ProcessIT Innovations

ProcessIT Innovations Anders OE Johansson ProcessIT Innovations www.processitinnovations.se www.processit.eu www.processindustriellautomation.se anders.oe.johansson@ltu.se Page: 1 2013-04-23 ProcessIT Innovations

Bothnia Bay Area plants &facilities Kiruna LKAB Nybergs Mekaniska LKAB Mecon Boliden Aitik Gällivare Stora Enso Mining and steel production Ore to steel Mechanichal industry Pulp and paper Metals and stainless Precious metals Energy Ferrufom Gestamp Hardtech SSAB LKAB/EBF swerea-mefos SCA Smurfit Kappa BL Gasification Boliden Skellefteå Fields Boliden Rönnskär Skellefteå Kraft Alimak Brokk Hydrauto KMT SCA Bio Fuel Komatsu Volvo Ålö LTU UmU Umeå Örnsköldsvik Domsjö Mondi M-real SEKAB BAE-Systems Hägglunds Drives MacGregor Cranes Kalix Luleå Piteå Skellefteå Billerud Kokkola Tornio Kemi Oulu Raahe Rautaruukki Boliden Kokkola Rovaniemi Outokumpu stainless UoO Outokumpu Mine Stora Enso Metsä-Bothnia Stora Enso Kemira Page: 2 2013-04-23 ProcessIT Innovations

ICT Trends for device growth Towards Trillion Node Net (cum grano salis) "[In 10 years' time], everything has connectivity. We're talking about 50 billion connections, all devices will have connectivity... Håkan Djuphammar, VP of systems architecture, Ericsson (2009)...at least 20 billion connected devices by 2020 and a 300-fold increase in traffic... John Woodget, global director, telecoms sector, Intel (2009)... the smart grid network will be 100 or 1,000 times larger than the Internet Marie Hattar, vice president of marketing, Cisco Network Systems Solutions The next billion SAP users will be smart meters Vishal Sikka, CTO of SAP (2009) Page: 3 2013-04-23 ProcessIT Innovations Källa: SAP

The BIG picture Globala economy x 20 World population increase x 4 Demand on resources increased 600 to 2 000 % Källa: McKinsey Global Institute Page: 4 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

The BIG picture Globala economy x 20 World population increase x 4 Demand on resources increased 600 to 2 000 % Källa: McKinsey Global Institute Page: 5 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

The BIG Picture Commodity prices have increased sharply since 2000, erasing all the declines of the 20th century Blue Institute Örjan Larsson mars 2013 Källa: McKinsey Global Institute

The BIG Picture DEMAND + 3 B middle class + 80 % steel + 2 B people + 40 % energy Blue Institute Örjan Larsson mars 2013

The BIG Picture Global Assets Demand Needs Resources INDUSTRIAL INNOVATIONS Page: 8 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

The Third Wave: Industrial IT and Automation MANAGING, ANALYsING, OPTIMIZING Page: 9 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

Transparancy 2. We will be better to integrate 3. We will opimize use of resources and energy more and better Page: 10 2013-04-23 ProcessIT Innovations 1. We will measure more Blue Institute Örjan Larsson mars 2013

15 000 B USD = BNP in USA The value of INDUSTRIAL INTERNET year 2030 Source: General Electric inkluderar viss flyg- och medicinsk teknik Blue Institute Örjan Larsson mars 2013

STRONG MARKET GROWTH STRATEGIC, IMPORTANT AND UNDER INVESTED MAKES THE MARKET INTERESTING We expect the global industrial automation market to grow at about 1.5 times global industrial production (IP) over the next cycle Credit Suisse, augusti 2012 Page: 12 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

STRONG MARKET GROWTH STRATEGIC, IMPORTANT AND UNDER INVESTED MAKES THE MARKET INTERESTING ERP MES DCS Källor: Manufacturing Execution Systems Market 2011-2016, MarketsandMarkets, 2011; Global Enterprise Resource Planning Software Industry 2012-2017, Lucintel, 2012; Bearbetad av Blue Institute, 2012 Blue Institute Örjan Larsson mars 2013 Page: 13 2013-04-23 ProcessIT Innovations

Page: 14 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

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Technology Trends in Industrial Systems Increasing usage of Internet Technologies e.g. TCP/IP, web services etc. Information Driven Interaction vs. Communication focus Distributed Business Processes Virtualization and Cloud Computing Multi-core Networked Embedded systems and GPU computing SOA-ready devices and systems Commercial DBs and tools for vizualisation & management Integration with business systems e.g. ERP, GIS etc. High performance analytics, asset management, reporting, etc. Page: 16 2013-04-23 ProcessIT Innovations Källa: SAP

