The Most Definitive Guide

To Industrial IoTImplementation

Technology & Connectivity

Data Insights Action

Industrial Assets

Internet of Things is a disruptive technology that enables the communication between smart devices and creates better opportunity and new revenue streams providing a better quality of life. Industrial Internet is a revolutionary technology that enhances the Industrial envi-ronment with the IoT capabilities. IIoT helps to solve the bottlenecks in the business environment, provides operational efficiency, increases productivity and reduces the complexity of the process. The main benefit of Industrial IoT is the connected enterprise that enhances the visibility across various departments and benefits with a smooth workflow. IIoT can be visualized as the rise of smart machines with digital capabili-ties that can shift a factory level solution to Internet level. IIoT is a trans-formative manufacturing strategy that helps to improve quality, safety, productivity in an industry. According to the CEO, Jeff Immelt, GE IIoT has twice the market potential than that of the consumer IoT. Industrial IoT has the potential of USD 15.3 trillion to the global economy by 2030 subjected to an improvement of 1-1.5%. The industrial organizations that don’t embrace IIoT will stay disconnected from the evolving market and from customers resulting in huge loss and productivity.

Introduction

Network & Cloud

Industrial Assets

EnterpriseValue Chain

Big DataAnalytics

IIoT helps merge the Information and Operational departments of an enterprise or an industry.

Merging both improves the visibility across the enterprise. The data is shared with the depart-

ments and the required corrective actions can be taken in advance. Big data analytics & cloud

support play an important role in the game. The smart sensors attached to the devices generate

tremendous amount of data. These data is aggregated and processed to generate valuable

insights of the process. Analytics help to screen and analyze the data and cloud support and

feature enables mobility that helps remote access and control industrial assets and process.

• ERP• CRM• HRM• Logistics• Finance

• Sensors• Controllers• Processors• Network

CloudBig Data

IT Information OT Information

Industrial assets include smart devices, sensors, robotic equipment and other hardware devices. Enter-prise value chain include the major operational process happening in the industry (i.e. from Procurement to finished goods and services, logistics and service)

The Industrial IoT (IIoT)

Source: GE

Percentage of Global Economy that can benefit from theindustrial internet

46%

Industrial internet potential impact on Energy production

100%

Industrial internet potential impact on Global Energy production

44%

Vision of IIoT-The connected Enterprise

Steam & water powered production.Manufacturing was tediousand outcome depends skilled labour Standalone/ dedicated devices

PLC’s were introduced Use of electronics and IT to achieve further automation of manufacturing. Enterprise functions were not interconnected

Based on Cyber physical production system.connected enterprise and automa-tion Collaborative approachBig data Analytics, Cloud IntegrationReal time Integration

First Assembly lines was introducedElectricity powered mass production

Industry 1.0

Industry 2.0

Industry 4.0

Industry 3.0

1784

1870

1969

1992

Background Analysis-Evolution of IIOT

Industry 3.0 started with the advancement of electronics technology. With the introduction of program-

mable logic controllers and other electronic boards, the circuit boards have witnessed

massive integration and miniaturization. Industrial robotics also helped to simplify the task

and automate the shop floor. Robotics and electronics helped to increase the production

but operations remain isolated from the rest of the enterprise.

Industry 2.0 which was characterized by assembly line introduction. Here the motion of the

workers was minimized to the possible extent. Henry ford is regarded as the Father of

mass production and the assembly line was introduced in the car manufacturing plant

by Ford to improve the productivity using conveyor belt mechanism.

The above snapshot gives an idea about the timeline of all the Industrial revolution happened till

date. The first industrial revolution happened in 1784 with the invention of steam engines. The

manufacturing was purely labor oriented. There were many hurdles to overcome during this

scenario. The production process was tiresome and a lot of efforts were taken by the factory

workers and staff to complete the process.

Industrial IOT Ecosystem

Started with the vision of connected enterprise by

interconnecting the industrial assets through the inter-

net. The smart devices communicate each other and

create valuable insights on the data generated. It helps

to generate faster insights and mobility feature with

Data analytics and Cloud support. The advantages of

IIoT includes asset optimization, production integration,

smart monitoring, remote diagnosis, intelligent decision

making and the most important feature of Predictive

Maintenance.

