industrial internet of things · industrial internet of things greg gorbach vice president arc...

Industrial Internet of Things

Greg Gorbach

Vice President

ARC Advisory Group

ggorbach@arcweb.com

- The New Frontier -ARC Industry Forum

February 2015

3© ARC Advisory Group

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

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Think ‘Different’

Then:

Now:

Integration

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An IIoT ‘Thing’ is …

•An industrial asset•A platform for new apps, services•Remotely manageable•Part of an ecosystem•Secure

With local capabilities:•Computing: Processor & Storage•Communication: Wi-Fi, Ethernet, Bluetooth, etc.

•Monitor Sensors, Drive Actuators•Run analytics, agents, apps, etc.•Stream data

Example: Intel Galileo board with Intel Quark processor

Compressor

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Key IIoT and I4.0 Industry GroupsRepresentatives are here at our Forum

Dr. Reinhold AchatzThyssenkrupp

Dr. Richard SoleyOMG

Jim WetzelGeneral Mills

Denise SwinkSMLC

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IIoT DriversReduced Downtime and Faster Service are Top Drivers Now

Source: ARC Industrial Internet of Things Survey

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IIoT Impacts …

• Remote Monitoring & Diagnostics

• Access to Experts

• New Service Models

Uptime

• Process Optimization

• Flexible Control of Assets

Operating Performance

• Collaboration

• Location Awareness

• Training

Worker Needs

• Accident response

• Incident reporting

• Safety

Safety & Risk Mgmt

• Materials Tracking and Management

• Spare Parts Marshalling

Logistics

ALM

MOM

SCM

Automation

Enterprise

Design

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Industrial IoT Technologies and Architectures

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IIoT Technologies

- Cloud Computing

- Embeddable Computing & Communications

- Analytics & Visualization

- Mobile Devices

- Industrial Apps

- Network Technologies

- Modeling & Simulation

- Smart Sensors

- Software/Workflow/BPM

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Industrial Internet of Things Architecture

Technology Enables Business Process Improvements

Actio

nsD

ata

Smart Things

Gateway, Network

Cloud

SW & Analytics

Users, Systems

Services, Solutions

Decisions

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IIoT Maturity ModelIIoT Redefines Assets

Level of Maturity

Ad

ded

Valu

e

Conventional

Instrumented

Software Defined

Smart

Autonomous

IIoT Enabled

• Connectable or connected

• Provides data externally

+Some local intelligence

+Software tunable asset

+Enhanced data feeds

+Enhanced intelligence

+Active condition monitoring

+Self optimization

+Interact with ecosystem

+Additional Sensors

+Real-time analytics

+Onboard execution software

+New business models

+Performance guarantees

Maturity Model – IIoT Asset Capabilities

IIoT Potentially Redefines Asset Performance Expectations

• No intelligence or connectivity

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Smart Products

Connected Products

Smart Metrology

3rd Party Services

Plant Systems and Assets

Enterprise Systems

Connected Enterprise

Self-Planning Systems

Flexible Worker Schedules

Access Control Services

Location/NavServices

Video Presence (Expert Help)

Augmented Reality

Smart Tools

Connected Worker

Collaboration

Smart Components

Smart Logistics SmartCarriers

RFID

Smart Warehouse

Connected Supply Chain

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- Remote services; Product ‘as-a-Service’- Smart sensors, assets, network connectivity, cloud

… All along with traditional automation and enterprise systems

IIoT Smart Module

RemoteMonitoring &

Services

Connectivity Platform

Advanced Analytics

Apps

Smart Machines- Connected- Software-defined- Agents, Apps- Sensors e.g. vibration,

ultrasound, infrared etc.

