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Partner Committee meets in Atlanta
The CSIA Partner Committee, co-chaired by Sam Hoff (Patti Engineering) and Mark Moriarty (Rockwell Automation), recently met in Atlanta. The annual event is an opportunity for members to meet face-to-face to talk about issues affecting CSIA and the industry as a whole. Discussion topics included Partner participation in the annual Executive Conference, CSIA efforts to reach end-users, growth of CSIA certification, and an overview of CSIA's global growth strategy. The committee also discussed ways to engage and retain Partner members in CSIA and add value to their membership.
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 CSIA collaborates with ISA in Mexico and beyondby Bob Lowe, Executive Director
CSIA and ISA continue to collaborate, not just in the United States, globally! We are grateful to ISA Mexico and their event planner, Global Energy, for the opportunity to have a booth and make presentations about CSIA at ISA Mexico Expo Control 2012 in late August.
Eduardo Acosta, Global Committee chairman, was with me for obvious reasons: He speaks the language. Eduardo is a tremendous asset to CSIA and is very generous of his time and Omnicon resources.
Eduardo is president of Omnicon, a CSIA Certified member in Colombia, South America. Several new integrator members will join as a result of our participation at Expo Control, adding to the growing list of members in Mexico and Central America. Connecting with many Partner members and educating their local people on the value of CSIA is a positive outcome as well.
To further make evident the ISA and CSIA relationship, I'm writing this article while at ISA Automation Week in Orlando, Fla. We extend a thank you to the Automation Federation, an ISA affiliate, for our Automation Week booth. While attending Automation Week in late September, I became reacquainted with Carlos Liboni and Jorge Ramos of ISA Brazil, resulting in more growth opportunities in that growing country and economy.
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How do system integrators market themselves?
The results are in! We recently surveyed our integrator members asking how they market their companies. The results appear in the Survey Results library. If you completed the survey, thank you. Take a look and see how you compare to your peers. If you are an integrator but didn't complete the survey, review the results and consider how you would have answered the questions. If you are a Partner member or other reader, the results may help you understand CSI marketing philosophies and practices, good or bad!
The same survey was conducted in 2010, with a few added questions this time, so compare them and see what difference 2½ years makes. Thanks again to our members who completed the survey. If you have a suggestion for other member surveys send your ideas to Bob Lowe.
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What is the value of a CSIA membership?
by Joe Martin, Member Relations Chair
Even if you don't attend the annual Executive Conference, the value of CSIA membership is said to be at least several multiples of what you pay in dues. Factor in Executive Conference attendance fees and travel expenses, members who attend will tell you the value goes off the chart. As you begin sizing up your 2013 budget, consider that membership renewal and the Executive Conference in May are both smart business investments with an organization tailored specifically to the control system integration industry.
Many members have commented about CSIA-sponsored sales training. While our technical skills and talents may be unique, it seems that our sales processes are not. A fair number of our members have invested in Sandler training; many participate in Vistage while others have found sales coaches and trainers in their own geographical area. Regardless of business size or situation, it seems that an investment in some kind of sales or business coaching has paid off for our members. And since such training cannot be considered unique to control system integrators, CSIA is looking at this as another way to deliver value to our membership.
Speaking of value, if you are among the many firms working toward becoming a CSIA Certified member, or if you have been recently certified, we would like to hear from you. Discussions that started at the conference in Scottsdale are now under way about a support system for you. A recent email was sent to many Associate and Certified members to gauge interest and participation level. How would you participate?
Whenever you have thoughts or comments about raising the value of CSIA membership, programs or other benefits please pass them along to me and I will share them with the committee.
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Best Practices & Benchmarks support materials
now complete
by Jeff Miller, Best Practices Committee Chair
It is now official! The Best Practices Committee released the fourth revision of the Best Practices & Benchmarks Manual and updated all of the supporting documents. The support materials are now released to the Connected Community library for use by integrators, as well as staff and auditors.
The editing and production of the new manual has been two-plus years in the making, and we are excited to have it completed. As chair of the Best Practices Committee, I would like to take this opportunity to thank my committee members as well as others who volunteered to review the document and give us feedback. Please see page 114 of the BP&B V4 Manual for a complete list of the contributors who helped us complete this process.
