Nptel: Basics of Industrial Iot: Industrial Processes - Part 2

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Basics of Industrial IoT:

Industrial Processes – Part 2
PT Dr. Sudip Misra

Professor
Department of Computer Science and Engineering
Indian Institute of Technology Kharagpur
Email: smisra@sit.iitkgp.ernet.in
Website: http://cse.iitkgp.ac.in/~smisra/
Research Lab: cse.iitkgp.ac.in/~smisra/swan/
Industry 4.0 and Industrial Internet of Things 1

Industry 4.0 – Different Sectors
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 Smart robotics
 Factory of future
 Intelligent manufacturing
 Smart warehousing




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Air-as-a-Service
Improved mining
Smart logistics
Track & Trace Innovation
Industry 4.0 and Industrial Internet of Things

2
Industry 4.0 @ ICP DAS
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• Energy management • Plant safety
• Pollution monitoring • Surveillance
• Environmental monitoring • Information security
• Smart home/office setup Energy Safety • Environmental safety
•
•
•
•
Logistics
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Supply chain automation
Motion control
Storage & parking
M2M
Manufac
turing
Source: Industry 4.0 at ICP DAS Co. Ltd.

•
•
•
•
Machine internetworking
System health diagnosis
Production efficiency
Remote management

3
Caterpillar: IoT + AR Sensor-equipped
Machinery
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 Smart view using IoT and
Augmented Reality (AR) Wireless
 Real-time machine status and Communication
condition monitoring
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 Ease of interaction with machines
AR App
 App-based instructions for novices
 Custom alerts for parts replacement
 Long term data analytics to predict Users
future failures & budget
Source: Caterpillar Inc.

4
Amazon: Smart Warehousing
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 Logistics & supply chain management
 Smart control of supply fleet
 Logistic status update with future market demand
 Tech-drivers:
 Warehouse Automation
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 Human-Machine Interaction
 Robot-equipped goods storage & pickup facility in warehouse
 Lower operational cost
 Faster operating time
Source: Industry 4.0 at ICP DAS Co. Ltd.

5
Boeing: Efficient Manufacturing
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 Smart & digital manufacturing facility
 Helps in assembling of millions of aircraft parts
 Automation of assembly steps
 Lower assembly delay & response time
 Reduced errors in manufacture & assembly

 Tech-drivers
PT
Enhanced production capability
 Smart glasses for fault detection

 Sensor-equipped assembler tools
Source: The Boeing Company, “System And Method For Using An Internet Of Things Network For Managing Factory Production”, US Patent 20160202692, 2016.

6
Cisco & Fanuc: Smart Factory
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 The objective is to minimize downtime in industrial facility
 Tech-driver
 Sensor-equipped robotic manufacturing facility
 Cloud-based analytics
 Predictive maintenance & failure forecasting


 PT
The system can place orders for replacing failed parts
Zero Downtime (ZDT) system by Fanuc increases efficiency
Connection between different production phases & accordingly
refill of warehouse stocks
Source: NIKKEI Asian Review, “Boy, do Fanuc and Cisco have a deal for your factory”, Online article, 22 Jan 2016.

7
Hitachi: Integrated IIoT
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Applications
 Lumada IoT platform
Co-creation Services
 AI-powered advanced analytics
 Solution Core: Replicable Solution Core
components for custom services
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Lumada Platform
 Co-creation Services: Co-design
facility for customers Data from Devices
 Production acceleration for
application needs Figure: Hitachi IIoT platform hierarchy
Source: Lumada IoT Platform, Hitachi

8
John Deere: Precision Agriculture
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 On-board GPS for real-time tracking of agricultural equipment
 Telematics technology for forecasting & maintenance
 Bale mobile app for geo-tagged yield mapping & bale
monitoring
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 Implementing remote control of tractor navigation
 The future goal is to enable autonomous agricultural
operations without human intervention by self-driving
tractors
Source: Agriculture Technology, Precision Agriculture, John Deere

9
Kaeser Kompressoren: Air-as-a-Service
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 Sensor-equipped air compressors
 Ease of predicting the future failures and maintenance cost
 Air-as-a-Service: Users pay per cubic meter of air from
company’s owned compressors
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 Service models: Selling, Renting, and Air-as-a-Service
 Operation cost reduction as lesser customer services requests
are generated
Source: Kaeser Kompressoren – Service

10
Real-Time Innovations: Smart Grid
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 Smart energy management system with Connext DDS
 Integrated apps and devices – scalable, secure & reliable
 Modular design, faster connectivity, high throughput
 Facility for deploying analytics in edge or cloud
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 Product suite
 Professional version: End-to-end solution, scalable & reliable
 Secure version: Enhanced & secure version
 Micro version: Specifically for resource constrained systems
 Cert version: Safety-centric IIoT systems
Source: Real-Time Innovation Products