Connected Machine

Smart Containers

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ARC’s IIoT Model for Connected Operations

ARC’s Industrial Internet of Things Model for Connected Operations

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Industrial IoT Enables New Services and Business Models

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Products

Services

Product-Service Hybrid

Performance. Results. Outcomes.New customer expectations drive new economic models

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

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Supplier

Utilities

Industrial/Retail Customer

Distribution

Corp HQ

CustomerEng Service Provider

OEM

Other Plant

Contract MFR

Rethink Industry ModelsValue Chain Opportunities for Product-Service Hybrids

Plant Ops

IT Sales/Mktg

Supply Chain

HR

Procurement R&D

Finance

Service

Sustainability

Intelligent, connected products set the stage for new services and new business models

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IIoT Maturity ModelIIoT Enables New Services

Level of Maturity

Ad

ded

Valu

e

Conventional Maintenance

Condition Monitoring

Remote Monitoring & Diagnostics

Remote Services

Asset as a Service

IIoT Enabled

• Add sensors• Smart field

devices• Trend

analytics• Handhelds

+Enhanced Connectivity

+Advanced analytics

+Access to Experts

+Help Desk Integration

+Platform+Service

software+SLA+Expanded

Services

+Performance guarantee

+Execution software

+Enhanced SLA

+Spares Mgmt+SC Software+Subscription

Model

Maturity Model – IIoT Services Enablement

IIoT Enables New Business Models and Potentially Transforms the Supplier/Customer Relationship

• Time-based• Break/fix

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Industrial IoT Use Cases

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IIoT Example: Cement Plant - AnalyticsUsing connectivity, data analysis to improve asset performance

Improve the Processes

Reliability Engineer

Cement Plant

Workflow

Technician

Maintain the Assets

Data from Equipment

Cloud

Analytics

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IIoT Example: Oil Platform – Reduce NPTAvoid expensive unplanned downtime

Oil Platform

Workflow

Ship Seal to Rig

Technician

Change Seal During Next Maintenance Cycle; Save $7.5M

Data from Equipment(including pressure)

Cloud

Predict Seal Failure on Water Injection Pump

AnalyticsService Staff

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IIoT Example: Oil Platform - CollaborationAccess to global experts, share real-time information

Push To Talk; Radio-to-Telephone Patching, etc.

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

Oil Platform

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IIoT Example: Mining – Tire Monitoring Avoid risk, downtime, and expense

Tire OEM

Haul Vehicle

Technician

Change Tire At Safe Location; Avoid Risk,

Downtime, and Expense; Redeploy

Other Assets

Mine Operations

Dealer’s Tire Service Truck

Data from Tires and

Equipment

Cloud

Analytics

Predict Tire Failure

Workflow

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IIoT Example: Compressed Air StationOEM helps avoid unplanned downtime in in-service products

Compressed Air

Workflow

Technician

Temperature, pressure level, delivered air

volume, machine status, etc.

Cloud

Analytics

Stream data to OEM servers

Visualize Asset Performance; Predict Machine Health Issues

OEM Staff

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IIoT Maturity ModelAcquiring and Implementing IIoT

Level of Maturity

Ad

ded

Valu

e

Parts and Pieces

Connected Devices

Application

Whole Solution

Outsource/As a Service

IIoT Enabled

• Sensors• Modules• Gateways• etc.

+Analytics+Software+Integration

+Connected Devices

+Applications+Network+Platform+Security+Install+Startup+Monitoring+Business

Optimization

+Subscription Model

+Performance guarantee

+Execution software

+Maintenance Mgmt s/w

Maturity Model – IIoT Solution Completeness

IIoT Solution Offerings are Evolving from Hobby Kit to Whole Solution

• Custom• DIY

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Summary

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IIoT Has The Potential to Deliver

Innovative Products

Innovative Services

Innovative Business Models

Energy EfficientProcesses

ImprovedProductivity

IncreasedVisibility

• Increase Revenue• Reduce Costs• Improve Operations• Save Time• Delight Customers

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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

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You Don’t Know How to IIoTExperiment. Learn. Seek Out New Partners. Now!

Embeddable HW/SW

Cloud

Analytics

Networking

Cybersecurity

Partners

• Technology• Solution• Implementation• Service Provider• etc

Get ready

• Try out technologies

• Hire experts

• Develop partners

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Industrial IoT and Industrie 4.0 ViewpointsCheck out our Blog and Newsletter

Website: bit.ly/iiotblog

Subscribe to Newsletter:bit.ly/iiotnews

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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.’

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Thank YouFor more information, contact the author at

ggorbach@arcweb.com or visit our web pages atwww.arcweb.com