Industrial Analytics:
The Engine Driving the IIoT Revolution
An Industrial Internet Consortium Technical White Paper

Wael William Diab, Huawei
K. Eric Harper, ABB
Dr. Shi-Wan Lin, Thingswise, LLC
William Sobel, System Insights

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1 INTRODUCTION
The Industrial Internet of Things (IIoT) seeks to connect industrial assets and machines—thethings—to enterprise information systems, business processes and people who operate and use
them. Advanced analytics is at the core of this next-generation level of integration and, whenapplied to machine and process data, provides new insights and intelligence to optimize decisionmaking significantly and enable intelligent operations leading to transformational businessoutcomes and social value. If data is the new fuel, data analytics is the new engine that propels
the IIoT transformation. As a fledgling new discipline combining advances in mathematics,
computer science and engineering in the context of Information Technologies (IT) andOperational Technologies (OT) convergence, industrial analytics plays a crucial rule in the successof any IIoT system. Operating in industrial settings, analytics has unique requirements,characteristics and challenges compared to business analytics and so requires special
considerations in its implementation. Much needs to be explored since industrial analytics is in
its early stage of development. This paper is intended to spur discussions and research, and speed
up the development and maturity of this indispensable technology.

2 THE INDUSTRIAL INTERNET OF THINGSThe Industrial Internet of Things is a natural extension of the Industrial and Internet revolutions.
IIoT will be a major force driving economic growth for the coming decades, at a greater pace thanprior revolutions. As outlined by the World Economic Forum1, “The first Industrial Revolution
used water and steam power to mechanize production. The Second used electric power to create
mass production. The Third used electronics and information technology to automate
production. Now, a Fourth Industrial Revolution is building on the Third, the digital revolutionthat is blurring the lines between the physical, digital and biological spheres.”
To accelerate this digital revolution the Industrial Internet Consortium (IIC) is advancing thetechnology of IIoT across a diverse set of application domains. The Industrial Internet integrates
the industrial assets and machines—the things—to enterprise information systems, businessprocesses and people who operate or use them. With these connections to the industrial assets
and machines, new technologies enable the application of advanced analytics to machine andoperational process data to gain insights into the operations, optimize them intelligently to boost
productivity, increase quality, reduce energy and material consumption, increase flexibility, andultimately create new business values, while maintaining commitments to safety, reliability,
security and data privacy, and conservation of the environment as social values.
The landscape for IIoT encompasses both IT and OT. Industrial analytics, analytics applied tomachine data for operational insights, can be seen as an engine driving the convergence of OT
and IT, and ultimately value creation for the Fourth Industrial Revolution.
1

Schwab, K., “The Fourth Industrial Revolution: what it means, how to respond”, World Economic Forum(2016).

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3 THE VALUE OF INDUSTRIAL ANALYTICS
Analytics may be broadly defined as a discipline transforming data into information throughsystematic analysis. Industrial Analytics is the use of analytics in IIoT systems.
To understand the value of industrial analytics, consider this example use case. In an industrial
setting, a major cause for unplanned downtime and expense is machine outage. This translates
to billions of dollars 2 lost in unplanned failures of equipment and unnecessary maintenance.
Currently, most companies use scheduled maintenance plans for preventive maintenance. Thismeans that maintenance is performed on machines even if they are sitting idle, costing time andresources, as well as requiring unnecessary disruptive procedures that can reduce equipment
reliability. On the other hand, critical problems are often missed due to insufficient diagnostics
resulting in unplanned downtime and often-costly repairs. Both the over- and undermaintenance of assets contribute to higher operating expense (OpEx).
To address these issues, maintenance needs to shift to prognostics that will only schedulemaintenance based on component lifetime characteristics and its usage, rather than solely onschedule. Next, the practice needs to advance to predictive where analytics are applied to sensor
and machine operational data to forecast the likelihood of certain failures in a given period. With
this information, machine maintenance can be optimally scheduled and performed to avoid
unexpected interruption to the operations and at lower cost. Analytics can even be applied into
the control loop to adapt the machines to avoid operational conditions that can have detrimental
effects on the machines and processes.
Data analytics plays a vital role providing crucial insights needed for decision-making and for
optimal deployment of resources in industrial applications. Those capabilities in turn effectivelytranslate to an increase in the efficiency of labor and capital. Long-term GDP growth isfundamentally dependent on capital, labor and efficiency. Increasing the efficiency of capital andlabor is paramount to having not only a path for GDP growth but also competitive advantages,
whether it is in developed or emerging economies.

