Category Archives: marketing research

The INSIDER is out! The February issue has stories…

Insiderlogo3Walt Boyes’ analysis of the ARC Orlando Forum 2018

Videos and commentary from the ARC Press Conference including:

–Stratus Technologies

–Siemens

–Emerson

–Honeywell

–L&T Technologies

–Schneider Electric

–OPC and Fieldcomms

–Microsoft

–Inductive Automation

–more

Joy Ward on the Human Face of Automation

Joe Weiss’ speech at DefCon last year

Walt Boyes on How to Make Open Standards Work

Rajbahadur V. Arcot on Industry 4.0

 

Subscribe now at www.spitzerandboyes.com/insider

Nobody Is Doing Anything About Cyber Security

Insiderlogo3At the INSIDER we’ve been saying this for years. The adoption of even basic cyber security actions in the industrial space is very low. Many companies believe that they are “pretty safe” because they are relatively obscure. But I recall a conversation with the head of IT of a regional potato chip company about 7 or 8 years ago: “I never thought anybody would cyber attack us. We make potato chips, for God’s sake.”

Honeywell, which has maintained a very high emphasis on cyber security in the industrial environment for over a decade now, sponsored a report by LNS Research on adoption of cyber security practices.

Here’s the press release with the study’s findings. All we can say is, “Wake up, people!”

The issue has gone beyond lack of knowledge. As Joy Ward, Spitzer and Boyes LLC’s director of research says, if you put together a good intellectual argument, and nobody is buying, you are looking at high emotional barriers. She recommends doing some serious qualitative research to determine what those barriers are, so that the intellectual argument can be adjusted and become effective.

Either that, or we need to prepare for a cyber disaster of enormous proportions.

 

HONEYWELL SURVEY SHOWS LOW ADOPTION OF INDUSTRIAL CYBER SECURITY MEASURES

Almost two thirds of surveyed companies don’t monitor for suspicious behavior

HOUSTON, December 6, 2017 – Honeywell (NYSE: HON) today released a new study showing industrial companies are not moving quickly to adopt cyber security measures to protect their data and operations, even as attacks have increased around the globe.
The survey – Putting Industrial Cyber Security at the Top of the CEO Agenda – was conducted by LNS Research and sponsored by Honeywell. It polled 130 strategic decision makers from industrial companies about their approach to the Industrial Internet of Things (IIoT), and their use of industrial cyber security technologies and practices. Among the findings were:
• More than half of respondents reported working in an industrial facility that already has had a cyber security breach.
• 45% of the responding companies still do not have an accountable enterprise leader for cyber security.
• Only 37% are monitoring for suspicious behavior.
• Although many companies are conducting regular risk assessments, 20% are not doing them at all.
“Decision makers are more aware of threats and some progress has been made to address them, but this report reinforces that cyber security fundamentals haven’t been adopted by a significant portion of the industrial community,” said Jeff Zindel, vice president and general manager, Honeywell Industrial Cyber Security. “In order to take advantage of the tremendous benefits of industrial digital transformation and IIoT, companies must improve their cyber security defenses and adapt to the heightened threat landscape now.”
The study suggests these three immediate actions for any industrial organization to capture the value of the new technologies:
1. Making industrial cyber security part of digital transformation strategies;
2. Driving best practice adoption across people, processes and technology, from access controls to risk monitoring, and tap external cyber expertise to fill gaps
3. Focusing on empowering leaders and building an organizational structure that breaks down the silos between IT and OT.
“Cyber security needs to be part of every CEO’s agenda to ensure the effective, immediate and long-term deployment of strategies and technologies such as IIoT,” said Matthew Littlefield, president and principal analyst, LNS Research. “In short, in order for a business to succeed on its digital transformation journey, it needs to succeed with industrial cyber security.”
LNS Research is a global leader in research and advisory for digital transformation of industry, delivering technology insights for business executives. Its analysts focus on identifying the metrics, leadership, business process, and technology capabilities effecting change.
​Honeywell’s industrial cyber security technologies and expertise address many of the issues identified in the LNS Research study. For more information, please visit https://hwll.co/uhrgs and www.becybersecure.com.

 

Vertiv Ranks Most Critical Industries

Vertiv Ranks Most Critical Industries in the World
Utilities, mass transit, telecom rank high, cloud and colocation fifth and rising

Utilities, including electricity, gas, nuclear power and water treatment, are the most critical industries in the world according to a new ranking from Vertiv, formerly Emerson Network Power. Vertiv convened a panel of global critical infrastructure experts to systematically quantify and rank the criticality of multiple industries based on 15 criteria. Mass transit—specifically rail and air transportation—ranked second on the list, followed by telecommunications, upstream oil and gas activity and cloud and colocation. The full list is available in a new report, Ranking the World’s Most Critical Industries, released today and available at www.VertivCo.com/MostCritical.

The panel set criteria encompassing the range of potential impacts from the loss of availability of critical systems and weighted them based on the severity of the impact. These criteria then were used to create a criticality rubric that the panel used to score the industries, which then were ranked by their average scores.

