© 2014 IBM Corporation Mfg in the Age of IoT and Cloud: Opportunity and Challenge Dave Noller IBM Industrial Sector Strategy & Integration [email protected]

Mfg in the Age of IoT and Cloud:Opportunity and Challenge

Dave NollerIBM Industrial Sector Strategy & Integration

[email protected]

Agenda

2. IBM Approach

3. Role of Industry Standards

1. Background

Mfg in the Age of IoT and Cloud: Opportunity and Challenge2

Internet Of Things Forecast2020 View

• 212 billion installed things

• 30 billion autonomously connected

things

• Public Sector, Distribution & Services,

Manufacturing & Resources, and

Consumers lead segment growth rates

• Approximately 3 million petabytes of embedded systems data (excludes

streaming, surveillance-type data

• $8.9 trillion of business value

3 Mfg in the Age of IoT and Cloud: Opportunity and Challenge

Data will increasingly be a differentiator of business success, but not all data matters, so we must be selective!

4

You are here

44 zettabytes

unstructured data

2010 2020

structured data

90%

By 2017

Of data created over the last 10 years was never captured or analyzed

The collective computing and storage capacity of smartphones will surpass all worldwide servers

60%

2X

Of valuable sensory data loses value in milliseconds

Rate of data creation compared to the expansion of bandwidth over the past decade

The explosion of data created by changing tech represents both a challenge & opportunity

Mfg in the Age of IoT and Cloud: Opportunity and Challenge

Dynamic business and engineering processes enabling last-minute changes to production

Personalized, local production and mass customization

Creating value opportunities through services

The introduction of IoT into the manufacturing environment is ushering in a fourth Industrial Revolution

Industry 4.0 Characteristics:


New System of Record for Production, Supply Chain, Material

Management and Engineering enable thru:

o New Sensor Data Collection

o Machine-to-Machine (M2M) Communication

o RFID Tracking

o Cyber-Physical Production Systems

o Consolidated data from Assets, Processes, Production

The IoT is enabling a new System of Record for Manufacturers to help them realize smarter factories


Source: Manufacturing 2.0: Service and Collaboration-Based Architectures for Manufacturing Right First Time—on demand - AMR Research, 2007

“Mfg 2.0” defined the need for “MES by Composition” (System of Insights from Systems of Record) and paved the way for Industry 4.0

7Mfg in the Age of IoT and Cloud: Opportunity and Challenge

Source: Recommendations for implementing the strategic initiative INDUSTRIE 4.0Final report of the Industrie 4.0 Working Group, April, 2013

“Industry 4.0” describes a Reference Architecture for connecting IoT to IoS


Industry 4.0 (Integration + IoT + Cloud)

Feedback

Source: Prof. Dr. Dieter Wegener, VP ATS, Industry SectorFactory 2014, Tokyo / Japan, March 05th, 2014

Intranet of Things

Internet of Things

Industry4.0

1. Dynamic business and engineering processes enabling last-minute changes to production

2. Personalized, local production and mass customization

3. Creating value opportunities through services

Industry 4.0 Characteristics:


Agenda

2. IBM Approach


1. Background


Businesses have a choice to make

Open Source Only Proprietary Open “Plus”

‘Significant Assembly Required’

Vendor Lock-in Assured

Enterprise Innovation


IBM’s Approach: build better solutions with open technologies (aka “Open Plus”)

NOVA

HEAT

Bare metal

OS

Bare metal

OS

Compute node

VM Instance

OS

https://get.docker.io my_docker_container: type: DockerInc::Docker::Container docker_endpoint: { get_attr: [my_instance, first_address] } image: cirros

10101110111010101001101010010101

with


API economy

Cloud operating environment

Software defined environments

IBM participates in, and supports, Open Standards efforts – for example, IBM is working to accelerate OpenStack success

Gold Sponsors

Because an open interoperable Cloud is critical for flexible cloud deployment and customer success…