The Future Internet and its services will depend on CPS Page: 17 2013-04-23 ProcessIT Innovations Källa: SAP

Some facts Swedish process industry 43% of exports 13% of Sweden's GDP 25% of business investment Important customers for Swedish automation suppliers Swedish automation industry 10% of the global automation industry Turnover of around 50 billion SEK > 1500 new jobs needed over the next five years in Mälardalen The Global Automation Market 188 billion 2007. ( 500 bn estimated to 2020) Page: 18 2013-04-23 ProcessIT Innovations

SUMMARY CHALLANGES ROLE Productivity create growth. Industrial IT & Automation are both practical and strategic conditions for productivity and for sustainable industrial processes. TEMPO The industry needs to create new business models that release investment and that valuate improvements. The industry needs to increase RDI investments. TECHNOLOGY The industry must develop robust solutions for data analysis and for process optimization that are simple to manage and implement. COMPETENCE The industry needs to attract new skills and talents in the area of methodology and analysis but also increase its knowledge about production processes. Page: 19 2013-04-23 ProcessIT Innovations Blue Institute Örjan Larsson mars 2013

Industrial process automation projects increased competitiveness Higher plant capacity Leads to Better utilization of resources Niche products products from secondary flows More efficient maintenance Improved production processes Higher capacity for change Good market flexibility Results in Good and accessible IT systems and developed process automation Page: 20 2013-04-23 ProcessIT.EU

Accelerating IT development Page: 21 2013-04-23 ProcessIT Innovations continues... examples Artificial Intelligence: High-frequency trading, Software agents, Natural language interpretation, Machine translation, Procedural storytelling, VR-only lifeforms, Machineaugmented cognition Internet: Cloud computing, Cyber-warfare, 4G, Mesh networking, Internet of things,virtual currencies, 5G, Reputation economy, Interplanetary internet, Remote presence, Exocortex Interfaces: Multitouch, Gesture recognition, Speech recognition, Augmented reality, 4K, Haptics, Holography, Telepresence, Immersive virtual reality Sensors: Depth imaging, Near-field communication, Pervasive video capture, Biometric sensors, Smart power meters, Biomarkers, Machine vision, Computational photography, Optogenetics, Neuroinformatics Ubicomp: Tablets, Volumetric (3D) screens, Flexible screens, Boards, Picoprojectors, Eyewear-embedded screens, Context-aware computing, Fabric-embedded screens, Reprogrammable chips, Skin-embedded screens, Retinal screens Robotics: Appliance robots, Smart toys, Robotic surgery, Self-driving vehicles, Powered exoskeleton, Commercial Unmanned aerial vehicles, Domestic robots, Swarm robotics, Embodied avatars, Utility fog http://envisioningtech.com/envisioning2012/?ncid=edlinkusaolp00000008 Source: Envisioning Technology

Risks with increased complexity in IT and automation systems Increased supplier dependency. Worse internal automation expertise. Lower internal purchasing expertise. More short-term automation solutions More difficult to see the potential in new solutions. Harder assess skill needs. More functionality can not be utilized Unstable system environment, increased system maintenance Leads to Reduced internal control system support Increased high competence and skills competition. Worse holistic approach to systems support. Reduced adaptability to new customer and market requirements More downtime, lower availability, reduced customer flexibility, etc. gives Reduced competitiveness and lower profitability Page: 22 2013-04-23 ProcessIT.EU

Bothnia Bay Area plants &facilities Kiruna LKAB Nybergs Mekaniska LKAB Mecon Boliden Aitik Gällivare Stora Enso Mining and steel production Ore to steel Mechanichal industry Pulp and paper Metals and stainless Precious metals Energy Ferrufom Gestamp Hardtech SSAB LKAB/EBF swerea-mefos SCA Smurfit Kappa BL Gasification Boliden Skellefteå Fields Boliden Rönnskär Skellefteå Kraft Alimak Brokk Hydrauto KMT SCA Bio Fuel Komatsu Volvo Ålö LTU UmU Umeå Örnsköldsvik Domsjö Mondi M-real SEKAB BAE-Systems Hägglunds Drives MacGregor Cranes Kalix Luleå Piteå Skellefteå Billerud Kokkola Tornio Kemi Oulu Raahe Rautaruukki Boliden Kokkola Rovaniemi Outokumpu stainless UoO Outokumpu Mine Stora Enso Metsä-Bothnia Stora Enso Kemira Page: 23 2013-04-23 ProcessIT Innovations

