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T H E I N S I D E V O L U M E 2 , I S S U E 1

4 Q1 2016 SMART INDUSTRY • WWW.SMARTINDUSTRY.COM

16

c o v e r s t o r y

THE THOUGHT LEADERSHIP ISSUE

HOW MANUFACTURERS ARE PROFITING FROM THE IOTMPI Group study distinguishes IoT Innovators

from those slow to realize digital

transformation’s potential

SI16Q1_04_05_TOC.indd 4 3/28/16 11:49 AM

Smart Industry is published 2 times annually to select members of Putman Media magazines. PUTMAN MEDIA INC. (also publishers of CHEMICAL PROCESSING CONTROL, CONTROL DESIGN, FOOD PROCESSING, PHARMACEUTICAL MANUFACTURING and PLANT SERVICES), 1501 E. Woodfield Rd., Suite 400N, Schaumburg, IL. 60173 (Phone: 630/467-1300; Fax: 630/467-1124.) Address all correspondence to Editorial and Executive Offices, same address. ©Putman Media 2016. All rights reserved. The contents of this publication may not be reproduced in whole or part without consent of the copyright owner. assumes no responsibility for validity of claims in items reported. Single copies $15.

V O L U M E 2 , I S S U E 1 T H E I N S I D E

SMART INDUSTRY • WWW.SMARTINDUSTRY.COM Q1 2016 5

d e p a r t m e n t s

f e a t u r e s

SMART INDUSTRY is published 4 times annually. PUTMAN MEDIA INC. (also publishers of CHEMICAL PROCESSING CONTROL, CONTROL DESIGN, FOOD PROCESSING, PHARMACEUTICAL MANUFACTURING and PLANT SERVICES), 1501 E. Woodfield Rd., Suite 400N, Schaumburg, IL. 60173 (Phone: 630/467-1300; Fax: 630/467-1124.) Address all correspondence to Editorial and Executive Offices, same address. ©Putman Media 2016. All rights reserved. The contents of this publication may not be reproduced in whole or part without consent of the copyright owner. SMART INDUSTRY assumes no responsibility for validity of claims in items reported. Single copies $15.

07 EDITOR’S PAGE

09 PUBLISHER’S NOTE

10 CONNECTIONS

35 IDEAS EXCHANGE

46 TOOLBOX

22 UNLEASHING THE POTENTIAL OF CONNECTED PRODUCTS AND SERVICESWorld Economic Forum report traces the emergence

of the Industrial Internet of Things and the outcome

economy, qualifies opportunities and risks, and offers

recommendations for industry stakeholders

28 INDUSTRY 4.0: A EUROPEAN PERSPECTIVEPwC’s Strategy& consultancy surveyed 235 German

industrial companies to arrive at this portrait of the

essential attributes, opportunities and challenges of

the fourth industrial revolution

30 REFERENCE ARCHITECTURE LAYS FOUNDATION FOR THE IIOT Industrial Internet Consortium document provides

a common language to enable faster Industrial IoT

development and a blueprint for standards

development

33 BRIDGE THE GAP BETWEEN OT AND ITThe convergence of operational and information

technologies doesn’t have to be like merging rocket

science with brain surgery. This white paper explores

the historical divide and how off-the-shelf tools are

enabling the Industrial IoT today

SI16Q1_04_05_TOC.indd 5 3/28/16 11:51 AM

TEAMWORK ORDERSASSETSMEASUREMENTS Tim SmithSeattle Team

Thermal Image GRAPH VIEW: PAST 3 MONTHS

4/24/2015

CHANGE IMAGE CHANGE IMAGE

2/24/2015 – 11:45 AM | Tom SmithWork Order 60021467

4/24/2015 – 11:15 AM | Tom SmithWork Order 60021621

Display Markers ON

TEAMWORK ORDERSASSETSMEASUREMENTS

ASSET

Status Asset List & HealthAlarms

Asset List Asset Health

All Assets

Organize Assets

South Campus

Building 1

Building 2

Building 3

North Campus

Building 1

Building 2

Building 3

Tim SmithSeattle Team

All Assets

Asset Last Status ChangeStatus

999+301812

ADD ASSET

IMPORT ASSET

EDIT LIST

2/21/15 8:23AMWill Jones

North Campus > Building 1 > Floor 1External Pump

2/21/15 6:46AMJake Brown

North Campus > Building 2 > Floor 1Circulation 3

2/20/15 10:18PMLarry Davis

South Campus > Building 2 > Floor 1Line 2 Supply


South Campus > Building 1 > Floor 1Field Pump 7

2/20/15 10:32AMMark Wilson

North Campus > Building 3 > Floor 1Compressor 1

2/20/15 6:14AMMark Wilson

North Campus > Building 1 > Floor 1Circulation 2


South Campus > Building 2 > Floor 1Field Pump 2

FILTER SEARCH ASSET

Include asset from subgroups

0

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TEAMWORK ORDERSASSETSMEASUREMENTS

ASSET

Status Asset List & HealthAlarms

Asset List Asset Health

All Assets

Organize Assets

South Campus

Building 1

Building 2

Building 3

North Campus

Building 1

Building 2

Building 3

Asset Status Summary

Tim SmithSeattle Team

NORMAL MODERATE SERIOUS EXTREME

JAN FEB MAR APR MAY SEP OCT NOV DECJUN JUL AUG

0

5

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2014 Monthly Asset Status

JAN FEB MAR APR MAY SEP OCT NOV DECJUN JUL AUG

2014 Monthly Alarms

Asset Alarm Summary

Asset Status Timeline

GRAPH VIEW: 12 MONTHSSEARCH ASSETSFILTER

JAN FEB MAR

Compressor 1Compressor

External PumpPump

Circulation 3Motor

Line 2 SupplyConnector

Field Pump 7Pump

JAN – MAR 2014 Timeline

TotalAssets

523

Normal 70%

Moderate 13%

Serious 10%

Extreme 7%

2014 Asset Status Overview

Overview

YEAR: 2014

NUMBER OF ASSETS

VIEW OPTIONS: MONTH YEAR: 2014

VIEW OPTIONS: MONTH YEAR: 2014VIEW BY: NUMBER

NUMBER OF ALARMS

We balanced the loads on the 3- Phase panel and

set up a temperature alarm (threshold=30 °C) on

the motor to give an early warning going forward.

1/21/2014 6:46 AM | Jake Brown

Status Change Notes (2)

1/16/2014 – 1/21/2014

This motor overheated and shut down again today.

The motor field winding insulation was damaged

from the excessive heat that exceeded the

temperature specs on the nameplate..

1/16/2014 10:06 AM | Jake Brown

View Asset History

Screens adjusted slightly to accommodate print.

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Q1 2016 7

B Y K E I T H L A R S O N , E D I T O R I N C H I E F F R O M T H E E D I T O R

Headlinedeck

CALLOUT

As a journalist tracking the ongoing digital transformation of

industry, I sometimes feel I live at the intersecting apexes of

two different Gartner hype cycles: One on the Industrial Internet

of Things (and all its related permutations) and another on content

marketing. Every technology provider serving the industrial mar-

ket feels the need to establish thought leadership by publishing

its own white papers or research reports—and overwhelmingly

of late those papers and reports are slanted to the IIoT. For ex-

ample, a simple Google search on the “Industrial Internet of

Things” returns some 55 million matches.

Indeed, the genesis for this print edition of Smart

Industry, “The Thought Leadership Issue,” was to apply a

somewhat higher level search algorithm to all the relevant

content floating about in cyberspace. We sought to summarize for you some of

the most salient content on the topic we could find—and point you in the direc-

tion of more information.

First off, we have an exclusive look at recent research conducted by the MPI

Group, Inc., on the state of IoT adoption across U.S. manufacturing. The report looks

at the maturity of survey respondents’ IoT awareness—both for improving their inter-

nal processes and for reinventing the performance of the products they sell.

The balance of the features in this issue are the start of a series we’re calling Required

Reading on the Industrial IoT. Included are summary highlights of four freely available re-

ports that we believe will substantially advance your understanding of the opportunities

and challenges presented by this stage of industry’s digital transformation.

While much of the published thought leadership on the IIoT to date dwells on the

value to be deliverd by the technologically straightforward connection and integra-

tion of formerly siloed information systems, it’s hard to not get even more excited

about the longer-term potential of the Industrial IoT.

More advanced concepts of dynamic composability, for example, allude to resilient

systems of systems that can understand each other’s capabilities; that can negotiate

with one another and effectively work together in the context of a larger, commonly

understood purpose.

Google DeepMind’s AlphaGo project recently offered a glimpse of this exciting

future when inn March it defeteated a human master of the complex and ancient

strategy game Go. Unlike the brute-force chess victory of IBM’s Deep Blue 20 years

ago, DeepMind learned to recognize on its own successful strategies that human

programmers could not have articulated. Whether applied for good or for evil (as

some worry), such advanced machine learning capabilities together with resiliently

connected digital systems undoubtedly will bring the IIoT to a whole new level.

Keith Larson, VP [email protected]

Industrial IoT 2.0Easier integration and interoperability are only the start

In Memory of Julie Cappelletti-Lange

Vice President 1984-2012

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SMART INDUSTRY is published 4 times annually to select

members of Putman Media magazines. PUTMAN MEDIA

INC. (also publishers of CHEMICAL PROCESSING CONTROL,

CONTROL DESIGN, FOOD PROCESSING, PHARMACEUTICAL

MANUFACTURING and PLANT SERVICES), 1501 E. Woodfield Rd.,

Suite 400N, Schaumburg, IL. 60173 (Phone: 630/467-1300; Fax:

630/467-1124.) Address all correspondence to Editorial and

Executive Offices, same address. ©Putman Media 2016 All rights

reserved. The contents of this publication may not be reproduced

in whole or part without consent of the copyright owner. SMART

INDUSTRY assumes no responsibility for validity of claims in

items reported. Single copies $15.

SI16Q1_07_EDITORS_PAGE.indd 7 3/28/16 11:54 AM

netIOTIndustrial Cloud Communication

©2016 Hilscher North America, Inc. All trademarks are the properties of their respective companies.

To learn more about network solutions from Hilscher, call 1.630.505.5301, email: [email protected] or visit www.na.hilscher.com.

n Don’t “rip-and-replace”—Maintain existing networks

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n Integrate IoT protocols in all field devices

n OPC UA and MQTT compliant communication

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Edge Gateway

Device Interface Module



B Y T O N Y D ’ A V I N O , P U B L I S H E R P U B L I S H E R ’ S N O T E

Innovation can be measured in one

extreme as “radical/disruptive/new

to the business” and on the other

extreme as “incremental improve-

ments.” Both have always been

business imperatives.

Leveraging digital technology

across process, products and

services can deliver improved cost

effi ciency, safety and enhanced

productivity. The Cisco Digital

Manufacturing Infographic (search

on that name to see the Infograph-

ic) displays three proof points that

that manufacturers engaged in

continuous improvement will fi nd

hard to ignore:

• FANUC saved $40 million by

reducing downtime

• Sub Zero cut new product

introduction cycle time by 20%; and,

• Stanley Black & Decker re-

duced labeling error rates by 16%.

Laggards in this area not only

miss the incremental improve-

ment potential, but fundamentally

risk losing competitive position to

progressive entrants and advanced business models. There

is a startling prediction referenced in the Infographic that

drives that last point home. “Digital disruption will displace

nearly 40% of top incumbents across industries over the

next three to fi ve years”.

Rado Kotorov, vice president of product marketing for In-

formation Builders, in a recent blog post clearly addressed

a manufacturer’s growth prospects in a world enabled by

the IIoT and digital technologies.

“Digitization means more data. And when more data is

harnessed correctly it is converted into more knowledge,

more opportunities and more revenues.”

While there are many outcomes fueled by innovation,

more opportunities and more revenues are likely to rank

pretty high on any initiative-taker’s list.

KPMG found, in surveying 386 senior manufacturing

executives globally, that manufacturers rate investing in

breakthrough technologies as a “must do,” with more than

66% of respondents confi rming they are focused on long-

term innovation strategies. Increased investment in new

manufacturing technologies and R&D are clearly indicated

as support initiatives in that quest.

Another highlight from The 2015 KPMG Global Manufac-

turing Outlook (GMO) survey is that 44% of respondents

across the globe say they will allocate more than 20% of

their total technology spend on systems to improve the

pace and value of innovation (engineering, manufacturing

and supply chain) in the next year.

U.S. respondents are even more bullish, with 62% saying

they will allocate more than 20% of the technology spend

to drive innovation.

COLLABORATION IS KEYThe survey found that manufacturers are increasingly

collaborating with suppliers, customers and third-party

research organizations. A full 81% of global respondents

(78% in the U.S.) say that they are adopting collaborative

business models with suppliers and customers to improve

the value of their innovation investments—up from 68% in

KPMG’s 2014 survey.

In the last 12 months, I’ve enjoyed my interaction and

discussions with many technology adopters in manufactur-

ing as well as their technology providers. At our inaugural

Smart Industry 2015 conference, I witnessed productive

discussions between those seeking to assess and adopt

digital initiatives, and the technology providers that were

sharing use-cases, case studies, and best practices in ad-

dressing the opportunities and risks.

Our 2016 event (September 26-28 at The Drake Hotel in

Chicago) will continue to foster that opportunity, undoubt-

edly with more insight and knowledge to be shared and

higher ground to be gained.

It’s hard to put a value on 12 months of experience in

this latest wave of technological change. But at Smart

Industry 2016, we’ll see just how far it’s possible to come

in a year. We hope that you join us.

