There has been much hype about hyper-connected business and the Internet of Things. Analysts have made ambitious projections about the expected impact of the IoT, the most recent being over fourteen trillion US dollars of economic impact, expected to be brought by efficiencies in capital-intensive areas such as manufacturing and transportation, and new financial structures. The first wave of IoT projects have often been technology led and therefore underperformed their potential. We believe IoT programmes will become more integral to the business in order to deliver value. This will require new service capabilities to integrate, deploy, manage and support hyper-connected systems as part of company’s mission critical infrastructure.
Director of Service, Internet of Things, Global Delivery Group
Hello everyone and thanks for joining this break out session on building hyper connected services for the internet of things. I know we are nearing the end of a busy few days and you could be having lunch….so I appreciate the commitment. In the world of the internet of things IT and OT have collided and as a result CIOs are now often responsible for IT assets, OT assets and the associated data that is part of that end to end IoT solution. IoT deployments and solutions bring with them an unprecedented layer of management and complexity, they often combine ageing operational technology with cutting edge new technologies they are deployed to business critical systems , generating huge amounts of data and come with inherent risks,,,, so lots of things to keep a CIO awake at night In the next 40 minutes or so we’re going to look at where we are on the IoT journey, the challenges being faced and how building connected services with the right focus can help us move into the next phase of IoT maturity and can help businesses and CIOs move forward with digital transformation
There are always lots of numbers that fly around relating to IoT and I’d like to start with a question…..How many things do you think will be connected to the internet by 2025? 50 million? 500 million? a billion??? The prediction is around 25 billion! And some estimates are even higher….. There are a couple of other stats that will help to put the predicted scale of IoT into perspective….. The anticipated economic impact of IoT is estimated to be $14 trillion by 2025 There is also predicted to be a shift in spending - from products and devices and network infrastructure to services and its estimated that 55% of the total spend associated with IoT will be on services by 2025 And that 35% of service providers will have vertically aligned “boxed” or “oven ready” solutions in the near future All of those are pretty mind boggling numbers that give an idea of the potential of IoT and that this is not a passing fad, so bearing that in mind organisations need to consider what they want to achieve from IoT and how to help the CIO get some sleep
In a recent Fujitsu survey, “increased revenue,” “improved customer relationships” and “strengthened competitiveness of products” are chosen as the most desired business outcomes. Followed closely by improved efficiency and cost reduction and business model transformation.
Most organisations recognise that IoT opens up some great opportunities 46% wanted to increase revenue and that can obviously come from existing markets or by moving into New markets and services or by making your products more competitive in the marketplace IoT can help identify and drive Operational efficiencies and reduce operating costs and this is a big focus for asset rick organisations in environment such as manufacturing
We take a look now at a couple of examples where organisations have delivered some of these outcomes through the use of IoT and connected services
John Deere used to sell tractors and agricultural machinery. On the back of IoT they are now an agricultural service provider and are helping farmers work out how to produce enough food to cope with the rapidly expanding world population Through the use of connected services they gather, manage, analyse and share data from IoT sensors attached to the machinery. That data relates to the machinery and the environment it operates in, be that equipment and maintenance data, weather data, or scientific soil data. This has strengthened the competiviteness of their product in the market place, they can now provide predictive maintenance and connected field engineering services which reduces equipment downtime for their customers. Their relationships with their customers have also changed, rather than engagement only for purchase and servicing of equipment, there is now an ongoing interaction via an ecosystem where customers can access and share data and knowledge and gain benefit from leveraged information
EXAMPLE: INESA, a large Chinese state owned organisation established a Smart Manufacturing Demonstration Factory’ using IoT technology, Big Data platform, and Intelligent Dashboard. The use of this connected solution provided effective predictive and preventative maintenance, reducing downtime and therefore improving operational efficiency. The Intelligent dashboard element provides functionality to replay incidents that weren’t initially identified by managers resulting in more proactive problem management and better root cause analysis. Ultimately this delivered a 25% rise in productivity and a 50% reduction in manufacturing process time
So while there are some clear outcomes that organisations hope to see and some good examples of that being delivered…..there are also examples of deployments not quite hitting the mark and I’m now going to look at the challenges that have impacted on the success of IoT projects
So far IoT hasn’t reached a level of maturity in many markets/industries, with many organisation still at the “researching it” stage and the projects that have been undertaken haven’t been wholly successful - perhaps not delivering the business changing results anticipated. While many have dome something, fewer than 1 in 10 companies have successfully completed an “extensive” IoT implementation so far. As you might expect there are a number of reasons for that… IoT projects have largely been technology led, so its perhaps not surprising that the results haven’t been delivered - the business outcomes have not been clearly defined at the outset so its difficult to articulate success and move to the next phase Technologies, vendors and services and solutions are immature in many areas, so technical issues that are experienced during projects mean confidence in a wider rollout is affected and while the technology may be a hit, if it feels that the “service” isn’t scalable it doesn’t enable the decision maker to commit to move forward on a bigger scale.
