the next industrial transformation with the internet of · pdf file ·...

The Next Industrial Transformation with the Internet of Everything

Wednesday, June 10 3:30-4:30

Pavan Singh, Bryan Tantzen, Barry Einsig

PSOIOT-2004

IoE Transformations

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

Onsite Machine

as a Service

Machines get connected with a converged resilient infrastructure

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

Internet of Everything

New Insights

New Stakeholders

New Outcomes

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

||



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



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

Cisco Investments

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…

Case Study Interviews

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


Component Control

Point Machine

Axel Counter

Enabling Rail Network Operators Infrastructure

SCADA

PTC$%$Posi) ve$Train$Control

MPLS Layer

Optical Layer

Connected$Rail$Architecture


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


PSTN

GSM-R

ASR 901 Router

Mast

Local Signal Box

Video Surveillance

Door Access Control

Digital Signage


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


TelePresence



TelePresence



Network Building Mediator


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


PoE Energywise


PoE Energywise


PoE Energywise

Primary Data CenterPrimary Data CenterPrimary Data Center

Voice Services

Unified ComputingSystem (UCS) Blade



Nexus 2000 Switch Nexus 2000 Switch



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

Connected Trackside

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

How to Leverage Cisco’s Investments

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

OT + IT is key to the 10x opportunity

Industry knowledge Business Outcomes PoC

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Pavan Singh [email protected]

Bryan Tantzen [email protected]

Barry Einsig [email protected]

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