The Hive Think Tank: Translating IoT into Innovation at Every Level b…

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Hi my name is Prith Banerjee and I am very happy be here with all of you to share just how Schneider Electric is Translating IoT into Innovation at every level

I figured out on day one at Schneider Electric that everything we do is based on a core belief, that energy is the base of life.

And as you just saw in the introductory video, Schneider is inventing the technologies that transform the places where we live, work and play. Ensuring that Life Is On for everyone, everywhere and at every moment. And of course this wouldn’t be possible if not for the Internet of Things, making everyone and everything more connected.

And What is life without Energy?
Well, think about it. Life Is On today because energy is on. And life gets richer and more sustainable tomorrow, if energy gets safer; more reliable; and more efficient, connected and sustainable.

We know that the demand for energy will keep booming and growing under the pressure of three megatrends:

The first is Urbanisation:

Urbanisation is the Century’s biggest event
Think about it – we will build as many cities in the next 40 years as we have had since the beginning of humanity
The figures are staggering – over the next 30 years – we will urbanise 70 million people every year.
This is like building 7 new cities as big as Paris each year
So, if you think the current cities are congested, polluted and unbearable, we have a collective responsibility to make sure these new cities are truly livable

The second megatrend of this century is Digitization:

We know the first episode of the internet – it is about communications between people-to-people
We are now entering into the second episode of the Internet – it is going to be over the next five years
It is about connecting people-to-devices, people-to-machines and devices-to-devices
Over the next 5 years we will connect to the web 20X more devices than new people
So there will be lots more traffic, data, storage and energy consumption

The third megatrend that is pushing for Energy is Industrialization:
Industry is already >30% of the world energy consumption
This is going to increase by 50% in the next 35 years

So on one side there is this massive push for more energy from modernisation…

So we at Schneider, together with our customers and partners are trying to solve this problem.

In the next 40 years energy consumption will go up by 1.5X – up by 50%
At the same time we have to divide by 2 the emissions if we want to keep the global temperature increase under 2 degrees and manage the pollution of cities at a bearable level
So we have to decrease our carbon intensity and improve our efficiency by a factor of 3

We at Schneider are Energy optimists. We think addressing this paradox is possible by using the technologies of today.
But it requires us to leverage the innovation we already have and think, design and build in a very different manner.

You have to keep in mind… that the world of energy has been very stable since it was designed more than a century ago.
In the past 10 years, digitization and decentralization has permitted us to rethink the world we live in to make it more electric, more digitized, more decarbonized and more decentralized. This brings about changes that are exponential and significant.

And I see a huge potential for us to collaborate in helping our world become even
more electric - 2x faster growth of electricity compared to energy demand by 2040
more digitized – 20x more connected devices than people by 2020
more decarbonized – 82% of the economic potential of energy efficiency in buildings and more than half in industry remains untapped, and
more decentralized – 70% of new capacity additions will be in renewables by 2040

So, how do we do this?

We believe that gains and advances in efficiencies will be driven by the convergence of Operational Technology and Information Technology. And behind that converge is the acceleration of the Internet of Things, in particular in the Industrial world.

Did you know that The Human Internet only has 3.2 Billion people on it. About half of the world population.
But the Internet of Things is expected to have 50B devices and things connected by 2020! And that is a conservative estimate…

So our focus is simple, to build on our position as the global specialist in energy management and automation, leverage IoT and IT/OT convergence to develop innovative technology solutions for our customers.

After all , We are a global technology company
We generated approximately 27 Billion in revenue last year – which by the way is 3X where we were 10 years ago
we invest 5% of our revenue in R&D
And we have more than 160,000 people in more than 100 countries

We are very balanced in terms of exposure.
We do 50% of our business in all sort of buildings – from the less critical of them like our homes to the most mission-critical like data centers and hospitals.
And we balance it with heavy duty applications in the fields of Industry and Infrastructure which make up for the rest of our revenues.

This also gives us a very uniquely diverse view into the many applications of IoT and Industrial IoT on a global scale.

By the way, the Internet of things is not new to us. We were the first mainstream automation supplier to promote the use of Ethernet on the plant floor right down to the sensor, and the use of Web IP technologies as a way to converge IT systems with OT systems.

We have many patents in this area.

