With the popularization of the Internet of Things (IoT), many companies have transformed into IoT companies in recent years. Among the many industry applications of IoT, smart manufacturing is the most eye-catching. With policy encouragement, expert advocacy, and corporate investment, everyone is taking a step back and thinking, trying to understand the reality and illusion behind this industry.
In response, IoT Media interviewed Mr. Qin Cheng, PTC's Pre-sales Technical Director, to learn about PTC and discuss IoT, drawing on his eight years of experience in PLM/ALM/IoT/AR software applications and services, as well as his experience in information planning, consulting, and project implementation in various manufacturing industries.
The full text is quite long and contains a lot of valuable information, mainly covering four aspects:
1. PTC's 30-year development path
2. The Approach to Transforming into IoT
3. How AR can empower PTC business
4. Regarding the Industrial Internet, he answered eight consecutive questions posed by the author.
01. Back to 1985
In May 1985, mathematician Samuel Geisberg founded PTC, short for Parametric Technology Corporation.
After its founding, PTC quickly launched a groundbreaking 3D design software—Pro/E (Pro/Engineer). This was the world's first software tool to apply parametric technology to product design, transforming the 2D decision-making world into 3D and revolutionizing how people make decisions based on digital information.
But the problems in discrete manufacturing are not that simple. For example, changes in the product prototyping process, the coordination of drawings from multiple suppliers, and the large number of revised and issued versions of drawings make management difficult.
In 1998, PTC launched its first PLM product based on a B/S architecture—Windchill, a management software used to manage the entire product lifecycle, covering the complete lifecycle processes such as product planning, R&D, manufacturing, and after-sales service.
In the following years, PTC continued to iterate and update its products. In 2010, PTC integrated Pro/E's parametric technology, CoCreate's direct modeling technology, and ProductView's 3D visualization technology to launch a new CAD design software package called "Creo".
Thus, Creo and Windchill, computer-aided design software and PLM system, became the two pillars of PTC's business and the initial impression of PTC from the outside world.
02. Transformation into IoT
In 2013, PTC underwent a significant transformation—it pioneered the concept of digital transformation through the integration of data and things, entering the era of the Internet of Things.
This is related to changes in the industry. More and more smart products are equipped with sensors, enabling them to connect to the internet and generate and transmit data. However, this data cannot be integrated into the original PLM system. In other words, the product lifecycle management advocated by PLM has become incomplete.
CEO James Heppelmann believes that new technologies are needed to bring real-time data from products back into the system for iterative design, production modifications, and improvements to service processes and efficiency. This technology is IoT.
"We are at the forefront of a new era of innovation, where the Industrial Revolution is facing the challenges of the Digital Revolution."
—Jim Heppelmann, CEO of PTC
PTC's new transformation strategy can be summarized in three words: Product, Process, and People.
Product: Products are key to manufacturing, and PTC will do its best to help customers design, manufacture, and service products.
Process: Internal R&D and manufacturing, external after-sales operation, and product lifecycle management are the guiding principles of PTC's development.
People: Digital transformation must focus on the role of "people" and improve the human experience.
Based on these three terms, PTC has drawn a clear path for transformation, moving from CAD and PLM to IoT and AR.
When asked by a reporter from IoT Media what lessons PTC learned from that transformation, the answer was...
Qin Cheng recalled, “Now everyone is talking about the Industrial Internet, and it’s understood that it’s an inevitable product of the deep integration of manufacturing and the Internet, and a new direction for manufacturing to build competitiveness. But in 2013, there were no apps, no case studies, products were still in the integration phase after acquisition, and the market still needed education. It was destined to be difficult to promote many things. But as time went on, PTC and its partners continued to explore, define solutions together, and think about the value that apps could bring. By 2015, benchmark customers began to emerge, and the implementation results were indeed very obvious. At this time, everyone’s recognition of PTC’s IoT solutions gradually increased.”
03. ThingWorx, Industrial IoT Platform
The reason why PTC was able to quickly gain recognition in the Internet of Things industry after its transformation is largely due to the ThingWorx platform it launched.