4 ANALYTICS IN INDUSTRY
Analytics as a discipline in applied mathematics has been widely adopted by organizations for
decades, most prominently as business analysis in finance, banking and ecommerce.
In industrial settings, analytics is currently used to identify and address potential faults in assets,
improve uptime and reduce repair costs. This is called “condition monitoring.” With the rapid
development of information and communication technology (ICT), partly aided by standards andinnovations in sensor and computer technology, it is now possible to extend advanced analytics
to large numbers of machines across the globe. Advances in analytics algorithms and techniques,2

J. Manyika, et al, “The Internet of Things: Mapping the Value Beyond the Hype”, McKinsey & Company(June 2015)

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Industrial Analytics: The Engine Driving the IIoT Revolution
including machine learning, are used to analyze large amounts of data gathered from industrial
control systems. The insights gained from the analytics can be applied automatically to increase
operational efficiency of machines by, for example, anticipating peak usage, streamlining the
supply chains for parts needed for preventative maintenance, and for business planning anddecision-making. Using insights drawn from the machine data to drive intelligent operational andbusiness processes, industrial analytics enables the convergence of analytics in the OT and IT
worlds.

5 DESIGN CONSIDERATIONS
One of the common questions is where the analytics should be performed.
The consideration for industrial analytics location may also come in the form of “do I needanalytics at the edge?” or “is it sufficient to have my analytics engine run on top of my big data
platform?” The answer is, it depends. Let's take a closer look at how an industrial ecosystem
works from the business and ICT perspectives. The following constraints may govern the general
operation and associated requirements for industrial analytics.
Scope: Ultimately, it is the derived information (not the raw data) and how it can be acted on that
determines what kinds of analytics are deployed. For instance, if the goal is to optimize machine
uptime at one site, then analytics performed on data gathered there may be sufficient. In thiscase, the analytics can be performed anywhere, provided that, if done remotely, the normal local
operation is not critically dependent on network latency and the availability of the analytics
results. On the other hand, if the value proposition is to optimize production across sites requiring
comparison of factory efficiencies then analytics needs to be performed on data gathered fromthese sites and thus be available in a higher tier in the system architecture.
Response time and reliability: It is expected in an industrial setting that some problems require
deterministic analysis, computation and response. Others can be done after the fact. For theformer, it almost always requires analytics “locally” for reliability and performance.
Bandwidth: With advancements in sensor technology and ever increasing cost reductions in its
deployment, a large number of sensors may be deployed in an industrial setting. The total
amount of data generated by these sensors, together with data gathered from the control
systems can be massive. The increased network and infrastructure required to fuse the massive
amount of data from one domain with those in others will be compensated by the creation ofvaluable insights.
Capacity: In some cases, it may be optimal to perform the analytics at a particular tier in a systemarchitecture, but the existing infrastructure may not be able to support it, so a different tier isselected. Key properties of the ICT infrastructure include latency, bandwidth and computational
capacity.
Security: The value from moving data must be balanced with concerns for transferring raw data
outside of controlled areas, and the associated costs. Thus, it may be more efficient to perform

