Teollinen internet ja IoT –mistä liiketoimintahyötyä?

24.9.2014Digitalisointi - Avain kasvuun –seminaari

Heikki Ailisto, tutkimusprofessoriVTT Technical Research Centre of Finland

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Mitä Teollinen Internet jaInternet of Thingstarkoittavat- ja miksi murros tulisi nyt

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Industrial internet is a part of “throughdigitalization” – everything goes digital

Industrial internet meanssystematically applying sensor,communication and dataanalysis technologies forimproving productivity andcreating new business.

All objects haveunique digital

identity.

All objects haveunique digital

identity.

Smart things haveconnectivity.

Smart things haveconnectivity.

Internet of Thingsis a digital

representation ofthe real world.

Internet of Thingsis a digital

representation ofthe real world.

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202020101990 -

Interoperability, connectivity, accesscontrol, service discovery, privacy

(IoT platform)

Fixed/wirelessconnectivity

(Internet)

App App App App

intelligent machines smart sensorsUnique ID for every object

Indu

stry

C

Indu

stry

A

Indu

stry

B

Fixed/wirelessconnectivity

(heterogenous)

Silo

1H

VAC

Silo

2Li

ghtin

g

Silo

3A

cces

sco

ntro

l

Silo

X

Silos within one domainand company (systems donot share data), case FM.

Business domains in silos.Waste of resources becauseof duplicating systems, ICT.

Faci

lity

mng

mt

IoT solution:First level benefitsInteroperability andstandardization,lower cost ofimplementation.

Industrial internet broader benefits: Sharing informationbetween systems, within companies, and even betweendomains; Metcalfe’s law V ~ N2,advanced data analytics and DSS bring not only savings butnew business.

Local smartnessSmart machines withsensing and connectivity

Trend from M2M silos to IoT, or Industrial Internet(but this is not the whole picture…)

Enabling newbusiness models,e.g. from sale to pay-by-use

Act:OptimizeControlManage

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Matkalla kohti teollistainternetiä:millainen muutos onodotettavissa?

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Cisco: Internet of everything…the age of IoE, creating an unprecedentedopportunity to connect the unconnected: people,process, data, and things.• The Internet of Everything (IoE) creates $14.4 trillion in Value at

Stake — the combination of increased revenues and lower coststhat is created or will migrate among companies and industriesfrom 2013 to 2022.

• The five main factors that fuel IoE Value at Stake are: 1) assetutilization (reduced costs) of $2.5 trillion; 2) employee productivity(greater labor efficiencies) of $2.5 trillion; 3) supply chain andlogistics (eliminating waste) of $2.7 trillion; 4) customerexperience (addition of more customers) of $3.7 trillion; and 5)innovation (reducing time to market) of $3.0 trillion.

www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf

GE: Industrial InternetThe world is on the threshold of a newera…the convergence of the globalindustrial system with the power ofadvanced computing, analytics, low-costsensing and new levels of connectivitypermitted by the Internet...• Increased productivity …, if the Industrial

Internet could boost annual productivity growthby 1-1.5 percentage points over the next twentyyears ... add a $10- 15 trillion to global GDP –the size of today’s US GDP.

http://www.ge.com/docs/chapters/Industrial_Internet.pdf

What does it mean: Views of industry leaders

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Affordable technology is here

Why is it happening now?

Computing power growsSmart machinesIntelligent analytics, decision support systemsBig data“Store everything” paradigm (dirty cheap GB)

Connectivity like newer beforeInternet IPv6, no limit to nodesIoT paradigm – connected objectsLow power communicationIdentify and track everything (QR, RFID, GPS)

Sensing everything in real timeExtremely low cost and smallConnectedAdvanced sensingBio-mimicing

People are ready for it

CompetencesAverage person has goodcompetences with digital servicesand products.

AcceptancePeople in all age groups use web,smart phones, car computers athome and on free time.Digital natives, Y-generation, notonly accept, they expect!

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Challenges

Identifying and exploiting business benefit.

Finding win-win solutions in value networks vs.fighting who owns the data, who can use it.

Building and deploying applications fullyleveraging data from multiple sources

Cyber security and privacy threats

Closed / fragmented / lock-in solutions(vs. open internet-type solutions)

Installing and managing 50 B smart devices

Powering 1 T sensors

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Teollinen internet jaliiketoimintahyöty

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IoT field and players

Communicationhardware

Cisco, Ericsson,Nokia, Huawei..

Communication& connectivity service

Vodafone, KDDI,TS, Elisa

IoT serviceplatform

Oracle, IBM, SAP, Axeda,Tieto, CGI, Wapice, Oliotalo..

“The ActualBusiness” Asset /

Brandowner

Systemintegrators

Sensorsactuators, RFID Actuator X Sensor X VTT Node RFID X

Sec

urity

&pr

ivac

y

Vert

ical

play

ers

Sch

neid

erG

E

Assetmanagement

servicecompanies

OEMsystem +service

providers

Sie

men

s

Intelligent assets (with sensors, actuators, ID, connectivity)

Many companies here want to become “vertical players”

Industrialautomation

Honeywell,Siemens,Rockwell

MetsoAutomation, ..

