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The Most Definitive Guide
To Industrial IoT
Implementation
Technology
& Connectivity
Data Insights Action
Industrial
Assets
Internet of Things is a disruptive technology that enable...
Network
& Cloud
Industrial
Assets
Enterprise
Value
Chain
Big Data
Analytics
IIoT helps merge the Information and Operation...
Steam & water powered production.
Manufacturing was tedious
and outcome depends skilled
labour Standalone/ dedicated devic...
Industry 3.0started with the advancement of electronics technology. With the introduction of program-
mable logic controll...
Industrial IOT Ecosystem
Started with the vision of connected enterprise by
interconnecting the industrial assets through ...
• Wi-Fi
• NFC
• RFID
• Bluetooth
• Telecom Service
Providers
• Industrial internet
• Mobile
Application
Dashboards
• Web I...
Integration of
Automation
devices.
Robust
Environment
Industrial
Standards
Huge Data Volume
from Sensors to
generate more
...
• Predictive & Proactive Maintenance
• Real-time Monitoring
• Asset/resource Optimization
• Remote Diagnosis
Industrial in...
The typical application of real-time monitoring is used in Healthcare industry
where the patients and assets are monitored...
Remote Diagnosis
The remote diagnosis helps to know more about the machine status
and condition when and wherever required...
• Smart Sensors
• Robotics & Automation
• Industrial Internet
• Augmented/Virtual reality
• Big Data Analytics
• Cloud Int...
• Major hardware giants are acquiring companies which have expertise in
software, analytical, cloud & security to have an ...
Major predictions
8 to 18%
over next 5 years
Morgan Stanley predicts
that IIOT will be a signifi
cant driver for industria...
Cost of
Sensors
Cost Reduction over the past 10 years
Industrial IoT - Why now?
Manufacturing contributes to the highest s...
• Power Transmission
& Distribution
• Green Solutions
• Smart Grids
• Mining
• Oil & Gas
• Supply Chain
• Lean
Manufacturi...
$950 Million 2017 RFID tracking Frost & Sullivan
$49.1 Billion 2020 Telematics Allied Market Research
$14.2 Billion 2018 A...
GARTNER
MAREKETS AND
MARKETS IDC
By 2018,
60% of the
G2000 will have
doubled their
productivity by digitally
transforming
...
EMEA
AMERICAS
APAC
36% to 71%
32% to 74%
30% to 67%
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved
Region Rev...
Pain points of the customer
• Loss of production time
• Maintenance cost
• Shortage of skilled labor
• Safety & Security
•...
Connectivity provider
• Lack of network Coverage
• Still evolving Telecom Technologies
• Lack of high bandwidth, low laten...
Industrial IoT opens up tremendous business
opportunities for the entire value chain players.
With the increase in technol...
• Revenue from new business
model-(Product as a Service)
• Sensor market will grow at a higher rate
• Device manufacturers...
Need/benefit of the use case:
Predictive maintenance or condition based main-
tenance helps in maintaining the industrial ...
• Big Data Analytics
• Thermal Imaging
• Vibration Analysis
• Pressure Monitoring
• Sonic & Ultrasonic Analysis
• Emission...
Use Case 1:
Predictive Maintenance
Critical Asset to
be monitored
Importance
Data Required
from Sensors
Types of
Sensor Required
Centrifugal pumps
Compressor...
1. Oil and Gas Industry
Reduce Catastrophic Failures and Breakdown of Critical Assets
Benefits
Return on Investment 10 tim...
Problem Statement
• To reduce the downtime of the industrial assets
• Increase productivity, efficiency by monitoring crit...
Smart Supply Chain & Logistics Management
Use case 2:
Problem Statement
• To trace and trace consignments for a better transparency in shipment
• To increase safety and securit...
Conclusions
Industrial Internet of Things is like a magic wand for the developing
countries as it would provide them an op...
Aditya is a certified Business Analyst/Product Manager, who holds the Vice Chair
position for the IoT work group at TSDSI ...
Articles, Blogs & Webcasts
1. 10 IIOT predictions and beyond-NASSCOM official blog
http://blogs.nasscom.in/10iiotpredictio...
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The Most Definitive guide to Industrial IoT Implementation

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Industrial IoT has the potential of USD 15.3 trillion to the global economy by 2030 subjected to an improvement of 1-1.5%. Industrial Internet is a revolutionary technology that enhances the Industrial environment with the IoT capabilities. IIoT helps to solve the bottlenecks in the business environment, provides operational efficiency, increases productivity and reduces the complexity of the process.
The main benefit of Industrial IoT is the connected enterprise that enhances the visibility across various departments and benefits with a smooth workflow. According to General Electric CEO, Jeff Immelt, IIoT has twice the market potential than that of the consumer IoT.

