Modular licensing approach and enterprise interoperability to accommodate each customer’s needs, budgets, and existing system investments
• Single code base for quick implementation, easy maintenance, and simple configuration with a sophisticated, userfriendly user experience
• Access to global database of suppliers including diverse/non-diverse and green suppliers for procurement to add to supply chain and achieve savings
• Better alignment, reduced risk, and increased compliance across procurement, finance, and corporate legal
HETAL MEHTA
TITLE: CHIEF EXECUTIVE OFFICER
LOCATION: IQUANTUM
Hetal holds a BS in Electrical Engineering, and, prior to founding iQuantum, she logged more than 15 years of IT consulting experience with financial firms on Wall Street. Her technical background combined with her sharp domain expertise has been instrumental in building iQuantum; engaging industry-leading customers, attracting and mentoring top engineering talent, and delivering top-class business results, she has driven iQuantum’s growth over the years. Hetal Mehta has been recipient of Steve Awards and Women of the
IQUANTUM
HETAL MEHTA CHIEF EXECUTIVE OFFICER, IQUANTUM
The importance of diversity in procurement and supply chain and the role of iQuantum McKinsey reported that working with diverse suppliers leads to an 8.5% in cost savings, which is more than the 3 - 7 % savings most procurement organisations realise.
“Prioritising diversity in your employees and your supplier base as a part of ESG is integral to the growth and future trajectory of the company – employees, leadership, investors, stakeholders, and customers seek brands that are improving their profiles,” says Mehta.
Qualified diverse suppliers bring savings and better service to customers. Procurement leaders have recognised this, and are looking at ways to increase their diverse supplier base (increasingly Tier 1 and Tier 2 diversity reporting is becoming a mandate across different industry verticals).
78 February 2023 IQUANTUM
“Every purchase made needs to be aligned to strategic corporate goals and help to move the needle. Increased government regulation and consumer scrutiny of corporate brand spending has increased the need for a new procurement approach”
She says: “We see these two tiers in Manufacturing, and in Law firms it typically comes from customers setting goals to win RFPs, while for the Healthcare and Pharmaceutical industry the stimulus comes from the government and encourages organisations to negotiate diversity goals and to report them annually.”
iQuantum’s automated customer and government reporting solution is helping customers achieve this. “This automation,” says Mehta, “and our in-depth subject matter expertise in exclusion criteria rules, is also helping customers achieve their goals and get on to the prestigious Billion Dollar Roundtable BDR. Our global database of suppliers allows customers to source from new diverse suppliers to meet their goals.”
How iQuantum tackles modern business challenges
Businesses today need help driving alignment across divisions and teams. Core brand values and strategic goals need to be surfaced in all corporate decisions – but most importantly in spend decisions. Mehta says: “There is a critical need to meet the diversity spend and ESG sustainability goals being set by leadership and closely tracked by government regulators and investors.
“Our customers like to work with us due to our commitment to customer success, our responsiveness to customer needs and our budget-friendly pricing.” This approach relates to the findings in the McKinsey report concerning better savings and an enhanced overall experience when working with diverse suppliers.
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iQuantum: A modern procurement platform for today’s business
Supporting women-owned businesses
iQuantum has subject matter experts to partner with diverse businesses (women, minority, veteran, disabled, LGBT) around the globe to provide guidance on the certification options and process; enriching their supplier profiles to maximise their reach and relevance to upcoming RFQs (Request For Quotes) RFPs (Request For Proposals) and RFIs (Request For Information), or Direct Material Sourcing.
Mehta says: “We also assist certified businesses in getting catalogue-ready, to simplify enterprise purchasing of their products. Our regular supplier outreach, newsletter supplier spotlights and social media channels promote and support women, minority, and other certified businesses. It’s part of our mission and our DNA.”
Adapting to procurement developments
Procurement needs today have changed. They need a platform which addresses
McKinsey reported that working with diverse suppliers leads to an 8.5% in cost savings, which is more than the 3-7% savings most procurement organisations realise.
80 February 2023
IQUANTUM
HETAL MEHTA CHIEF EXECUTIVE OFFICER, IQUANTUM
today’s modern challenges of Diversity and ESG Sustainability tracking. “Every purchase made needs to be aligned to strategic corporate goals and help to move the needle,” Mehta says.
“Increased government regulation and consumer scrutiny of corporate brand spending has increased the need for a new procurement approach.”
“Customers benefit from our “Only Buy What You Need” approach which helps them avoid paying for unused functionality. Our rapid onboarding makes the user experience better and decreases the time to ROI.”
“If you are looking for a modern modular procurement platform to meet today’s procurement needs, iQuantum is the solution.”
manufacturingdigital.com 81 IQUANTUM
“Our customers like to work with us due to our commitment to customer success, our responsiveness to customer needs and our budgetfriendly pricing”
Quantum’s Strategy
iQuantum’s Strategy is best seen according to 3 main facets -
1. For Diversity, their approach is two-fold. Firstly, they want to help companies find, on-board and buy from diverse suppliers easily. Secondly, they aim to help diverse suppliers gain exposure to potential customers by giving them a platform to market their products and services
2. For ESG, iQuantum’s goal is to help make this an integral part of the company and not just an afterthought to meet reporting requirements. For example, they help companies assess their GHG emissions footprint early in their product development when designing new products or building new facilities
3. For Source-to-Pay, iQuantum’s goal is to make the entire process seamless. They provide a single platform upon which companies can execute all aspects of procurement, ie Finding suppliers (Q-Discovery), Qualify (via RFx and Direct Material Sourcing for Manufacturing), Onboard (Contracts), Procure (Order Management), Monitor (SRM), and Control (Spend Analytics), but also allow modular consumption. They also aim to help companies preserve their existing investments, if they require, by integrating with any systems they may already have installed
iQuantum’s outlook for the future
The Diversity market is moving from being driven by government mandates, to one where it is an integral part of company strategy. Mehta believes that iQuantum is, “in the early stages of realising the full potential of this market.”
She says: “For ESG, this is truly a nascent but swiftly developing market.
Companies simply don't have a good way of assessing their GHG footprint, and we are one of the few solutions that can help them achieve this. We see considerable promise in helping companies assess their environmental footprint.”
In the Source-to-Pay space, iQuantum’s customer conversations have proved that legacy procurement providers are not only unable to meet today's modern business requirements, but also have yesterday's UX. Mehta says: “We are solving this problem.”
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IQUANTUM
Finally, on the subject of regulations, Mehta says: “There are regulations going into effect and being defined every single day. We are keeping a constant eye on any changes that may impact rules, reporting, and best practices.
“iQuantum always keeps the SEC, SBA, CDP current, and up-to-date, helping customers to adapt and remain agile to the changing environment.”
HETAL MEHTA CHIEF EXECUTIVE OFFICER, IQUANTUM
manufacturingdigital.com 83
“There is no single provider on the market who competes with us pin-to-pin”
84 February 2023 TECHNOLOGY
IBASET’S MUNDI ON THE RISKS OF OUTDATED TECHNOLOGY
Rashpal Mundi, Senior Partner Manager for iBASEt EMEA, on how the manufacturing sector is changing and the danger of outdated technology
WRITTEN BY: HELEN ADAMS
Many of the most notable changes to the manufacturing industry over recent years relate to Industry 4.0. As manufacturers embark on their digital transformation journeys, new software, devices, and robotics have completely transformed the way manufacturers operate. The rapid influx of technologies and new processes has forced manufacturers to implement new
methods and procedures, often relating to the way they manage and utilise data.