Industry

4.0

Sec

urity

Ser

vice

s

Analytics/ Social Business

Applications

Connectivity

Platforms

Intelligent Systems

• IIOT Ecosystem consists of smart sensors that are incorporated with the industrial assets. • Platforms consist of middleware that serves the connectivity of edge hardware with other value chain players.• Connectivity includes the technology that is used to interact with the smart devices• Applications include the Web and mobile interface that provide a glimpse of user controls.• Analytics and Social Business includes the Big data Analytics and the Cloud services to generate the insights

• Wi-Fi• NFC• RFID• Bluetooth• Telecom Service Providers• Industrial internet

• Mobile Application Dashboards• Web Interfaces

• Platform• Middleware Protocols• Big Data Analytics• Interfaces• Security

Device Manufacturers

Connectivity Provider

Software Support Provider

Application Web interface

• Hardware Manufacturers• Product Developers• Support Team• Embedded OS• Chip Vendors

End User

System Integrator

Cloud Service Providers

Device Manufacturers: They produce the smart devices and hardware necessary for the communication. They include hardware manufacturers, Chip design vendors, Embedded OS Vendors, Sensor manufacturers

Connectivity Service Providers: They include Telecom Service Providers and an end to end connectivity providers. Wi-Fi, NFC, RFID, Bluetooth are some of the communication technology used in the industrial environment. Industrial internet is designed to meet industrial standards and robust environmental conditions.

Software Service Providers: They are the major IT service providers. They supply services like Platform, Middleware Protocols, Big data Analytics, Software services and Security Features to help total ecosystem work smoothly.

Mobile/Web Application Interface: They form the IT service Providers who give the service of web interface and mobile dashboard support services to end users to communicate with the smart assets. These interactive platforms help to analyze data, understand the real-time situation

Value Chain Players in IIoT

Integration of Automation

devices.

Robust Environment

Industrial Standards

Huge Data Volume from Sensors to generate more

insights

More stringent requirements on

security and privacy

Industry based customization is

required

Vision of connected enterprise by connectingvarious industrial assets

with the business process

Mission critical refers to data integrity, responsiveness, Predictive maintenance

Robust Environment refers to the complexity of

industrial environment with physical conditions like

hot, cold, noisy etc

Industrial Standards are different from that of Consumer

applications with industry grade hardware and connectivity

solutions

Standard solution will not suffice as individual

customization is required based on industry

Industry environment cannot compromise on data breach, Denial of Service, Malware

attacks etc

Industrial Standards are different from that of

Consumer applications with industry grade hard-

ware and connectivity solutions

Mission Critical Processes

HowIIoT is differentfrom other Verticals of IoT

• Predictive & Proactive Maintenance

• Real-time Monitoring

• Asset/resource Optimization

• Remote Diagnosis

Industrial internet of things has many rewards in an indus-

trial environment. It improves business perspective, opera-

tional efficiency and moreover the overall productivity of

the industry. The benefits of IIOT can be summarized

mainly into four application and is shown in the fig.

One of the most important use case of IIoT. Industrial output

depends on the machine hours and if the machine fails or an

unexpected situation arises then productivity is lowered to a

great extent. The main advantage of predictive maintenance is

to know more about the machine details and take one step

ahead so that the device doesn’t fail. By this approach, the

service schedules are planned on the basis of machine condition

and usage rather than on the traditional approach of doing

service by date. With IIoT trend the industry has witnessed the

transition of service from Preventive maintenance to more

proactive maintenance and is called as predictive maintenance

or condition based maintenance. The main advantages of the

predictive maintenance can be summarized as follows

• Reduce chances of Catastrophic failure and downtime

• Reduce maintenance cost

• Faster Root Cause Analysis

Predictive Maintenance

Lenovo used predictive analytics to better understand warranty claims resulting in 10% to 15 % reduction in warranty costs

Advantages of Industrial IOT

The typical application of real-time monitoring is used in Healthcare industry

where the patients and assets are monitored. Surveillance and monitoring in

industries like oil and gas, mining etc. is a typical use case of IIoT. Real-time

monitoring improves safety, track location, engage faster responsive actions

in case of an emergency situation. The mobility feature with cloud integration

enhances the information flow to even mobile dashboards and portable

devices. The advantages can be summarized as follows

in incremental revenue (2014) has been realized by GE in helping custom-ers in improving asset performance

$1bn

With industrial revolution mass production is happening and

saving just 1% accounts to a huge amount and the industries

are now optimizing their production structures so as to gain

these amount. IIoT enhances the production capabilities and

in turn, the analytics helps the decision makers to plan accord-

ing to the insights.

The advantages can be summarized as follows

• Optimize production, asset management

• Faster time to market with connected Enterprise

• Mobility support

• Improve safety & security

Asset /Resource Optimization

Real timeMonitoring

• Smart Monitoring of assets

• Engage faster Emergency Response system

• Safety and Security

• Real-time Status Update

• Track and Trace assets

Remote DiagnosisThe remote diagnosis helps to know more about the machine status

and condition when and wherever required. Augmented reality

features and cloud integration helps the user to view and monitor the

machine condition remotely. The cloud feature helps the service

personnel to remotely view the hardware and perform the tests. The

advantages are summarized as follows

• Faster uptime

• Predict the fault occurrence

• Improves life expectancy of machine

• Improves convenience and safety of workers

Advantages on the basis of Business perspective• More business insights are generated from sensor data