Tony D’Avino, Publisher [email protected]

Innovation tops list of industry prioritiesIn this era of digitization, collaborating on new ideas and concepts is central to success

A full 81% of

manufacturers

across the globe

are adopting

collaborative

business models to

improve innovation

SI16Q1_09_PUBLISHERS_NOTE.indd 9 3/28/16 12:02 PM


FROM THE EDITOR C O N N E C T I O N S N E W S & A N A LY S I S

PTC lays groundwork for ‘Enterprise Augmented Reality’ space

Augmented reality, or AR, is no longer just a tool for

consumer marketers and gamers. “It’s changing life as we

know it, changing how we interact with things, including

the things of the enterprise,” said Charlie Ungashik, chief

marketing officer for PTC, in his opening remarks to the

more than 200 journalists, analysts and VIPs gathered for

the company’s recent ThingEvent gathering in Boston.

Livestreamed online, the event also attracted more than

14,000 people around the globe from some of the world’s

largest companies, including strategists, service leaders,

application developers, product designers and software

systems engineers.

The purpose of ThingEvent was to stake PTC’s claim in

the emerging ‘Enterprise AR’ space, to explain why AR is

such a game-changing technology for the enterprise, and

to unveil a new set of PTC tools and technologies designed

to ease the development and management of AR applica-

tions at scale. “Products now exist in the digital and physi-

cal worlds at the same time,” explained Jim Heppelmann,

CEO of PTC, referencing the digital twins that increasingly

mirror the characteristics and performance of physical

things in real-time. “Everything has converged except how

we interact with things,” Heppelmann said. “Soon we’ll

experience both the digital and physical worlds as one. It’s

time to take a fresh look at things.”

Indeed, augmented reality is perhaps the clearest illus-

tration of the power of the cyber-physical system concepts

that underlie today’s enterprise megatrends such as the

Internet of Things (IoT), its Industrial counterpart (IIoT) and

Industrie 4.0. In short, AR involves the contextual projec-

tion of digital information directly onto an individual’s view

of a thing itself. Enterprise AR, in particular, draws data

from enterprise systems such as for computer-aided de-

sign (CAD), product lifecycle management (PLM) as well as

real-time information being generated by the device itself,

such as through sensors. Today, AR applications often su-

perimpose digital information onto the camera display of a

smartphone or tablet. Increasingly, however, AR is moving

onto eyewear that allows the viewer full use of his or her

hands. “While the future may be on our heads, it’s starting

in our hands,” noted Jay Wright, general manager of PTC’s

Vuforia AR platform.

AR’S FIRST KILLER APPWhile maintenance and other service tasks are “the first

killer app of Enterprise AR,” according to Heppelmann,

any number of complex physical tasks performed by

humans stand to benefit from the technology. Next up at

ThingEvent, four PTC customers discussed how they were

using AR to improve the performance of “thing-related”

tasks:

• Jens Tuma, head of customer service for KTM, de-

scribed how the off-road motorcycle manufacturer is

testing AR to help deliver consistent, accurate mainte-

nance on its bikes. “We see huge potential to address

service challenges,” Tuma said. “We use AR to present

clear information in the context of the product.”

• Steve Postma, enterprise architect for Sysmex,

showed how both end users and service techs of its

medical instruments could use AR to troubleshoot

its medical analyzers. “Our goal is use IoT and AR to

enable high instrumentation uptime for companies,”

Postma said.

“PTC is completely focused on delivering innovative technology that

will cause everybody to step back and take a fresh look at the way

we conceive of and interact with products.” Jim Heppelmann, PTC

CEO, on the company’s latest efforts to scale augmented reality

technology to enterprise dimensions.

SI16Q1_10_14_CONNECTIONS.indd 10 3/28/16 12:05 PM


N E W S & A N A LY S I S C O N N E C T I O N S

• David Yarnold, CEO of ServiceMax, discussed the field

service provider’s realization that mobile product

data access had the potential to truly disrupt service

operations. “Eliminating unplanned downtime is clearly

one of the greatest values to be delivered by the IoT,”

Yarnold said. AR, in particular, helps the company’s

service technicians to more quickly localize problems,

ensure worker safety, accurately diagnose problems,

and execute fixes with the highest probability of suc-

cess, Yarnold said.

• Herve Coureil, CIO of Schneider Electric, demonstrated

the use of AR to display the operational status – and

a maintenance need – in a tablet view of one of the

company’s uninterruptible power supplies (UPS). With

the need for maintenance clearly flagged, an AR ap-

plication then stepped him through how to replace a

defective battery.

ENABLING AR AT ENTERPRISE SCALEUnderlying and enabling all of these Enterprise AR applica-

tions is PTC’s new ThingX suite, which also was unveiled to

the public at ThingEvent. The three elements of the ThingX

suite, ThingBrowser, ThingServer and ThingBuilder work in

concert with the company’s new VuMark next-generation

barcodes to make it far easier to develop and manage AR

applications at the scale needed to deploy AR across an

enterprise’s many things.

VuMark is a universal identification solution that can be

used to recognize any unique object to deliver a specific

AR experience while allowing the design freedom for a cus-

tom look and feel of the marker (see image). VuMark also

provides a simple method for encoding data such as a URL

or a product serial number and overcomes the limitations

of existing bar code solutions that do not support AR expe-

riences and can detract from a product’s appearance. (For

more information on VuMark, visit developer.vuforia.com.)

VuMark is expected to be released in spring 2016.

ThingBrowser is a single browser app that uses comput-

er vision and VuMarks to recognize things in the environ-

ment around us, and then uses Vuforia AR technology to

augment the right visual experience onto those things,

depending on where the user is, who they are, and what

thing they are browsing. ThingBuilder, in turn, is a code-

less graphical authoring environment that allows virtually

any enterprise or consumer user to author augmentable

experiences using 3D CAD data combined with IoT and

enterprise services.

These experiences, once authored, are stored on

the ThingServer, which is the heart of the ThingX suite.

ThingServer manages all of the experiences that exist for

various physical things and delivers, via the ThingBrowser,

all of the relevant information and analysis from across an

organization, from the product’s digital definition, to data

about its operation and service history, for a particular

thing that that’s being viewed.

“PTC is completely focused on delivering innovative

technology that will cause everybody to step back and

take a fresh look at the way we conceive of and interact

with products,” concluded Heppelmann.

“The customer demonstrations shown here at the Thing-

Event are the tip of the iceberg of what is possible; we are

at the beginning of an incredible period where IoT, machine

learning and augmented reality technologies join forces

with a new generation of enterprise solutions to cause us

to rethink how we conceive, create, operate, service, and

make money from products. It’s an exciting time for PTC

and our customers.”

VuMarks are next-generation barcodes that serve to orient augmented reality applications to their associated things, as well as alert people

to the existence of AR content.




ExxonMobil puts process automation suppliers on notice

When ExxonMobil Research & Engineering announced in

January that it had awarded Lockheed Martin a contract

to act as lead system integrator for the development of a

next generation process automation system, it had many

pundits in the process automation community scratching

their heads.

Sure, Lockheed Martin helps create mission critical sys-

tems for aerospace and defense, but what do they know

about controlling an oil refi nery?

But as more details of ExxonMobil’s vision have

emerged, the choice appears both inspired and potentially

disruptive. Consider a recent soundbite: “Innovation is be-

ing stifl ed by legacy architectures and hardware that just

can’t be that responsive.” This quote isn’t from anyone at

ExxonMobil or in the process automation sector, but from

U.S. Navy leadership. Indeed, the armed forces face many

of the same challenges that companies like ExxonMobil

do: aging, monolithic, proprietary systems that are both

expensive and infl exible.

“It’s too diffi cult to replace a distributed control system

(DCS), and we’re not getting enough value from them,” said

Don Bartusiak, chief engineer, ExxonMobil Research & En-

gineering, in keynote remarks at the ARC Advisory Group’s

recent Industry Forum in Orlando. The company faces

global growth and competition yet must lower capital

costs and improve profi tability, Bartusiak said. “We have

opportunities with fi nite windows.”

LESSONS FROM AVIONICS EFFORTSMuch like private industry, the U.S armed forces are under

pressure to protect their systems from cyber attack, as

well as stay one step ahead of adversaries in the physi-

cal world. An important step forward has been The Open

Group’s Future Airborne Capability Environment (FACE),

a consortium of avionics industry participants formed in

2010 that has worked to create an open avionics standard

for making military computing operations more robust,

interoperable, portable and secure.

Consider Lockheed Martin’s leadership role in what

Bartusiak called this “constructive revolution” in avion-

ics, together with a need for more “systems engineering

capability with real-time, deterministic, high availability

open systems,” and the selection of the relative out-

sider to help shake up the process automation status

Open systems architecture visionA system of systems

Cloud services• Predictive maintenance• Global data analytics• Remote operations• Fleet optimization

Transactional services• Maintenance• Planning and scheduling• Enterprise data analytics

New

New

New

App B

RTAC platform

App A

High- availability, real-time,advanced computing platform

Operations platform Business platform

L4 functionsIT data center

Transactionalcomputing platform

Real-time service bus Network services

Core real-time functions

DCS

DC

N

DC

N

Migration

Analyzer Machinerymonitoring

Safetysystems

Wirelessgateway PLC

Legend

Existing New

L1 L3 functionsOT data center

L1 L3 functionsI/O processingRegulatory controlApplication hosting

ExxonMobil envisions a new “system of systems” that will allow it to more easily adapt its operations environment to changing needs and

opportunities.



N E W S & A N A LY S I S C O N N E C T I O N S

Advance to the IIoT.Connect devices and ignite productivity.

© 2016 Red Lion Controls, Inc. All Rights Reserved.

+1 (717) 767-6511 I [email protected] I www.redlion.net

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quo makes a ton of sense.

End users of process control sys-

tems such as ExxonMobil are looking

to benefi t from larger technology

trends such a virtualization and open

architectures; to derive value from

Internet of Things, wireless and cloud

services models; and to leverage

emerging security models that enable

more secure data fl ow between the

operational technology and IT/cloud

layers of the enterprise, Bartusiak said.

OPEN, COMMERCIALLY AVAILABLE SYSTEM IS GOALIn the end, ExxonMobil envisions

prototyping in 2016 and deploying in

2019 a standards-based, open, secure

and interoperable control system that:

• Promotes innovation & value

creation;

• Effortlessly integrates best-in-

class components;

• Affords access to leading-edge

capability & performance;

• Preserves the asset owner’s ap-

plication software;

• Signifi cantly lowers the cost of

future replacement; and,

• Employs an adaptive intrinsic

security mode.

Further, the fruits of this effort

should be applicable to both brown-

fi eld and greenfi eld facilities as well

as a commercially marketable system

(not exclusive to ExxonMobil) that is

applicable to all current DCS markets,

Bartusiak said.

Just substitute “process automa-

tion” for “avionics” and “chemical

plant” for “Army aircraft” in the

following statement on the FACE

website by Brigadier General Bob

Marion, program executive offi cer for

Army Aviation: “I see [FACE] as a vi-

able strategy for promoting competi-

tion and lowering barriers for prime

and third-party vendors to insert new

avionics technology into our Army

aircraft….[It] incentives modernization

and promotes competition by creating

opportunities for all potential avionics

suppliers.”

If you’re an end user of distrib-

uted control systems—or a supplier

of them reliant on existing business

models—it’s pretty easy to see both

the opportunity and the threat going

forward.




IIC, Industrie 4.0 cooperation comes to life in Bosch project

Connected industry has taken one more step toward

becoming an international reality. In a new project, Bosch

is working together with partners to combine the techni-

cal standards of Germany’s “Industrie 4.0” platform and of

the Industrial Internet Consortium (IIC). This combination of

the two approaches allows the exchange of data between

central areas of connected industry.

“Industry 4.0 is not so much a national as an internation-

al issue. Only a truly global approach—without competing

company standards or differing national regulations—will

allow it to develop to its full potential,” said Werner Struth,

a member of the Bosch management board, at the recent

Bosch ConnectedWorld IoT conference in Berlin. To date,

the lack of a common language has hindered the smooth

international coordination of manufacturing, logistics, and

building and energy management. “As we head towards

connected industry, two worlds are now coming together.

This is a major advance. A combination of these two

standards paves the way for numerous new cross-border

business opportunities for Industry 4.0 solutions, both for

Bosch and for other international companies,” Struth said.

OPTIMIZED PRODUCTION PLANNINGThe international industry conference in Berlin featured a

presentation of the project, which brings the two refer-

ence architectures – RAMI4.0 and IIRA – together for the

first time. In Bosch’s Homburg, Germany, plant, a number

of connectivity solutions are now combined to manage and

optimize hydraulic valve manufacturing so that it avoids

consuming electricity at particularly expensive peak times.

“This prototype demonstrates for the first time how we

can get the Industrie 4.0 platform standards and those of

the IIC to work together effectively in connected manufac-

turing,” said Struth, whose responsibilities on the Bosch

board of management include the Industrial Technology

business sector and the Bosch Production System.

COMMON STANDARDSIf all the energy-intensive machinery in Bosch’s Homburg

plant runs at the same time, this can lead to very high elec-

tricity consumption at peak times. The resulting increase in

electricity costs pushes up the cost of manufacturing the

hydraulic valves. By using software to manage produc-

tion and hence electricity consumption as effectively as

possible, energy demand can be optimized and peak loads

reduced by up to ten percent.

This reduces manufacturing costs and increases com-

petitiveness, while protecting the environment at the same

time. All this is made possible by interaction between the

production lines, which are based on the Industrie 4.0

platform, and the energy management system, which is

based on the IIC model. The Homburg project involves not

just Bosch but also, among others, SAP of Germany, Das-

sault Systèmes of France, and Tata Consultancy Services

(TCS) of India.

