Industrial Internet Now

Reinventing traditional industries

New realms and areas of innovation can be daunting for individuals and organizations alike. Navigating through the maze of prospects and opportunities, and then recognizing the viable ones to pounce and build on, makes the Industrial Internet of Things a jungle of locks for the shrewdest of locksmiths to take on. Anja Hoffmann, the Founder of Copenhagen based strategy and innovation consultancy company Sentio Lab, is convinced that industries are full of such locksmiths, however, she holds that too often those clutching the keys don’t have a clear mindset as to what locks they ought to open. For Hoffmann, companies across industries must first focus on themselves, before venturing to capitalize – and make sense of – the countless opportunities made possible by new data and technology.

“As increasingly many industries are becoming tech-driven, I always start by looking at the mindset of the company looking to shift their focus to technology, regardless of their industry,” says Hoffmann, who also works as an Innovation Mentor for High-Tech Companies at Scion DTU. “In general, I think we have a lack of mindset across industries when it comes to understanding both the opportunities, and challenges in developing business models using new technologies,” she continues.

Hoffmann’s call for a more measured approach is far from baseless. She has been working closely with a wide range of industries for several years, thus gaining a unique vantage point. For her, more “traditional” industries often struggle to reinvent their approaches internally, especially when it comes to customer relations. However, there are exceptions.

“The pulp and paper industry, which I’ve been working with for some years, is an interesting example of a sort of hybrid between tradition and innovation. When it comes to the production process they remain very traditional and even historical, but because many of their customers are creative and innovative, they have been forced to think about new ways for longer than for instance the steel industry.”

In the case of the pulp and paper industry, mindsets have thus been revised by partners and other actors within an ecosystem, something Hoffmann feels very strongly about. For her, ecosystems and value chains represent one and the same thing.

“Companies need to look into their ecosystem, meaning their partners and so on, and ask themselves: what kind of an ecosystem will match our business ambitions in the future? Ecosystems are so important not only in regards to discovering and integrating new technology, but innovation in general. If you consider some of the companies who have asked questions, and succeeded in answering them, they are companies which have recognized that they are more of a service company than a manufacturing company.”

“Companies need to look into their ecosystem, meaning their partners and so on, and ask themselves: what kind of an ecosystem will match our business ambitions in the future?”

Reconciling tradition and innovation

Finding a balance between the two is easier said than done. According to Hoffmann, there should nonetheless be no reason why more “traditional” companies and industries wouldn’t be able to successfully implement a tech-driven agenda, and thrive from what the Industrial Internet promises. She mentions German elevator manufacturer ThyssenKrupp as a great example of a manufacturing company looking beyond its own industry, and desiring to be part of something what would traditionally fall outside the operating parameters of an elevator manufacturer.

“Although ThyssenKrupp manufacture what is essentially a technical product, their latest Industrial Internet developments have not been oriented for a traditional elevator business, but instead more for a service business. Because they have built an intelligent ecosystem around their solutions, ThyssenKrupp are transforming not only elevators, but elevator services to be a part of a smart-city movement.”

Living in the present, preparing for the future

Considering the popularity of the phrase “we live in a constantly changing world,” and other variations of it, Hoffmann reminds us that while this certainly remains the case, it’s vital to focus on the here and now.

“If companies pursue interesting and innovative partnerships across corporate investors and start-ups, they can minimize how much they change at once. Sometimes we focus too much on the fact that we live in a fast-paced business world, which is of course true, but we also need to do remember to experiment in the present, especially with already existing businesses. In order to do this, companies must assess how they can change their own DNA by looking into their value chain or ecosystem.”

When it comes to introspection into ecosystems, the role of the Industrial Internet can’t be understated. One prevailing innovation concerning manufacturing companies has been the increasing integration of co-bots – or “collaborative robots” – into joint working environments with humans.

Not too long ago, robots being used in the automotive industry for example, were kept in cages. Since then, co-bots have emerged and are forcing manufactures to rethink the structure and processes of their value chains. According to Hoffmann, this brings the need to question the necessity and future value of certain skills within the entire Industrial Internet landscape.

“When it comes to co-bots, what will be a challenge in the near future not only for the manufacturing industry, but also for the retail industry, is the demand for new skills from workers. The Industrial Internet is affecting business models as well as society, without forgetting the potential drawback of information overload and issues of security.”