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certain analytics locally first and only share necessary summary, redacted or anonymized
information with those in the other domains.
Volume: All data needs to be stored, at least temporarily, to derive business value. The storage
capacity required depends on the application, but in general there is more available and at alower cost the closer you get to the cloud.
Velocity: Industrial measurements are typically captured cyclically. Typical high-frequency data,such as vibration or acoustics data from aircraft engines and wind turbines, can significantly
increase the speed of data processing. Another consideration is transient events where readings
must be captured with accurate time recording to determine order of occurrence, causality androot cause. With these low latency requirements, analytics using high velocity data is better
performed close to where the data is measured.
Variety: In many industrial settings, a major impediment to rapid innovation may be the variety
of data, not the velocity or volume. Such a setting often comprises many pieces of equipmentthat have been acquired over many years, having dissimilar controls, interfaces and available
data. Effective analytics depends on shared information models to understand the data highly
varying in both format (syntax) and content (semantics) to deliver the expected insights.
Analytics maturity: Processing of raw data (measurements) into descriptions (information) andthen contextualizing the results (knowledge) and benefiting from historical experience (wisdom)
is not limited to where the analytics can be performed.
Temporal Correlation: One of the common issues in IIoT systems is correlating data between
multiple sensors and process control states, including the temporal order at which the data is
generated. Simply progressing the data to upper tiers without any local analysis may increase theburden of correlation when the analytics is applied. By applying analytics at a lower tier closer towhere the data is generated addresses the temporal order issue.
Provenance: As data progresses through an IIoT system into different domains and upwards
through the tiers in the system architecture, it is easy to lose track of the genuine source of thedata. Performing analytics at a lower architecture tier avoids losing track of the genuine sourcesof the data as they progress through the IIoT system.
Compliance: As an example, national security concerns may place restriction on the architecturaldecision about data management and sharing with government regulations in industries likeaerospace and defense. This will influence where the analytics must be placed to meet theregulatory requirements, for example, possibly preventing performing large-scale computation
in a public cloud facility to lower the cost.
Table 1, below, illustrates example considerations of the feasibility of locating industrial analytics
processing in a deployment, organized in this instance as the plant, enterprise and cloud, where
the first two are hosted within the organization and the third provided outside but still under
their control. For any one consideration, there is flexibility for the location, but considering morethan one quickly narrows the feasible alternatives.

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Industrial Analytics Location
Evaluation Criteria

PlantEnterprise

Cloud

X

X

X

X

X

Analysis ScopeSingle site optimization
Multi-site comparison
Multi-customer benchmarking

X

Results Response Time
Control loop

X

Human decision

X

X

Planning horizon

X

X

X

Connectivity Reliability
SiteX

Organization

X

X

GlobalX

X

X

Connectivity Bandwidth
Raw data

X

Processed results

X

X

Summarized results

X

X

X

X

X

X

X

X

Storage and Compute Capacity
ServerMultiple servers
Data center

X

Data Security
SecretX

ProprietaryX

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X

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Industrial Analytics Location
Evaluation Criteria
SharedPlant

Enterprise

Cloud

X

X

X

Data Characteristics
VolumeX

Velocity

X

Variety

X

X

X

Descriptive

X

X

X

Predictive

X

X

X

Prescriptive

X

X

X

Analytics Maturity

Event Correlation
Sub-seconds

X

Seconds

X

X

Tens of seconds

X

X

X

Data ProvenanceSensor

X

Asset

X

X

Site

X

X

X

X

X

X

X

X

Regulatory Compliance
Asset
Process
IndustryX
X = Feasible alternative

Table 1. Industrial Analytics Design Considerations

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It is the combination of all these factors that determines what capabilities are required and where
the analytics will be deployed. Generally speaking, which analytics and where the processing islocated depends on the maximum acceptable network latency and jitter in response to events,
criticality of the analytics in the normal operations (e.g. how bad it would be if the external
network is cut or an upper tier system becomes unavailable) and the cost of uploading large
amounts of data. From the deterministic response, reliability and resilience perspectives, it is
optimal to perform analytics close to the sources of the data, and the analytics results need tobe accessible for decision-making. In most systems, some form of hybrid approach with local andcentralized analytics will be required.

6 CREATING BUSINESS VALUE
An enterprise needs to increase throughput, reduce expenses and inventory to generate higher
margins.
Sales drives manufacturing throughput, but it cannot exceed the enterprise’s capacity to
produce, otherwise compromising on-time delivery and disappointing customers. One approachis to identify performance bottlenecks in overall operations continuously and remove them oneby-one to meet the demand from sales and profit targets. This process needs to be grounded inreliable information about the demands, production, inventory and the operational processes.
IIoT and specifically industrial analytics enables stakeholders to gather data from machines andoptimize processes more efficiently. The opportunity is substantial since over 86% of companies
do not have a corporate analytics program that uses manufacturing data (LNS Research, 20163).
According to the 2016 Global Manufacturing Competitiveness Index report by Deloitte Touche
Tohmatsu Limited and the US Council on Competitiveness, Predictive Analytics and Smart
Connected Products are #1 and #2, respectively (see Table 2, on the following page). This showsthat the desire to leverage analytics is a high priority for most CEOs, but the awareness of howthat technology will be applied and the areas of greatest impact are not well understood.