The web of Industry 4.0 is only going to grow over the coming years, meaning huge amounts of data will be generated. This means it is essential that manufacturers secure a single source of truth for their data, while providing employees across the organisation access to the tools they need to analyse and make sense of it. If organisations
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cannot accurately examine their data then any insight will be lost, which will mean that making intelligent, data-driven decisions will be extremely difficult.
One such company simplifying how complex products are built and maintained is iBASEt. The company is on course to accelerate manufacturers’ move away from paper-based and manual processes to become digitally-enabled businesses. With iBASEt, the likes of Airbus, BAE Systems and Rolls Royce are
on a journey from the factory floor to a finished product, as efficiently as possible.
Rashpal Mundi recently joined iBASEt as Senior Partner Manager for EMEA. The company was a natural fit for him, having spent more than two decades working in the UK manufacturing sector.
“I have worked across the ERP and PLM solutions space, specialising in Aerospace & Defence and Automotive customers,” says Mundi.
“I spent almost a decade at Dassault Systèmes before my most recent position at Majenta Solutions, a Dassault valueadded reseller.”
Mundi is responsible for expanding iBASEt’s partner network across EMEA, which is a key part of iBASEt’s business strategy.
“OUTDATED TECHNOLOGIES AND A LACK OF INNOVATION ARE TWO OF THE TOP REASONS FOR PEOPLE EXITING THE MANUFACTURING INDUSTRY
”
manufacturingdigital.com 87 TECHNOLOGY
RASHPAL MUNDI SENIOR PARTNER MANAGER, IBASET EMEA
How to attract Gen Z talent in the manufacturing sector
The cornerstone of iBASEt’s digital operations suite is its Manufacturing Execution System (MES). The company has been recognised by Gartner as a leader in its MES Magic Quadrant.
“We also have specific solutions for Supplier Quality Management (SQM) and Maintenance, Repair and Overhaul (MRO), and provide professional services including business transformation, product deployment, upgrade and testing, and performance assessments and tuning,” explains Mundi. “Key industries we support include Aerospace & Defence, electronics, industrial equipment, medical devices, nuclear and shipbuilding.”
Mundi, however, is aware that digital reluctance could drive the next generation of talent away from UK manufacturing, while slow digital adoption will make it difficult to attract and retain talent.
“RELYING ON OUTDATED TECHNOLOGY MEANS MANUFACTURERS WILL BE PLACING THEIR ORGANISATION ON THE KNIFE EDGE ”
88 February 2023
RASHPAL MUNDI SENIOR PARTNER MANAGER, IBASET EMEA
“It’s now mission-critical that UK manufacturers overcome digital reluctance,” says Mundi. “They need to be doing everything they can to ensure smart, smooth operations as the industry faces up to recession and spiking energy costs. Putting these challenges aside, digital reluctance is also putting the next generation of talent off working in the industry.”
The manufacturing industry is rightly proud of the higher education opportunities and graduate schemes that exist, but the talent production line hits a problem when people arrive at the workplace.
“If fresh recruits find themselves stuck using legacy technology or paper-
based processes, then inevitably they will become frustrated and discouraged,” says Mundi. “This is borne out in our research, which shows outdated technologies and a lack of innovation as two of the top reasons for people exiting the industry.” Mundi believes that it is essential for manufacturers to position themselves as an attractive place to work, and technology is central to this.
“To avoid losing employees and attract Gen Z talent, a commitment to digital can demonstrate manufacturing is a progressive industry to work in. This means using technology to eliminate repetitive tasks and provide crucial insight that fuels intelligent decision-making.”
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90 February 2023
TO AVOID LOSING EMPLOYEES AND ATTRACT GEN Z TALENT, A COMMITMENT TO DIGITAL CAN DEMONSTRATE MANUFACTURING IS A PROGRESSIVE INDUSTRY ”
RASHPAL MUNDI SENIOR PARTNER MANAGER, IBASET EMEA
As a US-born company, iBASEt naturally has a strong domestic presence. At the same time, it’s growing internationally, with offices in the UK, France and India; a third of its customers are now EMEA-based.
“The UK plays a pivotal role in our wider EMEA strategy, and we are committed to helping the UK’s manufacturing industry harness the power of digital,” says Mundi. “Our research has uncovered that 94% of UK manufacturers believe the industry has fallen behind the US due to a lack of digital investment, and we are keen to help them catch up.”
iBASEt has partnered with the MTC for a number of years now, demonstrating its commitment to fostering technologydriven innovation and collaboration across the UK manufacturing sector.
“This is a long-term partnership, with our Digital Operations Suite, powered by Solumina iSeries, available to researchers and members of the MTC’s National Centre for Advanced Manufacturing Technologies,” says Mundi.
This is just one example of the positive steps iBASEt is taking to drive change as a part of its long-term commitment to the region.
The danger of outdated technology in manufacturing Mundi believes that if the UK manufacturing industry fails to collaborate, innovate and accelerate its digital journey, the gap between the UK and US manufacturing industries (as outlined earlier) will widen.
“With 93% of manufacturers believing a lack of digital investment poses the risk of going out of business in the next decade, it’s clear that time is of the essence,” he says.
The continued use of pen, paper and spreadsheets for increasingly complex operations poses a huge risk and is not feasible. With consideration as to how complex major nuclear and space projects are – with hundreds of adjustments and changes being made along the way – it’s hard to believe some of them are still being run via spreadsheets. At best, this approach can create inaccuracies and increase the risk of human error, but at worst, it could lead to project failure and leaders losing their jobs.
“Relying on outdated technology means manufacturers will be placing their organisation on the knife edge and will see their more tech-savvy and advanced counterparts continuing to take their contracts away,” warns Mundi.
“
manufacturingdigital.com 91 TECHNOLOGY
SAP’s Sam Castro on AI and risk resilience in manufacturing
WRITTEN BY: HELEN ADAMS
PRODUCED BY: LEWIS VAUGHAN
92 February 2023
manufacturingdigital.com 93 SAP
SAP’s Sam Castro is a solution manager for Digital Manufacturing. He tells us about AI, risk resilience and supply chain sustainability
SAP is a global software provider and a leader for enterprise business process software, including solutions to manage supply chains. SAP provides technologies, supports the cloud and cloud platform environments, as well as artificial intelligence/machine learning (AI/ML) libraries, robotic process automation (RPA) and in-memory technology for high-end computers. SAP’s solutions for manufacturing execution and insights are part of a portfolio of products for supply chain management and leverages these technologies.
“We're an enterprise business software and a technologies company,” says Sam Castro Senior Director, Solution Management, LoB Digital Manufacturing.
Castro is a Senior Director at SAP and a part of the line of business manufacturing solution management team. The line of business covers the 27 manufacturing industries for which SAP provides software solutions.
“All of those industrial companies have needs around operations visibility, control and reporting,” Castro explains. “The different industries have different targets that they're after. Some are heavier on the asset side, some of them are heavier on product quality and yields, others are all about logistics and moving products around on-time through the supply chain.”
