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Finnish understanding regarding
Industrial Internet
27.5.2014
Industrie 4.0 & Industrial Internet Collaboration
Forum 2014 at Aachen
Heikki Ailisto, Research Professor
VTT Technical Research Centre of Finland
2222/05/2014
Industrial internet is a part of “through
digitalization” – everything goes digital
Industrial internet means
systematically applying sensor,
communication and data
analysis technologies for
improving productivity and
creating new business.
All objects have
unique digital
identity.
All objects have
unique digital
identity.
Smart things have
connectivity.
Smart things have
connectivity.
Internet of Things
is a digital
representation of
the real world.
Internet of Things
is a digital
representation of
the real world.
322/05/2014 3
202020101990 - IndustryC
IndustryA
IndustryB
Fixed/wireless
connectivity
(heterogenous)
Silo1HVAC
Silo2Lighting
Silo3Accesscontrol
SiloX
Silos within one domain
and company (systems do
not share data), case FM.
Business domains in silos.
Waste of resources because
of duplicating systems, ICT.Facilitymngmt
What is new – remote monitoring and control has been here for
decades: Trend from M2M silos to IoT, or Industrial Internet
(but this is not the whole picture…)
Local smartness
Smart machines with
sensing and connectivity
Act:
Optimize
Control
Manage
Interoperability, connectivity, access
control, service discovery, privacy
(IoT platform)
Fixed/wireless
connectivity
(Internet)
App App App App
intelligent machines smart sensors
Unique ID for every object
Industrial internet broader benefits: Sharing information
between systems, within companies, and even between
domains; Metcalfe’s law V ~ N2,
advanced data analytics and DSS bring not only savings but
new business.
Enabling new business models, e.g. from sale to pay-by-use
422/05/2014 4
Affordable technology is here
Why is it happening now?
Computing power grows
Smart machines
Intelligent analytics, decision support systems
Big data
“Store everything” paradigm (dirty cheap GB)
Connectivity like newer before
Internet IPv6, no limit to nodes
IoT paradigm – connected objects
Low power communication
Identify and track everything (QR, RFID, GPS)
Sensing everything in real time
Extremely low cost and small
Connected
Advanced sensing
Bio-mimicing
People are ready for it
Competences
Average person has good
competences with digital services
and products.
Acceptance
People in all age groups use web,
smart phones, car computers at
home and on free time.
Digital natives, Y-generation, not
only accept, they expect!
5
What does it mean: Views of industry leaders
Although these visions share a lot, they also have different emphasis and
focus.
Due to the nature of Finnish industry, i.e. investment-type machinery and
ICT, we tend to emphasize asset management type of approach.
622/05/2014 6
IoT field and players
Communication
hardware
Cisco, Ericsson,
Nokia, Huawei..
Communication
& connectivity service
Vodafone, KDDI,
TS, Elisa
IoT service
platform
Oracle, IBM, SAP, Axeda,
Tieto, CGI, Wapice, Oliotalo..
“The Actual
Business” Asset /
Brand
owner
System
integrators
Sensors
actuators, RFID
Actuator X Sensor X VTT Node RFID X
Security&privacy
Vertical
playersSchneiderGE
Asset
management
service
companies
OEM
system +
service
providers
Siemens
Intelligent assets (with sensors, actuators, ID, connectivity)
Many companies here want to become “vertical players”
Industrial
automation
Honeywell,
Siemens,
Rockwell
Metso
Automation, ..
Wild cards: Google
and Microsoft, Apple
Telcos, and others
too, want to expand
their role
722/05/2014 7
Challenges
Identifying and exploiting business benefit.
Finding win-win solutions in value networks vs.
fighting who owns the data, who can use it.
Building and deploying applications fully
leveraging data from multiple sources
Cyber security and privacy threats
Closed / fragmented / lock-in solutions
(vs. open internet-type solutions)
Installing and managing 50 B smart devices
Powering 1 T sensors
8
The opportunity of Industrial
Internet for Finnish industry
9
“Industrial Internet is not an opportunity
– it is a must!”
Finnish CEO
10
Here’s what Google gets for its money:
A Product Master Who Beat Apple to the
Next Big Thing
Before co-founding Nest, CEO Tony Fadell
was best known for designing the iPod, ...
When Google announced yesterday its $3.2
billion cash purchase of Nest, the jokes flew. “If
your house is burning down you’ll now get
gmail ads for fire extinguishers,” Valleywag’s
Sam Bidd
What Google Really Gets Out of
Buying Nest for $3.2 Billion
BY MARCUS WOHLSEN, Wired Magazine
01.14.2014
Nest Learning Thermostat
The bottom line: The
second generation of the
energy-saving Nest
Learning Thermostat puts
this device even further
ahead of the (nearly
nonexistent) competition.Is this a threat or opportunity to established
companies?
