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IoTIoTConnected Devices
for the Industrial Internet of ThingsPaolo MusioNovember 5th, 2015
IoT
01/05/2023 Paolo Musio 2
ContentExecutive Summary and RecommendationsThe Industrial Internet of Things (IIoT): Key Questions: What, Why, When Readiness Barriers and Drivers How we can help:
executive exchange, value assessment, and planningTake AwayQ&A
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Executive SummaryKey Findings
IoT is a disruptive technology that will change the Industry over the next decade.The Industrial Internet of Things (IIoT) shall be a paramount topic in your strategy plan. This can be very challenging, since:
The use cases, timeline and consequences of IIoT are hardly predictable
Multi-domain experts are required to understand the technology options and business opportunities
Drive your safe and successful journey to IIoT with: Reduced risk Increased return on investment Reduced time to market
The key components for your IIoT Strategy Plan, i.e. Competitive Analysis, Business Case, and Solution Design.
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Executive SummaryKey Recommendations
Barriers and Drivers Business Benefits
IoT is at the peak of hype enticing attention and investements for the next years, Industrial automation will drive the growth. According to the WEF, IIoT adoption will change the business in 4-phases. But few players have developed a comprehensive IIoT strategy, with investments to match its development
Next Step: A Competitive SWOT Analysis is required to assess the IIoT strategy versus yours competitors.
Interoperability is a must for a future-proof solution, leverage the IoT ecosystem (e.g. LoRA) avoiding vertical silos and proprietary solution.
Security assessment of target solutions as a trade-off of costs vs. risks
E2E approach: connectivity, cloud, big data analytics, and applications are key components of the IIoT solution Next Step: Design your IIoT solution, plan for
experimentationsBarriers: Readiness: most players are not ready to take the initiative, Lack of interoperability/standards, Security concerns,
uncertain ROI Legacy equipment, technology immaturity, lack of
talent/expertise, data diversity Drivers:
Optimized asset utilization, reduced operational cost, improved worker productivity, and new revenue streams
The perfect storms: availability of IIoT enablersNext Step: Define Your Priorities, As-Is vs. To-Be analysis
Market Advantage: Readiness depends on the partners. Key Opportunities: Reimagining industry and business models, e.g. XaaS,
Outcome economy Capitalizing the value of the Big Data Pyramid Productivity Gains: IIoT will reduce costs for Maintenance
and Unplanned Downtime; IIoT will improve efficiencies and processes.
Next Step: We need to work a Business Case to estimate the IIoT RoI
Market Technology
IIoT Strategy
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Common Device
Evolution to a Smart Device
Evolution to a Connected Device
What is it?
CPU
...embedded systeminteracting with the environment
...IP device
connected with the WWW
An object that execute specific
tasksAn industry (r)evolution. Which is the Current Status? As-Is vs.
To-Be analysis
sensors
CPU
actuatorsPw
supply
IP
SMS
Data
App
O& M
Ext. 32°C
Cool the
room
Statistics of hot conditio
ns Alert
Plan a check-
up
Loca
tion
Ext. 32°C
Power off Ext.
32°C
Max Power
to FANs
Alarms
pause low
priority function
s
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Is It Compelling?
Cool Car! Has it Got WiFi?
A disruptive technology, with opportunities and threats
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Why now?
7
IoT
RoboticsAffordabl
e Sensors
Lab-on-a-Chip
RFIDObjects Tagging
WirelessNFC, LBS
IP Commodi- tazationBandwidt
h
Cloud & Big Data
The Perfect Storm of IoT enablers
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What’s the buzz? The Hype…
8
Gartner Hype Cycle2015
At the peak of hype enticing attention and investements for the next decade
IDC: IoT market to hit $7.1 trillion by 2020
$7.1MM
$15MM
GE: $10:15 trillion increase in global GDP over the next 20 years, thanks to gains in productivity$1.
