Are You an Innovator? The 5 Stages on Technology Adoption You Must Know

“Innovation distinguishes between a leader and a follower”, Steve Jobs said. Innovation behavior has positive relationships with career progression (salary growth and the number of promotions) and career satisfaction.

Only a few people are really innovators. According to Everett Rogers, 2.5% of the population. The professor got to this conclusion in the book Diffusion of Innovations, in which he explains his theory on how, why and at what rate new ideas and technology spread. He divided the technology adoption life cycle in 5 stages, by profiles of people that prevails in each stage.

Innovators are willing to take risks, have the highest social status, have financial liquidity, are social and have closest contact to scientific sources and interaction with other innovators. Their risk tolerance allows them to adopt technologies that may ultimately fail. Financial resources help absorb these failures.

Close to them are the “early adopters” of new technologies, about 13,5% of people. These individuals are also usually seen as “innovators” and have the highest degree of opinion leadership among the adopter categories. Early adopters have a higher social status, financial liquidity, advanced education and are more socially forward than late adopters. They are more discreet in adoption choices than innovators. They use judicious choice of adoption to help them maintain a central communication position.

Following them are the “early majority”, with 34%. They adopt an innovation after a varying degree of time that is significantly longer than the innovators and early adopters. Early Majority have above average social status, contact with early adopters and seldom hold positions of opinion leadership in a system.

Nobody is an innovator or a laggard for everything.

Each behavior depends on what is at stake

In the fourth stage come the “late majority”, also about 34% of population. They adopt an innovation after the average participant. These individuals approach an innovation with a high degree of skepticism and after the majority of society has adopted the innovation. Late Majority are typically skeptical about an innovation, have below average social status, little financial liquidity, in contact with others in late majority and early majority and little opinion leadership.

At last, with the same amount of people of innovators and early adopters together, 16%, are the “laggards”.  Unlike some of the previous categories, individuals in this category show little to no opinion leadership. These individuals typically have an aversion to change-agents. Laggards typically tend to be focused on “traditions”, lowest social status, lowest financial liquidity, oldest among adopters, and in contact with only family and close friends.

Nobody is an innovator or a laggard for everything. Each behavior depends on what is at stake. The closer you get to innovator behaviors, the more you resemble a leader. On the other hand, the more you distance yourself, the longer you will must follow other people.

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How Corrosion Management is Making the World (and Insurance Business) Better

“Basic Coverage for Equipment Used in the Production, Drilling and Exploration of Oil and/or Natural Gas in Marine Operations (offshore) and Land (onshore) – Special Conditions (…) Clause 2 – Risks not Covered and downs Indemnified/ 2.1. In addition to the provisions in clause 5 of the General Conditions, are excluded from coverage claims for indemnification for losses, damages, expenses, or other costs resulting directly or indirectly from the following events: (…) j) natural wear for the use (including abrasion, friction, deterioration or encrustation by boiling machinery, plant or equipment as a result of use or daily operation), gradual deterioration, including any effects or weathering, oxidation, rust, flaking, scale, cavitation and corrosion of mechanical, thermal or chemical origin“.

The excerpt of the policy “Oil Risk Insurance”, from Tokio Marine Insurance Company (in a free translation from Portuguese), makes clear a practice of the insurance industry: not to pay for insurance arising from corrosion events. And the “Special Conditions” for pipelines and offshore platforms also list corrosion as a “risk not covered and downs indemnified”. “All risks of incalculable probability over which the insurer has no estimate capacity are not covered by insurance policies”, explained recently the executive of a reinsurance company to PhDsoft CEO, Duperron Marangon.

In fact, nowadays,

corrosion is a predictable phenomenon

In Brazil, where PhDsoft won its first clients, the insurance company Porto Seguro requires hiring a tracker that allows the location of a car in case of robbery or theft to vehicles of value from R$ 200,000 (link in Portuguese). “It’s the same logic that we are seeking to bring to the oil industry. Despite of deep water exploration in Brazil, no accidents that can harm the environment as much as the one with the BP offshore platform, in the Gulf of Mexico, has happened and this is partially due to our software PhDC4D®. We explain it as a comprehensive system resulting from the synergistic integration of a 4D-space-time visualization with a predictive corrosion algorithm, a regulatory code compliance engine and automation of engineering activities and best practices. This consolidates a safer and cost effective maintenance process”, states Marangon.

In fact, nowadays, corrosion is a predictable phenomenon. There are only few corrosion processes that any intelligent solution would have difficulty to deal with. Pitting – a form of extremely localized corrosion that leads to the creation of small holes in the metal – is one. Since PhDC4D allows companies to monitor corrosion conditions and its evolution, insurance policies could start to cover corrosion caused accidents. That is technological disruption uniting two very traditional sectors in a win-win relationship for everybody.

