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
1. About SAP & SAP Research2. What is RFID?3. EPCglobal Architecture4. SAP RFID Solution (AII)5. Research Challenges6. Summary
Agenda
Agenda
SAP AG, SAP Research,SAP Research CEC Dresden
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
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
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
SAP Research – Core Activities
Basicresearch
Appliedresearch
Industrialresearch
Exertion of influence
Innovation
Invention
Discovery
Transfer intoSAP products
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
Agenda
What is RFID?
Auto-ID Technologies
Auto-IDSystems
(AIS)
Biometry
SmartCards
Barcodes
OpticalCharacter
Recognition(OCR)
RFID
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
Key Components of RFID
Antenna
Chip
Tag Printer & Encoder
Readers
Content
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
Agenda
EPCglobal Architecture
RFID Usage
Tagged Items RFID Readers
Local EventCapture
IntegrationPlatform
ERP
SCM
CRM
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
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
EPC Approach
Source: MIT AutoID Centre
Agenda
SAP RFID Solution:SAP AutoID Infrastructure (AII)
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
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)
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
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
Analytics: Technical Reporting
Technical reportingRead rate qualityreportWrite rate qualityreport
Analytics: Event Management
Handling Unit StatusPackedLoadedGood IssuedUnloadedGoods Received
Delivery StatusNot StartedPicking CompleteGoods IssuedGoods ReceivedProof of Delivery
Shipment StatusOn TimeDelayed
Analytics: Business Reporting
Stock situationStock situation atdifferent locations
Goods movementMovements acrosslocationsMovements at Locationby action typeCycle time acrosslocations
A Cross Industry SAP Auto ID Sampling
Agenda
Research Challenges
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 !
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
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
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
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
BP: Hazardous Goods
1 Storage limit exceeded?2 Confirmation of safe storage environment3 Incompatible Goods
Source: Ken Douglas, BP
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
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
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
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
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
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
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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