3

http://blog.lnsresearch.com/5-real-surprises-from-the-2016-metrics-that-matter-research-study

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Table 2. Ranking of future importance of advanced manufacturing technologies by executives,
Source: Deloitte Touche Tohmatsu Limited and US Council on Competitiveness, 2016 Global
Manufacturing Competitiveness Index

As our business systems and analytical capabilities increase, some enterprises will adopt data andanalytical strategies, some will not. Enterprises that avail themselves of these technologies will
far outpace the others in their ability to produce products and services quickly and safely andmaintain quality with full accountability for their processes. The cost of manufacturing will also
be flattened, allowing developed countries to compete effectively in global markets because thevalue of skills and experience will more than compensate for the wage differential.

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7 ANALYTICS ARCHITECTURE
Industrial analytics can be applied in different domains distributed across an IIoT system andtuned to varying time scale horizons.

Figure 1. Analytics Mapping to the Industrial Internet Reference Architecture

The required architecture can be analyzed in the context of the functional domains of theIndustrial Internet Reference Architecture (IIRA) developed by the IIC, as shown in Figure 1 above.
An end-to-end IIoT system in the IIRA is functionally decomposed into five functional domains:
1.
2.
3.
4.
5.

Control: sensing, communication, execution, motion, and actuation;
Operations: provisioning, management, monitoring, diagnostics and optimization;
Information: data fusion, transforming, persisting, modeling and analyzing;
Application: logic, rules, integration, human interface; andBusiness: enterprise and human resources, customer relationships, assets, service
lifecycle, billing and payment, work planning and scheduling.

The control domain is a collection of functions that are performed by the industrial assets orcontrol systems, most predominantly, in exercising the closed control loops within themselves.
The operations domain is a collection of functions for assets and control systems management
and maintenance to ensure their continuing operations. The Information domain is a collectionof functions for collecting, transforming, analyzing data to acquire high-level intelligence of theentire system. The Application domain is a collection of functions for applying use case specificlogic, rules and models based on the information obtained from the information domain toachieve system-wide optimization of operations or other business objectives. The businessdomain is a collection of functions for integrating information across business systems andapplications to achieve business objectives.
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Industrial analytics results can be applied to the control domain as edge analytics providing realtime operational insights to the control loops in a machine time horizon that typically requires
analytic response in milliseconds or less. Examples include autonomous vehicles and robotics.
Analytics in this time horizon tends to be streaming in nature and applied automatically.
Industrial analytics results can be applied to the application and operations domains to provide
machine insights that enable advanced maintenance such as automatic fault detection anddiagnosis, and preventive maintenance, or to drive optimal operations across fleets of machines
or assets. The analytics result is applied in an operation time horizon that typically requires ananalytic response in the range of seconds or more. Analytics in this time horizon also tends to be
streaming in nature and applied automatically. Industrial analytics results can also be applied tothe business domain as well, providing insights to enable in intelligent business processes,
including aiding business planning and engineering processes. The analytics result is applied in aplanning time horizon that typically requires an analytic response in the range of days or more. It
consists of both streaming analytics results that are applied automatically (e.g. to work andmachine part scheduling for on-site repair) and batch analytics results based on on-demand
queries.

8 GETTING STARTED WITH INDUSTRIAL ANALYTICS
Industrial analytics are used to identify and recognize machine operational and behavioral
patterns, make fast and accurate predictions and act with confidence at the points of decision.
Analytics generally fall into three major categories:
Descriptive analytics gain insight from historical or current data streams including for status andusage monitoring dashboard, reporting, anomaly detection and diagnosis, model building or
training and such.
Predictive analytics identify expected behaviors or outcomes based on predictive modeling using
statistical and machine learning techniques, e.g. capacity demand/usage prediction,material/energy consumption prediction, and component/system wear and fault predictions.
Prescriptive analytics finds the optimal solution by determining what is likely to happen based on
first principles, empirical models and using predictive analytics that incorporates causality related
to design and execution decisions. An example of prescriptive analytics is on-demand production
from a solid geometric assembly model to find the optimal set of manufacturing processes toachieve the final product intent, taking into consideration all possible options and capabilities.
The analytics results can be applied automatically to the machines and systems, or used tosupport human decisions through visual analytics to enhance human understanding andgenerate confidence in a decision.
Industrial analytics has unique challenges as an engine driving IIoT transformation because theresults can alter the operation and safety of things in the physical world. These effects may beundesirable or harmful, inadvertently affecting the safety of people or damaging property andthe environment. Moreover, because industrial analytics often interpret data from different
sensors and machines that may conflict with one another, we need to understand and synthesize
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the diverse information streams to reach a correct conclusion. Table 3, below, identifies theunique requirements to consider when planning for industrial analytics.

