The document discusses the Industrial Internet of Things (IIoT) and its potential benefits. It notes that the IIoT involves intelligent industrial products, processes and services communicating over networks. Trillions of dollars in benefits are possible from the IIoT through improved operational efficiency, new products/services, and an outcomes-based economy. Realizing these benefits will require connected ecosystems and platforms to aggregate and utilize data to create new value-added services. The most transformative impacts will be the emergence of an outcomes economy and tight integration of digital and human labor.

1. Industrial Internet of Things
Driving Unconventional Growth
January 8, 2015
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2. Internet of Things in the News
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3. IoT Acceleration
Source: CBI Insights, Cisco Consulting Services Analysis Source: Machina Research, IDC, ABI Insights, Cisco Consulting Services
Source: Machina Research, Cisco VNI, Cisco Consulting Services, Cisco Connection Counter Source: Factiva, Google, IPSO-Alliance, Intel
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4. What is the Industrial Internet of Things?
“The industrial Internet of Things is the
universe of intelligent industrial products,
processes and services that communicate
with each other and with humans over the
computing network”
Intelligent Product, Environment and Services
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5. The benefits of Industrial Internet of Things are in the
trillions of dollars
5
Source: World Bank 2011, GE 2012 Source: Cisco, 2013
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6. Survey on IoT Investments
Source: Cisco IoT Survey 2014, % of survey respondents N=1230
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8. Example - Life Safety
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• Continuous gas monitoring for
each individual for abnormal
levels of H2S, LEL, O2, NO2,
CO and SO2 present in refinery
• “Panic” button for medical and
other emergencies
• Motion sensor in case individual
is unconscious and stops
moving
• All alarms managed by
Operators in Central Control
Room
• Must include location in order to
facilitate rapid recovery

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10. IIoT for Driving Growth
Products
Information
Services
Pre-digital product
line
Digital product
line
New market
segment
Farm equipment
Partner in agricultural
information service
marketplace
Equipment
services
Machine maintenance
services
Remote diagnostics
and optimization
services
Commercialofferingcategories
Go to market approach
More Intelligent Farm
equipment with sensors
Soil, plant and
equipment analysis
results
Partner in agricultural
services
Partner agricultural
products
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11. To deliver the outcome economy will require connected ecosystems and platforms so that data can be
easily aggregated and used to create new value-add services
The emergence of the outcome economy will redefine industry boundaries
and relationships and create a new wave of winners and losers
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Connected
Products
Connected
Ecosystems
& Platforms
Customer
Outcomes
enables
delivers

12. The Industrial Internet will enable the capture of significant
value – of which operational efficiency is only a small part
Value Categories Strategic Approach
Value
Unconventional
Revenues
NextGen Products/Services
Product as a Platform
New Business and Operating Models
Most Valuable Information Provider
Operations and Predictive Maintenance
Commercial Optimization
New Customer Experience and M2M
Applications
Treating Services as R&D for
products
Enabling third parties to create
information services
Locking customers into the
information services
Sensors, analytics, and real time data
for insights
Flexible production techniques to boost
productivity
Data to work as digital service for
equipment performance
Gain opportunities to create customer
touch points
Avoiding unnecessary product
shutdowns
Computerize repetitive tasks and
workflows
Improved supply chain and logistics
performance
Reduce costs of energy, maintenance,
repair etc.
Incremental
Revenues
Operational
Efficiency
Preventive Maintenance
Process Automation
Operation Optimization
Global Asset Visibility
Examples:
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13. The two most transformational impacts of the industrial internet will be the emergence of
outcome economy and the tight integration digital and human labor
The impact of the Industrial Internet is transformational
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1. Operational
Efficiency
2. New Product
& Services
3. Outcome-based
Economy
4. Autonomous Pull
Economy
• Asset Utilization
• Operational cost
reduction
• Worker productivity
• New business models
• Software-based
services
• Data Monetization
• Pay-per-outcome
• New connected
ecosystem
• Platform-enabled market
place
• Continuous demand
sensing
• End-to-end automation
• Resource optimization and
waste reduction
Workforce Transformation
Ecosystems & Platforms
ROI & Business Models
Near-term
Long-term

14. 360-view of the ecosystem is key in reaping the most benefits from
Industrial Internet
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Source: acatech, “Smart Service Welt”

15. IIoT Platform is needed to support the ecosystems
• Intelligent Product and Services
• Intelligent Productions
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