“If there is a common theme at the top of this list, it is the interconnectedness of these industries,” said Jack Pouchet, vice president, market development, Vertiv. “These sectors are important to the foundation of today’s society, and downtime in any of these areas can reverberate across industries and around the globe. This will only continue as our world becomes more mobile and more connected and as the Internet of Things expands.”

Clean power and water are fundamental needs in a developed society and underpin most other industries and services, making utilities a clear choice as the most critical industry. Mass transit ranked second, with panellists citing not just the safety of travellers, but the massive impact delays and disruptions can have across multiple businesses, markets and the world. The No. 3 ranking for telecommunications reflects the importance of communications and connectivity in personal and business activities and emergency situations.

Financial services topped the list of industries ranking highest in terms of financial impact of unplanned downtime. E-commerce was second, followed by cloud and colocation. Cloud and colocation also ranked fifth overall in the list of most critical industries due to the increased dependence on those platforms across multiple businesses. The panel also identified cloud and colocation as one of several rapidly emerging industries that are becoming increasingly critical.

“Cloud and colocation are becoming more and more critical as an increasing number of devices and businesses rely on these platforms to perform,” said panellist Emiliano Cevenini, vice president of power sales and business development for Vertiv in Europe, Middle East and Africa. “We’re expecting this trend to continue for the foreseeable future as the IoT networks that serve industries and smart cities are opting to use the cloud as the go-to platform to underlie their technology.”

The full list of critical industries as well as the analysis of specific categories, emerging industries and the ranking methodology are available in the report, Ranking the World’s Most Critical Industries. To see how other industries rank, use the Criticality Calculator. For more information on technologies and solutions to ensure network availability and additional content from Vertiv, visit http://www.VertivCo.com/MostCritical.

About content generation…

We have all heard for years that content is king. What that means, is that your communications– all of them– from your website to your emails to your posts on blogs, Facebook, LinkedIn, and other social media– must have content other than, “Our wonderful company just did this wonderful thing.”

 

Or people, including your customers, will not come back, because you’re wasting their time.

DON’T waste your customers’ and stakeholders’ time!

Over the next few weeks, I’m going to be talking about how to do an integrated content program.

As I said at the MCAA meeting in Atlanta in May, “About half of Spitzer and Boyes LLC’s business is assisting in content generation.” We can help you, too.

So, keep hanging out here, and you will learn what we know. Of course you can always hire us– you will learn faster, and do better.

Who Should We Believe?

There are a huge number of contradictory predictions out there right now concerning the stock market, the price of oil, the world economy, the internet of things, and just about everything else you can imagine. If you look hard enough, you could probably find conflicting predictions on whether Little Johnny will jump over the fence to chase the cow.

Since the control automation industry is so closely linked with oil production, let’s take a look at oil price predictions. Chris DeHaemer, the founder of Crisis & Opportunity and Managing Director of Wealth Daily posted on April 7 that he expects oil to hit $87 by Christmas.  He bases this prediction on past history, which shows that when the market for a specific industry’s stock crashes at the beginning of the year, it typically rebounds and prospers for the remainder of the year.  He cites the dot.com crash of 2003 and the banking industry crash of 2009 as examples.

Is he correct? Maybe in the short term. Brent Crude has shown a fairly steady increase from its January low of $28.55 to today’s price of $44.73, and the outlook for additional increase is favorable based on Saudi Arabia and Russia agreeing to freeze production, but it is still down over $70 a barrel from its 2014 high.  Will the increase continue in the long term? There are other factors to be considered.

Some analysts are touting that petroleum/crude oil is being replaced by lithium (aka metal oil) and that the demand for oil will begin to decrease in the near future as more and more companies move toward electric power using lithium ion batteries, which Tesla has supposedly now figured out a way to enhance and produce cheaply.  For example, on April 12, Laurence Knight, a business reporter for BBC News Magazine wrote that, “Lithium, a key ingredient in lightweight batteries, is already powering the modern world, and could be key to getting the world to reduce its reliance on fossil fuels.”

We are already seeing improvement in both the price and range of electric cars.  For example, the 2017 Chevrolet Bolt EV is priced at around $30k and has a range of over 200 miles.  Tesla announced on April 9 that it has already accepted 350,000 orders for its Model 3, a sleek vehicle priced at $35k, which also has a range of over 200 miles, and which won’t even be released for another two years. Because burning fossil fuels is detrimental to the ecosystem, and there is a push on several fronts to reduce their use, the production of a vehicle with extended range and an affordable price could well be attractive to a growing number of consumers, which would drive oil demand down considerably.

Who’s right?  I think I’d rather bet on whether or not little Johnny will jump the fence.

The Bitter and the Sweet – Siemens: 2,500 Jobs Lost, 25,000 Additional Jobs Pledged

We predicted almost a year ago that if the slump in the oil and gas industry continued, restructuring, changing focus, and diversification would be necessary to regain/maintain the fiscal health of our industry. Oil and gas shows no indication of a rebound any time soon, and Siemens is adapting and reorganizing; pulling resources away from the oil and gas and metals and mining sectors to focus instead on becoming a “digital industrial company.”

