2. CSIA Best Practices Accelerate System Integrator Company Growth
Jose M. Rivera
CEO CSIA (Control System Integrators Association)

3. CEO CSIA (Control System Integrators Association)
Jose M. Rivera
CEO CSIA (Control System Integrators Association)

4. Agenda Speaker Introduction
CSIA (Control System Integrators Association)
Control System Integration Market and Opportunity Ahead
CSIA Best Practices

5. Jose M. Rivera – CSIA CEO Previously: Schneider Electric (2006 - 2014)
- SVP Strategy – Industry Business (Paris: )
Emerson Electric - Process Management ( )
- Regional Sales Manager – Caribbean (Puerto Rico)
- General Manager – Saab-Rosemount Germany
- Product Manager – Rosemount P, T (MN, UK, Germany)
Siemens
- Sales Engineer (Costa Rica)
Education:
- MBA Kellogg School of Management, Northwestern University
- Lic. and BS Electrical Engineering, University of Costa Rica

6. Agenda Speaker Introduction
CSIA (Control System Integrators Association)
Control System Integration Market and Opportunity Ahead
CSIA Best Practices

7. Who is CSIA?
The Control System Integrators Association (CSIA) is the leading global association in our industry:
Created in 1994 to make SI companies better businesses
Based on our mission to advance the system integration industry
The “Best Practices” were developed and are kept up-to-date through a periodic review: Check them out at ControlSys.org
CSIA Certified members are audited every three years to ensure that they are current in their business and technical practices.

8. We continue to Grow: 520 Members (YTD 04/2016)
International includes 33 Latam Members

9. CSIA Vision and Mission
Mision: The mission of the Control System Integrators Association is to advance the industry of control system integration.
Vision: Industries everywhere have access to low-risk, safe and successful applications of automation technology.
Values / Principles: Collaboration, Inclusiveness, Integrity, Cultural Respect, Professionalism, Value.
Strategic Objectives (Focus Points):
Help system integrators be more professional.
Be a forum for all members to network, train, discuss common issues and share best practices, and 
Influence the marketplace so that CSIA Certification becomes commonly accepted by end-user clients.

10. Top Values for Members Driving System Integration excellence:
Annual Executive Conference
Best Practices Manual
CSIA Certification
Connected Community website
Industrial Automation Exchange
Educational Webinars
(Business and Technical)
Business Insurance
Pulse – Stats and Benchmarking

11. Exec Conference: Insights, Networking, Learning
Over 500 attendees.
2 ½ days of great presentations, panel discussions, networking, fun - all in a great location.
Optional: Pre-Conference 2 day Best Practices Workshop.

12. Training to support our Best Practices
Available to members and non-members ($1500).
Starting:
September 20th, 2016
Remote learning over two weeks

13. Agenda Speaker Introduction
CSIA (Control System Integrators Association)
Control System Integration Market and Opportunity Ahead
CSIA Best Practices

14. The SI Market: Most with <$10M revenue/yr
Annual revenue for control system integration work
Includes shop/panel assembly, excludes construction
Source: J.P. Morgan and CSIA Survey - March Input by 350 respondents.

15. The SI Market: Most with <$10M revenue/yr
Median Revenue for System Integration Company - Control Engineering, System Integrator Giants 2014:
$7.6M (2013)
$9.0M (2014)
Total Gross Revenue for Fiscal Year (2014) $31.6B
Total System Integration Revenue (2014) $ 1.6B
Source: Control Engineering, System Integrator Giants Note from the source: In April 2014, the Control Engineering staff collected and analyzed data from more than 100 companies that perform system integration services and participated in the 2014 System Integrator Giants program. Some of the top system integrators worldwide submitted their company’s profile to the Control Engineering staff; however, not all system integration companies were willing or able to participate in this year’s System Integrator Giants survey.

16. The SI Market: Most with <50 employees
Average number of employees plus contract people involved in systems integration
Includes technical staff, support staff (HR, Finance, etc.), and those doing shop/panel assembly, excludes construction personnel.
Source: J.P. Morgan and CSIA Survey - March Input by 350 respondents.