1122/05/2014 11
Finnish strengths
World class machinery industry in certain sectors,
technology-savvy, able to create new services.
ICT and electronics sector looking for new
business opportunities after the disruption of
Nokia.
1222/05/2014 12
RDI activity
EU Horizon 2020: Cyber Physical Systems,
Internet of Things
ECSEL PPP: embedded systems, IoT,
smart systems, critical systems
Digile SHOK: IoT, D2I
FIMECC: S-STEP, S4Fleet
VTT Productivity with IoT
Tekes program on industrial internet (TBC)
1322/05/2014 13
Module 4.1
Ismo Vessonen, Pirkka Tukeva
Global asset management
• CBM
• Remote operation,
monitoring
• Digital spare parts
Module 4.2.
Miimu Airaksinen
Intelligent infrastructures
• Smart lighting (Janne Aikio,
Marko Jurvansuu)
• Responsive buildings
Module 4.3
Anu Seisto
Digital society
• Interoperable services
• Digital infrastructure
Module 3. Information management and analysis, cyber security, Heli Helaakoski
Module 2. Connectivity, Pertti Raatikainen
Module 1. Networked sensors, Jukka Hast From real world phenomena to digital data
Program Lead, Heikki Ailisto
Business development, Petteri Alahuhta
Industrial internet is a VTT priority:
ProIoT program – 90 M€ RDI investment 2013-16
1422/05/2014 14
Conclusion
Industrial internet is coming. It will disrupt most businesses and public
services during next 3 to 15 years.
All the major Finnish companies, whether machinery, process
or ICT have recognized this, at least verbally.
Finnish view emphasizes asset management
– as opposed tp manufacturing
Risks and threats
Talk does not lead to action
Major information security breaches (company level)
Opportunities
Improved competitiveness through offering productivity to customers
Open new business or take somebody else’s old one
What we should do
Prepare IoT/II strategy – think networks, can’t do it alone.
Analyze your services, products and processes. How does industrial internet
impact them? Is the game going to change? Should we change it?
Start early with experiments, learn from experience, also from setbacks.
15
TECHNOLOGY FOR BUSINESS
Contact: Heikki Ailisto
heikki.ailisto AT vtt.fi
+358 40 555 0726

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Finnish view of industrial internet

  • 1. Finnish understanding regarding Industrial Internet 27.5.2014 Industrie 4.0 & Industrial Internet Collaboration Forum 2014 at Aachen Heikki Ailisto, Research Professor VTT Technical Research Centre of Finland
  • 2. 2222/05/2014 Industrial internet is a part of “through digitalization” – everything goes digital Industrial internet means systematically applying sensor, communication and data analysis technologies for improving productivity and creating new business. All objects have unique digital identity. All objects have unique digital identity. Smart things have connectivity. Smart things have connectivity. Internet of Things is a digital representation of the real world. Internet of Things is a digital representation of the real world.
  • 3. 322/05/2014 3 202020101990 - IndustryC IndustryA IndustryB Fixed/wireless connectivity (heterogenous) Silo1HVAC Silo2Lighting Silo3Accesscontrol SiloX Silos within one domain and company (systems do not share data), case FM. Business domains in silos. Waste of resources because of duplicating systems, ICT.Facilitymngmt What is new – remote monitoring and control has been here for decades: Trend from M2M silos to IoT, or Industrial Internet (but this is not the whole picture…) Local smartness Smart machines with sensing and connectivity Act: Optimize Control Manage Interoperability, connectivity, access control, service discovery, privacy (IoT platform) Fixed/wireless connectivity (Internet) App App App App intelligent machines smart sensors Unique ID for every object Industrial internet broader benefits: Sharing information between systems, within companies, and even between domains; Metcalfe’s law V ~ N2, advanced data analytics and DSS bring not only savings but new business. Enabling new business models, e.g. from sale to pay-by-use
  • 4. 422/05/2014 4 Affordable technology is here Why is it happening now? Computing power grows Smart machines Intelligent analytics, decision support systems Big data “Store everything” paradigm (dirty cheap GB) Connectivity like newer before Internet IPv6, no limit to nodes IoT paradigm – connected objects Low power communication Identify and track everything (QR, RFID, GPS) Sensing everything in real time Extremely low cost and small Connected Advanced sensing Bio-mimicing People are ready for it Competences Average person has good competences with digital services and products. Acceptance People in all age groups use web, smart phones, car computers at home and on free time. Digital natives, Y-generation, not only accept, they expect!
