The Next Industrial Transformation with the Internet of Everything
Wednesday, June 10 3:30-4:30
Pavan Singh, Bryan Tantzen, Barry Einsig
PSOIOT-2004
Every Business, Country, and City isBecoming a Company
DIGITAL
↔↔
By 2020,
75%of businesses will become fully digital
or preparing
#1reason
companiesdon’t succeed?
Fail to Innovateand Reinvent
Only
30%of these digitization
efforts will be successful
Digitization Trend Across Verticals
CREATE NEW BUSINESS SERVICES
IMPROVE PRODUCT QUALITY
INCREASE OPERATIONAL EFFICIENCY
Industrie 4.0 Grid Modernization Omni Channel
IoE as the foundation
Smart Cities Connected Trains Smart Space
Key Trends
Vertical digitization
enabled by IoE
LoB Outcomes –
OT &IT
Solution key to
simplification
PLC20 years old
HMI10 years old
<14% Manufacturers have tied
their machines to the
enterprise network
of US manufacturing
plants are more than
20 years old
75%Nearly
$2M in excess
inventory
in lost
revenue$4M
$3.3M($22K per hour, 5 hours per
incident, 30 incidents per
month)
Per
month
3rd Party
Vendors
IT+OT
ConvergenceSecure, Highly Resilient, Partners &
Professional Services, Cloud Services,
Collaboration, Intercloud
Headquarters
Boundaries Crumble
Top
Floor
Shop
Floor
From.. To..
IoE Digital Platform
Analyze VisualizeCollect
EdgeEdge Edge
Traffic
Mgt.
Public
Transport
Parking
Leach
Heads
Mgt.
Street
Lighting
Security
Cameras
Public Sector - Smart Connected CitiesSCC Wi-Fi SCC Parking
SCC Smart
TrafficSCC Lighting
70%30%population growth
2010-2050
downtown traffic caused
by parking search $82Bspend required
to modernize
cities per state
in value over
10 years with
smart buses
in value over
10 years with
smart parking
new jobs created
with startup
innovation$28M $53M 44,000
City of
Barcelona
Act
IoE Digital Platform
Analyze VisualizeCollect Act
EdgeEdge
Edge
Edge
Edge
Bus
Trackside
Sensors
Passengers
Train
Trackside
Signals
Ticketing
Traffic
Light
TransportationSeamless
ConnectivityTrain Control
Fleet
Management
Efficient
Maintenance
49%+28% increase in ridershipadditional vehicles
on road 30%longer between rolling
stock upgrades10
improved MTBF higher ridership lower CapEx10-12% 20% 21%
RetailRetail
IoE Digital Plaform
Analyze VisualizeCollect
Edge
Edge
Edge
Suppliers
Warehouse
Inventory
Cameras
Employees
Shopper
Paths
POS
Shelves
21%41%lost customers
due to stock-outs
shoppers
“showrooming” 33%of customers
need assistance
Omni-channel
Personalization
Employee
Productivity
Minimize
Out-of-stock
Shopper
Analytics
more store trafficincrease in
revenue/sq fthigher productivity17% 20% 15%
Act
IoT/IoE Economic Value by Industry
Source: Cisco Consulting Services,
Administration (6%)
35%
30%
25%
20%
15%
10%
5%
0%
0 20,00015,00010,0005,000
Degre
e o
f Im
pact
(Valu
e a
t S
take/Industr
y S
ize)
Retail trade (10%)
Information services (4%)
Manufacturing (Energy,
Oil & Gas) (34%)
Public Sector
(20%)Healthcare (5%)
Finance & insurance (4%)
Professional services
Education
Industry Size ($B)
Spheres sized by
amount of Economic Value
Adoption Driven by Insights
Source: IDC (2014); N = 198 for discrete manufacturing
Lower operational costs
Better customer service and support
Business operations optimization and control
Competitive differentiation
Better SCM and logistics
Product/service improvement
58%
48%
36%
28%
25%
23%
Single day of
stoppage costs
$5M
Single minute of
downtime costs
$22K
Solution:
Predictive Maintenance
Investment - $1-$2M per
mine
Solution:
Factory Automation
Investment: $300K-$500K
per factory
Solution:
Field Area Network
Investment: $7M per site