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Where CMMS are Headed in the Next Five Years

Nanotech sensors connected to the internet are dispersed in the painting of hulls and pipes, measuring thickness and corrosion rates in real-time and practically eliminating risks of offshore operations. It’s cool, but it will take a little longer. So far, it’s only science fiction.

But if the painting nano gadget is still a dream, the use of sensors connected to the internet integrated by a software like PhDC4D is headed in the next five years. Until the beginning of the next decade, thickness or and corrosion rates will be measured all the time. Since we are talking about very large structures, human measuring will still be needed, but in a more intelligent way, focused in areas previously selected with the help of sensors.

In fact, any device with an on and off switch to the Internet (and/or to each other) will be connected, in what is called the Internet of Things (IoT). The IoT is a giant network of connected “things”, which also includes people. The relationship will be between people-people, people-things, and things-things. Intel says that by 2020 there will be over 200 billion connected devices. In 2015, there were 15 billion.

Anything that can be connected, will be connected

This includes everything from cellphones, coffee makers, washing machines, headphones, lamps, wearable devices and almost anything else you can think of.  This also applies to components of machines, for example a jet engine of an airplane or the drill of an oil rig. It is not different with Computerized Management Maintenance Systems (CMMS).

If you want to know more, have a look at this Guide to the Internet of Things produced by Intel.

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PhDC4D Will be Available in App Form

PhDC4D is going through its final adjusts to be launched in App form, for Windows Mobile, Android and IOS. The App will allow user to do everything he does in the site, managing inspections and defects in hulls, pipes and other structures. Although PhDsoft expects it to be much more used to register anomalies than to manage inspections.

Besides having all equipment status in the pocket, the user of PhDC4D App will be able to synchronize the anomalies registered as soon as he is back to the office, making data available to every member of the team. And thus, PhDsoft technology keeps evolving to the integration into three systems:

  • Computers – more technical, with its 3D models.
  • Internet – more managerial, where are registered all defects.
  • App – managerial and technical.

Intrinsically safe equipment

Since the App is going to be used in structures like offshore platforms, one alert we must make is that only intrinsically safe tablets or phones are allowed. Any other kind of equipment is forbidden because of the risk of explosions.

In intrinsically safe equipment, produced by companies like Aegex Technologies and Sonim Tehcnologies, the electrical energy available in any spark which can occur in the hazardous area will be non-incentive. This avoids the risk of explosions.

Brazilian companies ready for oil investments of R$ 3 billion

The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) has just appointed the members of its Scientific-Technical Committee (Comtec), which was created by the end of last year among the new regulation for implementation, by the oil companies, of the mandatory investments in Research, Development and Innovation (R&D). According to this contractual obligation, which exists since 1998, 1% of gross sales of oil and increased production of natural gas fields must be invested in R&D. So far, the funds generated exceeded R$ 10 billion and are predicted, for the next ten years, to reach an additional R$ 30 billion.

Comtec will develop and disseminate guidelines for application of funds corresponding to the minimum percentages established for accredited institutions and Brazilian companies, as dispositions present in Regulamento Técnico ANP 3/2015. For Brazilian companies, it means at least 10% of the amount, considering the concession contracts since de 11th round and the sharing contracts. This means R$ 3 billion in a decade.

With a 2-year term, this is the first composition of the Committee:

Representing ANP

-Magda Maria de Regina Chambriard, ANP General Director, as the President of Comtec;

-Tathiany Rodrigues Moreira de Camargo, ANP Superintendent of Research and Technological Development, as the Executive Secretary of Comtec;

-Daniela Godoy Martins Corrêa, ANP Head of Coordination of Local Content.

-Alternates will be their regular substitutes at ANP.

Representing productive sector

-Elói Fernández y Fernández, Director of the National Organization of the Petroleum Industry (Onip), as Full Member representative of Onip;

-Carlos Soligo Camerini, Onip Superintendent, as Alternate Member of Onip;

-Eduardo Santos, Relationship Manager with the S&T Community at Petrobras, as Full Member representative of the Brazilian Institute of Oil, Gas and Biofuels (IBP);

-Olivier Wambersie, Shell Technology General Manager, as Alternate Member of IBP.

Representing Academy, Science and research sectors

-Paulo Roberto Santos Ivo, Vice-President of Southeast Region of the Brazilian Association of Technological Innovation and Research Institutions, as Full Member representative of ABIPTI;

-Félix Andrade da Silva, ABIPTI Analyst Project Center, as Alternate Member of ABIPTI;

-Gustavo Henrique de Sousa Balduino, Executive Secretary of the National Association of Directors of Federal Institutions of Higher Education (Andifes), as Full Member representative of Andifes;

-Valter José Fernandes Júnior, Member of the College of pro rectors of Research, Graduate Studies and Innovation of the federal institutions of higher education (Ifes), as Alternate Member of Andifes.