• Faster ROI and revenue from hassle free operations

• Track Product Lifecycle Information

• Effective utilization of workforce

• Forecast demands

• Better customer retention & Satisfaction

• Dashboards for faster decision-making

• Rapid Adaption to changing customer needs

Tackle bottlenecks and improving productivity are the main advan-tages of IIOT

• Smart Sensors• Robotics & Automation• Industrial Internet• Augmented/Virtual reality• Big Data Analytics• Cloud Integration• Software applications • Mobile Dashboards• Low power Hardware devices• Scalability of IPv6-3.4X 10^38 IP address

• Edge over Competition• Better customer satisfaction & retention through value addition• Shift in customer perspective from product to solution• Opportunities from new business model• Liability to customers and investors

• Government Policies like Industrie 4.0, Smart factories, Make in India, Make in China 2025 & smart cities, Japan’s I industrial Value Chain initiative forum• Support of Green initiatives• Rising Energy & crude oil prices• Favorable FDI policies.• Policies by regulatory bodies

Major Drivers of IIoT

Technology Drivers

Business Drivers

Macro-Economic Drivers

• Major hardware giants are acquiring companies which have expertise in

software, analytical, cloud & security to have an edge over competition and also

trying to offer bundled services to end customer

• Collaborative or partnership approach of major companies to standardize &

launch solutions. Industrial internet consortium was formed and it aims to get the

solutions standardized

• Conversion of Capital Assets into Operational Assets- Rise of new business

model. This is a strategic trend now adopted by most of the product companies.

According to the new business model the product will be sold as a service. These

companies will now earn from the services that are rendered to the customers

rather from selling the product.

• Selling Product as a service and bill on pay per use

• IDC predicts that by 2018, 40% of the top 100 discrete

manufacturers will rely on connected products to provide Products

as a Service.

• The shift of focus from Product to a service solution

• Many Blue chip companies are currently integrating IoT into manufacturing to

• Improve productivity

• Competitive Advantage over Rivalries

• New Revenue streams from business

• Industrial internet of things Consortium is trying to address issues like security,

standardization and also launched test beds.

• Worldwide many conferences, workshops are conducted on the topic

• Accelerated adoption of IIoT in regions like in US, Germany, China & Japan.

The govern ment has implemented various policies to support the initiatives like smart cities and

many pro-growth policies. Industry 4.0 is an initiative by Germany in support of IIoT and is gaining

pace. The recent exhibitions that focus on IIoT show that US, Germany, China, Japan, and India

are now focusing on this upcoming trends.

Major Market trends in IIoT

Major predictions

8 to 18% over next 5 years

Morgan Stanley predicts that IIOT will be a signifi cant driver for industrial growth and expects IIOT related spending toincrease from

30% of end Users and OEMs are actively using IIOT tools and investing in Projects-ARC Group

About 46% of global economy or $32.3 trillion in global output can benefit from industrial internet-GE

According to BERG institute the installed base of wireless devices in industrial application crossed

10.3 millionconnections(2014) and grow to

43.5million devices2020) with CAGR

($2.3 Trillion) of IOT Market is expected to consist of devices used in manufacturing. 35% of US Manufac-turers are currently using the data gener-ated by smart sen-sors-Fujitsu

By 2025 37%

Shift of service strategy from corrective to pre-ventive and predictive maintenance over

Manufacturing contribute to the highest share in IOT market followed by healthcare. At present due to the technological

advancement and various macro- economic factors the industrial environment is undergoing a rapid disruption with

IOT. The need of the industry changes as per the customer requirements and market scenario.

The changing industry dynamics has accelerated the need for Optimization of process and hence save the cost of

operation without affecting the productivity and efficiency of the process.

next 5 years-Frost & Sullivan report

Cost of Sensors

Cost Reduction over the past 10 years

Industrial IoT - Why now?

Manufacturing contributes to the highest share in IoT market followed by healthcare. At present, due to the technological advancement and various macro- economic factors, the industrial environ-ment is undergoing a rapid disruption with IoT. The need of the industry changes as per the cus-tomer requirements and market scenario. The changing industry dynamics has accelerated the need for Optimization of the process and hence save the cost of operation without affecting the productivity and efficiency of the process.

The Need of

• Operational Efficiency

• Edge over Competition

• Faster Time to Market

• Improve & Boost Productivity

• New business & revenue Models

• Proactive maintenance.

• Connected Enterprise

• Improve customer intimacy to next level

• Manage Product life cycle in a better way

• Generate better insights

15%

15%

11%

11%8%

8%

7%

6%

5%

4%4%

3% 3%

Cost of RAM

Cost of Disk Storage

ManufacturingHealthcareInsuranceBanking & Securites

Retail & Wholesale

Computing servicesGovernmentTransportation

Utilities

Cost of Processing

60x

Cost of Bandwidth

40x 0.60 17x21x

• Power Transmission & Distribution• Green Solutions• Smart Grids

• Mining• Oil & Gas• Supply Chain • Lean Manufacturing

• Smart cities• Government• Banking• Insurance• Commercial Services• Waste Management• Water Treatment

