{"id":531973,"date":"2021-08-23T09:59:30","date_gmt":"2021-08-23T08:59:30","guid":{"rendered":"https:\/\/pulse.microsoft.com\/?p=531973"},"modified":"2021-08-23T09:59:31","modified_gmt":"2021-08-23T08:59:31","slug":"fa2-ponsse-turning-a-forest-machine-manufacturer-into-a-data-driven-business","status":"publish","type":"post","link":"https:\/\/pulse.microsoft.com\/en\/sustainable-futures-en\/manufacturing-en\/fa2-ponsse-turning-a-forest-machine-manufacturer-into-a-data-driven-business\/","title":{"rendered":"Ponsse: Turning a forest-machine manufacturer into a data-driven business"},"content":{"rendered":"

\u201c<\/span>When our c<\/span>ustomers\u00a0<\/span>use our machines, they\u00a0<\/span>want to\u00a0<\/span>have<\/span>\u00a0<\/span>real-time\u00a0<\/span>information<\/span>\u00a0on<\/span>\u00a0how th<\/span>ose machines are<\/span>\u00a0functioning, how efficient they are. But they don’t want to\u00a0<\/span>be overwhelmed with<\/span>\u00a0raw data \u2013 they just want the intelligence, to know the best way to run their operations.\u201d<\/span><\/span>\u00a0<\/span><\/p>\n

Miika Soininen,\u00a0<\/span>is\u00a0<\/span>Director\u00a0<\/span>of\u00a0<\/span>Digital Services\u00a0<\/span>and<\/span>\u00a0IT\u00a0<\/span>at Ponsse<\/span>,<\/span>\u00a0<\/span>one of the world\u2019s\u00a0<\/span>leading<\/span>\u00a0manufacturers of\u00a0<\/span>forestry\u00a0<\/span>machines.<\/span>\u00a0<\/span>He\u2019s\u00a0<\/span>talking<\/span>\u00a0about<\/span>\u00a0<\/span>how\u00a0<\/span>his company<\/span>\u00a0is\u00a0<\/span>innovating with data to optimize\u00a0<\/span>its<\/span>\u00a0operations and offer\u00a0<\/span>transformative\u00a0<\/span>new services<\/span>\u00a0to their global customer base.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

\u201cEverything we do at Ponsse starts with our customers\u2019 needs<\/span>,\u201d<\/span>\u00a0says\u00a0<\/span><\/span>Soininen<\/span><\/span>.\u00a0<\/span>\u201c<\/span>And right\u00a0<\/span>now,<\/span>\u00a0<\/span>in the world of forestry\u00a0<\/span>we\u2019re seeing two big macrotrend<\/span>s.\u00a0<\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

\u201c<\/span>Firstly, o<\/span>ur customers want to know how to run their operation<\/span>s<\/span>\u00a0in the most efficient and sustainable way<\/span>.<\/span>\u00a0<\/span>S<\/span>econdly<\/span>,<\/span>\u00a0they want to know more about the machines<\/span>\u00a0themselves<\/span>\u00a0\u2013<\/span>\u00a0to avoid downtime and any unnecessary costs<\/span>,\u201d he explains.<\/span><\/p>\n

In order to\u00a0help\u00a0their\u00a0customers\u00a0meet\u00a0these\u00a0needs, Ponsse\u00a0first\u00a0needed to\u00a0better understand their own operation.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cWe needed to build our\u00a0own\u00a0data capabilities and create a bigger picture of our own\u00a0operation,\u00a0\u00a0<\/span>Soininen<\/span>\u00a0says. \u201cOne that showed how industry demand could link to forestry resource data and our own machine insights \u2013 enabling us to pinpoint better ways to help our customers meet their needs.\u201d<\/span>\u00a0<\/span><\/p>\n

With 80% of its forest-machine fleet exported across the world, Ponsse needed to implement an IoT solution that allowed\u00a0<\/span>any customer\u2019s connected machines to feed into this\u00a0new data platform and help create a bigger picture of its entire operation.\u00a0<\/span>\u00a0<\/span><\/p>\n

A major digitalization that has taken the manufacturer a step closer to the end-to-end service business it one-day hopes to be.<\/span>\u00a0<\/span><\/p>\n

Keeping the customer\u00a0<\/span>close to your<\/span>\u00a0heart<\/span><\/span>\u00a0<\/span><\/h2>\n

Headquartered in the Finnish countryside, Ponsse is one of the world\u2019s leading manufacturers of cut-to-length forest machines, serving key markets across the Nordics, mainland Europe, Russia, Asia-Pacific and America. <\/span>\u00a0<\/span><\/p>\n

