User:Jwkerastas/SmartSignal

SmartSignal Corporation is a multinational American technology and services company. Incorporated in the State of Delaware, SmartSignal Corporation (“SSC”) is a closely-held company with roughly 100 employees. The company was created to commercialize the “Predictive Analytics” technology originally developed at Argonne National Laboratory. This technology allows SmartSignal to provide early warning of impending equipment and process failures for critical equipment across industries.

1.History

a. Formation

i. SmartSignal was formed to commercialize a set of algorithms originally developed to provide early warning of faults in large industrial equipment.

1. Impetus for creation: The SmartSignal technology was initially developed in the early 1990's when the Department of Energy asked a variety of research institutions to develop a better tool for predicting problems at nuclear facilities. The request was a response to the failure of a coolant pump which forced an emergency reactor shutdown at a nuclear facility in Idaho Falls, Idaho. In 1995, the U.S. Department of Energy (DOE) gave the Argonne National Laboratory (and several other institutions) power plant data from 3,400 sensors obtained over 18 months (one fuel cycle of operation), that was seeded with 10 errors. Without knowing the number or type of faults involved, the lab was challenged to identify the errors. The technology (algorithms) created by Argonne National Laboratory (ANL) was the only technology to discover the errors in the time frame of the test. Perhaps more importantly, the technology found four unseeded errors, e.g. a loss of calibration of a Venturi flowmeter, of which the DOE was unaware. This convinced the ANL research team that they had a created a technology that was unusually proficient in identifying impending faults.

2. Early Years: Development work on the technology was facilitated by ARCH Development Corporation, an early-stage investment group which was launched to assist commercialization of research projects at Argonne National Laboratory and the University of Chicago. In addition, the university had established the Office of Technology and Intellectual Property (UCTech) to take over ARCH’s assets and contracts, including the intellectual property rights for the SmartSignal technology. In the summer of 1998, Gary Conkright was recruited to write a business plan and secure capital for the embryonic company. Conkright wrote the business plan that the company successfully used to raise capital. As a result, Conkright became the CEO of the newly funded company.

b. Funding

i. SmartSignal is a VC-backed, closely-held company. Investors include Archer Daniels Midland Company, Arch Development Partners, CID Capital (previously CID Equity Partners), Gryffindor Capital, River Cities Capital Funds, The Stephens Group, and a variety of smaller investors. The University of Chicago, through UCTech, also is a significant shareholder. According to publically issued documents, the company has raised over $23M.

c. Sales & Profits

i. As a closely-held company, SmartSignal Corporation (“SSC”) does not release financial data. Nonetheless, given that the lack of announced funding and the 2009 press releases announcing new customers, customer success, international expansion, new products, new partnerships, and new awards, it is believed that the company is cash-flow positive and growing.

2. Corporate Affairs

a. Management

i. Jim Gagnard is the current President and CEO. Prior to joining SSC, Gagnard was the CEO of Questra, a provider of device-management solutions to healthcare and production-printing equipment manufacturers. In addition, he was President and CEO of Diffusion, a real-time CRM applications provider to the financial services industry that was acquired by Vignette. He also served as President and CEO of Trinzic Corporation, an enterprise software and services company specializing in decision support and database connectivity that was acquired by Platinum Technology. Gagnard also held senior positions with Pansophic Systems, Control Data, and IBM in Europe and the United States. In addition, he is on the Board of Trustees of the Illinois Institute of Technology and the Board of Directors of Compliance11.

ii. The rest of the management team includes Robert Andrews, VP Sales; David Bell, VP Application Engineering; Stacey Kacek, VP Product Development; Edward Tomczuk, VP Finance; Steven Tonissen, VP Marketing; and James Herzog, Chief Technologist.

b. Businesses

i. Power Generation

1. The power generation sector is one of two major sources of SmartSignal’s business, with installations in combined cycle, steam-fossil, hydro, nuclear, and wind power plants. North American customers include Ameren, Arizona Public Service, BC Hydro, Entergy, Invenergy, and Mitsubishi Power Systems, among others. International customers include EDF, Edipower, Electrabel, Iberdrola, Korea South-East Power, and Zhejiang Energy, among others.

2. SmartSignal is used on both rotating and non-rotating equipment. Installations encompass a wide range of equipment, including steam and combustion turbines, heat recovery steam generators, feed pumps, boiler fans and pumps, ge3nerators, pulverizers, air heaters, feedwater heaters and condensers.

3. Problems detected include, but are not limited to:

a. Operational issues, performance degradation, bearing failures, lubrication problems, mechanical damage/weakness, leakage/seal failures, fouling, thermal problems, flow problems, electrical problems, and combustion problems.

4.Benefits

a. According to case studies on its website, SmartSignal has provided customers with

i.Increased equipment availability and efficiency

ii. Improved profits and return on capital employed

iii. Improved environmental, health, and safety outcomes

ii. Oil & Gas

1. SmartSignal’s other major business is in the oil & gas sector. This includes the upstream, midstream, and downstream segments. Customers include BP (BP Alaska, Alternative Energy, Refineries), Chevron North America Exploration & Production and Global Power, and Caterpillar.