The committee is now refocusing its efforts on the Roadmap to Certification template program that we started about a year ago. The committee polled many of the CSIA integrator members to determine the level of interest in this program and assess how we can jumpstart it to make some impact in this area over the next year. It will take a lot of commitment from the entire integrator community to make this work, so please consider how you can get involved and provide template documents for sections of BP&B as we request them.
The Roadmap to Certification program is in the true spirit of what CSIA was created to do and what was the golden rule of CSIA organizer Charlie Bergman - giving one idea to gain 10. If you have never participated in this program to date, I encourage you to do so, not just in supplying templates but also in viewing and using templates that are provided by others. Look for a new template request soon.
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October Webinar
Making the most of your financial statements
Where's the Money? What Financial Statements Tell Us
Wednesday, October 24, 2012
11 a.m., Eastern Daylight Time (New York)
Craig Billings, CPA and Scott Luedke, CPA of Capital Valuation Group, Inc. Facilitated by Cathy Durham.
"If I have all this profit, where is the cash?" It is not atypical, unfortunately, for rapidly growing businesses to struggle or even go broke due to cash flow problems. While most business owners look at just two numbers on their financial statements - revenues and net income - the income statement, balance sheet and cash flow statements can provide us with a great deal of important information. Understanding your financial statements - all three of them - can become a reliable source of management information helping you to understand your profitability, your cash flows and your firm's trends. Join us in October to learn what these statements measure and tell us. Register here.
CSIA webinars are recorded. See the webinar archives to listen in again or find out what you've missed.
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ARC World Industry Forum offers 50% discount
to CSIA members
The 17th Annual ARC World Industry Forum, "Achieving Breakthrough Performance with New Processes and Technologies," will be held Feb. 11-14, 2013, in Orlando, Fla.
Achieving breakthrough performance requires identifying key improvement targets, implementing the correct process improvement tools, and generating fresh and unique offerings to meet evolving customer needs. The results? Reduced costs, greater market share, and enhanced value across the organization. At ARC's World Industry Forum you will discover new, innovative processes and technologies that will enable you to significantly and consistently outperform your competition. Join us and learn how you can improve energy efficiency, asset performance, operational excellence, information sharing, cyber security, risk management, employee training, supply chain optimization, legacy and aging infrastructure and operations and maintenance synchronization.
CSIA Members receive a 10% discount off the registration fee. Contact Kim Coffman to register.
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Galeski honored with ISA Excellence
in Leadership Award
Paul Galeski, P.E., CAP, of MAVERICK Technologies, based in Columbia, Ill., received the Excellence in Leadership award at the recent ISA 50th Annual Honors & Awards Gala. This award recognizes an individual who has made significant contributions to the industry or profession to advance automation. In conjunction with the award, the society conveyed ISA Honorary Membership to Paul. This was the top award presented at the gala event.
Paul later announced that MAVERICK Technologies, a CSIA Certified member, has entered into a multi-year agreement with ISA to provide technical education and training. The goal of the training is to overcome the problem of declining personnel in the automation and control profession. Watch for more information in the future.
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Phoenix Contact hosts SIP Technology Forum
Phoenix Contact, a CSIA Partner, recently held its first national System Integrator Program (SIP) Technology Forum. The SI program is largely based on the guidelines in CSIA's "Guide for a Successful Partners System Integrator Program," which was developed by the Partner Committee in early 2012.
The educational event was held at Phoenix Contact's new Ann Arbor, Mich., facility and featured Don Roberts of Exotek, a CSIA certification auditor, as a keynote speaker. CSIA thanks Steve Newcomer and all of Phoenix Contact for the opportunity for Bob Lowe, CSIA Executive Director, to make a presentation about CSIA. There were 13 CSI companies represented that now understand how CSIA membership can help them build the best CSI company possible. Seven current CSIA members were represented, six being certified members.
CSIA encourages other Partner members building an SI program, or fine tuning a current program, to make use of the "Guide for a Successful Partners System Integrator Program." It's one of the many benefits of CSIA membership for automation vendors.
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Dispute resolution options: Remember,
it could be worse
by Brian P. Clifford, CSIA Attorney
In the August issue of this newsletter, my colleague Mark Voigtmann reminded us that very few disputes rise to the level where a court battle makes much sense. But most integrators know that long-term success and growth means that, eventually, some disputes will appear that need to be resolved. A client may have an issue with the quality of work performed, or may quarrel over whether call-back services should be billed at normal support rates or should be covered by a warranty. Or a subcontractor or supplier may object to delivery requirements or schedules, or may contest the scope of work included in a fixed-price order.
