The origins and path of the innovative Finnish operator's successful new proposition for the manufacturing industry in the Coordination Age.
As STL Partners has described in The Coordination Age: A third age of telecoms, moves are afoot in the global digital economy to improve the efficiency of resource utilisation by combining the digital and physical worlds in new and innovative ways.
In the case of manufacturing industries, understanding and managing the flow and progress of materials and goods through production processes has long been a critical component of business success.
Managing and continually improving complex processes is central to operational success on the supply-side of the manufacturing industry. This includes everything from a floor manager overseeing production, to time-and-motion studies, total quality management, just-in-time production, six sigma, kaizen, robotics and automation, and many other managerial and operational approaches.
A number of new concepts and practices are now emerging, driven by the same imperatives but arising to a degree independently and in different disciplines, for example:
- Industry 4.0 ‘the fourth industrial revolution’ – the trend of automation and data exchange in manufacturing industries
- Digital twins – a virtualised version of a real thing, a bit like an avatar but for a thing rather than a person. It can simulate the real item, interact with it, and exchange information and commands with other digital twins based on pre-defined rules
- The Industrial Internet of Things (IIoT) – connecting industrial devices, sensors, equipment, etc., to gather and exchange information, and sometimes perform remote control
Numerous companies have embarked on the journey to incorporate and use such connected technologies, though the degree of progress made varies greatly.
A growing industry
Connecting machinery is far from a new idea. Many industrial machines and processes are already highly connected and automated, and this goes back as far as sixty years in SCADA (Supervisory Control and Data Acquisition) systems in electricity power station control.
What is new is the ability and desire to link these systems together and allow data exchange and a degree of autonomy within managed bounds. This can optimise performance, improve productivity, and ultimately lead to new operational business models.
There are many different possible paths to achieving these ends. Powerful industrial players and consortia are all trying to establish leadership in different ways. Heavyweight contenders on the industry side include GE, Bosch, Siemens, and PTC, with consortia including the somewhat mystically titled All Seeing Alliance.
The wider opportunity and main players competing is the subject of another forthcoming STL Partners report titled: ‘Why we need an Internet for Things’.
Enter Elisa, the innovative Finlander
Elisa is the leading Finnish mobile and fixed operator and No.2 player in Estonia. It has 6.2 million customers.
Yet despite its relatively small footprint compared to some of the industry giants, STL Partners regards Elisa as one of the most innovative operators in the world, and certainly in Europe. Indeed, 18% of Finnish business customers say that it is the most innovative IT actor in its market, compared to 6% for CGI and 5% for Fujitsu.
One of its notable recent innovations is a totally automated Network Operations Centre (NOC). To create this, Elisa had to go through its own journey of process engineering and automation.
Elisa now resells its Elisa Automate NOC solutions to other operators. It has also leveraged the IP and learning to create Elisa Smart Factory, a solution offered to global enterprise customers to help them achieve the levels of success it has been able to achieve itself.
Our thanks to Henri Korpi, EVP New Business Development, and Kari Terho, General Manager, Smart Factory at Elisa, who talked to us openly about the proposition, the business, and how it came into existence.
- Executive Summary
- Understanding manufacturing customers’ problems
- Unplanned downtime
- Unstable production quality
- Lack of visibility
- Practical obstacles to smart manufacturing
- How Elisa approached the solution
- Creating a service operation centre
- Smart Factory’s claims
- How did Elisa get here?
- “There’s loads of discussion of which platform is best. What you actually need is a solution”
- Success factors and lessons for others
- Next steps
- Figure 1: Downtime, data usage and visibility – the three dogs of manufacturing
- Figure 2: Elisa Smart Factory Schematic
- Figure 3: Elisa Smart Factory screenshot
- Figure 4: Typical business objectives of Smart Factory solutions
- Figure 5: What an Elisa 3D Digital Twin looks like
- Figure 6: A high level view from Elisa’s “End-to-End Cockpit”
- Figure 7: Results from Elisa’s automated NOC