SAP is met with a diverse set of requirements and needs from its customers. Solution management takes these industry needs and applies them to market direction and invests them in the portfolio.
“We provide guidance on where to focus and the emphasis for development, and that strategy big picture where we want to take the products,” Castro explains.
In college, Castro completed a Bachelor's in computer engineering and a Master's in computer science at the Rochester Institute of Technology (RIT).
“I came from the hardware bridge to the software bridge very naturally after graduating,” says Castro. “I was dropped into the manufacturing floor because that is exactly where the hardware automation side bridges over into the software.”
He was faced with a great deal of information and digital signals from the automation layer and was tasked to turn it into information — how does SAP make that translation?
“I started at the very lowest level and moved my way through Lighthammer Software, which was acquired by SAP back in July 2005,” says Castro. “I worked my way through SAP into the role that I'm in today.”
“Being a sustainable enterprise means that you're an efficient enterprise”
94 February 2023 SAP
SAM CASTRO SENIOR DIRECTOR, SOLUTION MANAGEMENT, LOB DIGITAL MANUFACTURING, SAP
manufacturingdigital.com 95
Sam Castro is Senior Director of Solution Management, LoB Digital Manufacturing at SAP
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SAP’s Sam Castro on AI and risk resilience in manufacturing
actually add up to, and how that impacts the business financially, is one of the key topics around what customers will hear about resiliency from SAP, says Castro.
“Sustainability is an overlay to that, sustainability is a byproduct of efficiency,” says Castro. “Being a sustainable enterprise means that you're an efficient enterprise. If things are running effectively, things are running safely, and in a very energy-friendly manner as well.”
Castro views the impact of the cloud on manufacturing as a positive one.
“There are benefits for the IT team from a maintenance perspective and a continuous update and management of that software package,” he explains.
Cloud users are not dealing out of sync or outdated documentation, they’re not dealing with security issues that creep into the environment over time. Updates and patches are handled in real-time by the
cloud hosting and software provider, that SaaS provider in the cloud environment. Castro views offloading that burden from the manufacturing layer and the IT teams that support them centrally and locally as a big deal for organisations and businesses.
“It keeps that barrier to entry for managing efficient production and tracking off of those teams, and it puts it firmly on the shoulders of the software provider. What does that mean for the business? It means that the end users aren't working with stale software. You're not working with software that has a UI from 15 years ago. You're not working with an ad-hoc analytical environment that used to be cool but now uses plug-ins and stuff that your browser doesn't support and ultimately causes it to have problems,” Castro explains.
As businesses are not dealing with these issues from the end user perspective,
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Risk resilience and sustainability in the supply chain
When you talk about risk resilience at SAP, it’s about how to handle the real world, not setting up a plan and adhering to it day in and day out.
“You would like it to be like clockwork, for sure,” says Castro. “Where everything always aligns and meshes the way that it's supposed to all the time, every second. But we know that's not always the case.”
Weather events, pandemics, labour shortages or large sporting events can cause
“Here are the enablers of AI and ML type algorithms that you can use and put together how you see fit”
SAM CASTRO SENIOR DIRECTOR, SOLUTION MANAGEMENT, LOB DIGITAL MANUFACTURING, SAP
2022
98 February 2023 SAP
€27.84bn Total Revenue (Non-IFRS) in FY2021 1972 Year founded
50th Anniversary #1 Software company in Dow Jones Sustainability Index for 15 years
supply chain issues. For Castro, resiliency is the byproduct of having to have to handle these off-topic or out-of-sync scenarios and the ability to detect that you're out of sync with the original plan and react to it in a coordinated manner.
“The faster you can do that, the faster you can correct that problem,” says Castro. “Then you’re able to identify how often those deviations occur — that frequency of occurrence, that is your opportunity.”
Being able to quantify that opportunity and understand what those little deviations
SAM CASTRO
TITLE: GLOBAL VICE PRESIDENT, CENTRE OF EXCELLENCE
INDUSTRY: MANUFACTURING
LOCATION: PENNSYLVANIA, US
Sam Castro joined SAP in July of 2005 with the acquisition of a small company called Lighthammer. He was responsible for implementation consulting, field enablement, custom development, and training for the core products (Illuminator, Xacute, UDS, CMS). These products have since evolved into the core SAP Connected Manufacturing products (Mfg. Integration & Intelligence or MII and Plant connectivity or PCo) that you see today.
EXECUTIVE BIO
Sam is now part of SAP LoB Manufacturing Solution Management group, which is directly responsible for strategy, direction, and customer adoption of all of the manufacturing products at SAP. He is specifically responsible for Industrial Analytics, that is SAP MII, Digital Manufacturing for insights, and Digital Manufacturing for execution, and he is the solution owner for Process MES products. In this role, he is actively working on mid- and long-term features and deliverables and how they are positioned with the broader SAP portfolio; he also provides guidance for product development investment.
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they're able to take advantage of a very modern, easy to consume and use software experience and focus on their core business functions.
“Despite not directly interacting with it, the work around you is what's driving that environment for you,” says Castro.
“You're not putting that burden of three or four extra clicks on somebody, this is just software that's being driven from digital signals; from integration, automation, and the tasks that the operator is performing.”
This newer approach to software design is how SAP leverages the industry investment companies have made and it is what's ultimately reducing the impact that end users have on that environment themselves.
How manufacturers can focus on business value versus technology
There are different pillars within organisations, which have their own priorities. CEOs, CIOs, CTOs and CFOs are all working together and have overlapping needs that drive different business cases. But they need to have the right information at the top layer to make the right decision for the lowest layers within the organisation. This doesn't happen unless there is a framework in place for the distribution and analysis of the data that is generated, from the very edges of the manufacturing and supply chain processes to the shop floor.
“If you don't have a way for that information to work its way up to the top, organisations really struggle to understand where the priority needs to be,” says Castro.
112.6K+ employees worldwide (Sept. 30, 2022) 160 number of countries 22K+ partner companies 245mn+ Subscribers in SAP’s cloud-based user base 100 February 2023 SAP
For manufacturers to focus on business value versus technology, Castro believes that they need to intelligently manage profitability
and investments. As a result of that additional profitability, they also need to protect that inflow of money and profitable behaviour for the company.
“Is that a CapEx investment? Is it an OPEX investment? Is it better granularity on product quality and an emphasis on quality for certain products or certain areas within a process that are very tricky and cumbersome?” asks Castro. “Maybe it's a new product that you're introducing and as a result, that process isn't fully stable yet. What is the emphasis in how much we put into that project to stabilise it? Those are the goals that are very coveted from the C-suite down, but they really are reliant from all edges of the supply chain and having that information roll all the way up.”
“Sustainability is an overlay to that, sustainability is a byproduct of efficiency”
SAM CASTRO SENIOR DIRECTOR, SOLUTION MANAGEMENT, LOB DIGITAL MANUFACTURING, SAP
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SAP MII and ME 24/7 Support
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Enterprise-led manufacturing follows in tune with this exactly.
“The enterprise has to provide guidance to the manufacturing and supply chain teams as a whole,” says Castro. Where they want to see improvements and how much they're willing to invest in those improvements, what's it worth? How do you build that community up?”
