Industrial Internet of Things
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1 Industrial Internet of Things - The New Frontier - ARC Industry Forum February 2015 Greg Gorbach Vice President ARC Advisory Group ggorbach@arcweb.com
2 Think Different To tap the potential of IIoT New Service Models New Products New Production Techniques New Business Processes New Competitors New Partners New Workers IIoT will significantly change the world. You won t participate with conventional thinking and an incremental approach 3
3 Think Different Then: Integration Now: 4
4 An IIoT Thing is An industrial asset A platform for new apps, services Remotely manageable Part of an ecosystem Secure Example: Intel Galileo board with Intel Quark processor Compressor With local capabilities: Computing: Processor & Storage Communication: Wi-Fi, Ethernet, Bluetooth, etc. Monitor Sensors, Drive Actuators Run analytics, agents, apps, etc. Stream data 5
5 Key IIoT and I4.0 Industry Groups Representatives are here at our Forum Dr. Reinhold Achatz Thyssenkrupp Dr. Richard Soley OMG Jim Wetzel General Mills Denise Swink SMLC 6
6 IIoT Drivers Reduced Downtime and Faster Service are Top Drivers Now Source: ARC Industrial Internet of Things Survey 7
7 IIoT Impacts Uptime Remote Monitoring & Diagnostics Access to Experts New Service Models ALM Operating Performance Process Optimization Flexible Control of Assets Worker Needs Collaboration Location Awareness Training Safety & Risk Mgmt Accident response Incident reporting Safety Logistics Materials Tracking and Management Spare Parts Marshalling MOM SCM Automation Enterprise Design 8
8 Industrial IoT Technologies and Architectures 9
9 IIoT Technologies - Industrial Apps - Mobile Devices - Modeling & Simulation - Software/Workflow/BPM - Analytics & Visualization - Cloud Computing - Network Technologies - Embeddable Computing & Communications - Smart Sensors 10
10 Data Industrial Internet of Things Architecture Decisions Services, Solutions Users, Systems SW & Analytics Cloud Actions Gateway, Network Smart Things Technology Enables Business Process Improvements 11
11 IIoT Maturity Model IIoT Redefines Assets Added Value Maturity Model IIoT Asset Capabilities Autonomous Conventional No intelligence or connectivity Instrumented Connectable or connected Provides data externally Software Defined +Some local intelligence +Software tunable asset +Enhanced data feeds Smart +Enhanced intelligence +Active condition monitoring +Self optimization +Interact with ecosystem IIoT Enabled +Additional Sensors +Real-time analytics +Onboard execution software +New business models +Performance guarantees Level of Maturity IIoT Potentially Redefines Asset Performance Expectations 12
12 The Emerging Smart Production Environment (IIoT, I4.0, etc.) New or Changing - Software: Analytics, APS, MES/MOM, EAM/CMMS, LIMS, PAM, Security, etc. - Mobility and enhanced worker connectivity Connected - Remote services; Product as-a-service Machine - Smart sensors, assets, network connectivity, cloud All along with traditional automation and enterprise systems Self-Planning Systems Flexible Worker Schedules Smart Warehouse Connected Supply Chain Collaboration Augmented Reality Smart Tools Connected Worker Smart Logistics Smart Components Video Presence (Expert Help) Location/Nav Services Access Control Services RFID Smart Carriers Apps Connectivity Platform Smart Machines - Connected - Software-defined - Agents, Apps - Sensors e.g. vibration, ultrasound, infrared etc. Remote Monitoring & Services Advanced Analytics IIoT Smart Module Smart Metrology Enterprise Systems Plant Systems and Assets Smart Containers Connected Enterprise 3 rd Party Services Connected Products Smart Products 13
13 ARC s IIoT Model for Connected Operations ARC s Industrial Internet of Things Model for Connected Operations 14
14 Industrial IoT Enables New Services and Business Models 15
15 Performance. Results. Outcomes. New customer expectations drive new economic models Products Services Product-Service Hybrid Shift from buying products and services to buying guaranteed results New product hardware/software requirements Data and information intensive operation New service delivery metrics and model New competencies and expertise New selling model If you don t disrupt your market, someone will 16
