This article is sponsored by IXON Cloud. In this Voices interview, Packaging OEM spoke with Brandon Penrod, sales director for IXON Cloud’s North America group, about how secure remote connectivity, machine data and digital services are changing the way OEMs sell, support and improve industrial equipment. Penrod shared insights on changing customer expectations, overcoming cybersecurity concerns, using connected experiences to strengthen aftermarket relationships, turning operational data into better machine designs and service offerings, and the technologies that support a modern connected machine strategy.
Packaging OEM: How have customer expectations changed when it comes to buying industrial equipment, and what role do connected capabilities like remote access and digital services now play in the purchasing decision?
Brandon Penrod: If you look back 20 or 30 years, when people went out to buy a packaging machine, they compared speeds and feeds, component specifications, steel, motors, and other aspects of the physical machine.
The purchasing decision has since shifted beyond component specifications and the speeds and feeds of the machines themselves because the quality gap between bad and good machines has narrowed. There is less differentiation in physical machines.
Purchasing decisions are now influenced by the aftermarket experience. Customers want to know how an OEM will help ensure that the machine does not break down when they need it most.
Many OEMs are differentiating their aftermarket service experience by using remote connectivity and machine data. I sometimes use the analogy that competing without machine connectivity and data is like comparing a flip phone with a smartphone, except in this case, it is a smart machine.
Connectivity and data allow an OEM to differentiate itself by saying, “We are selling you a smart machine.” This connectivity improves the machine performance, but it also enhances the aftermarket customer experience throughout the machine’s lifecycle.
It can also increase aftermarket revenue for the OEM through service-level agreements, spare-parts sales, and other services. It can keep customers coming back for another machine because the lifecycle experience is much better when the OEM can solve problems quickly through remote support and proactively identify issues.
How can manufacturers overcome customer reluctance to allow remote access due to cybersecurity concerns, and what does it take to build confidence in secure connectivity?
Security is a core pillar around which we build our platform and products. It is important to our success because our software-as-a-service (SaaS), cloud-based platform relies on connectivity to the machine. If we cannot overcome the limitation of IT departments at end-user facilities accepting that connection, the project goes nowhere.
OEMs are very good at building machines and understand that domain well, but they are not necessarily security experts. When they ask an IT department to provide an Ethernet connection to a machine, they receive pushback or are told that they must use the customer’s own remote access solution.
OEMs may not know how to navigate that conversation and find a middle ground that provides connectivity while giving the end user confidence that the solution is secure. We put significant time and effort into our cybersecurity certifications, including our ISO and IEC 62443 certifications. We also invest in enabling OEMs to have those conversations with IT.
We provide security documentation, including a 26-page security guide that explains the entire architecture of our platform. It describes how connections are made through outgoing ports and why there is no need to open incoming ports on the customer’s firewall. We also have a dedicated security desk that joins calls with our OEM customers to help them navigate IT questionnaires and address concerns about the security.
In terms of software, we are implementing features that give end users control over the remote connections to their machines. These include access request and approval workflows, time-boxed access windows that the end user must approve, audit logging and audit trails, role-based access controls, multifactor authentication, single sign-on, and System for Cross-domain Identity Management provisioning.
Beyond improving service, how can remote connectivity and digital experiences help OEMs build stronger, longer-lasting customer relationships and create value after the initial machine sale?
Remote connectivity is only one part of the solution. Remote access has existed for a long time, and many companies in the industry sell industrial secure remote access and virtual private network solutions. IXON differentiates itself as an aftermarket digital service solution for OEMs and their customers. The goal is to make sure those machines are running when customers need them.
A strong connected journey includes detecting issues early, reviewing live and historical machine data, requesting and approving remote access, diagnosing problems and resolving them quickly, ideally without having to send a technician to the site.
We go beyond that by helping the OEM create a branded digital destination where customers can access their installed machine fleet. They can view machine status, alarms, reports, and service activity. They can also access customer enablement resources such as manuals, how-to videos, and other machine-specific materials.
This makes customers feel more confident because they can begin solving some of their own issues. It also makes the OEM more efficient from a service perspective because it reduces basic tier-one calls, such as a customer asking how to clear an alarm.
How can OEMs use operational data to improve customer outcomes, drive innovation, and gain a competitive advantage?
One of the biggest issues I see when OEMs discuss how to operationalize data is that they almost immediately say, “Our customers are not asking for this data, so we do not think we are ready to implement a digital service solution like the one IXON offers.”
The important point is that this data can sometimes provide even more value to the OEM than it does to the customer. By collecting operational data, an OEM can understand how its machines are being run in the field. This information can be fed back to engineering teams so they can identify where components are being overengineered or underengineered.
For example, if a component is underengineered and the OEM is receiving many warranty claims and experiencing warranty leakage, it may need to improve the motor used in the machine or select a heavier-duty version.
The opposite can also happen. An OEM might say that its machine never breaks down and assume that is entirely positive. However, machines are becoming more competitive, and margins on machine sales are shrinking.
If the machine is overengineered while the OEM is being forced to cut costs to compete, it may be worth analyzing how the machine design can be better aligned with the way the equipment is used in the field. This is one way to use the data internally.
OEMs can combine operational data with embedded videos, how-to manuals, and other educational resources. We even have an artificial intelligence (AI) assistant in our platform. When customers see an alarm code on their machine and are unsure how to resolve the issue, they can search for that code using the AI assistant. It reviews documentation specific to the machine and surfaces a process for resolving the problem.
Companies that do not use operational data provide traditional biannual or annual preventive maintenance visits. If the machine does not need someone on-site, those visits can become routine checkups. Components may be replaced early because the service provider believes they could fail before the next scheduled visit, even though the component may still have significant useful life remaining.
The only way to understand the remaining life is to collect and use operational data. There are benefits on both sides, for the OEM and for the customer.
What technologies and capabilities make up a modern connected machine strategy, and how do they work together to support both the manufacturer and the end customer?
A connected machine strategy will always include a hardware component. A physical device, such as an edge gateway or industrial router, must be installed in the control panel. It connects to programmable logic controllers, human-machine interfaces, and other components through Ethernet connectivity.
We offer a browser-based remote access portal through which the OEM or customer can access the machine’s HMI from a mobile phone or web browser. This visibility is valuable because the OEM can assist customers through the problem and teach them how to resolve it themselves the next time.
Other important capabilities include identity management, multifactor authentication, customer approvals, and auditability. These are all part of the security foundation needed to gain acceptance for connectivity within industrial facilities.
When a company is building a digital strategy, it also needs to consider the openness and expandability of the platform.
Does the platform have an open application programming interface? Does it allow the OEM to create custom user interface components? Can it connect with other business tools, such as customer relationship management and enterprise resource planning (ERP) platforms, ticketing systems, and other business workflows?
If the platform cannot connect with those systems or be customized to meet the OEM’s specific needs, the company will outgrow it.
Therefore, remote access is the starting point, not the destination. The larger opportunity is to combine secure, customer-controlled connectivity with machine insights in a branded customer service experience. This allows an OEM to respond faster today, learn from its installed base tomorrow, and remain a valuable partner throughout the machine’s lifecycle.
IXON offers secure edge gateways and a cloud platform for remote access and data insights within the industrial sector. We help machine builders, factories, and system integrators connect to machines and installations worldwide, improve service processes, and strengthen collaboration among all stakeholders. If you’re interested in learning more, contact us at [email protected].
