An Open Membership Consortium now 81 companies strong. IIC Founder Companies. As of

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1 An Open Membership Consortium now 81 companies strong IIC Founder Companies As of

2 The Industrial Internet: A Sense of the Future Richard Mark Soley, Ph.D. Executive Director, Industrial Internet Consortium

3 3 Agenda 01:30PM 01:50PM Overview and Outlook for the Industrial Internet Consortium Dr Richard Soley - Executive Director, Industrial Internet Consortium (IIC) 01:50PM 02:00PM Opportunity, Synergy and Convergence: Signposts on the Unchartered Path? Jeff Fedders, Intel Corporation and Founding Member, IIC 02:00PM 02:40PM As Time Goes By - Patricia Derler, UC Berkeley 02:40PM 03:20PM The Birth of IoT Dr. Sanjay Sarma, MIT 03:20PM 03:40PM Q & A 03:40PM 04:00PM Coffee break 04:00PM 04:30PM A Sense of the Future - Dr Keith Marzullo, National Science Foundation 04:30PM 05:00PM Transforming Vision into Reality - Dr Christopher Greer, NIST 05:00PM 05:30PM Projects in Progress - Dr Janos Sztipanovits, Vanderbilt University 05:30PM 05:55PM Q & A 05:55 PM Closing remarks

4 Where We ve Been September 15,

5 Even Robbing Banks! Stick em up! is now: 9 May 2013: Gang of cyber-criminals steals US$45 million completely online Brooklyn U.S. Attorney Loretta Lynch called it "a massive 21stcentury bank heist Eight members of the New York cell withdrew $2.8 million in cash from hacked accounts in less than a day Lynch called it a "virtual criminal flash mob. "It's a really easy way to turn digits into cash," said Gartner analyst Avivah Litan September 15,

6 Has the Internet Changed Everything? "If you don't like change, you're going to like irrelevance even less. - General Eric Shinseki, Chief of Staff, US Army September 15,

7 Discrete Manufacturing In 1980 when I was building expert systems to automate the debugging of Gould Modicon 584 programmable controllers, they used ladder diagrams to program them and data was printed for hand analysis. In 2014, the same is true. September 15,

8 Energy Grids In 1950 energy grids assumed that a small number of energy manufacturers delivered power to a large number of users, and the grid itself was never used to transmit information (even energy usage!). In 2014, this is still true. September 15,

9 Jet Engines In 1960, the first commercial jets had performance monitoring electronics, but that information had to be downloaded essentially by hand to do any sort of benchmarking or proactive failure prediction. In 2013, even though performance monitoring is even more complete on engines, there is no automatic fleet management or at the gate data collection. September 15,

10 Healthcare Device Integration In 1950 the first electronic healthcare monitoring devices were difficult to integrate, leading to a painful lack of meaningful holistic monitoring (e.g., respiration/o 2 sensing integration for patient monitoring). In 2014, a major project at Partners Healthcare/ Massachusetts General Hospital is in the experimental stages for integrating relatively simple devices. September 15,

11 No, the Internet Didn t Change Everything There is much more to be done: Oil & Gas Exploration Geological data integration from multiple sensing sources Rail & other transportation Failure sensing and automatic rerouting of multimodal systems, far more extensive than JapanRail automatic stop Smart homes & smart energy usage And on and on and on September 15,

12 The next revolution: An opportunity for a new wave of Industrialization/Internetization Wave 2 Industrial Internet Industrial Revolution Machines and factories that power economics of scale and scope Wave 1 Internet Revolution Computing power and rise of distributed Information networks Wave 3 Machine-based analytics: physicsbased, deep domain expertise automated predictive Adopted from Industrial Internet: Pushing the Boundaries (2012, Evans & Annuziata) 12

13 The Industrial Internet: Impacting 46% of the World s GDP From: Industrial Internet: Pushing the Boundaries (2012, Evans & Annuziata) 13

14 Savings and growth opportunities across every industry 1% savings from efficient Industrial Internet solutions could save billions in operational costs $30B fuel cost saving in aviation industry $66B fuel cost saving in gas powered fleets $63B productivity improvement in healthcare $90B reduction in Cap X in oil & gas exploration and development $27B productivity improvement in rail industry * Projected savings are based on 1% efficiencies/savings Source: Industrial Internet: Pushing the Boundaries (2012, Evans & Annuziata)

15 Yet there are current roadblocks to growth Government Industries Technology Standards The Industrial Internet: A $32 trillion opportunity Big Data Security Manufacturing Academics September 15,

16 The IIC: Things are coming together Government Industries Technology Big Data Standards Security Manufacturing Academics September 15,

17 An Open Membership Consortium now 81 companies strong IIC Founder Companies As of

18 What we do The goal of the IIC is to improve integration of the physical and digital worlds, to help drive adoption of Industrial Internet applications. Testbeds Innovation to drive new products, processes, services Technology & Security Architectural frameworks, interoperability, privacy & security of Big Data Thought Leadership Community to advance innovation, best practices and insights 18

19 How your company can participate Become a member Join in the working groups and make your voice heard o Get a seat at the table to influence the requirements development, technology adoption, and future direction of the Industrial Internet Network with IIC members to create and develop critical collaborations to benefit your company Participate in selected research projects and testbeds Become eligible to run for a seat on the IIC Steering Committee September 15,

20 The Future: Jet Engines How will we reduce jet engine failure and maintenance costs? September 15,

21 The Future: Healthcare How will we save lives by integrating medical devices? September 15,

22 The Future: Financial System Risk How will we sense a recurrence of September 2008, October 1987, November 1929? September 15,

23 There s a Pattern Sense potentially planet wide. Integrate sensor data. Real-time, predictive analytics based on benchmark data. Deliver visualization and decision support to policy makers. September 15,

24 Q&A Richard Soley, Executive Director Lynne Canavan, Program Director

25 25

26 Industrial Internet Transformation The Journey Begins Jeff Fedders September 15, 2014

27 Transformation is a long and winding road Transformational Impact Business Opportunities Private-Public Partnerships Open Technology Innovation Collaboration The journey is not straight-forward and will take time for grand impact.. 2

28 Industry Collaboration & Convergence Vision Vibrant Economy Social/Environmental Improvements Business Opportunities Healthy Eco-system Innovation Process National/International Initiatives Unifying/Grand Challenges Private/Public Partnerships Technology & Business Testbeds Standards Creation Reference Architectures Frameworks & Blueprints 2

29 Exploring the opportunities that IIC presents. The Industrial Internet Consortium opportunity spans the private and public domains across many global venues including standards, business, academia, and government partnerships to define architectural frameworks, validate business models, create ecosystems, and develop Testbeds for Interoperability, Innovation, and Collaboration. What can we expect? Industry Leaders with a Strong Voice Galvanizing towards a common Goal Creating impactful Transformation 2

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