The Industrial Internet: Automation and Analytics

Claude BaudoinOwner and Principal Consultant @cbaudoinApril 25, 2016

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The Industrial Internet in Numbers• GE: $32.3 trillion opportunity representing 46% share of GDP today• Cisco: Internet of Things (IoT) will increase private sector profits 21% and add

$19 trillion to the global economy by 2020• Gartner: IoT product and service suppliers will generate incremental revenue

exceeding $300 billion in 2020• McKinsey Global Institute: $33 trillion operating costs of key affected industries

could be impacted by IoT• Why?

• New products and services• Operational efficiencies that will drive down costs• Improved service levels

Sources: GE, Cisco, Gartner, McKinsey

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IoT or IIoT?• There is a fine

line between consumer IoT and industrial IoT

• Some applications integrate both

• Smart cities• Smart grid

• Solutions will migrate across the two domains

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Opportunities in All Industry SectorsBeyond the numbers, the Industrial Internet is changing how things work.

* Projected savings are based on 1% efficiencies/savings

Source: Industrial Internet: Pushing the Boundaries (2012, Evans & Annuziata)

$30Bfuel cost saving

in aviation industry

$66Bfuel cost saving in gas powered

fleets

$63Bproductivity

improvement in healthcare

$90Breduction in

Capex in O&G E&P

92Mvehicles with

Internet connectivity on

the road by 2016

68%decrease in crime rates with video

surveillance

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The Industrial Internet Consortium• Founded in March 2014• About 240 members

• Large industry• Small industry• Nonprofit, academic and government

• Defines the Industrial Internet as“An internet of things, machines, computers and people…enabling intelligent industrial operations…using advanced data analytics for transformational business outcomes.”

IIC Founder Companies

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What the IIC DoesWorking groups create interrelated deliverables to engage the community and influence standards organizations

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Industrial Internet Reference Architecture (IIRA)• Based on a hierarchy of

viewpoints• Business• Usage• Functional

• Further decomposed at right • Implementation

• Spans the scope from automation to analytics and connects the two

• Assumes a 3-tier architecture• Edge, platform, enterprise• Related to the concept of “fog

computing” (Cisco)

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IIC Testbeds• Smart Manufacturing Connectivity for Brownfield Sensors• Intelligent Urban Water Supply• Outage Management (uses Predix, GE Aero is a partner)• Condition Monitoring and Predictive Maintenance• Asset Efficiency (GE is a partner)• Smart Facilities• Track & Trace• Security Claims Evaluation• Factory Operations Visibility and Intelligence• Industrial Digital Thread (GE is a partner)• Smart Supply Chain• Smart Water Management• Connected Care (changed from Predix to ThingsWorx because GE pulled out of the testbed)• Time Sensitive Networks

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IIC Testbed: Track & Trace • Industrial Internet Consortium Member participants:

• Bosch, TechMahindra, Cisco, National Instruments• Market Segment

• Industrial Manufacturing• Power Tool Fleet Management

• Goal• Manage smart, hand-held tools in manufacturing,

maintenance and industrial environments• Features & Commercial Benefits

• Asset Management, Work Management• Integration with Factory Manufacturing Systems• Improved Safety and Operational Performance• Monitor/Control Quality

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IIC Testbed: Communication and Control for Microgrid Applications• Collaborators

• Leads: RTI, National Instruments, Cisco• With: CPS Energy (San Antonio), Southern Cal Edison, Duke Energy, SGIP

Market Segment• Energy Industry

• Goals• Introduce the flexibility of real-time analytics and control to increase

efficiencies and ensure that power is generated accurately and reliably to match demand

• Features & Commercial Benefits• Enable efficient integration of solar and wind into the grid• Create a dynamic, open marketplace for smart grid vendors• Prove the viability of a real-time, secure DataBus distributed-control

architecture in real-world grids

Neighborhood MicroGrid

Solar

Field Network

Wind

Local load control

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IIC Testbed: International Future Industrial Internet (INFINITE)• Participants

• Members: EMC Corporation and Cork Institute of Technology• Other Participants: Vodafone, Irish Government Networks, Asavie, and

Cork Internet Exchange• Market Segment

• The scale and scope of the project means INFINITE can be used across a wide and diverse range of industries and sectors

• Solution• Completely virtual domains that are able to be connected via mobile

networks• A solution that allows multiple virtual domains to securely run via physical

network. • Commercial Benefits

• Ideal for mission-critical systems• Industrial Internet applications in an environment that resembles real-

world conditions

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IIC Testbed: Condition Monitoring & Predictive Maintenance • Member Participants

• IBM and National Instruments• Market Segment

• Predictive maintenance cuts across multiple market segments like power plants, manufacturing, process, mining, transportation, aerospace, and defense

• Goals• Develop new predictive maintenance analytics modeling techniques• Document standard and secure architecture patterns and data formats for

predictive maintenance in the Industrial Internet era• Commercial Benefits

• Increase equipment uptime and prevent catastrophic failures• Provide condition monitoring data to experts thru the cloud

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IIC Testbed: High-Speed Network Infrastructure • Member Participants

• General Electric, Cisco, Accenture, Bayshore Networks

• What is the High-Speed Network Infrastructure?• 100 Gbps to support seamless M2M data

transfer across connected control systems, big infrastructure products and manufacturing plants

• Commercial Benefits• Instantaneously connect and control

machines located thousands of miles away

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IIC and OMG: Partnering on IIoT Standards• OMG supplies IIC participants with options for standards-based modeling

and implementation• Systems Modeling Language (SysML)• Interface Flow Modeling Language (IFML)• Data Distribution Service (DDS)• … and more

• IIC supplies OMG with requirements and testbed results that help drive the roadmap for standards

• One concrete result: a DDS/OPC-UA Gateway is under development

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Cybersecurity: a Key IIoT Challenge

• Security challenges in IIoT were raised in 2013

• Few people listened

• First connected devices had basically no security

• Connectivity improved faster than security

• The Industrial IoT cannot afford the low level of security of consumer IoT

• We’re now seeing awareness and actual work: better late than never

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Summary and Conclusion• The IIoT went quickly from concept to reality

• It presents huge opportunities

• It still doesn’t come in a neat box with batteries and instructions

• Security thinking is lagging behind connectivity thinking

• Don’t forget about privacy and data residency issues

• Don’t go at it alone – this is an ideal opportunity for partnerships

• Look up the IICwww.iiconsortium.org

• Ask for more information

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