This comprehensive look at the Internet of Things shows how the tech has progressed over the last 25 years, as well as how you can best utilize IoT changes to reduce costs and increase ROI.

2. Introduction
The Progression of Industrial IoT Over 25+ Years

3. The Industrial IoT Market
 Many Executives Still View IIoT as Merely “Hype”, Rather Than Practical
Reality—But It’s Not Simply Hype Anymore
 7.3 Billion Business & Industrial Devices and Assets Will Be Connected by
2020 (Gartner)
 Market for Industrial IoT (IIoT) Will Range Between $100 Billion to $150
Billion by 2020 (IDC, Accenture, Morgan Stanley, IndustryARC, GE)
 Expect Investment in IIoT Reach $60 Trillion Over the Next 15 Years (IDC,
Accenture, Morgan Stanley, IndustryARC, GE)

4. Industrial IoT Market Growth Projections
7.3
Billion
Connected Business &
Industrial Devices by
2020
150
Billion USD
IIoT Market By 2020
27.7
% CAGR
Global Market
Growth Projected
2015 – 2021
60Billion USD
Investment in IIoT
Through 2030
Sources: Gartner, IDC, IndustryARC, MarketsandMarkets, Morgan Stanley, Accenture

5. Pioneering IIoT
Early IIoT Development & Adoption
 Deliver More Value
 Know More About Critical Assets &
Data in Real Time
 Provide Robust Data & Asset
Management
 Increase Safety, Productivity, and
Revenue
 Migration to M2M
 Automation of Critical Industrial
Assets
Major Changes Over 25 Years
 Data Available is Far More Robust
 Ease-of-Use Has Increased
Dramatically
 Companies Can Maximize Benefits
 Implementation is Far More Cost-
Effective
 BUT Using Assets Productively is
More Crucial Than Cost of
Technology

6. -30 to 70%
Price of MEMS Sensors in the
Past 5 Years
-25%
Bandwidth Costs
Annually
-33%
Equipment Costs
Annually
-38%
Storage Costs
Annually
Driving IoT Growth Up & Costs Down
Sources: HIS, HSBC, A.T. Kearney, Internet World Stats

7. It’s the Best of Times for IoT
The Technology is Better Than Ever

8. It’s The Best of Times for IoT
 Significant Technological Hurdles Have Been Overcome
 Connectivity
 Wireless Communication Coverage & Protocols
 Power Management
 Sensor Capabilities & Costs
 Analytics
 Reliability & Ease of Use

9. Tag to Tag vs. Direct to the Internet
Readers and Tags must be compatible
Associations are made at the central server,
eliminating compatibility issue
Old Way New Way

10. Wireless Communication
Cellular vs. Satellite
 Significant Satellite Issues
 Data Latency
 Coverage
 Power Management
 Antenna Size
 Cellular costs at all time LOWS
 Tracking One Asset Costs < $1/mo.
 Cellular coverage at all time HIGHS
Proprietary RF vs. Wi-Fi
 WiFi Improvements Have Made
Custom/Proprietary Infrastructure
Obsolete
 Reduces Cost and Complexity of
Installation and Deployment
 IT Departments Now Support
Implementations, Rather Than Block
Them

11. Battery & Power Management
 Power Management Requires Balance
 Assets need consistent Check-In Capabilities
 Use Should Not Drain Battery Quickly
 Idling Should Not Drain Battery Quickly
 Customers Want:
 5-Year Battery life For High-Value Assets
 (Compare to 1-Day Battery Life for Most Smart
Phones!)
 Not to have to plug in to power/recharge
 Prolonged Power Management is
Possible Because Of
 Reduced Latency
 Use of Cellular Connectivity & Improved WiFi
 Better Duty Cycling
 Low Power Chips & Sensors