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Komatsu: Improved Mining
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 Technology sectors
 Mining Intelligence: Higher profit by predictive machine performance analysis
 Proximity Detection: Enables workers to stay safe from hazards & large machines
 Environmental: Reduced dust, ignition – increased visibility, optimal use of water
 Tech-driver:
 Internet connected robots
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 Self-driving trucks
 Wireless sensors
 Systems
 PreVail remote health monitoring system
 JoyConnect
 Longwall 3D Visualization
Source: Komatsu

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Rio Tinto: Futuristic Mining
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 Central control facility with visualization & collaboration tools
 Real-time monitoring and optimization of supply chain
 Autonomous haulage systems (AHS): a fleet of autonomous trucks
 Safe & efficient navigation resulting in increased productivity

PT
Automated drilling system (ADS): Enables remote operator to
control drilling
 AutoHaul® is the system for autonomous trains to carry iron ore
Source: Rio Tinto – Mine of Future

13
Stanley Black & Decker: Smart Construction &
Engineering
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 Innovation Sectors:
 Engineering: Solutions for product assembly – automotive, computer,
home appliances, telecommunications, solar panels.
 Pipeline: High quality reliable pipeline for oil & gas industry
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 Infrastructure: Solutions for equipment required in construction &
maintenance
 Lightweight vehicles: ECOSMART™ innovative solution which
reduces energy requirement and carbon footprint
Source: Stanley Black & Decker

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Shell: Smart Oil & Gas
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 Digital oil field: Sensor-equipped oil & gas machinery, valves
and pumps
 Enabling precise operation for shale gas recovery
 Real-time monitoring and optimization facility
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 Faster production decisions to reduce slower production rate
 Improved production, reduced downtime & risk, lower costs
Source: Shell – Energy & Gas

15
North Star BlueScope: Industrial Safety
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 Worker death rate due to work-related disease/accident:
~1/15 seconds [Source: International Labor Organization]
 Wearable safety gadgets for industrial workers
 Analytics & IIoT: hazardous condition monitoring, work
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environment safety
 Enforcing proper safety conditions
 Interconnected workers
Source: International Labor Organization; North Star BlueScope

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Maersk: Smart Logistics
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 IoT and analytics to optimize the route & fuel consumption for
containers
 Remote control & maintenance of containers according to its
content – dry cargo, refrigerated cargo, or special cargo
 Facility for users to remotely monitor the condition inside cargo
PT
 End-to-end shipment: Source to destination shipping covering
intermodal transport
 Trade finance: Solution to control the flow of goods & optimize
pricing
 Other solutions: Supply Chain Optimization & Freight Forwarding
Source: Maersk Solution

17
Magna Steyr: Smart Factory
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 Digital mapping of entire production timeline
 Vehicle engineering
 Production line implementation
 Intelligent production system: Accurate, scalable, reliable &
PT
dynamic to changed needs
 Full autonomy of factory: network of humans, machines &
resources
 Solutions: Driver assistance system, Alternative energy storage
system, Lightweight design & joining system
Source: Magna Steyr – Capabilities

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Gehring: Connected Manufacturing
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 Internet-connected sensor-equipped machinery enables real-
time data streaming
 Smart projection of machine functionalities to customers in
real-time: precision & efficiency check
PT
 Cloud-based analytics to reduce production downtime &
increase productivity
 Provision for real-time tracking & monitoring of machinery
 Facility for data visualization & additional analytics
Source: Gehring Technologies

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Bosch: Track & Trace Innovation
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 Solution to ease the searching of the different tools/parts in a factory
 Sensor-equipped tools/parts can be tracked and traced
 Reduction in searching time and risk for using wrong tools
 Asset/work management
 Integrated manufacturing
PT
 Future impact: Can help in automated sequencing of assembly operation
 Tools-as-a-Service: New business model for efficient productivity,
enhanced safety & product quality
 The same technology can be applied to many other sectors of the industry
– food, logistics, supply chain, pharmacy, etc.
Source: Bosch Track & Trace Innovator

20
KUKA: Connected Robotics KUKA Connect
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Cloud-services
 Connected robotics system for Analytics
SaaS
super-fast manufacturing Apps
 Internetwork between the robotic
assemblers and components
Middleware/
PT
 Smart factory with robots Fog Node
connected to private cloud as
solution for the clients
IaaS
 Analytics on collected data to
Sensors
generate better future strategies
Source: KUKA Connect

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References
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[1] Industry 4.0 at ICP DAS Co. Ltd., Web: http://www.icpdas.com/
[2] Caterpillar Inc. Web: https://www.caterpillar.com/
[3] Industry 4.0 at ICP DAS Co. Ltd., www.icpdas.com
[4] The Boeing Company, “System And Method For Using An Internet Of Things Network For Managing Factory
Production”, US Patent 20160202692, 2016.
[5] NIKKEI Asian Review, “Boy, do Fanuc and Cisco have a deal for your factory”, Online article, 22 Jan 2016.
PT
[6] Lumada IoT Platform, Hitachi, Web: https://www.hitachivantara.com/en-in/products/internet-of-
things/lumada.html
[7] Agriculture Technology, Precision Agriculture, John Deere, Web: https://www.deere.com/en/technology-
products/precision-ag-technology/
[8] Kaeser Kompressoren – Service, Web: http://www.kaeser.com/int-en/services/
[9] Real-Time Innovation Products, Web: https://www.rti.com/products
[10] Komatsu, Web: https://mining.komatsu

