Where Technology Shapes Solutions, from HUG 2011

  • July 12, 2011
  • Feature
July 2011
By Bill Lydon, Editor
Reorganization – From Automation Company to Business Transformation Company!
From the 2011 Honeywell Users Group (HUG) Americas Symposium
June 12-16, 2011 JW Marriott Phoenix Arizona
Norman L. Gilsdorf, President of Honeywell Process Solutions, gave the opening keynote presentation at HUG 2011 by welcoming more than 1,000 attendees from 34 countries to the 36th Americas HUG conference.
Gilsdorf began the presentation by stating, “…we’ve evolved from being an automation company to a business transformation company.” Gilsdorf’s described Honeywell Process Solutions’ intent to improve business efficiencies by saying, “…we can use our technology, people, processes to enable you to make faster decisions, better decisions, decisions in remote-access areas and make decisions that will improve your profitability.” He then commented on a few major trends.
“I think we are all aware the world has become very globalized, information can be moved very quickly, the boundaries that exist between countries has gone way down to a great extent,” said Gilsdorf. He described how companies that make decisions faster, have more accurate costing and more accurate pricing and can be the competitive leader in their industries and take advantage of more opportunities.
“The process industries have probably only begun to adopt in the area of mobilization,” said Gilsdorf. “Probably a lot more can be done here.” He described how using mobilization to bring assets together with people and information at the right place, to the right experts, at the right time can create competitive advantage.
“Today there are a lot of disparate systems within the world, your plant, and the process industry that are not connected,” said Gilsdorf. He contrasted this with our use of the cell phone which has evolved in a number of short years to provide range of functions including access to email, the internet, video, and global positioning. “We need to learn from that and leverage that in the process industries…so you can make better and faster decisions,” said Gilsdorf. 
“With all the data available today, it is very difficult to pull all the experts together with the information to make the right decisions,” said Gilsdorf. “The successful companies in the future will create collaborative networks where they work together with partners, work together better in their organization to link up data and information to make decisions.”
Gilsdorf shared Honeywell’s vision of collaborative networks to evolve from being, “just an automation company to a transformation company.”    Honeywell has been acquiring companies and integrating them to bring new solutions to customers.   “In the last two years we made two significant acquisitions, RMG and Matrikon,” said Gilsdorf. “They both have brought technology, equipment, software, and people that have helped us change the way we operate. We bring solutions to you.”   He noted that partnerships are also important and include Microsoft, IBM (asset & reliability management), and SAP (business integration). In addition, Gilsdorf noted partnering with the Honeywell Security Group to provide physical security products and services.
Summing up, Gilsdorf stated, “Our focus has been and our focus will continue to be on solutions, whether they are products or software that improve your safety, security, reliability, and efficiency - and then sustaining those solutions.” 
He then described the five areas of the Honeywell Process Group’s new organizational structure.
Project & Automation Solutions
This business segment is focused on delivering Greenfield and Brownfield projects on a world class basis.
Advanced Solutions
This segment focuses on bringing “best in class” software solutions for better safety, reliability, and efficiency independent of hardware or system platform.
Field Products
This segment focuses on instruments and how to best deliver products and projects through distributors and system integrators.
Engineered Field Solutions
This is the business segment that combines the technology of Enraf and RMG which is a little bit of product, a little bit of engineering, and a lot about solutions.
Lifecycle Solutions
This business segment is focused on aftermarket services to deliver “better solutions faster, simpler, and less complicated.” 
Gilsdorf assured the audience that these changes will result in better service for them. The person selling products and services to them will not change. “Our promise to you is that we will never leave a customer behind, we will continue to develop our technology, and we will always strive for greater safety, reliability, efficiency, and sustainability,” said Gilsdorf.
Thoughts & Observations
It feels like Honeywell Process Solutions is changing with more initiatives and partnerships.  I believe these activities reflect a change in philosophy to broaden the scope of services and to reach more users.
Norm Gilsdorf has a great deal of industry knowledge and knowhow, having come from UOP. I also think that the influence of Roger Fradin, President and CEO of Automation and Control Solutions, has been a positive catalyst for changes. Last year, I attended a presentation by Roger Fradin at another Honeywell event and was impressed with his vision. I believe one statement Fradin made at that event reflects his philosophy, “We know to earn your business every day we can’t just be equal to [other alternatives] - we need to be better than your next alternative.”
Honeywell has been doing well with first quarter 2011 sales up 15% to $8.9 billion versus $7.8 billion in 2010.  Earnings per share were up 40% relative to the first quarter 2010. In the first quarter of 2011, Honeywell noted that Automation and Control Solutions sales were up 17%, compared with the first quarter of 2010.

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