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Why B2B should embrace IoE

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Why B2B should embrace IoE

  1. 1. Jerome Petit 2017 WHY B2B SHOULD EMBRACE IOE The purpose of this document is to explain how Internet of Everything (IoE) extends the values of IoT & IIoT. IoE brings Human at the heart of the IoT model. Such change is a real shift in the IoT paradigm and it opens a new vision for our ecosystem and global sustainability challenges.
  2. 2. 2017 1 WHY B2B SHOULD EMBRACE IOE; LET’S RECAP: ARPANET - 1969. • From a security threat to protect humans… The feared event hasn’t occurred but has opened an unpredicted age… • Scientific community adopts Web few years later to share their information. The Information Superhighway - 1992 • Al Gore – Bill Clinton (USA). => Business enabler. Transparent Ready – Schneider Electric – 1996 • The industry field bus – TCP/IP. Connected devices took-over world’s population - 2003. EcoStruxure – Schneider Electric – 2004 • The information framework for Innovation & Energy Efficiency. The United Nations acted in 2011 that: • Internet access is a Fundamental Human Right. The Internet of Things & IIoT • The internet of the Objects, Big Data & Cloud Computing. • Descriptive and predictive analytics. • The security as a pillar. The Internet of Everything (CISCO™) • Connect: People, Data, Process & Things. o Human at the heart of the model. o Prescriptive analytics for better decision making. o Secured & anonymized data. From a security threat to a sustainable opportunity.
  3. 3. 2017 2 IOE MODEL & CHALLENGES The Internet of Everything (IoE) is the extension of IoT/IIoT model including human back at the heart of the model. This consideration is a real shift in the IoT paradigm and it enables new opportunities with a new mindset. With IoE, the object’s container becomes EARTH. Considering human within overall object model will enable analytics to provide accurate information to predict population usages & habits. This will provide valuable information to consider civilization impact on Earth. This digitization enables Things (Objects’ properties) understanding: • Objects introspection: o Knowing objects attributes enable context understanding. o Human’s habits should help to forecast usages. o Usage forecast enable decision making for efficient production, delivery & sustainability. Organization & Governments, from process and people data’s, will nimbly react in real time to deliver, on a sustainable & efficient manner, population’s needs. This is the big bang! So far; 99% of devices are unconnected. With this collection of things, processes inform on customer usage, those data enable to forecast habits. This forecasting will drive decision making and business but also earth care & overall civilization longevity. Embracing IoE brings circle values. Which means for: • Customer: be recognized. • Supply: be agile. • Finance: be predictive. • Offer: innovate. • Authority: real time regulation for sustainability. By 2020, forecast consensus is 50 billion of connected things and 85% of population with wireless connection coverage. AS A NUTSHELL: CONNECT PEOPLE, DATA, PROCESS & THINGS MEANS: EARTH CONTAINS HUMANS & DEVICES; IOE ENABLE TO PROCESS THIS COLLECTION OF THINGS SO FAR 99% OF CONNECTED MARKET MUST BE INVENTED. BY DIGITIZING WE OPEN THE DOOR OF THIS MARKET BY DOING SO, PEOPLE & PROCESSS ADDRESS EFFECTIVELY EARTH SUSTAINABILITY ECO RESPONSIBILITY START FROM PEOPLE TILL GOUVERNANCE.