16 Rethink Industry Models Value Chain Opportunities for Product-Service Hybrids Other Plant Contract MFR Corp HQ OEM Supplier Finance HR IT Sales/Mktg Sustainability Distribution Procurement R&D Plant Ops Supply Chain Service Utilities Industrial/ Retail Customer Eng Service Provider Customer Intelligent, connected products set the stage for new services and new business models 17
17 Added Value IIoT Maturity Model IIoT Enables New Services Maturity Model IIoT Services Enablement Asset as a Service Conventional Maintenance Time-based Break/fix Condition Monitoring Add sensors Smart field devices Trend analytics Handhelds Remote Monitoring & Diagnostics +Enhanced Connectivity +Advanced analytics +Access to Experts Remote Services +Help Desk Integration +Platform +Service software +SLA +Expanded Services IIoT Enabled +Performance guarantee +Execution software +Enhanced SLA + Spares Mgmt + SC Software +Subscription Model Level of Maturity IIoT Enables New Business Models and Potentially Transforms the Supplier/Customer Relationship 18
18 Industrial IoT Use Cases 19
19 IIoT Example: Cement Plant - Analytics Using connectivity, data analysis to improve asset performance Analytics Workflow Cloud Reliability Engineer Improve the Processes Technician Data from Equipment Maintain the Assets Cement Plant 20
20 IIoT Example: Oil Platform Reduce NPT Avoid expensive unplanned downtime Service Staff Analytics Predict Seal Failure on Water Injection Pump Workflow Cloud Ship Seal to Rig Technician Data from Equipment (including pressure) Change Seal During Next Maintenance Cycle; Save $7.5M Oil Platform 21
21 IIoT Example: Oil Platform - Collaboration Access to global experts, share real-time information Common, shared, multi-pane, multi-channel, interactive live collaboration space with event monitoring and session recording Share desktops, apps, video feeds, data feeds. With messaging, access to contacts info and to experts Push To Talk; Radio-to-Telephone Patching, etc. Oil Platform 22
22 IIoT Example: Mining Tire Monitoring Avoid risk, downtime, and expense Predict Tire Failure Workflow Mine Operations Analytics Cloud Tire OEM Dealer s Tire Service Truck Technician Data from Tires and Equipment Change Tire At Safe Location; Avoid Risk, Downtime, and Expense; Redeploy Other Assets Haul Vehicle 23
23 IIoT Example: Compressed Air Station OEM helps avoid unplanned downtime in in-service products OEM Staff Visualize Asset Performance; Predict Machine Health Issues Workflow Analytics Cloud Stream data to OEM servers Technician Temperature, pressure level, delivered air volume, machine status, etc. Compressed Air 24
24 Added Value IIoT Maturity Model Acquiring and Implementing IIoT Maturity Model IIoT Solution Completeness Outsource/ As a Service Parts and Pieces Custom DIY Connected Devices Sensors Modules Gateways etc. Application +Analytics +Software + Integration IIoT Enabled Whole Solution +Connected Devices + Applications +Network +Platform +Security +Install +Startup + Monitoring +Business Optimization +Subscription Model +Performance guarantee +Execution software +Maintenance Mgmt s/w Level of Maturity IIoT Solution Offerings are Evolving from Hobby Kit to Whole Solution 25
25 Summary 26
26 IIoT Has The Potential to Deliver Innovative Products Innovative Services Increase Revenue Reduce Costs Improve Operations Save Time Delight Customers Innovative Business Models Energy Efficient Processes Improved Productivity Increased Visibility 27
27 Industrial IoT Challenges Cyber Security Technology Standardization Intellectual Property Ownership Social, political Complexity System complexity grows with the number of connected devices Cyber Security is the Biggest Challenge 28
28 You Don t Know How to IIoT Experiment. Learn. Seek Out New Partners. Now! Analytics Embeddable HW/SW Cloud Networking Cybersecurity Get ready Try out technologies Hire experts Develop partners Partners Technology Solution Implementation Service Provider etc 29
29 Industrial IoT and Industrie 4.0 Viewpoints Check out our Blog and Newsletter Website: bit.ly/iiotblog Subscribe to Newsletter: bit.ly/iiotnews 30
30 The Industrial IoT is already here The future is already here. It's just not very evenly distributed - William Gibson, science fiction author who coined the term cyberspace. 31
31 Thank You For more information, contact the author at or visit our web pages at 32
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