In this Guide you will know everything about

a) The Connected Factory! Role of IIoT
b) Evolution of IIoT to Industry 4.0
c) Industrial IoT Ecosystem
d) Value Chain Players today and what you can learn from them
e) How IIoT is Different from IoT
f) Technology Drivers and Adoption
g) Market Indicators and why you should jump the Bandwagon NOW!
h) Market Revenues and Areas of Focus
i) The Digitization Wave
j) Real World Industrial IoT Case Studies Including Solutions & Outcomes

Published in: Technology
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The Most Definitive guide to Industrial IoT Implementation

  1. 1. The Most Definitive Guide To Industrial IoT Implementation
  2. 2. Technology & Connectivity Data Insights Action Industrial Assets Internet of Things is a disruptive technology that enables the communication between smart devices and creates better opportunity and new revenue streams providing a better quality of life. Industrial Internet is a revolutionary technology that enhances the Industrial envi- ronment with the IoT capabilities. IIoT helps to solve the bottlenecks in the business environment, provides operational efficiency, increases productivity and reduces the complexity of the process. The main benefit of Industrial IoT is the connected enterprise that enhances the visibility across various departments and benefits with a smooth workflow. IIoT can be visualized as the rise of smart machines with digital capabili- ties that can shift a factory level solution to Internet level. IIoT is a trans- formative manufacturing strategy that helps to improve quality, safety, productivity in an industry. According to the CEO, Jeff Immelt, GE IIoT has twice the market potential than that of the consumer IoT. Industrial IoT has the potential of USD 15.3 trillion to the global economy by 2030 subjected to an improvement of 1-1.5%. The industrial organizations that don’t embrace IIoT will stay disconnected from the evolving market and from customers resulting in huge loss and productivity. Introduction
  3. 3. Network & Cloud Industrial Assets Enterprise Value Chain Big Data Analytics IIoT helps merge the Information and Operational departments of an enterprise or an industry. Merging both improves the visibility across the enterprise. The data is shared with the depart- ments and the required corrective actions can be taken in advance. Big data analytics & cloud support play an important role in the game. The smart sensors attached to the devices generate tremendous amount of data. These data is aggregated and processed to generate valuable insights of the process. Analytics help to screen and analyze the data and cloud support and feature enables mobility that helps remote access and control industrial assets and process. • ERP • CRM • HRM • Logistics • Finance • Sensors • Controllers • Processors • Network Cloud Big Data IT Information OT Information Industrial assets include smart devices, sensors, robotic equipment and other hardware devices. Enter- prise value chain include the major operational process happening in the industry (i.e. from Procurement to finished goods and services, logistics and service) The Industrial IoT (IIoT) Source: GE Percentage of Global Economy that can benefit from the industrial internet 46% Industrial internet potential impact on Energy production 100% Industrial internet potential impact on Global Energy production 44% Vision of IIoT-The connected Enterprise
  4. 4. Steam & water powered production. Manufacturing was tedious and outcome depends skilled labour Standalone/ dedicated devices PLC’s were introduced Use of electronics and IT to achieve further automation of manufacturing. Enterprise functions were not interconnected Based on Cyber physical production system.connected enterprise and automa- tion Collaborative approach Big data Analytics, Cloud Integration Real time Integration First Assembly lines was introduced Electricity powered mass production Industry 1.0 Industry 2.0 Industry 4.0 Industry 3.0 1784 1870 1969 1992 Background Analysis-Evolution of IIOT
  5. 5. Industry 3.0started with the advancement of electronics technology. With the introduction of program- mable logic controllers and other electronic boards, the circuit boards have witnessed massive integration and miniaturization. Industrial robotics also helped to simplify the task and automate the shop floor. Robotics and electronics helped to increase the production but operations remain isolated from the rest of the enterprise. Industry 2.0which was characterized by assembly line introduction. Here the motion of the workers was minimized to the possible extent. Henry ford is regarded as the Father of mass production and the assembly line was introduced in the car manufacturing plant by Ford to improve the productivity using conveyor belt mechanism. The above snapshot gives an idea about the timeline of all the Industrial revolution happened till date. The first industrial revolution happened in 1784 with the invention of steam engines. The manufacturing was purely labor oriented. There were many hurdles to overcome during this scenario. The production process was tiresome and a lot of efforts were taken by the factory workers and staff to complete the process.
  6. 6. Industrial IOT Ecosystem Started with the vision of connected enterprise by interconnecting the industrial assets through the inter- net. The smart devices communicate each other and create valuable insights on the data generated. It helps to generate faster insights and mobility feature with Data analytics and Cloud support. The advantages of IIoT includes asset optimization, production integration, smart monitoring, remote diagnosis, intelligent decision making and the most important feature of Predictive Maintenance. Industry 4.0 Security Services Analytics/ Social Business Applications Connectivity Platforms Intelligent Systems • IIOT Ecosystem consists of smart sensors that are incorporated with the industrial assets. • Platforms consist of middleware that serves the connectivity of edge hardware with other value chain players. • Connectivity includes the technology that is used to interact with the smart devices • Applications include the Web and mobile interface that provide a glimpse of user controls. • Analytics and Social Business includes the Big data Analytics and the Cloud services to generate the insights
