ABB: Service innovation key for the future of manufacturing
Chongqing, September 25, 2016
Bernhard Jucker, Member of the Executive Committee, ABB Group, today shared his insights on how industrial service innovation could prepare the manufacturing sector in the Chinese city of Chongqing for future success. The fourth industrial revolution has prompted manufacturers around the world to expand their value chain in the service sector and foster new growth driven by the internet of things, a trend that Chongqing and China need to embrace to revitalize growth, Jucker said in a report titled “Industrial Service Innovation in the Internet Era” for the 11th Annual Meeting of the Chongqing Mayor's International Economic Advisory Council (CMIA).
“In future industrial contexts which ABB describes as the Internet of Things, Services and People (IoTSP), advanced manufacturers are extending their offerings beyond products to provide an integrated product and service offering that delivers value,” said Jucker, who has been a member of the CMIA since 2006 when its first annual session was held. “Chongqing, a traditional industrial base, is well positioned to embrace and shape the trend.”
In addition to several other case studies, Jucker cited Asset Health Center, a solution developed by ABB for American Electric Power (AEP), one of the largest utilities in the U.S., as an example of how service innovation benefits utilities in a typically asset intensive sector.
Aging power infrastructure and its maintenance requires continuous care and periodic upgrades. ABB’s Asset Health Center solution integrates equipment-based operational technologies (OT) and enterprise information technologies (IT), to automate what can otherwise be a time-consuming process requiring highly skilled individuals to gain visibility into the condition of critical assets, recognize performance issues, and prioritize maintenance and repair activities. This leads to better performance and reliability. The solution also helps to identify assets requiring replacement as they reach the end of their useful life.
Service innovations like this make good sense for Chongqing, home to a large number of asset intensive companies, ranging from machinery and metallurgy to utilities, who need the know-how to consolidate and analyze data generated by asset systems in a way that leads to actionable information.
To better embrace industrial service innovation, Jucker advised the Chongqing government to develop an innovative industrial service ecosystem by promoting awareness of IoT-based service among manufacturers, establishing a software industry that supports industrial service, developing a workforce equipped with digital expertise, and cultivating a favorable policy environment supporting issues such as intellectual property protection.
ABB has long been supporting Chongqing’s economic development by providing best-in-class power and automation products, technologies and solutions to local key projects such as Chongqing Wanzhou Power Plant, Chang’an Ford’s automobile production lines, Nanchuan Stadium, Jiangbei International Airport, city light rails, etc. Meanwhile, in e-mobility, ABB provides products and technologies to the R&D of Chongqing’s new energy automobile manufacturer. In robotics, ABB plans to establish an application center in the city.
Chongqing, a key R&D and manufacturing base for ABB in China, is home to ABB Transformer Co., Ltd. and Chongqing ABB Jiangjin Turbo Systems Co., Ltd., in addition to a comprehensive ABB regional service hub and an engineering center, with a workforce of around 1,000 employees and a complete sales and service network.
ABB is a leading global technology company in power and automation that enables utility, industry, transport and infrastructure customers to improve their performance while lowering environmental impact. The ABB Group operates in roughly 100 countries and employs about 135,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and services, with 18,000 employees, 40 local companies, and an extensive sales and service network across 147 cities.
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