TWO APPROACHES, ONE GOALHenning Banthien, the Industrie 4.0 platform’s adminis-

trative director, said: “It’s very good news that the two

internationally leading initiatives in the field, the IIC and

Industrie 4.0 platform, have agreed to cooperate closely

in order to set up shared testbeds and work on common

architectures and standards. The complementary nature

of their approaches will greatly boost the development of

connected industry and the internet of things.” Richard

Soley, executive director of the IIC, added: “The Industrial

Internet Consortium and Industrie 4.0 platform have both

been working for years to accelerate the adoption of the

industrial internet of things, developing considerable ex-

pertise in the process. As we jointly announced recently, a

number of important factors are coming together to make

industrial IoT a reality.

At the Bosch plant in Stuttgart-Feuerbach, an “Active Cockpit” dash-

board is used to bring together and analyze data from many sources

related to ongoing production.


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n Don’t “rip-and-replace”—Maintain existing networks

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Device Interface Module



FROM THE EDITOR I o T P R E P A R E D N E S S

MPI Group study

distinguishes IoT

Innovators from

those slow to

realize digital

transformation’s

potential

HOW MANUFACTURERS

ARE PROFITING FROM THE

IoT

SI16Q1_16_21_FEATURE01.indd 16 3/28/16 12:09 PM


I o T P R E P A R E D N E S S

“�e Internet of �ings—a superhigh-way to the future of business—has finally opened,” says John Brandt, CEO of �e MPI Group, Inc., a thought leadership consultancy and research firm. “Unfortunately, most manufactur-ers don’t yet have a roadmap, and many can’t even find the entry ramp,” he says. Indeed, the MPI Group’s just released study indicates that most manufacturing companies have a limited understand-ing of the Internet of �ings (IoT) or its potential impact on their organizations.

Conducted in August and September 2015, the survey of 351 manufacturing companies was sponsored by Rockwell Automation, QAD and BDO, and was designed to evaluate the readiness of U.S. manufacturers to incorporate smart devices and embedded intelligence within their processes and products.

“We’re particularly interested in executives’ plans to improve business performance via the IoT—and for developing and selling products with embedded intelligence,” adds George Taninecz, MPI Group vice president of research. “�e study looks deeply into how manufacturers will leverage IoT capabilities along with the challenges they face.”

�e balance of this article includes a number of the key insights revealed by the research. For more information on the complete report, “Profiting from the Internet of �ings (IoT): How IoT Inno-vators Make It Happen—and What You Can Learn,” visit www.MPI-group.com.

INNOVATORS, INCIPIENTS AND INDIFFERENTSMany manufacturing companies have a limited understanding of the IoT or how to apply it to their businesses. In fact, poor understanding of IoT principles




and its potential implications was found to be highly correlated with a lack of best practices and poor perfor-mance measures.

Respondent were sorted into three groups based on their abilities to grasp, leverage and profit from the IoT (Figure 1):

• Innovators: These firms are leaders in intelligent manufacturing, and set the benchmarks for best practices and performance. A third of manufacturing companies have achieved this level of IoT under-standing—and how to apply it to their businesses.

• Incipients: These companies have a vision of how they could leverage the IoT, but still have a long way to go. Some 43% of manufacturers are stalled with limited awareness of the IoT’s potential.

• Indifferents: These organizations have no understand-ing of the IoT. Some are indifferent by design—will-fully ignoring a future that will soon pass them by—while others lack the resources to adopt an IoT strategy. About a quarter of all manufacturers are stuck here.

While Innovators are more bullish on the IoT than Incipients or Indifferents, executives at all types and sizes of companies believe that over the next five years the IoT will impact business in general (71%) as well as their own businesses (64%).

But when it comes to IoT strategy, Innovators are far

more likely to have developed and implemented strate-gies for applying IoT technologies to their own manu-facturing and business processes as well as for embed-ding IoT technologies into the products they sell. Many Incipients are in the planning stage, but Indifference runs deep: more than a third of all manufacturers say they have no plans (really?) to develop an IoT strategy for process or products.

Further, a good understanding of the IoT is a strong indicator of better operational performance. Two-thirds of innovators have fully achieved or made significant progress toward world-class manufacturing status. Indifferents, on the other hand, are also indifferent to manufacturing success; a whopping 73% have made—at best—only some progress toward world-class status.

INTELLIGENT PLANTS AND PROCESSESOverall, manufacturers have incorporated smart devices or embedded intelligence in 25% (median) of their production equipment and processes as well as non-production processes (e.g., back office). Yet 76% will in-crease the use of smart devices of embedded intelligence in production processes in the next two years; 66% will increase non-production IoT applications.

Shipping, warehousing and document management are seen as the best opportunities to leverage the IoT in operations (Figure 2).

FIGURE 2. PROCESSES THAT REPRESENT THE BEST OPPORTUNITIES TO LEVERAGE THE IOT (% OF MANUFACTURERS)

Excellent opportunity Good opportunity Fair opportunity No opportunity

Shipping/logistics/transportation 27% 36% 22% 15%

Warehousing 22% 36% 21% 20%

Document management 22% 41% 22% 15%

Assembly 18% 28% 27% 26%

Packaging 18% 29% 27% 27%

Additive manufacturing 9% 21% 23% 48%

Fabrication/stamping 7% 24% 20% 49%

Welding 6% 14% 24% 56%

Heat-treating 6% 13% 20% 62%

Plating or painting 4% 16% 19% 61%

Other 5% 9% 8% 78%

FIGURE 1. COMPANY UNDERSTANDING OF IoT AND HOW TO APPLY IT TO THEIR BUSINESS (% OF MANUFACTURERS)

Innovators Significant (5%) or some (28%) companywide understanding of IoT 33%

Incipients Limited companywide understanding of IoT 43%

Indifferents No companywide understanding of IoT 24%


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The top five objectives for incorporating smart devices or embedded intelligence into operations are to:

• Improve product quality (58%)• Increase speed of operation (57%)• Decrease manufacturing costs (57%)• Improve maintenance/uptime (47%)• Improve information for business analytics

(42%)The top five IoT capabilities that present the

biggest challenges are:• Identifying opportunities/benefits of the

IoT (44%)• Network capabilities to handle the IoT

(38%)• Budget/resources to develop or expand the

IoT (37%)• Incorporating smart devices or embedded

intelligence (37%)• Adapting existing technologies (36%)Few manufacturers have the network infra-

structure to accommodate IoT machine-to-machine (e.g., sensors in one machine trigger actions of another machine) or machine-to-en-terprise communications (i.e., machine sensors send data to corporate business systems). Many manufacturers will require major upgrades or overhauls for either (Figure 3).

Effective use of the IoT requires more than just technology: operations technology (OT) staff need to collaborate with information technology (IT) staff. Yet most OT and IT de-partments don’t currently work together much (Figure 4).

Other top-level findings relevant to organiza-tional applications of IoT technology:

• Only 30% of study participants think that security is an IoT challenge. Roughly half have implemented, developed or are con-

Profile of Study Participants

Some 60% of the 351 manufacturers participating in the

MPI Internet of Things Study are private companies. A large

majority (84%) have been in business for more than 20 years.

Participants represent a range of annual revenues: 35% have

revenues of $50 million or less, while another 36% have rev-

enues that exceed $1 billion.

The top five industries in the study are:

• Machinery manufacturing (21%)

• Food manufacturing (14%)

• Fabricated metal product manufacturing (12%)

• Chemical manufacturing (11%)

• Electrical equipment, appliance, and component manufac-

turing (11%)

Almost all participants had facilities in the United States

(96%), and more than one-quarter had facilities in Europe (43%).

Respondents also had facilities in Asia, not including China

(32%); China (31%); Mexico (30%); and Canada (28%).

For more information on the complete MPI study, “Profiting

from the Internet of Things (IoT): How IoT Innovators Make It

Happen—and What You Can Learn,” visit www.MPI-group.com.

FIGURE 3. CURRENT CAPABILITY OF NETWORK INFRASTRUCTURE (% OF MANUFACTURERS)

Machine-to-machine

communications

Machines-to-enter-

prise communications

Currently capable

10% 13%

Some upgrades

required41% 38%

Significant up-

grades required32% 35%

Network over-

haul required18% 14%

FIGURE 4. COLLABORATION AMONG INFORMATION TECHNOLOGY STAFF AND OPERATIONS TECHNOLOGY STAFF (% OF MANUFACTURERS)

Resolving technical operations issues 53%

Network security 50%

Upgrading legacy operations systems 45%

Upgrading legacy enterprise systems 45%

Linking operations data with business analytics 45%

Resolving technical enterprise issues 37%

Other 1%

No collaboration 8%



I o T P R E P A R E D N E S S

FIGURE 6. TYPES OF PRODUCTS THAT REPRESENT THE BEST IOT OPPORTUNITIES (% OF MANUFACTURERS)

Excellent opportunity Good opportunity Fair opportunity No opportunity

Our company’s finished products

28% 31% 20% 21%

Technologies for other manufacturers’ products

10% 19% 25% 47%

Devices for other manufacturers’ products

9% 20% 23% 48%

Software for other manufacturers’ products

8% 18% 21% 53%

Materials for other manufacturers’ products

4% 19% 23% 53%

Fluids/substances for other manufacturers’ products

2% 13% 22% 63%

sidering a BYOD (bring your own device) policy for non-corporate devices (e.g., smartphones) in plants.

• Operations leadership is most likely to lead an IoT strategy (26%), followed by a cross-functional leader-ship structure (19%) or IT leadership (17%).

• About two-thirds of manufacturers have invested 2% or less of sales in implementing the IoT. Yet 77% of manufacturers expect to increase investments in the next two years.

• Roughly two-thirds of manufacturing executives believe that the application of the IoT to plants and processes will increase profitability over the next five years.

INTELLIGENT PRODUCTSThe IoT also holds the potential to transform manufac-turers’ businesses through the inclusion of connectivity in manufactured products. A substantial portion (40%) of manufacturers indicate they have plans to embed smart devices in their products (Figure 5). Further, the most promising opportunity identified by manufacturers is in the creation of finished goods (Figure 6).

Manufacturing executives surveyed believe that em-bedding smart devices or intelligence will:

• Increase revenue from new products (39%)• Increase market share (39%)• Access data from products or services in the field

(34%)• Increase profit margins per product (34%)• Improve branding/market awareness (27%)• Access new markets/sectors (26%)The top five challenges faced by companies pursuing

IoT-enabled products are:• Identifying opportunities/benefits of IoT-enabled

products (44%)• Clear understanding of customer needs/value (36%)• Technologies needed to embed smart devices into

products (35%)• Budget/resources to develop IoT-enabled products

(32%)• How/where to get started with IoT-enabled products (29%)About three-fourths of manufacturers have invested

2% or less of sales in embedding IoT technologies in products. But more investment is likely: 67% of manu-facturers expect to increase investments in the next two years. Roughly 63% manufacturers believe that applying the IoT to products will increase profitability over the next five years.

FIGURE 5. COMPANY EFFORT TO EMBED SMART DEVICES AND/OR INTELLIGENCE IN PRODUCTS (% OF MANUFACTURERS)

Significant focus of our product innovation plans 14%

Some plans to embed smart devices in products 26%

Limited plans to embed smart devices in products 30%

No plans to embed smart devices in products 30%



The World Economic Forum’s IT Governors launched its Industrial Internet initiative at the orga-nization’s Annual Meeting 2014 in Davos, Switzer-land. Over the course of the following eight months, the project team developed a guiding framework and conducted a series of research activities, including in-person workshops, virtual working group ses-sions, interviews of key thought leaders, and a survey of innovators and early adopters around the world. The resulting Industry Agenda report, produced in collaboration with Accenture, is entitled “Industrial Internet of Things: Unleashing the Potential of Con-nected Products and Services.” The 40-page report can be downloaded in its entirety from the World Economic Forum website at http://www.weforum.org/reports/industrial-internet-things.

The report makes our Required Reading on the Industrial IoT list for its concise and comprehensive rendering of the how the Internet of Things revolu-tion that has already reshaped business-to-consumer industries will dramatically alter manufacturing, en-ergy, agriculture, transportation and other industrial sectors of the economy over the next 10 years. These industries account for nearly two-thirds of the global gross domestic product (GDP), the report notes.

This latest wave of technological change will bring unprecedented opportunities, along with new risks, to business and society, the report contends. It will combine the global reach of the Internet with a new ability to directly control the physical world, includ-ing the machines, factories and infrastructure that define the modern landscape. However, like the Internet was in the late 1990s, the Industrial Internet

is currently in its early stages. Many important ques-tions remain, including how it will impact existing industries, value chains, business models and work-forces, and what actions business and government leaders need to take now to ensure long-term success.

The report’s authors argue that the Industrial Internet

is indeed transformative. It will change the basis of com-petition, redraw industry boundaries and create a new wave of disruptive companies, just as the current Internet has given rise to Amazon, Google and Netflix. However, the vast majority of organizations are still struggling to understand the implications of the Industrial Internet on their businesses and industries. For these organizations, the risks of moving too slowly are real.

Further, disruption will come from new value creation made possible by massive volumes of data from connected products, and the increased ability to make automated decisions and take actions in real time. The key business opportunities will be found in four major areas:

• Vastly improved operational efficiency (e.g., im-

Unleashing the potential of connected products and servicesWorld Economic Forum report traces the emergence of the Industrial Internet of Things and the

THE INDUSTRIAL INTERNET WILL CHANGE THE BASIS OF COMPETITION, REDRAW INDUSTRY BOUNDARIES AND CREATE A NEW WAVE OF DISRUPTIVE COMPANIES

T H E B I G P I C T U R E



FROM THE EDITOR

proved uptime, asset utilization) through predic-tive maintenance and remote management

• The emergence of an outcome economy, fueled by software-driven services; innovations in hard-ware; and the increased visibility into products, processes, customers and partners

• New connected ecosystems, coalescing around software platforms that blur traditional industry boundaries

• Collaboration between humans and machines, which will result in unprecedented levels of pro-ductivity and more engaging work experiences

RISE OF THE OUTCOME ECONOMY As the Industrial Internet gains broader adoption, businesses will shift from products to outcome-based services, where businesses compete on their ability to deliver measurable results to customers. Such out-comes may range from guaranteed machine uptimes on factory f loors, to actual amounts of energy savings in commercial buildings, to guaranteed crop yields from a specific parcel of farmland.