  7. 7. • Wi-Fi • NFC • RFID • Bluetooth • Telecom Service Providers • Industrial internet • Mobile Application Dashboards • Web Interfaces • Platform • Middleware Protocols • Big Data Analytics • Interfaces • Security Device Manufacturers Connectivity Provider Software Support Provider Application Web interface • Hardware Manufacturers • Product Developers • Support Team • Embedded OS • Chip Vendors End User System Integrator Cloud Service Providers Device Manufacturers: They produce the smart devices and hardware necessary for the communication. They include hardware manufacturers, Chip design vendors, Embedded OS Vendors, Sensor manufacturers Connectivity Service Providers: They include Telecom Service Providers and an end to end connectivity providers. Wi-Fi, NFC, RFID, Bluetooth are some of the communication technology used in the industrial environment. Industrial internet is designed to meet industrial standards and robust environmental conditions. Software Service Providers: They are the major IT service providers. They supply services like Platform, Middleware Protocols, Big data Analytics, Software services and Security Features to help total ecosystem work smoothly. Mobile/Web Application Interface: They form the IT service Providers who give the service of web interface and mobile dashboard support services to end users to communicate with the smart assets. These interactive platforms help to analyze data, understand the real-time situation Value Chain Players in IIoT
  8. 8. Integration of Automation devices. Robust Environment Industrial Standards Huge Data Volume from Sensors to generate more insights More stringent requirements on security and privacy Industry based customization is required Vision of connected enterprise by connecting various industrial assets with the business process Mission critical refers to data integrity, responsiveness, Predictive maintenance Robust Environment refers to the complexity of industrial environment with physical conditions like hot, cold, noisy etc Industrial Standards are different from that of Consumer applications with industry grade hardware and connectivity solutions Standard solution will not suffice as individual customization is required based on industry Industry environment cannot compromise on data breach, Denial of Service, Malware attacks etc Industrial Standards are different from that of Consumer applications with industry grade hard- ware and connectivity solutions Mission Critical Processes How IIoT is different from other Verticals of IoT
  9. 9. • Predictive & Proactive Maintenance • Real-time Monitoring • Asset/resource Optimization • Remote Diagnosis Industrial internet of things has many rewards in an indus- trial environment. It improves business perspective, opera- tional efficiency and moreover the overall productivity of the industry. The benefits of IIOT can be summarized mainly into four application and is shown in the fig. One of the most important use case of IIoT. Industrial output depends on the machine hours and if the machine fails or an unexpected situation arises then productivity is lowered to a great extent. The main advantage of predictive maintenance is to know more about the machine details and take one step ahead so that the device doesn’t fail. By this approach, the service schedules are planned on the basis of machine condition and usage rather than on the traditional approach of doing service by date. With IIoT trend the industry has witnessed the transition of service from Preventive maintenance to more proactive maintenance and is called as predictive maintenance or condition based maintenance. The main advantages of the predictive maintenance can be summarized as follows • Reduce chances of Catastrophic failure and downtime • Reduce maintenance cost • Faster Root Cause Analysis Predictive Maintenance Lenovo used predictive analytics to better understand warranty claims resulting in 10% to 15 % reduction in warranty costs Advantages of Industrial IOT
  10. 10. The typical application of real-time monitoring is used in Healthcare industry where the patients and assets are monitored. Surveillance and monitoring in industries like oil and gas, mining etc. is a typical use case of IIoT. Real-time monitoring improves safety, track location, engage faster responsive actions in case of an emergency situation. The mobility feature with cloud integration enhances the information flow to even mobile dashboards and portable devices. The advantages can be summarized as follows in incremental revenue (2014) has been realized by GE in helping custom- ers in improving asset performance $1bn With industrial revolution mass production is happening and saving just 1% accounts to a huge amount and the industries are now optimizing their production structures so as to gain these amount. IIoT enhances the production capabilities and in turn, the analytics helps the decision makers to plan accord- ing to the insights. The advantages can be summarized as follows • Optimize production, asset management • Faster time to market with connected Enterprise • Mobility support • Improve safety & security Asset /Resource Optimization Real time Monitoring • Smart Monitoring of assets • Engage faster Emergency Response system • Safety and Security • Real-time Status Update • Track and Trace assets
  11. 11. Remote Diagnosis The remote diagnosis helps to know more about the machine status and condition when and wherever required. Augmented reality features and cloud integration helps the user to view and monitor the machine condition remotely. The cloud feature helps the service personnel to remotely view the hardware and perform the tests. The advantages are summarized as follows • Faster uptime • Predict the fault occurrence • Improves life expectancy of machine • Improves convenience and safety of workers Advantages on the basis of Business perspective • More business insights are generated from sensor data • Faster ROI and revenue from hassle free operations • Track Product Lifecycle Information • Effective utilization of workforce • Forecast demands • Better customer retention & Satisfaction • Dashboards for faster decision-making • Rapid Adaption to changing customer needs Tackle bottlenecks and improving productivity are the main advan- tages of IIOT
  12. 12. • Smart Sensors • Robotics & Automation • Industrial Internet • Augmented/Virtual reality • Big Data Analytics • Cloud Integration • Software applications • Mobile Dashboards • Low power Hardware devices • Scalability of IPv6-3.4X 10^38 IP address • Edge over Competition • Better customer satisfaction & retention through value addition • Shift in customer perspective from product to solution • Opportunities from new business model • Liability to customers and investors • Government Policies like Industrie 4.0, Smart factories, Make in India, Make in China 2025 & smart cities, Japan’s I industrial Value Chain initiative forum • Support of Green initiatives • Rising Energy & crude oil prices • Favorable FDI policies. • Policies by regulatory bodies Major Drivers of IIoT Technology Drivers Business Drivers Macro-Economic Drivers