When a disagreement must be settled, there are several mechanisms that can be used to keep everyone away from the courthouse doors:
- Direct Negotiations. When the project team members have reached an impasse, a solution can often be found by escalating the discussions to the executive level. A fresh set of eyes can break through the emotional frustration associated with many disagreements. And the executives may have a better opportunity to take "the long view" of the parties' business relationship and of their strategic vision for the future - not just one invoice or one deliverable.
- Initial Decision Maker. For long-term projects, it can make sense to appoint a third-party neutral at the start of the work. This person can give the parties a quick, unbiased decision on their respective positions in the event of a future dispute. Choosing someone with experience in the integration industry can save time and allow for a more credible early decision. If either party is unhappy with the determination of the initial decision maker, more formal proceedings can be initiated.
- Dispute Review Boards. A take-off on the initial decision-maker concept, a dispute review board is a panel (generally) made up of industry professionals and established at the start of a large-scale, long-term project. The "DRB" can make timely, non-binding decisions on all claims that may arise during the complex project. Since it is unbiased and experienced in the relevant field, its decisions are often accepted by the parties without the need to continue the fight in court.
- Mediation. Professional mediators (who are often, but not always, attorneys) have long been successful in getting parties to "bridge the gap" between their positions on an issue and resolving claims through voluntary settlement. Usually through a process of "shuttle diplomacy," mediators are able to point out both the strengths and weaknesses in each of the parties' arguments in a confidential setting in an effort to reach a mutually agreeable resolution.
- Arbitration. Arbitration is not too different from litigation - it involves appointing a person or a panel (commonly attorneys with experience in litigation in the relevant field) that the parties agree is empowered to make a binding decision on a claim. Arbitration rulings generally can be enforced like a court order and are not appealable. Compared to litigation, arbitration has the advantage of being more customizable - the parties can agree in advance to procedural rules and can appoint an arbitrator who knows their businesses. (A judge, on the other hand, may have to handle a criminal trial or a custody dispute in the morning before turning attention to your case in the afternoon.) Of course, these advantages come at a cost - the arbitrators do not work for free, and the time, money and effort expended in going through the arbitration process can be very similar to that of litigation.
These "alternative dispute resolution" mechanisms have successfully resolved many disputes before the parties truly made "a federal case" out of an issue. They may be worth trying the next time you need to settle a project debate.
Brian Clifford is a member of the automation practice at Faegre Baker Daniels LLP, a law firm of more than 800 legal and consulting professionals with 13 offices in the United States, Europe and Asia.
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System integrators that focus on PlantPAx applications show exceptional growth
by Mark Moriarty, Rockwell Automation
System integrator companies have been a key part of the delivery strategy of Rockwell Automation for many years. In recent years, Rockwell Automation has focused on growing our PlantPAx solutions in the process industries by developing a unique group of these integrators who concentrate on delivering process solutions to their customers. Over the past several years, this group has demonstrated exceptional performance with strong growth rates.
The Process System Integrator Program at Rockwell Automation provides access to tools and training to help enhance the ability of its members to deliver effective, integrated solutions. Process system integrators are provided the framework, standards and processes they need to design, develop and deliver highly competitive projects.
Our process system integrator partners drive business results for themselves and their customers. Their collaboration with Rockwell Automation has provided significant benefits including increased market exposure resulting in expanded opportunities with new and existing customers around the world.
Rockwell Automation continues to expand its delivery capability by frequently improving it process system integrator program and partnering with those system integrators with experience and differentiated solutions. If you would like to differentiate your company in this area, please contact Robert Billy, Global Program Manager - Process Partners, for more information.
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Graybar works to your advantage
by Brett Felton, National Market Manager, Graybar
Graybar is a leader in the distribution of high quality electrical, communications and data networking products, and specializes in related supply chain management and logistics services. It stocks and sells products from thousands of manufacturers, helping customers power, network and secure their facilities with speed, intelligence and efficiency.
Graybar understands that production uptime and total output is what drives an industrial customer, so we tailor solutions with quality products and services that work to our customers' advantage. Graybar's industrial team includes automation and control specialists that have knowledge of solutions that can help systems integrators.
