Industrial IoT & Big Data Analytics

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Industrial IoT &Big DataAnalytics:Capturing Value in thePLM Environment

Agenda About LNS Research What is the IoT and Digital Transformation? A New Model for System Architecture Closing the Data Science Divide Actionable Recommendations

About LNS ResearchWe are thought leaders and trusted advisors for Business,IT, and Automation executivesOur differentiators: Experienced analysts Primary social research Deep industry contacts Interactive data visualizations

LNS Research’s Council Members Include

Research Demographics: Metrics that Matter Survey300 executives and senior leaders took LNS Research’s MtM Survey in 2015 & 2016

What is the IoT and Digital Transformation?

Initiatives, Forums, and AssociationsIn 2011 we saw the emergenceof Industry 4.0 as a concept. Governments of U.S. andGermany have invested 1B Smart ManufacturingLeadership Coalition Industry 4.0 (Steam,Division of Labor,Automation, CyberPhysical Systems) Industry Associations Industrial InternetConsortia IoT World Forum

IT-OT ConvergenceOT is new name forIndustrial Automation.Three ongoing andaccelerating trends. Automation and IndustrialSoftware on Windows/Linus Automation on Standardunmodified Ethernet Devices on InternetAlso refers to enterpriseorganization – hybrid ITand automation groups.

(Industrial) Internet of Things IoT refers to network ofnetworks enabling newcyber-physical systems By 2020, over 50 billiondevices expected to beconnected via IoT (Cisco) Digital Transformationrefers to the social andbusiness disruption

Digital Transformation Framework

Setting Strategic Objectives: Role of PLM V RInternalExternal Smart Connected Enterprise:Real Time- Predictive Autonomous Smart Connected Products:Product- Service- Experience

A New Model for System Architecture

Enabling Tech: Industrial Internet of Things Platform Starting in 2014a battle of theplatformsstarted. Still anecosystem playtoday. Space stillneeds definition.

The Impact of IIoT Today Lack ofeducation isdiminishingrapidly Strongcorrelationbetween lack ofeducation andadoption plan

Current IIoT Adoption 3/4 of market iseventuallyexpecting toInvest in IIoT 51% of marketmakinginvestment innext 12 months

Crossing the Chasm We are atthe tippingpoint of IIoTadoption Earlyadopters arespreadacrossindustries

Traditional Enterprise Architecture (ERP) View EnterpriseArchitecturehastraditionallybeen managedby IT No room forIoT or cyberphysicalsystems

Traditional Enterprise Architecture (Automation) ViewPurdue/ISA95Model No ValueChain View Limitedintegrationand adoptionacrosshierarchy

Traditional Enterprise Architecture (PLM) View Enabling the DigitalThread and DigitalTwin Bring together thevirtual and realacross the valuechain. Limited view ofbusiness andtransactions

Operational Architecture: Managing IT/OT ConvergenceOperationalArchitecturebroadens scope forIT-OT ConvergenceAligns automation,engineering,business

Next-Generation Manufacturing Systems Architecture No ValueChain View Limitedintegrationandadoptionacrossarchitecture

Trends in Big Data and Analytics

The Data Science Divide: Engineers and Data Scientists Analytics are understood interms questions answered Predictive and prescriptiveanalytics traditionallydelivered as physics basedby engineers with PLM. Big Data and MachineLearning is delivered byData Scientists and drivingtechnical feasibility shifts

Understanding Big Data and Machine Learning

A Different View of the Questions to be Answered Crossing the Data Sciencedivide is about being opento new tools andmethodologies Think about traditionalFMEA for a product andhow this will change withIIoT? But is it happening today?

Data Used in Corporate Analytics Companiesinclude very littleunstructured datain corporateanalyticsprograms.

Algorithms Used in Manufacturing Most adoption isfor structured dataand Descriptive orDiagnostic analytics Adoption of BigData analytics is stillwoefully low

Sharing Data Outside the Enterprise Data is largelyshared outside theenterprise forsupply chaincollaboration. Business modeltransformation andenabling newstrategic objectivesis still a long wayoff.

Connected Product Data Quality is by farthe number oneuse of collectedproduct data Analytics andclosing the loop onquality for newexperiences willdrive success

Analytics Expertise Many Companiesalready feel maturewith current analyticscapabilities. Limited scope anddefinition of analytics Engineering andData Scientistscollaboration stillcoming

Recommended Actions

Actionable Recommendations Institute a formal Digital Transformationframework that ties together all levels of theorganization with a strategic vision. Deployed an IoT enabled Big Data architecturethat shares data outside of the enterprise andbreaks down internal hierarchy and silo’s Enable Digital Transformation by bringingtogether engineers and data scientists forprescriptive and predictive PLM analytics View the business case as a journey thatdelivers value across the product lifecycle.

Thank You!! LNS Research LNS Research 2015

Industrial Automation. Three ongoing and accelerating trends. Automation and Industrial Software on Windows/Linus Automation on Standard unmodified Ethernet Devices on Internet Also refers to enterprise organization – hybrid IT and automation groups.

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