Page: 24 2013-04-23 ProcessIT Innovations The Mining Industry in Sweden. LKAB. Number one industry investor in Sweden 2010. Invest 5 6.000 MSEK / year Boliden Investments in Garpenberg 3.900 MSEK (2012-2013) 17% of all cost is energy Recycling of electronics. From 45 KTon to 120 Kton SMIFU - Sustainable Mine and Innovation for the Future LKAB, Boliden, KGHM + a number of global suppliers Strive for zero accidents, 30% reduction energy consumption, CO2, emissions ore losses Energy /electricity LKAB approx 4.0 TWh/year energy 2012. With 1.5 %of the nation s total consumption Boliden 3,7 TWh 2010. (72% of all energy is Electricity) Energy usage 2011 (est.) 384 TWh Industry 36%, Transport 25% Service&building 38% Energy in Industry (2008) 50% Pulp & paper, 15% iron&steel, 8% Chemical, 3% mining

The Forrest industry 10-12 % of Swedish Industry employment, value added, export Export value 2009. 123 BSEK Small import of goods large contribution to trade balance Directly employs 70 000 people and about 200,000 indirect Invest, on average,10 billion per year High-tech processes Leading Swedish exporter Lowest CO2 A emissions QUANTUM per LEAP ton ( pulp IN Innovation & Efficiency! www.processitinnovations.se paper) in the world Source: Skogsindustrierna och TVA-underlaget Page: 25 2013-04-23 ProcessIT Innovations

Innovation System model PROCESS INDUSTRIES - Plant owner TECHNOLOGY and SERVICE SUPPLIERS NEW BUSINESS ACADEMIA - University & institute PUBLIC AUTHORITIES and CLUSTERS IDEA Needs Big potential Risk Page: 26 2013-04-23 ProcessIT Innovations Meetings PROJECTS Studies R&D Projects Commercialization RESULT Regional growth Stronger SMEs Regional partners

ProcessIT Management Lena Gustafsson Staffan Sandström Seved Lycksell Martin Ärlestig Steering Board Lars Atterhem Chairman Biosteam N N Govenor Västerbotten Thomas Brännström InternetBay Kent Tano LKAB Margareta Rönnqvist SSAB Jerker Delsing LTU Lena Gustafsson Umeå University Anders Kyösti SCA Packaging Munksund Ulf Marklund Boliden Tomas Lagerberg ABB Corporate Research Seved Lycksell Skellefteå Kraft Marin Ärlestig Komatsu Forest Industry Advisory Board Knowledge in industry processes and needs Executive Management Anders OE Johansson Per Levén Thomas Gustafsson Katrin Jonsson Jan Björkman Kajsa Andersson ProcessIT, LTU ProcessIT, UMU LTU UMU LKAB Expandum Project officers (full or part time) Pär-Erik Martinsson Luleå Anders Jonsson Umeå Robin Norrman Umeå Ulf Andersson Luleå Kjell Olsson Luleå Page: 27 2013-04-23 ProcessIT Innovations

ProcessIT Innovations Recognized by OECD as a strong national R & I Milieu High and growing number of innovations and commercialization Constantly increasing revenue and growing industry relations Increasing primary industry and supplier involvement Over 80's companies involved in our project activities Building projects from continuous need inventory studies Strong impact on universities and research groups More and growing number of strategic partnerships Page: 28 2013-04-23 ProcessIT Innovations

Page: 29 2013-04-23 ProcessIT Innovations The ISA Pyramid

ProcessIT Area Defined by today s and tomorrows industrial processes and ICT systems INDUSTRIAL PROCESSES INDUSTRIAL SYSTEMS ICT-BASED control Production Maintenance(e-maintenance) Training Engineering Logistics measurement monitoring interaction communication COLLABO- RATION INFORMATION EXCHANGE INTEGRATION TECHNOLOGIES EMBEDDED SYSTEMS TECHNOLOGIES Page: 30 2013-04-23 ProcessIT Innovations

