Integrating Real-Time Machine Data into Your Business Processes:

It’s Not About the Data But What You Do With It

John Canosa

Chief Strategist

Congratulations!We’ve Made it to the Top of the Mountain!

4. Business Model Reinvention

3. New SCP Based Revenue Streams

2. Process Optimization

1. Functional Enhancements

This is All Just Phases of an Ongoing Fundamental Transformation of Business

Proactive Service

Identify problems early or prevent them entirely

Solve problems before it impacts the customer

Increased customer intimacy

Fast resolution of problems

Faster identification/diagnostics

Solve more online

Right parts on first visit

Phase 1: Functional Enhancements

Predictive maintenance

Integrated service chain

Spare part management

Service

Increased prod. Quality

Serviceability

New product design

R & D

Better feature selection

Introduce new services

Better understanding of the customer

Marketing

Cross sell and up sell

Better understanding of customer satisfaction

Flexible warranty structure

Sales

Phase 2: Process Optimization

Phase 3: New Smart Connected Product Based Revenue Streams Through Data Driven Services

Connected Product Platform

PLM ALM SCM SLM RSM QA Others

Online QA/QC

Peer group performance metrics

Regulatory Compliance

Realtime Performance Planning

Site Operations Management

Data Driven Consulting Services

Devices become a new “delivery channel” for services and applications

New services you can now offer, that you could not do without device connectivity

Extending your ecosystem

Metcalfe’s Law of expanding network value

Phase 4: Business Model Reinvention

Medical Device at Hospital/Lab Site

Third Party

Analysis

Service

2) Equipment provides results and suggested additional analysis

1) Technician runs a test

Internet

Example 1: Medical Devices Become Data Brokers to Provide On-Demand Services

Rental Car Company

Example 2: Rethinking a Device Dependent Business

Fleet Service

Connected Car

Performance Based

Billing Affinity Program Partners

Internet

A Cautionary Tale: If you Aren’t Going to Disrupt Your Industry

Someone Else Will

Value is driven through the Applications

• Data or Connectivity itself does not derive value

The Applications will necessarily change over time

• Rapid application development and roll-out is not a luxury, it

is essential to success

What Have We Learned So Far?

So How Do We Get Past the Long Application Development Cycle Time???

The Network

Internet, Device Clouds & Mobile Networks

Fixed

Apps

General

Purpose

Dev.

Tools

APIs APIsAPIs

Past – APPs Built w/General Purpose Tools

Sensors,

Devices

&

Equip.

Comm.

Elements

Wireless Provisioning

Complex

Programming

Build Platform

Services on a

Project

Difficult to

Maintain/Evolve

High Risk, High

Cost

Barrier to

Innovation

Result: 1st

M2M/IoT Era

Failed

Rigid Packaged Applications

Fragile CustomApplications

The Network

Sensors,

Devices &

Equip.

ThingWor

x Rapid

Applicatio

n

Dev.

Platform

Simplified

Development

Core M2M/IoT

Services Built-in

Low Risk & Cost

Simple Business

Integration

Catalyzes

Innovation

Result:

Accelerating

Pace of

M2M/IoT

ThingWorx – Complete & Designed for

Purpose

Cloud

Big Data

Social

Enterprise

Value is driven through the Applications

• Data or Connectivity itself does not derive value

The Applications will necessarily change over time

• Rapid application development and roll-out is not a luxury, it

is essential to success

This is about completely integrating remote devices

into the business process

• Demands an architecture with Extensibility that can support

the Long Term Vision and evolving needs.

Summary: Three Key Understandings are Required For a Long Term Strategy

Visit ThingWorx at Booth 615 in the M2M Pavilion

www.thingworx.com

IoX and Big DataAn Infrastructure Perspective

Kevin Shatzkamer

Distinguished Systems Architect

Cisco Confidential 2© 2013-2014 Cisco and/or its affiliates. All rights reserved.

The Data Aggregation Challenge

1.1 BillionData points generated by sensors daily500 Gigabytes

Data generated by a Boeing 787 per flight

1000 GigabytesData generated by an oil refinery daily

2.5 Billion GigabytesData generated worldwide daily

90% of the world’s dataHas been created in the last 2 years!

Cisco Confidential 3© 2013-2014 Cisco and/or its affiliates. All rights reserved.

IoT/M2M and Big Data are Inseparable

Interconnect StoreCollect Organize Analyze Share

Interconnect

People

Sensors

Machines

Transport Data

between

devices, people,

applications

Store Data

from device,

people,

application

Create

semantics

around the

data

Interpret,

correlate,

analyze the

data

Share Data

with people,

machines,

applications

Field Area Network

Sensors Network

Municipal Network

Collaboration

Messaging

Web Service

Publish/Subscri

be

In-Memory

Store

Persistent

Store

Data Models

Meta-Data

Ontology

Event

Processing

Data Mining

Analytics

Publishing

Services

Notification

Services

After the interconnection function, all IoT technologically breaks down into Big Data Analytics

Cisco Confidential 4© 2013-2014 Cisco and/or its affiliates. All rights reserved.

MOVING COMPUTATION IS CHEAPER THAN MOVING DATA

A computation requested by an application is much more efficient if it is executed near the data it operates on. This is especially true when the size of the data set is huge. This minimizes network congestion and increases the overall throughput of the system. The assumption is that it is often better to migrate the computation closer to where the data is located rather than moving the data to where the application is running.

Cisco Confidential 5© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Fog is an expansion of the cloud paradigm

It is similar to cloud but closer to the edge

The Fog Computing architecture extends the cloud out into the physical world of things.

Fog Computing distributes selected computation, networking and storage functions closer to the edge.

What is Fog Computing?

Cisco Confidential 6© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Where is Fog Computing?

Fog Computing surrounds the IoT/M2M realms

Allows us to contain real-time information locally

Process locally and send to cloud if required

Cisco Confidential 7© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Analytics Between Fog and Cloud

FogSensors Cloud

Storage

Realtime Data

Control/Actuation

Transient

milliSec/Seconds

Visualisation

_--_- Analytics

Seconds/Minutes

Semi-Permanent Months/Years

Minutes/Days/Weeks

Filter to process data locallyRemaining pass to cloud

Response

_--_- Business IntelligenceDashboardsKPIs

_--_-_--_-

ControlLoop