  13. 13. • Major hardware giants are acquiring companies which have expertise in software, analytical, cloud & security to have an edge over competition and also trying to offer bundled services to end customer • Collaborative or partnership approach of major companies to standardize & launch solutions. Industrial internet consortium was formed and it aims to get the solutions standardized • Conversion of Capital Assets into Operational Assets- Rise of new business model. This is a strategic trend now adopted by most of the product companies. According to the new business model the product will be sold as a service. These companies will now earn from the services that are rendered to the customers rather from selling the product. • Selling Product as a service and bill on pay per use • IDC predicts that by 2018, 40% of the top 100 discrete manufacturers will rely on connected products to provide Products as a Service. • The shift of focus from Product to a service solution • Many Blue chip companies are currently integrating IoT into manufacturing to • Improve productivity • Competitive Advantage over Rivalries • New Revenue streams from business • Industrial internet of things Consortium is trying to address issues like security, standardization and also launched test beds. • Worldwide many conferences, workshops are conducted on the topic • Accelerated adoption of IIoT in regions like in US, Germany, China & Japan. The government has implemented various policies to support the initiatives like smart cities and many pro-growth policies. Industry 4.0 is an initiative by Germany in support of IIoT and is gaining pace. The recent exhibitions that focus on IIoT show that US, Germany, China, Japan, and India are now focusing on this upcoming trends. Major Market trends in IIoT
  14. 14. Major predictions 8 to 18% over next 5 years Morgan Stanley predicts that IIOT will be a signifi cant driver for industrial growth and expects IIOT related spending to increase from 30% of end Users and OEMs are actively using IIOT tools and investing in Projects-ARC Group About 46% of global economy or $32.3 trillion in global output can benefit from industrial internet-GE According to BERG institute the installed base of wireless devices in industrial application crossed 10.3 million connections(2014) and grow to 43.5 million devices 2020) with CAGR ($2.3 Trillion) of IOT Market is expected to consist of devices used in manufacturing. 35% of US Manufac- turers are currently using the data gener- ated by smart sen- sors-Fujitsu By 2025 37% Shift of service strategy from corrective to pre- ventive and predictive maintenance over Manufacturing contribute to the highest share in IOT market followed by healthcare. At present due to the technological advancement and various macro- economic factors the industrial environment is undergoing a rapid disruption with IOT. The need of the industry changes as per the customer requirements and market scenario. The changing industry dynamics has accelerated the need for Optimization of process and hence save the cost of operation without affecting the productivity and efficiency of the process. next 5 years- Frost & Sullivan report
  15. 15. Cost of Sensors Cost Reduction over the past 10 years Industrial IoT - Why now? Manufacturing contributes to the highest share in IoT market followed by healthcare. At present, due to the technological advancement and various macro- economic factors, the industrial environ- ment is undergoing a rapid disruption with IoT. The need of the industry changes as per the cus- tomer requirements and market scenario. The changing industry dynamics has accelerated the need for Optimization of the process and hence save the cost of operation without affecting the productivity and efficiency of the process. The Need of • Operational Efficiency • Edge over Competition • Faster Time to Market • Improve & Boost Productivity • New business & revenue Models • Proactive maintenance. • Connected Enterprise • Improve customer intimacy to next level • Manage Product life cycle in a better way • Generate better insights 15% 15% 11% 11%8% 8% 7% 6% 5% 4% 4% 3% 3% Cost of RAM Cost of Disk Storage Manufacturing Healthcare Insurance Banking & Securites Retail & Wholesale Computing services Government Transportation Utilities Cost of Processing 60x Cost of Bandwidth 40x 0.60 17x21x
  16. 16. • Power Transmission & Distribution • Green Solutions • Smart Grids • Mining • Oil & Gas • Supply Chain • Lean Manufacturing • Smart cities • Government • Banking • Insurance • Commercial Services • Waste Management • Water Treatment • Inventory Management • Smart Shopping 3D systems • Real time Monitoring • Emergency response • Remote Diagnosis • Rail • Aviation & Aeronautics • Marine • Transportation • Traffic • Logistics • Agriculture • Military • Hospitality Energy Other Services Manufacturing Public Services Retail Health Care Mobility Industry Verticals of IIOT Market Segmentation of Industrial IoT
  17. 17. $950 Million 2017 RFID tracking Frost & Sullivan $49.1 Billion 2020 Telematics Allied Market Research $14.2 Billion 2018 Autonomous Robots Transparency Market Research $50 Billion 2018 Building Automation & Controls David Russel Schilling $1 Billion 2020 Collaborative Robots Allied Business Intelligence $24.7 Billion 2019 Maintenance Analytics ABI Research $6.1 Billion 2020 Continuous Emission Monitoring Markets & Markets $8.6 Billion 2020 Additive Manufacturing Allied Market Research $11.7 Billion 2023 Fleet Management Machina Research $3 Billion 2020 Gas Analyzer Markets & Markets $6.1 Billion 2019 Air Quality Monitoring Markets & Markets $4.4 Billion 2019 Logistic Procurement Production Markets & Markets $170 Billion 2020 IoT Cyber Security Cyber Security Ventures $1.5 Billion 2020 Vibration Monitoring Markets & Markets $31.2 Billion 2019 Electronic Access Control Transparency Market Research $5 Billion 2020 Rapid Prototyping Siemens $3.9 Billion 2020 Real Time Location Markets & Markets $26.6 Billion 2020 Manufacturing &Industrial HVAC Markets & Markets Revenue Estimated Year of Estimation SourceArea of Focus US Market $ 6.1 to 7.1 Trillion UK Market $531 Billion Germany Market $700 Billion China $ 1.8 Trillion Source: Accenture Report Market Estimation of Revenues from Industrial IoT