  4. 4. 2017 3 INTERNET THE PLACE FOR AWARENESS Internet is the “place” where people go to find and share information. From a B2B perspective those data are an opportunity to enable business by learning from customers’ habits. Organizations tend to IIoT/I4.0 to address their productivity challenges. IoE enables to consider consumers’ needs for optimizing production needs & supply chain. From business point of view, the IoE supports more relevant offers by using real-time data gathered from customers. From a production point of view, Machine to Machine enhance the efficiency of production assets & logistics while reducing the energy footprint. People have adopted internet in their daily life. The graph here after presents internet consumers’ habits to make purchase research & decision. The internet usage in purchasing should grow, assuming six billion humans are going to be connected by 2020. Source: Google Consumer Barometer 2014/2015 Organizations adapt the way they advertise and sell products to customers. Technology is changing people individual behaviors, such as how they learn about products, how they compare competitors and even their purchasing patterns. For example, (a) ŠKODA Switzerland optimized the targeting and the relevance of its campaign, with the objective to: • Create audience segments to optimize online ad targeting • Use DoubleClick Media ads to enhance the consumer experience with dynamic & accurate ads. • Effectively manage data to streamline targeted audience. From ŠKODA web site and car customization tool, they use Google DoubleClick suite solutions data analysis to study, define and improve Campaign KPIs They have increased by 53% the visit conversion rate from an old-style campaign & divided the cost per nine. Web audience data helps sales to accurately target the customer needs when he visits the shop. From real time campaign KPI they could adjust sales messages during the six-month campaign.
  5. 5. 2017 4 MAXIMIZING IOE VALUES Organizations joining the IoE economy will maximize implementation by considering: Investing in a high-quality technology infrastructure and tools - A secure and reliable network infrastructure is required to support the IoE. With amount of data to be analyzed, network infrastructure and on premise edge control or fog computing are key to optimize investments. Adopting and following inclusive practices - An inclusive environment is one in which the employees of that environment feel as though they are part of the change. It is an open atmosphere where individuals feel that they are included. Developing effective information-management practices - Management must be able to embrace and promote change. Information sharing and management must be supported, and data extracting techniques must be developed so that the right information is provided at the right time, to the right people and things. In term of asset & collaboration, this means: Improved collaboration within organizations is an area that will benefit most from the IoE. Collaboration will facilitate innovative new offerings. Collaboration will make organizations more aware of customer needs and opportunities. Customers will be able to solve problems and get advice when and where it is most convenient for them. Organizations will have new sources of information. Decision making is a result of collection of data processed from a variety of information’s computation. Processes Facilitate Interactions: Machine-to-Machine (M2M) connections occur when data is transferred from one machine or “thing” to another over a network. Machine-to-Person (M2P) connections occur when information is transferred between a machine and a person. These M2P connections facilitate the movement, manipulation, and reporting of data from machines to help people make informed judgments. People-to-People (P2P) connections occur when information is transferred from one person to another. Increasingly, P2P connections happen through video, mobile devices, and social networks. These P2P connections are often called Collaboration. Organizations can achieve a significant competitive advantage by adapting their business processes using IoE technologies.
  6. 6. 2017 5 TIMELY AND RELEVANT INFORMATION The billions of M2M, M2P, and P2P connections make possible the “everything” in the IoE. The process element leverages the connections between data, things, and people to deliver the right information, to the right thing or person, at the right time. It is these billions of connections that add value. The four elements of the IoE are People, Process, Data, and Things. People Connected people make behavioral transformations based on their access to information. Simultaneously, their changed behavior affects the information that is generated. This is known as a feedback loop. Organizations use data generated by connected people to refine and target their marketing strategies. Process Processes occur between people, things, and data. Today, the IoE brings them all together by combining M2M, M2P, and P2P connections. Process could be categorized as follow: Descriptive - Uses historical data to create reports designed to facilitate understanding Predictive - Uses data mining and modeling techniques to determine what could happen next Prescriptive - Uses simulation, business rules, and machine learning to recommend a course of action and what the outcome of that action might be. Data Big Data refers to the vast amount of data generated every hour by billions of connected devices. Big Data requires new products and techniques to manage, store, and analyze it. Part of the solution to the problem of Big Data is virtualization and Cloud computing. Big Data refers to the way in which organizations collect and analyze vast stores of data for insights that can help identify trends, predict behavior, and empower decision makers. Things For the IoE to function, all the devices that are part of the intended IoE solution must be connected so that they can communicate. There are two ways in which devices can be connected; either wired or wirelessly. Devices that are not traditionally connected to the network require connected sensors, RFIDs, and controllers. The IoE is a transformation and differentiation way for an organization bringing high added values for his customers.