To understand the role that manufacturing plays in an organisation’s reinvestment strategy, you must first understand where it matches up with other locales in the manufacturing environment.
“Manufacturing isn't just a single-faceted environment. It's often made up of plants that have been around for a long time, some
that were built up by your own organisation, some that came into the organisation through acquisition,” says Castro. “So you see different heritages and mentalities. They have this communal approach for how the plant manager wants to lead that group in the business forward.”
SAP’s AI standardisation journey
At SAP, being able to take advantage of AI standardisation in a universal way is important.
“You can take and apply these very technical algorithms in order to get information off them. Here's the technology, here are the enablers of data, here are the enablers of AI- and ML-type algorithms that you can use and put together how you see fit,” says Castro. “Then that carries over into the
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application side, which says, we know we have these technologies, we know that this data is being generated from our transacting processes, so we have our own structured analytics pieces and now we can use these structures to drive our own models to influence our execution process.”
SAP has global partners, as well as local partners, who rely on its technology. When Castro talks about partnerships, he does not put one partner over another.
“We try to keep the community as open as possible,” he says. “We try not to promote one partner over another, because they're all very important to us.”
The openness of SAP and the openness of its software is for its customers to take advantage of, but also for their partners to put their own industry expertise behind.
“It is what gives SAP the power that we have to leverage in our own technologies to leverage partner-led innovation using those technologies to intelligently power our applications.”
“ You want it to be like clockwork, where everything always aligns. But we know that that's not always the case”
104 February 2023 SAP
SAM CASTRO SENIOR DIRECTOR, SOLUTION MANAGEMENT, LOB DIGITAL MANUFACTURING, SAP
manufacturingdigital.com 105
Henderson, Head of Product Solution Consulting at EMEA Intelex Technologies, discusses the company’s ESG efforts and sustainability initiatives
WRITTEN BY: HELEN ADAMS
BEN HENDERSON, INTELEX TECHNOLOGIES,ON ESG SUSTAINABILITY&
ESG (Environment, Social, Governance) is undoubtedly one of the hottest business topics in the manufacturing sector. With increased scrutiny from regulators, investors and the public, ESG has seen a meteoric rise in recent years. Meeting ESG targets is now
business-critical for many organisations, which is where software development company Intelex Technologies comes in. Intelex is a global leader in environmental, health, safety and quality management (EHSQ) software. The company has developed powerful digital solutions to help organisations
Ben
106 February 2023
in industries around the world deliver on their ESG commitments and sustain their compliance with international EHSQ standards and regulatory requirements.
“At Intelex, we’re committed to driving forward our own ESG efforts and improving our sustainability initiatives, playing our part in helping meet our net-zero goals
to create a more sustainable future,” says Ben Henderson, Head of Product Solution Consulting at EMEA Intelex Technologies. “We know first-hand the importance of being able to evidence actual delivery on these promises in real and meaningful terms to all our stakeholders – our leaders, our people, our clients, our supply chain
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Intelex: Working Together for Safer, Cleaner, More Efficient Business
partners – demonstrating compliance, accountability and transparency.”
Intelex’s web-based platform and applications enable almost 1,400 clients in 195 countries to manage, measure and report on their EHSQ and ESG programmes effectively and efficiently, enhancing business performance, sharpening competitive edge and driving commercial success.
“We believe that the greatest impact we’re having on ESG and sustainability is by helping our clients improve their efforts and initiatives through effective reporting,” explains Henderson. “Our ESG management software helps organisations gain valuable visibility about their performance against a range of different metrics – from emissions to worker safety.
“OUR RESEARCH SHOWS THAT ONE OF THE CHALLENGES ORGANISATIONS
FACE IS HOW WELL THEY CAN MEASURE ESG PERFORMANCE IMPROVEMENT METRICS”
BEN HENDERSON HEAD OF PRODUCT SOLUTION CONSULTING, EMEA INTELEX TECHNOLOGIES
manufacturingdigital.com 109 SUSTAINABILITY
Ben Henderson Head of Product Solution Consulting, EMEA Intelex Technologies
110 February 2023
This enhanced factual perspective in turn leads to greater insight as to which aspects of their current ESG strategy are working and which might require further attention.”
ESG efforts and sustainability initiatives at Intelex
According to Henderson, there is a significant difference in ESG maturity, with Europe being around two years ahead of North America. But even with this notable discrepancy, there is still a long way to go before there is anywhere near the level of maturity in other areas, such as health and safety.
“The regulatory framework is a factor here – with organisations not facing equivalent ESG compliance requirements compared to those in health and safety,” explains Henderson. “A key challenge faced by those working in the industrial and consumer manufacturing sectors is ESG performance measurement. In essence, many companies are struggling with data and are not easily able to put together a complete picture of their ESG efforts.”
Henderson understands why organisations are struggling to collect the data they need to deliver key reports for regulatory purposes. “Our research findings show that 48% of companies in the consumer and industrial manufacturing sectors are using separate solutions, or basic software such as Excel and even – in extreme cases – no digital methods at all.”
Using a dedicated software solution for ESG management can act as a catalyst for organisations to get their ESG practices on track and drive-up business performance. “Giving sustainability managers and other ESG professionals the necessary data to inform their decision-making creates a virtuous circle: helping secure buy-in
from colleagues for their ESG initiatives –internal support that is vital for determining successful uptake, practice and outcomes.”
Intelex surveyed more than 700 EHS and ESG professionals across Europe and a wide range of sectors. It's clear that the greatest challenge faced by organisations is getting their employees on board with ESG initiatives.
“According to our research findings, over a third of businesses report that the key challenge they face is internal support of and adherence to their EHSQ and ESG efforts. This issue is one that is fundamental to corporate culture. How do you drive engagement to get people at every level to play their part and own the challenge of improving how the business operates?”
Ultimately, Henderson believes that bringing people on board with EHSQ and ESG initiatives means removing barriers to engagement.
“Our experience shows that the key to this is having the right tools and the right data at your fingertips, alongside the correct training and engagement with the workforce to ensure everyone is on board from the outset,” he says. “Often, we see an organisation’s EHSQ and ESG data located in a mismatch of software, and we have found that most organisations are using solutions that aren’t fit for purpose, meaning they are unable to put together a complete picture of ESG activity.”
Post-COVID-19 business recovery
The COVID-19 pandemic was a reality check for businesses who, up until that point, had been reluctant to embrace digital transformation and suddenly found themselves unprepared for the increasingly digitised world that lay ahead.
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SUSTAINABILITY
“There has now been a clear shift in the way in which people work, with employees expecting to not have to come to the office five days a week and, as such, companies need the digital architecture to be able to deal with this,” says Henderson. “Our research found that between 15-33% of companies in the consumer and industrial manufacturing sectors across Europe are still taking paper copies to manage every
part of their EHSQ and ESG initiatives, from sustainability and air emissions to incidents and risk management. Only 31% of respondents use in-house technology that’s specifically designed for such specialist monitoring and reporting purposes.”