12. Battery Life
Improved Battery Life Year Over Year
Positively Impacts Power
Management
Connectivity Improvements
Better Tracking Through Cellular
Networks and Improved WiFi
Reduced Latency
Faster Communication Decreases
Power Drain
Better Duty Cycling
Improved Duty Cycling Decreases
Power Drain by Conserving Energy
When Possible
Battery & Power Management

13. Intelligent Sensors & Smart Chips
 BLE (Bluetooth Low Energy)
 Sensor costs and Power Requirements are Lower than Ever
 No More Cables to Run
 Patented Solutions Result in Fully Embedded Technology
 Data is More Accurate Than Ever
 Improved Memory & Processing
 Do More, Track More, Control More

14. Intelligent Sensors & Smart Chips
 30—70% Drop in the Price of
Intelligent Sensors Over the Past 5
Years
 33% Increase in # of Sensors
Manufactured Annually

15. Analytics
 Measure Against Industry
Benchmarks
 Peer Data Comparisons Provide Better
Baselines
 Eliminate Internal History Bias
 Find the Right Tech Provider for Data
Collection & Comparisons
 Evaluate ROI
 Determine Key Performance Indicators
(KPIs)
 KPIs Correspond Directly With ROI
 Collecting Data Over Time Creates
Baseline
 Quantitatively Determine Benefits &
Exceed Objectives

16. Analytics
 Determine and Share Best Practices
 Achieve More Accurate Predictions by
Analyzing Current State & Trajectory
 Evaluation in Real Time is Essential
 Asking Key Questions:
 Why are some locations performing better
than others?
 Why do different times/shifts function
more smoothly?
 Predict the Future Based on the Past
 Considering Trajectory + Multi-Sensor
Analysis Helps Predictions
 Collection of Data Over Most Sensors
Possible + Longest Timeframe

17. KPI (Key Performance Indicator) Utilization Rate
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% 1 2 3 4 5 6 7 8 9 10 11 12

18. Reliability
 Customers Expect IIoT Solutions to Work
 Very Harsh Environment
 Do Not Want to Plug in to Recharge or Perform Preventative Maintenance
 Need Over-the-Air Upgrade Capability
 Data Anomalies Can Destroy Confidence in Solutions

19. Access to More Sensor Data and Installation on CANBUS
 More Data Means Greater ROI
 Ease of Access to Data as Assets
Have Embedded Data Bus to Tap
Into
 Eventually All High-Value Assets Will
Have IoT Solutions Built In
 Easier to Install & Easier to Maintain
 No Need for Costly Add-on/Bolt on
Sensors
 Standardization vs. Custom for Each
Asset Type

20. Ease of Use
 Best Solutions are Completely Automated—No Training Required
 Custom Features Make Solutions More Complicated
 Real-Time Actions Based Upon IIoT Data Should be Pushed to Tablets,
Smartphones, PCs, etc.
 Leverage Online Training to Get System Users Up to Speed

21. Security
 High-End IIoT Devices Can Support Fully Encrypted Communication
 Most IIoT Solutions Do Not Contain Secret or Highly Confidential
Information
 Prevent Hackers from Using the Communication Path to Access
Confidential Business Data
 Safety Remains a Top Priority—Can Hacking Cause Any Real Catastrophe?

22. The Benefits of IIoT Solutions are Proven
 IIoT Leaders are Achieving 99% High-
Value Asset Utilization
 IIoT Laggards are Closer to 50%
High-Value Asset Utilization
 1% Improvement Typically
Calculates to a 1-Year ROI
 Safety, Revenue, and Automation
are Key Benefits that Drive Adoption
 C-Level Executives are Looking for
IIoT Solutions

23. It’s the Worst of Times for IoT
Because Many Aren’t Utilizing IIoT to Their Advantage

24. Why It’s “The Worst of Times”
 Only 23% of Global Enterprises Utilize Focused IIoT Strategies
 Past Experience With Limited Tech Prevents Many From Trying Again
 Lack of Awareness About Market Progress
 Various Challenges & Risks
 Cyber Security, Standardization Issues, Lack of Trained Workers, etc.