Annual theft
or loss costs
$1B
Mining Manufacturing Utilities
New Outcomes
New Outcomes – Manufacturing Industry
$25M
$50M
|
Supply Chain FactoryShippingand Warehouse
Retail StoreHeadquarters
= IT
New Value – Manufacturing Industry= IT
$25M
$50M
$100M
$150M
$200M
$250M
||
Supply Chain FactoryShippingand Warehouse
Retail StoreHeadquarters
OT & IT Collaboration Required
Corporate IT• Security
• Network TCO
• Access control
Facilities
Manager• Manage peak
energy usage
• Track machine
energy efficiency
Automation
Controls Director• Reduce downtime
• Device visibility
Plant Engineering
Manager
• Real-time diagnostics
• Wireless
Supply Chain FactoryShippingand Warehouse
Retail StoreHeadquarters
Accelerated OpportunityTotal Global Economic Value of IoT
Based on 61
Real-World
Use Cases
Value Sources
$6.4TPrivate Sector
$1.6TPublic Sector
$8.0T Trillion
Economic Value
AssetUtilization
$2.1T
Supply Chain/ Logistics
$1.9T
Innovation/Revenue
$2.1T
Customer/ Citizen
Experience
$0.7T
EmployeeProductivity
$1.2T
IT Service Requirements
Security Requirements
Data Center andStorage Requirements
Big Data Requirements
Connectivity
IoTModule
IoT Platform
Software
Hardware
Services
Connectivity
IoE Requires Multiple Technology Decisions
Cisco Solution Strategy
= OT
= IT 11% spend
89% spend
Corporate IT
FacilitiesPlant Manager
Operations Engg.
12 Verticals Across the stack Cloud Managed
LH
Peer Group
IOE Playbook
Experimental Demo
Cities
Oil & Gas
Utilities
Transportation
Manufacturing
New
Value
Creation
Scale
Vertical
Solution
LH
Validation
IOE End to End Solution Architecture
Connected
City
Connected
Public
Safety
ConnectedFactory
Connected
Utilities
Connected
Oil and Gas
Connected
Mining
ConnectedTransportation
ConnectedRetail
Connected
SP/M2M
Connected
Health
App Foundations for Digital Business
Sensors
Fog Compute
Platform
Cisco ONE
Platform
Network Automation(APIC SDN Controller)
Security Cloud Orchestration Policy/Intent (ACI)
Routing QoS MobilityAccess Ctrl &Remediation Virtualization
ElasticCompute InterCloud Users Devices Apps
Application
Enablement
Internet of Things Connected Mobile Experience Collaboration
IOx Device Directory Analytics Location Context Voice/Video IM/Presence Content
Data Center WAN Access
Smart
ParkingWireless tooling
Personnel
Monitoring
Distribution
Automation
Pipeline
monitoringSmart shovels
Trackside/roadway monitoring
Store
inventory
Tower
monitoring
Patient Media
Experience
Connected
Analytics
Connected
Processes
Connected
Experiences
App Foundations for Digital Business
Sensors
Fog Compute
Platform
Cisco ONE
Platform
Network Automation(APIC SDN Controller)
Security Cloud Orchestration Policy/Intent (ACI)
Routing QoS MobilityAccess Ctrl &Remediation Virtualization
ElasticCompute InterCloud Users Devices Apps
Application
Enablement
Internet of Things Connected Mobile Experience Collaboration
IOx Device Directory Analytics Location Context Voice/Video IM/Presence Content
Data Center WAN Access
Smart
ParkingWireless tooling
Personnel
Monitoring
Distribution
Automation
Pipeline
monitoringSmart shovels
Trackside/roadway monitoring
Store
inventory
Tower
monitoring
Patient Media
Experience
Connected
Analytics
Connected
Processes
Connected
Experiences
Partner Opportunities on the IoE Architecture
Connected
City
Connected
Public
Safety
ConnectedFactory
Connected
Utilities
Connected
Oil and Gas
Connected
Mining
ConnectedTransportation
ConnectedRetail
Connected
SP/M2M
Connected
Health
Location-based apps
Transformative applications
Custom security policies Managed ServicesZero-touch deployment