9MM
Gartner: $1.9 trillion of cost savings and improved productivity$30
9KM
Gartner: $309 billion in additional revenue for suppliers of connected devices by 2020
50 KM
Cisco: 50 billion devices connected to the internet by 2020, 25 billion by 2015
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Near and Long Term views over four steps
What’s the Buzz? IIoT impact…
Source: World Economic Forum “Industrial Internet of Things: Unleashing the Potential of Connected Products and Services” - January, 2015
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Where? Everywhere…
10
IoT The world is moving to IoT,
but any sector has a different roadmap,
solutions and timeline...
A Pervasive and Broad Ecosystem
Low Throughput Networks (LTN)
The Alliance for Internet of Things Innovation (AIOTI)
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01/05/2023 Paolo Musio
When? Depends on the sector… Source: Cisco based on Beecham Research, Pike Research, iSupply Telematics report, US DoT
11
• Smart Meters• Distribution Automation• Field Area Network• Premise • EV Charging Mgt• Renewable / Distributed Energy
Energy and Utilities500M:1B devices
• Navigation, • Tolls, Traffic Management
• Safety, Collision Avoidance
• Video • Emergency Assistance • In-vehicle diagnostics • Intelligent SignageAutomotive500M+ devices
• Intelligent Transport• Smart Buildings• Smart Government• Healthcare• Structural Management• Smart Water Management
• Smart Parks
Smart Cities1B+ devices
• Surgical Equipment• Implants• Remote Monitoring• Telemedicine• Mobile Labs• Diagnostics
Healthcare100M+ devices
• Intelligent asset utilization
• Smart Maintenance• Intelligent Pumps, Valves
• Smart Pipelines• Intelligent Material Handling
• Location Aware Safety• Smart Tags Industrial1B+ devices
• Surveillance, Tracking• Remote Weapons Systems
• Emergency Services• Water Treatment• Environmental Monitoring
• Emergency ServicesSecurity and Public Safety100M+ devices
• Fuel Stations• Gaming, Social Events• Vending Machines• Supermarkets• Vending Machines• POS Terminals• Smart Tags
Retail200M+ devices
Applications per Sector and size
IoT readiness differs per
industry and per country
IoT
Source: PWC (Dec 2014)
Respondents: 1,500 Business and technology executivesTime: Dec 2014Geography covered: Global
Use Case: Industrial Internet
Energy &
Mining
Power &
Utilities
Automotive
Industrial
Hospitality
Healthcare
Retail
Entertainment
Technology
Financial
Services
Have invested
33% 32% 31% 25% 22% 20% 20% 18% 17% 13%
IIoT Readiness: Top 10 industries investing in sensors for IoT implementation
• A manufacturing plant distributes plant monitoring and optimization tasks across several remote, interconnected control points.
• Specialists once needed to maintain, service and optimize distributed plant operations are no longer required to be physically present at the plant location, providing economies of scale.
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Are You Ready?
13
Source: Accenture (Jan 2015)
Survey: AccentureRespondents: 1,400 global business leaders (736 CEOs)Geography Coverage: Global
There is gap between perceived IIoT readiness and reality
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Understanding Your PrioritiesDrivers
Source: World Economic Forum “Industrial Internet of Things: Unleashing the Potential of Connected Products and Services” - January, 2015
How important are these business benefits in driving your company to adopt the IIoT?
And More…• Remote Monitoring (more
efficiency)• Ubiquitous access to/from the
internet• First-mover market advantage• New Business Model, e.g. XaaS,
LPWA Service Provider, Outcome Economy
• R&D Value: IPR, expertise, standards/fora influencer
• Data Value: Big Data Pyramids and Analytics
• Financial Incentives, e.g. Green Technology Survey: WEF
Respondents: 250 market leaders, members of IIC, and Industry 4.0 Geography Coverage: Global
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Understanding Your Priorities
BarriersSource: World Economic Forum “Industrial Internet of Things: Unleashing the Potential of Connected Products and Services” - January, 2015
What are the greatest barriers inhibiting you from adopting the IIoT?