  7. 7. 2017 6 IOE AS A BUSINESS ENABLER IoE / IoT investment from organization secure their sustainability. From an organization stand point data analytics will serve several aspects: • Innovation Data analytics enable better understanding of customer usage & choice criteria. Product development will rely on more accurate requirements that will bring higher values to the end customer. Information is accepted by all project stakeholders and become a Fact as it’s straight from customer. • Employee productivity As a shortcut, it brings more productivity and scalability. The P2P has plenty of added values, I would like to underline few there: o Marketing & R&D will conduct offer creation projects with more accurate business need understanding. o Production and logistic organization will better understand asset usage based on M2M processes & analytics, no more bottlenecks in production & supply chain o Customer care will better interact by knowing the person they are talking with. o Financial investment is agile with an “accurate & on time” forecast. • Supply & Asset Asset & Supply, in industry, are great energy consumers. Forecasting customer usage will help to adapt all utilities to produce on time for the exact need. This is a real driver for earth care & energy efficiency. • Customer experience Customer knowledge and habits awareness helps to better serve needs and this enable company to provide products with higher value. IoE reinforce customer relationship. The IoE is revolutionary in the field of customer relations. The connection of the objects can allow actors, upstream in the value chain or from other sectors, to capture the customer relationship. The IoE will indeed allow a substantial increase in the frequency, intensity and above all the relevance of the relationship with customers and consumers. Considering human in this model brings higher added value. As an example, SomfyTM YouTube Campaign Boosts 285% of his targeted audience (b). Goals • Develop awareness of home motorized swing shutters • Position Somfy as the referent of the category The approach • Broadcast publicities on YouTube & Measuring the incremental impact of the campaign. • Create Somfy lab community to get direct feedbacks on product & customers’ needs/expectations. The results • + 285% advertising memorization & + 612.4% purchase consideration among 45-54-year-old • + 47.2% of requests on the Somfy brand and + 29.8% on products My Somfy Lab community allows recurrent feedback from offer evolutions over time.
  8. 8. 2017 7 ORGANIZATIONS & IIOT’S ADOPTION The things are going to interfere in our daily life, at home, in the city, at work and everywhere. The human life is going to move from “un-virtual” to digitized. The Human Experience and things are there to bring values to life experience. By 2020, BCG predicts, 50% of IoT spending will be driven by discrete manufacturing, transportation, logistics, and utilities. BCG predicts that IoT will have the most transformative effect on industries that aren’t technology- based today. The most critical success factor for these use cases depend on how much secure, scalable and reliable the end-to-end the integration solution is. For BCG, 40% of today’s IoT customers prefer to use traditional and well- established software companies for their IoT solutions. This represents a challenge for major industrial companies whose future depends on their ability to transition into IoT providers. EcoStruxure from Schneider Electric is an end-to-end IoT industrial framework designed to digitize customers’ process asset. EcoStruxure is the solution for organizations who are using real-time integration to connect legacy ERP, on premise systems to cloud apps and platforms, enable faster operational performance thus with seamless integration. EcoStruxure provides an open information framework which provides seamless integration with current organization information system while it opens connection to the IoT/IIoT services such as analytics & cloud computing. EcoStruxure embed energy consumption analytics to provide high level KPI presenting overall asset production efficiency. New Zealand’s Dairy plant for infant formula production - Yashili plant at Pokeno – uses EcoStruxure process control technology to optimize the manufacturing of six different products with an annual capacity of around 52,000 tones. Technology supplied includes the components for harmonics mitigation, medium-voltage switchgear, the MCC and its switchgear, distribution boards, Wonderware SCADA system, ePACs, HMIs and different-sized Smart VSDs for motor control. The manufacturing process involves reconstituting powder back into milk, mixing it with ingredients such as whey, lactose, oils, vitamins and minerals to make the infant formula products – and then re-drying these in the plant’s 8.5 tones-an-hour dryer. To cope with the additional level of complexity, the plant uses eight of EcoStruxure Modicon M580 Controllers. Powerful and native Ethernet Controllers allow the plant to switch between different products easily and quickly. The recipes for the various infant formulas are downloaded directly from an ERP system (Microsoft’s Dynamics NAV). Kerry Morrison, the plant’s Services Manager says: “Having an ERP communicating directly with our controllers helps to minimize any possibility of the human error factor when the different ingredients are mixed.”