Thus, the impact of co-bots should be assessed from a workforce and societal perspective. Co-bot technology will undoubtedly assist in driving profits and quality via reduced margins of error and sustained performance capabilities, however, as Hoffmann notes, companies “will no longer need programmers with specific technical skills to work with these robots.”

Despite new workforce demands and implementation possibilities in terms of what the Industrial Internet offers –  and as long as leaders acknowledge the challenges and opportunities, without “just pushing a certain agenda forward,” – Hoffmann is certain that companies across industries will prosper from IIoT solutions on many fronts.

Anja Hoffmann is the Founder of Copenhagen-based strategy and innovation consultancy company Sentio Lab.

Image credit: chombosan / Shutterstock.com

Think beyond the cloud – How platform players can prepare for the next phase of the IoT

Many companies are already combining advanced automation, cloud computing and IoT services, among others, to transform their operations. In terms of the maturity of industrial ecosystems, however, Marianne Hannula, Head of Service Product Management and R&D at ABB, believes that there is still the need to establish business models that fully support the technology. She talks about what needs to be done to usher in the era of global supply chain ecosystems and how to take full advantage of its build up phase.

“I first came across machine-to-machine communication more than 15 years ago when I was working with mobile internet applications; a lot has happened since then,” shares Hannula. “All this technological advancement has built momentum for the evolution in industrial ecosystems. These now refer to ecosystems that manage and control the performance of multiple pieces of equipment that form the supply chain, not just order-type data transfers.”

The different players in the field have been somewhat focused on their own operations and that has, in certain cases, slowed the development of new ecosystems. According to Hannula, ecosystems that offer a win-win situation for both parties are needed. “In the case of IoT, this should mean win-win-win-win for multiple parties, not just two.”

Data ownership as a matter of agreement

Hannula sees positive signs in that the time has come when these groups – not just the few early adopters and startups – are beginning to be more open to collaboration and data sharing. “That openness is needed to enable global supply chain ecosystems to develop, where data from multiple sources are combined for the improved performance of the supply chain and for the benefit of end users.”

As data ownership is more complex in an IoT context, the topic has given rise to various opinions. Hannula sees it as a question of what has been agreed upon. “Basically all players should own their data. Sometimes access to this data might be the sellable item. The question arises when the data facilitates new knowledge as it is analyzed and/or combined with other data,” she continues. “Who then owns this knowledge? Who should be held accountable for the consequences when it is used and something adverse occurs? I view this as a matter of agreement, but the responsibility has to be clearly defined between the stakeholders.”

‘Don’t wait for tomorrow’

With regard to IT and OT convergence, Hannula advises companies to not wait for tomorrow. “Use your existing IT structures and find the connectivity means to combine the data available from multiple devices and systems to enable better business decisions now. With that you will learn and find out where the biggest benefits for your business are.”

In addition to the ability to perform predictive maintenance, Hannula believes that the other clear-cut benefits of the Industrial Internet involve the optimization of performance and quality as well as reliability.

“With real-time data turned into knowledge and insights, we are able to detect topics where the process productivity can be improved and become more efficient. Just saving a second or two in some repetitive process can translate to considerable additional revenues,” she explains. “If that happens in one part of the supply chain, the benefits that can be available at the supply chain level can be even greater. Another example could be automatically combining data from various sources and using that to fine-tune equipment performance. This could lead to savings and better quality.”

“When one talks of the IoT, you often only hear the word cloud. But you also have to consider how these clouds can start talking to each other. Then apart from these clouds, there are storms, sunshine and stars.”

Advice for platform players

Hannula believes that there will be a major build up phase for IoT ecosystems during the next five years. “More and more industrial companies will get involved, there will be more and more cloud solutions, and connections between different cloud platforms will become available. The technological knowledge collected over the years and currently stored in documents – or even only in the heads of experts – will turn into a more automated format, making it scalable and useful to business.”

To take full advantage of these changes, she says that companies should focus on three things. “First is that the future starts today. Start using what is available now and learn from it. The next thing to remember is that IoT is not a game of solitaire: Experiment and collaborate with other players. The third and last is don’t wait to be disrupted. Be open to the idea of adopting new business models and remember the human aspect of all this. Instead of considering something as a threat, embrace it as an opportunity and be curious from a technical perspective.”

