Category Archives: Financial

5 Key Facts About Rugged Servers and the Internet of Things

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If you pay attention to tech news, you may have noticed the recent buzzword, the “internet of things.” While this is a pretty silly moniker, it refers to a situation in which objects, people, or even animals are given unique identifiers, enabling them to transmit data over a network without any interaction with another human or a computer. Through the use of wireless technology and rugged servers, the Internet of Things (IoT) has evolved into a complex network with limitless possibilities.

1. The Internet of Things is All Inclusive

When you talk about the internet of things, there are almost no limits to what types of ‘things’ can be considered. A ‘thing’ can be a human with a wireless heart monitor, livestock with biochip transponders, or even an automobile that can alert its driver when the tire pressure is low. In short, a ‘thing’ can be anything that can be measured with a sensor, given a unique IP address, and transmitted via wire or wirelessly.

2. Machine-to-Machine Transmissions Most Common

Most of the internet of things at this point today is comprised of machines speaking with other machines. Often this is referred to as M2M for short. For instance, many machines used in the manufacturing, power production, and oil and gas utilities already transmit data between each other in order to provide time-sensitive information that is central to their operation. For instance a rugged server atop a weather station might record and wirelessly transmit data to a meteorological team on the ground.

3. Advancements in IP Address Technology

In order to access, or be accessed by, the Internet and its users one needs a unique IP address assigned to their computer or website. In the past, this was a simple numerical address. However, IP addresses have advanced so far that theoretically there could be a unique IP address assigned to every atom on the earth, and there would still be plenty of addresses left over for multiple more earths.

4. Traffic Increases Lead to Security Concerns

As a result of the advancements in both IP technology, and the increase in the number of data nodes that are actively capturing data and transmitting it to a server somewhere. As this traffic ramps up and more and more people start recording and transmitting data for their own personal reasons, issues like data privacy and security will become of critical importance as the IoT continues to evolve.

5. The IoT is Not New

Although the term ‘The Internet of Things’ was not coined until around the turn of the century, it has been in effective practice for several decades. In fact, the first Internet equipped appliance was a soda machine at Carnegie Melon University built in the early ’80s. Programmers were able to connect to the machine via a network to check the status of the machine and whether their favorite beverage was stocked in the machine before they made the trip over.

The Importance of Business Financial Analysis and Management

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Planning and Control are the two most important ingredients to a Successful Business. A Business Plan takes most of the guess work out of Business Strategy and Control through solid Financial analysis. Financial Data provides a way to gauge where you are in your Strategic Plan, telling you where changes in your Plan are necessary. Because of this, Financial Data Analysis and Management are vitally important to running a successful business.

It is extremely important to have a suitable Accounting System installed throughout your business so data acquisition is easy. You cannot manage your Business for Profitability without a good Accounting System. My CPA has a bookkeeper who comes out to the business to help install the Accounting System and show us how to work it. All of this is done with the guidance of the CPA but at a fraction of the cost. A good Bookkeeper is invaluable in helping capture Financial Data. Having an established working Accounting System in place will minimize the fees a CPA charges to analyze your tax liability and prepare your tax returns.

An Accounting System is typically built around the following key Financial Management tools:

– Income Statement (Profit & Loss Statement)

– Cash Flow Statement

– Balance Sheet

– Budget

– Breakeven Analysis

By having a Financial Management system in place, you can easily identify early warning signs or spot particularly profitable areas. Not having a system in place to analyze and organize Financial Data makes it impossible to effectively manage, grow and control a business. It makes it impossible to gauge the success (or lack there-of) of your Planning and Strategy. Moreover, used incorrectly, inaccurate Financial Data can be disastrous for a company’s livelihood.

An Accounting and Financial Management System is only as useful as it is used systematically throughout an entire business. It is extremely important to implement the system into the very fabric of the business and be used systematically. The Accounting System is a reflection of the health, or lack thereof, of a business and from which business decisions are made. Make sure to set it up right, train your people on it and most importantly, use it!

Two principal objectives of any business are to be Profitable and have Cash Flow to pay obligations. The Income Statement and Cash Flow Statement figure prominently in this area. The Income Statement represents how well a Company is operating, and the Cash Flow Statement shows how well a business is managing its Cash. Profit or Loss on one side and Liquidity on the other.