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References (cont.)
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[11] Rio Tinto – Mine of Future, Web: https://www.riotinto.com/australia/pilbara/mine-of-the-future-
9603.aspx
[12] Stanley Black & Decker, Web: http://www.stanleyblackanddecker.com/
[13] Shell – Energy & Gas, Web: https://www.shell.com/energy-and-innovation.html
[14] International Labor Organization, Web: http://www.ilo.org/global/topics/safety-and-health-at-work/lang--
en/index.htm
PT
[15] North Star BlueScope, Web: http://nsbsl.com
[16] Maersk Solution, Web: https://www.maersk.com/solutions/
[17] Magna Steyr – Capabilities, Web: http://sitefinity.magna.com/capabilities
[18] Gehring Technologies, Web: https://www.gehring.de/en-ww
[19] Bosch Track & Trace Innovator, Web: https://www.iiconsortium.org/track-and-trace.htm
[20] KUKA Connect, Web: https://connect.kuka.com/en-EN/

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PT
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Business Models and Reference Architecture for IIoT
Business Models – Part 1
PT Dr. Sudip Misra

Professor

What is a Business Model?
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 “A business model describes the rationale of how an
organization creates, delivers, and captures value”
[Business Model Generation]
 It is the embodiment of the organizational and financial
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architecture of a business
 Description of how a business intends to operate and earn
profits in a specific marketplace

Building Blocks of a Business Model
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Cost Value
Proposition
Revenue
Market
Generation
Segment
and Margins
Revenue
Business
PT
Model Resources
Position in
Value Chain
Value
Structure
Network
Competitive
Strategy Activities

Building Blocks of a Business Model (Contd.)
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 Value Proposition
 Products or services that create value for a customer segment
 Values may be:
 Quantitative
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 Price, product or service performance, post-purchase cost reduction
 Qualitative
 Design, customization, customer experience, brand

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 Market Segment
 Different groups of customers or end-user organizations that the
business enterprise aims to serve
 There are different types of customer segments:
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 Mass market
 Niche market
 Segmented
 Diversified
 Multi-sided markets

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 Value Chain Structure
 The key resources and activities that a business requires to create
value proposition
 Resources:
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 Can be Physical, Intellectual, Human, Financial
 Key resources can be owned or leased by the company or acquired from
key partners.
 Activities:
 Production, Problem solving, Platform/Network

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 Revenue Generation and Margins
 The revenue that is generated from each customer segment in a
business
 Two different types of Revenue Streams -Transaction revenues and
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Recurring revenues
 Ways to generate revenue – Asset sales, Subscription fees, Usage fee,
Leasing/Renting, Licensing, Brokerage, Advertising
 Two types of pricing – Fixed and Dynamic

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 Position in Value Network
 Value proposition also depends on the network of suppliers and
partners
 Partnerships and alliances created to –
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 Optimize business models
 Reduce risks
 Acquire resources

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 Competitive Strategy
 Strategy of a particular company to gain competitive advantage over
its competitors in the market
 Three generic competing strategies:
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 Cost leadership
 Differentiation by bringing something unique to customers
 Focus on a small market segment or a niche rather than the mass market

Need for New Business Models for IoT
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 Advent of IoT has resulted in the following:
 Increased business opportunities
 Efficient processes
 Enhanced asset utilization
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 Increased productivity
 Business challenges in IoT:
 Diversity of objects
 Immaturity of innovation
 Unstructured ecosystems

Need for New Business Models for IoT (Contd.)
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 IoT business models must address these requirements:
 Extend scope beyond the company level to ecosystem level
 Support design/visualization of complex value streams within the
stakeholder network
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 Explicitly consider the value proposition for all key stakeholders (e.g.,
users, customers, and partners)
 Consider data as an asset within and beyond the actual opportunity

Types of Business Models for IoT
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 Subscription Model
 Outcome-Based Model
 Asset-Sharing Model
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 IoT-as-a-Service
 Others:
 IoT Products as a Proxy to Sell Another Product
 IoT Products as a Vehicle to Monetize Data

Subscription Model
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 Data generated by IoT devices is “consumable, measurable
and repeatable”
 It is capable of generating “recurring” revenue
 Using this model:
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 Instead of a one-time charge, customers are offered a regular
subscription
 Here, a fee is charged for periodic usage

Subscription Model: Advantages
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 Provides predictable, recurring revenue
 The product can be monetized by providing paid upgrades or
by implementing a “freemium” model.
 Businesses are able to foster active relationships with
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customers due to repeated post-subscription interaction
 Businesses are able to learn more about their customers and
are able to provide services specific to their requirements