This can especially be a challenge in the PoC space, balancing agility and low cost with having a robust service that gives confidence in the ability to move on to a commercial project is a challenge….but utilisation of shared services can be the way to plug into a mature service capability at low cost
There has been a lack of IoT related skills, meaning that organisations feel nervous about deploying solutions they don’t have the knowledge and experience to manage going forward.
Organisational structure can present some challenges….who owns IoT? Is it IT or Operations? And who wants to own it? Both… or netiher? Lack of board level strategy, direction and support can also cause things to falter Finally complexity, IoT solutions and deployment require integration of multiple vendors and technologies, deployment of large numbers of devices into locations that are much more OT than IT and then an understanding of how to manage all the disparate elements of the solution. End to end service models that understand the intricacies of IoT solutions can overcome some of the challenges faced, but before we look at that
CAM is going to talk about a real life project example that illustrates some of this and connected services working to deliver a project
Thanks Debbie. I'll talk about a real world example from my experience of working with a water company. Water companies provide key infrastructure in our built environment, supporting the public and businesses. They have several responsibilities, in this case sewage processing. Their task is to move liquid waste from the location it is produced, to the network where it can be treated and released into the environment. This is done by large autonomous pumps.
This case also touches on several stakeholders, we engaged with a civil engineering company, whose customer was the water company. In turn they provided services to the operating company responsible for the site, which was a motorway service station. The starting point was the question “What does the pumping station of the future look like?” - thinking about all aspects that could be improved through better technology. To answer that we need an appreciation of the present state and what challenges are faced. There are issues such as legacy technology, complexity, in the sense that we might not be fully aware of the state of the existing equipment or its design. This might be compounded by diversity – each site could be different. Maintenance tends to be reactive – fixing things after they break. All this in a business environment, at least in the UK, that is increasingly strictly regulated.
For the future, we hope that technology will give better awareness of the state of the resources, and will support an improved maintenance approach. Also it’s possible to monitor things that customers care about, such as gas emissions. We hope to optimise operations, including chemically dosing sewage based on footfall. Sewage is currently dosed at a fixed rate which can be wasteful. Another optimisation would be to reduce overall energy costs, for example matching usage data with differential energy pricing to ensure that where possible pumps operate in off-peak periods. Making relevant information available to employees where possible will improve their work experience and reduce the cost of unnecessary site visits. These reflect some of the Desired Outcomes that Debbie was talking about. Let’s look at the technology that we trialled in this instance. We installed a Smart Environment gas sensor from Libelium, choosing to measure Ammonia, Hydrogen Sulphide and Methane – key components of sewer gas. We connected this using WiFi. We added a remotely controllable IP camera. Finally a sound sensor to monitor the pumps based on the sound they made. Both of these were connected using Ethernet. The network connection was provided by a 4G router. As well as the sensors on the pumps we installed a WiFi based footfall counting device within the building, to measure the numbers of people visiting. This also used a 4G connection to the cloud. *Since you have a combination of devices, you will be concerned about monitoring these and ensuring their reliability. You want to be sure of building services on proven technology. Security will also be a concern – as well as cyber security, we have unattended equipment so physical security is important. For example covert antennas can be used to reduce the possibility of theft or vandalism of equipment. As well as setting up a service, we have to consider the whole lifecycle, so monitoring, maintenance and eventual decommissioning are all planned for. So, by carefully considering appropriate technology, privacy, reliability, security and the whole lifecycle, we try to avoid some of those Inhibitors to Success that Debbie mentioned.
Obviously if you are collecting data you will have privacy concerns. This is relevant to recording sound, images or collecting WiFi data.
So my top tips for successful Hyperconnected Services: Use proven technologies, or at least ones that you are relatively confident of; Standardise around familiar building blocks; Build on shared services, amortising the cost of the technology; Make use of templated designs; Automate deployment, monitoring and diagnosis; If you compare this to our existing managed network services we can see it as an evolution rather than a revolution. We are applying what is already best practice in service delivery and adjusting where necessary for IoT. I’ve talked about a very practical example but let’s think how the people in this room could apply Hyperconnected Services to their business – Debbie…
Thanks Cam, that was a great example of how connected services have to be considered in IoT delivery
Across all the various elements of an IoT solution there are 3 areas that need careful consideration. Business Outcomes – Services needs to deliver the desired outcomes and benefit for the business and the end customer / user experience. It needs to be clear from the outset what the desired outcome is and this needs to be defined, enabling clear understanding of success or failure of Proof of concept/Value deployments , IoT solutions cannot be technology led but must consider the business, the market, the industry you operate in and co-creation is a great way to deliver real benefit, making bets use of experts from different fields.