Above all, Hannula recommends that platform players widen their general outlook. “When one talks of the IoT, you often only hear the word cloud. But you also have to consider how these clouds can start talking to each other. Then apart from these clouds, there are storms, sunshine and stars,” she concludes. “The cloud is a simplification of a technical aspect, but to gain the full benefit of IoT a broader view is needed.”

Marianne Hannula works as Head of Service Product Management and R&D (Portfolio Management, Development, IoT) at ABB.

Image credit: kerenby / Shutterstock.com

Integrating IT, OT and security: convergence to collaboration

“OT and IT are working towards the same goal, uptime,” writes Daniel McGinn of Schneider Electric.  “Whether that means the comfort of building occupants and business continuity or the specific needs of safety and security.” In part one of a two-part blog entry, McGinn highlights the integration of IT and OT, and what that means for security. Companies developing IoT solutions must consider the implications these new systems, applications or even platforms have in terms of security.

“Keeping buildings operational, IT running and security systems up, depends on the availability of the network and server platforms they are running on, and these systems are only as available as the power supporting them. Because these systems are increasingly connected and open, the departments themselves must come together as well,” notes McGinn. “This is where safety and security now begins for any structure that requires active monitoring and access control.”

Read more about the risks and management challenges of IT environments at: http://blog.schneider-electric.com/datacenter/power-and-cooling/2017/01/04/integrating-it-ot-security/

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Trends and themes from the Industry of Things World USA Survey Report 2017

Findings from the Industry of Things World USA Survey Report 2017 reveal that compared to Europe, the US is very advanced on the software side and IoT platforms, analytics tools, as well as AI approaches. Maria Relaki, Group Production Director at we.CONECT Global Leaders, the organizer of the Industry of Things World conference series, talks about the key results that shed light on the current state of the American IoT market.

A clear majority of the cross-industry IoT and Smart Manufacturing managers that participated in an online survey by Industry of Things World – conducted from August to October 2016 – considers Smart Manufacturing as the main driver and contributor for US manufacturing competitiveness.

“One interesting fact from this year is that 71% of the respondents actually have industrial IoT or Smart Manufacturing systems in their organization, compared with 41% who rated the importance of IoT project implementations in their companies as very important last year,” states Maria Relaki, Group Production Director at we.CONECT Global Leaders.

Relaki adds that another key finding is that access to necessary infrastructure is rated as the biggest challenge to implementing IoT within companies (53%), followed very closely by cost (46%). “The positive news is that in 2016 the biggest challenge was ‘uncertain ROI/ lack of business case’ – so here it seems we have had some significant progress. The business case is now a given and it’s a matter of making it happen,” she says.

The survey also reveals that Smart Manufacturing systems are not applied only on a machine (32%) or plant level (43%), but they are being more and more integrated across all levels (36%) within a business.

Challenges and opportunities

By far the biggest opportunity that IoT offers has been recognized as the increased efficiency (68%) that comes with smart manufacturing systems. “As the second biggest opportunity, respondents listed the competitive advantage that IoT can offer as well as, very interestingly, that it can increase product quality,” continues Relaki.

Access to necessary infrastructure is rated as the biggest challenge to implementing IoT within companies.

According to survey participants, some of the biggest challenges they face involve the lack of standards and interoperability, and costs associated with the integration of new systems. They also cited security breaches – that IoT needs a new security approach rather than the traditional one, for instance – and management buy-in as other factors that affect the implementation of industrial IoT technologies in their organizations.

Trending topics

Relaki believes that the industrial IoT landscape is going through a transition. Shifting industry boundaries are changing competition, and businesses need to be aware of that. “Traditional competitors need to look beyond their universe and keep an eye on how IoT technologies can enable other businesses to eat away parts of their market share.”

The interoperability of connected devices in the world of IoT is still a big issue, one that is subject to discussion. “How far away are we from a universal standardization? Discussing the implementation of open source and open standards might be a way to move into a direction with fast results,” offers Relaki.

While robotics is a theme that is becoming more and more relevant, she says that the human factor in all of this must not be forgotten. “The Internet of Things involves new ways of thinking about how humanity and technology can cooperate differently when ‘things’ get smarter. Augmented reality and virtual reality in manufacturing simulation, as well as M2M and Artificial Intelligence for improved productivity, will be discussed throughout the conference.”