Subscription Model: Challenges
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 Customer management
 Automatic invoicing
 Plan management
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 Requirement of skilled labor and organizational structure
 Requirement of regular updates

Outcome-Based Model
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 Businesses deliver to the customer the outcome/benefits that
the product/service provides – “Pay-per-outcome”
 Customer is relieved from the responsibilities of ownership,
and maintenance
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 It brings together the businesses and their customers to
monetize the solutions

Outcome-Based Model: Advantages
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 Increased profit margin
 Reduced negotiation cycle
 Higher customer satisfaction
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 Reduced risks
 Better alignment of the value proposition of the vendor and
consumer

Outcome-Based Model: Challenges
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 Requirement of new infrastructure, policies and processes
 Price standardization
 Safe and reliable outcome delivery
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 Lack of proven business models

Asset-Sharing Model
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 Businesses virtually consolidate and share their IoT-enabled
assets among multiple customers or with other business
entities in exchange of revenue
 Revenue is charged based on time or nature of usage
assets
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 Aim is to minimize downtime and maximize utilization of the
 Can be used for Smart Energy

Asset-Sharing Model: Advantages
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 Increased profit margin
 Reduced price for customers
 Ease of scaling of business
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 Reduced wastage of resources

Asset-Sharing Model: Challenges
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 Security of products/services
 Mutual arrangements among business entities
 Asset configuration
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 Device synchronization and synergies

IoT-as-a-Service
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 Businesses provide IoT-enabled products on lease to
customers and earn revenue
 Products can be anything – software, hardware,
information/data, results obtained from analysis of data, etc
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 Revenue based on volume and quality
 Generates recurring revenue
 Example: Sensor-as-a-Service

IoT-as-a-Service: Advantages
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 Reduced licensing costs
 Increased revenue from planned upgrades
 Better aligned value propositions
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 Efficient operations and preventive maintenance by vendors
 Better customer relations

IoT-as-a-Service: Challenges
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 Product compatibility
 Maintaining data accuracy
 Security of data
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Other Models
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 IoT Products as a Proxy to Sell Another Product
 IoT products are sold at cost price or at loss to sell other products
 For example, IoT devices keep track of status of products and perform
actions accordingly
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 Used by manufacturers to sell products which require refills

Other Models (Contd.)
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 IoT Products as a Vehicle to Monetize Data
 IoT-enabled products collect data from users while providing services
 This data is sold by businesses to third party businesses to earn
revenue
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 As per requirement, data is processed and aggregated
 Customers must be made aware beforehand about the usage of their
data and privacy policies

References
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[1] David J. Teece, Business Models, Business Strategy and Innovation, Long Range Planning, Volume 43, Issues
2–3, 2010, Pages 172-194, ISSN 0024-6301
[2] Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, Business Model
Generation, self-published, 2010
[3] H. Chesbrough and R. S. Rosenbloom, The role of the business model in capturing value from innovation:
evidence from xerox corporation’s technology, Industrial and Corporate Change, 11 (3), 529 - 555 (2002).
[4] Westerlund, M., Leminen, S., & Rajahonka, M., Designing Business Models for the Internet of Things (July
PT
2014) Technology Innovation Management Review4(7): 5–14.
[5] Magretta, Joan. (2002). Why Business Models Matter. Harvard business review. 80. 86-92, 133.
[6] M. R. Palattella et al., "Internet of Things in the 5G Era: Enablers, Architecture, and Business Models," in
IEEE Journal on Selected Areas in Communications, vol. 34, no. 3, pp. 510-527, March 2016.
[7] Irene C.L. Ng, David Xin Ding, Nick Yip, Outcome-based contracts as new business model: The role of
partnership and value-driven Relational assets, Industrial Marketing Management, Volume 42, Issue
5,2013,Pages 730-743,ISSN 0019-8501

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PT
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Business Models – Part 2
PT Dr. Sudip Misra

Professor

Business Oppurtunities in IIoT
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 Entrepreneurship theory:
 Asset-driven opportunities
 Service innovations that aid manufacturing
 Service-driven opportunities targeted at end users

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Information infrastructure ownership
 Transaction cost theory:
 Non-ownership contracts
 Performance contracts

Components of IIoT Business Models
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 Value proposition
 Value capturing mechanism
 Value network
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 Value communication

IIoT Business Models: Types
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 IIoT business models can be divided into following categories:
 Cloud-based Business Model
 Service-Oriented Business Model
 Process-Oriented Business Model
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Cloud-Based Business Model
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 Customers do not purchase
Infrastructure-as-a-Service
software, platform or
infrastructure
Platform-as-a-Service
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 Instead, they lease the cloud
computing resources temporarily
Software-as-a-Service