The R&D clause includes, along with the payment of royalties and special participation, obligations of the contractors to explore and extract oil from the Brazilian underground. Royalties and special participation are deposited in the National Treasury. But the resources of R&D are applied in the facilities of the own oil companies or directly transferred to universities and research institutions or suppliers. Hence the need for ANP to establish rules and supervise their implementation.

If you want to know more on PhDsoft and how this Brazilian company has developed innovation in partnership with oil companies, contact us at +1 (713) 340-9958 or by the e-mail phdsoft@phdsoft.com.

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The Evolution of Corrosion Management

“If the present growth trends in world population, industrialization, pollution, food production, and resource depletion continue unchanged, the limits to growth on this planet will be reached sometime within the next one hundred years. The most probable result will be a rather sudden and uncontrollable decline in both population and industrial capacity”, concluded in 1972 the report The Limits to Growth, published by the Club of Rome.

This global think tank was the first to use computer simulation analyzing exponential economic and population growth versus finite resource supplies. The original version presented a model based on five variables: world population, industrialization, pollution, food production and resources depletion. These variables are considered to grow exponentially, while the ability of technology to increase resources availability is only linear. So the 1970’s would know the environmental movement.

Since corrosion has a direct impact in pollution, it was about the same time that the first evaluation of the cost of corrosion was conducted. The Hoar Report revealed that 3% to 4% of the GDP of industrialized countries is lost annually to corrosion. All similar evaluations performed later by different organizations basically came to the same conclusion. But the Hoar Report already emphasized that 25% of the annual cost of corrosion could be saved just by applying existing knowledge on corrosion control.

R&D efforts

The World Corrosion Organization published a whitepaper in 2009 (Dissemination, Research, and Development in Materials Deterioration and Corrosion Control) that concludes:

“To satisfy the basic needs of the 6.3 billion people on this globe, including proper nutrition, clean water, good health, safe housing, dependable energy, effective communication, and mobility, many technological changes with global dimensions must be accomplished. While this concept is widely appreciated as such, there is often only a limited awareness of how critical it is to solve corrosion problems and what the real implications are to society”.

The intention of the study was to demonstrate with several examples that future technological challenges can only be met by “immense R&D efforts worldwide in the fields of materials, surface protection, corrosion control, and condition-based monitoring”.

“It appears that in literally all cases, key problems related to materials degradation and corrosion must be solved. This involves materials stability under new environmental conditions or functional adjustment of environments and materials surface properties by appropriate surface modification methods. This work must include efficient management of corrosion mitigation and service integrity. Condition-based monitoring will be one of the key factors to ensure service integrity. However, this can only be accomplished with innovative sensor devices that have yet to be developed. Global standards should be established to foster condition-based monitoring as a standard procedure”, stated the document.

Maintenance and corrosion management systems

Duperron Marangon office at the beginning of the 1990sDespite the Digital Revolution and its growing popularity from the 1970’s, it was only in the beginning of the 1990’s that computers starter to be used to maintenance and corrosion management. Until that time, all the information of critical facilities, like ships or offshore platforms, was kept in papers that used to be spread in lots of piles when any repair must have been done.

“Then we were forced to follow blindly the price of shipyards without any control”, remember Duperron Marangon, naval engineer and consultant for Brazilian mining company Vale at that time, for the maintenance of its ships (the picture shows his office at the beginning of the 1990’s). It was a huge and non-intelligent work, so, he decided to develop a finite element calculator associated to digital spreadsheets that showed up to be much more efficient.

Ships are the largest steel structures produced by man. They go through a continuous process of maintaining their structures and equipment and, every five years, on average, need to stop in shipyards for structural repairs. Due to the aging fleet and the increasing environmental concerns, it has become essential to exercise better control over the maintenance of ships. Thus, they were natural candidates for carrying out validation tests of a maintenance management software.

CMMS

Today, a software like this is known as Computerized Maintenance Management System (CMMS). It is supposed to streamline the maintenance management of great responsibility structures, where failure may cause major damage, pollution and deaths, such as ships, oil platforms, bridges, aircrafts, industrial parks, minimizing the risk of accidents. The most advanced ones reproduces the 3D structures to simulate degradation over time, which results in a 4D perspective.

A software capable of performing intelligent maintenance management needs to have a graphical interface, because structures do not have identification numbers, as do the equipments, with each piece being recognized by a unique code. Even if each part of a structure is numbered in the construction project, the repair will occur in order to produce new regions, which can be inserted into the original or extend for many of them. The lack of this part number also prevents the use of the internet for the execution of quotations, since the shape of the repair and the region where it is located has a direct influence on the cost of implementation. The location, especially in large structures, has implications for the number of scaffoldings needed to perform the work.

