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ee392b Industrial IoT: Applications Overview April 2, 2019 Dimitry Gorinevsky www.stanford.edu/~gorin IIoT Seminar EE392b Spring 2019 EE392b ‐ Spring 2019 Stanford University Industrial Internet of Things: Applications © Dimitry Gorinevsky 1

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Page 1: ee392b Industrial IoT: Applications Overviewweb.stanford.edu/class/ee392b/lecture/apr2/ee392b_2019...IIoT in 2019 •Industrial Internet and Digitization by GE –Supernova •New

ee392bIndustrial IoT: Applications

Overview

April 2, 2019 

Dimitry Gorinevskywww.stanford.edu/~gorin

IIoT Seminar EE392b ● Spring 2019

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 1

Page 2: ee392b Industrial IoT: Applications Overviewweb.stanford.edu/class/ee392b/lecture/apr2/ee392b_2019...IIoT in 2019 •Industrial Internet and Digitization by GE –Supernova •New

Outline

• Why the IIoT?• Class subject• IIoT computing  • IIoT applications  • Syllabus 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 2

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WHAT IS INDUSTRIAL IOT?IIoT Class Overview

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 3

Page 4: ee392b Industrial IoT: Applications Overviewweb.stanford.edu/class/ee392b/lecture/apr2/ee392b_2019...IIoT in 2019 •Industrial Internet and Digitization by GE –Supernova •New

IoP and IoT

Internet Revolution• 10‐15% of economy• Internet of People (IoP)

New Digital Revolution• 80% of the economy  • Internet of Things (IoT)• Industrial IoT (IIoT) 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 4

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IIoT and IoT

IIoT  IoT

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 5

IoTIIoT

ConnectedHigh‐costIndustrialAssets

ConnectedLow‐costEnd‐point Devices

IoTIIoT

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NEW DIGITAL REVOLUTIONIIoT Class Overview

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 6

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New Digital Revolution

• Analyses of the IIoT economic impact  

August 2018 © Dimitry Gorinevsky www.stanford.edu/~gorin 7

Value Date CommentGE $32.3 Trillion 2012 Early estimateAccenture $14 Trillion  2015 ConsultingMcKinsey $11 Trillion  2015 Consulting 

Current Forecasts (2018‐2019) • $1.2T IoT tech spend; 13.2% per year growth• $0.5T IoT market; 28.5% per year growth

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Waves of Change1. The First Industrial Revolution

– Mechanized production; water and steam power 

2. The Second Industrial Revolution

– Mass production; power integration

3. Internet Revolution– Automation; electronics and 

information technology4. IIoT, the 4th Industrial 

Revolution– Digital integration 

August 2018 © Dimitry Gorinevsky www.stanford.edu/~gorin 8

GE, 2012

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IIOT COMPUTINGIIoT Class Overview

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 11

Page 10: ee392b Industrial IoT: Applications Overviewweb.stanford.edu/class/ee392b/lecture/apr2/ee392b_2019...IIoT in 2019 •Industrial Internet and Digitization by GE –Supernova •New

IT/OT Convergence in the IIoT 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 12

• IT: Enterprise computing. Cloud. Information Technology

Operational Technology

Edge

Device

Cloud IT

• OT: Industrial systems. Secure, closed networks.. 

Edge computing. Fog.

OT

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Enterprise Architecture View

• Applications– Business processes – Data analytics 

• Platform – Data management– Computing tech – Most action, so far

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 13

DataArchitecture 

TechnologyArchitecture 

BusinessArchitecture 

ApplicationsArchitecture 

TechnologyInvestment

AddedValue

Page 12: ee392b Industrial IoT: Applications Overviewweb.stanford.edu/class/ee392b/lecture/apr2/ee392b_2019...IIoT in 2019 •Industrial Internet and Digitization by GE –Supernova •New

Analytics Disciplines

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 14

IT

OT

Embedded

Modeling and 

Simulation

Operations Research 

Industrial AI 

Decision and Control

Signal Processing 

Statistics &Machine Learning

Domains Tools

Persistent DataIIoT 

Persistent Data

Page 13: ee392b Industrial IoT: Applications Overviewweb.stanford.edu/class/ee392b/lecture/apr2/ee392b_2019...IIoT in 2019 •Industrial Internet and Digitization by GE –Supernova •New

