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SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS From RFID to the Internet of Things - An SAP Research’s Perspective Dr. Hong-Hai Do SAP Research CEC Dresden 14.04.2008

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Page 1: An SAP Research’s Perspective - TU Dresdenst.inf.tu-dresden.de/files/teaching/ss08/ring/14042008...SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS From RFID to the Internet

SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS

From RFID to the Internet of Things -An SAP Research’s Perspective

Dr. Hong-Hai DoSAP Research CEC Dresden14.04.2008

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1. About SAP & SAP Research2. What is RFID?3. EPCglobal Architecture4. SAP RFID Solution (AII)5. Research Challenges6. Summary

Agenda

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Agenda

SAP AG, SAP Research,SAP Research CEC Dresden

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Summary of SAP today

SAP AG in 2006 revenues: €9.4 billionMore than 41,200 companies run SAP softwareProviding more than 25 industry solutions41,919 SAP employees (June, 2007)

12 million users in 120+ countries team with us to…Integrate their business processesExtend their competitive capabilitiesGet a better return on investment at a lower total cost of ownership

Unique partner ecosystemMore than 3,850 partnersOverall more than 180,000 SAP partner certificates

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SAP is Well Positioned for Growth

Trusted business partnerfor 39,000+ companies –the largest installed base in the enterprisesoftware sector

Deep vertical expertisewith strategic solutions for more than 25industries

Great innovation powerwith 11,900+ developers

Largest ecosystem in the industrysystem integrators, ISVs, OEMs, resellers,partners

One of the top brands globally#34 according to BusinessWeek

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SAP Research (www.sap.com/research)

Pretoria Brisbane

Palo Alto

Montréal

SophiaAntipolis

Walldorf Karlsruhe

Dresden

Belfast

St.Gallen

Darmstadt

Campus-based Engineering CentersSAP Labs-based Research Centers

Shanghai

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SAP Research – Core Activities

Basicresearch

Appliedresearch

Industrialresearch

Exertion of influence

Innovation

Invention

Discovery

Transfer intoSAP products

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SAP Research CEC Dresden

Campus-based Engineering Center DresdenApplication-driven Research for Innovation ExcellenceStrong SAP-internal and external partner networkCenter of gravity: SAP strategy and productsEstablished 01/2005

Research FocusFuture ManufacturingNext-Generation PLM

Research ProgramsData Management and AnalyticsSmart ItemsSoftware Engineering & Architecture

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Agenda

What is RFID?

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Auto-ID Technologies

Auto-IDSystems

(AIS)

Biometry

SmartCards

Barcodes

OpticalCharacter

Recognition(OCR)

RFID

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RFID Technology

Radio Frequency Identification (RFID): Tags emitting radio signals andreaders picking up the signal

RFID tags: Chip for holding data and an antenna for communicating the datathrough radio waves

Reach of RFID signals: Several centimeters to meters (depending on the kindof chip, on the frequency, etc.)

Passive tags and active tags (battery-powered)

Antenna

Chip

Microchip on a Dime

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Key Components of RFID

Antenna

Chip

Tag Printer & Encoder

Readers

Content

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Bar Code vs. RFID

Bar CodeOptical technologyRead onlyNot reusableUp to 249 charactersAttended readingLine-of-sight requiredProduct level identificationMore mature technology, widelyadopted

RFIDRadio frequency technologyRead only, and/or read and writeCan be reusedUp to 96 bit of dataUnattended reading, typicallyNo line-of-sight requiredIndividual object/item levelidentificationEmerging technology, pilot projects

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Agenda

EPCglobal Architecture

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RFID Usage

Tagged Items RFID Readers

Local EventCapture

IntegrationPlatform

ERP

SCM

CRM

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Supply Chain Network: Item Observations &Business Events

Manufacturer

Transport

Retailer

There were 4,000instances of Product Xshipped in a containerat 2:00am 17 August

2006

Product X leftProduction Plant #2 at

12:03pm 15 August2006

The pallet A with ProductX was delivered in orderfulfillment of Company Yat 2:20pm 30 August 2006

