industrial iot value creation v4
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Industrial IoT Market Evolution and Value Creation
Juxtology Proprietary
Lee HouseManaging Director, JuxtologyJuxtology.com
Juxtology Industrial IoT Webinar AgendaThe IIoT market, how to create value, and how to create value for customers
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Cisco Prediction: Industrial IoT (IIoT) will create $14.4T by 2020
The Industrial IoT Value Creation will be Realized in Stages: First Connect and Manage, then Analyze, Predict and Optimize:
IIoT is Ramping, but the Ecosystem is Fragmented and Immature§ What does it take to to Deliver IIoT Value Now?§ What Makes a Good IIoT Strategy for Suppliers and Customers?§ What should Suppliers do to Accelerate the IIoT Market?
Preview: Solution providers that Simplify IIoT Value Creation will Win Big
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The Industrial Internet of Things has Transformed Asset Management
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Internet of Things
Microelectronics and Sensors
Big Data and Enterprise Analytics
Open-sourceSoftware and
Hardware revolution
Ubiquitous Connectivity
Cloud Computing
IoT is a new “brand” for doing what we have done for a long time, but now can do Much Better
Source: Juxtology Consulting
“The Old Way”
“The New Way” with IoT
Multiple “mega-trends” are fueling the IoT industry and enabling a revolution in new value creation
The Industrial IoT “Stack” is a Technology Roadmap for Value Creation
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Source: Juxtology Consulting
“The Old Way”
“The New Way” with IoT
The IIoT industry is now moving from “early adopter” to “mainstream”. Early high-value projects are paving the way and paying for for industry maturity
The IIoT Architecture is gaining maturity
IoT Market Growth Outlook – Cisco Predicts $14.4T of Value CreatedMcKinsey spotlights the markets likely to see the most IoT impact
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Cisco’s prediction is on the value created that is directly related to IoT deployment:
McKinsey states that IoT users (businesses, organizations, and consumers) will capture 90 percent of the value IoT applications generate.
Source: Cisco Systems
Industrial IoT’s Biggest Hurdles to Deployment
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1. IIoT “Time to Value” is Unclear / Ambiguous2. A Fragmented Ecosystem is too Hard for Customers3. Customers need Help Capturing IIoT Value
It will take Time to Deliver the Full Industrial IoT Value Proposition –But this value chain begins with relatively simple connectivity and grows from there
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Source: Intel IoT Platform
Connect to high value assets to monitor and controlRemote management to reduce operational costs
Analyze performance to predict failures
Edge intelligence to create autonomous systems
New services with end to end intelligence
Innovate customer “value for life”
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Increasing Solution Complexity and Integration
“Thin” Industrial IoT Solutions Can Provide Immediate Business ValueImmediate / low risk value creation can be realized incrementally
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Source: Juxtology Consulting
Basic IoT connectivity enables asset visibility, monitoring and control, providing:§ Immediate visibility to asset fault conditions§ Automation of metering and billing activities§ Improved utilization of capital assets§ System level visibility of asset performance § Remote asset control and configuration§ Elimination of “truck rolls” for unnecessary
scheduled maintenance activities
Even “simple” deployments can create significant new enterprise value creation
“Thin” Industrial IoT Solutions Can Provide Immediate Business ValueImmediate / low risk value creation can be realized incrementally
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Basic IoT connectivity enables asset visibility, monitoring and control, providing:§ Elimination of “truck rolls” for unnecessary
scheduled maintenance activities§ Immediate visibility to asset fault conditions§ Automation of metering and billing activities§ Improved utilization of capital assets§ System level visibility of asset performance § Remote asset control
Even “simple” deployments can create significant new enterprise value creation
50%?Source: Cisco Systems
”Full Stack” IIoT Solutions Significantly Extend Business Value RealizedIncremental IIoT investments add to value creation opportunity
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Evolving to a “Full Stack” Deployment Enables Incremental / Compounding Value Creation:§ Asset data analysis enables predictive
maintenance and new levels of reliability§ Total end to end system optimization
improves asset utilization and profits§ Real-time data monitoring and control
enables advanced system automation§ Edge intelligence for low latency controls§ ”Smart” IIoT products drive customer loyalty
“Full Stack” deployments extend early investments with new value creation
”Full Stack” IIoT Solutions Significantly Extend Business Value RealizedIncremental IIoT investments add to value creation opportunity
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Evolving to a “Full Stack” Deployment Allows Addition of New Layers of Value Creation:§ Asset data analysis enables predictive