Cloud-Based Business Model (Contd.)
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 Cloud-based BMs comprise manifold offerings
 Processing power
 Data storage
 Virtualization of the operating system online
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 Infrastructure-as-a-Service (IaaS) model
 Aim at providing required hardware and software online in the cloud

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 Platform-as-a-Service (PaaS) model
 Open toward external parties
 Provide development-oriented platforms
 Facilitate the development of applications

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Facilitate the integration of applications into existing solutions
 Software-as-a-Service (SaaS) model
 Offer online capable and customized applications

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 Partner network
 Risk reduction
 Synergies due to economies of scale
 Shared usage of resources
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 Value configuration
 Development of cloud services and applications
 Establishment of partner network

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 Core competencies
 IT resources
 Software infrastructure
 Knowhow
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 Relationships
 Community networks
 Forums

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 Processing power
 Data storage
 Virtualization of the operating system


 PT
Development oriented platforms
Integration of applications
Applications

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 Distribution channels
 On demand
 Target customers
 Educational institutions


 PT
Startups
Independent software vendors
Small and medium-sized enterprises

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 Cost structure
 Cost reduction
 Initial costs for installation
 Service costs
PT
 Revenue model
 Pay-per-use
 Subscription fees
 Advertisement

Service Oriented Business Model
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 Offers
 primarily utilization
 Analysis of data
 aggregation of data
 Example:
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 Medical environment

Service Oriented Business Model (Contd.)
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 Offered to a mass market on demand through infrastructures
and platforms established by Cloud-based BMs
 Provides to customers
 Self-service interface
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 Automated services
 Mass market

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 Partner network
 Community
 Infrastructure providers
 Platform developers
PT
 Distribution channels
 Platforms
 On demand

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 Maintenance and further development of
 Platforms
 Infrastructures
PT
 Applications
 Relationships
 Self-service interface
 Automated services

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 Utilization of data
 Analysis of data
 Aggregation of data
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 Platforms
 Data analysis methods
 Data

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 Cost Structure
 Initial establishment costs
 Variable instead of fixed costs
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 Revenue Model
 Collected data
 Direct and indirect monetization of data

Process Oriented Business Model
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 Process optimization resulting in
 Reduced downtimes
 increased machine availability
 Optimize processes within a company and across company
boarders
PT
 Optimize data analyzed by Service-oriented BMs
 Results in reduced downtimes due to the eliminated delivery
times

Process Oriented Business Model (Contd.)
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 Master complex production processes
 Various production technologies
 Data
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 Platforms
 3D printers

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 Reduced downtimes
 Increased machine availability
PT
 Machine and plant engineering industry

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 Cost structure
 Initial establishment costs
 Revenue model
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 Licenses
 Higher prices possible

IIoT Business Model: Flow
EL
Cloud-Based Service
BM Oriented BM
PT Process
Oriented BM

IIoT Business Model: Flow (Contd.)
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 Cloud-based BMs aim at providing an infrastructure
 Companies operating a Service-oriented BM employ Cloud-
based BMs to gather data and information
 Analyze and sell as a service
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 Analyzed and prepared data help companies with a Process-
oriented BM to optimize process flows

IIoT Business Model: Challenges
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 Security and data privacy
 Physical and virtual worlds combine at a large scale
 Need security frameworks for entire cyber physical stack
 device-level authentication and application security
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 system-wide
 Assurance
 Resiliency
 Incidence response models

IIoT Business Model: Challenges (Contd.)
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 Lack of interoperability
 Increase complexity
 Increase cost
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 Need for seamless data sharing between machines and other
physical systems from different manufacturers

IIoT Business Model: Challenges (Contd.)
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 Uncertain return on investments on new technologies
 Immature or untested technologies
 Lack of data governance rules across geographic boundaries
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 Shortage of digital talent

References
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[1] Michael Ehret & Jochen Wirtz (2017) Unlocking value from machines: business models and the industrial
internet of things, Journal of Marketing Management, 33:1-2, 111-130
[2] Technical report on Industrial Internet of Things: Unleashing the Potential of Connected Products and
Services, World Economic Forum, In collaboration with Accenture, January 2015
[3] Weinberger, M., Bilgeri, D. & Fleisch, E. (2016). IoT business models in an industrial context. Special Issue:
Industrial Internet of Things supporting Factory Automation / Jürgen Beyerer, Thomas Usländer. at -
Automatisierungstechnik, 64(9), pp. 699-706.
PT
[4] Sylwia Gierej,The Framework of Business Model in the Context of Industrial Internet of Things, Procedia
Engineering, Volume 182, 2017, Pages 206-212, ISSN 1877-7058
[5] Arnold, Christian & Kiel, Daniel & Voigt, Kai-Ingo. (2016). How the Industrial Internet of Things changes
business models in different manufacturing industries. International Journal of Innovation Management.
[6] Arnold, Christian, Daniel Kiel, and Kai-Ingo Voigt. "Innovative Business Models for the Industrial Internet of
ThingsInnovative Geschäftsmodelle für Industrie 4.0." BHM Berg-und Hüttenmännische Monatshefte 162.9
(2017): 371-381.