Businesses now are operating in a world where there is no longer expectation for employees to be in the same location –especially management. It’s therefore becoming more important than ever that
“
THE GREATEST IMPACT WE’RE HAVING ON ESG IS BY HELPING OUR CLIENTS IMPROVE THEIR EFFORTS AND INITIATIVES THROUGH EFFECTIVE REPORTING”
BEN HENDERSON HEAD OF PRODUCT SOLUTION CONSULTING, EMEA INTELEX TECHNOLOGIES
manufacturingdigital.com 113
EHSQ and ESG professionals can access automated data, with reliable, real-time reports enabling them to spot trends and potential issues.
“Using non-specific EHSQ and ESG technology, or – in the worst-case scenarios – depending on paper-based approaches can mean a lag-time in reporting and that information is immediately out of date, potentially even inaccurate,” says Henderson. “Cloudbased software, such as Intelex’s platform and applications, ensures both accuracy and ease of access. These solutions mean that any incident on the ground is reported in real time, giving those who
“ONLY 31% OF RESPONDENTS USE IN - HOUSE TECHNOLOGY THAT’S SPECIFICALLY DESIGNED FOR SUCH SPECIALIST MONITORING AND REPORTING PURPOSES”
BEN HENDERSON HEAD OF PRODUCT SOLUTION CONSULTING, EMEA INTELEX TECHNOLOGIES
114 February 2023
SUSTAINABILITY
need it instant visibility and meaning they can react quicker to stop such incidents happening again.”
During his time at Intelex, Henderson’s biggest lesson in ESG has been how important the role that data collection and analysis plays in supporting the ESG efforts of organisations who have shifted their focus to environmental performance.
“Our research findings show that one of the other great challenges many organisations face is how well they can measure ESG performance improvement metrics,” Henderson explains. “For many of the people I speak with, the challenge here continues to be disconnected data – we found that just 13% of respondents to our survey have a fully integrated and connected ESG system. By this, we mean one that can take feeds from IoT devices that use APIs to connect to other systems and include big data analytics to help them make sense of events. The good news is that many companies out there have managed to link their ESG-specific applications together. This should offer a solid foundation for further progress.”
Yet Henderson finds it concerning that the majority of organisations are still using separate pieces of software such as Excel and SharePoint to manage their ESG programmes.
“The use of disconnected, non-specialist software is a sub-optimal solution and offers an important insight into why, as mentioned, the number one challenge respondents face is how well they can measure ESG performance improvement metrics.”
At Intelex, the next 12 months will focus on identifying gaps in the tools available to track the impact of a businesses sustainability efforts and advancing tracks for regulatory compliance. “As organisations grow their maturity in ESG, we plan to grow right along with them,” concludes Henderson.
manufacturingdigital.com 115 SUSTAINABILITY
PRODUCED BY: TOM VENTURO
116 February 2023
WRITTEN BY: HELEN ADAMS
UPG ENTERPRISES ON DIGITAL TRANSFORMATION AND AUTOMATION
manufacturingdigital.com 117 UPG ENTERPRISES
Joe Madda is the CIO at UPG Enterprises which works across steel services and logistics. Here, he discusses security, digital transformation, and automation
UPG Enterprises provides shared services across a series of companies that it owns, primarily in the steel service centre and logistics industries. The company also provides technology enablement - from IT to - from IT and HR to finance and marketingwhile looking for areas where it can introduce new, more mature processes to help the businesses it owns run more successfully.
Joe Madda is the CIO at UPG Enterprises and has been with the company for two years. In his role, he oversees the IT teams, which are made up of a help desk and infrastructure team, a digital marketing team, an enterprise services team, and a data services team.
“I've always been interested in technology,” Madda says. “Even as a kid, I always had computers and tinkered with them to figure out how they worked. That got me into programming.”
How automation can build more efficient teams UPG Enterprises’ cloud migration has been an interesting journey, according to Madda.
“We've grown the business and, as we acquire new companies, some of them have varying degrees of maturity in their own processes and their own technology,” explains Madda.
Due to this, UPG Enterprises has inherited several different varieties of tech maturity, as well as areas for improvement.
“When I joined UPG two years ago, we had to get a real lay of the land. IT teams were scattered and not connected. I had a help desk team that was helping
118 February 2023 UPG ENTERPRISES
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UPG Enterprises on digital transformation and automation
to keep the organisation running, but we never really did the deep dive into each of the businesses and saw how they managed from a technology perspective, or what level of process maturity they had in place.”
As a result, the company spent time looking at where there were areas for improvement. Eventually, Madda and his team developed a strategy to create a more stable and scalable infrastructure. This strategy allows them to introduce newer technologies faster and develop better operating practices.
“We have 27 locations throughout North America, two in Canada, one in Mexico and the rest are in the continental USA. Each
“They're a trusted partner, especially when it comes to networks and security”
120 February 2023 UPG ENTERPRISES
JOE MADDA CIO, UPG ENTERPRISES
of those has presented its own unique set of challenges that we inherited, and these facilities are not the best environments for hosting technology. These are steel service centre facilities that don't always have the cleanest, most stable environment.”
Madda got to work identifying missioncritical systems and what systems could not afford to have any downtime. Data was shifted into data centres or into cloud facilities.
“Part of the cloud migration strategy has been around consolidation,” Madda adds.
“We identify where there's a tonne of fragmentation within our business and where we can try to keep it simple.”
Automation processes play a huge role at UPG Enterprises in several areas. One specific area of focus is on the IT process and data. Since UPG is spread across 14 businesses and 27 locations, the company has a real need for efficient ERPs.
“One of the things that we've really focused on is the automation of pulling all this data together into a centralised location, where we can aggregate the data and make it visible,” says Madda.
UPG Enterprises creates a level of visibility for the business that it lacked in the past, even on an individual level. However, through automation, data can now be pulled from each of these systems,
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cleaned, aggregated and reported to each of the businesses in whatever format they need.
“As a holding company, UPG needs visibility to data. So, that's been one area of automation,” says Madda. “On the IT front, we have made tremendous strides to assimilate and use our current systems in order to pull in and use the data that we have available today, like our ERPs and our HR system.”
To ensure that people can communicate properly and as needed makes a difference. On the IT and data side, there’s been a heavy focus on automation, removing fragmentation and creating consistency across the business.
Since UPG’s business focus is on manufacturing, there is a lot of opportunity for automation on the operations side of the business.
“With the adoption of robotics, system consolidation and creating better visibility, we can make better decisions with realtime data,” says Madda. “The adoption of the hardware that will help make us more efficient is not the sort of thing you can do overnight. This is about creating efficiencies and enabling our workers to work smarter. Ultimately, our people are our greatest asset.”
For Madda, it's not about cost cutting, it's about creating an efficient way of working so that the teams can run faster. Automating more repetitive tasks, especially in manufacturing, can achieve this and achieve safety.
“Cybersecurity is an ongoing task, it never ends and there's always bad guys looking for new vulnerabilities”
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JOE MADDA CIO, UPG ENTERPRISES
Cybersecurity and digital transformation at UPG Enterprises
However, in cybersecurity there is no room for cost-cutting. Automation, at least, is not a moving target.
“Cybersecurity is an ongoing task, it never ends,” says Madda. “There's always bad guys looking for new vulnerabilities.”
At UPG, the team has a strategy: first and foremost is just to create visibility.
