The slides provide a quick overview of the Industrial Internet of Things (IIoT) trend. The slides provide summary information, a list of trends to watch and links to additional resources

1. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Industrial Internet of Things (IIoT)
IBM HorizonWatch 2016 Trend Brief – External Version
Bill Chamberlin, Principal Client Research Analyst / HorizonWatch Community Leader
May 9, 2016

2. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
About This HorizonWatch Emerging Trend Brief
2 Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)09May2016
 Purpose: The slides provide a quick overview of the Industrial Internet of Things (IIoT)
trend. The slides provide summary information, a list of trends to watch and links to
additional resources
 How To Use This Report: Use these slides as a learning document and a springboard
to further research and reading on this trend. You may want to view the slides in
slideshow mode so you can easily follow the links
 Available on Slideshare: The latest version of this file (and other HorizonWatch Trend
Reports for 2016) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please Note: This report is based on internal IBM analysis and is not meant to be a
statement of direction by IBM nor is IBM committing to any particular technology or
solution.

3. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Defining the Industrial IoT market
3
Enabling Technologies:
• IoT Platform / Neworks
• Sensors
• M2M Communications
• Software
• Cloud Services
Industrial IoT (also referred to as IIoT or Industrie 4.0) refers to the application of IoT
capabilities and concepts to industrial processes and equipment in industries such as
manufacturing. It includes the application of IoT networks to machines, computers, and
people.
Industrial organizations will employ machine learning and big data analytics to leverage data
captured from sensors, machine-to-machine (M2M) interactions, and other related
manufacturing automation technologies for the improvement and optimization of
manufacturing processes.
The Industrial Internet will redefine the landscape for businesses and individuals alike.
Various IoT Inputs & Enabling Technologies
Source: Technology Business Research, Inc. (TBR)
Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)09May2016

4. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Potential benefits of the Industrial IoT
Major benefits will include:
 Reduced maintenance costs
 Reduced energy usage / costs
 Reduced waste
 Workforce productivity gains
 Improved products and services
 Improved customer experience
4
Industrial Internet Consortium
“Through the adoption of IoT technologies, industrial organizations can make
better use of the huge amount of data generated inside their facilities and extract
more meaningful information. This allows a better vision of what happens along
the whole supply chain, achieving better performance at lower operating costs and
the ability to react faster to changes or issues” Eugenio Pasqua, Research Analyst at ABI
Research ABI Press Release
Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)09May2016

5. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Industrial IoT: 5 trends to watch in 2016
1. Convergence of M2M, OT and IT systems. In 2016,
data collected by M2M, OT and IoT systems will
converge both operational and informational technology
opening up new insights that will innovate how decisions
are made.
2. Growth in IIoT drives digital transformation. Firms
transform by leveraging IIoT endpoints such as sensors,
wearables and robots. IoT generated data improves
process workflows, products/services and ultimately
customer experience.
3. Data => New business models & revenue streams.
Manufacturers use IoT collected product usage data to
drive revenue through strategies such as increasing
their support services businesses.
4. Data-driven smart supply chains. Operational,
product and customer data are integrated and analyzed
to optimize supply chains. Leading manufacturers share
data with supply chains to adaptively respond to
customer demand.
5. Partnership ecosystems drive IIoT advancement.
Vendor partnerships will continue to drive advancement
in the commercial viability and applicability of IoT to
industrial processes.
5
“The future development of Internet of
Industrial Things (IoIT) requires
synergetic efforts from all 3 stakeholders
(vendors, policy makers, and end users)
to boost reliability and deliver massive
societal benefits.” Frost & Sullivan: Internet
of Industrial Things: The Vision and the Reality
IBM Industry (Industrie) 4.0 and IoT
Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)09May2016

6. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Industrial IoT: Adoption Challenges
 Lack of clearly defined IIoT business use cases. While IIoT
is not new, vendors and enterprises remain in the early stages
of deploying IIoT solutions. Manufacturing organizations at this
stage need case studies and proof of concepts for IioT that
highlight near- and long-term measurable business value and
ROI.
 Lack of customer understanding around IoT/IIoT.
Manufacturers require support to educate teams and to build
understanding of the applicability and value of IIoT to their
specific operational models and processes.
 Combination of technical complexity and immature IIoT
solutions. Vendors and enterprise customers struggle to craft
viable business plans when implementing IIoT solutions,
especially when working across siloed organizations. As such,
integrating legacy M2M, mobile and cloud-based architectures
over a single IIoT platform has been challenging.
 Lack of underlying technology standards. IIoT means
leveraging new and existing enterprise technologies. The lack
of uniformity across the devices, network, and data means that
deployment of IIoT solutions requires dealing with various
technologies that may be uncomplimentary, particularly as it
relates to outdated IT and OT. The lack of unified technology
standards can increase the cost and complexity of IIoT
deployment.
6
“The transition to Industrie 4.0 requires
huge levels of change and new skills not
only within discrete functions, such as
manufacturing, but also across the entire
organization — touching almost every
department and function.” Gartner: Getting
Ready for Industrie 4.0
EngineerLive The challenges of creating
the Industrial Internet of Things
Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)09May2016
Deloitte Industry 4.0

7. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Industrial IoT – IBM Resources
 IBM: IoT for Electronics / IoT for Automotive
 IBM Center for Applied Insights:
– IoT in manufacturing: The digital train has left the station
– Internet of Things and Industrie 4.0: A chat with two IBM
experts
– Securing the Internet of Things: This decade’s IT
challenge
 IBM Institute of Business Value
– The Business of Things Designing business models to win
in the cognitive IoT
– The Economy of Things Extracting new value from the
Internet of Things
– Empowering the edge Practical insights on a
decentralized Internet of Things
– Device democracy Saving the future of the Internet of
Things
– The new software-defined supply chain Preparing for the
disruptive transformation of Electronics design and
manufacturing
 IBM Software: The rise of machine data: Are you prepared?
7
IBM Center for Applied Insights: IoT in
manufacturing: The digital train has left the
station
09May2016 Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)

8. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected links to additional resources
 Accenture: Industrial Internet of Things
 Accenture: Driving Unconventional Growth through the
Industrial Internet of Things
 Application Developers Alliance: Internet of Things:
Manufacturing IoT From the Factory Floor
 Business Insider: The corporate ‘Internet of Things’ will
encompass more devices than the smartphone and tablet
markets combined
 Cisco: Leading Tools Manufacturer Transforms Operations
with IoT
 Computerworld: Heavy industries may be the looming
giants of the Internet
 Deloitte Industry 4.0
 General Electric: Industrial Internet
 EngineerLive The challenges of creating the Industrial
Internet of Things
 Forbes: Where Internet of Things Initiatives Are Driving
Revenue Now
 Gartner: The Internet of Things
8
“IoT is integral to all businesses now,
because by 2020, everything that can be
connected will be connected.” Andrew
Penn, CEO, Telstra
09May2016
IBM Big Data & Analytics Hub: Internet of
Things (blog posts)
IDC: Transforming Manufacturing with the
Internet of Things
Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)

9. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected links to additional resources (continued)
 IBM: IoT for Electronics / IoT for Automotive
 IBM: IoT in manufacturing: The digital train has left the station
 IDC: Transforming Manufacturing with the Internet of Things
 Industrial Internet Consortium: Industrial Internet Investment
Strategies: New Roles, New Rules
 Intel: Optimizing Manufacturing with the Internet of Things
 IoT Agenda: Industrial Internet of Things (IIoT) definition
 McKinsey: The Internet of Things and the future of manufacturing
 Modern Machine Shop: 7 Things to Know about the Internet of
Things and Industry 4.0
 PWC: The Internet of Things: what it means for manufacturing
 Robeco: The Industrial Internet of Things
 Rockwell Automation: The Connected Industrial Enterprise
 Schneieder Electric: The Industrial Internet of Things: An
Evolution to a Smart Manufacturing Enterprise
 TBR: TBR 2016 IoT Predictions
 World Economic Forum Report: Industrial Internet of Things:
Unleashing the Potential of Connected Products and Services
9 09May2016 Industrial IoT: 2016 HorizonWatch Emerging Trend Brief (External Version)
PWC: The Internet of Things:
what it means for manufacturing
World Economic Forum Report:
Industrial Internet of Things:
Unleashing the Potential of
Connected Products and Services