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Reference Architecture – Part 1
PT Dr. Sudip Misra

Professor

IIRA - Introduction
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 Industrial Internet Reference Architecture (IIRA) is an standard
architecture for IIoT systems.
 Standards-based architecture proposed by the IIC Technology
Working Group
PT
 Current Version: IIRA v1.8
 IIRA is broadly applicable in the industrial systems to
 allow interoperability
 map application technologies
 guide technologies
Source: “IIoT Reference Architecture”, IIoT World

IIRA - Introduction (contd.)
EL
 Safety is the major Safety
concern in the IIRA
No
infrastructure, and unexpected Damage to
Condition of risk of
is to be followed property or
PT
the operating physical
environment
by security. system damage or
injury to is avoided
people

Key Performance Indicators (KPIs) for Occupational
Safety and Health (OSH):
EL
 Key performance indicators for OSH is
 a measure of the activities of an organization
 connect/communicate with customer
 provide valuable feedback

PT
drive towards improvement
Source: “Performance Indicators”, Oshkiwi

“KPIs”, Beyondlean

Safety and Health (OSH) (contd.)
EL
 Based on the leading and lagging OSH indicators, KPIs are also
categorized into
 Leading KPI is mainly used to predict the economy. It is
 input-oriented, and
PT
 hard to measure.
 Lagging KPI is a technical indicator which changes after the economy
has begun. It is
 output-oriented, and
 hard to improve Source: “Performance Indicators”, Oshkiwi
“Lagging and Leading Indicators”, Kplibrary

Safety and Health (OSH) (contd.)
EL
Number of lost-time incident frequency rate Percentage of managers with adequate OSH
training
Production days lost due to sickness Percentage of workers with adequate

absence OSH training
PT
Incidents or near misses
Number of fatalities
Lagging KPIs
Frequency of observed unsafe behaviour
Number of OSH audits
Leading KPIs
Source: “Performance Indicators”, Oshkiwi

Industrial Internet Consortium (IIC)
EL
 Industrial Internet Consortium (IIC) is a non-profit organization
created for
 promotion of open standards
 interoperability for technologies
PT
used in industries and machine-to-machine (M2M) environments.
 Testbeds are an area of major focus and activity of the IIC
members.
Source: “Test Beds”, IIConsortium

Industrial Internet Consortium (IIC) (contd.)
EL
 In IIC, the innovations and opportunities of the new
technologies, new applications, new processes, new products
and new services are
 initiated,
PT
 conceptualized, and
 rigorously tested
before they are launched in the market.
Source: “Test Beds”, IIConsortium

IIRA Framework
EL
 Stakeholders are the
 individual, team or organizations having interest concerning to a system
 interest in the viewpoint and system.
 Viewpoints are the collection of ideas which
PT
 describe,
 analyze, and
 solve the set of specific concerns.

IIRA Framework (contd.)
EL
Viewpoint 1.1
Viewpoint 1.2
Stakeholder 1
PT
Concept taken from: “IIoT Reference Architecture”, IIoT World
Viewpoint 2
Stakeholder 2

EL
Architecture 1.1 Viewpoint 1.1
Viewpoint 1.2
Architecture 1.2 Stakeholder 1
Architecture 2 PT Viewpoint 2
Concept taken from: “IIoT Reference Architecture”, IIoT World Stakeholder 2

EL
 Architecture frame is the collection of ways which
 identify,
 describe, and
 analyze the ideas of stakeholders
PT
 Architecture representation is the collection of outcomes of
 architecture frame, and
 expressed as a view.

IIRA-Architecture Patterns
EL
 Different IIoT architecture implementation patterns are as
follows:
 Three-tier architecture pattern
 Gateway-mediated edge connectivity and management architecture
PT
pattern
 Layered databus pattern

IIRA: Three-tier architecture pattern
EL
Data flow Data flow
PT
Edge layer
Control flow
Platform layer
Control flow
Enterprise layer

IIRA: Three-tier architecture pattern (contd.)
EL
 Edge layer gathers data from the edge nodes. The architecture
includes
 breadth of distribution
 governance
PT
 location
 Platform layer receives, process, and forwards control commands
from the enterprise layer to the edge layer.

IIRA: Three-tier architecture pattern (contd.)
EL
 Enterprise layer receives data flows from edge layer and
platform layer. The Enterprise layer implements
 domain-specific applications,
 decision support systems, and
PT
 provides interfaces to end-users.

IIRA: Gateway-Mediated Edge Architecture
Local Area Network
EL
CO
CO
CT
PT
Sensors and Actuators Edge devices/Gateway
Wide Area Network

IIRA: Gateway-Mediated Edge Architecture (contd.)
EL
 The gateway-mediated edge architecture consists of
 a local area network for the IIoT edge system, and
 the gateway connecting the Wide Area Network.
PT
 The local area network may use
 hub-and-spoke topology
 mesh topology

IIRA: Gateway-Mediated Edge Architecture (contd.)
EL
 The gateway devices act as
 management point for the edge devices locally
 data transfer, processing and analytics
 local connectivity among the devices

PT
application logic which performs within the local scope.

