Software with advanced machine learning algorithms, when combined with process design and operational know-how, have the potential to increase manufacturing efficiency and productivity in the process industries. Innovative business models can secure the sustainability of the achieved benefits by taking a more holistic view and focusing more on the goal as opposed to the means. It’s the outcome that matters and the evolving concept of Process Optimization as a Service offers a way to ensure long-term success.

3. Learnings from Conventional Solutions

   
   Common amongst almost all APC suppliers is a relatively high degree of technology expertise in advanced algorithm design … but a distinct lack of in-depth process and context know-how. Typically, these suppliers provide solutions to various industries, so their business model relies on providing general-purpose software that is commissioned for a specific plant with all the maintenance tasks being left to the in-house staff, who, most likely, have many other responsibilities and can’t monitor the performance on a full time basis and cannot do the necessary adjustment owing to a lack of the required skills.
   
   Major producers with several facilities have already recognized this challenge and built up their own application development units; they typically buy the general-purpose APC software and develop their own solution and install it at the production sites — often based on an inter-company business model.
   
   Regardless of the approach, the business model behind nearly all APC solutions so far is CAPEX based (Figure 2). You simply buy software and get it installed and commissioned at your plant. How to utilize the investment against the increasing demands placed on productivity and profitability is now plant management’s headache. The traditional CAPEX model relies on the expertise of a facility’s staff to get the best out of the system. Having a software update agreement on top of the CAPEX — or as a SaaS  — improves performance in terms of the frequency of any updates.

4. Thinking Differently

   
   It’s been done before, of course, but never in the process industries. How many companies buy software these days? The success of Microsoft 365, for example, allows companies to work with the most up-to-date applications for an annual fee. Updates are automatic. There is no “pride of ownership” of a computer program; people just need it to work.
   
   Pharmaceutical businesses are increasingly choosing to streamline by using SaaS to enable their core business operations without the additional overhead of software installation, maintenance and support. Requiring no customer installation and no additional servers or other expensive hardware, the products can be made available quickly, providing pharmaceutical companies with unprecedented access to data and knowledge … without compromising the confidentiality of their own proprietary information. Dr James Willans, Chief Technology Officer at Lhasa Limited, has stated: “We believe SaaS is set to be a game changer for the pharmaceutical sector, delivering scalability and agility and lowering the cost of software that enables the delivery of safe, effective and life enhancing medicines and other products to market earlier.”
   
   Likewise, PatSnap, a global intellectual property analytics company backed by Sequoia and used by innovative companies to accelerate R&D, now offers “chemical,” a SaaS platform that combines innovation data with vital and relevant scientific information into one single and easily searchable interface. chemical enables intellectual property professionals at science-led organizations to easily validate chemical development projects by analyzing big data through machine learning and artificial intelligence (AI). Its database links more than 114 million chemical structures, clinical trial information, regulatory details, toxicity data, more than 121 million patents and a number of other sources, quickly validating chemical development projects.
   
   SaaS applications change the business and IT relationship completely, reducing the load on IT groups and enabling engineering departments to focus on mission-critical design and optimization activities such as engineering simulation areas.2
   
   Rolls Royce has adopted an even more end-user value-centric framework with its jet engines, introducing the TotalCare®  program two decades ago; customers are charged for flying hours and the system maintains a constant vigil over every engine to make sure it’s performing perfectly. In addition, many car companies are increasingly realizing that some people don’t actually want to own a car; they just need transport, so their business models have adapted accordingly. Grundfos, a market leader in pump manufacturing, is also going down the same route by changing its business model from being a pump supplier to a “pumping as a service” provider.
   
   Many other examples exist; for example, no large company purchases printers any more. They don’t want to spend resources on maintenance and, instead, invest in “printing as a service.” Likewise, functions such as cleaning, maintenance and a wide range of office-based activities that had become a natural part of day-to-day business have now been outsourced to a service provider and relegated to the realm of Operations.
   
   Common for all these examples is that the end user is now more focused on its main “goal” — managing the business — and can delegate the process to professional “service” providers. As previously stated, APC keeps us focused on the means, rather than the goals. It really doesn’t matter how advanced our APC solution is if we cannot meet or exceed our requirements for continuous optimization. The process industry needs to delegate this niche task to suppliers with the adequate context know-how and end-to- end responsivity to ensure the continuous high performance of its productivity.

6. Data Security and Intellectual Property

   
   There is, of course, a natural and justified concern regarding data security in relation to Industry 4.0. Owing to demand for proactive services and the growing amount of data, cloud services are playing an important part in delivering next-generation services. Securing edge to cloud connectivity brings new challenges in the IT security space. However, the supplier is obliged to follow the highest standards of data governance, ensuring data ownership by customers and working in close co-operation with customers’ IT teams to maintain the highest level of data security.
   
   In the GEA solution, data is transferred with a secure client- initiated connection following IoT best practice, meaning no ports must be opened into the network. The data is stored securely on Azure storage that leverages AES256 encryption. Data is segmented by the customer and access is granted on need basis using role-based access. To further increase our focus on data security, all access to the servers is monitored, logged and reviewed on a regular basis to decrease any risk of exposure.
   
   Moreover, there must be a clear definition of what data is interfaced by the supplier to protect any data related to intellectual property (IP). Last but not least, the customer must receive comprehensive documentation on both the technical and data governance aspects to ensure an open and transparent insight into the responsibilities and confidence on both sides. The best results will derive from a combined effort with the customer’s IT team to ensure transparency about how the data are transferred and how to mitigate risks and eliminate security issues. With the focus now on privacy, data can be anonymized as much as possible and in full compliance with EU GDPR regulations.