Delivering such outcomes will require new lev-els of collaboration across an ecosystem of business partners, bringing together players that combine their products and services to meet customer needs. Software platforms will emerge that will better facili-tate data capture, aggregation and exchange across the ecosystem. They will help create, distribute and monetize new products and services at unprecedented speed and scale. The big winners will be platform owners and partners who can harness the network ef-fect inherent in these new digital business models to create new kinds of value.

The report’s authors also propose that the Indus-trial Internet will drive growth in productivity by presenting new opportunities for people to upgrade skills and take on new types of jobs that will be cre-ated. An overwhelming majority of executives we sur-veyed believe that the growing use of “digital labor” in the form of smart sensors, intelligent assistants and robots will transform the skills mix and focus of tomorrow’s workforce.

While lower-skilled jobs, whether physical or cognitive, will be increasingly replaced by machines over time, the Industrial Internet will also create new, high-skilled jobs that did not exist before, such as medical robot designers and grid optimization en-gineers. Companies will also use Industrial Internet technologies to augment workers, making their jobs safer and more productive, f lexible and engaging. As these trends take hold, and new skills are required, people will increasingly rely upon smart machines for job training and skills development.

To realize the full potential of the Industrial Inter-net, businesses and governments will need to over-come a number of important hurdles. Chief among them are security and data privacy, which are already rising in importance given increased vulnerabili-ties to attacks, espionage and data breaches driven by increased connectivity and data sharing. Until recently, cybersecurity has focused on a limited num-ber of end points. With the advent of the Industrial Internet, these measures will no longer be adequate as the physical and virtual worlds combine at a large scale. Organizations will need new security frame-works that span the entire cyber physical stack, from device-level authentication and application security,

BUSINESS WILL SHIFT FROM PRODUCTS TO OUTCOME-BASED SERVICES, WHERE THEY COMPETE ON THEIR ABILITY TO DELIVER MEASURABLE RESULTS TO THEIR CUSTOMERS

T H E B I G P I C T U R E



to system-wide assurance, resiliency and incidence response models.

Another crucial barrier is the lack of interoperabil-ity among existing systems, which will significantly increase complexity and cost in Industrial Internet deployments. Today’s operational technology systems work largely in silos.

However, in the future, a fully functional digital ecosystem will require seamless data sharing between machines and other physical systems from different manufacturers. The drive towards seamless interoper-ability will be further complicated by the long life span of typical industrial equipment, which would require costly retrofitting or replacement to work with the latest technologies.

In addition, other notable barriers and risks include uncertain return on investments on new technolo-gies, immature or untested technologies, lack of data governance rules across geographic boundaries and a shortage of digital talent. Overcoming these challeng-es will require leadership, investment and collabora-tive actions among key stakeholders.

RECOMMENDATIONS FOR STAKEHOLDERSTo seize near-term opportunities, capitalize on the long-term structural shift and accelerate the overall development of the Industrial Internet, the report recommends the following actions:

• Technology providers should begin to inven-tory and share best security practices, perhaps by establishing a global security commons. They

should participate in the development of technol-ogy test-beds to demonstrate how solutions from different organizations can work together. And they need to focus on brownfield innovation1 to support existing equipment in the field, and raise the market awareness on successful use cases and implementations.

• Technology adopters should first reorient their overall business strategy to take full advantage of the latest developments in the Industrial Internet. They also need to identify their new ecosystem

partners, and determine whether they should join a partner’s platforms or develop their own. Com-panies that still are new to the Industrial Internet should identify one or two relevant pathfinder applications that can be piloted within the next six months to create necessary momentum and learning.

• Public policy-makers must re-examine and update their data protection and liability poli-cies to streamline transborder data f low. They also need to revisit the current regulations on such industries as utilities and healthcare to encourage investment and the adoption of new digital processes. In emerging markets, govern-ments will need to increase investment in digital infrastructure (e.g. embedded sensors, broadband connectivity) to take advantage of the leapfrog-ging potential of the Industrial Internet in ac-celerating regional economic development. And policy-makers need to learn more about societal and policy implications of the Industrial Inter-net, and function as role models in advocating and supporting high-potential applications such as smart cities.

• All stakeholders need to work together in three important areas. Industries, governments and academia need to collaborate on long-term R&D to solve fundamental technology challenges related to security, interoperability and manage-ment of systemic risks. They need to conduct joint lighthouse projects to demonstrate the real

benefits and raise the profile of the Industrial Internet among the general public. They also need to implement new training programs, and provide policy incentives to employers and work-ers to encourage reskilling for high-demand job categories.

The World Economic Forum report “Industrial Internet of Things: Un-

leashing the Potential of Connected Products and Services” can be

downloaded in its entirety from the World Economic Forum website

at http://www.weforum.org/reports/industrial-internet-things.

A FULLY FUNCTIONAL DIGITAL ECOSYSTEM WILL REQUIRE SEAMLESS DATA SHARING BETWEEN MACHINES AND OTHER PHYSICAL SYSTEMS FROM DIFFERENT MANUFACTURERS


ACCELERATEYOUR DIGITAL

TRANSFORMATION

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Gain insights from leading industry technologists, early manufacturer adopters and solution providers who are creating and implementing new technology and standards for the journey ahead

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ACCELERATEYOUR DIGITAL

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“Very insightful business and technical level presentations.”

“I was impressed with the lineup of presenters and subject matter.”

“You can see what one of your colleagues is doing and you can adapt that for your own purposes, so it’s really a great way to accelerate growth and opportunity.”

98% satisfaction rate 9 out of 10 attendees recommend this event

to their colleagues

98% of attendees plan to attend in 2016


WHAT PAST ATTENDEES HAVE TO SAY

“Smart Industry brings together people from di�erent segments of the industry...and it’s free flow of ideas.”


See the latest technologies being demonstrated

Learn about industrial applications, IT/OT convergence, cloud & mobility, and emerging technologies

Hear digital transformation strategies from influential keynoters and manufacturers further along on their transformation journey

Discover the up-and-coming technologies during our start-up competition

Connect with experts during roundtables and networking receptions

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The fourth industrial revolution—characterized by the in-creasing digitization and interconnection of products, value chains and business models—has arrived in the industrial sector, write the Munich-based authors of the Strategy& report, “Industry 4.0: Opportunities and Challenges of the Industrial Internet.”

The report makes our Required Reading on the Industrial IoT list for the regional perspective it adds to otherwise glob-al trends in technology development and adoption. Indeed, more so than any other country, Germany realized early on that the digital transformation of industry represents an op-portunity and challenge of strategic national importance.

Based on a survey of 235 German industrial companies—including manufacturing and engineering, automotive and process industries, as well as the electronics and electrical systems and information and communications firms—the full 52-page study can be downloaded in full at http://www.strategyand.pwc.com/reports/industry-4-0.

Clearly, survey respondents see the digital transformation of their organizations as critical to future success. But the transformation will be neither cheap nor easy. They estimate the share of investments in Industry 4.0 solutions will ac-count for more than 50% of planned capital investments for the next five years. German industry will thus invest a total of €40 billion in Industry 4.0 every year until 2020. Apply-ing the same investment level to the European industrial sector, the annual investments will be as high as €140 billion per annum, the report estimates.

The first significant driver for the advance of industrial internet solutions lies in the opportunity to integrate and better manage horizontal and vertical value chains, write the report’s authors. Companies surveyed expect more than 18% higher productivity over the next five years. While today only one fifth of the industrial companies have digitized their key processes along the value chain; in five years’ time, 85% of companies will have implemented Industry 4.0 solu-

tions in all important business divisions. The digitization and interconnection of products and

services (internet of things/services) is a second important driver. It will contribute strongly to ensuring competitiveness and promises additional revenues of 2% to 3% per year on average. When applied to the German industrial landscape as a whole, additional revenues reach up to €30 billion per year. For the European industry sector, additional revenues amount to €110 billion annually.

A third major driver are the newly emerging, often disrup-tive, digital business models that offer significant additional value to customers through tailor-made solutions. These new business models are characterized by a considerable increase of horizontal cooperation across the value chains, as well as the integrated use and analysis of data. They are therefore capable of better fulfilling customer requirements.

The various opportunities, the large extent of change and the elevated need for investments make the industrial inter-net one of the most important topics for corporate manage-ment. However, the numerous challenges that the transition entails are also not to be underestimated. Besides the partly still unclear business cases for the industrial internet at com-pany level, industry standards have to be defined and agreed upon and questions need to be answered, for example, in the area of data protection. The respondents also consider the required qualification of employees at increasingly digitized companies to be a major obstacle.

The report also distills its 52-pages of detailed discussion into the following 10 findings:

1. The industrial internet transforms the entire compa-ny and must be part of the CEO agenda. Industry 4.0 not only comprises the digitization of horizontal and ver-tical value chains but will also revolutionize the product and service portfolio of companies—with the ultimate goal of better satisfying customer needs. The potential

Industry 4.0: A European perspectivePwC’s Strategy& consultancy surveyed 235 German industrial companies to arrive at this portrait

of the essential attributes, opportunities and challenges of the fourth industrial revolution

I N D U S T R Y 4 . 0



uses of the industrial internet go far beyond the optimi-zation of production technologies. However, exploiting these opportunities requires considerable investment. The topic therefore inevitably occupies a leading position on the agenda of directors and managers of industrial companies.

2. By 2020, European industrial companies will invest

€140 billion annually in industrial internet applica-tions. Over the next five years, the industrial companies surveyed will invest, on average, 3.3% of their annual revenues in industrial internet solutions. This is equivalent to nearly 50% of the planned new capital investments and an annual sum of more than €140 billion with regard to the European industrial landscape.

3. In five years, more than 80% of companies will have digitized their value chains. One quarter of the compa-nies surveyed have already achieved a high degree of digi-tization of their value chains. However, it is mostly only individual units and isolated applications that have been automated and digitized thus far. The companies expect that 86% of the horizontal and 80% of the vertical value chains will have a high degree of digitization by 2020.

4. The industrial internet increases productivity and

resource efficiency—an 18% increase in efficiency within five years. The industrial sector is required to produce ever larger quantities using fewer raw materi-als and less energy. The industrial internet allows higher productivity and resource efficiency and thus creates the conditions for sustainable and efficient production. The companies surveyed anticipate an average efficiency increase of 3.3% per year across all industry sectors due to the digitization of value chains.

5. The integrated analysis and use of data are the key ca-pabilities for the industrial internet. Already today the efficient analysis and use of data is of great significance for half of all companies surveyed. Moreover 90% of compa-nies believe that the ability to analyze data will be decisive to their business model in five years. These companies primarily focus on the efficient exchange of data within their own value chain, the digital labelling of the products and the use of real time data to steer their production.

6. Digitization of the product and service portfolio is the key to sustainable corporate success. Thirty percent of the companies surveyed have already digitized their products to a great extent and expanded their portfolio to include connected and automated services. A mechanical-ly perfect product will no longer be enough to successfully withstand international competition. More than four out of five respondents—with the exception of the process industry—therefore expect that they will have achieved a high degree of digitization of their product and service portfolio within five years.

7. Digitized products and services generate approxi-mately €110 billion of additional revenues per year for European industry. Companies which have already digitized their product portfolio to a great extent have grown above average in the past three years. Half of the companies surveyed anticipate double-digit growth in the next five years due to the intensified digitization of their product and service portfolio. One in five companies even expects sales to rise by more than 20%. In total, this amounts to an average, incremental sales increase of 2.5% per annum. Compared to all industrial companies in the five core industry sectors, this is equivalent to an annual sales potential of more than €30 billion for Germany.

8. The industrial internet paves the way for new, often disruptive digital business models. The industrial inter-net will have a lasting effect on existing business models and will also generate new, digital—often disruptive—business models. The focal point of this trend comprises increasing customer benefits through a growing range of value solutions (instead of products) and increased net-working with customers and partners. The special quality of the digital change lies in the rapid acceleration of the speed of change.

9. Horizontal co-operation allows for improved satisfaction of customer needs. About half of all companies surveyed are already convinced that closer cooperation with value chain partners — combined with increased horizontal interconnection—is of great significance. The importance of this will further grow in the context of Industry 4.0 in light of increased digitization—particularly where new, digital business models have to be established. More than 80% of the companies surveyed believe that closer co-operation and a more vigorous horizontal connection of value chains will play an important role in five years.

10. The industrial internet holds various challenges—policy-makers and industrial associations can help. Companies have to master several challenges on the way to becoming a Digital 4.0 champion. The main focus is on high investment levels and often unclear business cases for new industrial internet applications. Furthermore, sufficient skills to meet the needs of the digital world must be ensured. Bind-ing standards must also be defined and tasks in the area of IT security have to be solved. Policy-makers and industrial associations can help with these lat-ter challenges in particular, by advocating uniform industrial standards at a European or international level and promoting efficient rules for data security and data protection.

The Strategy& report, “Industry 4.0: Opportunities and Challenges of the

Industrial Internet,” can be downloaded in its entirety from the compa-

ny’s website at: http://www.strategyand.pwc.com/reports/industry-4-0.



FROM THE EDITOR

Although the Industrial Internet Reference Archi-tecture (IIRA) was ostensibly created to help system developers communicate more clearly with one another, it makes our Required IIoT Reading list for its articulate and thorough development of a common vernacular to describe elements of Industrial Internet systems and the relationships among them.

