By Mark Delfunt, InSource Solutions

1. Is IIoT right for me…..?
There’s a ton of information out there – how do I know what’s real and whether it will benefit my organization ?
Mark Delfunt
Director – Center of Excellence
Make the complex
simple

2. Industry 4.0, Smart factories, IoT, and others….
Industry 4.0 is the idea (and reality) of a Next Generation of Manufacturing
automation that includes
• Connected equipment – often with interconnected intelligence with
• Self-learning capabilities (cyber-physical). It also integrates cloud computing.
• Advanced manufacturing
• Digital manufacturing enterprise

3. Copyright InSource Solutions @2016
Simplify - basic building-blocks of IoT and IIoT
Will it look the same for everyone?

4. Fundamental
IoT or IIoT
architecture

5. Source: Why IoT is Different Than Past Technology Evolutions; Internet of Things Institute, IndustryWeek, Dec.. 06, 2016
And another from IndustryWeek

6. Confidential Property of Schneider Electric |
Managed Services
Application Services
Data Symantec &
Contextualization
Machine Learning &
AnalyticsDevice Lifecycle
Management
Remote Connectivity
& Control
Raw and
Structured
Data Store
Configure &
Upgrade
Contextualize
Semantics & Rules
Localized Machine
Learning & Analytics
Configuration &
Messaging
Discovery &
Onboarding
Collect & Store
Actuating Embedded
Intelligence
Connect Collect Analyze Act
Digital Services Platform
Smart Operations Platform
Device Intelligence Platform
Hardware agnostic
connectivity
Drivers, Toolkits and
Templates
Manufacturing,
Process, and
Equipment Data
aggregation
Data abstraction &
Contextualization
Predictive Analytics,
Models &
Visualization
Apply Rules,
Models & Workflow
Business Logic for Closed
Loop Operations
Wireless Sensors
Cloud
Gateways
Device Intelligence Platform
Smart
Operations
Platform
Digital
Services
Platform
.io
Smart Operations Value Enabler
Software IIoT Value Position in the EcoStruxure.io Stack
DataSources
Connect Collect Analyze Act
Connect Collect Analyze Act
Software Portfolio
6

7. Revolution or Evolution

8. Revolution or Evolution
Revolutionary Evolutionary
Consumer? Industrial?

9. Evolution of Historian infrastructure
“Nothing new under the sun”
Its’ evolutionary….

10. Evolution of Historian infrastructure
Probably “something new under the sun”
… and yet evolutionary

11. Key Differences IoT vs IIoT
Source: Industrial Internet of Things: PROFINET Intro, youtube.com
Categories IoT IIoT
Impact Revolutionary Evolutionary
Focus “Things” Data
Connectivity Ad Hoc Structured
Criticality Important Mission Critical
Service User You + Vendor
Standards New Devices & Standards Existing Devices & Standards

12. Who can guess what
BAUD rate SIGFOX
IoT networks talk to
devices (things)?

13. Getting IoT data – what’s the impact?
Inexpensive data?

14. Survey of most likely spend on IoT
What you
might expect

15. Copyright InSource Solutions @2016
One size does not fit all
Rationalize relative to the industry type and business objectives.

16. “I’ve been told that IoT data will be Inexpensive data”
Probably not Probably

17. Inexpensive data?
 Xmtr - $1500
 I/O - $500 per point
 Mechanical - $4000
 Electrical - $2500
 Engineering and Prog.
 $10,000 per point

18. Leverage what you have NOW - Inexpensive data

19. Less expensive data
 I/O - $50 per point
 Mechanical - $0
 Electrical - $500 (several
points)
 Engineering and Prog.
 $100 per point
Advantech wireless I/O

20. Very inexpensive alternatives for some users
https://www.particle.io/

21. Inexpensive advancements for mainstream Manufacturing
Wireless energy sensor
Embedded sensors
Smart Breakers

22. Collect lots and lots of data… Joy!!
 How do I rationalize relevant data?
 What does it all mean?
We love our Historian data

23. New Apps are making it EXCITING & empower users
 Access to data outside of the process control network; SECURELY.
 Collect data from Stranded Assets
 Consolidate information from multiple data sources on the
same page
 Minimally engineered data - reduces skill-set to acquire and
use the data + Real analytics – not just trends.
 Expose hidden opportunities & Enhance decision-making
with personalized & relevant information everywhere
 Empower people to become active participants in real-time work
streams
Enables Swarming concepts for multiple people to engage

24. Apps that Predict
 Modeling equipment using advanced pattern
recognition
 Profile Equipment based on historical data
 Monitors behavior relative to “normal” in real-time
 Alerts and early warning when the operation differs
from the historical norm based on pattern recognition.
 Advanced analysis capabilities including problem
identification and Root cause analysis

25. Getting executives buy-in for IoT - The “Belief” problem

26. Some leadership is not ready and skeptical
 Most fear they don’t have the infrastructure in
place - many will require major upgrades or
overhauls.
 More than 1/3 have no plans to develop an IoT
strategy for processes or products.
 Most don’t have a BYOD policy.