  9. 9. 2017 8 DIGITIZATION MEANS STRUCTURED DATA The digitization is meaningful only if the gathered information can be processed & analyzed. This means valuable & structured data composition to serve the understanding of the organization’s focus. What does IoE-ready mean? IoE-ready is characterized by three critical attributes: Hyper-Awareness - Data from a broad range of sources can be captured in real time… This was the last decade expectation from project End User Requirement Specification (URS). Ability to Predict - New types of data analysis tools allow an organization to forecast future trends and behaviors. This is a requirement from new & innovative URS around production asset & devices. Agility (Prescriptive) - Increasingly accurate predictions allow organizations to be more responsive and flexible to emerging marketplace trends and threats. This is where having consumers at the heart of the model makes the difference because the organization reacts in real time to the customer feedbacks. Combining these three attributes allows organizations to better create, communicate, and deliver their offerings. From B2B perspective, standards leverage this approach. The ISA S95 enable better delivery and adaptation to supply chain, where ISA S88 is helping on asset description. The Naming convention such as ISA 5.1 provides information on the location and the function of controllers’ devices & smart sensors. As described previously EcoStruxure for Plant provides a consistent information model that enables efficient process management by operators or by machines at all stages of asset life cycle. Each device or process component presents structured & consistent data related to product quality, traceability, asset efficiency measured over energy consumption. Any deviation in the energy consumption indicates a deviation in the product quality or the asset efficiency. Let’s take example of large farms. A fundamental underlying framework & information model needs to be in place so that all architecture layers work together ensuring: Empowered operators– the use of mobile devices, cloud connectivity and data analytics providing operators real time information for better decision making where needed or done fully automatic. Optimized assets– such as smart sensors continuing the flow of information and allowing for data to be easily gathered from the field Smart control– enabling tight integration between operational and informational technology ensuring better decision making for the wider enterprise Edge control, Edge computing. Cybersecurity – more connectivity demands for more care with a proper OT Cybersecurity solution in addition to the usually available IT security One such farm, the Blackhills farm situated in Napier, New Zealand, has managed a 50% reduction in cost in just over a year as a result of lower energy and water consumption. Per Craig Blackburn, owner of Blackhills Farm, “Every day I adjust my pivots and pumps for a variety of reasons – shifts in the wind, rain levels, crop requirements or local regulations. Now I can monitor and control my irrigation system easily from my mobile phone, saving me hours of time not spent driving around the farm. With information at my fingertips, my farm is more productive, water and energy costs are lower and crop yields higher. I’d struggle now to live without it.” There is a common thread across all the EcoStruxure platform's technology, it turns data into motion for action.