“For the Internet of Things to reach the predicted install base of 50 billion things by 2020, developers need to be able to connect and scale systems quickly,” said Shi-Wan Lin, co-chair of the Industrial Internet Consortium Technology Working Group and princi-pal engineer with the Strategy and Technology Office, Internet of Things Group, Intel, upon release of version 1 last year. “The Industrial Internet Reference Architec-ture has broad applicability across industrial and other IoT systems to drive that scalability and interoperabil-ity within the industry.” The full 102-page document is available for download at the Industrial Internet Consortium’s website at http://www.iiconsortium.org/IIRA.htm.

The Industrial Internet Reference Architecture helps place existing and emerging standards into a common structure, making it easier to quickly identify gaps that need to be filled to ensure interoperability between components. “As a global, non-standard-setting organiza-tion, we see this as another step towards achieving global standards through collaboration,” added Stephen Mellor, chief technology officer, Industrial Internet Consortium.

The Reference Architecture document outlines key characteristics of Industrial Internet systems, various viewpoints that must be considered before deploying an Industrial Internet solution, and an analysis of key

concerns for the Industrial Internet including security and privacy, interoperability, and connectivity.

IMPROVISE AND OVERCOMEOf particular note are the IIRA’s forward-looking descriptions of increasingly capable systems that are not only integrable but interoperable and ultimately com-posable, revealing both the challenge and potential of next-generation IIoT solutions. Take, for example, the topic of resiliency and the document’s development of a military command-and-control metaphor that follow.

Resilience is more than just recovering quickly from

pressure, the report’s authors write. To be resilient is to be able to take “bitter circumstance in stride” and still “get the job done.” It might cost more or not be done as well had less (intentional or unintentional) adversity been present, but it will be done. Resilience is a superset of fault tolerance—and very much related to autonomic computing notions of self-healing, self-configuring, self-organizing and self-protecting.

No other institutions are more involved directly in bitter or adversarial circumstances than the military. No other institutions have a greater dependence on

THE IIRA HELPS PLACE EXISTING AND EMERGING STANDARDS INTO A COMMON STRUCTURE, MAKING IT EASIER TO IDENTIFY GAPS

Reference Architecture lays foundation for the IIoTIndustrial Internet Consortium document provides a common language to enable faster

Industrial IoT development and a blueprint for standards development

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resilience of its organizations and operations to survive and to succeed. Therefore, the current thinking of the military on resilience and the lessons they have learned in the past will inform us on how to better effect resil-ience within Industrial Internet Systems (IISs).

Among the lessons to be learned by IoT system developers from military command-and-control structure and doctrine:

• Expect to be disconnected from authority. Mechanisms must be in place to allow the mission to succeed, so some level of decision making on the edge is a requirement. In an IIS, control elements for critical operations must not be dependent on network availability.

• Good decisions are not made in a vacuum. Com-municate commander’s intent so that units in the field understand how their actions fit the bigger picture. The ability to alter plans locally provides a lot more flexibility and resiliency. The implica-tion for IISs is that local control elements must know more than just their own part of the plan. They must have a bigger picture of what they are responsible for that allows them to reconfigure their operation and maintain mission-level performance when under stress.

• Peer-to-peer communication is more important than hierarchical communication. Changing plans and developing new tasks requires the discon-nected units to engage in all parts of command-and-control jointly with their neighbors so they can jointly succeed within the constraints of the com-mander’s intent. Once that intent (and an initial plan based on the strategically available resources) is communicated, little more needs to be said from

higher chain of command until the mission is completed. In IISs, this suggests that components must be autonomous, and able to act independently based on the plan and information from other inde-pendently operating components nearby.

• Take advantage of the hierarchical network to optimize all parts of command-and-control. Do not use the connectivity, when available, to centralize decision making but distribute informa-tion to ensure that whole network becomes aware of changes to local plans so they can get an early start on changing too. In IISs, this suggests that components must be aware of the behavior of other components. Build a system that does not need the network to work—it only needs it to optimize. This is a given in the ‘fog of war.’ In IISs, this partly fol-lows from being able to run disconnected. How-ever, some functions such as safety, should never be compromised just because of a network failure.

“The Industrial Internet Reference Architecture is an important first step toward establishing new IoT capabilities in the industrial space,” says Bradford Miller, senior scientist at GE and co-chair of the IIC Technol-ogy Working Group. “With the IIRA, we are creating new ways to organize industrial applications that move toward a usage-driven, rather than a design-driven ap-proach. We believe collaboration is essential to achiev-ing Industrial Internet success, and organizations like the IIC help drive best practice sharing through global partnerships with industry leaders.”

The Industrial Internet Consortium’s Industrial Internet Reference

Architecture can be downloaded in its entirety from the IIC website

at: http://www.iiconsortium.org/IIRA.htm.

INDUSTRIAL INTERNET SYSTEM COMPONENTS MUST HAVE A BIG PICTURE VIEW THAT ALLOWS THEM TO RECONFIGURE THEIR OPERATION AND MAINTAIN MISSSION-LEVEL PERFORMANCE WHEN UNDER STRESS

A R C H I T E C T U R E


“Within a given enterprise are operational technology systems and information technology systems. Both tech-nologies and each set of systems were purpose-built, and neither was designed to work with the other.”

So begins an essential section of the Opto 22 white pa-per, “Your IoT Primer: Bridge the Gap between OT and IT.” It made our Required Reading on the Industrial IoT list for its highly accessible narrative on the parallel evo-lution of operational technology (OT) and information technology (IT) systems, together with an approachable exploration of the standards, protocols and tools emerg-ing as primary players in a flattened, converged architec-ture that brings both world together. The white paper is excerpted below; to download the eight-page document in its entirety search “IoT” at http://www.opto22.com.

Both OT and IT function within the enterprise to create output (goods and services), the report continues. To create output most efficiently, they need to work together. But in today’s enterprise, there’s a significant communication gap between OT and IT technologies. Each uses its own methods of connectivity, from the physical connectors and buses that data rides on, to the language each uses to convert bits and bytes into human readable and actionable information. Designed years ago, OT and IT technologies remain far apart today.

During a recent keynote address at the Smart Industry 2015 conference, Richard Soley, executive director of the Industrial Internet Consortium, pointed out that ladder logic diagrams for PLCs used in discrete manufacturing in 1980 are very much like the ones used today. “Worse, though it’s got an Internet port on it now, it doesn’t con-nect to the IT infrastructure of the plant.”

Why not?

CONNECTIVITY COMES FIRSTFor decades, industrial products have been designed for long life. As a result of this long lifecycle, industrial de-vices installed today use varied physical communication layers, mostly proprietary to their industry. For example, you may have a variable frequency drive on a serial network, a proportional valve on FOUNDATION fieldbus, and a proximity sensor on DeviceNet, each a different physical network.

One of the first steps in connecting legacy industrial

systems to the IoT is to provide some type of conversion from these application-specific physical buses to open, ubiquitous physical interfaces such as Ethernet and wireless. We’ll also need to aggregate smaller, simpler devices like non-networkable sensors or electric circuits into a networked gateway device, in order to transmit the sensor- level signals onto standard network interfaces and then into the primary Internet communications proto-col: TCP/IP.

As a result of the purpose-built, application-specific nature of manufacturing and automation systems, the vast majority of devices found on the plant floor today use their own custom and often proprietary protocols to

Bridge the gap between OT and ITThe convergence of operational and information technologies doesn’t have to be like merging

rocket science with brain surgery. Here’s how off-the-shelf tools are enabling the Industrial IoT

I T/ O T C O N V E R G E N C E

CONVERGENCE WILL DEMAND A FLATTENED ARCHITECTURE AND SEAMLESS COMMUNICATION


meet application requirements.While a custom protocol can be useful in a single

given application, for example closed-loop process con-trol, it creates yet another hurdle in accessing the data required to realize the benefits IoT offers.

In contrast to OT, IT enterprise networks use the same open standards and protocols found on the Internet. The Internet was founded on open communication standards like TCP/IP. Application-specific protocols are layered on top: HTTP/S, SMTP, SNMP, MQTT, and so on.

The Internet uses programming languages like Java-Script, Java, and Python and presents information using technologies like HTML5 and CSS, all of which are open. To realize the promise of the Internet of Things, OT and IT technologies must converge, allowing con-nection and communication.

Perhaps in the short run, OT and IT can converge

using solutions such as protocol gateways, OPC serv-ers, and middleware. In the long run, however, OT/IT convergence will demand a flattened architecture and seamless communication between assets, using open, standards-based communication protocols and program-ming languages.

IOT AT THE EDGEAs of today, billions of “things” already are connected to the Internet, and their numbers are growing at a 30% clip. And all of these devices are generating data. Zettabytes of data. But is it useful data? And are modern networking technologies up to the task of moving that much data across the Internet?

The IoT is going to produce increasingly massive amounts of raw data from billions of sensors, actuators, and devices. How do we sort through the data to filter out what we need—to turn it into actionable information?

The answer lies in edge computing. The majority of

IoT devices will be connected at the edge of the network, the place where OT and IT physically converge. The data that OT devices generate must be mined for what is useful to the enterprise and forwarded to cloud comput-ing systems for big-data analysis; useless data must be discarded to reduce bandwidth requirements and noise.

Unfortunately, most of today’s OT assets like indi-vidual sensors and machines don’t have the computing power required to process and filter the data they gener-ate. More intelligent OT assets like PLCs tend to focus on single-task automation functions and have not been designed to share that manufacturing data with other systems. So the current IoT requires third-party systems that act as data brokers between OT and IT assets.

GIVE IT A RESTThe real vision of OT/IT convergence is for autonomous and direct communication—for assets, things, nodes, and servers to communicate directly with each other without the need for protocol gateways, OPC servers, and middleware. To enable direct asset-to-asset or thing-to-thing communication and truly bridge the OT/IT gap, manufacturers will push intelligence down directly into OT assets and enable those assets with IT commu-nication capabilities, protocols, and languages.

We already see increased device capabilities as OT assets are beginning to be developed from the ground up with IoT applications in mind. Over time, we’ll see not only communication technologies but also increased intelligence, allowing assets on the edge to interpret and filter their own data into information, and then expose it via standard formats documented as web APIs.

To fully realize the benefits IoT has to offer, OT assets will need to be designed with web technologies built directly into them. These RESTful architectures leverage HTTP for interaction, SSL/TLS encryption and authen-tication for data security, and JSON for data format. They’re available today, and destined for an Internet of Things application near you.

The eight-page white paper, “Your IoT Primer: Bridge the Gap between

OT and IT,” can be downloaded in its entirety at the Opto 22 website.

Just enter “IoT” in the search box at http://www.Opto22.com.

OT ASSETS WILL NEED TO BE DESIGNED WITH WEB TECHNOLOGIES BUILT DIRECTLY INTO THEM

I T/ O T C O N V E R G E N C E


S P O N S O R E D C O N T E N T I D E A S E X C H A N G E


It takes an ecosystemTen solution providers offer their unique perspectives on digital transformation

If there’s one thing that advocates of this new age of digital

transformation agree upon, it’s that no one technology

provider has all the elements that will be needed to realize

this emerging vision. And, just as no single company has the

complete solution, each has ideas that—taken together—

continue to advance the dialogue.

On the pages that follow, ten solution providers share

their views on the digital transformation of industry: the

challenges, the opportunities, and where their particular

expertise fits in. Read on to discover what these key tech-

nology providers have to offer, and how their ideas can help

advance your own organization’s vision. >>>

SI16Q1_35_IDEAS_EXCHANGE.indd 35 3/28/16 12:50 PM


FROM THE EDITOR I D E A S E X C H A N G E S P O N S O R E D C O N T E N T

The rapid explosion of sensors, ultra-low cost connectivity and data storage together with power-

ful analytics is transforming services and business models in the industrial sector. Implementing

this digital transformation is not a simple task. Even the best and most established companies

often underestimate the challenges in making an important transition in technology and business

model.

Keystone Strategy recently conducted in-depth research with 75 discrete and process manu-

facturing companies who attempted a Digital Transformation journey. When companies attempted

the transformation by themselves—cobbling together multiple software solutions, hardware, com-

munications, and cloud computing technologies to collect, process, and report on sensor data—

results were very poor.

The majority of projects took more than three years to complete. And, in spite of considerable

efforts, just 5% were achieving signifi cant business outcomes. Most only established a basic level

of “ping-response” with their connected devices and barely started reporting on backward-looking

questions (i.e. “what happened?”). Many were struggling with how to store and process this new

infl ux of data. Others described a one-step-forward-two-steps-back process where they began to

collect data only to realize that they were not capturing anything truly valuable to the business.

Clearly a go-it-alone approach is not an easy undertaking. Research has shown, however, that

platform adoption can drive massive new effi ciencies for traditional fi rms managing complex busi-

ness and technology transitions. Years of innovation research at GE have demonstrated the value

of software platforms to accelerate innovation and manage disruptive change.

GE has packaged its own billion-dollar Digital Transformation into Predix, the Industrial Internet

Platform. Organizations can now draw on GE’s broad experience and derive specifi c industrial

insights across diverse, conservative and highly regulated industrial sectors. More than a set of

technology building blocks that save time in building new solutions, the platform incorporates

decades of capability building, deep investments in asset and infrastructure optimization, and a

vibrant ecosystem of partners.

Naturally, a platform is not adopted in isolation. GE has distilled the best practices based on its

own experience into several important steps for getting started on the journey.

First, create your services transformation roadmap. Be honest with yourself, assess your current

level of maturity and develop a vision for new services that drive true business outcomes for your

customers and customers’ customers.

Second, build internal alignment and organize for transformation. Use your vision to create and

sustain support for separate resources, carved out from the traditional business and organized in a

cross functional team.

Third, assemble the right capabilities by role. Actionable insights require information that is

displayed in the right context to reduce time to action. A minimum viable team typically includes

product engineering to bring an existing products perspective, sales or product management to

provide a good proxy for the voice of the customer, and data scientists with the analytical capabil-

ity to structure analysis in a way that drives the right answers.

