Connected Devices for Industrial IoT

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Connected Devicesfor the Industrial Internet of ThingsPaolo MusioNovember 5th, 2015

IoT

IoTInternet of Things by British technology visionary Kevin Ashton in 19991

ContentExecutive Summary and RecommendationsThe Industrial Internet of Things (IIoT):Key Questions: What, Why, WhenReadinessBarriers and DriversHow we can help: executive exchange, value assessment, and planningTake AwayQ&A29/09/2016Paolo Musio2

IoTExecutive SummaryKey FindingsIoT 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 predictableMulti-domain experts are required to understand the technology options and business opportunities Drive your safe and successful journey to IIoT with:Reduced riskIncreased return on investmentReduced time to marketThe key components for your IIoT Strategy Plan, i.e. Competitive Analysis, Business Case, and Solution Design. Paolo Musio329/09/2016

IoTExecutive SummaryKey Recommendations29/09/2016Paolo Musio4Barriers and DriversBusiness BenefitsIoT 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 developmentNext 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 ROILegacy equipment, technology immaturity, lack of talent/expertise, data diversity Drivers: Optimized asset utilization, reduced operational cost, improved worker productivity, and new revenue streamsThe perfect storms: availability of IIoT enablersNext Step: Define Your Priorities, As-Is vs. To-Be analysisMarket Advantage: Readiness depends on the partners. Key Opportunities:Reimagining industry and business models, e.g. XaaS, Outcome economyCapitalizing the value of the Big Data PyramidProductivity 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 RoIMarketTechnologyIIoT Strategy

IoT

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What is it?29/09/2016Paolo Musio5

CPU

...embedded systeminteracting with the environment...IP device connected with the WWWAn object that execute specific tasksAn industry (r)evolution. Which is the Current Status? As-Is vs. To-Be analysissensors

CPU

actuatorsPw supplyIP

SMSDataAppO&MExt. 32CCool the roomStatistics of hot conditions AlertPlan a check-upLocation

Ext. 32CPower offExt. 32CMax Power to FANsAlarmspause low priority functions

IoTa smart object is an item equipped with a form of sensor or actuator, a tiny microprocessor, a communication device, and a power source. The sensor or actuator gives the smart object the ability to interact with the physical world. The microprocessor enables the smart object to transform the data captured from the sensors, albeit at a limited speed and at limited complexity. The communication device enables the smartobject to communicate its sensor readings to the outside world and receive input from other smart objects. The power source provides the electrical energy for the smart object to do its work.5

Is It Compelling? 29/09/2016Paolo Musio6

Cool Car! Has it Got WiFi?

A disruptive technology, with opportunities and threats

IoTAutomotive electronics already make up about 20 to 40 percent of a cars final manufacturing costsEuropean Commissions Action Plan on IoT, published in June 2009, had declared: The scope of IoT applications is expected to greatly contribute to addressing todays societal challenges: health monitoring systems will help meet the challenges of an ageing society; connected trees will help fight deforestation; connected cars will help reduce traffic congestion and improve their recyclability, thus reducing their carbon footprint. This interconnection of physical objects is expected to amplify the profound effects that large-scale networked communications are having on our society, gradually resulting in a genuine paradigm shift.6

Why now?Paolo Musio7The Perfect Storm of IoT enablers 29/09/2016

IoTRadio Frequency IDentification (RFID), Location-Based Services (LBS), Lab-on-a-Chip (LOC) sensors, Augmented Reality (AR,) robotics and vehicle telematics are some of the technology innovations that employ both M2M and M2H communications within the IoT as it exists today. They were spun off from earlier military and industrial supply chain applications; their common feature is to combine embedded sensory objects with communication intelligence, running data over a mix of wired and wireless networks.What has really helped IoT gain traction outside these specific application areas is the greater commoditization of IP as a standard communication protocol, and the advent of IPv6 to allow for a unique IP address to each connected device and object. Researchers and early adopters have been further encouraged by advancements in wireless technologies, including radio and satellite; miniaturization of devices and industrialization; and increasing bandwidthh, computing, and storage power.7

Whats the buzz? The HypePaolo Musio8Gartner Hype Cycle201529/09/2016

At the peak of hype enticing attention and investements for the next decadeIDC: IoT market to hit $7.1 trillion by 2020$7.1MM$15MMGE: $10:15 trillion increase in global GDP over the next 20 years, thanks to gains in productivity$1.9MMGartner: $1.9 trillion of cost savings and improved productivity$309KMGartner: $309 billion in additional revenue for suppliers of connected devices by 202050 KMCisco: 50 billion devices connected to the internet by 2020, 25 billion by 2015

IoTGartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications, and how they are potentially relevant to solving real business problems and exploiting new opportunities.