2. SmartSignal is used on both rotating and non-rotating equipment. Installations entail a wide range of equipment, including Reciprocating and axial compressors, centrifugal compressors, suction scrubbers, generators, centrifugal pumps, electric motors, turbines (expander, steam and gas), heat transfer equipment, control valves, fired heaters, boilers, catalytic processes, gas-liquid and liquid-liquid contact.

a. Performance, bearing failure, deterioration, cavitation, leakage/seal failures, carryover, fouling, valve problems, plugging, rod drop and absorber/stripper fouling, among others.

4. Benefits

a. Increased equipment availability and efficiency

b. Improved profits and return on capital employed

c. Improved environmental, health, and safety outcomes

iii. Other

SmartSignal also works in the aviation industry, with major customers being Delta Air Lines and Southwest Airlines.

3. Technology

a. At its core, SmartSignal sells a software product that analyzes sensor data to predict future equipment and process performance.

i. Models individual equipment. Unlike other technologies, the SmartSignal software analyzes a machine’s operating history using proprietary algorithms to describe normal activity under varying load and operating conditions. Using data generated from equipment sensors, SmartSignal creates personalized, empirical models for each individual piece of equipment or process and captures the relationships among the sensors. It then analyzes all the sensor data in real time, comparing the new data with the historical models and flagging the significant differences.

ii. Exception-based notification. SmartSignal identifies sensor readings that are irregular or outside the normal range of operation for each particular piece of equipment or process. When SmartSignal detects anomalous readings/data, it places the equipment in question on a “WatchList” (a list of all the equipment/processes in a plant/company showing irregular values). Through the WatchList and its links to operational data, SmartSignal engineers and customer technicians can determine appropriate maintenance actions. In addition, once repair activities are done, technicians can track performance through the SmartSignal software to make sure the repairs were properly completed and lessons were cataloged.

b. Patents

i. SmartSignal has over 40 patents and substantial international coverage.

4.Products

a. EPI*Center 3.0

i. This was a Fall 2009 software release. EPI*Center is the company’s flagship “early warning” product. The product detects, diagnoses, and prioritizes impending failures. It works on all rotating and non-rotating equipment across industries.

ii. Improvements. Compared to the previous release, EPI*Center 3.0 provides:

1. A monitoring application with enhanced analysis capabilities, improved reporting, incident management and workflow support, and knowledge capture and recall.

2. An administrative application that assures security through reports on user activity and connection histories.

3. Fully internationalized applications across all major languages.

4. API web services, with an open interface that allows integration of EPI*Center into all other applications in the enterprise.

iii. Why so popular? The EPI*Center solution, in all its incarnations, has become particularly popular for the following reasons:

1. It can be used on a wide variety of equipment and processes – from expander turbines to condensers to boiler feed pumps.

2. The software delivers early warning of problems that companies can’t otherwise detect. This enables companies to fix small problems before they become big problems.

3. The software uses existing sensor data.

4. It is a particularly good fit for companies with a “centralized monitoring” mindset. This enables personnel in “Monitoring and Diagnostic Centers” to have an enterprise-wide view of impending issues.

5. The software increases the productivity of operations and maintenance employees.

b. CycleWatch

i. Fall 2009 new product. CycleWatch is a new product designed to flag problems during combustion turbine start-up. For example, according to the SmartSignal website, CycleWatch is able to identify low temperatures from contaminated fuel, helping to prevent flameouts and failed starts. According to SmartSignal, these notifications trace to their newly-announced “VBM” technology.

c. xConnector

i. Fall 2009 new product. This is a new application that allows for quick and easy connection of OSIsoft’s PI software and SmartSignal. This allows SmartSignal modeling estimates and incidents to be added to OSIsoft PI screens. This also enables SmartSignal customers to use OSIsoft’s data visualization technology and trending functions.

d. Plant Availability & Performance Solutions (aka PlantAPS)

i. Outsourced solution. PlantAPS is SmartSignal’s full-service solution. The solution combines technology (EPI*Center/CycleWatch), people (trained engineers), and processes to provide customers with a “notification-only” service. In addition, it provides a set of customized reports.

ii. Deployment. SSC can fully deploy, host, and maintain the solution through its in-house Availability and Performance Center.

5. Partners

a. SmartSignal is a 2009 Microsoft Gold partner. SmartSignal partners include: Accenture, Caterpillar, OSIsoft, Management Resources Group (MRG), General Physics Corporation, Indra, Chenggeng, AID Corporation, Marubeni Corporation, and Transpara. For further detail, see http://www.smartsignal.com/corporate/ourpartners.aspx.

6. Corporate recognition. SmartSignal has won a number of awards across industries; a sampling is below. For further details, go to http://www.smartsignal.com/news/awardshonors.aspx .

a. Power Engineering magazine “Best International Nuclear Project of the Year Runner-up (Entergy Nuclear/SmartSignal)” – one of the top three int’l nuclear projects of the year- 2009.

b. Illinois Technology Association “City Lights” Lighthouse Award – 2009.

c. M2M 100 – Top 100 Leader in M2M – 2008.

d. Edison Electric Institute “Edison Award” for SmartSignal customer KCP&L – 2007.

e. SmartSignal international Wall Street Journal Technology Innovation Award – 2006.

f. Platts Global Energy “Commercial Technology of the Year” Award--finalist 2005.

External links

• Official site