Fourth, engage your customers and key stakeholder groups. Share your roadmap and jointly

conduct data-driven experiments to test your hypotheses. Focus on quick hits and rapid iterations

vs. a big bang approach. Rapid feedback is essential. Minimize the scope and time it takes to run

experiments and start delivering outcomes to your customers.

Although many fi rms are struggling with the challenge, platform adoption can accelerate innova-

tion and enable traditional enterprises to manage this kind of highly disruptive transformation.

Your digital transformation: What’s stopping you?

MARK BERNARDO

Professional Services,

Americas Leader

GE Digital

For more information:

ge.com/digital/predix

(855) YOUR1GE

SI16Q1_SPONSORED_CONTENT.indd 36 3/28/16 1:00 PM



The latest buzzwords in the automation industry are the Industrial Internet of Things (IIoT) and

Industry 4.0. What do these mean and how can I get compatibility? The industry has many

different defi nitions, but it’s basically the ability of your automation application to completely

harness all of the data, statistics and information created by your process—including diagnos-

tics, production tracking data, and all of the intelligence gathered via the plethora of sensors

and devices—then collect and store this material for analysis to further improve your automa-

tion application, increase effi ciency and enrich your bottom line. Then, how do you get all of that

information and material to a central location for analysis? The answer is via the CC-Link Partner

Association’s family of networks, including CC-Link IE.

CC-Link IE is an industrial Ethernet network with an unprecedented 1GB data transfer speed

(10 times faster than other industrial Ethernet networks). It’s the only industrial Ethernet network

to operate at this technological leading edge. CC-Link IE Field, in particular, provides extremely

fast and inherently deterministic communication from the fi eld/sensor/actuator level to the

control level of a manufacturing or process operation. The 1GB speed provides unmatched data

bandwidth to support complex

control applications as well as

transmitting large amounts of

device diagnostic information and

production tracking data – meet-

ing all of the needs necessary to

get Industrial IoT and Industry 4.0

functionality.

CC-Link IE Field’s speed and

throughput provide the abil-

ity to transfer large volumes of

data, enabling high performance

fi eld devices to reach their full

potential. With the ability to

transfer large amounts of traceability data, systems capable of highly-detailed diagnostics and

data tracking can be constructed. CC-Link IE Field’s total bandwidth is divided between cyclic

(deterministic) communication and transient (non real-time message) communication. The cyclic

communication band is fi xed and will not suffer from degraded performance even when large

volumes of traceability and diagnostic data are transferred via transient message communica-

tion. The scope of the cyclic communications includes I/O Control, Safety Operation, Motion

Control and Energy Management transmissions. Since CC-Link IE Field is IEC approved for safety

communications, the network can provide safety operation, coordinated motion control, stan-

dard I/O control and energy management functions all on a single industrial Ethernet network:

“One Flat Network.” CC-Link IE provides enough bandwidth for full control as well as providing

potential for growth into the future for IIoT and Industry 4.0.

In addition to CC-Link IE, the CC-Link family includes fi eldbus and safety networks CC-Link

and CC-Link Safety. This ‘Family of CC-Link Networks’ is ideally suited for machine automation,

cell or process control in a wide variety of industries. The CC-Link networks are a family of open

and deterministic industrial automation networks that provide effi cient, integrated factory-wide

industrial and process automation. CC-Link provides high speed, deterministic communication

seamlessly linking a wide assortment of multi-vendor automation devices.

Industrial Ethernet at gigabit speed: Bandwidth for tomorrow’s IIoT applications today

ROBERT MILLERDirector, CC-Link

Partner Association -

Americas


CCLinkAmerica.org

(847) 478-2647

“ WITH THE ABILITY TO TRANSFER LARGE AMOUNTS OF TRACEABILITY DATA, SYSTEMS CAPABLE OF HIGHLY-DETAILED DIAGNOSTICS AND DATA TRACKING CAN BE CONSTRUCTED.”




It has been referred to as many things: The connected factory, Industry 4.0, Industrial Internet

of Things, Mechatronics. It is the future of manufacturing, and it is advancing rapidly. The ability

to connect the design process to all aspects of production is ground zero in keeping pace with

these changes.

While upgrading your tools is an expenditure you’d rather put off, there is a solid business

case for transitioning now to high-functioning, computer-aided engineering (CAE) software built

on a database platform. Such a system will pay for itself in time and labor efficiencies, often in

the first year.

WHY DATABASE-DRIVEN SOFTWARE?Data is the fuel that propels today’s design and manufacturing environment. With digital design,

it makes sense to build a system that ties in directly to that fuel source and leverages it for ad-

ditional gain. In electrical engineering, traditional computer-aided design (CAD) software can’t

share data, which necessitates a great deal of manual (and redundant) data entry, cross-ref-

erencing and error-checking. For example, with CAD, once you create the graphical elements,

you need to put together a table-based parts list in another tool. Most engineers use Microsoft

Excel. This is a low-value use of an engineer’s time and carries a very high risk of data-entry er-

rors. Today’s advanced electrical CAE programs have automated this and many other non-value-

added tasks like wire numbering and device tagging. Engineers can complete assignments that

once took days or weeks in a fraction of the time. Having a database-driven Computer Aided

Engineering (CAE) process also means few if any errors make it through to the manufacturing

stage or beyond, where they are significantly more costly to fix.

ARCHIVING DATA CREATES HUGE EFFICIENCIESWith a database-driven CAE process, you can build a library of standardized product content

macros, with their respective documentation, that can be used over and over again. Employ-

ing such recurrent content reduces project planning overheads, further accelerates project

timelines, improves engineering quality and simplifies production. Select CAE systems allow en-

gineers to import verified component data directly from vendor catalogues into project designs.

DATA CAN BE LEVERAGED IN MANY WAYSPopulating 3D modeling software with your data allows you to prove a design beforehand.

Also, with this high functioning, database-driven approach, the data can be made available to

other departments, allowing them to monitor a project’s progress for more accurate customer

quotes, more timely and cost-effective stocking of components and more reliable produc-

tion and delivery scheduling. Project files can be exported to customers and reimported with

changes to speed up revisions and approvals, then submitted to subcontractors to shorten

delivery times.

The database-driven CAE methodology promises to be indispensable in creating the complex

data backbone of the connected factory where sensor-loaded smart systems communicate

with each other. This connectivity allows for interaction between man, machine and flexible

automation processes. The result: faster turnaround times with uniform results every time.

These are a few of the numerous ways high functioning, database-driven CAE software like

EPLAN can boost productivity, reduce errors and bring faster-to-market capabilities to your

enterprise. For more information, visit us at www.eplanusa.com.

The business case for upgrading your CAD software

CHRISTINE SIEBERTMarketing Communi-

cations Manager,

EPLAN Software &

Services


EPLANusa.com

(847) 240-4667




The Industrial Internet of Things (IIoT) matters because of its potential to simplify the steps re-

quired for the plant manager to know the daily/hourly/right-now status of plant operations.

Even where managers already have good visibility into the most essential aspects of operation,

there are further improvement targets. Maybe it’s moving from 75% planned maintenance to 90%,

or maybe they want to increase the scope of systems and equipment deemed “critical” enough

to monitor. What’s so exciting about this moment in time is the ability of IIoT to get us there, much

faster and with less pain.

IIoT is enabling plants to get real-time performance data through the use of smart sensors that

transmit data wirelessly to the cloud. Attach a wireless measurement device to the asset, connect

that data stream to the cloud, and create a dashboard to fashion the data into meaningful intel-

ligence. You’ve reduced several hurdles in the process: cost, complexity and IT, to name a few.

Another hurdle? Too many proprietary data streams, none of which talk to each other. Manag-

ers are not only tied to their plant historian, but to their radio/email/phone, so that they can query

each separate data/process owner. This is especially stressful in an unplanned downtime situation.

Part of the promise of IIoT is interoperability. Cloud-development depends on APIs, which gener-

ates a more open-source mentality and drives the need to align on industry standards for data

management.

What’s harder to predict is

the ability to go mobile. Many

plants restrict smart device

usage on safety grounds,

and there are some aspects

of IIoT that simply require

the use of a smart device. In

particular, maintenance data

isn’t all that useful if it stays

in the office. As IIoT dash-

boards merge different data

flows into one view, there are

huge takeaways across management, reliability engineers and technicians.

In the case of Fluke’s specific area of expertise, imagine how useful it is to see electrical, vibra-

tion and thermal data side by side during a troubleshooting or inspection situation. We brought our

Fluke Connect® cloud dashboard to market over a year ago, together with an app and wireless

test tools, specifically to break down maintenance data silos. Cell phones and tablets put that in-

formation out in the field where it can be used immediately. The minute a technician uploads new

data to an asset log, the shop manager can see the update and the reliability expert can make an

assessment. Work orders can be issued and completed with the click of a button; no pencil or data

entry required to get a full record of the actual work done.

I think Fluke is perhaps most excited about the “democratization” element of IIoT. The acces-

sibility of this technology allows smaller, less critical-path industry to begin experimenting with

some of the same best practices that up until now, only big industry could afford. You don’t need

state-of-the-art retrofits; just a couple wireless measurement devices and a piece of software will

get you up and going. Planned maintenance is a broadly-held goal, but it just wasn’t an option for

some, until now.

Leaping hurdles to plant efficiency with the Industrial IoT

SALVATORE PARLATOREVP Software Solutions,

Fluke Corp.


Fluke.com

(800)-44-FLUKE “ THIS TECHNOLOGY ALLOWS SMALLER, LESS CRITICAL-PATH INDUSTRY TO BEGIN EXPERIMENTING WITH SOME OF THE SAME BEST PRACTICES THAT UP UNTIL NOW, ONLY BIG INDUSTRY COULD AFFORD.”




In the movement toward Industry 4.0 and IIoT, PC-based control technology from Beckhoff

Automation provides the ideal toolbox to implement the leading automation concepts of our

time. These concepts include the Internet of Things, cloud computing, centralized PC-based

control systems, and ever-more connected devices via industrial Ethernet and OPC UA. Many us-

ers are already integrating Beckhoff controllers into their production networks, enabling them to

communicate with databases, perform remote maintenance over the Internet or request cloud-

based services. For decades, Beckhoff has been at the forefront of the convergence of automa-

tion technology (AT) and information fechnology (IT). This convergence is becoming ever more

apparent as machine builders and manufacturers continue to push highly connected technolo-

gies onto the plant floor to establish secure vertical connectivity to enterprise-level systems and

cloud databases in order to manage big data.

TwinCAT, Beckhoff’s PC-based control software, also permits the easy and secure integration

of a wide range of connected devices into the control system such as: smartphones, tablets and

wearable technologies in the form of smart watches and data glasses. Open industrial Ether-

net technologies in the form of

EtherCAT and “vendor neutral”

solutions via OPC UA are avail-

able from Beckhoff to ensure

data security without restricting

connectivity. With the Power of

One controls philosophy from

Beckhoff (one PC-based control-

ler, one software platform and

one network), leading manufac-

turers and machine builders can make great strides toward establishing meaningful Industry 4.0

practices while ensuring lean automation designs and streamlined system architectures.

FEATURE-LADEN SOLUTIONSWhile supporting all IEC 61131-3 programming languages, a wide range of available computer sci-

ence/IT programming tools, and other globally-recognized standards such as MQTT, AMQP, OPC-

UA and PackML, Beckhoff advances open and leading edge automation solutions that deliver

high performance and efficiency. This includes numerous industry-specific technologies ideal for

increasing machine performance in applications such as packaging, plastics processing, met-

alworking, material handling and much more. For example, Control Panel displays are available

in multiple industry variants, as are high performance EtherCAT I/O solutions, servomotors with

One Cable Technology (OCT) and gearboxes. In addition, controllers and I/O are available with

extended operating temperature ranges for extreme climatic conditions. Durable solutions for

harsh environments range from IP 65 up to IP 69K protection to withstand cleaning procedures

typical in the food and beverage industries, for example.

The next step toward IIoT and Industry 4.0 is PC-based control

AURELIO BANDA CEO and President,

Beckhoff Automation

North America


www.BeckhoffAuto-

mation.com

(877) TwinCAT

“ OPEN INDUSTRIAL ETHERNET TECHNOLOGIES AND OPC UA ENSURE DATA SECURITY WITHOUT RESTRICTING CONNECTIVITY.”




The Internet of Things (IoT) is promising major operational benefits by closing the gap between

production and IT. It presents an opportunity for the data we generate for manufacturing control

to be shared with Internet-based applications to bring enterprise-wide advantage.

In automation, the benefits could include higher efficiencies, greater up times, faster repairs,

and higher quality. More significant benefits could arise however if Industrial IoT can deliver fresh

insights into how our plants work and enable us to operate them in better ways.

Hilscher has long been associated with connectivity solutions for the popular protocols found

on the factory floor. Our own netX chip was designed with that in mind. It turns out that netX is

an ideal interface for IoT too.

The netX chip family provides easy interfacing to the many different networking protocols

we see in our plants today. It supports 17 network protocols with 33 different master and slave

stacks, all utilizing a common software and hardware interface, making it simple to integrate

fieldbus and Ethernet networks.

MOVING DATA FROM THE WIRE TO THE CLOUDWhether you call it IoT, Industrial Internet or Industry 4.0, all require end-to-end data communi-

cation from the sensor into the cloud. And where’s the data? On the wire! What’s needed is a

way to move field-level data from existing manufacturing networks to the cloud-based applica-

tions. The Hilscher approach is for “Industrial Cloud Communication,” and netIOT™ is the family

name for our IoT products and services.

In summary they are:

• netIOT™ Interface: A chip-based module allowing IoT data to be gathered directly from the

lowest level devices such as field sensors;

• netIOT™ Edge: Gateways for securely transmitting data from existing networks into the

cloud; and,

• netIOT™ Service: Applications based on partnerships with IT-centric cloud-based suppliers

for remote processing capabilities.