And More…:• Which Applications will be
profitable? When?• Compliance to (National)
Regulations both Industry and Internet
• Human Factors, e.g. unions reactions
• Impacts on Product Life Cycle• Engineering, e.g. Evolvability,
Scalability, Data Volume, Lifetime, Costs, Expertise, etc…
Survey: WEFRespondents: 250 market leaders, members of IIC, and Industry 4.0 Geography Coverage: Global
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Design: Addressing the Key ChallengesSecurity
17
Hackers Remotely Kill a Jeep on the Highway—With Me in It
Requirements: Confidentiality Integrity Availability, e.g. radio
jamming, tampering PrivacySolutions: Encryption, e.g. TLS or
IPSec Muthual Authentication Engineering, e.g. channel
hopping, hardening Anonymisation
Security Assessment as a Trade-off of Costs and Risks
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Design: Addressing the Key ChallengesInteroperability
Avoid Vertical Silos and Proprietary Solutions
Low Throughput Networks (LTN)
Compliance to Standards (e.g. WiFi or 6LoWPAN) and alignment to Open Fora will:• Mitigate the interoperability hurdles• Improve the evolvability of the solution• Reduce Costs by leveraging on Industry Ecosystem• Provide with a Future-proof investment
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Design: Addressing the Key ChallengeEngineering the Connected Device
19
CPU
Eng
inee
ring
E2E(Cyber)Security
(Small) Size
(Low) Cost
(across)Standards
Evolvability
Small µP (8-
32bit)
QoS(Latency,Jitter,BW)IP
Low Power (batteries) - Low Consumption –
LifeTime*
Volumes
LifeCycle
Low power Lossy Network (LLN), e.g. 6LoWPAN or
PLC
Recommended approach: experimenting and prototyping
Slow I/O
(Kbps)
Ecosystem
Small RAM (KB)
I&CMaintenance Antitamper, AA(A),
Encription, VPN...
(*) impacting cost and performances Applications
IT integration, Cloud, Big Data*
(*) volumes and I/O frequency can determine a data flood
Examples
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01/05/2023 Paolo Musio
Design:E2E Architecture, Data Flow and Skills…
20
IoT Devic
eAcces
s Point
INTERNET
Applications
Data Base
Big Data
Analytics
Network
IoT Engineer (Cloud) Architect Data Scientist
IPWire(less)
6LoWPAN802.15.4
Network (Cloud), (Big) Data, and Security are to be covered in the IIoT Strategy Plan
Security Architect
IoTControl
SensorsTemp
MotionCamera
LightAir Q.ty
Data
Information
Knowledge
Wisdom
Senses
WisdomKnowledge
Information
Data
Senses
IoTIoT
Q&A“Victorious warriors win first and then go to war…”
“Move not unless you see an advantage…If it is to your advantage, make a forward move…”Sun Tzu, The Art of War
Metcalfe’s Law: the value of a network is proportional to the square of the number of compatible communicating devices connected to
the system
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References1. “EU Commission’s Action Plan on IoT”, European Commission, June 2009
2. "Industrial Internet of Things: Unleashing the Potential of Connected Products and Services”, WEF, January 2015
3. “10 Top Challenges Industrial IoT Must Overcome in 2015”, EE Times, 12/24/2014
4. “Winning with the Industrial Internet of Things: How to accelerate the journey to productivity and growth”, Accenture, 1/19/2015
5. “Reimagining Business With the Industrial Internet of Things”, Accenture, January 2015
6. “Industrial IoT Market Worth $319.62 Billion by 2020”, Markets&Markets, November 2014
7. “Industrial Automation and Wireless IoT”, Reportlinker, May 2015
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Acronyms6LoWPAN IPv6 over Low power Wireless
Personal Area Network PLC Programmable Logic Controllers
E2E End-To-End ROLL Routing Over Low Power and Lossy Networks
I&C Installation and Commisioning SCADA Supervisory Control And Data Acquisition, includes PLC
ICS Industrial Control System XaaS Anything-as-a-Service
IIC Industrial Internet Consortium WSN Wireless Sensor Network
IoT Internet of Things
IIoT Industrial IoT
LLN Low power and Lossy Networks
LTN (ETSI) Low Throughput Network