“We need to know what's going on in our network,” says Madda. “We have several facilities, we have lots of systems.”
By creating a consistent infrastructure and ecosystem while removing fragmentation across their businesses, UPG is able to remove some of the guesswork.
“We know that if we're managing through a single provider, then we can ensure that everybody has safeguards like MFA turned on and we can enforce that,” says Madda. “By creating visibility, it allows us to make better decisions and ensure that there are certain things that we don’t have to worry about, because it is not optional.” Digital transformation is something else that UPG has been focused on over the past few years.
“This industry is not always at the forefront of technology adoption “ admits Madda. “By demonstrating the value of digital transformation and what we can accomplish through that, it will sway our teams to adopt new technologies.”
One of the things that UPG introduced to its data services team was Tableau, which allowed the company to create a robust reporting package available to its user base.
“It's available to our ownership and management,” says Madda. “It creates visibility at a level that they just never had before. This allows us to make better decisions and react to changes in the environment quickly.”
UPG ENTERPRISES
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14 BUSINESSES UPG Enterprises is spread across 14 businesses and 27 locations manufacturingdigital.com 125
EXECUTIVE BIO
TITLE: CIO
INDUSTRY: MANUFACTURING
LOCATION: UNITED STATES
Joe Madda is a Chief Information Officer with 20+ years of experience, a proven track record of leadership, transformation and delivering solutions to drive efficiency, visibility, and accuracy across organisations. Mr. Madda has served as a CIO and as a top technology consultant in multiple
industries, giving him the unique perspective necessary to identify areas of opportunity and efficiency. Throughout his career, he has been equally strategic and tactical allowing him to lead and contribute in the boardroom, architecture discussions, and code reviews.
Mr. Madda holds a B.A. in Management Information Systems (MIS) from Creighton University and M.S. in Information Systems with honors from DePaul University.
Joe Madda
For UPG Enterprises, having visibility tools at their fingertips makes them a better company. Although educating employees can be a slow process, enabling them to understand the value of digital transformation is worthwhile and ensures stronger workplace cohesion.
Partnerships for strong networking and security
UPG Enterprises has had a partnership with IT company ACP for for two years.
“They're a trusted partner that we use for both our hardware provisioning and their expertise in technology,” explains Madda. “Especially when it comes to networks and security.”
The computer and network security company Fortinet is another partner of UPG. They help UPG identify and adopt best practices in the world of network security and networking.
“Fortinet has a great suite of products that work well within our environments. We rely on them to educate us on the best way these systems should be rolled out, which keeps our system secure as well as keep us up-to-date on potential threats.”
UPG Enterprises has made investments in newer technologies, specifically around Fortinet, as the company uses a lot of Fortinet's products. Both businesses have educated UPG on best practices, training teams to be self-sufficient and helping to roll out platforms.
“They have helped us to create this ecosystem, which is stable and scalable as we continue to grow.”
As a company that has had rapid growth and frequent acquisitions, it has been extremely helpful to have
a playbook so that the acquired companies can quickly and easily be integrated into the IT environment.
“We have to have a repeatable process in place that allows us to absorb more companies,” says Madda.
Madda believes that the essential ingredient to a successful partnership is one where the lines are blurred between the vendor and the client.
“When we started this process, we were looking for partners, not vendors. We wanted our partners to be an extension of our team. We wanted organisations that we could have open and honest conversations with about our needs and the solutions that they can deliver, and ultimately trust,” he says. “Those are the best and most essential ingredients for a successful partnership.”
Over the next 12 months at UPG Enterprises, Madda and his team will continue to build out a strong foundation for the company to grow on.
“We have very diverse businesses,” he says. “We have very diverse environments, and diverse systems. Some fragmentation within our systems is unavoidable. So, we do need to determine how to make an environment work as seamlessly as possible with all that diversity and fragmentation.”
For 2023, Madda’s expectation is that UPG Enterprises will continue to grow both organically and through further acquisition, so they need to have a stable foundation. These partnerships have been very valuable in helping prepare UPG for that growth.
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Fullwood 10
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Fullwood aims to support the dairy sector by uplifting welfare standards for animals as well as farmers. Fullwoods top service agility and intelligent manufacturing helps farmers maintain herds of healthy and productive cows.
Established in 1785, Fullwood has global operations in Belgium, Czech Republic, France, Ireland, Netherlands and the UK. Its milking machine was built in 1948, helping dairy farmers to work more efficiently.
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Established in 1998 and headquartered in Tianjin, China, LOVOL Heavy Industry Co., Ltd. manufactures off-road mobile machinery used in agriculture, as well as construction. It has 15,000 employees and engineering bases across Europe and Japan, as well as manufacturing bases in Europe and Russia.
In China, LOVOL is celebrated as a ‘National Key High-Tech Enterprise’, and its top equipment has been awarded titles such as ‘Chinese Famous Brands’ and ‘Most Competitive Brand’.
Lovol Heavy Industry Co., Ltd
Wagner Systems Inc
The automation machinery manufacturing company Wagner Systems Inc. makes protective coating for equipment used across the ‘ACE&T’ market (Agriculture, Construction, Earthmoving & Transportation). The company has the highest regard for safety requirements, as well as quality.
The ‘ACE&T’ market includes forklift trucks, tractors and combine harvesters, as well as trucks, buses and mobile homes. WAGNER’s unique coating, bonding and sealing solutions are made to guarantee prime results to protect equipment and deliver top results.
CLAAS
As one of the top agricultural engineering equipment manufacturers, CLAAS is working hard in over 140 countries, with 12,000 employees, to keep the sector running. Its high-tech products – such as harvesters, tractors and balers – meet the increasing demand from farmers for energy-efficient equipment. CLAAS’ machines are equipped with smart technology to help farmers communicate, coordinate their work and deliver on time. The company is on a mission to shape the development of electronics and software in the agricultural sector.
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08 07 08 07
TOP 10 Learn how one of the largest forklift manufacturers accelerated innovation with Infor CloudSuite®. The Journey to Smart Manufacturing starts with a Cloud-enabled Modern ERP © Copyright 2022. Infor. All right reserved. infor.com Watch customer story
TTQ
Headquartered in Toowoomba, Queensland, TTQ was founded in 1996. It offers equipment for the farming industry that is new or used, as well as providing an option to hire a large range of quality parts. All of these items are primed for the tough Australian conditions, because TTQ is passionate about durability, which feeds into sustainability. High-grade steel is used not just for strength, but also to make its equipment last longer.
AGCO Corporation
As a global leader in the manufacturing of smart solutions for sustainable agriculture, AGCO offers farmers a range of tractors, combine harvesters, seeding and tillage implements, grain storage and protein production systems.
With over 20,000 employees across 35 countries, AGCO Corporation is determined to support the world’s growing population with more effective farming. AGCO has invested over US$300mn in its Chinese factories, which CEO Martin Richenhagen describes as one of the world’s largest farm equipment markets.
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GEA Group 04
There are now 17 different types of non-dairy milk, from coconut to pea. Dairy farming, however, remains popular – but the ecosystem is changing.
Founded in 1881 and headquartered in Düsseldorf, Germany, GEA Group supports farmers with their milking robots, automated processes, digitalisation and smart solutions for sustainable milk production.