IIRA: Layered Databus Pattern
EL
Smart Machines System of Systems Industrial Internet
Inter-site bus
Client
PT Layered databus
CO CT

IIRA: Layered Databus Pattern (contd.)
EL
 Smart machines are present in the lowest level for
 local control,
 automation.
 System of systems allows
PT
 complex systems,
 monitoring, and
 analytic applications

EL
 Layered Databus pattern is applicable in the field of
 control,
 local monitoring, and
 analytics.
PT
 The databus communicates between applications and devices.
 It allows interoperable communication between endpoints.
 For communication between machines, another databus is used.

EL
 Layered Databus pattern allows
 fast device-to-device integration with minimum response time.
 automatic data and application delivery
 scalable integration of devices


PT
availability of the system is high, and
hierarchical subsystem isolation.

References
EL
[1] Anthea Zacharatos and Julian Barling, Roderick D. Iverson, “High-Performance Work Systems and Occupational Safety”,
Journal of Applied Psychology, 2005, Vol. 90, No. 1, 77–93.
[2] http://iiot-world.com/connected-industry/iic-industrial-iot-reference-architecture/
[3] https://www.networkworld.com/article/3243928/internet-of-things/what-is-the-industrial-iot-and-why-the-stakes-are-
so-high.html
[4] P A Wordworth, “A Reference Architecture for Enterprise Architecture”.
[5] William Ulrich, “Business Architecture: The Art and Practice of Business Transformation”.
PT
[6] Graham Meaden and Jonathan Whelan, “Business Architecture: A Practical Guide”.

EL
PT
EL
Reference Architecture – Part 2
PT
Dr. Sudip Misra
Professor
N Website: http://cse.iitkgp.ac.in/~smisra/

IIRA Viewpoints
 IIRA viewpoints are described analyzing the use cases developed by Industrial Internet
EL
Consortium (IIC), which are as follows:
 Business viewpoint
 Usage viewpoint
 Functional viewpoint
PT
 Implementation viewpoint
N
“IIoT Reference Architecture”, IIoT World

IIRA Viewpoints (contd.)
Validate & Revise Guide
EL
Business Usage Functional Implementation
Viewpoint Viewpoint Viewpoint Viewpoint
PT
Healthcare Energy Transportation
Inventory
Manufacturing Mining
management
N
Applications

Business Viewpoint
Vision
EL
Business Decision Makers
Values Usage Activities
PT
Key
Objectives System
Requirements
Fundamental
Capabilities
N
System Engineers

Business Viewpoint (contd.)
 The business viewpoint from the perspective of an IIoT system is related with
EL
 business value
 expected return on investment
 cost of maintenance
 product liability
PT
N

 Stakeholders play a
EL
 major supportive role in the business
 strongly influence its direction
 drives the conception and development of IIoT systems.
PT
 Vision describes
 future state of the organization
 provides business direction towards which the organization works
N

 Values indicate
EL
 vision recognized by stakeholders involved in funding
 provide the logic regarding the merit of vision.
 Key objectives are measurable and time-bound. They are expressed as
 high-level technical
PT
 business outcome expected from the system.
N

 Fundamental capabilities are high-level specifications which are essential to
EL
complete business tasks.
 Key objectives are basis for the identification of fundamental capabilities.
 Capabilities are the ability of the organization to perform any function. They are specified
independently.
 Stakeholders obtain the fundamental capabilities from the objectives, which are necessary for a
PT
system.
N

Usage Viewpoint
System
EL
Activity
Role
PT
Role
Agents
Functional
Component
Task
Implementation
N
Component

Usage Viewpoint (contd.)
 Usage viewpoint are related with the
EL
 key capabilities identified in the business viewpoint
 activities that coordinate the different units of work.
 Task is
 basic unit of work
PT
 carried out by a party assuming a role
N
Industry 4.0 and Industrial Internet of Things10

 Execution of a Task
EL
 Role Role
 Functional map: describes the functional component
of the task maps.
 Implementation map: depends on the execution of Task Functional map
the task.
PT
Implementation map
 Role
 set of capacities assumed by an entity or organization
 initiates or participates in the execution of tasks.
N

 Activity is
 coordination of specific tasks
EL
 required to realize a well-defined usage of a system
 executed repeatedly
 Activity has trigger, workflow, constraints, and effects
PT
N

 The elements of an activity are
EL
 Trigger: conditions under which the activity is initiated. Trigger
 Workflow: sequential, parallel, conditional, iterative

organization of tasks. Workflow
Activity
 Effect: state of the IIoT system after successful completion of
an activity.
PT
Effects
 Constraints: system characteristics which must be preserved
during execution.
N Constraints

