Post on 22-May-2020
Industrial Internet of Things
Greg Gorbach
Vice President
ARC Advisory Group
ggorbach@arcweb.com
- The New Frontier -ARC Industry Forum
February 2015
3© ARC Advisory Group
Think ‘Different’To tap the potential of IIoT
New Service Models
New Products
New Production Techniques
New Business Processes
New Competitors
New Partners
New Workers
IIoT will significantly change the world. You won’t participate with conventional thinking
and an incremental approach
4© ARC Advisory Group
Think ‘Different’
Then:
Now:
Integration
5© ARC Advisory Group
An IIoT ‘Thing’ is …
•An industrial asset•A platform for new apps, services•Remotely manageable•Part of an ecosystem•Secure
With local capabilities:•Computing: Processor & Storage•Communication: Wi-Fi, Ethernet, Bluetooth, etc.
•Monitor Sensors, Drive Actuators•Run analytics, agents, apps, etc.•Stream data
Example: Intel Galileo board with Intel Quark processor
Compressor
6© ARC Advisory Group
Key IIoT and I4.0 Industry GroupsRepresentatives are here at our Forum
Dr. Reinhold AchatzThyssenkrupp
Dr. Richard SoleyOMG
Jim WetzelGeneral Mills
Denise SwinkSMLC
7© ARC Advisory Group
IIoT DriversReduced Downtime and Faster Service are Top Drivers Now
Source: ARC Industrial Internet of Things Survey
8© ARC Advisory Group
IIoT Impacts …
• Remote Monitoring & Diagnostics
• Access to Experts
• New Service Models
Uptime
• Process Optimization
• Flexible Control of Assets
Operating Performance
• Collaboration
• Location Awareness
• Training
Worker Needs
• Accident response
• Incident reporting
• Safety
Safety & Risk Mgmt
• Materials Tracking and Management
• Spare Parts Marshalling
Logistics
ALM
MOM
SCM
Automation
Enterprise
Design
9© ARC Advisory Group
Industrial IoT Technologies and Architectures
10© ARC Advisory Group
IIoT Technologies
- Cloud Computing
- Embeddable Computing & Communications
- Analytics & Visualization
- Mobile Devices
- Industrial Apps
- Network Technologies
- Modeling & Simulation
- Smart Sensors
- Software/Workflow/BPM
11© ARC Advisory Group
Industrial Internet of Things Architecture
Technology Enables Business Process Improvements
Actio
nsD
ata
Smart Things
Gateway, Network
Cloud
SW & Analytics
Users, Systems
Services, Solutions
Decisions
12© ARC Advisory Group
IIoT Maturity ModelIIoT Redefines Assets
Level of Maturity
Ad
ded
Valu
e
Conventional
Instrumented
Software Defined
Smart
Autonomous
IIoT Enabled
• Connectable or connected
• Provides data externally
+Some local intelligence
+Software tunable asset
+Enhanced data feeds
+Enhanced intelligence
+Active condition monitoring
+Self optimization
+Interact with ecosystem
+Additional Sensors
+Real-time analytics
+Onboard execution software
+New business models
+Performance guarantees
Maturity Model – IIoT Asset Capabilities
IIoT Potentially Redefines Asset Performance Expectations
• No intelligence or connectivity
13© ARC Advisory Group
Smart Products
Connected Products
Smart Metrology
3rd Party Services
Plant Systems and Assets
Enterprise Systems
Connected Enterprise
Self-Planning Systems
Flexible Worker Schedules
Access Control Services
Location/NavServices
Video Presence (Expert Help)
Augmented Reality
Smart Tools
Connected Worker
Collaboration
Smart Components
Smart Logistics SmartCarriers
RFID
Smart Warehouse
Connected Supply Chain
The Emerging Smart Production Environment (IIoT, I4.0, etc.)
New or Changing …- Software: Analytics, APS, MES/MOM, EAM/CMMS,
LIMS, PAM, Security, etc.- Mobility and enhanced worker connectivity- Remote services; Product ‘as-a-Service’- Smart sensors, assets, network connectivity, cloud
… All along with traditional automation and enterprise systems
IIoT Smart Module
RemoteMonitoring &
Services
Connectivity Platform
Advanced Analytics
Apps
Smart Machines- Connected- Software-defined- Agents, Apps- Sensors e.g. vibration,
ultrasound, infrared etc.