The market associated with the Industrial Internet of Things promises tremendous growth.Ciscos Internet Business Solutions Group predicts that by that by 2020, 50 Billion devices will be connected to the internet.Gartner forecasts $1.9 trillion in cost savings, improved productivity, and factors associated with connected devices and services.General Electric believes that the Industrial Internet has the potential to increase global GDP by $10 trillion to $15 trillion over the next 20 years. IIoT could dramatically reduce the cost of industrial maintenance. Expenses associated with maintaining equipment:- Steam and gas turbines at power plants -- $7 billion Aircraft engines -- $10 billion Freight trains -- $3 billion CT and MRI scanners in healthcare facilities -- $250 million

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Near and Long Term views over four steps

Whats the Buzz? IIoT impact Source: World Economic Forum Industrial Internet of Things: Unleashing the Potential of Connected Products and Services - January, 201529/09/2016Paolo Musio9

IoTWEF research shows that future evolution of Industrial Internet will likely follow four distinct phases Phases 1 and 2 represent immediate opportunities that drive the near-term adoption, starting with operational efficiencyPhases 3 and 4 include long-term structural changes that are roughly three years away from mainstream adoption9

Where? Everywhere Paolo Musio10

29/09/2016IoTThe 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)

IoTHVAC - heating, ventilating, and air conditioning10

paolo cesare musio (pcm) - Add CC coverageWhen? Depends on the sector Source: Cisco based on Beecham Research, Pike Research, iSupply Telematics report, US DoTPaolo Musio1129/09/2016Applications per Sector and sizeIoT readiness differs per industry and per country

IoTHealthcare 30+ sensors per person. Estimated number of hospital beds from University of Michigan data. Readiness of an industry or country can also, probably, be further accelerated or delayed according to government policies and incentives, by innovation in business models and technology, or by public pressure, arising from some or all of the challenges outlined in the previous section.Many nations, such as Brazil, India, Russia, and Spain, lack the supporting conditions to rapidly adopt IoT technologies.

Ref. [3]: Accenture terms these enabling factors that explain the extent to which countries have woven the IIoT into their economic fabric as a countrys national absorptive capacity (NAC). Ranking of major economies on this metric can help spur policymakers into action..11

Source: PWC (Dec 2014)Respondents: 1,500 Business and technology executivesTime: Dec 2014Geography covered: GlobalUse Case: Industrial InternetEnergy & MiningPower & UtilitiesAutomotiveIndustrialHospitalityHealthcareRetailEntertainmentTechnologyFinancial ServicesHave invested33%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.

IoTSources: http://www.pwc.com/us/en/increasing-it-effectiveness/assets/future-of-the-internet-of-things.pdf

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Are You Ready? Paolo Musio1329/09/2016

Source: Accenture (Jan 2015)Survey: AccentureRespondents: 1,400 global business leaders (736 CEOs)Geography Coverage: GlobalThere is gap between perceived IIoT readiness and reality

IoT

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Moving on29/09/2016Paolo Musio14Driving the IoT JourneyHow Can You Benefit from IoT?Understand how IoT can improve your business and whenWhat Will It Take to Succed?Assess top opportunities, identify gaps, build the Business PlanHow Will You Move Forward? Execute by developing on a comprehensive blueprint

IoTpaolo cesare musio (pcm) - rearranged from. c// consulting servicesUnderstanding Your PrioritiesDrivers29/09/2016Paolo Musio15

Source: World Economic Forum Industrial Internet of Things: Unleashing the Potential of Connected Products and Services - January, 2015How important are these business benefits in driving your company to adopt the IIoT?And MoreRemote Monitoring (more efficiency)Ubiquitous access to/from the internetFirst-mover market advantageNew Business Model, e.g. XaaS, LPWA Service Provider, Outcome EconomyR&D Value: IPR, expertise, standards/fora influencerData Value: Big Data Pyramids and AnalyticsFinancial Incentives, e.g. Green Technology Survey: WEFRespondents: 250 market leaders, members of IIC, and Industry 4.0 Geography Coverage: Global