Correctness

Industrial Analytics must satisfy a higher level of accuracy in its analytic results. Any system that interprets
and acts on the results must have safeguards against undesirable and unintended physical consequence.

TimingIndustrial Analytics must satisfy certain hard deadline and synchronization requirements. Near
instantaneous analytic results delivered within a deterministic time window are required for reliable andhigh quality actions in industrial operations.

SafetyWhen applying Industrial Analytics, and interpreting and acting on the result, strong safety requirements
must be in place safeguarding the wellbeing of the workers, users and the environment.

Contextualized

The analysis of data within an industrial system is never done without the context in which the activity andobservations occur. One cannot construct meaning unless a full understanding of the process that is being
executed and the states of all the equipment and its peripherals are considered to derive the true meaningof the data and create actionable information.

Causal-oriented

Industrial operations deal with the physical world and Industrial Analytics needs to be validated withdomain-specific subject matter expertise to model the complex and causal relationships in the data. The
combination of first principles, e.g. physical modeling, along with other data science statistical andmachine learning capabilities, is required in many industrial use cases in order to provide accurate analytics
results.

Distributed

Many complex industrial systems have hierarchical tiers distributed across geographic areas. Each of thesesubsystems may have unique analytic requirements to support their operations. Therefore, Industrial
Analytics must be tailored to meet the local requirements of the subsystems it supports. The requirements
on timing (avoiding long latency) and resilience (avoiding widespread outage of service because of faults
in the network or in a centralized system) require a distributed pattern of Industrial Analytics in that theanalytic will be implemented close to the source of data it analyzes and to the target where its analytic
outcome is needed.

Streaming

Industrial Analytics can be continuous or batch processes. Because of continuous execution in industrial
systems, a large proportion of Industrial Analytics will be streaming in nature, performing analysis of live
data and providing continuous flow of analytics results in support of the operations. Traditional batchoriented analytics will still be performed either for building or improving analytic models, or for humandecision-making.

Automatic

In order for the Industrial Analytics to support continuous operations, the analysis of streaming data andthe application of analytic outcomes must be automatic, dynamic and continuous. As the technologies inIndustrial Analytics advance, improvements in analytic modeling e.g. through learning may also be
automatic.

Semantics

Analytical systems require data that has meaning and context. Unstructured data, when reported without
attribution to the source and the component or system it represents, makes deriving value complex since
it requires the analytics to guess or infer the meaning. Inference unnecessary adds significant uncertainty
into the system. Most data can be properly attributed at the source, and if this information iscommunicated, it can significantly increase the success and accuracy of the analytical systems.

Table 3. Industrial Analytics Requirements

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9 ANALYTICS CAPACITY CONSIDERATIONS
The functionality for industrial analytics is informed by the experience and wisdom from both IT
and OT. Both expect reliable operation and repeatable response times. However, the way thesegoals are achieved is different. Information technology relies on elasticity to provide the required
capacity and operational technology ensures determinism with engineered capacity.
Elasticity is a fundamental cloud technology measure of “the degree to which a system is able toadapt to workload changes by provisioning and de-provisioning resources autonomic manner,such that at each point in time the available resources match the current demand as closely as
possible.”4 For example, most retail businesses generate significant revenue during the holiday
season at the end of the year. Dramatic changes in staffing, production and logistics are made inpreparation for this crucial time-period. Correspondingly, all the IT systems need to be preparedand have enough capacity to handle these changes to avoid affecting profitability. The remainderof the year those resources can be scaled back or repurposed to reduce costs.
Determinism is the ability to support predictable computation and transmission of
measurements and results between the devices attached to the network. Deadlines must be met
with expectations that a work request will complete with the same response time for every
request. The analytics and results must be communicated in a defined time-period andconfirmation must be provided. For example, operational systems are designed with a capacity
for continual processing, regardless of the state or condition of the plant. So, when a production
plant starts up or shuts down, which can generate rapidly changing values and multiple alarms,
the requirement for deterministic response in the IIoT system is no different than when the plantis at steady state.
These two philosophies are in many ways complementary. Close to industrial processes, it isappropriate to provide reliability and predictability using dedicated resources. In the cloud withmultiple tenants sharing the same set of resources dynamically, it makes more sense to delivercapabilities just-in-time because there could be different service levels. There are early signs thatthe manufacturing industry is moving in the direction of on-demand services to deliver just-intime parts using shared assets. The World Economic Forum, in collaboration with Accenture, havepredicted that this will become the long-term trend of manufacturing and there will be aconvergence between the concerns between shared IT capacity on demand and manufacturingservices.5 In other industries, such as transportation and energy, there is movement towards
services and shared capacity.