Scalable infrastructure deployment
and more…
Digital Manufacturing: A Holistic View
Digital
Manufacturing Intelligent Agile
Efficient
ITVendors
Design & Decision
Making
Machine
Builders
Retail Store
& Channel
Warehouse
& Shipping
Cloud/Data
Centers
Connected
Factory
• Single Pane of Glass
including Mobile
• Rapid customer feedback
• Production/supply
chain planning
• IOE enabled design
• Remote support
& maintenance
• Machine health
& quality
• New Service Models
• Rapid support
& maintenance
• Connected Products
• New buying experiences
• Predictive Delivery
• Warehouse automation
• Video based Quality
• Data ingest & storage
• Industrial &
Enterprise apps
• Video based Quality
• Automation networks
• Wireless tooling &
mobile control
• Asset & Things tracking
• Physical & cyber security
• Factory Big Data
Persistent
remote
access
Preventative Maintenance Vision: ZDT
Robots
Server
Source: IMTS
RC1 detects servo weld
gun encoder condition
change
RC1 Needs encoder
replacement
Change Encoder
IT-OT Convergence
Common Secure Network Infrastructure
Material & Transport
Industrial “Things”
PLCs & Scanners
Printers & Label Services
Shop Floor Personnel
Machines & Testers
Real-time data: alarms, events, states, energy, diagnostics, …
Transactional information: orders, supply network, product design …
Financials HR Logistics Quality WarehouseERP
OT
IT
Collaboratio
n in Factory
Apps
PLM/ERP/
MES/PLC
Integration
FOG: New
Compute
Models
Real-time
Supply
Chain
TraceabilityEnergy
Management
Predictive
Maintenanc
e
Open
Port
DMZ
Traversal
Remote
AccessProximalPhysical
Guest
Worker
Access
Converged
Commun
-ications
Remote
Monitoring/
Control
Wireless
Machines
Mobile
Control
Room
New
ServicesSpeed
Visual
FactoryManageabilit
y
VisibilityResiliencyFlexible
ProductionAutomation
Converged Network
Converged Plant Wireless
Converged Plant Information
Converged Plant Security
Cis
co IO
T
So
lutio
ns
OEE and Efficiency
Risk reduction
Cost Reduction
Cost Reduction
OEE – Fast Response
Uptime
Flexibility
- IP theft
- OT to IT damage
- Downtime
How to Drive IT/OT Convergence
Discovery Workshop with OT and IT
TCO and OEE Quantification
Pilot Design
End State Architecture Assessment
Business challenges
Best practice sharing
Joint IT/OT use case
brainstorming and
prioritization
Quantify top value
opportunities
Run pilots to prove
the value and
technology
Document future state
architecture (e.g., 3 to
5 years out), gaps,
and phased plan to
get there
Connected Transportation Sectors
Connected
Aviation
Connected
Maritime
Connected
Roadway
Connected
Vehicle
Connected
Freight
and
Logistics
Connected
Mass
Transit
Connected
Rail
Public
Cloud Provider
Private
Cloud Provider
Positive
Train Control
220 MHz Mast3G
Mast
ASR 901 Router
IE2000 IE2000
220 MHz Train Unit
Wayside Messaging
Server
Traffic
Management
IP Phone
Remote Interface
IE-3010Rugged Switch
819h Router
Modular Interlocking
IE2000 IE2000
Enabling Rail Network Operators Infrastructure
SCADA
PTC$%$Posi) ve$Train$Control
MPLS Layer
Optical Layer
Connected$Rail$Architecture
Modular Interlocking
Component Control
Point Machine
Axel Counter
Enabling Rail Network Operators Infrastructure
SCADA
PTC$%$Posi) ve$Train$Control
MPLS Layer
Optical Layer
Connected$Rail$Architecture
Modular Interlocking
Component Control
Point Machine
Axel Counter
Signal Point Machine
Axel Counter
Component Control
Trackside and Train Wi-Fi
819h Router 3G/LTE
Rugged Mobile Computer Connected
Field Staff
Train/Shore
Site Connectivity
Mobile Workforce
Level Crossing