GEA Group’s DairyRobot
R9500 is engineered to make the milking process easier for the cow and make a more efficient use of dairy farmers’ time.
Khun Group
Agricultural requirements are rapidly evolving and the need for top quality agricultural items remains integral. With its 190 years of experience in manufacturing agricultural equipment, The Kuhn Group offers the global community of farmers everyday items that are essential for their work. Machines are sold for Crop Establishment, Crop Protection, Hay & Forage and Livestock solutions, among others, and the company has production sites in France, the USA, Holland and Brazil.
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JCB
JCB is the world's third biggest manufacturer of construction machinery and the largest privately-owned engineering and manufacturing company in the UK. Its machinery is instantly recognisable in the agriculture sector, but the company also has stakes in construction, power generation and more, with machines on the ground in more than 150 countries JCB employs over 15,000 people across the world and produces hundreds of products – but it is the iconic yellow tractor that consumers will be most familiar with.
As a part of its global environmental sustainability
strategy, JCB is finding innovative solutions to its customers’ needs and carefully managing the resources that go into its equipment. By 2030, JCB plans to make a 50% reduction in GHG Emissions across Scope 1 and 2, a 75% reduction in single use packaging waste, and achieve a zero deforestation risk in its supply chain by 2030.
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138 February 2023
John Deere
In 1837, blacksmith John Deere founded his eponymous agricultural equipment manufacturing company in Illinois, USA.
In the John Deere 2021 Sustainability Report, Chairman and CEO John C. May said that answers over modern agricultural problems would come from grit, determination and collaboration.
“We realise the world’s many challenges cannot be solved by equipment alone. Challenges like a deteriorating infrastructure, climate change, and social inequality push us to think beyond today. In our
neighbourhoods and villages — where food security, housing, and education must be elevated — we have made a commitment to future generations by investing at least US$200mn over the next 10 years, pledging bold support in places both familiar and far away,” said May.
Deere & Company offers a portfolio of more than 25 brands, including Argentinian grain elevator company PLA, crop-spraying solution company Hagie, vacuum planters Monosem, Blue River Technology (an agricultural production business) and machine automators Bear Flag Robotics.
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Managing risk and growing the global app ecosystem
WRITTEN BY: MARCUS LAW
PRODUCED BY: JAKE MEGEARY
140 February 2023
manufacturingdigital.com 141 APPLOVIN
Apple’s 2009 advert – which coined the phrase ‘There’s An App For That’ – was just the beginning. Over the last 13 years, there has been a global explosion of app downloads ranging from mobile games to productivity tools. And, with figures from Statista suggesting there were 230bn global mobile app downloads in 2021, there are no signs of a slowdown.
For AppLovin, a leading growth platform with an ultimate mission to grow the global app ecosystem, the goal is to help developers expand their audience and their revenue while helping the industry continue to thrive.
Since launching in 2012, AppLovin has been instrumental in defining many of the world’s most popular apps and game studios. The company’s leading mobile marketing and monetisation platform provides app developers with a powerful, full-stack solution to solve their missioncritical functions like user acquisition, monetisation, and measurement.
“Really, at the end of the day, the goal is to grow that whole app ecosystem,” explains Jeremiah Kung, AppLovin’s Global Head of Information Security and Compliance.
“Growing up, we didn't have cell phones, we barely had the internet,” he laughs, “and now it's different.”
“Everything's on the phone, and apps are growing,” he adds. “We want to grow that ecosystem so that everyone is successful –
AppLovin is on a mission to provide app developers with the tools they need to thrive – balancing speed and comprehensive information security is vital
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CFO Herald Chen & CEO Adam Foroughi
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Data Theorem’s solutions are powered by its award-winning Analyzer Engine, which leverages a new type of dynamic and runtime analysis that is fully integrated into the SDLC, and enables organizations to conduct continuous, automated security inspection and remediation. GET STARTED
Real-time Active Protection for AppSec
Organizations today need tools that are purpose built for securing modern application stacks to prevent data breaches. Past-generations of runtime AppSec tools (WAFs, RASPs, EDRs) are unable to address critical areas of modern application stacks such as cloud-native applications.
As an example, serverless applications with APIs, such as AWS Lambda, cannot be secured using traditional web application firewalls (WAFs), runtime application self-protection (RASPs), or endpoint detection and response (EDR) agents. This is because there are no accessible operating systems for agent installation nor traditional network perimeters with ingress/egress points. Data Theorem now uniquely delivers runtime defenses and observability across its entire product suite, addressing security gaps in modern application exposures commonly found with cloud-native stacks.
Data Theorem Active Protection is a runtime defense and observability offering. It works across Data Theorem’s product portfolio to help customers enable application-layer security defenses across their application stacks from the client layer web and mobile apps to the API data transport layer and lastly cloud infrastructure. The runtime defenses include attack prevention, OWASP Top 10 rules, known malicious sources, policy violations of encryption levels, authentication types, authorization rules, and a variety of custom rule checks including preventing Broken Object Level Authorization (BOLA) attacks. Further, organizations also need increased observability (logging, tracing, trending) before enforcing security policies because of the dynamic nature of their modern application stacks. Customers can enable Data Theorem’s Active Protection through the use of their SDKs (software development kits), application extensions (Lambda layers), and AppSec proxy (L7 sidecar proxying).
Managing risk and growing the global app ecosystem
from the developers and the applications to the businesses and the advertisements behind that – so that it's a win-win for everybody.”
A risk-off approach to cybersecurity
Trust and transparency continue to be incredibly important for both organisations and individuals, with concerns around data protection increasing in recent years. As Kung explains, from an information security perspective, by not storing personal information from devices, AppLovin takes a ‘risk-off’ approach.
“From a security point of view,” he says, “our technology never knows who owns the device and only captures what ad types that device interacts with. For example, it's more like: ‘That device likes Wordscapes games, so let’s send them more ads for Wordscapes-type games’ as they will be more likely to download. We never know who the owner of the device is,” Kung adds.
“We removed the significant risk from the equation, which ensures significant risk reduction from an InfoSec perspective.”
The app market may have been on a meteoric rise in recent years, but as with all industries, there is a negative side, with bad actors posing daily threats. For Kung, who joined the business in May 2022, transparency is particularly important when it comes to cybersecurity.
“I try to stay as plugged in as I can to the business so I can understand the threat and risk,” he comments. “I've added tools and processes, but I think what really counts from the cybersecurity piece at this point is transparency.”
“This is a highly technical company with a lot of smart people. My first priority for information security was to conduct assessments; I did my poking and prodding, and penetration testing.”
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“They have made some really smart choices and done some really clever things,” Kung adds. “We’re now focused on adding enhancements and improvements over time. The one improvement we added for the cyber side was transparency.”
Cyber success is down to people
For Kung, a cybersecurity professional with more than 20 years of experience in the industry, the key factor to driving a successful cybersecurity programme is down to the people.
As he explains, when joining AppLovin, the first thing he did was create an advisory programme to sit and talk to developers, establishing conversations and processes around when to introduce InfoSec checks.
“We’d have a conversation around what the developers are working on to determine the best point in time for my team to conduct penetration tests,” Kung says. “And we’ll have regularly scheduled conversations to check in.”