IBM has 19 core contributors IBM has 19 core contributors19

IBMers working on OpenStack – from formation of the Foundation to Code Quality & New Function

IBMers working on OpenStack – from formation of the Foundation to Code Quality & New Function+400

IBMers are active developers in OpenStack projects

IBMers are active developers in OpenStack projects

2

Mar2013

Jan2015859

Contributors8,500 Members

3148Contributors18152 Members

Exponential growth

OpenStack Participant Growth

IBM is #2 in contributions to OpenStack integrated projects

+100

Platinum Sponsors


Control and secure the data streaming from your instrumented devices

The first step is IoT applied to manufacturing devicesDriving innovation of tomorrow from insights today

Analyze data to extract insight, applying them where they matter most

Drive product and service innovation with foresight

1 2

Deliver operational improvement and efficiency from insight

3

Interconnected

Intelligent

Instrumented

Internet of Things

Innovation

Insight

Improvement

Operate, Analyze, Innovate, Transform


I operate and use a collection of things to provide a product or service.

I care about integrating a collection of things and making sure they work cohesively together to deliver customer satisfaction

I have to work with things built by others, understand how they fit together, and the data they generate

I make invent, design products and services.

I care about innovating things that matter and delivering seamless user experience

I can choose the things I build, the technologies I adopt and the depth of my analytics

IoT value creation will be led by Makers and Operators

Design products with customer relevant features quickly and effectively

Create services that generate new value, drive loyalty and increase market share.

Use analytics to improve product, service and customer interaction in real-time

Improve efficiency and streamline operation to reduce cost

Integrate diverse applications and business data across heterogeneous environments

Derive new value and insight from connections and system interactions

Innovate, prototype and develop faster with IBM Continuous Engineering

Compose IoT applications with IBM Bluemix and scale to production with IBM Cloud

Generate insights from data in motion with IBM Stream Computing and explore big data with IBM Big Data Platform

Transform into a predictive maintenance enterprise with IBM Asset Management and IBM Predictive Analytics solutions

Manage your complex business infrastructure in real-time with IBM Business Process Management

Convert operational and connectivity data into actionable insights with IBM Business Analytics


Industry-specific Solutions

Design & Engineer Operate Manage

Analyze and Optimize

IBM Internet of Things Foundation: what is it?

Products, Assets, Infrastructure

Protocols & Gateways

Se

cu

re

Connect, Collect and Store

Connect, Collect and Storeinformation from a range of things with range of volume,

variety and velocity

A new offering within IBM’s Bluemix PaaS offering that allows Internet-connected devices to be integrated directly into Bluemix solutions


IoT as a Composable Business

IoT Foundation

IoT-related Bluemix services

Secure Device Registration, Scalable Device Connectivity, Historian, Visual wiring

Rules, Push, Geo location, Analytics, Asset management, Predictive Maintenance…

Devices & Gateways

REST APIs

IoT end-to-end solutions

REST APIs

Connected appliance solutions, Smarter home solutions…

Realtime MQTT APIs


• Edge of Network devices enable Message Oriented Middleware

Gateways help with integration of SCADA/DCS & Device data

IBM

Inte

grati

on B

us (I

IB)

IBM

Mes

sage

Sigh

tTemperature

Flow

Pressure

Temperature

PLC

RTU

Sensor

RTU

PLC

Sensor

Pressure

Flow

Scheduling

SCADA

ERP System

Analytics

Maintenance

Reporting


{ humidity: 78, objectTemp: 24, temp: 18 } { closeValve : true }

Meeting the needs of On-boarding and Connecting Devices

TLS encrypted traffic Supports the industry-

standard MQTT protocol

Device Recipes Open Source Paho

MQTT client code

• Encrypted traffic• Low bandwidth• Varying Qualities of Service• Publish Subscribe• Always on connectivity