Field devices, sensors, I/O Process Control Enterprise management Management execution Large scale Process industry M&C scenario Operator consoles Local HMI Field buses Control and eng. room/rooms PS proprietary busses/connections Handheld devices Engineering Process section ERP MES QMS MIS Asset mgmt Maintenance Field buses Managers, planners etc desktops Enterprise Network Control Network PS History Process section PLCs BB devices Control and eng. room/rooms Operator Field buses PS Training GWY Engineering Process section Blackbox Blackbox control system Firewall Process section GWY Legacy DCS Remote access Interface Gateway/API GWY Backup UPS Power Substation Other subsyst. Process Equipment Process equipment Process equipment Process equipment Process equipment Page: 31 2013-04-23 ProcessIT Innovations crushing, screening, conveying, feeding, grinding, separation, pumping, concentration, processing, pelletizing, materials, transformers, switchgear

Regional National European /International Regional RDI-projects (in different stages - Pre-studies, pre-projects, projects and need finding activities) Project portfolios (SCOPE, GRAM,.. ) Technology clusters (Optical, Interaction, simulation) National (Swe - Finland) National strategic agenda Industrial Process Automation Project portfolios. Competence provision. Collaboration. Automation region, PPI, PIC, FindIT etc. European / International ProcessIT.EU Projects. Arrowhead. Roadmap Page: 32 2013-04-23 ProcessIT Innovations

Page: 33 2013-04-23 ProcessIT Innovations emaint satsning i Malmfälten COBS. Transportbandssystem Onlinemätning av COD i bioreningsanläggning - fas II Mätning i mobil miljö Mätning flotationstank Simulering av bandtransportör VSB Beslutstöd via Interaktiv Display för Lean II Fibermätning Stendetektering Brötdetektering Massaindex Energieffektivisering vid malning AESOP FP7 IP projekt Deltagande i JILIN projektet Branschanalys för VINNOVA (Gruv + IKT) Plattformsstrategi för svensk processindustri (del B) Nationell agenda fas 2 processindustriell automation SDR-radiomätning i Aitik Gasflödesmätning fas 3 emaintenance for Smart Asset Management NOSEG Beröringsfri mätning stock Simulering av sekundärvärmesystem och energibalanser Energy and Quality oriented modeling and control of REFiners NIR-kluster Mobile Warp Global Links Ljud i kontrollrumsmiljö Utveckling av sensor för mätning av tvättföluster Gram Mätteknik Scope Styr & Mät Styr & Mät Simulering ProIT Interaktion Mätning Mätteknik Bildanalys Mätning Mätning Kommunikation ProIT ProIT ProIT ProIT Gram Gram ProIT ProIT ProIT Scope Scope Scope Scope Scope

Operations Monitoring Engineering Overall idea Entrance A Project Management Entrance B Sales Procurement Maintenace Entrance C HR Logistik Page: 34 2013-04-23 ProcessIT Innovations

Phase 2 A SIO proposal Automation Region Processindustriella Centran Li-Lu ProcessIT Innovations Page: 35 2013-04-23 ProcessIT Innovations

More effective and broader corporate partnerships: 1. Establish an Industrial national leadership and a national collaboration platform for the area. Stronger integration with the university and college world: 2. Coordinate projects and networking activities with university and college based RDI environments that are identified as particularly strong and relevant to the area. 3. Coordinate and implement combined skills development initiatives with both business community, university and college partners. Strengthen the area s role and position in national and international innovation systems: 4. Substantial investments in National RDI programs in this area. Page: 36 2013-04-23 ProcessIT Innovations

Page: 37 2013-04-23 ProcessIT Innovations Processindustriell automation

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PURPOSE Our ambition is to highlight industrial process automation as a key enabler for the future European process industry. In the area Accelerate growth and technology development in Europe Innovations in ICT and automation technology. Incubation and implementation of strong R&D projects. European automation world class research thru access to highly challenging industry contexts. Page: 39 2013-04-23 ProcessIT Innovations

Ideal concepts. Identified white areas that require further development ROADMAP IDEAL CONCEPTS ARE: 1. Instant access to virtual dynamic factory 2. Increased information transparency between field devices and ERP 3. Real-time Sensing & Networking in Challenging Environments 4. Process industry as an agile part of the energy system 5. Management of Critical Knowledge to support Maintenance Decision Making 6. Automation service and function engineering 7. Open simulator platform 8. Automation system for flexible distributed production 9. System wide balancing of safety, security and production flexibility Page: 40 2013-04-23 ProcessIT.EU

5 application pilot domains: 4 years 80 partners LTU / ProcessIT.EU coordinator 69 Beuro Sweden, Austria, Belgium, Czech, Denmark. Finland, France, Italy, Latvia, Norway, Portugal, Spain, Netherlands, UK 1. Luleå tekniska universitet 2. Eistec AB, 3. Fotonic, 4. Abelko Innovation 5. SKF 6. Boliden 7. LKAB 8. Noda 9. BNearIT 10. Midroc Electro AB Page: 41 2013-04-23 ProcessIT Innovations

