ARC Advisory Group Inc.

Confessions of an OT realist: For years, I’ve argued that the best-run factories don't run on SAP. They run on the specialized, deterministic automation and software ecosystem that operations teams trust. But what happens when enterprise architectures modernize for the era of Agentic AI? At Sapphire 2026, SAP proved it has moved completely past the experimental copilot sandbox. By anchoring its Business AI Platform with an open Industrial Data Fabric (via Databricks, Dremio, and Reltio) and deploying collaborative Multi-Agent Systems for the Autonomous Supply Chain, SAP is making the right moves to bridge the enterprise Digital Divide (with some ongoing questions about API limits and governance, and SAP's potential dependence on Anthropic Claude). But there is still a hard structural boundary at the plant gate. While SAP’s linguistic and probabilistic agents are built to expertly run the business of the supply chain, they must openly coexist with the deterministic, physics-informed edge platforms that control real-world factories. In my latest ARC Advisory Group Inc. blog, I break down how industrial customers can constructively align SAP Digital Manufacturing with their trusted OT ecosystem to escape pilot purgatory and scale true autonomous operations. Key highlights include: 🔹 Edge Resilience: Why predictable response times override cloud latency fears. 🔹 Multi-Agent Governance: Utilizing the SAP AI Agent Hub to prevent algorithmic friction between conflicting bots. 🔹 The 2030 Legacy Clock: Resolving the "AI Cold-Start" problem as SAP ME and MII march toward sunset. Read the full analysis below: #IndustrialAI #AgenticA #IndustrialDataFabric #CESMII #I3X #AutonomousEnterprise #OT #ITOTConvergence #SupplyChain #SmartManufacturing #ARCAdvisoryGroup

🚨 New Episode Out Today. #Industry #Talks by ARC Advisory Group Europe Are Open Digital Ecosystems the Key to Scalable Digital Transformation? Digital twins promise huge value for industry - but many initiatives still struggle to scale. Why? Because data silos, fragmented architectures, and limited interoperability continue to hold companies back. In our latest episode, ARC Advisory Group’s Luciano Narcisi and Alexey Grechko explore what needs to change 👇 🎙️ Topics include: • Why the conversation is shifting from Open Digital Twin to Open Digital Ecosystem • How open standards and shared data models improve scalability • The role of DEXPI e.V. and interoperable engineering data • How openness could better connect digital twins, AI, and industrial applications • Why keeping humans in the loop remains critical 👉 The big takeaway: The question is no longer if digital twins matter - but whether industry can unlock their full value without a more open and interoperable ecosystem. If you’re working with #DigitalTwin, #IndustrialData, or #DigitalTransformation initiatives - this episode is for you. 🎧 Tune in now and join the conversation. 👇 Links in the comments below. #OpenDigitalEcosystem #Interoperability #OpenStandards #Industry40 #SmartManufacturing #ARCAdvisoryGroup #ARC #Podcast

Is the era of "AI-washing" legacy industrial screens finally over? For the past year, industrial leaders have asked me what the UI of the future looks like for the factory floor. Slapping a generic chatbot onto a 20-year-old SCADA screen simply isn't going to cut it. In my latest piece for ARC Advisory Group Inc., I dive deep into the official launch of Cognite Flows and why it may represent the "Industrial IDE" the uncarpeted space has been waiting for. Here is what we explore: The System of Action: How Cognite is moving up the ARC 3-Axis Taxonomy autonomy curve to deliver a true action layer that empowers the frontline. Safe "Vibe Coding": Why accelerating application development using modern AI tools requires strict industrial guardrails to prevent costly factory-floor hallucinations. Unprecedented Speed: How a Top 10 Global Pharma company achieved a 75x faster time-to-value, turning a physical Kanban board into a live digital app in just one week. The battleground has officially shifted from the back-end data fabric to the front-line industrial experience. Read my full analysis below. #IndustrialAI #AgenticAI #IdnustrialDataFabric #DigitalTransformation #CogniteFlows #ARCAdvisoryGroup