With over\u00a040 dealers and 1,900 employees\u00a0worldwide,\u00a0the company\u2019s\u00a0business model focuses\u00a0heavily\u00a0on the\u00a0sales, servicing\u00a0and\u00a0manufacturing\u00a0of\u00a0its fleet of\u00a0forest machines.\u00a0This is a\u00a0significant investment\u00a0for customers and one they expect a strong ROI in return during the machine\u2019s life cycle\u00a0\u2013\u00a0making\u00a0<\/span>Ponsse\u2019s\u00a0own\u00a0investment in technology a key aspect\u00a0in\u00a0its\u00a0operation.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cEvery forestry company is now heavily moving towards data utilization and finding ways to offer more sustainable forestry solutions,\u201d says Soininen.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cMany of our customers know refining data isn’t their core business, so building a platform to gather this information is just the first step. We also needed a way to add value to that data and present it in a way that\u2019s usable to each customer \u2013 which is an additional service that customers are expecting more and more from us.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Although\u00a0Ponsse\u2019s\u00a0ambitions were high, the company was being held back by an outdated IT landscape, with data spread\u00a0<\/span>out across multiple on-premises systems that\u00a0didn\u2019t fully communicate\u00a0or provide the required insights into customers or fleet performance.<\/span>\u00a0<\/span><\/p>\n

Ponsse needed a way to integrate\u00a0these\u00a0disparate data sources. So, in 2018, it turned to Microsoft partner Solita, who set the company on a path to build a modern cloud-based data platform on Azure.<\/span>\u00a0<\/span><\/p>\n

Implementing a cutting-edge IoT solution<\/span><\/span>\u00a0<\/span><\/h2>\n

Solita\u2019s goal was to condense\u00a0Ponsse\u2019s\u00a0architecture into a cloud-enabled end-to-end solution,\u00a0where\u00a0business data\u00a0could\u00a0be gathered and refined to support both customer use cases and the company\u2019s own processes.<\/span>\u00a0<\/span><\/p>\n

Connected machines are also integrated\u00a0into the data platform via Azure IoT Edge and IoT Hub, allowing Ponsse to stream on-site operational analytics in real time and use those insights to help increase the life cycle of every forestry machine.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThe whole Ponsse Manager\u00a0IoT\u00a0solution is built around\u00a0a feedback loop where\u00a0information\u00a0is both gathered and\u00a0fed\u00a0back into every stage of\u00a0Ponsse\u2019s\u00a0operation,\u201d\u00a0says\u00a0Marko\u00a0Suojasto,\u00a0Account Executive\u00a0at Solita.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cData\u00a0from sales and marketing is helping things go right in the factory, and\u00a0that\u00a0production data is\u00a0then\u00a0used\u00a0as part of\u00a0Ponsse\u2019s\u00a0service and support\u00a0offering. Feedback from\u00a0customers\u00a0is\u00a0fueling\u00a0new products\u00a0and innovations, which\u00a0is data that\u00a0then goes\u00a0right back\u00a0into new sales and marketing. And in the middle of everything we have the data platform, which is a great example of how intelligent manufacturing and end users\u00a0can\u00a0work\u00a0effectively\u00a0together.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cPonsse has a strong background in using Microsoft technologies, so Azure was a natural fit for us,\u201d adds\u00a0Soininen.\u00a0\u201cAnd having a\u00a0Microsoft-based data platform\u00a0helps give our customers peace of mind that\u00a0reliable\u00a0data security is in place and\u00a0any information they share with us is secure.\u201d<\/span>\u00a0<\/span><\/p>\n

Building a more sustainable operation<\/span><\/span>\u00a0<\/span><\/h2>\n

Along with\u00a0helping\u00a0to\u00a0meet customer needs,\u00a0Ponsse\u2019s\u00a0new data platform is\u00a0also\u00a0offering valuable insights into sustainable forestry\u00a0\u2013\u00a0helping the company\u00a0to\u00a0optimize its harvesting processes,\u00a0wood logistics\u00a0chain\u00a0and\u00a0reduce its\u00a0overall\u00a0impact on the environment.<\/span>\u00a0<\/span><\/p>\n

\u201cResponsible forestry is something within our customer space that companies are becoming more aware\u00a0of\u00a0and demanding more sustainable solutions,\u201d\u00a0explains\u00a0Soininen. \u201cThis is an approach that Ponsse is striving for.\u00a0And using this additional knowledge from the mills, machine\u00a0logistics\u00a0and\u00a0forest resources, we\u00a0have the tools to\u00a0reshape\u00a0our operation in a more efficient and sustainable way.<\/span>\u00a0<\/span><\/p>\n

\u201cAzure IoT data\u00a0is\u00a0also\u00a0helping us\u00a0run\u00a0a number of predictive maintenance use cases\u00a0to minimize machine downtime and unnecessary logistics,\u201d he adds.\u00a0\u201cWe have even started\u00a0updating some of our older models with these new IoT capabilities,\u00a0so they can also\u00a0feed into our data platform and\u00a0provide a\u00a0more accurate\u00a0overview of\u00a0our forest-machine fleet.\u201d\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