Connected Machine
Smart Containers
14© ARC Advisory Group
ARC’s IIoT Model for Connected Operations
ARC’s Industrial Internet of Things Model for Connected Operations
15© ARC Advisory Group
Industrial IoT Enables New Services and Business Models
16© ARC Advisory Group
Products
Services
Product-Service Hybrid
Performance. Results. Outcomes.New customer expectations drive new economic models
Shift from buying products and services to buying guaranteed results
• New product hardware/software requirements
• Data and information intensive operation
• New service delivery metrics and model
• New competencies and expertise
• New selling model
If you don’t disrupt your market, someone will
17© ARC Advisory Group
Supplier
Utilities
Industrial/Retail Customer
Distribution
Corp HQ
CustomerEng Service Provider
OEM
Other Plant
Contract MFR
Rethink Industry ModelsValue Chain Opportunities for Product-Service Hybrids
Plant Ops
IT Sales/Mktg
Supply Chain
HR
Procurement R&D
Finance
Service
Sustainability
Intelligent, connected products set the stage for new services and new business models
18© ARC Advisory Group
IIoT Maturity ModelIIoT Enables New Services
Level of Maturity
Ad
ded
Valu
e
Conventional Maintenance
Condition Monitoring
Remote Monitoring & Diagnostics
Remote Services
Asset as a Service
IIoT Enabled
• Add sensors• Smart field
devices• Trend
analytics• Handhelds
+Enhanced Connectivity
+Advanced analytics
+Access to Experts
+Help Desk Integration
+Platform+Service
software+SLA+Expanded
Services
+Performance guarantee
+Execution software
+Enhanced SLA
+Spares Mgmt+SC Software+Subscription
Model
Maturity Model – IIoT Services Enablement
IIoT Enables New Business Models and Potentially Transforms the Supplier/Customer Relationship
• Time-based• Break/fix
19© ARC Advisory Group
Industrial IoT Use Cases
20© ARC Advisory Group
IIoT Example: Cement Plant - AnalyticsUsing connectivity, data analysis to improve asset performance
Improve the Processes
Reliability Engineer
Cement Plant
Workflow
Technician
Maintain the Assets
Data from Equipment
Cloud
Analytics
21© ARC Advisory Group
IIoT Example: Oil Platform – Reduce NPTAvoid expensive unplanned downtime
Oil Platform
Workflow
Ship Seal to Rig
Technician
Change Seal During Next Maintenance Cycle; Save $7.5M
Data from Equipment(including pressure)
Cloud
Predict Seal Failure on Water Injection Pump
AnalyticsService Staff
22© ARC Advisory Group
IIoT Example: Oil Platform - CollaborationAccess to global experts, share real-time information
Push To Talk; Radio-to-Telephone Patching, etc.
Common, shared, multi-pane, multi-channel, interactive live collaboration space with event
monitoring and session recording
Share desktops, apps, video feeds, data feeds. With
messaging, access to contacts info and to experts
Oil Platform
23© ARC Advisory Group
IIoT Example: Mining – Tire Monitoring Avoid risk, downtime, and expense
Tire OEM
Haul Vehicle
Technician
Change Tire At Safe Location; Avoid Risk,
Downtime, and Expense; Redeploy
Other Assets
Mine Operations
Dealer’s Tire Service Truck
Data from Tires and
Equipment
Cloud
Analytics
Predict Tire Failure
Workflow
24© ARC Advisory Group
IIoT Example: Compressed Air StationOEM helps avoid unplanned downtime in in-service products
Compressed Air
Workflow
Technician
Temperature, pressure level, delivered air
volume, machine status, etc.
Cloud
Analytics
Stream data to OEM servers
Visualize Asset Performance; Predict Machine Health Issues
OEM Staff
25© ARC Advisory Group
IIoT Maturity ModelAcquiring and Implementing IIoT
Level of Maturity
Ad
ded
Valu
e
Parts and Pieces
Connected Devices
Application
Whole Solution
Outsource/As a Service
IIoT Enabled
• Sensors• Modules• Gateways• etc.
+Analytics+Software+Integration
+Connected Devices
+Applications+Network+Platform+Security+Install+Startup+Monitoring+Business
Optimization
+Subscription Model
+Performance guarantee
+Execution software
+Maintenance Mgmt s/w
Maturity Model – IIoT Solution Completeness
IIoT Solution Offerings are Evolving from Hobby Kit to Whole Solution
• Custom• DIY
26© ARC Advisory Group
Summary
27© ARC Advisory Group
IIoT Has The Potential to Deliver
Innovative Products
Innovative Services
Innovative Business Models
Energy EfficientProcesses
ImprovedProductivity
IncreasedVisibility
• Increase Revenue• Reduce Costs• Improve Operations• Save Time• Delight Customers
28© ARC Advisory Group
Industrial IoT Challenges
Cyber Security
Technology Standardization
Intellectual Property Ownership
Social, political
Complexity
• System complexity grows with the number of connected devices
Cyber Security is the Biggest Challenge
29© ARC Advisory Group
You Don’t Know How to IIoTExperiment. Learn. Seek Out New Partners. Now!
Embeddable HW/SW
Cloud
Analytics
Networking
Cybersecurity
Partners
• Technology• Solution• Implementation• Service Provider• etc
Get ready
• Try out technologies
• Hire experts
• Develop partners
30© ARC Advisory Group
Industrial IoT and Industrie 4.0 ViewpointsCheck out our Blog and Newsletter
Website: bit.ly/iiotblog
Subscribe to Newsletter:bit.ly/iiotnews
31© ARC Advisory Group
The Industrial IoT is already here
“The future is already here. It's just not very
evenly distributed”
- William Gibson, science fiction author who coined
the term ‘cyberspace.’
32© ARC Advisory Group
Thank YouFor more information, contact the author at
ggorbach@arcweb.com or visit our web pages atwww.arcweb.com