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Electronic Product Code (EPC)

EPC: Vision of an internet address for physical things, e.g. productsUnique identifier for every product instanceAddress length of 96 bits to uniquely label all product instances for the next 1,000 years2^96 = 79,228,162,514,264,337,593,543,950,336

EPCglobal (www.epcglobalinc.org)Not-for-profit organization developing commercial, world-wide RFID standardsJoint venture between EAN International and the Uniform Code Council (UCC)UCC standardized Universal Product Code (UPC) barcodes in USEAN standardized barcodes in Europe

36 bits24 bits28 bits8 bitsSerial NumberObject Class (Product)EPC Manager (Manufacturer)Version

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EPC Approach

Source: MIT AutoID Centre

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EPCglobal Architecture

Flow of Goods

Source: www.epcglobalinc.org

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Agenda

SAP RFID Solution:SAP AutoID Infrastructure (AII)

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SAP is a Pioneer in RFID and Auto-IDTechnologies

SAPcorporateresearchbeginswork withRFID

Foundingmember ofMIT Auto-IDcenter (nowcalledEPCglobal)First demo atSAPPHIRE inPhiladelphia

1998Research

Begins

1999Join MITAuto-ID

2001 AIIAII Dev.

Begins

2002/2003

Early pilotsand RFIDMiddleware

2008+RFID-EnabledBusinessProcesses

Delivered

SAP Auto-IDInfrastructuredevelopmentbegins

P&G and Metro pilots(shelf/future store)Fraport RFID AssetManagement pilot-enabled SAP MobileInfrastructureCreated SAP RFIDcustomer council andASUG executiveexchangeGlobal Auto-IDcustomer survey (>400respondents)Wall Street JournalAward for MetroSuperstore project

RFID solution packagefor Logistics andEnterprise AssetManagement deliveredFirst item level taggingeffort in the world atPurdue Pharma350+ customers signed forSAP RFID solutionworldwideRFID scenarios in over 15industries, in 15 countriesSeveral pilot projects onsensors and sensornetworksAnalysts/customers rankSAP at the top

AII

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The SAP Solution Landscape for RFID

Tags Readers Auto-IDInfrastructure

(AII)

ExchangeInfrastructure

EnterpriseApplications

Read/write/transmit data to

systems

Provide decisionsupport and

executetransactions

Route businessdata and eventsto applications

Store andtranslate rawEPC* data to

business data

Managemultiple

readers andstandardizes

data

Hold datatransmit datausing radio

waves

Function

Delivery

System Integration Services:Value generation with RFID

DeviceManagement/

Controller

Hardware Expertise Consulting

ERP

SCM

= SAP Offering = Partner Offering

Partner Partner Partner

*Electronic Product Code (EPC)

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Example Process: RFID-Enabled OutboundProcessing

CommissionTags

mySAP ERP

BuyerVendor

AII

Purchase Order

Advanced ShippingNotification (ASN)

Cust.Order

Goods Issue

Create HU

Scan IDs

Load GoodsPack

AssociateItems/Pallet/

Tags

Delivery

SAP EMOptional

CreateDelivery

Pack

HU Event Handler

Load

GICreateEvent HandlerforDelivery Update

with Pick

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Example Process: RFID-Enabled InboundProcessing

SAP EM

BuyerVendor

SAP R/3

Compare toASN EPCs

AII

Check andReceive Goods

ASN WM

PostGoodsReceipt

Unload

RegisterEPCs

Delivery

Proof of Delivery

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Analytics: Technical Reporting

Technical reportingRead rate qualityreportWrite rate qualityreport

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Analytics: Event Management

Handling Unit StatusPackedLoadedGood IssuedUnloadedGoods Received

Delivery StatusNot StartedPicking CompleteGoods IssuedGoods ReceivedProof of Delivery