  18. 18. GARTNER MAREKETS AND MARKETS IDC By 2018, 60% of the G2000 will have doubled their productivity by digitally transforming many processes from human based to software based delivery By 2018, 60% of Global companies will integrate IT and OT at the technology, process, security and organization levels to fully realize the value of their IOT investments 25% of manufacturers will generate over half of their revenue from digitally based services IOT Market Size- $157.05Bn(2016) to $661.74Bn(2021) with CAGR of 33.3% Industrial IOT MarketSize- $93.99Bn(2014) to $151.01Bn(2020) with CAGR 8.03% IOT in Manufacturing sector-$4.11Bn(2015) to $13.49Bn(2020) with CAGR 26.9% Predictive Analytics Maket-$2.74Bn(2015) to$9.2Bn(2020) Global IOT security spending will hit $348million in 2016 By 2018 half of the large organization globally will compete using advanced analytics and proprietary algorithm causing disruption By 2020 predictive and prescriptive analytics will attract 40% enterprise. By 2020, addressing compromises in IOT security will have increased security costs to 20% of annual security budgets from less than 1% in 2015 Research Insights Global Industry 4.0 Adoption
  19. 19. EMEA AMERICAS APAC 36% to 71% 32% to 74% 30% to 67% © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved Region Revenue Gains more than 20% Lower Cost more than 20% Increase efficiency more than 20% GLOBAL 35 37 39 57 68 39 50 43 56 AMERICAS ASIA PACIFIC EMEA 41 5539 Source: pwc Level of digitization in 5 years
  20. 20. Pain points of the customer • Loss of production time • Maintenance cost • Shortage of skilled labor • Safety & Security • Cost of production • Rising Energy Cost • Competition • Quality of production • Customized Solution • Cyber Security & Data Privacy • Standardization Issues • Uncertainty Of Roi & Profit • Fragmented Market • Interoperability • Aging Workforce End user expectation • Digitalization • New service models • Reduced total ownership cost • Mass personalization • Sustainable production • Agile supply chain • Cyber security and Data Privacy are the prime concern – By 2020, a black market exceeding $5 billion will exist to sell fake sensor and video data enabling criminal activity and personal privacy-Gartner • Lack of Standardization – Heterogeneity of Hardware and software result in standalone solutions • Uncertainty of ROI on new investments & profitability – Companies are skeptical about new investment • M2M efforts are Fragmented and domain specific • Lack of interoperability • Aging Workforce • Rapid evolution of technology- delay large investments by companies – Changing technology • Physical environmental conditions of device at industrial environment • Chip designs to accommodate various needs based on complexity • Lack of global internet connectivity • Change Management-cultural issues- • Lack of expertise in field Major Challenges for IIoT Major Challenges • Rapid Evolution Of Technology • Industrial Environment • Lack Of Global Connectivity • Change Management • Lack Of Expertize In Field
  21. 21. Connectivity provider • Lack of network Coverage • Still evolving Telecom Technologies • Lack of high bandwidth, low latency network • Threat from OTT Players Device manufacturer • Product Piracy and IP theft-because of reverse Engineering. • Rapid evolution of technology • Integration with Legacy equipment • Precision, accuracy, lifetime, low power requirements Software service provider • Cyber Security Issues • Lack of IT competency • Low entry barriers and many players • Level of customization based on industry • Dynamic industry requirements cloud services & analytics • Mission critical Applications • Response time • Lack of skill & expertise • Remote accessibility • Integration with existing infrastructure Device Manufacturers • Revenue from sale of huge volume of Sensors • Increased sales of hardware devices Connectivity Provider • Revenue from Industrial internet Solutions • Revenue from deployments of Hardware Solutions Software Support & Platform • Revenues from Software, platform, Applications, consulting services • Revenues from middleware, System Integrators Cloud & Big data Analytics • Real time Information processing • Revenue from cloud - PaaS, SaaS, IaaS • Medical Sensor Market-$8.21Bn(2015) to $15.01Bn(2022) with CAGR 8.5% • Temperature Sensor Market-$5.13Bn(2016) to $6.79Bn(2022) with CAGR 4.8% • Pressure Sensor Market-$6.7Bn(2014) to $9.48Bn(2020) with CAGR 5.9% • Motion Sensor Market-$3.10Bn(2014) to $6.45Bn(2020) with CAGR 12.93% • IOT chip Market-$4.85Bn(2015) to $10.78Bn(2022) with CAGR 11.5% • Embedded System market-152.94Bn(2014) to 233.13Bn(2021) with CAGR 6.4% • Cellular M2M Market-$3.22Bn(2015) to $11.50Bn(2020) with CAGR 29% • Global Wi fi Market-$14.8Bn(2015) to $33.6Bn(2020) with CAGR 17.8% • Heterogeneous Networks Market-$12.5Bn(2015) to $25.34Bn(2020) with CAGR 15.19% • IOT Middleware Market-$3.86Bn(2015) to $ 11.58Bn(2020) with CAGR 24.6% • Workforce Analytics Market-$422.5Mn(2015) to 860.4Mn(2020) with CAGR 15.3% • Big data Market-$28.65Bn(2016) to $66.79Bn(2021) with CAGR 18.45% • Hybrid Cloud Market-$91.74Bn(2021) with CAGR 22.5% How value chain players are benefited
  22. 22. Industrial IoT opens up tremendous business opportunities for the entire value chain players. With the increase in technological penetration and customers gaining confidence in technology more and more deployments are expected to see. With the rise of Industrial IoT the conventional Business model is changing from Product to Service approach. The data generated from industrial process hold lot of value and now industries are behind gathering this information and generating insights out of it. Device manufacturer poses great growing opportu- nities among all the players. According to Mckinsey report, semiconductor industry will have a boom with respect to the growing sensor requirements. Business Opportunity & Market Perspective
  23. 23. • Revenue from new business model-(Product as a Service) • Sensor market will grow at a higher rate • Device manufacturers and semiconductor will show an increasing trend • Government support • Virtual Reality & augmented reality market • Tremendous opportunity for startup companies Business Opportunity Pay per use and subscription based services turning machinery from Capex to Opex for Manufacturers-McKinsey report • The Product as a Service model will become the norm in many industries. Over 70% of Fortune 500 companies will operate Product as a Service busi ness models, with the Automotive Industry and Electronics Industry expected to lead this revolution at 15% and 13% respectively-Frost & Sullivan Report • The automotive and industrial markets for semiconductors offer significant growth potential.-pwc report • Government initiatives for Smart cities and new Manufacturing revolution have created an optimistic market for semiconductor, sensors and device market. • Virtual & augmented reality market is expected to hit $150 bn by 2020 with AR with a share of $120bn and VR of $30bn-Source:Diigi-Capital • Fragmented market opens up tremendous growth opportunity for startup companies.