IoTUnderstanding Your PrioritiesBarriers29/09/2016Paolo Musio16Source: World Economic Forum Industrial Internet of Things: Unleashing the Potential of Connected Products and Services - January, 2015What 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 InternetHuman Factors, e.g. unions reactionsImpacts on Product Life CycleEngineering, 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

IoT 16

Design: Addressing the Key ChallengesSecurityPaolo Musio17

Hackers Remotely Kill a Jeep on the HighwayWith Me in It29/09/2016Requirements:ConfidentialityIntegrityAvailability, e.g. radio jamming, tamperingPrivacySolutions:Encryption, e.g. TLS or IPSecMuthual AuthenticationEngineering, e.g. channel hopping, hardening AnonymisationSecurity Assessment as a Trade-off of Costs and Risks

IoTConfidentiality: Data should be confidential in the sense that only the right parties should be able to view it.Integrity: Data should not be tampered with or altered in any way.Availability: Data should be available at the right time for the right parties17

Design: Addressing the Key ChallengesInteroperability29/09/2016Paolo Musio18Avoid 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 hurdlesImprove the evolvability of the solutionReduce Costs by leveraging on Industry EcosystemProvide with a Future-proof investment

IoT

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Design: Addressing the Key ChallengeEngineering the Connected DevicePaolo Musio19

CPU

EngineeringE2E(Cyber)Security(Small) Size(Low) Cost(across)StandardsEvolvabilitySmall P (8-32bit)QoS(Latency,Jitter,BW)IP

Low Power (batteries) - Low Consumption LifeTime*VolumesLifeCycleLow power Lossy Network (LLN), e.g. 6LoWPAN or PLCRecommended approach: experimenting and prototypingSlow I/O(Kbps)EcosystemSmall RAM (KB)I&CMaintenanceAntitamper, AA(A), Encription, VPN... (*) impacting cost and performances ApplicationsIT integration, Cloud, Big Data*(*) volumes and I/O frequency can determine a data flood29/09/2016Examples

IoTEcosystem: Hw, Sw, developersIPv6 over Low power Wireless Personal Area Networks.Power Line Communication19

Design:E2E Architecture, Data Flow and SkillsPaolo Musio20IoT Device

Access PointINTERNETApplications

Data BaseBig DataAnalytics

NetworkIoT Engineer(Cloud) ArchitectData ScientistIPWire(less)

6LoWPAN802.15.4

Network (Cloud), (Big) Data, and Security are to be covered in the IIoT Strategy PlanSecurity Architect

29/09/2016

IoTControlSensorsTempMotionCameraLightAir Q.tyDataInformationKnowledgeWisdomSenses

IoT802.15.4 allows for Lowest device cost, Longer battery life, Mesh topologies, No New Cabling20

Q&AVictorious warriors win first and then go to warMove not unless you see an advantageIf it is to your advantage, make a forward moveSun Tzu, The Art of WarMetcalfes Law: the value of a network is proportional to the square of the number of compatible communicating devices connected to the system

IoT

IoTReferencesEU Commissions Action Plan on IoT, European Commission, June 2009"Industrial Internet of Things: Unleashing the Potential of Connected Products and Services, WEF, January 201510 Top Challenges Industrial IoT Must Overcome in 2015, EE Times, 12/24/2014Winning with the Industrial Internet of Things: How to accelerate the journey to productivity and growth, Accenture, 1/19/2015Reimagining Business With the Industrial Internet of Things, Accenture, January 2015Industrial IoT Market Worth $319.62 Billion by 2020, Markets&Markets, November 2014Industrial Automation and Wireless IoT, Reportlinker, May 201529/09/2016Paolo Musio22

IoT

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Acronyms29/09/2016Paolo Musio236LoWPANIPv6 over Low power Wireless Personal Area NetworkPLCProgrammable Logic ControllersE2EEnd-To-EndROLLRouting Over Low Power and Lossy NetworksI&CInstallation and CommisioningSCADASupervisory Control And Data Acquisition, includes PLC ICSIndustrial Control System XaaSAnything-as-a-Service IICIndustrial Internet ConsortiumWSNWireless Sensor NetworkIoTInternet of ThingsIIoTIndustrial IoTLLNLow power and Lossy NetworksLTN(ETSI) Low Throughput Network

IoT