IE2000
Video Gateway
819 Router
Analogue Camera
IP Camera
Door Access ControlIP Phone
Station
Video Surveillance
Digital Signage
Door Access Control
IP Video Phone
Wi-Fi Access Point
3750x ISR G2 Router
TelePresence
Retail CommsCustomer Information Screens
Help-point Phone
Retailers
Telephony Security Systems
Internet Access
Video Surveillance
Regional Control Centre
Door Access Control
IP Phone Console
TelePresenceDigital Signage
Video WallWi-Fi Access Point
Video Surveillance Video Wall
ISR G2
Router
VXC/Tablet(Virtual Desktop)
Unified ComputingSystem (UCS) Rack
Catalyst 6500 VSS Core
Switch
Rail Yard
819H Router
Wi-Fi Access Point
IC3010 PoC
Door Access Control
VideoSurveillance
Digital Signage
VXC/Tablet(Virtual Desktop)
PSTN
GSM-R
ASR 901 Router
Mast
Local Signal Box
Video Surveillance
Door Access Control
Digital Signage
VXC/Tablet(Virtual Desktop)
IP Video Phone
3750x
Wi-Fi Access Point
ASR 901 Router
HQ Campus
Building Management
System (BMS) HVAC/LightsISR G2
PSTN Gateway Voice/Video DSP
PCTablet(Virtual Desktop)
TelePresence
IP Video Phone Digital Signage
PCTablet(Virtual Desktop)
TelePresence
IP Video Phone Digital Signage
PCTablet(Virtual Desktop)
TelePresence
IP Video Phone Digital Signage
PCTablet(Virtual Desktop)
Network Building Mediator
IP Video Phone Digital Signage
PSTN
Video Surveillance
Wi-Fi Access Point
Door Access Control
Video Surveillance
Wi-Fi Access Point
Door Access Control
Video Surveillance
Wi-Fi Access Point
Door Access Control
Video Surveillance
Wi-Fi Access Point
Door Access Control
Catalyst 6500 VSS
Core Switch
Catalyst 3750X Switch Cluster
PoE Energywise
Catalyst 3750X Switch Cluster
PoE Energywise
Catalyst 3750X Switch Cluster
PoE Energywise
Catalyst 3750X Switch Cluster
PoE Energywise
Primary Data CenterPrimary Data CenterPrimary Data Center
Voice Services
Unified ComputingSystem (UCS) Blade
Unified ComputingSystem (UCS) Blade
Unified ComputingSystem (UCS) Blade
Nexus 2000 Switch Nexus 2000 Switch
Unified ComputingSystem (UCS) Blade
Unified ComputingSystem (UCS) Blade
ISR G2 PSTN Gateway
Voice/Video DSP
PSTN
Nexus 2000 Switch
SAN
MDS 9500 SAN Switch
MDS 9500 SAN Switch
StorageStorageVirtual Machines
Communication Manager (CUCM)S
Unity Connection (CUC)S
Jabber (Presence)S
Contact Center (UCCX)S
Meeting PlaceS
Attendant ConsoleS
Virtual Machines
Digital Media Manager (DMM)S
Show and Share ServerS
QUADS
Network ManagementS
TelePresence Ctrl
Server (TCS)S
TelePresence
Manager (TMS)S
Hypervisor
Nexus 1000v
Hypervisor
Nexus 1000v
Hypervisor
Desktop Virtualization Software
Virtual Machines
OS
OS
OS
OS
App
App
App
App
OS
OS
OS
OS
App
App
App
App
OS
OS
OS
OS
App
App
App
App
IPICS Server
Physical Access
Manager (PAM)
Video Surveillance Operations Manager
Video Surveillance Media Server (VSMS)
Enterprise Content
Delivery Sys (EDCS)
Mediator Manager
Mobility Services
Engine (MSE)
Media Exchange Engine (MXE)
Video CommsServer (VCS)
Tpresence Multipoint
Control Unit (MCU)
Ethernet
Fiber Channel over Ethernet (FCoE)
Fiber Channel Storage LinksCatalyst 6500 VSS
Services Layer Firewall Server Load Balancing (ACE)
Network Application Monitoring (NAM)
Nexus 5000 Switch Nexus 5000 Switch Nexus 5000 Switch
Catalyst 6500 VSS Services Layer Firewall Server Load Balancing (ACE) Network Application Monitoring (NAM)
Nexus 7000 Core/Aggregation Switch
Nexus 7000 Core/Aggregation Switch
Internet Edge
Ironport Email Security Anti-Spam, Anti-Virus Data
Loss Prevention (DLP)
Ironport Web Security Acceptable Use Policy (AUP)
Malware Prevention
ASR 1000 RouterWebEx Node
