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Io T Io T Connected Devices for the Industrial Internet of Things Paolo Musio November 5 th , 2015

Connected Devices for Industrial IoT

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Page 1: Connected Devices for Industrial IoT

IoTIoTConnected Devices

for the Industrial Internet of ThingsPaolo MusioNovember 5th, 2015

Page 2: Connected Devices for Industrial IoT

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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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

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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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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

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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