Digital Twin

• Digital Twin is #4 Gartner Top Ten Strategic Technology Trend for 2019, was #4 in 2018 – Half of all large industrial companies will be using digital twins by 2021

• Industrial AI and Digital Twin   – Model‐based, simulation, verification, and validation 

• Example– Digital Twin for Maintenance and Logistics

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 16

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HARDTECHIIoT Class Overview

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 17

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Aviation Applications 

• OT is hard– Southwest Airlines, GE engine blow out in 2018 – Boeing 737 MAX flight control problem in 2019

• Industrial IoT is hard – IIoT includes OT 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 18

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IIoT and Mission‐critical Analytics

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 19

WebAdvertising

0.3%

High-freqTrading

51%

Industrial IoT Analytics

95%

Data ScienceMachine Learning Decision Support Control Systems

99.9999% 99.99999%

RailSystems

CivilAviation

PowerSystems

99.97%

Asset HealthPerformanceSustainmentInsuranceWarrantyUsageSafetyRisk

generality, fast development | reliability, accuracy

ENGCS

OTIT

IIoTIndustrial AI

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IIOT APPLICATION EXAMPLESIIoT Class Overview

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 20

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Where the Action Is?

• Industry 4.0– European IIoT initiative focused on manufacturing 

• IIoT applications for services and operations– 80% of the lifecycle costs 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 21

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Operations and Support Apps

• Engineering and manufacturing – 10‐15% of the lifecycle cost   

• IIoT will change the operations– 65‐80% of the lifecycle cost 

August 2018 © Dimitry Gorinevsky www.stanford.edu/~gorin 22

DoD CBM+

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Vertical Industries

• The future is already here — it's just not very evenly distributed

• Where is it concentrated for IIoT?– High‐value enterprise application 

• Buildings • Transportation• Manufacturing processes 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 23

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Building Example

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 26

• IT: Cloud Application – Data aggregation   

• OT: ZigBee Network – HVAC equipment

IT

OT

Building     System

Cloud

• Predictive monitoring of failures

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AUTOMATION LAYERSIIoT Class Overview

EE392b - Spring 2019 Stanford University

Industrial Internet of Things: Applications © Dimitry Gorinevsky 27

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Levels in ISA‐99 Purdue Model

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 29

Cisco

IT

OT

Embedded

Persistent DataIIoT 

Persistent Data

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Ground Vehicle Example

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 30

Embedded

OT

IT5. Fleet management4. Telematics 

3. Integrated info system (head unit)

2. CAN bus functions  

1. ECU0. Sensor/Actuator

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SYLLABUSIIoT Class Overview

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 31

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Planned Lectures

April 2, Introductory LectureApril 9, State of IIoT Adoption, McKinseyApril 16, Data Analytics for IoT, Google Venture CapitalApril 23, Wireless Networks, 3ten8April 30, Large Scale Data Analytics, Boeing AnalytXMay 7, Car Fleet Application, CEO, FireflyMay 14, IoT Connectivity, Cypress SemiconductorMay 21, Managing Risks with IIoT, Munich Re June 4, IoT Space Investment, David Hornick, VC, August Capital

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 32

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GoogleVentureCapital

McKinsey

IIoT Lecture Map

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 33

Bus

IT

OT

Startup            Vendor           Enterprise

BoeingAnalytX

Cypress Semiconductor

Munich Re

August Capital

Firefly

3ten8

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EVOLVING LANDSCAPEIIoT Class Overview

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 34

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State of the IIoT 

• 2016 Seminar on IIoT – New Wave, IIoT is the future – Upcoming Industry Transformation

• 2017 Seminar on IIoT – Platform efforts. Some application projects– How do we get on the IIoT train? 

• 2018 Seminar on IIoT– Venture investor hype cycle is cresting– IoT cloud platforms are emerging – IIoT keeps rising. Tide, not a hype wave 

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 35

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IIoT in 2019

• Industrial Internet and Digitization by GE– Supernova  

• New waves on the tide flow– Digital Twin– Industrial AI   

• Greatest barriers to IoT adoption today (Bain)– Security– IT/OT integration – Unclear ROI  

EE392b ‐ Spring 2019    Stanford University

Industrial Internet of Things: Applications  © Dimitry Gorinevsky 36