The trick is to find a good balance between Profits and Liquidity, which when not well planned for, can be very difficult to maintain. Fast Growth with high profits can drain the liquidity of a business, so being Profitable is no guarantee you’ll stay in business. The role of the existing and projected Cash Flow and Income Statement is to help you identify problems areas so you can effectively plan for them, such as raising more capital, infusing more equity or obtaining finance. Moreover these two statements help you identify areas which can be better controlled and managed, forestalling the need of additional capital and funding.

The Breakeven Analysis is based on the Cash Flow and Profit & Loss Statement. The Breakeven Statement and Chart is extremely important because it shows the revenue volume from sales that are required to precisely balance the sum of your fixed and variable expenses. The Breakeven Analysis can be extremely helpful when:

– Setting Product and Service Price Levels

– Deciding whether to purchase or lease equipment / building

– Figuring out profit projections based on various sales levels

– Determining if new employees are required

– Planning ahead for finance / capital required in the future

– Making Strategic Objectives more tangible and achievable

– Measuring your Company’s progress toward Profit goals

The Balance Sheet records the past effects of company decisions (or lack thereof) and projects the affect of future Plans. The Balance Sheet is a record of the company’s Liquidity and Owner’s Equity. These variables are directly affected by the Income and Cash Flow statements. The Balance Sheet is the often overlooked Financial but it has a lot of utility:

– Shows the effect of past decisions

– Keeps track of a Company Cash Liquidity Position

– Records the level of Owner’s Equity

– Quickly shows the condition of the business

A Budget Analysis compares a Company’s Actual Performance to Projected Performance on a monthly, quarterly and annual basis. The Budget is a great tool to guard against excessive, unmitigated expenses and is closely tied to the Strategic Objectives the company has set. Analyzing the Income Statement and Cash Flow Statement projections against Actual Performance is an excellent control tool, which can quickly address problems before they become too severe. Little oversights and mistakes in a Company’s Projections spread over time can have a disastrous affect. The Budget Analysis is your guard against that.

Working together, the Income Statement, Cash Flow Statement, Balance Sheet, Breakeven Analysis and Budget Analysis provide a complete picture of a company’s Current Operations, Liquidity, Past Operations and Future Viability. Working through an interactive Accounting System can be a very useful tool in determining future business scenarios and analyzing past mistakes. Understanding the financial implications of your Financial Decisions can mean the difference between your company’s success and failure. Probably the most important financial is your Cash Flow Statement but understanding all of these financials and how they work together is the key to a company’s success. Projections are based on assumptions – make sure these are well thought out and as realistic as possible.

Computer Aided Manufacturing Applications

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Computer Aided Manufacturing (CAM) refers to an automation process, which accurately converts product design and drawing or the object into a code format, readable by the machine to manufacture the product. Computer aided manufacturing complements the computer aided design (CAD) systems to offer a wide range of applications in different manufacturing fields. CAM evolved from the technology utilized in the Computer Numerical Control (CNC) machines that were used in the early 1950s. CNC involved the use of coded instructions on a punched paper tape and could control single manufacturing functions. CAM controlled computer systems, however, can control a whole set of manufacturing functions simultaneously.

CAM allows work instructions and procedures to be communicated directly to the manufacturing machines. A CAM system controls manufacturing operations performed by robotic milling machines, lathes, welding machines and other industrial tools. It moves the raw material to different machines within the system by allowing systematic completion of each step. Finished products can also be moved within the system to complete other manufacturing operations such as packaging, synthesizing and making final checks and changes.

Some of the major applications of the CAM system are glass working, woodturning, metalworking and spinning, and graphical optimization of the entire manufacturing procedure. Production of the solids of rotation, plane surfaces, and screw threads is done by applying CAM systems.
A CAM system allows the manufacturing of three-dimensional solids, using ornamental lathes with greater intricacy and detail. Products such as candlestick holders, table legs, bowls, baseball bats, crankshafts, and camshafts can be manufactured using the CAM system. CAM system can also be applied to the process of diamond turning to manufacture diamond tipped cutting materials. Aspheric optical elements made from glass, crystals, and other metals can also be produced using CAM systems.
Computer aided manufacturing can be applied to the fields of mechanical, electrical, industrial and aerospace engineering. Applications such as thermodynamics, fluid dynamics, solid mechanics, and kinematics can be controlled using CAM systems. Other applications such as electromagnetism, ergonomics, aerodynamics, and propulsion and material science may also use computer aided manufacturing.