At the device interface level, the netIOT™ is a DIL-32 embedded module for field sensors and

instrumentation, and it places IoT functionality right at the point of measurement. It is equipped

with an OPC UA server and an MQTT client in addition to its communications components. This

makes it possible to access a field device via the TCP/IP channel of an industrial Ethernet net-

work using the same physical cables but without PLC involvement.

The netIOT™ Edge-Gateways securely couple existing automation networks to a cloud. They

are also the main configuration element for netIOT™ field devices—e.g. for the parameterization

of sensors and actuators—and they offer easy access for diagnostics. Web-based monitoring is

supported and wireless connectivity opens up remote access to mobile devices, so it becomes

possible to read and load configurations using mobile devices such as tablets and smart phones.

Important elements of a complete netIOT™ solution are the integrated tools offered to popu-

lar cloud platforms. For Hilscher’s netIOT™ Edge-Gateways, there is already a connection to

IBM’s Bluemix cloud platform, with its range of powerful applications options. More connections

will be formalized soon.

Hilscher’s solutions make IoT transparently available to all users today. They are the most so-

phisticated third-party approach to Industrial Internet yet seen in automation and they make the

benefits of IoT readily accessible to anyone.

From sensor to the cloud: Delivering on the promise of the Industrial Internet

PHIL MARSHALL

CEO, Hilscher North

America


www.hilscher.com/

applications/industrial-

internet/

(630) 505-5301




Many people speak of the Industrial Internet of Things (IIoT) as a trend for the future and a revolu-

tion for the automation industry. But Jörgen Palmhager, COO at Swedish industrial communication

specialists HMS Industrial Networks, sees it differently. “The Industrial Internet of Things is not a

trend for the future, it is happening as we speak—and it is an evolution, not a revolution,” he says.

“For us at HMS, the Industrial Internet of Things is nothing new,” Palmhager says. “We have been

’connecting devices’ for more than 20 years and enabled millions of machines to communicate

with control networks and IT systems.”

Palmhager notes that IIoT does not require massive investments or huge, complex projects. It

is about getting data from automation applications to IT systems for processing. “The key thing is

that the data is already there, residing in the operational technology (OT),” he says. “The trick is to

get the data translated into a format that IT-systems can understand, and we have products and

solutions available to do this.”

But if this technology has been available for some time, why is there so much talk about IIoT

right now? “Well, that depends on where you ask that question,” Palmhager says. “There are

different drivers for IIoT depending on where you are in the world. In the U.S., we see signs of a

manufacturing renaissance as more and more production is moving back to the states. Also, many

of the world-leading software and IT companies are located in the U.S and are entering new and

advanced manufacturing partnerships. If you look to Europe, the main driver is to maintain manu-

facturing competitiveness and keep exporting machines and systems. The Industry 4.0 initiative in

Germany is an example of this. If we look towards China, we see increasing labor costs and a need

to increase quality, ergonomics and environmental sustainability. So the drivers for IIoT are differ-

ent depending on where you are in the world but the overall task is the same: Gathering informa-

tion from operational technology to be presented to IT systems.”

Palmhager repeatedly returns to the notion that information is the key to the smart factories of

the future—and that the information is already there, residing in the factories’ PLC systems. It just

needs to be “translated” to be understood by IT systems.

“What is revolutionary are the effects that IIoT will have on the industrial world,” he says. “For

factory owners, IIoT will enable so called ‘Smart Operations.’ By getting data from the factory floor

to IT-systems, it is possible to do system analysis, production statistics and monitor machine and

system health. Machine builders will see their machines become ‘Smart Things’—constantly online

for business intelligence and remote maintenance. This means that machine builders can sell ser-

vices around maintenance and upgrades: they will become service companies instead of product

companies. The implications are revolutionary, while the technology itself is more of an evolution.”

All new technology has its challenges and IIoT is no exception. Security may be the number one

aspect to consider when implementing IIoT, Palmhager says. “As industry becomes more connect-

ed, it also opens its doors to threats such as viruses and hacker attacks. Solid, proven and trusted

communication solutions between OT and IT will be very important. It also will be challenging for

product companies to transform themselves into service companies and to establish new business

models, but they will need to in order to become efficient.”

“At HMS we continue to introduce products and solutions that enable communication between

OT and IT. Earlier this year, we acquired the Belgian company eWON to become a leader in remote

management of industrial equipment. As the need for connectivity and communication is increas-

ing, HMS solutions open the door to devices and machines on the factory floor so users can do

machine analytics, KPI-follow-up and predictive maintenance. And the results are smart industrial

solutions.”

The Industrial Internet of Things: ‘Evolution not revolution’

JÖRGEN PALMHAGER

COO, HMS Industrial

Networks


HMS-networks.com

(888) 826-9287




The promise of connecting everything within an industrial environment to get complete visibil-

ity into operations and allow the best real-time decisions to be made—with or without human

intervention—will transform how we manufacture for years to come. The premise for this next

industrial evolution is the Industrial Internet of Things (IIoT).

While IIoT sets its sights on Internet-enabling all hardware and software components (the

“Things”) that comprise an automation system, its biggest challenge will be seamlessly Internet-

enabling the Things that live at the edge of the network. Industry-wide, this area includes trillions

of Things that contain one or many data points that may need to be analyzed and combined

into information. Unfortunately, the edge of the network is also the furthest removed from the

information technology (IT) we have become accustomed to using when Internet connectivity is

required.

In order to seamlessly integrate industrial data into IIoT, a new communications platform is re-

quired. This platform requires extensive knowledge of the intricate realm of operations technol-

ogy (OT) and the state-of-the-art and rapidly-changing domain of IT.

Within OT, the platform must understand the various network topologies and data protocols

that will be encountered. It must

be able to automatically discover

and identify industrial Things and

the data they contain, as well as

be able to handle the storage of

high-frequency updates.

Within IT, the platform must be

able to transform the data it col-

lects and push it into the cloud via

IIoT standards. Emerging standards

include Asynchronous Messag-

ing Queuing Protocol (AMQP),

Message Queueing Telemetry

Transport (MQTT), Constrained

Application Protocol (COAP), and Data Distribution Service (DDS). These standards allow for the

retransmission of data in the event it does not reach its destination.

With the lack of computer networking infrastructure in OT, this platform must be embeddable

and run within a standalone appliance or an edge-based switch or router where IT and OT con-

verge. Its flexibility will enable industrial data to be sampled cyclically or based on some event

or condition and be published to the cloud independently of data collection. Data filtering should

be available through basic analytics. Lastly, user setup should be minimalized by automating as

much configuration as possible.

As industry continues to define IIoT, the concepts and realization of the optimal communica-

tions platform will continue to evolve. To read more from Tony Paine on IIoT and communica-tions at the edge, visit kepware.com/iot.

Seamlessly enabling edge devices is key challenge for the Industrial IoT

TONY PAINE

Platform President,

Kepware


kepware.com/iot

(888) KEPWARE

“ WITHIN OT, THE PLATFORM MUST BE ABLE TO AUTOMATICALLY DISCOVER AND IDENTIFY INDUSTRIAL THINGS AND THE DATA THEY CONTAIN, AS WELL AS BE ABLE TO HANDLE THE STORAGE OF HIGH-FREQUENCY UPDATES.”




How does an analog industrial refrigeration sensor in Albuquerque, New Mexico, send minute-

by-minute temperatures to a database kept for regulatory purposes in a data center just outside

of Kirkland, Washington?

We know the Internet of Things (IoT) will increasingly connect the massive existing infrastruc-

ture of sensors, actuators, and relays to the digital world of smartphones and cloud-based serv-

ers. We know the business advantages we’ll gain if we do it right. But there is a fundamental com-

munication challenge rarely talked about that must be overcome for the IoT to be fully realized.

The IoT is about billions of things in the physical world connecting with the digital world. It runs

on digital data—bits and bytes—sent to the cloud and consumed by digitally based computers,

servers, and mobile devices.

But the physical world’s language is rarely digital bits and bytes. Few sensors or circuits speak

or understand the protocols and languages the IoT uses. In the physical world, at the edge of the

network, flow meters and vibration sensors were not designed for Internet communication and

have little or no built-in computing power. That temperature sensor in Albuquerque is analog; it

sends data in electrical signals like voltages and currents—signals the IoT doesn’t understand.

Currently, for a cloud-based server to capture data from an analog sensor, the sensor’s data

must be translated using a complex architecture of PLCs, OPC servers, proprietary drivers, and

protocol gateways. These layers of complexity not only require time, money, and specific domain

expertise to install and maintain; they can also jeopardize data integrity and don’t address infor-

mation security. Multiply this translation process by the billions of devices we expect to connect

using the IoT and you see the communication challenge the IoT faces.

For the IoT to reach critical mass, a simpler bridge must be established between the physical

world and the digital world. Modern IoT system architectures must be flattened, streamlined and

optimized. Sensor data from the physical world must easily and securely access the cloud through

open, standards-based communication technologies like TCP/IP, HTTP/S, and RESTful APIs.

Bridging the gap will liberate vast amounts of data generated from billions of things, now avail-

able to send to the cloud for advanced digital processing and analytics. The volume of data these

devices generate (Big Data) will be unlike anything the digital world has ever seen. But transporting

that much data could significantly increase network and Internet latency. Intelligence must be built

in at the network’s edge to separate useful information from extraneous data, thereby reducing

network traffic and preventing Internet service outages.

The Internet is prone to failure and communication disruptions. The IoT requires edge comput-

ing devices that maintain data-gathering and control functions even when the Internet is unavail-

able. Edge devices must be able to process and store data generated from the physical world until

Internet communication is reestablished.

IoT-enabled edge computing systems must have the ability not only to communicate with the

Internet of Things, but also to monitor and control systems in the physical world. They’ll require

support for both application-specific protocols and sensor-level devices in industrial environments

as well as open, standards-based programming interfaces for the cloud, such as Restful APIs,

JSON, and JavaScript.

Edge computing is the sensor on-ramp to the IoT, and the key to bridging the gap between op-

erations technology and information technology to realize the potential IoT offers.

Opto 22: A unified business automation platform where OT and IT converge. Visualization,

control, and data management for the IoT-enabled enterprise. Automate your business with Opto

22 and bridge the OT/IT gap.

Edge device intelligence needed to bridge OT, IT worlds

MARK ENGMANCEO, Opto 22


opto22.com

(800) 321-OPTO




Many organizations are eager to implement the Industrial Internet of Things (IIoT) to realize ben-

efits such as reduced operational costs, better visibility and improved control. Bringing a facility

into the 21st century involves addressing several fundamentals to help ensure a smooth transition.

To begin this process, organizations should consider how to handle the following three challenges:

1. Enabling communication between devices Drives, sensors, PLCs, panel meters and other automation equipment are built to last years—

even decades. Trouble is they often communicate via proprietary protocols that commonly

use RS-232/422/485 serial cables. While these serial protocols are efficient and were often

written for a specific application, many of these applications never included 24/7 monitoring

across TCP/IP networks. In order to bring these devices into the IIoT paradigm, an organi-

zation must first ensure that each device can communicate with other equipment on the

factory floor. Companies looking to connect devices from disparate manufacturers can now

choose advanced human-machine interfaces (HMIs), protocol converters and other auto-

mation products that natively speak different protocols. These industrial products enable

devices to extend equipment lifespan by communicating regardless of physical medium and

heterogeneous environment.

2. Driving operational efficiencies Operational efficiencies can be accomplished in a number of ways, one of which is using

data collected from monitoring points along a manufacturing line to minimize waste and

downtime. As technology continues to improve, these status points will include an increased

volume of information from numerous sources. Managed Ethernet switches will be able to

report on the flow of data throughout the facility in the same way that sensors on assembly

lines can report product status on a production line. This expanded collection of operational

data enables organizations to make data actionable by using visual management solutions

to collect, record and display critical key performance indicator (KPI) and Andon messages.

Displaying this critical performance data in real time helps to improve process visibility and

drive productivity.

3. Providing a secure platform Security has traditionally meant physical isolation of automation equipment and enterprise

networks. If nothing is connected to automation equipment, the threat of security breaches

is fairly low. However, connection-free facilities are few and far between as more organiza-

tions continue to expand their network into factory settings. This interconnection is why

security should be addressed through careful network planning and use of IP address best

practices. Industrial routers can be deployed to limit network traffic to specific types of traffic

or to specific users, minimizing the risk of a cyber-attack. Another tactic is the implementa-

tion of NAT (Network Address Translation), which obscures devices on a network from in-

bound access, without affecting network traffic. Finally, secure routers can help push control

to the edge to scale systems management with control capabilities at the device.

When updating a facility, it is important that expectations be set early as the path to the IIoT

can be long and complicated. However, intelligently addressing these three challenges will enable

organizations to reap the benefits that the IIoT has to offer.

Three fundamentals for addressing IIoT challenges

BRIAN ROSEMADirector of IIoT Strategy,

Red Lion


www.RedLion.net

(717) 767-6511



FROM THE EDITOR T O O L B O X N E W T O U S E

Hilscher tackles OT/IT divide with netIOT portfolio

In what industrial connectivity leader Hilscher is calling one of

the most significant steps in its 30-year history, the company is

setting out to make it easy for users to access the much-vaunt-

ed benefits of the Industrial Internet. With the next “Industrial

Revolution” firmly in its sights, the company also kicked off its

Industrial Internet of Things (IIoT) strategy with the announce-

ment that it has become a member of the IBM Bluemix partner-

ship program.

The company is introducing a family of IIoT products and

solutions dubbed “Industrial Cloud Communications,” delivering

a full bottom-to-top solution that can be deployed without risk

and at controllable cost. The strategy involves extracting data

from plant networks in parallel with existing control data flows

so legacy systems and equipment are not impacted. Industrial

Cloud Communications products and services promote the

true merging of operational technology (OT) with information

technology (IT) within enterprise architectures supporting the

next step in how plants work.