Industry of Things World USA 2017

Organized by we.CONECT Global Leaders Industry of Things World USA is an international knowledge exchange platform where over 500 high level Industrial Internet of Things executives will meet. Scheduled to take place in San Diego, California from February 20 to 21, 2017, this year’s two-day program aims to encourage and inspire participants to rethink their technology and business strategy for scalable, secure and efficient IoT, from cloud, robotics and automation to standards, interoperability and security.

“We will have the pleasure of hearing from Alex Tapscott, a blockchain expert, on the impact of Blockchain on the Industrial Internet and how this will change the way we do business. Jeff Burnstein, President of the Robotic Industries Association, will discuss how robots in a smart factory can use self-optimization, self-configuration and artificial intelligence to complete complex tasks in order to deliver vastly superior cost efficiencies and better quality for goods or services,” shares Relaki.

At the same time, the event will attempt to demystify the complexity of getting started with integrating robotics into an IIoT network. “Small and medium sized companies in particular may be overwhelmed by jargon, fears about cost and the difficulty of knowing how to apply these technologies, so these talks will hopefully be of use to them in understanding how to explore robotics and IIoT further.”

To find out more about the agenda and speakers of Industry of Things World USA 2017, visit http://industryofthingsworldusa.com/en/.

Download the full survey report:

http://industryofthingsworldusa.com/cms/media/uploads/events/3755/dokumente/formular/Industry_of_Things_World_USA_2017-Survey_Report.pdf

Maria Relaki works as Group Production Director at we.CONECT Global Leaders and is responsible for the Industry of Things World global event series.

Image credit: we.CONECT Global Leaders

IoT spending 2017-2020: Internet of Things industry drivers and investments

According to i-Scoop, manufacturing, transportation and utilities are the industries “poised to invest the most in IoT until 2020”. Though currently we are seeing a lot of investments in Consumer Internet of Things (CIoT), it is expected that by 2020 these investments will decrease. The article highlights aspects of the IDC Worldwide Semiannual Internet of Things Spending Guide.

“In the leading IoT industry, manufacturing, operations by far represent the main spending use case ($102.5 billion in 2016 on the mentioned total of $178 billion), outperforming other manufacturing IoT use cases such as production asset management and maintenance and field service. The only exception is the EMEA region, where freight monitoring (transportation) is the main use case, followed by manufacturing operations,” according to the IDC report.

Read more on IIoT investments and patterns per industry and cross-industry at: http://www.i-scoop.eu/iot-spending-2020/

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Mass customization in manufacturing – enabling customer-centric value creation

Traditionally, manufacturing has been defined by supply chains geared towards maintaining production costs as low as possible, with ultimate emphasis placed on output and distribution. These supply chains have largely been both enabled and limited by the hardware systems at their core. As companies are beginning to introduce data-driven, software enabled supply chains, manufacturing will increase in efficiency and mass customization will follow suit. In terms of distribution, platforms and apps are becoming the preferred medium and should be grabbing the attention of material handling industry as well.

Frank Piller, Professor of Management and Scholar of Mass Customization & Open Innovation, shares his thoughts on the intersection of the Industrial Internet and mass customization.

“Manufacturing will really begin to drive business models,” says Piller, who has been leading the Technology and Innovation Management Group at RWTH Aachen University for a decade. Rather than regarding the Industrial Internet solely as an enabler of new business models, Piller sees the technological developments made possible by IIN and IIoT as “drivers of business models.” According to Piller, mass customization plays a pivotal role making this paradigm shift that manufacturing industries are already experiencing, more customer-centric.

“I see the question of manufacturing and the Industrial Internet being defined by two stems of debate; enabling operational excellence on a larger scale on one hand, and using Industrial Internet technologies to drive new business models on the other.” What mass customization makes possible via these two defining principals, is for manufacturing, supply chains and the business model inherent to them, to become more customer oriented. “The ultimate goal of mass customization is for manufacturers not only to become customer-centric, but more so customer-driven, to exploit the heterogeneity of customer demand,” says Piller.

According to Piller, manufacturers will often see the high variety of demand as a challenge, a cost driver and ultimately as a hindrance to maintaining a truly customer-centric manufacturing process. However, what mass customization does, notes Piller, is turns this assumption on its head.

“We should instead see high variety of demand as a profit driver, and do so by allowing for the input of each individual customer at the beginning of the value and supply chains. This doesn’t entail reinventing engineering to order process or craft customization, but doing this with an industrial efficiency that the latest Industrial Internet technologies make possible.”