4 Herbst, Nikolas Roman; Samuel Kounev; Ralf Reussner (2012). "Elasticity in Cloud Computing: What It Is, and What

It Is Not" (PDF). Proceedings of the 10th International Conference on Autonomic Computing (ICAC 2013), San Jose,CA, June 24–28.
5O’Halloran, et. al., (2015). “Industrial Internet of Things: Unleashing the Potential of Connected Products andServices” (PDF). World Economic Forum in collaboration with Accenture.

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10 ANALYTICS FUNCTIONALITY
Industrial Analytics functionality is deployable throughout the architecture.
The capabilities needed for successful industrial analytics solutions are shown in Table 4, below.
Each feature is realized by a set of functions defined by use cases that meet the stakeholders’expectations, especially with regard to non-functional requirements.
Visualize

Display and manage data readings and analytics results using a common framework

ExploreAd-hoc experiments with historical data

DesignAutomation of the data analytics stages; data quality, data mining, and business intelligencealgorithm composition

Orchestrate

Delegate work requests over a cluster of computing resources, and collect and aggregateintermediate and final results

Connect

Exchange data and work requests between components using a common framework

CleanseMerge data sets from different data sources based on suitable criteria; remove irrelevant dataand clean noise from data

ComputePerform computation of statistical, first principle and machine learning model analytical
calculations, including live analysis on streaming data, batch or ad hoc data mining and operation
and business intelligence analysis

Validate

Ensure analytics results when applied in the context of the application and environment will notharm people or property. This function should be independent from the core analytics processing
and act as a governor

Apply

Apply analytics results to various subsystems, including the automation systems (e.g. adjusting
control parameters or models), operations and business processes, increasingly automatically or
as information aiding human decision-making

Store

Archive and reproduce measured and calculated data streams, especially time-series sequences

ManageManage the information model, including data sources, computing resources and data analytics
metadata

Supervise

Manage system reliability by ensuring processes are started and maintained, and that computerresources are not exhausted
Table 4. Industrial Analytics Capabilities