We launched the original concept in 1997 under the “Transparent Factory” banner and the innovative nature of the concept was recognized with the Smithsonian award win in 1999 – we were nominated by SAP for this award.

And we have continued to innovate in the area of leading edge technologies with intelligent platforms like:

Modicon – a completely Ethernet based PLC
Altivar Process -- a fully integrated, adaptable, programmable motor drive
Eurotherm – an online, cloud-based temperature control system for process

So clearly Innovation is in our DNA.
We have been driving innovation for 180 years now.

But we innovate for a purpose, we innovate for Value. This is the story of Schneider.
Let me just give you a glimpse of our innovation over the past 50 years – all based on customer need for more and more value.

Our customers who are running mission-critical and dangerous applications want safety – safety of people and assets, no electrocution, no fire, no surges etc…

And we have developed a series of safe products that are world leaders and are world references – Multi9, Acti9, Compact, Masterpact, Prisma, Premset, MCset, Activa, Tesys…

Safety is our and our customers first focus.

Next, our customers demanedd that their operations, systems and processes are not interrupted. So they asked for reliability. This gave birth to blockbuster products such as Symmetra, Infrastuxure, Galaxy.

These systems and products are the epitome of reliability.

Then, because of Rising Energy Costs and Productivity pressures, our customers asked us for Efficiency.

And we developed for every segment a platform of products, software and solutions that deliver both energy and process efficiency.
For a long time now we have delivered to our customers around the world complete solution packages for managing their assets – including machines, buildings and facilities, plant operations, process efficiency, and energy efficiency.

Then we were asked for more Sustainability. Every one wants to integrate renewables into their energy mix. So we developed a complete offer of converters, energy storage systems and more, so that you can connect systems to renewable sources of energy.

And of course our environment and climate change is top of mind for us. All our products and solutions are designed with Sustainability in mind.

As I mentioned earlier, we were the first to do Open Protocol Ethernet on factory floors – way ahead of it’s time. Some even call this the grandfather of IoT. So we began almost 20 years ago to redefine Connectivity.

And now the acceleration of IoT and Connectivity redefines everything…

Connectivity catalyzes the convergence of energy, automation and software.

And six years ago we brought you a single architecture, called EcoStruxure, bringing these worlds of energy, automation and software together.
And we specialized the architecture further for our customers in key segments:
MachineStruxure for machines
PlantStruxure for production
SmartStruxure for buildings
InfraStruxure for Data Centers
PowerStruxure for power distribution

For those who may not know, EcoStruxure was designed from the ground up to enable our customers to better control, supervise, and manage total enterprise performance. In fact, Our customers have consistently report up to 30% savings on Capex and Opex.

But in the meantime, technology and the market kept evolving. And we have pushed ourselves to keep evolving this architecture.

The first transformation driver is mobility. We all have a smart device. It makes communication pervasive. It makes the user-experience easy and rich. It allows for user-recognition – the buildings, machines etc recognizes me because of my mobile device.

The second transformation is the cloud. The aggregation of data. The affordable and secure cloud. The sharing of data – the utility, the facility manager, the contractor, the end-user, and the manufacturer, now, can all work at the same time using the same database to improve the efficiency of the building. This was not possible before. And it also means that large companies can have the specialists, regardless of their location, manage their facilities and assets anywhere, remotely.

The third transformation is Analytics. And this optimizes performance at every level of a company.

So combining automation, energy, and software with advancement in mobility, the cloud, and analytics has enabled us to Redefine EcoStruxure
We have expanded the value through innovation at every level of the Ecostruxure architecture and portfolio, and within the underlying platform , EcoStruxure.io
We are very proud to see EcoStruxure redefined, with new value throughout the entire Stack.
We call this SCHNEIDER Innovation at Every Level.

Lets start by taking a look at EcoStruxure, from the connected products through Edge control. Apps, analytics and services delivered in the cloud and/or on premise with embedded end to end cybersecurity throughout. All of this we deliver in a tailored way applying our espertise to all our end market customers in homes, buildings, data centers, industry and the grid.

Our first conviction is innovating at our core to produce Connected Products. Because the Internet of Things starts with THINGS It is these intelligent products that make the grid smart, manufacturing smart, and buildings smart.

Lets take the example of Smart Manufacturing
Smart Manufacturing has to start with Connected Products.