Value – the customer needs to obtain “value” from services and value can be quite personal and relates to the benefit that you attach to it, but generally a clear appreciation of the value is key. The other side of the value debate is cost and when developing IoT connected services we have to consider both. for example, it may be costly to deploy thousand of sensors across many, varied locations, the value of the IoT sensor is in the collection and analysis of new and insightful data, allowing an organization to better understand and meet customer needs. And patching/upgrading devices/chips especially when deployed on a wide scale, can quickly eat up large quantities of network bandwidth, making security updates less than cost-effective. But the customer may value security above cost in this instance IoT solutions often begin small and have to provide measurable ROI so when developing connected services for IoT we have to adopt cost effective delivery methods, e.g. offshore delivery, remote management and maintenance, and automation of service tools and processes. This can drive innovation in services such as the Fujitsu Social Command Centre, a new service desk concept using chatbots and automated fixes, rather than a traditional manned service desk
Risk needs to be understood, mitigated and managed in all environments IoT by its very nature where everything is “online” brings security risks that are frequently and publicly debated Ever-smaller, more powerful and more energy-efficient processors make it possible today to attach a chip to almost any kind of device for a nominal cost. The plus side of this is that almost anything can become connected.. The downside is that such low-cost chips come with equally low-cost built-in security – or no security at all. When developing IoT solutions and services security must be built in to development, configuration and ongoing management services and across all layers of the technology stack from applications down to devices.
While devices themselves may not be deemed to in need of “protection” the very fact that they are connected opens a door into an organisation. An example of this was an online betting organisation in the US that was hacked and had customer data stolen – the hackers got in through a connected fish tank!! The next, coming wave of IoT technologies is expected to solve many of these shortcomings with devices that are designed from the start to be contextually aware and intelligent …with security and security services – as well as flexible maintenance, management and even self-healing capabilities built in… but we aren’t there today, so until the technologies deliver that managed security services have to So having considered risk and value and outcomes, we now have to build connected services covering the entire lifecycle of an IoT deployment
To be successful IoT deployments have to be managed through the entire scoping, project and service lifecycle and this may involve a number of vendors/suppliers – An integrator approach is key to helping customers understand the variety of IoT solutions and “players” in the market and how they can meet the business’ needs. IoT consultancy services and a co-creation approach helps businesses define the outcomes and the value they will obtain from a solution, and will need to articulate ROI so that key stakeholders buy in to the deployment. Once this has been achieved we move into planning and projects services, where the technologies can be defined and the timeline and roadmap agreed. Through this process changes to the business model may be identified and Consultancy coupled with industry/market knowledge can provide real value.
Design services are key as many organisations still have limited IoT skills in many areas and working with partners can plug some of those skills gaps. Business might want to implement complete packaged solutions or they may want to build custom functionality within their existing applications, which helps them to capture and process data generated by existing machinery and equipment. Whichever approach a business may prefer they need architecture and development services that can plug their skills gap, remove workloads from internal stretched teams and identify and address some of the key risks associated with IoT development.
Deployment in the IoT world brings additional complexity, due firstly to the sheer number of devices being deployed and secondly, to the types of locations they are deployed into. It’s a move out of the traditional world where servers, desktops, routers were deployed into data centres or at worse, office environments. IoT sensors can be deployed in car parks, agricultural environments (attached to cows!) sewage works etc so it’s a different scenario and brings with it different implications in terms of the end to end service impact
Once “in the field” possibly quite literally! and transmitting data (via a gateway or Edge device) there is a need for ongoing management, not just of devices but of all elements of the solution, many of these are more traditional IT, but with an IoT twist. Cloud or Hybrid IT managed services, network managed services are key elements of the overall IoT solution, after all if they fail the entire thing fails.