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For example, in our manufacturing use case, the plant operators visualize the conditions of theprocess line using graphical displays. When an alert appears, the operator uses the display to drill
down into the time-series records of the key parameters. On the other hand, in planning for the
next run, the operator might use a similar drill-down to visualize the workflow and determine if
there are any concerns that need to be addressed based on anticipated environmental
conditions.
The fundamental prerequisite for industrial analytics is availability and access to data from theindustrial process and related assets. Data is collected close to the process through connections
and stored, at least temporarily, where the readings can be scanned and evaluated dependingon the type of analytics. The stored values may be discarded or archived for further calculations.
Data scientists can explore the archived data using statistics to compute correlations, and apply
algorithms to classify and cluster the evidence over time. Industry subject matter experts have agood understanding of the context and condition of the process and assets, and can interpretand validate the readings and recommend cleansing filters. It is this combination of data scienceand subject matter expertise that produces the best results.
The industrial analytics workflow can be automated as the data and relationships are better
understood. Given an appropriate framework, the automation is designed, configured andorchestrated to transform raw data into actionable results. The workflow and algorithmic
content is versioned and deployed both on premise and in the cloud as needed to meetstakeholder expectations. The entire process is supervised to ensure all steps are completed andvalidated. Ideally, the industrial analytics solution evolves over time to produce better results
using a minimum of resources, and to improve accuracy as more experience and historical data
are acquired.
The final step is to communicate and present the industrial analytics results in a compelling andeasily understandable format. This functionality many times is unique to the application, but canemploy a framework for display, including charts, graphs, and recommended actions. Most
important is to provide means for humans to interact with the results, starting with a summary
and allowing drill down into the evidence that supports the recommendations.
As analytics advances, more and more meaningful operational patterns, especially anomaly, will
be detected, identified and reported as alerts, along with relevant supporting data to theoperators automatically. Moreover, root causes of faults can be automatically diagnosed andremedies or repairing actions can be prescribed; faults and failures can be prevented by rulingout improper operating parameters that are outside of the normal ranges and be predicted basedon the historical experience of making similar parts. On the other hand, machine operational
efficiency can be monitored and optimized based on analytics result as well as orchestration of
manufacturing resources and coordination and interaction of the prices of equipment and thepeople who operate them.
Clearly, all these will improve the operational efficiency of manufacturing and operations and at
the same time reduce the stress on human operators in keeping the machines operating at theirbest capacity. On the other hand, analytics is no magic by itself—it requires a combination ofobtaining the proper data at the proper time, applying the proper analytics algorithms and
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models which are guided by the necessary engineering domain knowledge from both themachine manufacturers, system integrators and the plant operators themselves. It is importantto recognize that this is a process of continuing learning and improvement as any intelligent
processes. For example, the types of data collected can be extended and their quality can beenhanced, the algorithms and models can be subjected to refinement and deeper domain
knowledge can be injected into the models.

11 CLOSING THOUGHTSAs the engine driving value-creation in IIoT, industrial analytics deserves a great deal of attention
from the IIoT community. As a large percentage of industrial companies have not incorporated
machine data in their analytics process for decision support and intelligent operations, industrial
analytics and IIoT offer a great opportunity to drive the next round of value creation. The
development of industrial analytics in an IIoT system needs to be driven by business objectives
and value. Industrial analytics, especially at its early stage of development, requires a systematicand architectural approach that is flexible to meet the operational and business requirements
and forward looking in accommodating usage changes and technological advances.
Furthermore, to implement analytics that can fully support end-to-end intelligent industrial
operations and business processes, it requires cross-service and cross-domain sharing of dataand information from analytics. In other words, for example, for manufacturing of products,
there are services needed to support the analytical modeling of the design and engineeringfunctions as well as the execution, verification, quality and lifecycle maintenance of that product.
These services need to interact to provide optimal solutions by verifying prescriptive decisions
with empirical outcome and refining models of both production and design. The interaction ofthese services and the information sharing will be key to a successful end-to-end analyticalsolution with greatest impact.
Therefore, the realization of the benefit from industrial analytics requires community andecosystem-wide efforts in sharing, inventing and standardizing technologies and know-how. With
its central role in IIoT and intelligent industrial operations and the great impact it may bring,industrial analytics is expected to experience rapid growth. Because it is still in a nascent stage,
it needs collective nurturing for its health development.
Now is the time to build a thriving industrial analytics community to collaborate to achieve its
promise.

12 CONTRIBUTOR ACKNOWLEDGMENTS
This document is a work product of the Industrial Internet Consortium. The Industrial Internet
Consortium wishes to thank the following contributors for their leadership on this white paper.

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WAEL WILLIAM DIAB
Wael is a business and technology strategist with more than 860 patents to
his name in the fields of networking and ICT. Skilled in strategy for breakout
technology products at large companies, Wael has architected strategies,
driven industry standards and led associated company technology roadmaps
for Green Networking, Ethernet, Power over Ethernet, Ethernet in the First
Mile (EFM), Cloud/Mist/Fog/Edge Networking, Internet of Things (IoT),
Industrial Internet, Big Data, automotive networking, Intelligent
Transportation Systems (ITS) and audio video bridging, Time Sensitive andDeterministic Network, ICT Sustainability, Open Compute and open source,amongst others.
Wael is currently a Senior Director at Huawei. Prior to Huawei, Wael held senior leadership roles
at Fortune 500 companies, including Cisco and Broadcom. Wael holds BS and MS degrees inElectrical Engineering and a BA in Economics from Stanford, and an MBA with honors from theWharton School of Business. He has 358 US issued patents and over 504 pending US patentapplications in the ICT field. Wael was awarded the TechAmerica David Packard 2011 Medal for
innovation in green technology. Wael co-chairs the IIC Liaison Working Group, Technology
Working Group, Industrial Analytics Task Group and is a member of the IIC Steering Committeeas Huawei's alternate. Wael is a published author, having coauthored Ethernet in the First Mile:
Access for Everyone.