In late 2013, PTC acquired IoT platform software company ThingWorx for $ 120 million. Subsequently, it also acquired IoT device management company Axeda, device interconnection-focused Kepware, data mining and analysis company Coldlight, and Qualcomm's augmented reality technology platform Vuforia.
PTC has always been known for its technological prowess, and with its complementary acquisition and integration strategy, it has gradually built an IoT product system that integrates connectivity, app development, analytics, user experience, and management in a short period of time.
The ThingWorx platform primarily enables IoT applications. Similar to developing mini-programs on WeChat, ThingWorx provides professional technologies and tools that enable industrial enterprises to quickly and easily develop, deploy, and scale IoT applications. It also incorporates AR functionality, revolutionizing the industrial development experience.
Regarding application cases, Qin Cheng mentioned the "IoT + MES" project he developed for Qingdao Cold Box, a subsidiary of CIMC Group. Through the ThingWorx platform, Qingdao Cold Box achieved full access to its equipment, real-time monitoring of workshop energy consumption and HSE-related equipment, fault alarms, and visualization capabilities, facilitating users to connect, manage, monitor, and control various automated equipment and applications.
04. Integrate AR
The application of AR makes ThingWorx stand out from its competitors.
A Harvard Business Review article once noted that although engineers have been using computer-aided design (CAD) for 3D modeling for 30 years, there are still many limitations to interacting with these models through 2D screens. The gap between the physical and virtual worlds limits our ability to utilize data, and the emergence of AR promises to bridge this gap.
Essentially, AR transforms existing data and analysis into images or animations, and overlays the virtual world onto the real world to create interaction while calculating the position and angle of real-world objects in real time.
Unlike most current AR applications that are mounted on mobile phones for consumption and entertainment, future AR can be implemented on various wearable devices, such as head-mounted displays or smart glasses, to help humans shorten decision-making time and improve decision accuracy. We can understand AR as the final computing, presentation, and decision-making platform, and a more easily understood 3D effect.
Case Study: In a Boeing study, AR was used to guide trainees in assembling 30 components for an aircraft wing, involving a total of 50 steps. With AR assistance, trainees spent 35% less time compared to using standard 2D blueprints. Trainees with little or no experience achieved a 90% higher accuracy rate on their first assembly attempt.
For PTC, which is venturing into the Internet of Things and committed to driving digital transformation, AR is crucial. But how does this create connections between PTC's various products ?
In response to this question, Qin Cheng stated that AR overlays virtual models onto the real world. Data from CAD, PLM, and IoT can be recalculated, re-integrated, and re-interacted within AR. For AR, other products are data sources; for other products, AR provides an enabling force, giving them a differentiated advantage and positively promoting business expansion.
Note: In 2015, PTC announced the acquisition of Qualcomm's augmented reality (AR) technology platform Vuforia for $65 million, and has since continued to expand AR commercial use cases.
05. More questions and answers:
A sober reflection on the Industrial Internet
Based on over 30 years of technological and customer experience, PTC's main focus in the Internet of Things (IoT) transformation remains in the manufacturing sector, including industrial equipment, automotive, ICT, home appliances, mobile phones, medical equipment, and other industries.
Qin Cheng responded to questions from IoT Media reporters regarding the booming domestic industrial internet market, expressing his views and opinions.
Q1: Industrial apps are considered a new form of industrial software, and various competitions are emerging one after another. How can we understand this concept and dispel the confusion of manufacturing companies after "following the trend" ?
Qin Cheng: Apps don't require training, which is the most fundamental difference between apps and the original systems or tools used in manufacturing. Just like using Didi for ride-hailing or WeChat or Alipay for payments, all apps are launched to solve a problem for a specific user in a specific scenario.
Q2: How can I clearly explain the significance of an industrial internet platform to customers ?
Qin Cheng: Take automobile manufacturing as an example. Previously, the market wasn't saturated, and there was a high demand for cars, so many automated equipment and intelligent technologies were introduced into automobile manufacturing. Later, MES (Manufacturing Execution System) was used for production scheduling, ERP (Enterprise Resource Planning) managed personnel, materials, and finance, and PLM (Production Management System) managed front-end drawings, thus building up information technology. However, this information was actually very scattered and didn't form a complete system; it even created data silos. Therefore, an industrial internet platform was needed to integrate and model the data, providing a more efficient way to deliver Data to Value—the ability to transform data into value. This is the core of the industrial internet platform.
