Responsibly managing and securing data across an organization is top of mind for most companies in today’s business environment, but markedly so when it comes to protecting people and assets in the industrial sector.
Lawrence Moreaux, business interface for advanced manufacturing in digital technology with LyondellBasell, said having the right infrastructure for digital and data projects — from Wi-Fi to 5G — is a basic but critical piece of the operation that companies must prioritize.
"A part of our strategy is ERP [enterprise resource planning] systems, time series data, lab data — all these different systems need to be in a way where you can make more advanced and predictive analytics," Moreaux said during a panel discussion at Reuters 2024 Downstream USA.
"We’re maturing in that process; there’s definitely a lot of investment in these spaces. How do we get the right tools to our employees and make that data available? "If I take it into the field and I can’t use it, it’s worthless," Moreaux said.
Kapil Kohli, director of facilities and real estate for Air Liquide, said predictive analysis is where the process should start on the facilities side of an operation.
LYB, Air Liquide highlight critical role of data management, security
From left are Dave Kuketz with Sphera, Chandra Pulleti with Ingenero, Kapil Kohli with Air Liquide, Lawrence Moreaux with LYB and moderator Jeremy Osterberger with BIC Alliance during Reuters 2024 Downstream USA.
"The data is coming in, but you have to make sense of it. The challenge right now is to be more proactive instead of reactive," Kohli said. "After the equipment is down you have a downtime which results directly into your profits. Predictive analytics is huge and having the right tool to clean this data."
Moreaux told conference attendees that protecting your company, business and employees from cyberattacks is a key security concern.
"The phishing schemes are getting much more creative these days," Moreaux said. "For our company, this is a huge area of focus."
Also, making sure the operational technology and information technology sides of your business are working together shouldn’t be overlooked, Moreaux said.
"What’s the interchange between OT [operational technology] and IT?" he asked. "How am I leveraging that OT and IT data in the space or in the cloud and what is safe? All of these types of discussions have huge data implications."
Kohli said the cost associated with the facilities side of a business can’t be underestimated.
"For my side, I have to make sure the whole real estate portfolio is optimized, so that the whole CAPEX the company has is as low as possible," he said. "In the real estate market on the industrial side, it’s more difficult because there is no Zillow I can go to. I have to rely on consultants and market data that is highly confidential.
"That’s where most of our expenses on the real estate optimization come from. It’s a challenge. If you imagine your manufacturing side or wherever you are, a warehouse, there’s a cost associated with that. Facilities and real estate costs are a huge chunk of that. Hundreds of millions of dollars you spend on a lease, or you buy land that flows directly into the product you are selling."
Finalizing the discussion, Moreaux reminded the audience to document their vision, commit to a longer-term roadmap and ask themselves, what roadmap will truly deliver the ROI? "Rather than it be a lot of small projects, what are the strategic projects that really get you where you’re trying to go that aligns with your transformation and other key north-star strategies, and how do you enable that?" he asked.
Moreaux recommended getting stakeholder alignment. "Get the investment where it should be. Obviously, you still need a bottom-up [approach] to make sure that you’ve got the commitment to the business, but that’s what’s so key."