  • 5. 5 What does it mean: Views of industry leaders Although these visions share a lot, they also have different emphasis and focus. Due to the nature of Finnish industry, i.e. investment-type machinery and ICT, we tend to emphasize asset management type of approach.
  • 6. 622/05/2014 6 IoT field and players Communication hardware Cisco, Ericsson, Nokia, Huawei.. Communication & connectivity service Vodafone, KDDI, TS, Elisa IoT service platform Oracle, IBM, SAP, Axeda, Tieto, CGI, Wapice, Oliotalo.. “The Actual Business” Asset / Brand owner System integrators Sensors actuators, RFID Actuator X Sensor X VTT Node RFID X Security&privacy Vertical playersSchneiderGE Asset management service companies OEM system + service providers Siemens Intelligent assets (with sensors, actuators, ID, connectivity) Many companies here want to become “vertical players” Industrial automation Honeywell, Siemens, Rockwell Metso Automation, .. Wild cards: Google and Microsoft, Apple Telcos, and others too, want to expand their role
  • 7. 722/05/2014 7 Challenges Identifying and exploiting business benefit. Finding win-win solutions in value networks vs. fighting who owns the data, who can use it. Building and deploying applications fully leveraging data from multiple sources Cyber security and privacy threats Closed / fragmented / lock-in solutions (vs. open internet-type solutions) Installing and managing 50 B smart devices Powering 1 T sensors
  • 8. 8 The opportunity of Industrial Internet for Finnish industry
  • 9. 9 “Industrial Internet is not an opportunity – it is a must!” Finnish CEO
  • 10. 10 Here’s what Google gets for its money: A Product Master Who Beat Apple to the Next Big Thing Before co-founding Nest, CEO Tony Fadell was best known for designing the iPod, ... When Google announced yesterday its $3.2 billion cash purchase of Nest, the jokes flew. “If your house is burning down you’ll now get gmail ads for fire extinguishers,” Valleywag’s Sam Bidd What Google Really Gets Out of Buying Nest for $3.2 Billion BY MARCUS WOHLSEN, Wired Magazine 01.14.2014 Nest Learning Thermostat The bottom line: The second generation of the energy-saving Nest Learning Thermostat puts this device even further ahead of the (nearly nonexistent) competition.Is this a threat or opportunity to established companies?
  • 11. 1122/05/2014 11 Finnish strengths World class machinery industry in certain sectors, technology-savvy, able to create new services. ICT and electronics sector looking for new business opportunities after the disruption of Nokia.
  • 12. 1222/05/2014 12 RDI activity EU Horizon 2020: Cyber Physical Systems, Internet of Things ECSEL PPP: embedded systems, IoT, smart systems, critical systems Digile SHOK: IoT, D2I FIMECC: S-STEP, S4Fleet VTT Productivity with IoT Tekes program on industrial internet (TBC)
  • 13. 1322/05/2014 13 Module 4.1 Ismo Vessonen, Pirkka Tukeva Global asset management • CBM • Remote operation, monitoring • Digital spare parts Module 4.2. Miimu Airaksinen Intelligent infrastructures • Smart lighting (Janne Aikio, Marko Jurvansuu) • Responsive buildings Module 4.3 Anu Seisto Digital society • Interoperable services • Digital infrastructure Module 3. Information management and analysis, cyber security, Heli Helaakoski Module 2. Connectivity, Pertti Raatikainen Module 1. Networked sensors, Jukka Hast From real world phenomena to digital data Program Lead, Heikki Ailisto Business development, Petteri Alahuhta Industrial internet is a VTT priority: ProIoT program – 90 M€ RDI investment 2013-16
  • 14. 1422/05/2014 14 Conclusion Industrial internet is coming. It will disrupt most businesses and public services during next 3 to 15 years. All the major Finnish companies, whether machinery, process or ICT have recognized this, at least verbally. Finnish view emphasizes asset management – as opposed tp manufacturing Risks and threats Talk does not lead to action Major information security breaches (company level) Opportunities Improved competitiveness through offering productivity to customers Open new business or take somebody else’s old one What we should do Prepare IoT/II strategy – think networks, can’t do it alone. Analyze your services, products and processes. How does industrial internet impact them? Is the game going to change? Should we change it? Start early with experiments, learn from experience, also from setbacks.
  • 15. 15 TECHNOLOGY FOR BUSINESS Contact: Heikki Ailisto heikki.ailisto AT vtt.fi +358 40 555 0726