17. Diverse Industry Coverage Industry (not mutually exlusive)
Response Percent
Food and beverage (including bottling/canning)
45.8%
Water & wastewater
28.7%
Oil & gas
28.1%
OEM / industrial equipment
26.4%
Power & energy
25.8%
Chemicals and petrochemicals
24.9%
Metals, mining, aggregate, cement
20.3%
Life sciences
20.1%
Packaging and Material handling
17.8%
Automotive and tire
15.5%
Consumer Goods / Household products
14.3%
Other (please specify)
11.2%
Building automation
9.2%
Semiconductor & electronics
6.3%
Defense / Military
6.0%
Commercial/Institutional
3.7%
Entertainment
2.3%

18. Key Trends Impacting our Industry
Technology:
IoT (or IIoT), smart manufacturing, Industrie 4.0
Increasing IT content
Open Source / Sharing - redefining where the true value-add resides
Mobile, 3D printing, robotics,..
“Green Wave”
Sustainability, energy efficiency
“Silver Wave” (demographics)
Massive retiring wave of experts
Unexperienced next generation in need of tools to cope with job demands
Business Models
New business models to address old and new challenges

19. IoT / IIoT to fuel Growth in System Integration
Connectivity between devices and between disciplines will require significant system integration. This creates opportunity and challenges for System Integrators with growth beyond traditional industrial applications.

20. Innovation at the Intersections - Example
Sustainability:
Tracking of resource consumption in relation to production (e.g. gal water/gal beer produced).
Technology:
Bridge infrastructure and production system incompatibility and share data.
Technology
“Green Wave”
“Silver Wave”
“Silver Wave”:
Massive retirement of experts.
Technology:
Tools and analytics to coach new, less experienced workforce.

21. IoT – Reality Today Asset Management – Elevator installed base.
ThyssenKrupp elevators (1.1M units around the world), in partnership with Microsoft and CGI (Canadian IT and business process services company).
Data: usage,
sensors `
Next step:
Elevator
and BMS
sharing data!
Action with
Coaching Tools
Office building
Service
Call Center

22. Opportunity in New Areas and at Intersections
Reality today
Real IoT case, Proven business model around asset management.
Way to address lack of field experts (mature economies: “Silver Wave”, emerging economies: Unexperienced, very young workforce).
Very significant IT content
Preview of things to come, including key roles for less “traditional” players along with their ecosystem approach to solutions delivery.
Machine Automation
A key element, traditionally in the “industrial automation” realm.
Building Domain
Part of the expanded solution scope.

23. Agenda Speaker Introduction
CSIA (Control System Integrators Association)
Control System Integration Market and Opportunity Ahead
CSIA Best Practices

24. Fairly Common Tale for SI Companies
Smart Engineer sells idea to partners and recruits
Company is set up and starts operations
Smart engineer decides to start own SI company
Business takes off, management seems harder than anticipated
A plateau is reached - In spite of being very busy the company is “stuck in a rut”
Company wants to make a breakthrough but doesn’t know how

25. Breakthrough or Breakdown?
Delivery is of technical nature, yet right management determines the ultimate fate of SI companies.
Profitable Growth,
Scale,
Resilience

26. CSIA Best Practices enable Breakthrough
Driving System Integration excellence:
General Management
Human Resources Management
Marketing, Business Development and Sales Management
Financial Management
Project Management
System Development Lifecycle
Supporting Activities
Quality Assurance Management
Service and Support
Project success through
proven practices:
Times-tested algorithms
Reuse of existing
software
Factory acceptance tests
Site acceptance tests
Start-up and
commissioning
And upon successful passing of audit:

27. The Foundation that enables Growth
Profitable Growth,
Scale,
Resilience
Best Practices are relevant to SI companies but are not technology dependent.
IoT / IIoT will drive growth but only those companies with solid business practices will be able to translate the opportunity into actual, profitable business.
Best Practices are not about adding bureaucracy and cost burden, they are about creating a solid business foundation that enables Growth.
Empire State Building Foundation

28. CSIA Certified Companies lead SI Industry
Median revenue growth for CSIA-certified companies exceeded index last 4 years
Certified companies outperform non-certified in five key metrics
*Percentage that certified companies outperform non-certified by quartile.
Index: Rockwell N. America sales growth
Based on information reported by CSIA companies participating in benchmarking program (Pulse). Caveats: 1. Less than two years of data 2. Small sample size (34 total, 19 certified, 15 non-certified) 3. Potential selection bias (“Only the healthy go for a checkup”) 4. No access to raw data (confidentiality) – report prepared by company managing benchmarking platform.
Based on topline revenue growth for US-based SI companies that applied for CSIA certification. Evaluated 58 companies out of 94 (excluded data sets with missing revenue numbers non-US Companies)

29. We welcome your membership
Call to Action
Learn more about CSIA: Contact me: Jose M. Rivera Contact our staff: (toll free from US) or Talk to current SI and Partner members, End Users Join our next Executive Conference: May 2nd - 5th, 2017 in Ft. Lauderdale, FL
We welcome your membership