We understand that control system integrators are increasingly shifting from machine control and plant floor process control to true enterprise Integrators as it becomes increasingly important to tie the plant floor systems to the business systems of the enterprise.
Together, we can develop the appropriate industrial networking, automation, control or panel design and panel building solution you are looking for that your end customers need at the industrial plant or site:
- Industrial automation and control solutions that enable consistent and efficient production
- Industrial Ethernet solutions that include structured cabling and wireless options
- Security and access control solutions that protect facilities and people
Graybar can provide a wide array of products from best-in-class suppliers (Schneider Electric, Phoenix Contact, Belden-Hirschmann, Hoffmann, Panduit, and others) to meet nearly any need an industrial customer may have.
In addition to providing products and solutions for industrial customers, Graybar Financial Services (GFS) is available to help customers finance projects. GFS specializes in providing competitive, value-added financing solutions to customers who are interested in acquiring equipment and services from Graybar. GFS is another way that we add value to customers' experience. This may help control system integrators get those projects launched that have been languishing at their prospects' budget table.
To learn more about Graybar, please visit the Graybar website.
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Control system cyber security -
A growing opportunity
by Eric Byres, P. Eng., ISA Fellow, CTO and VP Engineering, Tofino Security
Over the last decade, your company has likely done numerous projects that involved migrating proprietary industrial networks to Industrial Ethernet. This has been a growth area for system integrators and has been the driver for other projects such as restructuring control systems. A follow-on growth area for these projects is improving the cyber security defenses of these networks.
The demand for more robust cyber security has been increasing since the discovery of the Stuxnet malware in 2010. Before Stuxnet, the main reasons for securing industrial networks were to protect against inadvertent network incidents or attacks from insiders. Legacy industrial equipment such as PLCs, DCSs and RTUs (remote terminal units) weren't designed to handle malformed or heavy network traffic. In order to ensure reliable production, industrial-specific firewalls were, and still are, used to permit only the network messages required for proper operations.
The risk of an external malicious cyberattack, especially one targeted at industry, was considered minimal. However, Stuxnet specifically disrupted the centrifuges used for uranium enrichment at Iran's Natanz nuclear facility, proving that industrial sabotage by malware is possible.
Stuxnet has led to several trends that are causing the industrial cyber security threat level to dramatically increase.
Public disclosure of ICS vulnerabilities jump to new levels
Stuxnet's fame drew "security researchers'" (often referred to as hackers) attention to hacking industrial systems and devices. In the year 2011, more ICS (industrial control system) vulnerabilities were made public (many with exploit software available on the internet), than in the entire previous decade. Even more troubling, the publicly disclosed vulnerabilities are only a fraction of the conservatively estimated 100,000 vulnerabilities or more that exist in control products presently deployed.
New advanced persistent threats are targeting industry
Stuxnet's design provided a toolkit for other sophisticated malware known as APTs (advanced persistent threats). However, unlike Stuxnet that targeted an industrial process, recent APTs have been focusing on industrial espionage to steal business information.
APTs are hard to detect. They can hide and collect data for years, and the losses resulting from them are financial and reputation-related rather than safety or environmental incidents. Critical infrastructure such as financial services has been dealing with APTs for years, but they are new to the industrial space. An example is the Night Dragon attacks that stole business information from petro-chemical companies in North America, including energy contract information, oil field bids and production data.
Cyber terrorism is focusing on the United States
and the Middle East
Earlier this year Stuxnet was attributed to a joint U.S./Israeli project. As word spreads, attacks from nation states, criminals or other hackers have been increasing. For example, the recent Shamoon attacks, attributed to an activist group called the "Cutting Sword of Justice," targeted Saudi Aramco and other energy companies in the Middle East. If your customers have facilities in the U.S. or the Middle East, now is the time to for them to be stepping up their industrial cyber security efforts.
How to benefit from the demand for more robust cyber security
The way to secure industrial networks involves a combination of best practices, utilizing technologies designed for industrial security and a focused effort to secure the most important assets.
We recommend that your staff become familiar with ISA IEC 62443 (formerly ISA 99) standards and other best practices, and that they get certified on leading industrial security products.
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Welcome new members
Bell Buckle, TN, United States
Primary contact: Russ Grygiel
Maple Grove, MN, United States
Primary contact: Michael Berg
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