27. Some biggest challenges
 Identifying opportunities w/real benefits from IoT (44%)
 Budget/resources to develop or expand to IoT (37%)
 Incorporating smart devices/embedded intelligence (37%)
 Adapting existing technologies (36%).

28. IT and OT not collaborative enough for IIoT
“Effective use of the IoT requires more than just technology: operations technology (OT) staff
need to collaborate with IT staff. Yet most OT and IT departments don’t currently get along”

29. Who can say “our IT
and OT departments
are on the same page
and ready to work on
an IoT project
together?”

30. Known technology and CI failures
60% of process improvement initiatives fail to achieve
desired results.
50% of technology projects are failing (IIoT or otherwise)
 Financial impact? Yes
 Demoralization of employees? Yes
“I’ve been on dozens of task teams in my career, and I’ve
never actually seen one that produced results.”
https://hbr.org/2003/09/why-good-projects-fail-anyway
Satya Chakravorty, Wall Street Journal June 14, 2012
Will IoT make that better or worse…

31. The skeptical manufacturing executives
(relative to technology spend)
“Where have I heard this before”
“We have an idea for a new
IoT project - its gonna be
great”

32. Been there – done that, no thank you!
2012 20152009Y2K
MES Quality DowntimeERP

33. Copyright InSource Solutions @2016
The face of your executive
We’ve got to get better at delivering Sustainable results
and IIoT is our opportunity to get a fresh new start!
The Disappointment
• Did not save $$$
• 10 year ROI
• Perf. spiked but returned
• A little product out the door but…
• Reduced downtime/then returned.
• No labor savings
• Minimal reduction in scrap and
rework.
The Promise
• Saves us $$$
• Quick ROI
• Improve Performance
• More product out the door
• Reduce downtime
• Save labor cost
• Reduce scrap and rework

34. Get off the roller coaster of disappointment
Not this…. But this….

35. Copyright InSource Solutions @2016
Anyone know an
executive that feels
BURNT by past
technology promises?

36. Copyright InSource Solutions @2016
The problem with Sustaining results –
….we don’t know how….

37. Continuous Improvement models can help - but….
https://goleansixsigma.com/dmaic-five-basic-phases-of-lean-six-sigma/
Automation?
we get it…. Biggest
challenge
Operations?
we don’t get it….

38. Creating sustainable competitive advantages with IIoT
Lack of know-how
or understanding
InSource System for Management model
How am I measured?
How do I plan?
By what standard?
Am I trained to do that?

39. IoT (yea!) but its not enough in most cases

40. Copyright InSource Solutions @2016
Scalable Solutions thinking - 3 ways to approach IoT
Point/Framework/Sustainable

41. Scalable IoT solutions
Point Framework Sustainable
 Get quick results – short term
win, Proof of concept., Hero
badge 
 Simple I/O and cloud reporting
 Training
 Discovery / Deployment
assistance
 Minimal cost and risk
 Plan that aligns with business
goals. Don’t buy too quickly.
 Confidence in the right approach –
not dart throwing.
 A Technology foundation that will
scale to enterprise levels.
 ROI projections
 Longer term partners
 Align strategic objectives carefully
before any technology picks.
 Understand impact on People &
culture as part of the plan.
 Define requirements early in the
process for People, Process, &
Technology
 Execute with capable partners for all
three.
What are my options?

42. Operational Efficiency leveraging IoT
Point Framework Sustainable

43. Copyright InSource Solutions @2016
Get going quickly
Real live data you can see and play with!
 Leverage what you ALREADY have
 Add capabilities you DON’T have

44. Copyright InSource Solutions @2016

45. Break time!

46. Is IIoT right for me – Probably in some capacity
Summary and
call to action

47. Get on the train with other industry leaders
Exciting times
WW 2017 & IIoT

48. Summary and call to action
WW online….have some fun.
30 days free!!
Starter kit for 100 points on the cloud is 2,000/yr
Acquire some I/O from Advantech
• and use that to capture something you don’t already have – maybe
something currently stranded. (Giving one away today!!)
• Inexpensive way to get started
Experiment - be the hero!!
• PUSH some existing data to the cloud and build some simple
dashboards, be a hero!

49. Summary and call to action
No single answer – each site need is likely different.
Start the conversation at your site
 Infrastructure - Do you have what it takes to enable IoT?
 IT and OT What steps do they need to take to enable
success?
 What solutions make sense for your business and do they
need to be cloud based, local, edge based solutions?
 Partners - Do we know the right ones to ensure success?

50. Summary and call to action
Do your part in this new IoT world….
Help us stop the loss of confidence in technology solutions that
have a short shelf-life. We owe it you our leadership and to each
other. Build Sustainable results.
We are here to help - get in touch with your InSource
Account executive - and find out how InSource can help with a
unique approach to Point, Framework, or Sustainable solution.