  24. 24. Need/benefit of the use case: Predictive maintenance or condition based main- tenance helps in maintaining the industrial assets over time with the help of smart sensors that enable better visibility into the assets backed up with Analytics to have a better prediction on situations that may encounter in the near future. Predictive maintenance helps to generate insights about the machine well in advance before the system undergoes a critical breakdown or a maintenance call. This methodology of tracking the machine conditions help to increase uptime and usability of the machine. Predictive and prescriptive maintenance will dominate the Analyt- ics market in next five years. Revenue from Predictive Analytics is expected to be 60% of the Analytics business by 2019.(Source ABIResearch) • To increase productivity • Greater Asset Visibility & availability • Improve reliability and performance of the assets • Better cost savings from unscheduled services and breakdowns • Gain more insights from customer regarding the usage and their premises • Less downtime and maximize utilization rate by avoiding catastrophic failures • Improve life expectancy of the machine and hence accelerate faster ROI recovery • Optimize operation, Quality and maintenance of industrial assets. • Optimize spares inventory reducing Opex Reactive Approach Pro-active Approach Industries: Manufacturing, Aviation, Oil and Gas, Energy, Power & Utilities, Automotive Use cases of industrial IoT Predictive maintenance
  25. 25. • Big Data Analytics • Thermal Imaging • Vibration Analysis • Pressure Monitoring • Sonic & Ultrasonic Analysis • Emission monitoring • Lubricating Oil Analysis • Historical Data Analysis How it is done • Big data Analytics • Precision Sensors • IPV6 & Industrial Internet • Mobility • Cloud Applications • Dynamic and complex operating conditions • Pre-existing legacy equipment integration • Cultural issues and openness to change • Cost of implementation • Security and Data Privacy Market Readiness for Predictive maintenance Operational Predictive Maintenance market is estimated to grow from $582.3 million (2015) to $1.88 Billion by (2020) at a CAGR of 26.5%. The reason for the growth of predictive maintenance market is because of the capabili- ties of smart sensors and analytics software to analyze and precisely predict the asset failure enabling the enterprise to plan well in advance before the event and save time, cost and efforts. As per the research conducted by Markets and Markets research North America is expected to hold the largest market share and would dominate the operational predictive maintenance market from 2015 to 2020 due to the presence of large solution vendors. APAC offers potential growth opportunities for the operational predictive maintenance market. Manufacturing Vertical is expected to have the largest market size. Manufacturers see predictive maintenance as a strategy to lower the maintenance cost and thereby increase the profitability. IBM and National Instruments along with IIC has imple- mented test beds to explore the application of predictive and condition based maintenance for industries through a cloud-based solution. The system collects information from smart machine sensors analyze the data and integrate the information to determine the machine health status. Technicians or field staff will be receive alerts regarding the process. With the cloud integration there is an addition- al capability of 360-degree view ability of process. Drivers Challenges Assets / Hardware Devices Smart Sensors Analyze useful data Big data Analytics Insights Cloud Services Actionable Outcomes Historical Data Sensor Characteristic High Level Solution Architecture
  26. 26. Use Case 1: Predictive Maintenance
  27. 27. Critical Asset to be monitored Importance Data Required from Sensors Types of Sensor Required Centrifugal pumps Compressors Turbines Static Equipment Industry Applicable: Manufacturing, Oil and Gas, Automotive, Healthcare, Aviation • To resolve unproductive and unplanned downtime happening in Oil and Gas exploration by monitoring the critical assets. • To ensure better utilization rate of critical assets • To increase the efficiency, productivity, and life time of the assets. • To reduce the losses that occur during processing, transportation of oil. • To reduce the accidents and catastrophic events happening at Rigs Centrifugal pumps are used to pump crude oil from offshore tankers to the port, crude oil to segregation plant, pump final product for delivery To boost the pressure to pump it through pipeline Power Generation for drilling, digging, backup etc Valves, Boilers, Furnaces, Heat exchangers, pipeline are intermediate devices Monitor pressure imbal- ances that may lead to wear & tear Excess pressure may lead to stress in impeller shaft and create vibrations. Accurate power measurement details based on current and voltage sensors. Flow measurement using non- intrusive ultrasonic sensors. Temperature monitoring of equipment. RPM of the pump Monitoring Gas pressure, Temperature of the unit. Monitor leakages and wear and tear of shafts associated with the unit Electrical Characteristics ( Current & Voltage), Temperature, Velocity and RPM of Turbine, Exhaust Flow rate, Exhaust temperature, pressure Temperature, pressure, humidity information, leak detection in pipeline Temperature Pressure Gas sensors Humidity(oil) Temperature Pressure(gas) Vibration Gas Sensors Current & Voltage Temperature RPM/Torque Flow Pressure(oil pressure) Temperature Vibration Current & Voltage Flow RPM/Torque Problem Statement: 1. Industry: Oil and Gas
  28. 28. 1. Oil and Gas Industry Reduce Catastrophic Failures and Breakdown of Critical Assets Benefits Return on Investment 10 times Reduction in Maintenance Cost 25 to 30% Elimination of Breakdown 70 to 75% Reduction in Downtime 35 to 45% Increase in Production 20 to 25% Average Time spend on Maintenance Activities 15% Source: US Department of Energy Predictive Analytics in Os and Gas Asset Maintenance Optimization in exploration Production Optimization Risk Assessment Optimisation in Drilling Upstream Midstream Downstream Transport Optimization Pipeline Risk Assessment Storage Optimization Demand Optimization Trade Optimization Price Optimization Market Analysis Marketing Effectiveness (C) predictiveanalyticstoday.com Measurements are taken from various sensors to observe the physical parameters like temperature, pressure, Vibration, Electrical Characteristics and operational of various industri- al assets. The information generated from the sensors are aggregated sorted and filtered to generate valuable insights about the machine condition. Based on the insights necessary steps are taken to prevent the unplanned downtime for rotating equipment, centrifugal pumps, compressors, turbines. Solution:
  29. 29. Problem Statement • To reduce the downtime of the industrial assets • Increase productivity, efficiency by monitoring critical assets • To plan the downtime for service in advance • To reduce service cost and better service resource allocation 2. Manufacturing Critical Asset to be monitored Importance Data Required from Sensors Types of Sensor Required Automated Robots Pneumatic systems & hydraulics Rotary Equipment CNC machines RPM Measurement RPM Sensors (Hall Effect or inductive type), grease sensors To help automate the process Helps in moving or lifting assets Equipment for lubrication, cooling system, drilling Vibration Analysis , Electrical Characteristics, Acoustic Analyzers to measure friction, Velocity and RPM measurement sensors, lubrication Air Pressure Monitoring, temperature, lubrication analysis . Detect unwanted sounds Pressure (air Flow (air) Temperature Lubrication Analysis. Acoustic Sensors Grease sensors, lubrication, current and voltage sensors Oil Analysis, Lubrication Analysis, Noise, Vibration Oil Quality Lubrication analysis Lathes that help in desired products as per computer aided designs Solution: To measure the equipment characteristics from various sensor devices. Smart sensors are deployed over the required hardware to sense data on physical, environmental conditions, etc. These include information like Temperature of the devices, pressure sensors of valves, Vibration Characteristics, Oil Analysis, Current & Voltage characteristics. It provides improvement in the production line, Field service and also on customer premises for warranty claims. Generate valuable insights from the unstructured data to facilitate proactive decision makings Benefits • Less downtime which can be planned with increased productivity • Less inventory cost for spares • Smart allocation of costlier service resources • Save cost and time • Lean manufacturing and faster time to market • Extended life of Plant Equipment
  30. 30. Smart Supply Chain & Logistics Management Use case 2:
  31. 31. Problem Statement • To trace and trace consignments for a better transparency in shipment • To increase safety and security for sensitive assets • To avoid counterfeiting of product within supply chain • To ensure better asset management & smart warehouse • To avoid situation of dead stock and have better inventory management Industries Applicable: Retail, Logistics Critical Asset to be monitored Data Required from Sensors Importance Types of Sensor Required Solution: To provide real-time monitoring of Supply chain activities including Logistics, Smart warehouse operations, asset tracking and tracing with RFID tags, GPS. Physical security of the assets in the warehouse with sensors to detect temperature, humidity, Tilt angle sensors, track estimated the life of the consignment for liquidation and inventory management, reduce factory accidents (forklift accidents) by observing and monitoring the driver behavior. Augmented reality enabled wearable gadgets aid better vision in picking the right product. Benefits: Track and trace assets Faster & planned delivery. Better traffic & fleet management Better Inventory management Warehouse Environment Forklifts and other machineries Warehouse Stacks Security of the Warehouse Security of the Warehouse Physical storage conditions of consignment in warehouse and safety for the workers Helps in moving goods within the warehouse Goods need to be monitored and stored according to the prescribed direction of storage. Generate information from storage stack To monitor and safeguard the assets. Recording using IP enabled camera To monitor and safeguard the assets. Recording using IP enabled camera Motion detection, continuous monitoring, Occupancy & motion detection sensors Occupancy & motion detection sensors Motion detection, continuous monitoring, Information regarding the product life expectancy, RFID tags to show batch number and related information. Confirming the seating of goods in stack Temperature Sensors, RFID detectors, Position Sensors, Humidity Sensors, position sensors Real time monitoring, Oil Analysis, sensors to detect pedestrians and obstacles Infrared sensors, Oil Sensors, Occupancy and motion sensors Temperature, Humidity, RFID tags, smoke detectors, Lighting, AC and power information Temperature Sensors, Humidity Sensors, RFID tags, Light Sensors,
  32. 32. Conclusions Industrial Internet of Things is like a magic wand for the developing countries as it would provide them an opportunity to leapfrog developed countries in digital infrastructure and technology. Developing countries may leverage the state-of-art embedded sensors and connectivity from the outset, which would enable the next wave of smart services. Technology providers should begin to enforce best security practices and develop common technology test beds where myriad of devices can work together. Tech- nology Adopters should reshape their whole business model and strategies to partner with relevant ecosystem partners to build their capabilities. The industries, government, and academia need to collaborate on fundamental technology chal- lenges related to security, interoperability, and management of systemic risks. The Industrial IoT would transform how organizations look at operational efficiency. Companies searching for new business opportunity leveraging IIoT would be able to achieve this through 3 approaches • Boosting the revenues by creating new hybrid business models thereby increasing the production • Investing in Intelligent technologies and building technology test beds in a holistic manner to fuel innovation • Transform workforce operational efficiency The value of Industrial IoT would be realized by the confluence of a multitude of technologies enablers such as Cloud, Big data, mobility, and analytics. This makes it imperative for an organization to invest in End to End Security. IT and OT leaders responsible for security policies should enforce security throughout the supply chain and establish strong corporate buy-in and governance.