• Inventory Management• Smart Shopping 3D systems

• Real time Monitoring• Emergency response• Remote Diagnosis

• Rail• Aviation & Aeronautics• Marine• Transportation• Traffic• Logistics

• Agriculture• Military• Hospitality

Energy

Other Services

Manufacturing

Public ServicesRetail

Health Care

Mobility

Industry Verticalsof IIOT

Market Segmentation of Industrial IoT

$950 Million 2017 RFID tracking Frost & Sullivan

$49.1 Billion 2020 Telematics Allied Market Research

$14.2 Billion 2018 Autonomous Robots Transparency Market Research

$50 Billion 2018 Building Automation & Controls David Russel Schilling

$1 Billion 2020 Collaborative Robots Allied Business Intelligence

$24.7 Billion 2019 Maintenance Analytics ABI Research

$6.1 Billion 2020 Continuous Emission Monitoring Markets & Markets

$8.6 Billion 2020 Additive Manufacturing Allied Market Research

$11.7 Billion 2023 Fleet Management Machina Research

$3 Billion 2020 Gas Analyzer Markets & Markets

$6.1 Billion 2019 Air Quality Monitoring Markets & Markets

$4.4 Billion 2019 Logistic Procurement Production Markets & Markets

$170 Billion 2020 IoT Cyber Security Cyber Security Ventures

$1.5 Billion 2020 Vibration Monitoring Markets & Markets

$31.2 Billion 2019 Electronic Access Control Transparency Market Research

$5 Billion 2020 Rapid Prototyping Siemens

$3.9 Billion 2020 Real Time Location Markets & Markets

$26.6 Billion 2020 Manufacturing &Industrial HVAC Markets & Markets

Revenue Estimated

Year of Estimation SourceArea of Focus

US Market$ 6.1 to 7.1 Trillion

UK Market$531 Billion

Germany Market$700 Billion

China$ 1.8 Trillion

Source: Accenture Report

Market Estimation of Revenues from Industrial IoT

GARTNERMAREKETS AND MARKETS IDC

By 2018,

60% of the G2000 will have doubled theirproductivity by digitallytransforming many processes from human based tosoftware baseddelivery

By 2018,

60% of Globalcompanies will integrateIT and OT at the technology, process, security and organizationlevels to fully realizethe value of theirIOT investments

25% of manufacturers will generate over half of their revenuefrom digitallybased services

IOT Market Size-$157.05Bn(2016) to$661.74Bn(2021) with CAGR of 33.3%

Industrial IOT MarketSize-$93.99Bn(2014) to$151.01Bn(2020) with CAGR 8.03%

IOT in Manufacturing sector-$4.11Bn(2015) to $13.49Bn(2020) with CAGR 26.9%

Predictive Analytics Maket-$2.74Bn(2015) to$9.2Bn(2020)

Global IOT security spending will hit

$348million in 2016

By 2018 half of the large organization globally will compete using advanced analytics and proprietary algorithmcausing disruption

By 2020 predictive and prescriptive analytics

will attract 40% enterprise.

By 2020, addressingcompromises inIOT security willhave increased security

costs to 20% of annual security budgets from

less than 1% in 2015

Research Insights

Global Industry 4.0 Adoption

EMEA

AMERICAS

APAC

36% to 71%

32% to 74%

30% to 67%

© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved

Region Revenue Gains morethan 20%

Lower Cost more than 20%

Increase efficiency morethan 20%

GLOBAL 35

37

39 57 68

39 50

43 56

AMERICAS

ASIA PACIFIC

EMEA 41 5539

Source: pwc

Level of digitization in 5 years

Pain points of the customer

• Loss of production time

• Maintenance cost

• Shortage of skilled labor

• Safety & Security

• Cost of production

• Rising Energy Cost

• Competition

• Quality of production

• Customized Solution

• Cyber Security & Data Privacy

• Standardization Issues

• Uncertainty Of Roi & Profit

• Fragmented Market

• Interoperability

• Aging Workforce

End user expectation

• Digitalization

• New service models

• Reduced total ownership cost

• Mass personalization

• Sustainable production

• Agile supply chain

• Cyber security and Data Privacy are the prime concern – By 2020, a black market exceeding $5 billion will exist to sell fake sensor and video data enabling criminal activity and personal privacy-Gartner• Lack of Standardization – Heterogeneity of Hardware and software result in standalone solutions • Uncertainty of ROI on new investments & profitability – Companies are skeptical about new investment• M2M efforts are Fragmented and domain specific• Lack of interoperability • Aging Workforce• Rapid evolution of technology- delay large investments by companies – Changing technology • Physical environmental conditions of device at industrial environment• Chip designs to accommodate various needs based on complexity• Lack of global internet connectivity• Change Management-cultural issues-• Lack of expertise in field

Major Challenges for IIoT

Major Challenges

• Rapid Evolution Of Technology• Industrial Environment• Lack Of Global Connectivity• Change Management• Lack Of Expertize In Field

Connectivity provider

• Lack of network Coverage

• Still evolving Telecom Technologies

• Lack of high bandwidth, low latency network

• Threat from OTT Players

Device manufacturer

• Product Piracy and IP theft-because of

reverse Engineering.