ASA 5500 Firewall
Intrusion Prevention (IPS)Virtual Private Network (VPN)
Video Communications Server (VCS) Expressway
Wireless LAN Controller (Guest Access)
Internet EdgePrimePrimePrime
Cisco Security Manager (CSM)
Energywise Orchestrator
Data CenterNetwork Manager
(DCNM)
Identity Services Engine (ISE)
Network Control Systems (NCS)
Network Analysis Module (NAM)
LAN Management System (LMS)
Collaboration Manager (CM)
Cloud Services
Internet
Teleworker/Mobile
Worker
IP Soft PhoneTelePresence MOVIVideo Conferencing
Virtual DesktopWAAS Mobile
Anyconnect VPN Client
ISR G2 RouterVPN
FirewallWireless
Mobile PhoneAnyconnectVPN Client
Trackside Electrical Substation:
SCADA
RTU
Video Surveillance
IP Phone
CGS-2520Rugged Switch
Guest Wi-Fi Access
Door Access Control
Wi-Fi Access Point
CGR-2010 Rugged Router with VPN/Firewall
Earth Protection
RTU RTU
IE2000 IE2000
CGS2520 CGS2520
ASR 901 Router
WAN Aggregation
Wireless LAN Controller
WAN Optimization (WAAS)
WAN Optimization (WAAS)
Enterprise Network
ASR 1000 Router
ASR 1000 Router
Connected Rail Reference Architecture
GPRS/3G/LTE
Optical
Layer
MPLS LayerOperational Network
PE Router
P Router
Fog/Sensors
Identity
Mobility
Collaboration
Data Center
WAN/Access
Cloud
Security
Business Domain Applications
Enabled
Foundational
Solution
Use Cases Supporting
Architectures
Connecte
d R
ail
• Mobile Routing for onboard
systems
• Phy Sec for onboard systems,
passenger safety & security
• Video Surveillance for Passenger
Safety
• Public Notification/Media Displays
• Interoperable Comms/PA
• Help Point Telephones
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Public 16
Acc
ess
Laye
r
DWDM Infrastructure
Standard
Network Plane
C
ore
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
1:05PM
Passenger Services Safety & Security Station Operations
PoE PoE
PoE
CIS SMS
Connected Train
Connected Station
Connected Trackside
Cisco IP CCTV Cameras Cisco Video Surveillance Operations and Storage System
and Cisco IP Video Surveillance Cameras
ASL PA / VA System Voice Alarm / LL Public Address System on separate
network, connected to Station LAN
Cisco Access Control Gateway Connected to existing door locks,
enables centralised access control
GAI-Tronics IP Help Points SIP Help Points
Safety & Security
• Positive Train Control (Connected
Train + Connected Trackside)
• Lineside telephony
• SCADA for electrification
• Backhaul of GSMr
• Optimized Rail Dispatch/Call Flow
Vertical Solution & Use-case Creation
Next over the top Passenger Wi Fi for their
1.3 Billion Trips per year
Reduce Capex by 21% over multiple
proprietary SCADA networks
Keeping trains safe and running
on time
Lower Total Cost of Ownership
Enabling new business models
through converged networks
Connected Trackside
Business Outcome Summary – Trackside
Investments Across the Portfolio
• Cloud
• Intelligent Network
• Data Center
• Fog Computing
• Net Connectivity
– Routing, Switching, Wireless
• Security
– Cyber and Physical
• Net Management
• App Enablement
– Fog Computing
• 2nd Year
• Chicago
• Oct 14-16
• 1500 Attendees
• IEEE
• IETF
• 3GPP
• IIC
• Wi-SUN
• London, UK
• Rio de Janeiro, BR
• Songdo, KR
• Toronto, CAN
• Barcelona, SP
• Tokyo, JP
• $250M so far
• Alchemist Acceleration
• Ayla Networks
• EVERYTHNG
• Rockwell Auto.
• Schneider Electric
• Itron
• AGT
• Emerson
• Honeywell
• Black and Veatch
Network
Platform
Technology
Portfolio
Investment
Fund
Innovation
Centers
IoT World
Forum
Global
Partner
Ecosystem
Standards
Development
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