  10. 10. 2017 9 M2M DRIVES ENERGY EFFICIENCY From M2M perspectives, object model and machine attributes should drive asset & energy efficiency while it captures operation usages to drives change management. In automation control systems, M2P regular interactions are mostly done with Operation & maintenances teams With EcoStruxure, M2M & M2P, natively address energy efficiency with objects attributes to manage energy as any other raw material part of product’s production. Some valuable pilots show that bringing operation back at the earth of asset usage brings valuable information on its efficiency. For example, on a glass furnace, descriptive analytics shows that some burning regulation’s parameters were not changed by operators per the selected one. Operators found generics parameters that were matching with all produced glass recipes. The draw back was an extensive energy consumption for most of them. From EcoStruxure M2M object models & attributes it has been easy to sort out such “mismatch” and lead change management to drive the best asset efficiency. Adding energy data to ensure efficient operation of the control system is not about slowing production. Energy measurement provides insight on how efficiently the plant systems are operating Doing so allows more production by avoiding downtime and lowers cost through reduction of inefficient operational periods. To ensure there is no loss of production, “efficient control” is added as a child control loop to the existing effective control. The efficient control works by monitoring the effort which is being applied to the process for a given task and comparing this to previous expectations. The output of the controller is focused on the selection of more efficient paths or engaging the operator to resolve process inefficiencies as they occur. Energy analysis at the M2M system level removes the load on operators of monitoring energy values directly and it provides to analytics data to constantly monitored process and production efficiency. EcoStruxure for Plant provides consistent object model materialized by process and devices objects libraries with consistent information models, at edge control, to present process behavior to upper levels in terms of energy consumption and efficiency but also sequence management and related alarms and interlocks data to report overall asset production efficiency.
  11. 11. 2017 10 IOE SERVES SUSTAINABILITY IoE serve human life & sustainability on many aspects. From the Authority perspective, it supports population wellbeing while reducing city & building carbon footprint. In 2011, the city council in Barcelona launched the “Barcelona as a People City” project. This project uses technical innovations to foster economic growth and the welfare of its citizens. Around 40% of traffic downtown is caused by car looking for a car park. Barcelona has made extensive use of sensors to help monitor and manage traffic. City planners recently announced their plan to remodel the flow, which, they say, will be reduced by 21%. The city is doing more than using smart-city technology to reduce traffic. It has installed smart parking technology as well as smart streetlights, and sensors for monitoring air quality and noise. Barcelona has also been a trailblazer regarding how it has addressed drought. It has developed a smart city sensors system for irrigation. Sensors in the ground analyze rain alongside the predicted level of rain forecasted to occur and will modify the city’s sprinklers accordingly to help conserve water. “Barcelona's strength is in its sustainable energy, smart grid pilot projects, smart meters, and its comprehensive plan for reducing carbon emissions,” Barcelona Consul says. IoE is a source of productivity and operational efficiency gains for businesses. In the industrial world, the IoE allows the emergence a universe of systems. Cyber-physical connected objects make them interact without human intervention. One Objective, for example, is the production optimization. With the help of a new generation of software and controllers it opens new ways of optimization. The production time of a product might decrease by 40% where energy consumption is reduced by 30%. In logistics, the IoE is an instrument to optimize storage and transport too. Amazon, whose business depends on an efficient supply chain uses more than 15,000 intelligent things to make the picking faster and more efficient. Amazon estimates thus savings from 20% to 40% for a value of $ 500 million to $ 900 million. In logistics, IoE creates new fleet management solutions. The Masternaut, for example, allows its customers to have a real-time visibility of their Fleet (position, productivity, vehicle use, geo-location, compartment temperature) and of the goods transported. These solutions help Masternaut customers to Optimize their costs and reduce the fuel bill by 25%. GoodGuide Apps From consumers’ perspective IoE is a driver for Eco responsible attitude. Whether it's for his health, for the planet, or for the animal cause there's always a good reason to pay more attention to what you buy. Eco responsible applications provides score from the product barcode criteria such as health, environment, social impact and budget. There are other apps proposing seasonal fruits & vegetable, fish…. The data as such represent little value, but by Connecting People, data, process & things it helps to: • Improve efficiency, sustainability and reduce costs • Raise the level of service & develop new services • Strengthen customer relations The evolution of the industry towards services has already begun. With IoE, the phenomenon is accelerating in a radical way.