Wild cards: Googleand Microsoft, Apple

Telcos, and otherstoo, want to expandtheir role

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Here’s what Google gets for its money:A Product Master Who Beat Apple to theNext Big ThingBefore co-founding Nest, CEO Tony Fadellwas best known for designing the iPod, ...

When Google announced yesterday its $3.2billion cash purchase of Nest, the jokes flew. “Ifyour house is burning down you’ll now getgmail ads for fire extinguishers,” Valleywag’sSam Bidd

What Google Really Gets Out ofBuying Nest for $3.2 BillionBY MARCUS WOHLSEN, Wired Magazine01.14.2014

Nest Learning ThermostatThe bottom line: Thesecond generation of theenergy-saving NestLearning Thermostat putsthis device even furtherahead of the (nearlynonexistent) competition.Is this a threat or opportunity to established

companies?

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Potential business models

• Optimize utilization,save costsManage

• Pay-per-useMonetize

• Remote operationOperate

• Provide digitalservices and contentExtend

According to Gartner, there are four major business models.

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Model Remotesupport

Optimizecurrentprocess

Transformation toservice

Pay per use “Revenueshare”

Case Remotemaintenancesupport in fleetmanagement(Finnishcompany X)

Tana Smart site:shredderproductivity, cost

Tires as serviceto truckcompanies(Michelin)

Advancedleasing, e.g.vehicles,machinery

Split the savingsin energy(Facilityautomationcompany)

Players Equipmentsupplier/serviceprovider(–Customer)

End userSupplier

Service supplier– Customer

Supplier – User(customer)

Supplier(maintenance,analytics…)Customer

Technologies Voice & videoconnectivity,augmentedreality, 24/7 callcenter withexperts

Data collectionMeasurementcommunicationdata-analysis,optimization,visualizationcontrol

Measurementcommunicationdata-analysis

Reliable trustedmeasurement,communication

Reliable trustedmeasurement,analytics

How to benefit from Industrial Internet

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RDI activity

EU Horizon 2020: Cyber Physical Systems,Internet of Things

ECSEL PPP: embedded systems, IoT,smart systems, critical systems

Digile SHOK: IoT, D2I

FIMECC: S-STEP, S4Fleet

VTT Productivity with IoT

Tekes program on industrial internet

Finnish Industrial Internet Forum

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Module 4.1Ismo Vessonen, Pirkka TukevaGlobal asset management• CBM• Remote operation,monitoring

• Digital spare parts

Module 4.2.Miimu AiraksinenIntelligent infrastructures• Smart lighting (Janne Aikio,Marko Jurvansuu)

• Responsive buildings

Module 4.3Anu SeistoDigital society• Interoperable services• Digital infrastructure

Module 3. Information management and analysis, cyber security, Heli Helaakoski

Module 2. Connectivity, Pertti Raatikainen

Module 1. Networked sensors, Jukka Hast From real world phenomena to digital data

Program Lead, Heikki AilistoBusiness development, Petteri Alahuhta

Industrial internet is a VTT priority:ProIoT program – 2013-16

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Opportunity Mapping is the Starting Point

OpportunityMapping Project plan

Business Model Innovation- Development Programme

Product or service Innovation- Development Project

Specific technology need- Development Project

Opportunity Mappingservice and tools

Funding opportunitiese.g. Tekes,

Technology and BusinessDevelopment resorces,services, partners, tools

Funding opportunitiese.g. Tekes, EU, Ecsel

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Conclusion

Industrial internet is coming. It will disrupt most businesses andpublic services during next 3 to 15 years. *)Technologies are there, and they are affordable.Risks and threats

Remaining too long in comfort, until someone takes your businessMajor information security breaches (company level)

OpportunitiesImproved competitiveness through offering productivity to customersOpen new business or take somebody else’s old one

What to doStart preparing IoT/II strategy – think networks, can’t do it alone.Analyze your services, products and processes. How does industrialinternet impact them? Is the game going to change? Should we change it?Start early with experiments, learn from experience, also from setbacks.

*) Vastaukseni otsikon kysymykseen hype vai todellinen mahdollisuus: hypeäkinon mukana, mutta kyllä tulossa on murros ja mahdollisuus.

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TECHNOLOGY FOR BUSINESS

Contact: Heikki Ailistoheikki.ailisto AT vtt.fi

+358 40 555 0726

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VTT:n esimerkkejä teolliseninternetin teknologioista jahyödyistä

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Pilot installations in outdoor recreational area in HelsinkiMalminkartano.Commercial luminaires as starting point to improvetechnical performance as well as user acceptance.Integrated sensors and wireless communication to deliverdifferent lighting modes.

Case: Smart Streetlight “AthLEDics”

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