For material handling, the integration of automated and semi-automated robots into production lines is a big driver for coping with higher degrees of variety, says Piller, who also sees mass customization as something already being utilized in material handling equipment. “A lot of material handling equipment is already engineered to order, meaning it’s highly modular and therefore can fit into existing plant layouts, as well as be integrated into planning and production. Deploying this in larger volumes is the next step.”

“A lot of material handling equipment is already engineered to order, meaning it’s highly modular and therefore can fit into existing plant layouts, as well as be integrated into planning and production. Deploying this in larger volumes is the next step.”

From prediction to action

Closely linked to the paradigm shift taking place in manufacturing are the opportunities that predictive analytics opens up. Piller sees these opportunities as something material handling companies should be taking advantage of and implementing in their systems. “As the basic premise of predictive analytics is that we must guess less, and know more, an implication for a material handling company could be making better forecasts of the incoming flow of material.”

A consumer goods company will traditionally do some market research or extrapolations of the first few weeks of sales, in order to see how sales will develop for the rest of the season. “Now they can get access to much more unstructured data from social media conversations or purchasing behavior in key stores, and thus better predict the operational planning necessary to meet the demand,” says Piller.

However, as with most new data related developments, predictive maintenance and analytics don’t come without potential pitfalls. Piller appropriately sums up the paradox surrounding predive analytics and maintenance, by stating, “the better we are with predictions, the worse we become in executing.

“Imagine a huge plant that has many material handling systems across the globe, and let’s say they are all assessed using predictive maintenance. The plant manager will then know ‘ok, in a weeks’ time, 20 out of my 1000 pieces of equipment will breakdown, and I only have 2 repair teams. How do I allocate them?’ Therefore, action as opposed to prediction is the ultimate goal.”

First an app, then a platform

Another significant development that will only increase the capacity of the Industrial Internet to create new customer-driven business models, is the emergence of the platform economy. However, according to Piller, traditional industries should not be looking to immediately develop a platform as the likes of Amazon and Uber have. For instance, the transportation and material handling industries would benefit by starting off with an app.

“Of course, managers think that ‘we will become a platform,’ but this requires a big mental shift in companies, a shift towards openness. However, I think that traditional industries should first acknowledge the possibilities an app introduces to their business. In a connected world, an app can be a piece of equipment and shouldn’t be limited to the notion of a smart-phone app,” Piller notes.

Becoming a platform-based industry certainly doesn’t happen overnight. What Uber or Amazon managed to do on a consumer level, would be extremely difficult to successfully execute in the industrial world, simply because of the level of openness it requires. For Piller, more companies need to recognize the benefits of an app.

“Established B2B companies are very conservative when it comes to putting their data in a platform, so even if a platform is created by an established player, filling it with meaningful data is a question on its own. Therefore, in terms of market entry, being an app on a platform has a lot of advantages. My advice would be to learn how to become the preferred app, like the Angry Birds of material handling.”

Experimenting for future solutions

Piller is confident that companies experimenting even with more left-field utilizations of the Industrial Internet will ultimately drive innovation, and do so in a customer oriented way.

“Take the Amazon Dash Button, a solution which costs the consumer $4.99. At that price point, even a small established company can start experimenting by asking, for example, ‘what could we do, if we managed to increase the connectivity between equipment that allows you to monitor actions and actives?’”

The issue some managers and CIOs face is making sense of the “huge pile of possible things to do, and sometimes they end up doing nothing,” says Piller. “Therefore, I think it’s always better to start experimenting and testing assumptions in order to get real feedback, instead of making huge PowerPoints.”

Professor Frank Piller will share his thoughts in depth at the 2nd annual Internet of Manufacturing, scheduled to take place in Munich from February 7 to 8, 2017.

Internet of Manufacturing is a strategic conference that gathers together stakeholders from a variety of industries and who play an active role in developing the Industrial Internet.

Among the conference’s keynote speakers who will share their experiences in realizing and capitalizing on IoT are Ernst Stöckl-Pukall, Head of Division – Digitization, Industrie 4.0, German Federal Ministry of Economic Affairs and Energy, Thomas Hahn, Chief Software Expert at the Research and Technology Center of Siemens, Juha Pankakoski, CDO at Konecranes and many more.