• Lightweight & low footprint client

• Device specific Samples

• Device specific Client Code

Device Registration

• Device Access Control


Multiple cloud models exist, but “Hybrid” seems to be best suited to Manufacturing

Hybrid Cloud

Private Cloud Shared off-premise cloud

Dedicated off-premise cloud

Firms will need to build across traditional cloud boundaries to maximize investment


API economy

Cloud operating environment

Software defined environments

21

Building on open from the ground up enables IBM to maximize client investment

Hybrid CloudPrivate Cloud Off-premises cloud

IaaS

PaaS

SaaSOAuth

Mfg in the Age of IoT and Cloud: Opportunity and Challenge

Bluemix: IBM’s Cloud platform

Bluemix service categories

Developer experience

• Rapidly deploy and scale applications in any language.

• Compose applications quickly with useful APIs and services and avoid tedious backend config.

• Realize fast time-to-value with simplicity, flexibility and clear documentation.

Enterprise capability

• Securely integrate with existing on-prem data and systems.

• Choose from flexible deployment models.

• Manage the full application lifecycle with DevOps.

• Develop and deploy on a platform built on a foundation of open technology.

Built on a foundation of open technology.

Build, run, scale, manage, integrate & secure applications in the cloud

• DevOps• Big Data• Mobile• Watson• Business Analytics

• Database• Web and application• Security • Internet of Things• Cloud Integration

• API management &Integration


Bluemix leverages CloudFoundry, Docker and OpenStack as key elementsContinuing our history of embracing and extending Open Source


Bluemix Dedicated

Services Integration Portability

Flexible Deployment Models

Bluemix Dedicated – Bluemix running in a SoftLayer environment dedicated to a single-tenant


Addressing many types of Use Cases• Extend existing applications

- Add user experience such as mobile, social

- Add new capabilities integrating other services/APIs

- Rapid experimentation for new capabilities

• API enable applications

- Scalable API layer on top of existing services

- Simplify how composite service capabilities are exposed via APIs

• New applications

- Systems of Engagement

- Different state management models

- 12-factor applications

Backend Systems andIntegration

API Creation & Management

New Channels &Opportunities


Smarter Manufacturing – IBM view


Equipment Operator

Remote Monitoring

Mobile Access

Production Engineer

Control Center

Maintenance

Data Services

AdvancedAnalytics

Optimization

Data Acquisition

ERP, EAM, SCM, PLM

Enterprise Systems

Direct & Indirect Procurement

MRO

Material Management

SRM

Logistics & Distribution Mgmt.

Inventory Management

BOM ManagementPerformance Analysis &

ReportingFinancial Control

SCM

Create Sequenced Production Schedule

Demand / Supply Planning & Scheduling

Labor Management

Quality & Traceability Management

Production Planning

Finished Goods Management

EAM

Printers

Devices Robots

PLCs /Controllers

Plant Floor Systems

Plant Floor Integration

Line Sequencing /Re-sequencing

Broadcast

Buffer Control(PBS, WBS)

WIP Tracking

Order Status / Management

Data Collection

Flow Control Reporting and AnalysisAsset Monitoring &

Maintenance

SCM

Final Finish

Error Proofing Material Management

Quality ManagementTrack & Trace

Part Pick / Kitting /Labeling

MES / ALC

Material Handling

BarcodeScanner

RF Antenna & Tags

Plant Floor IntegrationIntegration Bus – Manufacturing Pack/Gateways

IntegratedOperations

Information ModelMDM Data Warehouse

Business Rules Predictive AnalyticsModeling / Simulation Optimization & Decision Mgmt

GIS Services

Streaming Data Integration Bus AdaptersFile Transfer

Business Process Mgmt

Role Based VisualizationWorkflow

Alarms / Alerts Realtime Visualization

Reports

MES, CNC, PLC

Data Acquisition


Agenda

2. IBM Approach


1. Background


ISA 95 hierarchy

OAGIS

F O U N D A T I O N

Vertical and Horizontal integration standards (content exchange and information/analytics models) – too many options!