maintenance and new levels of resilience§ Real-time data monitoring and controls
enable advanced automation systems§ Integration of IIoT into back-end systems
enables new levels of asset utilization§ Edge intelligence for low latency controls§ ”Smart” IIoT products drive customer loyalty
“Full Stack” deployments extend early investments with new value creation
100%Source: Cisco Systems
Industrial IoT’s Biggest Hurdles to Deployment
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1. IIoT “Time to Value” is Unclear / Ambiguous2. A Fragmented Ecosystem is too Hard for Customers3. Customers need Help Capturing IIoT Value
Our Biggest IIoT Challenge: The Ecosystem Remains too FragmentedCustomers still must work too hard to field working solutionsSolution providers that make IoT easy for customers will have critical competitive advantage
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Compute Clusters
Presentation
Infrastructure …aaS Big Data Storage …aaS
Big Data Access and Control
Cloud-basedApplications
IoT Analysis and Insight
Web Interface and Device Control
Operating Systems
IoT and Gateway Hardware
Distributed Intelligence & Control
Connectivity
Protocols & Translations CoAP
Wired ISP
Sensors and I/O ConnectivityClo
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Platform …aaS
Transport:WiredandWirelessPrivateNetworks
Field Assets, Smart Cities, Smart Grid
Users and Customers
Microwave
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Presentation / Visualization
IoT Reference Model Coverage – Few Suppliers Provide “Whole Products”Customers must work with multiple IIoT solution providers to deploy solutionsThis graph provides a subjective view of IoT function coverage based on recent Juxtology research
End-User Integration ServicesIoT Solution Designer Software Tools
IoT Cloud-connect / Dev. Mgt.
IoT LTE TransportIoT Gateway / Aggregation
Field Area Networks
Edge Intelligence
IoT Edge Devices
Sensor Integration
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Processing / Analytics
Machine Learning
Strong DifferentiationEmerging LeadersStrong Players
IIoT Cloud or Platform Solutions Moving towards IIoT as a Service (IIoTaaS)
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Suppliers that deliver mature / easy to deploy tools will win customer loyalty
IoTProviderEdgeDeviceIntegration
DeviceConnectivitySupport
EdgeComputingSolution IoTCloudTools
IoTApplicationCreationTools
VARNetworksorServices
IBMWatsonIoT
MicrosoftAzureIoT
GoogleIoTPlatform
AmazonAWSIoT
AT&TM2X
ThingWorx
Vitria
Aeris
DeviceWise
GEPredix
IIoT Edge Connectivity Solutions – A Problem Still in Flux
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Cloud Application
TieredSolution
DirectConnect
FullyIntegrated
Gateways
Edge Nodes
Sensors
Edge Nodes
Sensors Embedded
There are multiple deployment alternatives …
There are multiple connectivity alternatives …
The IIoT Edge Node problem: one size does not fit all!§ Asset IoT solutions can be very simple or very complexo Single sensor monitoring and reportingo Multiple sensor monitoring, reporting and controlo Multiple sensor monitoring, reporting, intelligence and controlo Field based analytics, local intelligence, and fault
management
§ Power / Cost / Range / Bandwidth all influence design decisionso Is the device grid conneced or power scavenging?o How much data needs to be transmitted?o How smart does the device have to be?o What kinds of I/O are needed? o What about critical asset latency, and response time?
Ecosystem starting to provide some solutions:§ DeviceWise – developed targeted solutions for utilities§ MachFu – developed utility HW supporting smart applications§ Libellium – Integrated multiple sensors and I/O for flexibility§ Meshify – developed solutions with high I/O & control options§ Modular wireless options are becoming the norm§ ARM / Raspberry Pi / “Maker” industry knowledge is spreading
However, this remains a problem for IIoT deployment
Industrial IoT’s Biggest Hurdles to Deployment
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1. IIoT “Time to Value” is Unclear / Ambiguous2. A Fragmented Ecosystem is too Hard for Customers3. Customers need Help Capturing IIoT Value
Customers are Expert in Their Fields – Not Necessarily in IIoT
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IIoT Solutions are Maturing, but Customers Need Help with Practical Deployment Issues Key Challenges for IIoT Growth:
§ One size does not fit all§ Justified confidence in IIoT Security§ Industrial segment “fear of the cloud” § IoT solutions are fragmented / too hard!§ Customer uncertainty of IIoT ROI
How the IIoT Industry Needs to Help§ Delivery of proven / deployable solutions§ Build & Adopt Standards for IIoT § Simplify IIoT tools / provide services and
improvement of IIoTaaS offerings§ Develop flexible Edge Node solutions§ More sophisticated customer engagement
o Clear demonstrations of IIoT valueo Value discovery process with customerso Clear paths to ROI and value creationo IIoT customers need help to discover and
realize new value creation
IIoT is already going mainstream, but will accelerate with a more mature ecosystem
Industrial IoT Market Evolution and Value Creation
Juxtology Proprietary
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