With\u00a020% of\u00a0Ponsse\u2019s\u00a0turnover\u00a0already\u00a0made up of\u00a0aftermarket sales,\u00a0the company is using\u00a0this digitalization\u00a0as an opportunity to\u00a0add more value to customers \u2013 by\u00a0moving\u00a0from a product-based business model to a service-based model.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cProviding machines to customers and the lifetime services that go with them\u00a0is a long-term goal for\u00a0us,\u201d says Juho Leskinen, Product Group Manager of Digitalization and Information Systems at Ponsse. \u201cBut\u00a0to provide those lifetime services,\u00a0we need to understand our customers more deeply so we can offer the right services and solutions based on their individual needs.<\/span>\u00a0<\/span><\/p>\n

\u201cThat comes from the information we gather from our machines.\u00a0So\u00a0we can see how they are used\u00a0and\u00a0identify areas where we can\u00a0make a customer\u2019s operation more efficient and importantly more profitable.\u201d<\/span><\/p>\n

Pioneering forestry manufacturing across the world<\/span><\/span>\u00a0<\/span><\/h2>\n

As well as benefiting customers, this transformation has also helped Ponsse build a stronger ecosystem with its stakeholders and partners across the world, making it easier to securely share data across the organization and even open the interface to third parties.\u00a0<\/span>\u00a0<\/span><\/p>\n

Now that company stakeholders have seen value in the data platform,\u00a0the company\u00a0is incorporating these services into its business strategy so they can be a viable offering for customers in the future.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThinking big\u00a0picture,\u00a0we now have all our bases covered,\u201d says Leskinen. \u201cWe have the data platform, the connectivity, and the machine learning\u00a0to deliver more sustainable solutions.\u00a0But we\u00a0need to be the best in this area\u00a0\u2013\u00a0which is why we are investing more into growing our competencies so we can develop different kinds of connectivity solutions for different environments.\u201d<\/span>\u00a0<\/span><\/p>\n

The company is now of the process of launching its Ponsse Manager IoT solution as an Independent Software Vendor (ISV) \u2013 a partnership with both Solita and Microsoft to help other manufacturers\u00a0outside of forestry\u00a0use data more efficiently and sustainably.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cAny customers or manufacturers who\u00a0have some kind of physical assets will understand\u00a0Ponsse\u2019s\u00a0situation and want to build up their\u00a0machine\u00a0service levels in the same way,\u201d says Suojasto.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThere is a mega trend at the moment in electro-mobility that many companies are driving forward and launching new products in that area.\u00a0But they are missing that core part of the reporting service where\u00a0data can be captured and fed back into the business journey, which on a larger scale is exactly what the Ponsse Manager solution offers.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cRight\u00a0now\u00a0many of these other industries are on the road behind us,\u201d adds\u00a0Soininen. \u201cWe already have\u00a0a\u00a0two-way connectivity platform,\u00a0and as an ISV\u00a0we\u00a0can look to integrate both the electronics and software into different applications.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThat as an offering,\u00a0has placed us in a very\u00a0unique\u00a0market\u00a0position\u00a0for the future.\u201d<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cWhen our customers\u00a0use our machines, they\u00a0want to\u00a0have\u00a0real-time\u00a0information\u00a0on\u00a0how those machines are\u00a0functioning, how efficient they are. But they don’t want to\u00a0be overwhelmed with\u00a0raw data \u2013 they just want the intelligence, to know the best way to run their operations.\u201d\u00a0 Miika Soininen,\u00a0is\u00a0Director\u00a0of\u00a0Digital Services\u00a0and\u00a0IT\u00a0at Ponsse,\u00a0one of the world\u2019s\u00a0leading\u00a0manufacturers of\u00a0forestry\u00a0machines.\u00a0He\u2019s\u00a0talking\u00a0about\u00a0how\u00a0his company\u00a0is\u00a0innovating with data to optimize\u00a0its\u00a0operations and offer\u00a0transformative\u00a0new services\u00a0to their global […]<\/p>\n","protected":false},"author":792,"featured_media":531979,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"class_list":["post-531973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","specials-sustainable-futures-en","verticalIndustries-manufacturing-en","stories-how-can-collaboration-support-sustainable-transformation-en","stories-sustainable-collaboration-en","businessPriorities-data-ai"],"_links":{"self":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts\/531973"}],"collection":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/users\/792"}],"replies":[{"embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/comments?post=531973"}],"version-history":[{"count":5,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts\/531973\/revisions"}],"predecessor-version":[{"id":538369,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts\/531973\/revisions\/538369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/media\/531979"}],"wp:attachment":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/media?parent=531973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/categories?post=531973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}