  12. 12. 2017 11 THE CIRCLE STORY In Newcastle; the Martyn family loves Minou; The cat who likes milk. Every morning, Nina, the family daughter, fills Minou milk’s cup with love. Nina gets the milk from his connected fridge. Smart Fridge provides family’s fresh food stock & next shopping list from household Things. Newcastle consumption is processed, securely & anonymously, by analytics. From Newcastle’s shopping lists, cloud analytics ramp up supply chain/forecast. Authority & consumer’s association encourage short circuits for distribution. In the farm, Marguerite is one of the cow that delivers milk of the local dairy plant. Based on consumer’s orders, processed data delivers accurate forecast for Newcastle’s citizen’s consumption. The dairy plant adapts fresh milk production & delivery based on M2M processes data. From Newcastle consumption forecast, manufacturers & retailers adapts their order to the short-term needs. From Marguerite & the dairy plant this means: Operation: Newcastle milk production has been launched. Fresh milk produced by the farm is split among the needs of fresh milk, cheese and yogurts. While extra production is enriched & dried for exportation. Control: On premise control enables fast & efficient process management that allow flexible operation management while it minimizes energy consumption. Delivery: Execution planning adapt in real time delivery destination with the right efficiency scenario to insure lowest production foot print based on regulation and laws. Nina, after school, is picked up by his parents. They go to the supermarket with their autonomous electrical car. On the supermarket carpark, the battery is charged from supermarket solar panels. On his tablet, the fridge underline milk needs for Minou & herself. The application recommends to select the local produced milk which have the best environmental score. Retails marketing campaigns send survey to Nina to get his feedbacks on product ordered. Retails Information gathered, from customer’s feedback, are anonymously analyzed and shared with contractors and authority. Data proceed from people and things helps shops to stock accurate quantity of products based on sales forecast which avoids wastes. Population habits help the authorities to legislate & limit the impact of the population on the environment and to increase the citizen well-being. THE IOE LEVERAGE EFFICIENCY FOR PRODUCTION AND DISTRIBUTION ACTORS TO SERVE OVERALL SUSTAINABILITY CHALLENGES FOR THE PLEASURE OF MINOU, THE CAT WHO LIKES THE MILK, AND NINA, THE GIRL WHO LIKES THE CAT…
  13. 13. 2017 12 References : https://www.consumerbarometer.com/en/ (a):https://www.thinkwithgoogle.com/intl/fr-fr/case-study/grace-au-programmatique-skoda-optimise-le-ciblage- et-la-pertinence-de-ses-creations/ (b):https://www.thinkwithgoogle.com/intl/fr-fr/case-study/la-campagne-youtube-somfy-booste-de-285-la- memorisation-sur-cible/ Internet Of Things Market To Reach $267B By 2020 https://www.forbes.com/sites/louiscolumbus/2017/01/29/internet-of-things-market-to-reach-267b-by-2020/ https://www.forbes.com/sites/louiscolumbus/2016/11/27/roundup-of-internet-of-things-forecasts-and-market-estimates- 2016/#4856ba4292d5 https://www.forbes.com/sites/louiscolumbus/2015/12/27/roundup-of-internet-of-things-forecasts-and-market-estimates- 2015/#7f23a1184b93 https://start.lesechos.fr/entreprendre/actu-startup/cop-21-le-top-10-des-applis-eco-responsables-3191.php Schneider Electric http://download.schneider- electric.com/files?p_enDocType=Customer+success+story&p_File_Id=1530573030&p_File_Name=Yashilli_updated.pdf &p_Reference=Yashili%2BDairy%2BFactory https://blog.schneider-electric.com/machine-and-process-management/2017/09/19/iiot-enabling-architecture-improves- energy-efficiency-50/ CISCO : L'internet of Everything, un potentiel de 14,4 trillions de dollars Des connexions pertinentes et intelligentes pour optimiser l'innovation, la productivité, l'efficacité et l'expérience client CISCO IoT Training : I wrote this document following the online CISCO IoT training to appropriate the IoT / IoE concepts and put them in perspective with my knowledge of the industrial world and his challenges.

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