  33. 33. Aditya is a certified Business Analyst/Product Manager, who holds the Vice Chair position for the IoT work group at TSDSI -TEC , a IoT specific standard development organization . He is a certified Business Analytics , ITIL v3, Business Continuity Man- agement and Business Process Framework Professional. He has a rich experience in technology R&D, Product Management and Solution Offerings with special focus on Internet of Things domain. Aditya holds a MBA degree from Symbiosis International University with a Bachelors’ degree in Computer Science Engineering. He has authored multiple whitepapers and article under IoT & you can reach him at aditya.basu@happiestminds.com “ Mithun Jacob did his summer Internship with Happiest Minds Technologies working on the Internet of Things domain. He is presently pursuing his MBA from Symbiosis Institute of Telecom Management, Pune and is an ITIL v3 certified professional. About The Authors
  34. 34. Articles, Blogs & Webcasts 1. 10 IIOT predictions and beyond-NASSCOM official blog http://blogs.nasscom.in/10iiotpredictionsfor2016andbeyond/ 2. India Renewing Focus on Growth in Manufacturing and Investing to Become Global Innovation Hub- BCG Press Release http://www.bcgindia.com/media/PressReleaseDetails.aspx?id=tcm:87206267 3. Industrial IoT Enables New Revenue Sources for Equipment Manufacturers-NASSCOM Official Blog http://blogs.nasscom.in/industrialiotenablesnewrevenuesourcesforequipmentmanufacturers/ 4. Headwinds in the Machinery Market Create Incentives for OEMs to Increase Service Revenues through IIoT- ARC insights http://hannovermesse.events/wp-content/uploads/2016/03/Head winds-in-the-Machinery-Market-Create-Incetives-for-OEMs-to-I crease-Service- Revenues-through-IIoT.pdf 5. Machine Learning Changing the Economics of Business, Industry, and Society- ARC insights http://hannovermesse.events/wp-content/uploads/2016/03 /Machine-Learning-Changing-the-Economics-of-Business-Industry-and-Society.pdf 6. Industrial Internet of Things, Industry 4.0 & Information Integration November 2015 http://www.controleng.com/single-article/industrial-intnet-of-things-industry- 40/3128ddb02a65498e0cbf8f74a75ce43c.html 7. Webcast-Cyber security technologies and strategies, tips for industrial control systems-Control Engineering 8. Webcast- Industrial Internet of Things (IIoT) and Industry 4.0 webcast: Overview and practical advice for today-Control Engineering 9. Webcast-Information integration and industrial internet of things-Control Engineering 10. Webcast –IOT Integration Consideration-Control Engineering 11. Webcast - INDUSTRIE 4.0 CHANCES AND CHALLENGES FOR SME Prof. Dr.-Ing. Thomas Bauernhansl April 25th, 2016 12. Cellular internet of things-5g America http://www.4gamericas.org/en/resources/infographics/cellular-internet-things-ciot/ 13. Enabling intelligent decisions in the internet of things-IOT & Business https://www.bosch-si.com/internet-of-things/iot-down loads/iot-business-rules-white-paper/intelligent- decisions-internet-things.html 14. 2016 Digital Report on IIOT-CFE Media 15. Industrial internet of things-unleashing the potential of connected products and services- World Economic Forum 2015 http://www3.weforum.org/docs/WEFUSA_IndustrialInternet_Report2015.pdf 16. Advice on integrating legacy technology with IIOT-Control Engineering http://www.controleng.com/single-article/advice-on- integrating-legacy-technology-with-iiot/c98f4dc070dd191b1a156bedc03439c2.html 17. Essentials of industrial Ethernet- Turck industrial automation http://www.putmanmedia.com/assets/Essentials_Ethernet_Turck.pdf 17. A new age of industrial production The Internet of Things, Services and People-ABB http://new.abb.com/docs/default-source/technology/a-new-age-of-industrial-production--- iotsp.pdf?sfvrsn=2 18. Process automation and the IOT : Yokogawa’s Vigilant plant approach to the connected Enterprise-ARC White Paper 19. Man and Machine in industry 4.0.How will technology transform the industrial workforce through 2025?-BCG http://www.bcg.it/documents/file197250.pdf 20. Changing the game in industrial goods through Digital Services-BCG https://www.bcgperspectives.com/content/articles/engneered-products-project-business- automotive-changing-game-industrial-goods-through-digital-services/ 21. Various industrial reports from Markets and markets, IDC, Gartner References

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