• Rapid evolution of technology

• Integration with Legacy equipment

• Precision, accuracy, lifetime, low power requirements

Software service provider

• Cyber Security Issues

• Lack of IT competency

• Low entry barriers and many players

• Level of customization based on industry

• Dynamic industry requirements

cloud services & analytics

• Mission critical Applications

• Response time

• Lack of skill & expertise

• Remote accessibility

• Integration with existing infrastructure

Device Manufacturers

• Revenue from sale of huge volume of Sensors

• Increased sales of hardware devices

Connectivity Provider• Revenue from Industrial internet Solutions• Revenue from deployments of Hardware Solutions

Software Support & Platform• Revenues from Software, platform, Applications, consulting services• Revenues from middleware, System Integrators

Cloud & Big data Analytics• Real time Information processing• Revenue from cloud - PaaS, SaaS, IaaS

• Medical Sensor Market-$8.21Bn(2015) to $15.01Bn(2022) with CAGR 8.5%• Temperature Sensor Market-$5.13Bn(2016) to $6.79Bn(2022) with CAGR 4.8%• Pressure Sensor Market-$6.7Bn(2014) to $9.48Bn(2020) with CAGR 5.9%• Motion Sensor Market-$3.10Bn(2014) to $6.45Bn(2020) with CAGR 12.93%• IOT chip Market-$4.85Bn(2015) to $10.78Bn(2022) with CAGR 11.5%• Embedded System market-152.94Bn(2014) to 233.13Bn(2021) with CAGR 6.4%

• Cellular M2M Market-$3.22Bn(2015) to $11.50Bn(2020) with CAGR 29%• Global Wi fi Market-$14.8Bn(2015) to $33.6Bn(2020) with CAGR 17.8%• Heterogeneous Networks Market-$12.5Bn(2015) to $25.34Bn(2020) with CAGR 15.19%

• IOT Middleware Market-$3.86Bn(2015) to $ 11.58Bn(2020) with CAGR 24.6%• Workforce Analytics Market-$422.5Mn(2015) to 860.4Mn(2020) with CAGR 15.3%

• Big data Market-$28.65Bn(2016) to $66.79Bn(2021) with CAGR 18.45%• Hybrid Cloud Market-$91.74Bn(2021) with CAGR 22.5%

How value chain players are benefited

Industrial IoT opens up tremendous business opportunities for the entire value chain players. With the increase in technological penetration and customers gaining confidence in technology more and more deployments are expected to see. With the rise of Industrial IoT the conventional Business model is changing from Product to Service approach. The data generated from industrial process hold lot of value and now industries are behind gathering this information and generating insights out of it.Device manufacturer poses great growing opportu-nities among all the players. According to Mckinsey report, semiconductor industry will have a boom with respect to the growing sensor requirements.

Business Opportunity & Market Perspective

• Revenue from new business model-(Product as a Service)

• Sensor market will grow at a higher rate

• Device manufacturers and semiconductor will show an increasing trend

• Government support

• Virtual Reality & augmented reality market

• Tremendous opportunity for startup companies

Business Opportunity

Pay per use and subscription based services turning

machinery from Capex to Opex for Manufacturers-McKinsey

report

• The Product as a Service model will become the norm in many industries. Over 70% of Fortune 500 companies will operate Product as a Service busi ness models, with the Automotive Industry and Electronics Industry expected to lead this revolution at 15% and 13% respectively-Frost & Sullivan Report• The automotive and industrial markets for semiconductors offer significant growth potential.-pwc report• Government initiatives for Smart cities and new Manufacturing revolution have created an optimistic market for semiconductor, sensors and device market.• Virtual & augmented reality market is expected to hit $150 bn by 2020 with AR with a share of $120bn and VR of $30bn-Source:Diigi-Capital• Fragmented market opens up tremendous growth opportunity for startup companies.

Need/benefit of the use case:

Predictive maintenance or condition based main-tenance helps in maintaining the industrial assets over time with the help of smart sensors that enable better visibility into the assets backed up with Analytics to have a better prediction on situations that may encounter in the near future. Predictive maintenance helps to generate insights about the machine well in advance before the system undergoes a critical breakdown or a maintenance call. This methodology of tracking the machine conditions help to increase uptime and usability of the machine. Predictive and prescriptive maintenance will dominate the Analyt-ics market in next five years. Revenue from Predictive Analytics is expected to be 60% of the Analytics business by 2019.(Source ABIResearch)

• To increase productivity

• Greater Asset Visibility & availability

• Improve reliability and performance of the assets

• Better cost savings from unscheduled services and breakdowns

• Gain more insights from customer regarding the usage and their premises

• Less downtime and maximize utilization rate by avoiding catastrophic failures

• Improve life expectancy of the machine and hence accelerate faster ROI recovery

• Optimize operation, Quality and maintenance of industrial assets.