Short time goal Target and goals in new projects 1. Instant access to virtual dynamic factory Automatic model life cycle management, computational resources, business service development. Data to information. Training of staff and model based reasoning. 2. Increased info. transparency between field devices and ERP IP everywhere, middleware nowhere, seamless integration, industry requirements. 3. Real-time Sensing & Networking in Challenging Environments Robustness, calibration, energy harvesting, IoT, in situ sensors, cyber physical systems,m2m 4. Process industry as an agile part of the energy system Agile Integration, production flexibility. Automation for short and long term variations. Collaborative automation. Technologies for look up, loosely coupling and late binding,. 5. Management of Critical Knowledge to support Maintenance Decisions Quality assurance, context awareness, targeting and timing of information, business models 6. Automation service and function engineering Functionality for systems of systems, configuration and requirement management, model based development, 7. Automation system for flexible distributed production Faster product changes, faster ramp-up/down. Scheduling. Material tracking. 8. Open simulator platform Interoperability, numeric's, reusability, development tools. 9. System wide balancing of safety, security and production flexibility Risk management. Cryptography and intrusion detection & prevention. System architecture Page: 42 2013-04-23 ProcessIT Innovations

And what is this? Something to worry about? Page: 43 2013-04-23 ProcessIT Innovations

known physical world camouflage in an office near you! (?) Page: 44 2013-04-23 ProcessIT Innovations The industry's first enterprise-class penetration testing drop box. Through its innovative, patent-pending design, the Pwn Plug covers the entire spectrum of a full-scale pentesting engagement, from physical-layer to application-layer. Includes all release 1.1 features Includes 4G/GSM cellular, Wireless (802.11b/g/n), high-gain Bluetooth, & USB-Ethernet adapters Fully-automated NAC/802.1x/RADIUS bypass! Out-of-band SSH access over 4G/GSM cell networks! Text-to-Bash: text in bash commands via SMS! Simple web-based administration with "Plug UI" One-click Evil AP, stealth mode, & passive recon Maintains persistent, covert, encrypted SSH access to your target network [Details] Tunnels through application-aware firewalls & IPS Supports HTTP proxies, SSH-VPN, & OpenVPN Sends email/sms alerts when SSH tunnels are activated Preloaded with Debian 6, Metasploit, SET, Fast-Track, w3af, Kismet, Aircrack, SSLstrip, nmap, Hydra, dsniff, Scapy, Ettercap, Bluetooth/VoIP/IPv6 tools, & more! Unpingable and no listening ports in stealth mode Includes 16GB SDHC card for extra storage Includes stealthy decal stickers Compatible with SIM cards from AT&T, T-mobile, Vodafone, Orange, and GSM carriers in over 160 countries HSDPA/UMTS (850/1700/1900/2100MHz) GSM/GPRS/EDGE (850/900/1800/1900MHz)

Stuxnet: Lessons Learned Security awareness low and risk assessment is faulty. Many live on the don t touch a running system / I am not on the Internet motto Security problems of 2+ years old were not addressed Lifecycle management of assets and processes has to include security and be adjusted/revised on-demand for critical systems Do NOT trust single sources of data / verify independently (multiple information paths / checks). TRUST at device and system-wide level needs to be assessed! Security 101: ask/verify/check security/safety/quality requirements on supplier Prepare for the known threats, and plan for the unknown (e.g. via heuristics) Page: 45 2013-04-23 ProcessIT Innovations

ProcessIT the next steps More and deeper industry engagement Higher share of corporate automation R & D located ProcessIT cooperation More and stronger ICT companies Both regional and within the ProcessIT Network Stronger university collaborations More frequent interaction with students. Regional, national and European Initiate and drive the national strategic agenda "Automation for process industries Powerful presence on the European arena thru ProcessIT.EU Increased interaction with various regional growth actors. Eg municipalities, regional, clusters, industry associations, etc. An organizational supporting a long-term responsibility for regional development Build on established structures and practices To further accelerate the creation of innovation projects Establish ProcessIT Academy for regional knowledge transfer!? Page: 46 2013-04-23 ProcessIT Innovations

TACK For more info please visit: www.processindustriellautomation.se www.processitinnovations.se www.processit.eu Or contact: anders.oe.johansson@ltu.se 070-5625250 Page: 47 2013-04-23 ProcessIT Innovations