OPC DA/HDA

ISA-95 / B2MML

ISA-88 / BatchML

OPC UA

SPEC 2000/STEP

PLM Services

PLCS/AP 239

ISO 15926

En

gin

ee

ring

Ma

inte

na

nce

MIMOSA

Operations

Level 4BusinessLogistics

Level 3ManufacturingOperations

Level 2SCADA

Level 0/1Process Control

Inter-Company

SPEC 2000

PLCS/AP 239

ISO 15926


http://www.openoandm.org/

A lightweight publish/subscribe protocol with predictable bi-directional message delivery

Lossy or Constrained Network

Lossy or Constrained Network Monitoring &

Analytics Server

Commands or Data Visualisation

High volumes of data/eventsIT Systems

In the era of a Smarter Planet, open source and standards are essential

1999 Invented by Dr. Andy Stanford-Clark (IBM), Arlen Nipper (now Cirrus Link Solutions)

2011 - Eclipse PAHO MQTT open source project

2004 MQTT.org open community

2013 – MQTT Technical Committee formed

Cimetrics, Cisco, Eclipse, dc-Square, Eurotech, IBM, INETCO Landis & Gyr, LSI, Kaazing, M2Mi, Red Hat, Solace, Telit Comms, Software AG, TIBCO, WSO2

Evolution of an open technology

IT standards, e.g. MQTT - open connectivity for Mobile, M2M and IoT


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Do canonical object models for interoperability (e.g. ISA-95, OAGIS, OMG PLM services) really matter? After all this time, to what extent are they really being adopted? If not, why not? These standards do not seem to come up much in “real life” projects.

Assuming the answer is “yes”:

Consider new forms that are more web and programming tool friendly, e.g. JSON vs XML

Continue to work on rationalizing overlap so that choices are more clear

Today’s interoperability standards are “heavy”, consider developing lightweight versions aimed at IoT integration (e.g. MQTT)

How can industry standards efforts help?

F O U N D A T I O N


http://www.openoandm.org/

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Manufacturing Use Case (A Need Description)

IoT and Cloud Support through “migration”, not “Big Bang”: Adoption of IoT and Cloud needs to consider existing “brownfield” environments in a secure way.

Business Challenge • Manufacturers wanting to adopt new, innovative technologies such as IoT and Cloud (or the vision of Industry 4.0) need a way to migrate gradually with support of existing systems

• Manufacturers want flexible systems that can react to change and minimize vendor lock-in.

Business Benefit of addressing challenge; estimated quantification of benefit

• Evolving existing manufacturing systems today (through upgrades) is very costly and time consuming. New technologies can, potentially, lower the time and cost of bring up new systems or changing existing systems.

Open Cloud Opportunity

• Cloud based systems based on open standards and technology have the potential to address both of the business challenges mentioned above. For manufacturing, however, security concerns and the need for “brown field”, or “hybrid” systems must be addressed.

Technical Issues & Initiatives

• Interoperability standards are still not widely adopted, so “mapping” still has to occur somewhere and is difficult.

• Interoperability standards today are “heavy”, and do not lend themselves to easy usage for “agile” creation of applications (e.g. for mobile) in the “integration cloud”.

• MES tends to be trying to act as the vertical integration layer today, but is not well suited to “out of the box” integration needed to support “Industry 4.0” type initiatives. Would be easier if it could be treated as a set of capabilities easily integrated through APIs (services).

Standards Role • Take a hard look at what is inhibiting adoption today (for customers and vendors)• Try to simplify the picture vendors and customers who would like to adopt the

interoperability standards• Create new forms of standards that lend themselves to web programming models and

light weight, IoT messaging (as well as traditional)

Documents

© 2014 IBM Corporation Mfg in the Age of IoT and Cloud: Opportunity and Challenge Dave Noller IBM Industrial Sector Strategy & Integration [email protected]