• Optimize spares inventory reducing Opex

Reactive Approach

Pro-active Approach

Industries: Manufacturing, Aviation, Oil and Gas, Energy, Power & Utilities, Automotive

Use cases of industrial IoT

Predictive maintenance

• Big Data Analytics• Thermal Imaging• Vibration Analysis• Pressure Monitoring• Sonic & Ultrasonic Analysis• Emission monitoring• Lubricating Oil Analysis• Historical Data Analysis

How it is done

• Big data Analytics• Precision Sensors• IPV6 & Industrial Internet• Mobility• Cloud Applications

• Dynamic and complex operating conditions• Pre-existing legacy equipment integration• Cultural issues and openness to change• Cost of implementation• Security and Data Privacy

Market Readiness for Predictive maintenance

Operational Predictive Maintenance market is estimated to

grow from $582.3 million (2015) to $1.88 Billion by (2020)

at a CAGR of 26.5%. The reason for the growth of

predictive maintenance market is because of the capabili-

ties of smart sensors and analytics software to analyze

and precisely predict the asset failure enabling the

enterprise to plan well in advance before the event and

save time, cost and efforts. As per the research conducted

by Markets and Markets research North America is

expected to hold the largest market share and would

dominate the operational predictive maintenance market

from 2015 to 2020 due to the presence of large solution

vendors. APAC offers potential growth opportunities for the

operational predictive maintenance market. Manufacturing

Vertical is expected to have the largest market size.

Manufacturers see predictive maintenance as a strategy to

lower the maintenance cost and thereby increase the

profitability.

IBM and National Instruments along with IIC has imple-

mented test beds to explore the application of predictive

and condition based maintenance for industries through a

cloud-based solution. The system collects information from

smart machine sensors analyze the data and integrate the

information to determine the machine health status.

Technicians or field staff will be receive alerts regarding

the process. With the cloud integration there is an addition-

al capability of 360-degree view ability of process.

Drivers

Challenges

Assets / Hardware Devices

Smart Sensors

Analyze useful data

Big data Analytics

Insights

Cloud Services

Actionable Outcomes

Historical DataSensor Characteristic

High Level Solution Architecture

Use Case 1: Predictive Maintenance

Critical Asset to be monitored

ImportanceData Requiredfrom Sensors

Types of Sensor Required

Centrifugal pumps

Compressors

Turbines

Static Equipment

Industry Applicable: Manufacturing, Oil and Gas, Automotive, Healthcare, Aviation

• To resolve unproductive and unplanned downtime happening in Oil and Gas exploration by monitoring the critical assets. • To ensure better utilization rate of critical assets• To increase the efficiency, productivity, and life time of the assets.• To reduce the losses that occur during processing, transportation of oil.• To reduce the accidents and catastrophic events happening at Rigs

Centrifugal pumps are used to pump crude oil from offshore tankers to the port, crude oil to segregation plant, pump final product for delivery

To boost the pressure to pump it through pipeline

Power Generation for drilling, digging, backup etc

Valves, Boilers, Furnaces, Heat exchangers, pipeline are intermediate devices

Monitor pressure imbal-ances that may lead to wear & tear Excess pressure may lead to stress in impeller shaft and create vibrations. Accurate power measurement details based on current and voltage sensors. Flow measurement using non- intrusive ultrasonic sensors. Temperature monitoring of equipment. RPM of the pump

Monitoring Gas pressure, Temperature of the unit. Monitor leakages and wear and tear of shafts associated with the unit

Electrical Characteristics( Current & Voltage), Temperature, Velocity and RPM of Turbine, Exhaust Flow rate, Exhaust temperature, pressure

Temperature, pressure, humidity information, leak detection in pipeline

TemperaturePressureGas sensorsHumidity(oil)

TemperaturePressure(gas)Vibration Gas Sensors

Current & VoltageTemperatureRPM/TorqueFlow

Pressure(oil pressure)Temperature VibrationCurrent & Voltage Flow RPM/Torque

Problem Statement:

1. Industry: Oil and Gas

1. Oil and Gas Industry

Reduce Catastrophic Failures and Breakdown of Critical AssetsBenefitsReturn on Investment 10 timesReduction in Maintenance Cost 25 to 30%Elimination of Breakdown 70 to 75%Reduction in Downtime 35 to 45%Increase in Production 20 to 25%Average Time spend on Maintenance Activities 15%Source: US Department of Energy

Predictive Analytics in Os and Gas

Asset Maintenance

Optimization in exploration

Production Optimization

Risk Assessment

Optimisation in Drilling

Upstream Midstream Downstream

Transport Optimization

Pipeline Risk Assessment

Storage Optimization

Demand Optimization

Trade Optimization

Price Optimization

Market Analysis

Marketing Effectiveness

(C) predictiveanalyticstoday.com

Measurements are taken from various sensors to observe the physical parameters like temperature, pressure, Vibration, Electrical Characteristics and operational of various industri-al assets. The information generated from the sensors are aggregated sorted and filtered to generate valuable insights about the machine condition. Based on the insights necessary steps are taken to prevent the unplanned downtime for rotating equipment, centrifugal pumps, compressors, turbines.