The netIOT Industrial Cloud Communications portfolio brings

the Industrial Internet within reach of device vendors, OEMs,

system integrators and end users, allowing them to take full

advantage of the business-enhancing potential of IIoT.

Hilscher CEO Hans-Jürgen Hilscher said, “We are uniquely

experienced to move into this exciting marketplace. Hilscher

has built its reputation on supplying protocol interfacing

products that support all popular automation networks. We

have our own netX chip family of protocol converters and we

are very familiar with real-time operating systems. When re-

searching the IIoT market’s needs, we quickly realized that

IoT gateways by themselves are not the full answer. We have

therefore chosen to deliver a family of products and services

that can be easily deployed at low risk to current working meth-

ods. Our partnership with IBM will help customers leverage IBM

Bluemix solutions. Our strategy facilitates deployment of the In-

dustrial Internet by connecting device data from the plant floor

to the Industrial Cloud for better data-driven decision-making.”

The netIOT Solutions family encompasses three product

segments:

• netIOT Interface Modules: For embedding IoT connectivity

in low level devices such as sensors and enabling the direct

connection of sensor data to the cloud. In effect this brings

the Industrial Internet right down to the plant floor.

• netIOT Edge-Gateways: Three products for connecting data

from popular Industrial Ethernet networks to the cloud,

offering various levels of performance in terms of security,

speed and capacity. Protocols such as MQTT and OPC UA

are already embedded. Wireless connectivity means smart

mobile devices such as tablets and phones can be used to

access field devices for configuration and diagnostics.

• netIOT Service: A range of options providing IoT users with

ways to enter the IoT market and gain experience. netIOT

Studio supports data selection and IoT configuration.

Modules covering diagnostics and predictive maintenance

are being developed and a series of partnerships with

major cloud-based suppliers is being established. netIOT

Edge-Gateways are already configured to work with IBM’s

Bluemix solutions. A number of other partnerships with

cloud-based suppliers are expected to be announced dur-

ing 2016.

Hilscher’s Business Development Manager Armin Pühringer

said, “Our netIOT Edge-Gateways connect field data with

Bluemix platforms and applications supplied “as-a-service”

by IBM. Customers can buy these services on an as-needed

basis today. Our migration paths ensure existing systems and

equipment are not obsoleted. Importantly, our Edge-Gateways

also offer Bluemix system integrators immediate access to

manufacturing data, extending our normal market coverage.

We are proud to be one of the first companies to launch a

significant product range in what is predicted to become a

massive market.

“The IIoT market is here and growing,” he added. “We urge

users to start now and gain experience as the gap between

production and IT gets ever smaller.”

The netIOT Edge-Gateways connect data from popular Indus-

trial Ethernet networks to the cloud, offering various levels of

performance in terms of security, speed and capacity. Cloud-side

protocols such as MQTT and OPC UA are already embedded.

SI16Q1_46_49_TOOLBOX.indd 46 3/28/16 12:51 PM


N E W T O U S E T O O L B O X

New mobility app delivers for Honeywell system users

Honeywell Process Solutions (HPS) launched a new app

providing plant managers immediate notifications as well

as real-time plant performance data and analytics direct to

their smartphones.

Honeywell Pulse, part of Honeywell’s Industrial Internet

of Things network, is the company’s newest technology

enabling plant managers, supervisors and others to stay

connected to their enterprise—wherever they are in the

world. The app brings relevant metrics and the tools to re-

solve issues directly to mobile devices, helping to improve

efficiency and safety.

“Honeywell’s IIoT is all about data, data analytics, and

especially big data analytics,” said Bruce Calder, vice

president and chief technology officer for HPS. “The IIoT,

cloud and mobility have really supercharged our portfolio.

Honeywell Pulse gives managers and supervisors peace

of mind by allowing them to receive alerts and monitor

performance remotely. This allows plant personnel to

respond faster to situations, whether they are planned or

unplanned.”

Honeywell recently conducted a customer mobility

strategy survey which showed 65% of the company’s

customers in the chemicals, refining, pulp and paper, and

upstream oil and gas industries have a mobility strategy. It

identified the top three operational areas where mobil-

ity is of interest as: processing facilities, field service and

logistics. The survey also revealed that customers are in-

vesting in mobility in three key areas: information visibility,

improved field service workflow and safety compliance.

“The survey shows, and Honeywell’s approach to mobil-

ity reflects, the need for mobility solutions in order for

businesses to properly transform to meet global challeng-

es,” according to Mark Sen Gupta, senior consultant, ARC

Advisory Group.

Mobility is part of Honeywell’s initiative to introduce a

suite of apps that, along with new cloud functionalities, will

help existing solutions deliver better business efficiency.

Honeywell Pulse, HPS’ first app built specifically for mobile

devices, connects to different sources and applications

across the company’s portfolio to create a more intuitive

mobile experience for plant workers.

Honeywell Pulse provides:

• Timely notifications: Customize alerts according to

your preference to receive proactive and timely notifi-

cations

• Alerts from multiple data sources: Enable alerts from

existing Honeywell DynAMo Alarm Management soft-

ware, and OPC-compliant historians, such as Unifor-

mance Process History Database (PHD)

• Connectivity tools to drive collaboration: Allow use of

threaded conversations to resolve and weigh in real

time on issues; define alert conditions and subscribe

or unsubscribe quickly and easily

• Raise situational awareness: Forward, share and re-

ceive critical alarms and events to increase situational

awareness

Honeywell Process Solutions’ new Pulse app securely

connects to its clients’ distributed control and process

management environment, bringing relevant perfor-

mance metrics and the tools to resolve issues directly

to mobile devices.



FROM THE EDITOR T O O L B O X N E W T O U S E

MQTT modules link Ignition software directly to IIoT

Inductive Automation announced the release of Cirrus Link

MQTT Modules for Inductive’s Ignition software platform

for human-machine interface (HMI) and supervisory control

and data acquisition (SCADA) applications.

The new modules—MQTT Engine, MQTT Injector, and

MQTT Distributor—are the result of a new partnership

between Cirrus Link and Inductive Automation, and are

designed to accelerate organizations’ ability to leverage

the Industrial Internet of Things (IIoT). Arlen Nipper, presi-

dent of Cirrus Link, is the co-inventor of Message Queueing

Telemetry Transport (MQTT), an extremely lightweight pub/

sub messaging transport that’s perfectly suited to the IIoT.

MQTT provides fast, bi-directional communication in a very

simple manner, so it requires minimal network bandwidth.

The new Cirrus Link MQTT Modules for Ignition can con-

nect hundreds of devices in just minutes.

“I’d been waiting 17 years for a solution like Ignition,”

said Nipper. “I needed this piece to make all this come

together. Now we’ve got a complete solution that is much,

much faster than anything else.” Nipper co-invented MQTT

in conjunction with Andy Stanford Clark of IBM specifically

for real-time, mission-critical SCADA systems.

“This new solution gets crucial operational data to the

people who need it,” added Don Pearson, chief strategy of-

ficer at Inductive Automation. “It uses MQTT to easily push

data from thousands of devices across numerous sites to

one central location. From there, managers can get just

the data they need, when they need it, to make better de-

cisions. In many industrial organizations, huge amounts of

data are stranded in data silos. MQTT with Ignition actually

decouples devices from applications, making data much

more available—to everyone from the field or the plant

floor to the top floor.”

“As soon as you couple a device to an application,

you’ve killed innovation,” said Nipper. “You don’t have

the flexibility you need to realize the full potential of the

IIoT. With MQTT and Ignition decoupling things, you have

unprecedented flexibility and speed.”

“MQTT’s simple, lightweight messaging protocol helps

IIoT deliver real value to manufacturers,” added Craig

Resnick, vice president of ARC Advisory Group. “MQTT

provides connectivity from simple assets, enabling flexible,

automated ‘plug & play’ production solutions that address

manufacturers’ biggest challenges, such as ever shorter

product life cycles, increasing product personalization, and

growing cost pressures.”

[CAPTION FOR IMAGE FILENAME: Inductive

Automation-Arlen Nipper photo]

“I’d been waiting 17 years for a solution like

Ignition -- I needed this piece to make all this

come together.” Arlen Nipper, co-inventor of

MQTT and president of Cirrus Link.

Dell enters industrial PC market, targets IoT use cases

Dell has squarely taken aim at the mainstream industrial PC

market with the launch of its first purpose-built products, the

Embedded Box PC 3000 Series and 5000 Series. Available this

summer, the products are fanless, ruggedized and built to

provide customers fast time to market.

With a long history of rugged engineering innovation

and extensive experience in OEM Solutions, the prod-

ucts expand Dell’s Internet of Things (IoT) portfolio. The

company intends to bring the benefits of short lead times,

enterprise-class lifecycle, stability, service and support

to customers who it believes are underserved by current

embedded solutions.

Embedded computing is now everywhere, the company

noted in a press release. According to a Technavio study,

the embedded systems market was valued at more than $11

billion in 2014 and is expected to reach $23.10 billion in 2019,

growing at a CAGR of almost 15%. Organic growth is being fu-

eled by falling component costs, improved power efficiencies,

increasing business ROI needs and demand from the IoT.

However, the reality of long lead times, low device reli-

ability, limited scalability, lack of security and manageability

options and limited support hinder the development of the

market. “Customers have consistently told us that current

embedded solutions do not meet the level of cost-effective

sophistication, scale and support they need for these to

be a critical, reliable component of their operations,” said

Andy Rhodes, executive director, Commercial IoT Solutions,

Dell. “Along with our new embedded products that can be

ordered in quantities from one to thousands, Dell will bring

our established business heritage to this new market: global



N E W T O U S E T O O L B O X

scale, end-to-end IT and OT security portfolio, flexible pay-

ment solutions, strong customization and award-winning

service and support.”

Dell’s Embedded Box PCs are fanless, important as the

fan is the often most common component failure in embed-

ded use cases, and also ideal for environments that require

little noise. They are highly reliable devices that can be used

“headless” or with keyboard, mouse and monitor. Flexible

and powerful, with extensive wired and wireless input/output

(I/O) options, they run on Intel processors. The 3000 Series is

powered by Intel Atom processors and designed for space-

constrained applications, such as retail kiosks, automated

vending devices and vehicles.

The 5000 Series is optimized for performance and I/O scal-

ability. Powered by Intel Core processors, it includes two PCI/

PCIe card slots for adaptability. It provides high-bandwidth

ideal for industrial PC and IoT use cases (multi-HD video

streaming apps and high frequency sensor data sources) as

well as manufacturing and automation control.

Bedrock Automation has introduced a cyber

secure, standalone uninterruptible power

supply (UPS) for industrial control system

applications. Born as the UPS for the Bedrock

control system, the Bedrock UPS.500 features

powerful onboard electronics that enhance

the performance advantages of lithium ion

(Li-Ion) polymer battery technology, manage

Bedrock’s patented Black Fabric deep authen-

tication cyber protection, and enable secure

Ethernet communications. A sealed NEMA4x

aluminum housing provides protection from

cyber tampering and enables use amidst the

most challenging field installations.

“As industrial devices get more intelligent,

they also become more vulnerable to disrup-

tion,” said Albert Rooyakkers, CTO and vice

president of engineering for Bedrock Automa-

tion. “When we set out to redefine the indus-

trial control system for the next generation

of industrial operations, it was clear that we

needed battery backup far more capable and

elegant than anything currently on the market.

By drawing on our deep process automation,

electronics and cyber security expertise, we

built the Bedrock UPS.500 and are pleased to

offer it now for use with any control system.”

The Bedrock UPS.500 provides 24 V DC 12Ah

of power for any DCS, PLC, PAC or SCADA

RTU application. An onboard secure micro-

controller controls the Li-Ion polymer battery

cell-by-cell, augmenting the high density, rapid

charging, extreme temperature tolerance and

extended life that characterizes Li-Ion technol-

ogy. Compared to traditional systems using

lead acid batteries, the Bedrock UPS.500 ex-

tracts all of the advantages of lithium energy

storage, including extreme energy density and

significant improvements in size, weight, and

useful life.

The UPS.500’s onboard electronics enable

Bedrock Automation’s patented Black Fabric

embedded deep trust ICS cybersecurity, which

works transparently and instantly upon startup

to manage Bedrock’s patented authentication

process. With the secure onboard microcon-

troller comes secure 10/100 Mbit Ethernet

IPv4 and IPv6 communications and support

for Secure Sockets Layer (SSL) Embedded Web

Server and embedded IEC 62541 - OPC Unified

Architecture Server. Bi-directional communi-

cations enable control, diagnostics and status

reporting. More than 35 diagnostic variables

can be easily monitored, trended, alarmed and

historicized via SCADA, enterprise and cloud

applications securely.

Dell’s Embedded Box PC

5000 Series and 3000 Series

will be available in select

countries in summer 2016.

Standalone UPS provides cybersecure power protection

Bedrock Automation’s

UPS.500 is not only cy-

bersecure; it is sealed

to IP 67/NEMA 4X stan-

dards and is shock-

and vibration-proof to

withstand environ-

mental extremes.



A D I N D E X

Beckhoff Automation ................................................................................................................................. 40, 52

CC-Link Partner Association Americas ........................................................................................................ 3, 37

Eplan Software & Services ..........................................................................................................................15, 38

Fluke ............................................................................................................................................................ 6, 39

GE Automation ............................................................................................................................................19, 36

Hilscher North America .................................................................................................................................8, 41

HMS Industrial Networks ............................................................................................................................. 2, 42

IDEC .................................................................................................................................................................. 31

Kepware ......................................................................................................................................................51, 43

Opto 22 ....................................................................................................................................................... 23, 44

Red Lion Controls ........................................................................................................................................13, 45


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