In this example, we see how intelligent variable speed drives find their way into machines extending their availability, agility and ability to integrate. This in turn drives asset performance higher. This is what our Altivar Process does. A drive that can monitor the performance of the connected asset, i.e., pump or fan or conveyor, and provide detailed information on the health of the asset (energy consumption, position on pump curve, etc.)
Just One of the many Connected Products we offer for Smart Manufacturing.

You Have to keep in mind the significance of this foundational layer. In the past the number of connected products, sharing data about their current state and external environment was highly limited, now thanks to IoT acceleration everything is becoming connected, smart, and adding value up stream where data is turned into contextual information and insights.

We at Schneider know that our customers drive mission critical applications. They need the applications to run even if the networks are broken or even if the software/analytics on the other side of the planet are not working. Whether it is at home or a hospital or production line – we do not want an outage.

So we want controls that can work locally with autonomy, while at the same time enable operators to be able to take over control of the operations if there is a problem. Everything cannot be remote. Local control is a must. And firewall protection is also a critical requirement of edge control.

We bring to our customers connected control platforms that enable simple design, commissioning, and monitoring. So our customers have less complexity to manage at this level.

While our platform connects products, systems, control, and information both on-premise and in the cloud. Now certainly the adoption of cloud, both public and private is where we’ve put significant development efforts and focus in the past few years.

EcoStruxure Cloud is our open cloud environment that provides big data aggregation, data sharing, and enables new apps, analytics and services to be delivered in the cloud.

Probably the biggest change for us in the past 5 years is the development of a full portfolio of software, apps, and analytics to permit, enable and catalyze optimization. This layer is hardware agnostic. We know that our customers come with a variety of hardware and systems. Our Apps, Software and Analytics work with any hardware, any systems , any control. When things and control are connected on an open platform, new applications become possible.

Take 2 examples of applications that are powered by connectivity and access to data…

First is the example of Augmented Operator.
One of the toughest jobs in a plant is troubleshooting and fixing machine problems. Consider the fact that there’s equipment anywhere from 1 to 5 to 20 years old. Not every product has an HMI available, many products have no documentation on site and some are even challenging to recognize and identify.

By tagging machines with sensors throughout the plant and loading the Augment Reality mobile application with inventory, Geo-location and shape recognition data a plant operator can now leave the control room and avoid running back and forth to gain insights. By simply holding up a tablet in front of the plant environment, the machine, even the outside of the building!, a real-time data is overlaid telling the operator what needs attention or service.

Once the machine with an issue is identified the operator can actually remove the cover of operating and control equipment panels without touching the cabinet door, digitally looking inside the machine avoids downtime. At the same time the operator can improve the service speed and quality by accessing digital specs and user manual documents with the touch of a button on the tablet. That’s what we call putting digitization to work for mobile operators.

Second is the example of mobile Smart Glance which enables you to view your plant data and analytics on your mobile smartphone and tablet in real time from the cloud

Take the real customer example of Carson City Nevada, who partnered with Schneider Electric in their effort to build a better management system for the city’s water, wastewater, transportation, landfill, vehicle fleet, and renewable power systems. Where a primary objective was the ability for engineers and operators to use tablets and smart phones to control city services - making them more mobile, increasing their situational awareness, and making them more efficient.

Lets also take look at a very real world practical application of IoT enabling predictive analytics and modeling…

DUKE Energy, with 60 plants and 7.2 Million customers, is a customer of our Enterprise Asset Performance Management software,
With PRISM predictive analytics DUKE was able to see (CLICK)that Exhaust temperatures on Combustion Turbine were reading 50 degrees Fahrenheit higher than historical levels.
●The following weekend the station conducted boroscope exam of burners, but no issues could be seen
●So trusting the software they returned the unit for service still suspecting burner problems
(CLICK)
●Eventually damage was found and addressed during scheduled downtime. Combustors, transition tubes, stationary blades, and rotating blades all needed service
●The Estimated Avoided Costs for DUKE energy was a whopping $466,888 thanks to predictive modeling and scheduled maintenance
Through Prism predictive analytics Duke Energy found several more temperature and vibration issues saving more than 5 Million with proactive service planning

In many ways Services is the most transformative area of innovation. Delivering services built on the connectivity of products, control systems, and software enables new value to end users. Services can take on many forms from remote monitoring, to engineering in the cloud, to Asset Management, and Energy Performance Management services - truthfully the potential list goes on and on.

