The Industrial Internet:Challenges & Opportunities

Dr. Richard Mark SoleyExecutive Director9 September 2015

Summit País Digital 2015

“A fundamental new rule for business is that the Internet changes everything.”

-Bill Gates, 1999

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Or has it?

Where We’ve Been

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Discrete Manufacturing

1980Programming a 584 Programmable Controller

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2015Programming a 984 Programmable Controller

Aviation

1960Jet performance data is downloaded by hand

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2015Jet performance data is downloaded by hand

No, the Internet Didn’t Change Everything

There is much more to be done:• Energy Generation, Distribution & Transmission• Government operations (“Smart Cities”)• Oil & Gas Exploration

• Geological data integration from multiple sensing sources• Rail & other transportation

• Failure sensing and automatic rerouting of multimodal systems, far more extensive than JapanRail automatic stop

• Smart homes & smart energy usage• And on… and on… and on…

“Internet Thinking” is key to Smart Manufacturing, Smart Connected Products, and Smart Product Data

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The Industrial Internet is leading the next economic revolution

7GDP data extracted from the Futurist 2007

The Measurable Outcome will be in the Trillions of Dollars

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GE: $32.3 trillion opportunity representing 46% share of GDP today.Cisco: Internet of Things (IoT) will increase private sector profits 21% and add $19 trillion to the global economy by 2020Gartner: IoT product and service suppliers will generate incremental revenue exceeding $300 billion in 2020. McKinsey Global Institute: $36 trillion operating costs of key affected industries could be impacted by IoT

The convergence of Internet of Things, Industrie 4.0, Cyber-Physical Systems presents an enormous opportunity.

Sources: GE, Cisco, Gartner, McKinsey

Making Sense of the Numbers

Revenue Generation• Revolutionary new products & services Creating new markets

Changing the way the world works

New Operational Efficiencies that drive down costs• Workforce productivity gains digitization of tasks, better deployment of resources• Reduced maintenance costs predictive maintenance• Material, energy savings reduced need for product over-engineering• Reduced waste Precision monitoring to predict and control machines

Improved Customer Satisfaction• Improved service levels fewer unplanned disruptions

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Yet there are current roadblocks to widespread adoption

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Connectivity

Technology

Standards

Research Academia

Systems Integration

Security

Big Data

Government Industries

The IIC: Things are coming together

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Things are coming together.

Standards

Big Data

Government

Technology

Research

Security

Systems Integration

IndustriesConnectivity

Academia

Industrial Internet Consortium

MissionTo accelerate growth of the Industrial Internet by coordinating ecosystem initiatives to connect and integrate objects with people, processes and data using common architectures, interoperability and open standards that lead to transformational business outcomes.

Launched in March 2014 by five founding members:

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Community. Collaboration. Convergence.

The IIC is an open, neutral “sandbox” where industry, academia and government meet to collaborate, innovate and enable.

IIC Founders & Large Industry Members

IIC Founder Companies IIC Founder Companies

IIC Small Industry Members

IIC Nonprofit/Academic Members

IIC Track & Trace Testbed

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Source: Bosch

IIC Testbed: Communication and Control

International Future Industrial Internet Testbed (INFINITE)

Participants:

•Members: EMC Corporation and Cork Institute of Technology

•Other Participants: Vodafone, Irish Government Networks, Asavie, and Cork Internet Exchange

Market Segment:

•The scale and scope of the project means INFINITE can be used across a wide and diverse range of industries and sectors

Solution:

•Completely virtual domains that are able to be connected via mobile networks

•A solution that allows multiple virtual domains to securely run via physical network.

Commercial Benefits:

•Ideal for mission-critical systems

•Industrial Internet applications in an environment that resembles real-world conditions

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Condition Monitoring & Predictive Maintenance Testbed

Member Participants:

•IBM and National Instruments

Market Segment:

•Predictive maintenance cuts across multiple market segments like power plants, manufacturing, process, mining, transportation, aerospace, and defense

Goals:

•Develop new predictive maintenance analytics modeling techniques

•Document standard and secure architecture patterns and data formats for predictive maintenance in the Industrial Internet era

Commercial Benefits:

•Increase equipment uptime and prevent catastrophic failures

•Provide condition monitoring data to experts thru the cloud

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High-Speed Network Infrastructure Testbed

Member Participants

•General Electric, Cisco, Accenture, Bayshore Networks

What is the High-Speed Network Infrastructure?

•It transfers data at 100 gigabits per second to support seamless m2m communications and data transfer across connected control systems, big infrastructure products and manufacturing plants

•100 gigabits per second is the equivalent of downloading more than 6,000 movies at a time on a typical Internet connection for home computers or mobile devices

Commercial Benefits

•With the 100 gigabit line, industries can instantaneously connect and control machines located thousands of miles away.

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Asset Efficiency Testbed

Participating Members

Infosys, Bosch, Intel, PTC

Market Segment

All industries where assets are business-critical such as High Tech Industrial Manufacturing, Discrete and Process Manufacturing, Automotive and Aerospace

Goal

To collect asset information efficiently and accurately in real-time and run analytics to make the right decisions

Commercial Benefits

•Improvement in asset life

•Asset utilization and ROI by reducing the downtime of assets

•Maximizing production and predictable delivery of service

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Why now?

Driving the OT – IT Convergence:Low cost, powerful technology

• Cheap sensors & devices• Low-cost processing power, data storage

Connected everything• By 2020, the number of things connected to the internet will be

approximately 7x the number of people on earth today.1

Big Data• Collecting, storing and analyzing data is now more cost effective

Smarter Machines• Equipment is increasingly embedded with sensor & software

April 18, 2023 221Source: Cisco Systems

And in Chile?

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One of the most innovative organizations in the world, a leader in mining innovation, the first mining company in the world and the first organization in Chile to join the IIC (April 2015)

The International Institute for Innovation Aysén-Patagonia created on 16 January 2015• With broad international support in Chile, Germany, U.S.A.• Focused on applying industrial IoT in environmental systems, based in Coyhaique• Working closely with international organizations, industries & universities• Collaborating broadly with Chilean industry, universities & research organizations• Broad topics focused on applying Chile’s expertise to world problems:

• Environmental monitoring and taking advantage of Chile’s “natural laboratories”• Support for ecotourism and responsible resource utilization• Bioprospection and responsible utilization of biodiversity• Support for efficient and responsible agriculture and aquaculture• Search & rescue, as well as patterns of rapid emergency response• Mine management, efficient energy usage, smart cities & communities

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Things are coming together.

Community. Collaboration. Convergence.

www.iiconsortium.org

For More Information

Dr. Richard Mark SoleyExecutive DirectorIndustrial Internet Consortiumtel: +1-781-444 0404fax: +1-781-444 0320email: soley@iiconsortium.org http://www.iiconsortium.org

International Institute for Innovation Aysén-Patagonia: http://www.iiiap.org/