Furthermore, the attractiveness of the manufacturing industry to talent is gradually weakening. Industrial Internet platforms can lower the barriers to development and use for enterprises, quickly build data analysis models, and provide decision-making support, which is of great value.
Q3: With the emergence of personalized car customization and fragmented demands, how should platform manufacturers respond ?
Qin Cheng: Due to personalized and fragmented demands, the supply chain, R&D systems, and the quantity and variety of components will all change. If data is independently segmented across different systems, there will inevitably be delays in responding to personalization needs. Therefore, a platform needs to be established, acting as a conduit to connect all data from beginning to end, ensuring consistency across customer needs, R&D, manufacturing, sales, and after-sales service. For platform vendors, this presents both a challenge and an opportunity.
Q4: Recommendations for enterprises to migrate to the cloud.
Qin Cheng: Think big, Start small, Scale fast. It's not just about going to the cloud; with digital transformation, you always need a vision, but execution should start with a relatively small investment. Once successful, it can be quickly replicated. For example, the CIMC Qingdao cold box project mentioned earlier, after its initial successful launch, solidified its digital transformation goals and quickly replicated and deployed the solution to Ruijiang, Wuhu.
Q5: Recommendations for companies choosing platform providers.
Qin Cheng: First, consider the cost; PTC recommends starting with projects that have a suitable cost. Second, examine the architecture to understand if the platform has sufficient elasticity and scalability. Third, review project case studies to see if there are similar case experiences in the field. Fourth, assess the implementation team to ensure the quality of service delivery.
Q6: With so many players entering the market, how will the Industrial Internet market evolve ?
Qin Cheng: Currently, the industry is still in a state of fierce competition and diverse development. In the future, some companies will focus on cultivating deep expertise in vertical industries, while PTC, as a platform provider, will increasingly focus on top-level applications, demonstrating differentiation in application. Therefore, at this stage, PTC is more inclined to delve deeper, create some lighthouse clients, and provide the market with more case studies and more confidence.
Q7: What is your view on PTC's core competitiveness ?
Qin Cheng: First, PTC has formed an advantage by providing a complete solution encompassing the entire product lifecycle, including CAD, PLM, IoT, and AR. It's an integrated solution portfolio. You can't just look at PTC by looking at its platform alone.
Secondly, PTC has many professional partners, and it has great development potential not only in terms of technology, but also in terms of customer base, industry coverage, and ecosystem channels.
In the cloud sector, Microsoft is PTC's largest partner. PTC positions itself as a PaaS and SaaS provider, with the IaaS layer supported by Microsoft Azure. In industrial automation, PTC has entered into a strategic partnership with Rockwell Automation, achieving deep integration of the PTCThingWorx platform, Kepware industrial connectivity platform, Vuforia augmented reality (AR) platform with Rockwell Automation's leading FactoryTalk MES, FactoryTalk Analytics, and industrial automation platform, bringing unlimited possibilities to the construction of digital factories. In R&D, PTC has partnered with ANSYS, a leading company in engineering simulation, to jointly create world-class simulation-driven design solutions for customers.
Third, there are numerous case studies. Having entered the market early, PTC already has many reference cases available to its clients.
Q8: Are there any successful cases of digital transformation currently ?
Qin Cheng: Digital transformation is a huge undertaking. In fact, no company globally has yet been able to claim complete digital transformation. Everyone is exploring it. If you want to move forward, I can offer you a giant's shoulder to lean on, a reference point, but everyone's standards and feelings about digital transformation differ. What everyone agrees on is that whoever moves faster gains the upper hand.
06. Conclusion
More than 30 years ago, PTC pioneered parametric, function-based modeling CAD software, bridging human imagination with the 3D virtual world. Today, PTC is transforming into an Internet of Things (IoT) company, continuing its journey to connect things and the virtual world, with the goal of bridging the real and virtual worlds.
PTC, a leader in the Internet of Things, will undoubtedly create even more stories amidst the changing tides of the times.
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