The business expectation here is not so different from a traditional IT service. I’ve managed a number of large customer service contracts and ultimately customers want solutions to work and not impact their normal business operations, but the difference is the connected element and he fact that this can’t be a silo’d service
In a traditional IT sense there was an expectation that when something failed it would be managed professionally and resolved quickly, with minimal impact and strong communication This is still the case but actually the expectation is moving more and more into a proactive/pre-emptive world. Not fix on fail, but tell me what would have failed, that you identified it, organized for the replacement part, the upgrade or patch and prevented a business impacting incident. The traditional IT service desk and service management was focused on incident and planned change and in the new world its likely to move to a much more proactive model, where incidents are avoided through monitoring and analysis of data and predictive maintenance tools and based on effective knowledge and problem management, proactive, agile changes are deployed to remove potential issues before they occur – the Social Command Centre which uses AI, virtual agents and cognitive learning to provide a self service model will become more commonplace.
Security as we have discussed, is a key factor in managed services and robust hardware and software support services , which have security inbuilt to ensure that all devices and systems are patched up to date and protected from vulnerabilities is a critical.
All of these services are underpinned by data and analytics. IoT is all about connected things and the information they provide Collecting data is key, but the real future value is the use of machine learning and analytics to answer the “so what” question – probably even before the question is asked?!
Its key that business can obtain access to the full lifecycle of services, they may be delivered in house, by many partners or by one organization owning the integrations
As IoT matures there are a number of areas for service providers and businesses to focus on. IoT is integration-heavy in all aspects of its development resulting in complex and significant testing, quality and monitoring requirements CAMs example illustrated the variety of stakeholders that can be part of an IoT deployment Numerous partners are likely to be involved in most IoT projects, there may be different providers for network and edge services, cloud services, security services and they all need to work well together to achieve the desired results. Development of ecosystems where “partners” can share knowledge and information and will aid the success of the overarching IoT solution. Openness to this approach is growing but there is still some way to go. Traditional IT services and OT systems are typically varied and siloed but as digital/IoT initiatives mature, companies are expecting IT/OT convergence to deliver…. higher performance across all business elements more effective risk management cost containment through centralization and standardization of systems and procurement processes This can be achieve by building a holistic solution, which reduces interoperability issues and creates long term solutions, not a series of one off solutions. There also needs to be a focus on service quality - IoT aims to improve and extend critical services and infrastructure, but it won’t be successful if it disrupts them Business Focus IoT is a digital business re-engineering effort not a single project and organizations should use a technical strategy to plan the deployment of solution components and achieve better delivery Businesses need to be clear about the process to get them from identifying the challenge, confirming that IoT is a solution, delivering a PoC realizing the ROI, and then delivering full scale business transformation IoT changes the operating culture of the organization, including the ways in which different areas work together and the expectations about where and how decisions are made, and we need to recognize that up front Engagement with the groups participating in and impacted by IoT initiatives is vital in order to understand their requirements and the project's technical and operational constraints, if you don’t get buy in you are not likely to succeed
Security incidents the inherent complexity of IoT can prevent technical professionals from understanding how to leverage their existing security and risk assessment capabilities, but as Cam said earlier, build on the processes and services you have Standards & Certification Providers will need to confirm to IoT standards and certifications., currently many of these are still under development , though some are more mature. IIC and Industrie 4.0 to name a couple are devising standards for various elements of the E2E IoT environments, from standard taxonomy and vocabulary to security standards for connected systems. To achieve broad scale success when multiple parties are involved, working from the same hymn sheet is a simple but valuable starting point. And skilled resources who have the combination of accreditations and IoT experience is crucial. Packaged IoT Services, including the technical and service elements are being developed with the focus on predictive and pre-emptive self service becoming the norm to provide IoT service that delivers cost, quality and agility
We’re now going to look at a short video clip from Slingeland Hospital who worked with Fujitsu to co-create a healthcare solution, with very clear outcomes defined, real business focus and see this as a driver for digital transformation within the hospital
IoT isn’t going away, the name might because it will just become the norm as the world of connected devices grows……. While some projects have been challenging to date, the lessons have been learned and connected services have been developed to ensure that IoT deployments are successful and pain points are removed IoT is becoming mission critical for organisations, the benefits are huge and IoT deployments are instrumental in helping businesses transform and become fit for the digital age
So do you know what your key business challenges are? and are you discussing how to tackle them….
You may find some ideas to help you at the exhibition stands or at the co-creation zones. And if Analytics is on your mind join the break out session with Naeem and Christian at2
IoT solutions are made up of various layers of technology, sometimes provide by one organisation, sometimes multiple, some are traditional technologies, some are new. Organsiations are used to partnering for IT and OT services and while many of the services are similar we need to consider where IoT requires a different lense. For example there are vast numbers of sensors and devices, generating huge volumes of network traffic, which means that network fluctuations become critical issues Access authentication becomes a bigger issues and managed security services move to the top of the agenda Monitoring becomes not just about IT but also OT and potentially business level monitoring
Building hyperconnected services for the Internet of Things