Let me share a few specific examples that bring digital and cloud based services to life…

Leveraging Remote Facility Insights as an IoT Cloud-based Service is a great solution

We can connect a buildings customer assets, like electrical, hvac, water, and gas equipment to the cloud platform where we can store and analyze the data.
CLICK
Our customers , Our EcoExpert Partners , and our own Remote Monitoring Centers can all access real time data about things like
CLICK
energy consumption, critical equipment health and conditions, and detect any abnormal behavior trends.

This cloud based capability feeds our Facility Insights application, which not only providing remote monitoring of applications like critical power but also the ability to deploy proactive maintenance service in the facility based on the software analytics.

CLICK
When Service is “ON THE GO” lets say, provided by us or our partners we can also enable what we call our Mobile Facility Hero application to generate reports , log field data, access planning and scheduling, share and notfiy others and access remote alarming in the building.

This type of service and application is only possibly thanks to the acceleration and proliferation of connectivity in the Internet of Things

Now that I’ve shared EcoStruxure, lets take a closer look at EcoStruxure.io, the enabling platform of platforms underneath.

EcoStrxure.io is our platform comprised of 3 core platforms…
Device Intelligence Platform – Providing unique sensor and edge intelligence capabilities
Smart Operations Platform – Enabling powerful and efficient industrial operations for smart decision making
Digital Services Platform – Enabling better user experience through SaaS and Managed Service models.

Combined, these platforms enable a common framework of value that can be extracted in this converged IT/OT environment:
From CONNECT where we enable device lifecycle management and connectivity at scale
To COLLECT where we capture data from the smallest sensor to the most powerful field gateways and on premise software
To ANALYZE where we turn raw data into information in context to enable better decision making and recommendations
To ClOSE where we enable the applications and services that close the loop to delver greater business value from the system

The platform has been built in partnership with the best-in-class technology providers in their respective industries and is 100% aligned with our vision to build in an open interoperable way

We have partners in areas that range from the core connectivity, to data collection and data processing for devices, systems and cloud, and even in areas like enterprise IT integration

Inside of each platform there is a core set of technology capabilities that enable the systems, applications, and services we spoke about earlier.

Take for example the Digital Services Platform where we connect and manage device lifecycle management, extracting, collecting, and storing the data required to enable analytics and machine learning, and finally the ability to act –wether through human intervention, managed services or application services.

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But remember, the platform is just an enabler. The examples of IoT Solutions I showed you a bit earlier are where the value is extracted. And the fact that we’ve built EcoSTruxure.io as an open standard technology platform we are able to deploy IoT Solutions for probably the widest range of markets and application areas in the industry from Homes to, Buildings, Data centers, Industries, and the Grid.

Let me close this presentation by sharing a glimpse of what we see as the transformative impact IoT will have in the coming years as it continues to mature and evolve through further adoption and innovation.

We recently released our IoT 2020 Business Report , based on Schneider Electric’s survey more than 2,500 business decision-makers around the world about the future of IoT, how to realize immediate IoT value, and their observations of success

I would encourage you all to visit schneider-electric.com/iot and download the report.

You’ll find a lot of interesting findings, like for example 2/3 of organizations plan to implement IoT solutions via mobile applications in 2016

What’s really very interesting is our findings regarding the longer term impact of ioT which we have formulated into 5 predictions for the future:

1st is the Next wave of digital transformation where organizations will fully embrace a digital and mobile workforce
2nd is Insightful data that will enable a a transformation in customer service, product support, and brand loyalty
3rd is the emergence of Site to Cloud confidence where mission-critical applications will be built computing with
an open, interoperable, and hybrid computing approach and foster collaboration on cybersecurity standards
4th is Innovation that leapfrogs existing infrastructure, where IoT enables enterprises,
cities, and emerging economies to work with systems of the past in ways that don't preclude them from integrating systems of the future.
And finally our 5th prediction that IoT will contribute to a better planet - Solving societal and environmental issues.
IoT empowers countries and their economies to respond to the biggest challenges facing our planet like Global warming, Water scarcity nad Pollution

The Hive Think Tank: Translating IoT into Innovation at Every Level by Prith Banerjee, CTO of Schneider Electric

The Hive

The Hive Think Tank: Translating IoT into Innovation at Every Level by Prith Banerjee, CTO of Schneider Electric