Solution:

Problem Statement• To reduce the downtime of the industrial assets• Increase productivity, efficiency by monitoring critical assets • To plan the downtime for service in advance• To reduce service cost and better service resource allocation

2. Manufacturing

Critical Asset to be monitored

ImportanceData Required from Sensors

Types of Sensor Required

AutomatedRobots

Pneumatic systems & hydraulics

Rotary Equipment

CNC machines RPM MeasurementRPM Sensors(Hall Effect or

inductive type), grease sensors

To help automate

the process

Helps in moving or

lifting assets

Equipment for lubrication,

cooling system, drilling

Vibration Analysis, Electrical

Characteristics, Acoustic Analyzers to measure friction, Velocity and RPM

measurement sensors, lubrication

Air Pressure Monitoring,

temperature, lubrication analysis. Detect unwanted

sounds

Pressure (airFlow (air)

TemperatureLubrication Analysis.

Acoustic Sensors

Grease sensors, lubrication, current and

voltage sensors

Oil Analysis, Lubrication Analysis,

Noise, Vibration

Oil QualityLubrication

analysis

Lathes that help in desired products as per

computer aided designs

Solution: To measure the equipment characteristics from various sensor devices. Smart sensors are deployed over the required hardware to sense data on physical, environmental conditions, etc. These include information like Temperature of the devices, pressure sensors of valves, Vibration Characteristics, Oil Analysis, Current & Voltage characteristics. It provides improvement in the production line, Field service and also on customer premises for warranty claims. Generate valuable insights from the unstructured data to facilitate proactive decision makings

Benefits • Less downtime which can be planned with increased productivity • Less inventory cost for spares • Smart allocation of costlier service resources • Save cost and time • Lean manufacturing and faster time to market • Extended life of Plant Equipment

Smart Supply Chain & Logistics Management

Use case 2:

Problem Statement• To trace and trace consignments for a better transparency in shipment• To increase safety and security for sensitive assets • To avoid counterfeiting of product within supply chain• To ensure better asset management & smart warehouse• To avoid situation of dead stock and have better inventory management

Industries Applicable: Retail, Logistics

Critical Assetto be monitored

Data Required from Sensors

ImportanceTypes of

Sensor Required

Solution: To provide real-time monitoring of Supply chain activities including Logistics, Smart warehouse operations, asset tracking and tracing with RFID tags, GPS. Physical security of the assets in the warehouse with sensors to detect temperature, humidity, Tilt angle sensors, track estimated the life of the consignment for liquidation and inventory management, reduce factory accidents (forklift accidents) by observing and monitoring the driver behavior. Augmented reality enabled wearable gadgets aid better vision in picking the right product. Benefits: Track and trace assets Faster & planned delivery.Better traffic & fleet managementBetter Inventory management

Warehouse Environment

Forklifts and other machineries

Warehouse Stacks

Security ofthe Warehouse

Security ofthe Warehouse

Physical storage conditions of consignment in warehouse and safety for the workers

Helps in moving goods withinthe warehouse

Goods need to bemonitored and stored according to the prescribed direction of storage. Generate information from storage stack

To monitor and safeguardthe assets. Recording using IP enabled camera

To monitor and safeguardthe assets. Recording using IP enabled camera

Motion detection, continuous monitoring,

Occupancy & motion detection sensors

Occupancy & motion detection sensors

Motion detection, continuous monitoring,

Information regarding the product life expectancy, RFID tags to show batch number and relatedinformation. Confirming the seating of goods in stack

Temperature Sensors, RFID detectors, Position Sensors, Humidity Sensors, position sensors

Real time monitoring, Oil Analysis, sensors to detect pedestrians and obstacles

Infrared sensors, Oil Sensors, Occupancy and motion sensors

Temperature, Humidity, RFID tags, smoke detectors, Lighting, AC andpower information

Temperature Sensors, Humidity Sensors, RFID tags, Light Sensors,

Conclusions

Industrial Internet of Things is like a magic wand for the developing countries as it would provide them an opportunity to leapfrog developed countries in digital infrastructure and technology. Developing countries may leverage the state-of-art embedded sensors and connectivity from the outset, which would enable the next wave of smart services.

Technology providers should begin to enforce best security practices and develop common technology test beds where myriad of devices can work together. Tech-nology Adopters should reshape their whole business model and strategies to partner with relevant ecosystem partners to build their capabilities. The industries, government, and academia need to collaborate on fundamental technology chal-lenges related to security, interoperability, and management of systemic risks.

