the industrial internet: opportunities, disruptions and standards · 2016-12-13 · the industrial...

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The Industrial Internet: Opportunities, Disruptions and Standards Stephen Mellor Chief Technical Officer Industrial Internet Consortium

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Page 1: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

The Industrial Internet: Opportunities, Disruptions and Standards Stephen Mellor Chief Technical Officer

Industrial Internet Consortium

Page 2: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

The Industrial Internet

It’s an internet of things, machines, computers and people, enabling intelligent industrial operations using advanced data analytics for transformational business outcomes.

2 Industrial Revolution

Machines and factories that power economics of scale and scope

Wave 1

Wave 2

Wave 3

Internet Revolution

Computing power and rise of distributed Information networks Industrial

Internet Revolution

Machine-based analytics, physics-based, deep domain expertise, automated, predictive

Page 3: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

Industrial vs. Consumer Internet of Things

Similar Technology Drivers • Small inexpensive

sensors & actuators

• Low cost processing power and data storage

• Smart devices

• Connectivity

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Different Business Drivers • Consumer

• Adequate Quality • Modest Security • Cost Sensitive

• Industry • QoS • Safety • Robust Security • ROI Sensitive

• Efficiency • New Products • New Markets

Page 4: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

The Measurable Outcome will be in the Trillions of Dollars

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• 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 $300B in 2020.

• McKinsey Global Institute: $33 trillion operating costs could be impacted by IIoT Sources: GE, Cisco, Gartner, McKinsey

Page 5: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

1% savings from efficient Industrial Internet solutions could save billions in operational costs

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$30B fuel cost saving

in aviation industry

$66B fuel cost saving in gas powered

fleets

$63B productivity

improvement in healthcare

$90B reduction in

Cap X in oil & gas exploration and development

$27B productivity

improvement in rail industry

Monetization

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

Page 6: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

The Industrial Internet Consortium

The IIC brings together the organizations necessary to accelerate growth of the Industrial Internet by identifying, assembling and promoting best practices and technologies.

“To accelerate growth of the Industrial Internet by coordinating ecosystem initiatives to connect and integrate objects with people, processes and data using common architectures, interoperability and open standards that lead to transformational business outcomes.”

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268 Member Organizations Spanning 33 Countries

Page 7: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

Blue Ocean

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A “blue ocean” market is one where you gain more from cooperating with competitors to grow the market. This is in contrast to fierce competition to divide the market.

Page 8: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

Testbeds & Projects

Business Model, Project Mgmt, Practices

Project Specifications & Reports

Architecture &Design

Requirements & Recommendations for Standards

IIoT TECHNOLOGIES

IIRA Security

Framework Topics and

Themes Requirements for Standards

Business Strategy and Solution Lifecycle

Business Strategy Solution Lifecycle

IIC General IIoT Ecosystem

Project Toolkit

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Page 9: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

The IIC and standards organizations

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The IIC is not a standards organization.

The IIC will: • establish a reference architecture • evaluate existing standards against it • identify requirements, and • propose these requirements to standards organizations

Requirements are different for the Industrial Internet compared to consumer IoT.

Page 10: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

Industrial Internet Interoperability Coalition (I3C)

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Page 11: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

The Future

“Industrial Internet of Things: Unleashing the Potential of Connected Products and Services” by the World Economic Forum, with Accenture

Operational Efficiency

Make specific operations more efficient: • Asset utilization • Operation cost reduction • Worker productivity

New Products and Services

• Pay per use • Software-based services • Data monetization

Autonomous, pull economy

• Continuous demand-sensing • End-to-end automation • Resource optimization and waste reduction

Outcome Economy Shift from selling assets to selling outcomes:

• Pay per outcome • Connected ecosystems • Platform-enabled marketplace 11

Page 12: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

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[email protected] www.iiconsortium.org [email protected] +1-781-444 0404 x137 Things are coming together

Thank you

Page 13: The Industrial Internet: Opportunities, Disruptions and Standards · 2016-12-13 · The Industrial Internet It’s an internet of things, machines, computers and people, enabling

INDUSTRIAL INTERNET CONSORTIUM USE OF INFORMATION - TERMS, CONDITIONS & NOTICES

Authors and legal notice Copyright © 2016 Industrial Internet Consortium (by Object Management Group, Inc.). All rights reserved. This document is provided AS-IS and WITHOUT WARRANTIES. All copying, distribution and use are subject to the limited License, Permission, Disclaimer and other terms stated in the Industrial Internet Consortium Use of Information – Terms, Conditions & Notices. If you do not accept these Terms, you are not permitted to use the document.

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