 

The Bitter

With this transition, Siemens announced in a press release dated March 9 that twenty-five hundred industrial division jobs will be slashed, approximately two thousand of which are in Germany (primarily Bavaria), but five hundred additional positions worldwide will be cut as well. “Plunging demand in raw materials markets has led to a significant intensification of competition, particularly in Asia,” said Juergen Brandes, CEO of Siemens’ Process Industries and Drives Division. “To guarantee our competitiveness, we’ve got to adapt to these conditions.”

 

The Sweet

Siemens pledged to make 25,000 new hires worldwide “in each of the coming years” for its other divisions as it dedicates itself to becoming a digital industrial company. The press release indicates that with an increase of more than €1 billion in investment in research and development, productivity and global sales, Siemens will keep the number of new hires at a continuously high level in the years ahead. In particular, the company expects to add at least 25,000 new employees worldwide each year for the next several years – around 3,000 of them in Germany.

This scenario reminds me of a scene in a Star Trek movie, The Wrath of Khan, where Spock gives his life to save the Enterprise. As he dies from radiation poisoning after saving the ship, he comments, “The need of the many outweighs the need of the few.” That comment is certainly apt here. Siemens employs over 300,000 world-wide. To keep the company healthy, some sacrifices are inevitable. Just as Spock lost his life to ensure that the Enterprise survived, in the short term some Siemens employees will loose their jobs to ensure that Siemens survives. We must accept that this is necessary for our industry as a whole to “ Live long and prosper!”

What IS All This Talk About Emotion?

Over the past couple of months I have seen several posts and articles that have designated or referred to 2016 as “The Year of Emotion.” As a marketing researcher with over 20 years experience in customer service, customer experience, and brand development and maintenance, I am astounded that emotion is just now receiving the focus it has deserved since marketing began. Why is emotion important? There are several answers out there, but to me, none seems complete. Here is why.

On December 15 of last year, Bruce Tempkin, whom I admire tremendously and follow on social media consistently, coined the phrase and declared 2016 as “The Year of Emotion”. He stated one of the reasons that emotion is important is that, “research shows that emotion is the component of customer experience that has the largest impact on loyalty” and continues with, “but it is also the area where companies are least adept and often seemingly ignore.” He certainly won’t get any argument from me there. I’ve been preaching that for years.

He also noted that “over the past few years, neuroscience and behavioral science research has begun to fuel new techniques for affecting human emotions.” I began that work many years ago as a graduate student, conducting studies on “interestingness” and its effect on memory, using the work of D. Berlyne and S. Hidi as the basis for my research. Based on my research findings, I realized then that emotion has a strong impact on what we remember and that interestingness is simply an umbrella term for ‘emotion evoking.’ Taking that one step further, I learned that if a company can tap into emotion strongly enough, the brand becomes the product; for example, Klennex rather than tissue, or in the South, Coke, which is used in many areas as synonymous for any cold drink. When that occurs, the brand takes on a persona of its own; it develops its own personality.

Now let’s move forward a bit. What is loyalty? It is an emotion. But what must a company do to provoke and promote it? The answer lies in a quantitative research finding that I discovered years ago. When a customer has an issue and that issue is resolved successfully, the person is more likely to remain a loyal customer, even over and above those who never experienced an issue. Why? Because of EMOTION, darn it! It’s all about delighting a customer and evoking EMOTION! That emotion gets linked to the brand and that is what causes a brand to become more than just the place where you make a deposit or buy your groceries. You LIKE the brand, just as you like certain people, because of its ‘personality.’ Just as we are loyal to those we care about, we are loyal to the brands we care about. Why? Because caring is an emotion.

So, knowing this, how do we use it? There are lots of methods, both qualitative and quantitative, out there for measuring and/or reporting on loyalty, and some that purport to measure emotion. I have yet to see one, however, that can pinpoint emotion to the degree needed to accurately develop concise messaging, branding, or customer service/experience emotions to the degree needed to truly be successful. The key to doing this is in combining the two research methods.

Using personalized interviews, in the past I have used qualitative research to uncover emotions and desires associated with a specific industry, brand or message, then developed quantitative testing based on those findings to pinpoint needed staff behavioral changes, messaging options, segments, etc. This methodology has allowed me great success in understanding customers’ needs, both emotional and rational, as well as who the primary target audience would be for specific actions and messages. Because I have spent so many years doing this work, I find it quite interesting that there is suddenly all this fuss about emotion. I guess I should have spent less time designing studies and digging into data sets, and spent more time seeing what others were up to.

So, to answer the question, “Why is emotion important?” It is important because emotion is in the Mind of the Customer™. It forms links in the mind to a specific brand or company and engenders loyalty, which in turn promotes larger share of wallet, referrals, higher customer experience ratings, and both organic and inorganic growth. It is important because of words like ‘caring, personality, and loyalty. It is important because from our earliest years, it is what drives us all.