The Industrial IoT would transform how organizations look at operational efficiency. Companies searching for new business opportunity leveraging IIoT would be able to achieve this through 3 approaches

• Boosting the revenues by creating new hybrid business models thereby increasing the production • Investing in Intelligent technologies and building technology test beds in a holistic manner to fuel innovation • Transform workforce operational efficiency

The value of Industrial IoT would be realized by the confluence of a multitude of technologies enablers such as Cloud, Big data, mobility, and analytics. This makes it imperative for an organization to invest in End to End Security. IT and OT leaders responsible for security policies should enforce security throughout the supply chain and establish strong corporate buy-in and governance.

Aditya is a certified Business Analyst/Product Manager, who holds the Vice Chair position for the IoT work group at TSDSI -TEC , a IoT specific standard development organization . He is a certified Business Analytics , ITIL v3, Business Continuity Man-agement and Business Process Framework Professional. He has a rich experience in technology R&D, Product Management and Solution Offerings with special focus on Internet of Things domain. Aditya holds a MBA degree from Symbiosis International University with a Bachelors’ degree in Computer Science Engineering. He has authored multiple whitepapers and article under IoT & you can reach him at aditya.basu@happiestminds.com “

Mithun Jacob did his summer Internship with Happiest Minds Technologies working on the Internet of Things domain. He is presently pursuing his MBA from Symbiosis Institute of Telecom Management, Pune and is an ITIL v3 certified professional.

About The Authors

Articles, Blogs & Webcasts1. 10 IIOT predictions and beyond-NASSCOM official blog http://blogs.nasscom.in/10iiotpredictionsfor2016andbeyond/2. India Renewing Focus on Growth in Manufacturing and Investing to Become Global Innovation Hub- BCG Press Release http://www.bcgindia.com/media/PressReleaseDetails.aspx?id=tcm:872062673. Industrial IoT Enables New Revenue Sources for Equipment Manufacturers-NASSCOM Official Blog http://blogs.nasscom.in/industrialiotenablesnewrevenuesourcesforequipmentmanufacturers/4. Headwinds in the Machinery Market Create Incentives for OEMs to Increase Service Revenues through IIoT- ARC insights http://hannovermesse.events/wp-content/uploads/2016/03/Head winds-in-the-Machinery-Market-Create-Incetives-for-OEMs-to-I crease-Service- Revenues-through-IIoT.pdf5. Machine Learning Changing the Economics of Business, Industry, and Society- ARC insights http://hannovermesse.events/wp-content/uploads/2016/03 /Machine-Learning-Changing-the-Economics-of-Business-Industry-and-Society.pdf6. Industrial Internet of Things, Industry 4.0 & Information Integration November 2015 http://www.controleng.com/single-article/industrial-intnet-of-things-industry- 40/3128ddb02a65498e0cbf8f74a75ce43c.html7. Webcast-Cyber security technologies and strategies, tips for industrial control systems-Control Engineering8. Webcast- Industrial Internet of Things (IIoT) and Industry 4.0 webcast: Overview and practical advice for today-Control Engineering9. Webcast-Information integration and industrial internet of things-Control Engineering10. Webcast –IOT Integration Consideration-Control Engineering11. Webcast - INDUSTRIE 4.0 CHANCES AND CHALLENGES FOR SME Prof. Dr.-Ing. Thomas Bauernhansl April 25th, 201612. Cellular internet of things-5g America http://www.4gamericas.org/en/resources/infographics/cellular-internet-things-ciot/13. Enabling intelligent decisions in the internet of things-IOT & Business https://www.bosch-si.com/internet-of-things/iot-down loads/iot-business-rules-white-paper/intelligent- decisions-internet-things.html14. 2016 Digital Report on IIOT-CFE Media15. Industrial internet of things-unleashing the potential of connected products and services- World Economic Forum 2015 http://www3.weforum.org/docs/WEFUSA_IndustrialInternet_Report2015.pdf16. Advice on integrating legacy technology with IIOT-Control Engineering http://www.controleng.com/single-article/advice-on- integrating-legacy-technology-with-iiot/c98f4dc070dd191b1a156bedc03439c2.html17. Essentials of industrial Ethernet- Turck industrial automation http://www.putmanmedia.com/assets/Essentials_Ethernet_Turck.pdf17. A new age of industrial production The Internet of Things, Services and People-ABB http://new.abb.com/docs/default-source/technology/a-new-age-of-industrial-production--- iotsp.pdf?sfvrsn=218. Process automation and the IOT : Yokogawa’s Vigilant plant approach to the connected Enterprise-ARC White Paper19. Man and Machine in industry 4.0.How will technology transform the industrial workforce through 2025?-BCG http://www.bcg.it/documents/file197250.pdf20. Changing the game in industrial goods through Digital Services-BCG https://www.bcgperspectives.com/content/articles/engneered-products-project-business- automotive-changi ng-game-industrial-goods-through-digital-services/21. Various industrial reports from Markets and markets, IDC, Gartner

References