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Internet of Things Industry 40 and Digitalization
at a Crossroads
Crossroads picture source httpswwwdigitaldealercomat-the-crossroads-of-culture-and-service-efficiency
Alain LouchezManaging Director
Center for the Development and Application of Internet of Things Technologies (CDAIT)
Atlanta GA USAwwwcdaitgatechedu
Event jointly organized by Konrad Adenauer Foundation Hamburg
and US Consulate General Hamburg October 18 2018
Amerikazentrum Am Sandtorkai 48 20457 Hamburg Germany
In January 2018 the World Economic Forum (in collaboration with McKinsey) published their findings on ldquoScaling Fourth Industrial Revolution Technologies in Productionrdquo and underlined that ldquomore than 70 of industrial companies are still either at the start of the journey or unable to go beyond the pilot stage (the so-called ldquopilot purgatoryrdquo)rdquo
Source httpwww3weforumorgdocsWEF_Technology_and_Innovation_The_Next_Economic_Growth_Enginepdf
AGENDA
bull Part One What is the Internet of ThingsDigitalizationIndustry 40
bull Part Two The Building Blocks
bull Part Three The Rise of the Digital Company
bull Part Four Who Cares
bull Part Five What is standing in the way
bull Part Six Where do we go from here
PART ONE
What is the Internet of Things Digitalization and
Industry 40
Reneacute Magritte (1898-1960) The Treachery of Images
Die Wahrsagerin
Hans von Hayek (1869 Vienna ndash 1940 Munich)
We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to
unfold
The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost
anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely
convergence of scientific technological and societal advances and trends Through embedded intelligence it
will transform the dimensions of the economy and society on a scale not experienced before
Nothing will be forever fixed inert will become active delayed instantaneous offline online and static
dynamic
The ldquoInternet of Thingsrdquo per se Does Not Exist
Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
In January 2018 the World Economic Forum (in collaboration with McKinsey) published their findings on ldquoScaling Fourth Industrial Revolution Technologies in Productionrdquo and underlined that ldquomore than 70 of industrial companies are still either at the start of the journey or unable to go beyond the pilot stage (the so-called ldquopilot purgatoryrdquo)rdquo
Source httpwww3weforumorgdocsWEF_Technology_and_Innovation_The_Next_Economic_Growth_Enginepdf
AGENDA
bull Part One What is the Internet of ThingsDigitalizationIndustry 40
bull Part Two The Building Blocks
bull Part Three The Rise of the Digital Company
bull Part Four Who Cares
bull Part Five What is standing in the way
bull Part Six Where do we go from here
PART ONE
What is the Internet of Things Digitalization and
Industry 40
Reneacute Magritte (1898-1960) The Treachery of Images
Die Wahrsagerin
Hans von Hayek (1869 Vienna ndash 1940 Munich)
We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to
unfold
The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost
anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely
convergence of scientific technological and societal advances and trends Through embedded intelligence it
will transform the dimensions of the economy and society on a scale not experienced before
Nothing will be forever fixed inert will become active delayed instantaneous offline online and static
dynamic
The ldquoInternet of Thingsrdquo per se Does Not Exist
Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
AGENDA
bull Part One What is the Internet of ThingsDigitalizationIndustry 40
bull Part Two The Building Blocks
bull Part Three The Rise of the Digital Company
bull Part Four Who Cares
bull Part Five What is standing in the way
bull Part Six Where do we go from here
PART ONE
What is the Internet of Things Digitalization and
Industry 40
Reneacute Magritte (1898-1960) The Treachery of Images
Die Wahrsagerin
Hans von Hayek (1869 Vienna ndash 1940 Munich)
We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to
unfold
The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost
anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely
convergence of scientific technological and societal advances and trends Through embedded intelligence it
will transform the dimensions of the economy and society on a scale not experienced before
Nothing will be forever fixed inert will become active delayed instantaneous offline online and static
dynamic
The ldquoInternet of Thingsrdquo per se Does Not Exist
Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
PART ONE
What is the Internet of Things Digitalization and
Industry 40
Reneacute Magritte (1898-1960) The Treachery of Images
Die Wahrsagerin
Hans von Hayek (1869 Vienna ndash 1940 Munich)
We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to
unfold
The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost
anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely
convergence of scientific technological and societal advances and trends Through embedded intelligence it
will transform the dimensions of the economy and society on a scale not experienced before
Nothing will be forever fixed inert will become active delayed instantaneous offline online and static
dynamic
The ldquoInternet of Thingsrdquo per se Does Not Exist
Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Die Wahrsagerin
Hans von Hayek (1869 Vienna ndash 1940 Munich)
We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to
unfold
The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost
anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely
convergence of scientific technological and societal advances and trends Through embedded intelligence it
will transform the dimensions of the economy and society on a scale not experienced before
Nothing will be forever fixed inert will become active delayed instantaneous offline online and static
dynamic
The ldquoInternet of Thingsrdquo per se Does Not Exist
Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost
anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely
convergence of scientific technological and societal advances and trends Through embedded intelligence it
will transform the dimensions of the economy and society on a scale not experienced before
Nothing will be forever fixed inert will become active delayed instantaneous offline online and static
dynamic
The ldquoInternet of Thingsrdquo per se Does Not Exist
Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
7
The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why
ldquopulsatingrdquo Because things will continuously be sending and receiving data
ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo
Nikola Tesla ()
() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
1 Machine is COMPLEMENTARY
2 Machine is SUBSTITUTE
1 STEAM
2 ELECTRICITY
3 COMPUTER
4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)
1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)
2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)
3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA
The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr
Two Machine Ages Four Industrial Revolutions
Three Stages of Internet of Things
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Digitization ndash Digitalization ndash Digital Transformation
Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose
A Framework for Understanding Digitalization
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ldquorefers to the intelligent networking
of machines and processes for industry
with the help of information and communication
technologyrdquo ()
ldquoare physical biological and
engineered systems whose operations are
integrated monitored andor
controlled by a computational corerdquo
()
ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo
Successful Digital Enterprise = A DYNAMIC LOOP
() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html
() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf
Digitalization
ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
A Cyber-Physical System (CPS) is akin to a guiding conductor
(ldquocomputational algorithmrdquo) interacting with
an orchestra andor choir (ldquophysical componentsrdquo) for
the optimal (ldquotime-sensitiverdquo) generation of a
harmonious sound (ldquoseamless integrationrdquo)
The Internet of Things enables ldquoCyber-Physical Systemsrdquo
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Unified Digital Platform Stack (Source Stanley Black amp Decker [])
Assets Applications
Connect
Unified View
Unified Operate
Unified
Connect
Unified Flow
Unified Predict
Unified IoT
Streaming amp Predictive Analytics
Machine Learning
Reporting E2E Monitoring Availability and Performance Optimization
Device Management
Asset Management
Application Enablement
Data storage amp Transformation
User and API Security
Unified Monetize
Subscription amp Usage Billing
Invoicing amp GL ReportingDevice
Connectivity
SIM
Management
Mobile Plan
Management
Operations amp Security Platform Infrastructure Management
Provisioning Bootstrap Data Integration Process Integration
Unified
Edge
Edge
Management
OTA FOTA
Device
Monitoring
Device
Diagnostics
Configuration
Management
[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
PART TWO
The building blocks
Wassily Kandinsky (1866-1944) Yellow Red Blue
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Application
DNA
DEVICE- NETWORK- APPLICATION
Interface
Internet of Things = Complex Value Chain =IMAGE
Extraction
Medium Glue
Physical World
Computing World
Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Theoretical Foundations of Cyber Manufacturing and IIoT
Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Operational Efficiencies
Regulatory Compliance
The two sides of the Internet of Things for Businesses
DOWN
UP
Costs Revenue
Profitability
ProductivityNew
ProductsServices
Product as a Service (outcome-based)
Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)
UP
See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ldquoThe organization must learn to think of itself not as producing goods or services but
as buying customers as doing the things that will make people want to do business
with itrdquo
Theodore Levitt Marketing Myopia HBR (July-August 1960)
ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business
(personal) effectresult ie creating value through use
ldquoProduct as a Servicerdquo
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()
() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services
SEI = Subscription Economy Index
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
PART THREE
The rise of the digital company
ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)
Claude Monet (1840 -1926) Impression Sunrise
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Transforming Perceived Headwinds into Actual Tailwinds
Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
3 FORCES
Integration
Outcome
Sustainability
Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt
Digitalization
bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders
3 END GOALS
Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Circular business model
Recycle reuse remanufacturing ie regenerative practices and
processes to minimize waste and foster sustainability
Internet of Things
Interconnection of intelligent things to create and maximize value throughout the
whole value-chain and product lifecycle
Re-XR
O Outcome
I IntegrationCustomer end-result
Product is no longer a physical output but an
ongoing relationship based on customer needs and
wants
Successful Digitalization Must Focus on ROI
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
PART FOUR
Who cares
Statue of Themis Chuo University Japan
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Developing Innovation and
Growing the Internet of
Things (DIGIT) Act
bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]
bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]
Smart Manufacturing Leadership Act
bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]
bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]
Internet of Things (IoT)
Cybersecurity Improvement Act
of 2017
bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs
bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board
Smart Cities and Communities Act
of 2017
bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017
bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017
The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018
Cyber Shield Act of 2017
bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee
Securing the Internet of
Things Act of 2017
bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017
IoTConsumer TIPS Act of
2017
The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28
2018
bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017
Smart Building
Acceleration Act of 2018
bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy
Promoting Good Cyber Hygiene
Act of 2017
bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]
bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]
Secure and Protect
Americans Data Act (SPADA)
bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017
bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo
Balancing the Rights of Web Surfers
Equally and Responsibly
(BROWSER)Act of 2017
bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017
bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo
See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427
The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo
(17-0039) may appear on the ballot in California as an initiated state statute on
November 6 2018
Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline
regulation of small wireless cell facilities
STATE
Smart IoTAct
bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017
ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)
ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)
ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)
Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP
China
Italy
Japan
Korea
UK
USA
Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)
Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)
Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016
Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018
ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018
India
Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40
Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2
France
CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)
ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018
Germany
Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo
Recent Country-focused IoTIndustry 40 Initiatives
July 2018
ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
European Union Coordinates National Digital Initiatives ()
List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()
bullAustria Industrie 40 Oesterreich
bullBelgium Made different ndash Factories of the future
bullCzech Republic Průmysl 40
bullGermany Industrie 40
bullDenmark Manufacturing Academy of Denmark (MADE)
bullSpain Industria Conectada 40
bullFrance Alliance pour lIndustrie du Futur
bullHungary IPAR40 National Technology Initiative
bullItaly Industria 40
bullLithuania Pramonė 40
bullLuxembourg Digital For Industry Luxembourg
bullNetherlands Smart Industry
bullPoland Initiative and Platform Industry 40
bullPortugal Induacutestria 40
bullSweden Smart Industry
() of member states
EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm
ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo
Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives
() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
PART FIVE
What is standing in the way
Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer
Analytics
Standards
Trustworthiness Energy Source
Scaling
Interoperability
Data Storage
Miniaturization
Business Model
Expectations
Antenna Technologies
LatencyEthics
Education and Training
Regulation
Platform Management
ArchitectureSocial Acceptability
IT and OT Alignment
Cost Effectiveness
International Cooperation ETC
Policies
Spectrum Availability
Computing Paradigm
Fragmentation
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Critical IoT Tugs of War
PRIVACY
CONVENIENCE SECURITY amp PRIVACY
SECURITY
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
IoTIndustry 40 Existential Challenge
TIMELESS RELEVANCE
LEGACY (dealing with the
past)
Technology Human Inertia
OBSOLESCENCE (dealing with the
future)
Technology Human
Readiness
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
It is always about more than technology
Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml
Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa
32 in the Americas 41 in Asia Pacific
IoT initiatives are mostly disconnected from end users
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ENABLING ENTERPRISE CRUCIBLE
The Human Factor
ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail
due to a lack of focus on lsquosoftrsquo elements such as culture leadership
and talentrdquo
Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb
Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster
ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology
but human factors like culture organization and leadership are criticalrdquo
Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
PART SIX
Where do we go from here
Jan Vermeer (1632 -1675) The Astronomer
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ldquoThe most important rule [of forecasting] I actually learned
as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems
terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()
() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation
bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology
bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors
The Donrsquots
() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail
()
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018
Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf
bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo
bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo
Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities
Enabled Benefits
Time (cost)
A
B
Results-Driven Incremental Implementation
Traditional Implementation
The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism
Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements
We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo
Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020
New York City streets in 1890 Besides telegraph lines multiple
electric lines were required for each class of device requiring different
voltages
Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf
2018 World Economic Forum report analyzes 100 countries and economies to see how they might
benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new
manufacturing technologies
Readiness for Industry 40
The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)
Germany near the top 3 in structure of production 6 in drivers of production
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der
feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []
[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle
Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo
Conclusion
Digitalization is a Very Long and Dynamic Journey
It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances
[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta
THANK YOU
alainlouchezgtrigatechedu
The views expressed in this presentation are solely the
authorrsquos own and do not necessarily represent those of
the Georgia Institute of Technology (ldquoGeorgia Techrdquo)
the Georgia Tech CDAIT members the University System
of Georgia or the State of Georgia
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