To find out more about the agenda and speakers of Internet of Manufacturing, visit http://www.internetofbusiness.net/manufacturing/speakers/

Frank T. Piller works as Professor of Technology & Innovation Management at the Business School of RWTH Aachen University, Germany

Image credit: chombosan / Shutterstock.com

Making the shift from smart factories to living services

The Industrial Internet of Things (IIoT) is transforming the way manufacturers approach matters such as resource allocation, production processes and the workforce. In time, companies will gain even more benefits from the highly automated, end-to-end production integration of intelligent products and services made possible by the IIoT. Edy Liongosari, chief research scientist and managing director at Accenture Labs, talks about critical trends and uncovers advantages that have yet to be widely discussed.  

Operational safety and efficiency are two of the most clear-cut advantages the IIoT brings from the outset. Edy Liongosari believes those are the obvious ones because the return on investment of such initiatives is much simpler to calculate and measure. “When we talk about new products and services, however, the business cases are typically built with a lot of assumptions. Therefore, the confidence on those business cases is lower. But that’s exactly where the big opportunities are.”

Liongosari says that safety and efficiency are just part of the first of four waves of IIoT adoption. The next wave – which he believes has greater transformational impact – consists of the creation of smart products and smart services. “It’s vital to consider how you are going to be able to use the physical products that you have and to think about the product as a way – as a channel if you will – to sell and deliver what we call living services,” he shares.

Living services are contextually aware digital services designed to anticipate and respond to customer needs in real-time through the channel that you have. Liongosari mentions one example that emerged from the IOT Solutions World Congress in 2016: Bigbelly is a connected trash bin that knows exactly when to compact waste and when to unload it. He also cites Claas, the German agricultural machinery manufacturer that has partnered with the free field mapping service 365FarmNet. Together the two use their respective fields of expertise to bring about precision farming, in turn driving the future of agriculture.

A universal standard

In a manufacturing setting, thanks to the convergence of Operational Technology and Information Technology, manufacturing equipment is increasingly connected with larger enterprise systems – from manufacturing execution systems, production management, logistics and enterprise resource planning systems – to allow manufacturers to plan, monitor and adjust their production in real-time.

Liongosari, however, is of the opinion that a universal standard to allow equipment from multiple vendors to communicate and collaborate will not become the norm, at least not in the short term. “It’s primarily because of the diversity of the use cases, environmental conditions, and laws and regulations that fall under the IIoT. For example, the diversity of IIoT infrastructure requirements such as energy consumption, computing and bandwidth availability, mobility and security makes it very hard to have just one sole industry standard,” he explains. However, there are plenty of efforts to make specific IIoT standards to interoperate – to the extent it can be reasonably done – through a variety of testbeds.

“You can see the borders between various industries slowly disappearing because a lot of newcomers are coming to your game very, very quickly. The possibility is really big.”

Critical trends

According to Liongosari, there are four key trends impacting the IIoT. The first deals with automation and artificial intelligence (AI). Our ability to automate or augment work processes using machine intelligence can now be done at the unprecedented scale and precision through the use of AI techniques.

In an automotive manufacturing plant, for example, cameras can be used to learn and detect refined defects in a product. Rather than wait for a batch run to be completed before defects are found, those can be detected in real-time. “Sometimes you don’t realize the presence of small defects until much later on, resulting in a significant loss of work,” he explains, adding that in many cases, existing surveillance cameras can be repurposed for defect prevention in quality assurance by embedding some intelligence in them. “This is what we call the next generation of automation.”

The second key trend is about human and machine interaction. “The industrial workforce itself is changing significantly,” he says. A human workforce is augmented with wearable computing capabilities to significantly increase their efficiency as well as agility, allowing them to take on new tasks at the speed like never before. In addition, collaborative robots – or cobots – that have been used for hospitality and concierge services, are now being expanded to perform simple and repetitive tasks on the factory floor, such as those in Amazon’s warehouses.

The third comprises platforms and ecosystems. “One critical element of smart products is their ability to sense, configure, and respond based on the needs of the customers,” states Liongosari. “It’s not just selling your products and services but the ability to turn the product itself into a platform – just like in Android or iOS – to allow others to build upon it and use it to build a set of rich and interconnected living services provided by a lush ecosystem of business partners.”

The last key trend is cybersecurity, which is rising in importance due to vulnerabilities to attacks, espionage and data breaches brought about by increased connectivity and data sharing. Liongosari brings up the denial of service attack by a Mirai-based botnet that affected IoT devices in September 2016 as a reminder of the importance of cybersecurity in this highly interconnected world.