Shipment StatusOn TimeDelayed

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Analytics: Business Reporting

Stock situationStock situation atdifferent locations

Goods movementMovements acrosslocationsMovements at Locationby action typeCycle time acrosslocations

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A Cross Industry SAP Auto ID Sampling

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Agenda

Research Challenges

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Challenge 1: Management of Large DataVolumes

Typical scenario: Goods shipping from Manufacturer to RetailerEach case delivered by Manufacturer is marked with an RFID-TagRetailer at each receiving location scans the cases and sends the IDs of the received IDsback to Manufacturer

Production volume of a large consumer goods manufacturer800 production lines15 cases per minute and per production line500 million cases per month 6 billion cases / year

Expected observations6 billion cases / year 6 billion tags / year20 observations / tag / year 120 billion observations / year1 KB (1000 bytes) / tag or observation record

~130 TB peryear !

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Challenge 2: High Performance for EventCorrelation

Shipping Msg (Manufacturer)

Receiving Msg (Customer)

Timestamp 20.02.2007, 08:00:00EPCList urn:epc:id:sgtin:0614141.107340.1

urn:epc:id:sgtin:0614141.107340.2urn:epc:id:sgtin:0614141.107340.3

Action OBSERVEBizstep urn:epcglobal:fmcg:bizstep:shippingBizLocation urn:epcglobal:fmcg:loc:0614141073467.1

Timestamp 22.02.2007, 11:22:01EPCList urn:epc:id:sgtin:0614141.107340.1

urn:epc:id:sgtin:0614141.107340.2urn:epc:id:sgtin:0614141.107340.3

Action OBSERVEBizstep urn:epcglobal:fmcg:bizstep:receivingBizLocation urn:epcglobal:fmcg:loc:0614141073468.1

Event correlation example:For each received item, calculate „in transit“time between shipping and receiving event

Processing stepsStore receiving eventsSearch for corresponding shipping eventsCompare time and store calculation results

Required performance50-100 Messages / s * 60 obsv / Message~6,000 obsv or ~6 MByte / s5 calculations for each new observationCorrelation rate: 30,000 calculations / sInsert rate: 6,000 observations / sUpdate rate: 30,000 calculation results / s

Two observations of the same object

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Challenge 3: Data Integration over DistributedNetwork

AIIData

AIIData

AIIData

AIIData

Company boundary

Intra-company flow

Inter-company flow

Auto-Id system/nodeAIIData

AIIData

AIIData

AIIData

AIIData

Where has Product X been?How many of its kind still insupply chain? And where?

AIIData

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Architecture Alternatives

Unstructured Peer-To-PeerNo controlled data placement or replicationQuerying via flooding/broadcasting

Structured Peer-To-PeerControlled placement, replication, and distribution of dataDetermination of nodes responsible for data (for example using hashing)

Metadata Integration ServerCentral node maintains indices of objects (products, times, locations/nodes,business processes)Localization of data/objects at server using indices

Data Integration ServerCentral node replicates all data generated in the networkQuerying at server

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Beyond RFID: Business Logic on the Item

European research projectCOBIS (www.cobis-online.de)

Collaborative Business ItemsUse of wireless sensor networks toembed business logic in physicalentitiesExtend business processes to the“Point of Action” by putting businesslogic on the items

Service InjectorSMART ITEMS

MODEL-DRIVEN APPLICATIONDEVELOPMENT

Application Model

MiddlewareService

Repository

System Model

System Monitor

DevelopmentTools

Service Mapper

DeploymentDescription

RFID EmbeddedPlatform

SensorNetwork

EmergingTechnology

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BP: Hazardous Goods

1 Storage limit exceeded?2 Confirmation of safe storage environment3 Incompatible Goods

Source: Ken Douglas, BP

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BP: Workplace Safety

Attempt to enter a confinedspace/vessel…..

Is breathing apparatus detected?Is there a “permit to work”?Is there more than one personpresent?Do those present have valid trainingcertificates??