The capability of knowledge management should be emphasized as well, because gathering information in a single database allows faster access, data security and consequent increased productivity. If you are interested in integrating the results with your ERP or other existing system, it must is also be possible. Otherwise, you will remain at Stone Age and information will just be dispersed in a very large number of plans, sketches and paper reports. Humanity is still not sure about the limits to growth in a planetary scale, but at least for corrosion management, as the music says, “the future has arrived”.

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Warning: You’re Losing Money by Not Using Corrosion Prevention

World’s foremost authority on corrosion, Nace International has just published the study “International Measurements of Prevention, Application and Economics of corrosion Technology”, Impact. In it, the association estimated at $ 2.5 trillion per year the overall cost of corrosion today, equivalent to 3.4% of world GDP. Prepared for two years and presented in Canada, the study calculated that the implementation of better corrosion prevention practices could result in an overall saving of 15% to 35% of the cost of the damage, ie between $ 375 billion and $ 875 billion.

Take a look at this 8 minute video.

“As the chief executive of Nace stated at the time, the study reinforces the need for a change in how the corrosion decisions are taken. Whether we are talking about oil rigs, ships, pipelines, airplanes or bridges, control and prevention are essential to avoid the disasters that are repeated from time to time”, says Duperron Marangon, CEO of PhDsoft and a specialist in maintenance management.

The only conclusion is: you’re loosing money by not using corrosion prevention on your company.

Impact includes a case study of corrosion management in the automobile industry that saved $ 9.6 billion in 1999, compared with 1975, to demonstrate the importance of adopting corrosion management systems throughout the life cycle of large structures such as those mentioned by Marangon. It states that the best practices in this area include: corrosion management systems that are integrated with the general policy of the organization; corrosion management information available to everyone in the organization, as well as linked to its overall objectives; and organizational leadership actively involved with the corrosion management decisions.

The problem is so critical, that NASA has a Corrosion Technology Laboratory that provides technical innovations and engineering services in all areas of corrosion.

As a university professor and CEO of PhDsoft, Duperron Marangon has been developing, in the last 20 years, softwares capable of increasing the efficiency of the process of maintaining large structures, while reducing costs. If you want to know more on corrosion or about projects in which the specialist is working nowadays, contact PhDsoft at +1 (713) 340-9958 or by the e-mail phdsoft@phdsoft.com.

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PhDsoft wins its 10th award since 2000

“The epic quest for oil, money and Power”, announces the subtitle of the classic book written by Daniel Yergin: “The prize”. At PhDsoft someone could add “for awards”. The company was founded in 2000 already being awarded by Finep at the I Venture Forum Brasil. Since then, it has never passed many time without recognition.

The last award was granted at the Rio ITech event, at Veiga de Almeida University. Before that, at 2015, PhDsoft had won the Louisiana Gulf Coast Oil Exposition (LAGCOE) New Technology Showcase, as Spotlight innovation technology.

Another highlight was in 2011, when PhDsoft won the Latin American and Caribbean Regional Partner Award in the Sustainability category at the Microsoft Worldwide Partner Conference. The Sustainability Partner of the Year Award recognizes exceptional partners who have delivered software and technology innovations built on the Microsoft platform that help people and organizations around the world reduce their impact on the environment.

“PhDC4D allows the customer to reduce maintenance costs by automating the engineering process of inspection and repair, and reducing unnecessary steel renewals due to subjective data interpretation. It also mitigates risks of catastrophic failures that could lead to environmental disasters by providing an accurate and comprehensive awareness of the structure integrity and risk levels. PhDC4D also provides regulatory compliance with Classification Societies Rules. Ultimately PhDC4D avoids accidents that can harm the environment as much as the BP accident in the Gulf of Mexico. Despite of deep water exploration in Brazilian, no incidents like that happened and this is partially due to PhDC4D contribution”, stated the company at the time.

In 2011, PhDsoft also won the Assespro Rio de Janeiro Award. In 2010 and 2008, PhDsoft won the Best Solution in Oil and Gas at the Rio Info Conference. It is really a great track record for such a recent story that reveals the potential of a glorious future.

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PhDsoft presents recent developments of PhDC4D to one of its clients

PhDsoft’s founder and CEO, Duperron Marangon spent last April 7th in a workshop with one of the company’s clients to explain the most recent developments of PhDC4D®, like piping integrity management. He also announced rapid piping modeling – reading data from Navisworks – as one of the ongoing developments.

PhDC4D® is a comprehensive system resulting from the synergistic integration of a 4D-space-time visualization software with a predictive corrosion algorithm, a regulatory code compliance engine and automation of engineering activities and best practices that consolidates a safer and cost-effective maintenance process for structures, piping and static equipment.

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PhDsoft wins another award

PhDsoft is proud to announce that is winning yet another award in recognition of its technology, this time in the United States along with a select group of only 6 companies.