“In addition to security, privacy and data ethics are increasingly critical especially given the vast amount of customers’ and employees’ data that companies now have access to. In some cases, the concept of data ownership in an organization is being seriously questioned as ownership implies that the organization can do whatever it wants with the data,” says Liongosari.

The use of such data is highly dependent on many factors beyond data privacy laws and regulations. For example, organizations need to factor in the original intention of data when it was provided or captured, ethical interpretation of the analyzed data, and how the results are being used and shared ethically. “How are you going to interpret data uniformly across different countries, laws, interpretations and usages? The meaning of data ownership may change or the term may completely disappear.”

Seizing the opportunity

In order for manufacturers to chart a path of growth through the IIoT, Liongosari offers sound advice. “You can start small in a sense that you can focus on operational efficiency – that there is a specific return on investment that you drive toward. But at the same time, you need to think big because the opportunity is a considerable one,” he says.

“You can see the borders between various industries slowly disappearing because a lot of newcomers are coming to your game very, very quickly. The possibility is really big.” To seize the opportunities of the Industrial Internet of Things, Liongosari sums it up with this mantra: “Start small, think big, and iterate fast.”

Edy Liongosari works as chief research scientist and managing director at Accenture Labs

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Industry 4.0 could move mass customization into the automotive mainstream

Customization, regardless of the product, is always a strong selling point. When introducing the modern Mini, BMW liberalized their customer’s decision-making by offering “hundreds of options to choose from both inside and outside the car,” says Eugene Smethurst, Director and Process Automation Specialist at AECOM, in The Engineer, a UK-based publication for advanced engineering professionals.

What Industry 4.0 has the potential of doing is taking the customization process one step further. Via data integration, companies will be able to seamlessly bridge the relationship between themselves, their suppliers and their customers, to offer a more immediate and modular experience.

“The term [Industry 4.0] refers to a broad coalition of new manufacturing possibilities enabled by the collection, distribution and utilization of data, as well as the seamless connections between processes enabled by the internet. Automation unlocked in this way could bring customization within the reach of even the most cost-conscious buyer,” says Smethurst.

Though customization isn’t exactly a novel innovation, Industry 4.0 introduces facets to the experience which certainly are.  “What Industry 4.0 allows is for this approach to scale up into the millions, while reining in costs and speeding up time to delivery, so that customers are not left waiting months for all of the pieces of their customized car to be brought together or to be in stock at the same time,” says Smethurst.

Read more about the level of customization and collaboration that Industry 4.0 can unlock in the automotive industry at https://www.theengineer.co.uk/guest-blog-industry-4-0-could-move-mass-customisation-into-the-automotive-mainstream/

The Industrial Internet Security Framework: A security framework built on cooperation

Global collaboration is essential to protect the industrial internet. “Attacks to industrial sites will not be a local affair in the industrial internet, but an international one,” says Dr. Jesus Molina, Security Consultant at Fujitsu, on the Industrial Internet Consortium blog. He was part of the team that worked on the recently published Industrial Internet Security Framework (IISF).

The framework required close cooperation from many contributors globally and it took a lot of patience and testing to get it right. According to Molina, each draft received hundreds of comments and they wanted it to be inclusive of many views, so it took years to get IISF completed. He believes the final document provides a comprehensive and balanced view on securing current and future industrial systems. He also says that the framework is a living document.

Read more about the new security framework at http://blog.iiconsortium.org/2016/09/the-industrial-internet-security-framework-a-security-framework-built-on-cooperation.html

Image credit: Maksim Kabakou / Shutterstock.com

Leading players in the IoT for the automotive industry

A key pillar of Internet of Things advancement is automotive development. Writing in the IoT Tech Expo Blog, Jon Kennard lists the key players that are pushing IoT discovery forward in the automotive industry.

In Kennard’s opinion, groups such as Tesla, Renault, Google, Jaguar Land Rover and Siemens, among others, are leading the way in terms of the connected vehicle ecosystem. “Siemens has been researching and developing autonomous vehicles for years, and their view of the movement is much more from a network and system perspective. Buses, trains – very little falls out of scope for this forward-thinking tech giant.”

Read more about companies leading the IoT for the automotive industry here http://www.iottechexpo.com/2016/09/connected-car/leading-players-iot-automotive-industry/