Integration with local handheldsor backend systems but logicand “intelligence” is local

Source: Ken Douglas, BP

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Beyond SCM: Product Lifecycle Management

EOLMOLProductionDesignDesign

Resources ResourcesResources ResourcesResourcesResources ResourcesResources Resources

Process ProcessProcess ProcessProcess ProcessProcess Process

Product ProductProduct ProductProductProduct ProductProduct Product

Disposal, Recycling

Re-useRe-use

Re-mfgRe-mfg

ServiceService

Information flowInformation flow

European research project PROMISE (www.promise.no)Product Lifecycle Management and Information Tracking using Smart Embedded SystemsTo close the product lifecycle information loopsTo utilize Smart Items to capture product data over all product lifecycle phase

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PROMISE System Overview

Applications

PEID RFID

Middleware Read/ Write

DecommissioningBusinessProcesses

Products

EmbeddedSystems

Design/ProductionDesign for X PreventivePredictive

MaintenanceTracking &Tracing…Adaptive

Production …EffectiveRecycling

SemanticenrichmentDispatching

NotificationsPEID

Management

Product Data andKnowledge Management

DecisionSupport

Sensors

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Fiat/Iveco: End-of-Life of Vehicles

ChallengeMonitoring of deregistration/dismantling ofvehicles throughout EuropeOptimal reuse, recycling or recovery of materialand componentsEU directive: By 2006 the ratio of reused,recycled or recovered materials must reach85% of the total vehicle weight and 95% by2015

ImplementationUse of Smart Items (sensors, RFID) formonitoring and storing component conditions

Mileages, engine rev, clutch pressure, #coldstarts, etc.

Decision support to determine optimal EOLtreatment considering:

economical target, market demandcomponents conditions

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Caterpillar: Middle-of-Life of Heavy LoadVehicles

ChallengePredictive maintenance of machines andvehiclesStructural health monitoring to prevent fatiguedamage in main structures and critical areasDetermination of predictive maintenance plan toavoid failures and expensive repair operationswith machine downtime

ImplementationAttaching of CrackFirst sensors at weak areas ofthe structure to monitor fatigue statusWireless transmission of sensor data frommachines to information system of dealersDecision support performed on regular basis oncaptured data to predict maintenance operations

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Bombardier: Beginning-of-Life of Locomotives

ChallengeTurning experience in service (field data) toknowledge for designers to develop improvedproductsDesign for X-Processes

Design for Reliability, Availability &Maintainability / Life Cycle Costs(DfRAM/LCC)Design for Product Safety (DfS)Design for Environment (DfE)

ImplementationUse of Smart Items (sensors) to captureusage data of componentsSeamless integration of usage data withprognostics and design applicationsDerivation of design enhancements forperformance, reliability, and product security

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Summary

Technologies for the Internet of ThingsRFID: Auto-ID technology enabling tracking and tracing of physical objects (products, items)Beyond RFID and identification: sensors, sensor networks, embedded systems

EPCglobal: Architecture and protocol standards for RFID

SAP: Pioneer in RFID with solutions ready to support SCM businessprocesses

SAP Research: Pre-competitive research projects addressingchallenges for the Internet of Things

TechnologiesDevice integration: RFID, sensors, sensor networks, embedded systemsArchitectures for scalable data management and integration, event correlation

Support for new business processes beyond SCMProduct Lifecycle ManagementPredictive Maintenance, etc.

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© SAP 2007 / Page 43

Thank you!

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© SAP 2007 / Page 44

Secondary colors100%

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Tertiary color

Definition and halftone values of colors

RGB 68/105/125

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RGB 4/53/123 RGB 240/171/0 RGB 102/102/102RGB 153/153/153RGB 204/204/204

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85%

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© SAP 2007 / Page 45

Grid

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© SAP 2007 / Page 46

Copyright 2007 SAP AGAll rights reserved

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