The Industrial Internet of Things

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1 The Industrial Internet of Things (Connected Assets in the Value Network) CSIA Executive Conference San Diego, April 2014 Mark D. Sen Gupta Senior Consultant ARC Advisory Group Topic Introduction and Presentation Goals What is IoT? Why IoT? Is it real? 2 1

2 Terminology for this presentation Thing is used interchangeably with the terms: Machine Asset Product Device Physical Entity (Piece of) Equipment Personnel The Industrial Internet of Things is based upon enhanced connectivity of this stuff 3 Definition Internet of Things industrial Internet of Things (IoT) : the emerging practice of connecting intelligent physical entities, such as sensors, devices, machines, assets, and products, to each other, to Internet services, and to applications allowing Industrial companies to use information from these connected devices to lower costs, optimize processes, and create transformative new applications, services, or business models. IoT-connected applications typically support data acquisition, aggregation, analysis, and visualization. The IoT architecture builds upon current and emerging technologies such as mobile and intelligent devices, wired and wireless networks, cloud computing, Big Data, analytics, and visualization tools. The IoT concept underlies industrial solutions with marketing terms such as Smarter Planet (IBM), Internet of Everything (Cisco), and Industrial Internet (GE). 4 2

3 Industrial IoT is more than M2M 5 Industrial Internet of Things Optimize Asset and Operating Performance Industrial IoT and the Connected Asset Value Network: Digital Umbilical Cord Securely share selected asset performance information with asset manufacturer or partners Asset manufacturers can provide better support services Greater uptime, fewer disruptions Reduce asset lifecycle cost Supports Innovation Enables Product as a Service or other new business models Improve product design Leverage New Sensors as well as Data From Existing Systems to Improve Operating Performance 6 3

4 Main Parts of Industrial IoT Intelligent Assets Technology-enhanced with sensors, processors, memory, communications Software-defined behavior Reactive, predictive, and social Generate more data Potentially self-aware and autonomous Communications & Infrastructure Cloud-based Big Data storage Asset Value Chain Analytics and Software Asset Optimization and System Optimization Descriptive, Predictive, and Prescriptive Analytics Intelligent Information when and where people need it Support New Business Models People, Processes, and Systems Social, connected, better decisions, etc. 7 IoT Service and Virtual Entity (VE) Abstraction Levels 8 4

5 IoT Basic Concepts Virtual Entity; Software-Defined Machine Software Defined Machine Apps Other Participating Technologies and Concepts: Cloud, Internet, Analytics, Carriers, Networks, Edge Management, Security, etc. Virtual Device (Virtual Machine) Communication Protocols and Device Technologies Device (Machine) with sensors, intelligence, and communications 9 Software Defined Machine Pump Virtual Pump with 5 streams of data Software Pump Sensors Bearing Temperature Vibration Power Input Pressure Discharge Pressure Discharge Temperature Ambient Temperature Rotation Speed Select performance profile, buffering, communication frequency, security, etc. 10 5

6 Connected Asset Ecosystem Improve Performance with new Business Processes Example: Connected Pumps Purchasing Engineering Corporate Other Equipment Mfr Compressor Mfr Operations (n) Production Facilities Automation Mfr Local Service Providers(s) Maintenance Companies shown for example only, not actual use cases 11 Applications of Connected Smart Devices Measurement Automation Condition Monitoring Data Visualization Personnel Safety Remote Services Service Planning Replenishment Asset Utilization Asset Location Tracking Device, Asset Maintenance Compliance Software Update Repair Usage Audit Many more 12 6

7 Will the Industrial IoT Change Plant Software and Automation? Maintenance Engineering Purchasing Corporate Machine Mfr. Service Provider Enterprise New IoT Analytics and Applications Private Secure Connection to 3 rd Parties (e.g. via protected Wi-Fi network) Smart Machine IoT Smart Module Local IoT Compute and Communicate module Physical asset with sensors, actuators Plant Operations Emerging Option: Connect Assets Using New Technologies 13 Traditional vs Connected Asset Software Architecture Conventional Industrial Connectivity IoT Connectivity App App App Communication Interface App Named asset, part of plant model Machine with sensors 14 7

8 Old Models for Remote Asset Management 15 New Models for Remote Asset Management 16 8

9 Why Industrial IoT Lower costs for manufacturers AND suppliers Improved production Optimize processes Create new applications, services, or business models Supports better product innovation More? 17 Industrial Internet of Things - Opportunities Asset Value Chain 3 rd Party Services People ERP Enterprise Apps, Services New Opportunities: New Business Models New Services Decision Support Visualization Connected Apps Analytics, Big Data Connected Device Management CDM Platform: Device configuration Device management Application development Application management Diagnostics, alarms Enterprise integration Security Communications Control Intelligent Assets/Devices/Machines/Products Connected: Machines Products Assets Devices Sensors 18 9

10 What Skills does Industrial IoT Demand Cyber Security Network Architecture and Design (Cellular, Wireless and Wired) Big Data/Analytics SOA / XML / Java /.Net / HANA / Hadoop Virtualization/Cloud Application Specific Process/Machine Control Process/Machine Safety Field Networks & Smart Instrumentation /Sensors Video Physical security Soft skills (people) 19 Internet of Things Current State IoT market size and potential opportunities unclear, subject to hype No standard systems/networks/interfaces Multiplicity of communications, embedded intelligence, and sensor & actuator technologies Multiplicity of concurrent IoT research and development activities underway IoT benefits not yet clear and compelling Multiplicity of separate but sometimes overlapping IoT domains Health Care, Smart Manufacturing, Smart Cities, Logistics, Smart Houses, Smart Energy, Retail, Smart Transport, etc

11

12 LinkedIn Group 23 Thank You. For more information, contact the author at or visit our web pages at

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