K. ERIC HARPER
Eric is a senior principal scientist at ABB Corporate Research specializing insoftware architecture and sustainable technologies. Over the past nine
years he has made significant contributions to the Industrial Internet,
process automation, substation automation, and power electronics. Eric
graduated from Virginia Tech and attended Rensselaer Polytechnic
Institute in electric power engineering as part of the General Electric
Advanced Course in Engineering (ABC), working in GE Large Steam Turbine
and Corporate Research. Eric transferred to the Westinghouse Power
Generation division making substantial technical contributions for a service
bureau dedicated to monitoring and diagnosing conditions in electric power plants. Since then
Eric has had a variety of assignments over the past two decades as a hands-on project lead,development manager and software architect in distributed architecture, factory automation,business applications, middleware tools, server management, IT security, healthcare IT, software
performance and scalability. Eric’s current work is to lead ABB’s architecture for Industrial
Analytics. He served on the Steering Committee for the IEEE/IFIP Working Conference on
Software Architecture (WICSA) and represents ABB at the Industrial Internet Consortium as
Steering Committee member and Technology Working Group co-chair.

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DR. SHI-WAN LIN
Dr. Lin is the CEO and a co-founder of Thingswise, LLC(www.thingswise.com), a startup providing a streaming analytic
platform as a turnkey solution that is purposely built for IIoT systems
by adapting and innovating key IT technologies to meet OT
requirements. Dr. Lin co-chairs various technical groups for the
Industrial Internet Consortium, the Architecture Joint Task Groupbetween Plattform Industrie 4.0 and the Industrial Internet Consortiumand the National Institute for Standards & Technology (NIST) CyberPhysical Systems Public Working Group. Dr. Lin is a leading contributor to the Industrial Internet
Reference Architecture published by IIC. Previously, he worked for Intel for 10 years, last as a
Principal Engineer/Technologist in the Strategy and Technology Office in its Internet of Things
Group. His other prior experience includes working for Sarvega, Inc (a Web Service/SOA/Security
startup), Lucent Technologies and Motorola. Dr. Shi-Wan Lin has 20+ years’ experience in systemarchitecture, Big Data, analytics, enterprise software, Cloud Service, system security and trust,telecommunications and wireless data communications in both large corporate and startup
settings.

WILL SOBEL
Mr. William Sobel is Chief Strategy Officer and co-founder of System
Insights and the principal architect and chair of the MTConnect InstituteTechnical Steering Committee. He also has been the primarycontributor to the open source implementations of the MTConnect
standard.
Mr. Sobel brings over 25 years of experience architecting, managing,and developing complex applications for numerous industries. Prior toworking for System Insights, Mr. Sobel was a visiting lecturer at UC
Berkeley working at the RadLAB teaching agile web development. During his employment at theuniversity, Mr. Sobel authored the MTConnect standard as a consultant to AMT (Association for
Manufacturing Technology) to address the lack of standardized inter-device communication in
manufacturing. Prior to his work at UC Berkeley, Mr. Sobel was VP/Chief Architect at MSCI-Barra,
specializing in financial risk management software for some of the largest asset managementcompanies in the world.

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Industrial Analytics: The Engine Driving the IIoT Revolution

A publication of the Technology Working Group, authored by Wael William Diab (Huawei), K. Eric
Harper (ABB Technologies), Dr. Shi-Wan Lin (Thingswise), Will Sobel (System Insights).
Copyright © 2017 Industrial Internet Consortium. All rights reserved. This document is provided
AS-IS and WITHOUT WARRANTIES.
All copying, distribution and use are subject to the limited License, Permission, Disclaimer andother terms stated in the Industrial Internet Consortium Use of Information – Terms, Conditions& Notices, as posted at https://www.iiconsortium.org/legal/index.htm#use_info. If you do not
accept these Terms, you are not permitted to use the document

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