Functional Viewpoint
EL
Control Operations Information Application Business
domain domain domain domain domain
PT
Functional Domain
N

Functional Viewpoint (contd.)
Functional Domain
EL
Control
Operations Information Application Business Control

domain domain domain domain domain Communication Sense
PT
Physical Systems
Actuation
N

 The control domain represents the set of functions performed by industrial control
EL
systems, which are as follows:
 Sensing: Reading the data from sensor nodes.
 Actuation: Writes data and control signals into an actuator.
 Communication: Connects the sensors, actuators, gateways and other edge devices.
PT
N

 The operations domain represents the set of functions responsible for
EL
 Provisioning and deployment: Configure, track, register, and deploy assets online remotely,
securely and at scale.
 Management: Enables management of assets which is focused on the suite of management
commands.
PT
N

 Prognostics: Acts as a predictive analytics engine of the IIoT systems.
EL
 Monitoring and diagnostics: Responsible for real-time monitoring, and enables detection and
prediction of occurrence of problems.
 Optimization: improves asset reliability and performance, reduces energy consumption, increases
availability, and output in according to the assets used.
PT
N

 The information domain represents the set of functions responsible for
EL
 assembling data from various domains, where data consists of
 quality of data processing
 syntactical transformation
 semantic transformation
 data persistence and storage
PT
 data distribution
N

 The information domain represents the set of functions responsible for
EL
 assembling data from various domains
 transforming
 persisting
 modelling/analysis of data
PT
N

 The application domain represents the set of functions which implement
EL
application logic to realize specific business functions
 Logics and Rules: Implements specific functions required for the use case.
 APIs and UI: Enables an application exposes its functions as APIs for other applications to
consume.
PT
N

 The business domain represents the set of functions which enables end-to-end
EL
operations of the IIoT systems by integrating them with traditional or new type of
business functions which includes
 supporting business processes
 procedural activities.
PT
N

Implementation Viewpoint
 The implementation viewpoint relates to the
EL
 technical representation of an IIoT system including interfaces, protocols, and behaviors
 identification of system characteristics
 general architecture of IIoT-its structure, distribution and the topology of interconnection of the
components
 Implementation map of the activities as recognized from usage viewpoint to the functional
PT
components, and from functional components to implementation components
N

References
[1]http://iiot-world.com/connected-industry/iic-industrial-iot-reference-architecture/
[2] https://www.networkworld.com/article/3243928/internet-of-things/what-is-the-industrial-iot-and-why-the-stakes-are-so-high.html
EL
[3] https://www.iiconsortium.org/IIRA.htm
[4] https://www.intel.in/content/www/in/en/internet-of-things/white-papers/iot-platform-reference-architecture-paper.html
[5] https://dzone.com/articles/azure-iot-in-the-industrial-world
[6] P A Wordworth, “A Reference Architecture for Enterprise Architecture”.
[7] William Ulrich, “Business Architecture: The Art and Practice of Business Transformation”.
[8] Graham Meaden and Jonathan Whelan, “Business Architecture: A Practical Guide”.
PT
N
EL
PT
N

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EL

Basics of Industrial IoT:

PT Dr. Sudip Misra

Industry 4.0 and Industrial Internet of Things 1

Industry 4.0 and Industrial Internet of Things

Source: Industry 4.0 at ICP DAS Co. Ltd.

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

 Smart glasses for fault detection

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Source: Shell – Energy & Gas

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

Industry 4.0 and Industrial Internet of Things

PT Dr. Sudip Misra

Industry 4.0 and Industrial Internet of Things 1

 It is the embodiment of the organizational and financial

Industry 4.0 and Industrial Internet of Things 2

Industry 4.0 and Industrial Internet of Things 3

Industry 4.0 and Industrial Internet of Things 4

Industry 4.0 and Industrial Internet of Things 5

Industry 4.0 and Industrial Internet of Things 6

Industry 4.0 and Industrial Internet of Things 7

Industry 4.0 and Industrial Internet of Things 8

Industry 4.0 and Industrial Internet of Things 9

Industry 4.0 and Industrial Internet of Things 10

Industry 4.0 and Industrial Internet of Things 11

Industry 4.0 and Industrial Internet of Things 12

Industry 4.0 and Industrial Internet of Things 13

Industry 4.0 and Industrial Internet of Things 14

Industry 4.0 and Industrial Internet of Things 15

Industry 4.0 and Industrial Internet of Things 16

Industry 4.0 and Industrial Internet of Things 17

Industry 4.0 and Industrial Internet of Things 18

 Can be used for Smart Energy

Industry 4.0 and Industrial Internet of Things 19

Industry 4.0 and Industrial Internet of Things 20

Industry 4.0 and Industrial Internet of Things 21

Industry 4.0 and Industrial Internet of Things 22

Industry 4.0 and Industrial Internet of Things 23

Industry 4.0 and Industrial Internet of Things 25

Industry 4.0 and Industrial Internet of Things 26