25. Challenges to IIoT Adoption
Sources: Gartner, IDC, IndustryARC, MarketsandMarkets, Morgan Stanley, Accenture

26. Security
 Risk of Hacking Remains
 Even With the Most Secure Encryption Solutions
 Certain Assets are More Vulnerable than Others
 IIoT Solutions Create a Pathway to Critical Business Data Unrelated to IIoT
Systems
 Ensure Solutions Support Upgrading to New Security Capabilities as Hackers
Solve Older Paradigms

27. Quality Issues Have Plagued the Industry
 2% Failure Rate or More is Typical in
the Industry
 “I’ve Tried it Before—It Didn’t Work”
 Data Anomalies Erode Confidence in
the System
 98% Accuracy is Still Much Better
than Manual Data Entry—7% Error
Rate (Minimum)
 Extremely Harsh Environments with
Customers that Have Little Interest
or Resources to Properly Maintain
the Technology

28. Hard to Use, Hard to Document ROI
 Soft Costs vs. Hard Costs
 Use Analytics to Make ROI Clear
 Are the Savings or Revenue
Increases Clear on a PNL Statement?
 Are Your ROI Goals Realistic?
 Who is Accountable?

29. Proprietary Solutions by Manufacturers
 Reliance on One Supplier is Risky
 Lack of Industry Standards Makes
Interoperability Difficult
 With IoT Architecture, Multiple
Suppliers Can Support Full Solutions

30. Flexibility, Scope Creep, and Complexity of Solutions
 Takes Longer and Costs More Than Expected to Develop
 Limited Training Material
 Difficult to Support
 Ability to Leverage New Features is Compromised
 ROI Can Be Achieved NOW With Standard Platform

31. Why Not Wait If IoT Will Eventually Be Built Into Our Assets?
 Only 23% of Global Enterprises Utilize Focused IIoT Strategies
 Past Experience With Limited Tech Prevents Many From Trying Again
 Lack of Awareness About Market Progress
 Various Challenges & Risks
 Cyber Security, Standardization Issues, Lack of Trained Workers, etc.
 NOW is the Time to Track, Monitor & Control High-Value Assets
 TAKE ACTION

32. What Next: Taking Action
Actionable Steps for Implementing IIoT

33. 5 Steps to Take NOW to Make This the Best of Times for Your
Organization

34. Thank You
KenEhrman.com
Ken@KenEhrman.com
@KEhrman1
Ken Ehrman

35. 1. Gartner, Hype Cycle for Emerging Technologies, 2014 (August 2015)
2. Gartner, Gartner Says 6.4 Billion Connected “Things” Will Be in Use in 2016, Up 30 Percent from 2015 (November
2015)
3. IndustryARC, Industrial Internet of Things (IIoT) Market: By Componenets (Sensors, Memory, Processors, RFID); By
End Use Industry (Manufacturing, Transportation, Energy, Retail, Healthcare, Agriculture)—Forecast (2016-2021)
(March 2016)
4. MarketsandMarkets, Industrial IoT Market by Device & Technology (Sensors, RFID, Industrial Robotics, DCS,
Condition Monitoring, Smart Meters, AHS, Camera System, Networking Technologies), Software (PLM Systems, MES,
SCADA), Vertical, and Geography - Global Forecast to 2022, (February 2017)
5. GE, GE Announces Predix – The World’s First Cloud Service Built for Industrial Data and Analytics (August 2015
6. Pelino, Michele and Gillett, Frank E., The Internet of Things Heat Map, 2016 (Forrester, January 2016)
7. Morgan Stanley, Automation World, The Internet of Things and the New Industrial Revolution (April 2016)
Copyright © 2017 Ken Ehrman
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are trademarks of Ken Ehrman.
This presentation is intended for general informational purposes only and
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disclaims, to the fullest extent permitted by applicable law, any and all
liability for any implementation of practices based on information in this
document and for any acts made based on this information.
References