In a fast-paced environment such as the technology industry, it’s also highly important not to sacrifice the speed of development. Having joined AppLovin following several cybersecurity roles at financial institutions, Kung is particularly aware of the differences between the east and west coast working in cybersecurity.
JEREMIAH KUNG
TITLE: GLOBAL HEAD OF INFORMATION SECURITY AND COMPLIANCE
INDUSTRY: COMPUTER SOFTWARE
LOCATION: CALIFORNIA, US
Jeremiah Kung is AppLovin’s Global Head of Information Security and Compliance. AppLovin enables developers to grow their business with a powerful set of industry-leading solutions. Jeremiah is a risk-based CyberSecurity and Technology executive with strong beliefs in innovation and partnership. He has led multiple digital transformations and has found that the constant drive to improve along with the business is the key factor to leading a successful security program in any company. Jeremiah is a results-oriented hands-on cybersecurity professional with 20 years of successful history of leading cybersecurity, data privacy and risk management programs
APPLOVIN
“Coming from a banking organisation or FinTech, you’re so highly regulated,” Kung comments. “You have to find everything and fix everything before it goes to production. The CISO must sign off on everything, and it doesn’t go to production until they’ve done all their tests and they’re happy that everything’s fixed.”
“But here,” he adds, “our business success depends on the velocity of our releases. So, it’s all about how you find that perfect momentum of putting the security controls in place but not slowing the process down.”
“That’s what’s really fascinating – finding that balanced mix. And at the end of the day, it comes down to people.”
“We have extremely talented developers who are willing to work with us. We have tools that give us visibility, and we are also willing to work with the team. I’m not going to hand them scan reports and say, ‘Here are
“Our business success depends on the velocity of our releases. It’s all about finding that perfect momentum of putting the security controls in without slowing the process down”
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JEREMIAH KUNG GLOBAL HEAD OF INFORMATION SECURITY AND COMPLIANCE, APPLOVIN
manufacturingdigital.com 149 APPLOVIN
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MAKINSIGHTS’ unique structure across 4 continents allows our team to innovate and punch above our weight class in ways our competitors cannot. With our clients, we ACCOMPLISH TOGETHER in the areas of:
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MAKINSIGHTS supports the expansion of Information Security around the world
JEREMIAH KUNG GLOBAL HEAD OF INFORMATION SECURITY AND COMPLIANCE, APPLOVIN
some findings, go fix them’. I commonly say, ‘These are the findings, let me look at them, and perhaps we find things which might be an issue’. This allows us to track if it’s a quick fix – and if not, we’ll ensure it’s prioritised in the next release.”
Managing third-party risk
With a rising number of security breaches arising from third-party relationships,
managing third-party risk is a particularly relevant issue in cybersecurity – especially in light of the SolarWinds attack, which opened many eyes to the dangers of insufficient onboarding and monitoring of third-party vendors.
“I aim to look at all threats and ensure they’ve been looked at,” Kung explains. “Third-party risk is a great one. For vendors we’re doing business with, we ask questions to ensure that they are properly secured, and will protect our data.”
“You don't want to say, 'Here are 1,000 questions, please answer them', to every company you work with. That could potentially slow things down,” he says. “Instead, we'll do our own assessment, then we’ll come regularly to reassess and ask questions.”
Particularly in the cybersecurity world, a strong network of partnerships is vital –
“Especially in a SaaS world, you can't be on your own and just have your own developers build everything”
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and AppLovin is no different. In addition to a partnership with Google, Kung explains that working with smaller companies, such as Data Theorem and MAKINSIGHTS, has significant advantages.
“I have liked working with the smaller, hungrier companies because they're willing to work with you,” he muses. “Especially in a SaaS world, you can't be on your own and just have your own developers build everything. As smart and as efficient as they are, we do need to partner with some vendors out there.”
“With Data Theorem, I met with their CEO quarterly, when I was back at EastWest Bank,” Kung says. “At the time, we were building mobile apps to do business banking in China as well as the United States, so the security needed to be top-notch.”
When looking for a tool to protect from Magecart attacks, a discussion with Data Theorem’s CEO led to the development of a ‘hack toolkit’, which could detect a multitude of vulnerabilities with a push of a button.
“It’s been interesting to watch them grow their business from just scanning the mobiles to the web to then creating a piece for cloud security, and followed this up by creating a piece for API security,” Kung says. “These were all the things I was worried
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about, and now I had just the tool I needed in order to find this solution.
“MAKINSIGHTS is another great example of a nimble company: they came on board and provided excellent service by supplying us with skilled former 'Big Four' consultants, many based out of LATAM,” he adds.
“Working with MAKINSIGHTS brings the latest in cyber processes, policy, governance advice, risk assessment, pen testing –essentially the full gambit of Information Security from an outside perspective.”
AppLovin has also been partnering with Google, utilising cutting-edge tools in both the cyber and the cloud space.
“A lot of times, solutions are being built on-premise and tend to be legacy, and slower,” Kung explains. “Google is doing some pretty innovative work now in the cloud, engineering-wise. By partnering
“When we’re evaluating a vendor we’re starting to do business with, we do deeper dive assessments to see if they are properly secured and whether they are going to protect our data”
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JEREMIAH KUNG GLOBAL HEAD OF INFORMATION SECURITY AND COMPLIANCE, APPLOVIN
154 February 2023 APPLOVIN
with Google there are a lot of interesting options we're considering including looking at information security from a different point of view than the typical push-button compliance checklist.”
How organisations manage InfoSec is changing
In an increasingly cloud-based environment, Kung predicts there will be shifts in the way organisations manage their information security.
“At the end of the day, security never really has an end state,” he says. “Threats are always changing and the business is always evolving. Eventually, more and more systems are going to move to the cloud. Larger institutions will be tougher, but smaller companies and high technology companies are mostly going to be in the cloud. And, if they’re not already there, they’re going to start moving to Kubernetes and to serverless functions, which is really going to shift the way we do information security.”
With different threat factors and different attack surfaces to look at, organisations need to be constantly assessing security threats while thinking outside the box.
“Passwords are pointless,” Kung states. “You really should be doing multi-factor authentication (MFA) – those are ways of thinking outside the box of technology.”
“I've seen some really cool ideas from Transmit Security, who had an awesome tool that would get to know who you are,” he says. “We would know a user held the phone in a particular way, so we can authenticate it – a robot, for example, wouldn’t be holding it at all. I don’t know if that's the ultimate solution, but out-of-the-box thinking like that is where we need to go.”
And, with AppLovin’s goal to continue growing the app ecosystem, InfoSec will similarly continue to hold a vital role.
“I'm definitely looking at every new product we're coming out with, making sure it's secure and focusing on helping grow the business without slowing it down,” Kung comments.
“For AppLovin, the goal is to continue to grow the business and the app ecosystem, even at a time of economic uncertainty,” concludes Kung. “We're focused on growing that ecosystem, helping it thrive, and moving it forward.”
“When you do cyber insurance forms or client security inquiries, the question asked is ‘how long is your password?’ That's not the right question”
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JEREMIAH KUNG GLOBAL HEAD OF INFORMATION SECURITY AND COMPLIANCE, APPLOVIN
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