General Session & 18th Annual Meeting of Members
February 23, 2017

The Future ofIndustrial Automation
Industrial Internet of Things

IIOTImportant actions that industry can take to accelerate adoption, according to theWorld Economic Forum

General Session© 2017 ODVA, Inc.

2017 Industry Conference & 18th Annual Meeting
All rights reserved.

www.odva.org

3

IIOT
More important actions that industry can take to accelerate adoption
Leverage Key Enabling Technologies––––––––

General Session© 2017 ODVA, Inc.

Ubiquitous Connectivity
Cloud Computing
Embedded Sensors and Actuators
Real-time analytics
Maturing Software Industry
Investments in big time IT firms
Adaptive, learning based algorithms
Situational and geospatial awareness2017 Industry Conference & 18th Annual Meeting
All rights reserved.

www.odva.org

4

IIOT
A survey of more than 1400 C-suite

executives found that, although>80% believe that iIOT cantransform their business model,

only 7% have a strategy in place todo so.
“Winning with the Industrial Internet ofThings: How to Accelerate the Journey toProductivity and Growth” Accenture 2015.
Given that we are at the “Early Adopter” stage of diffusion, ODVA’s strategy is based on general
Guiding Principles to drive diffusion. Changing customer needs will be the ultimate driver.
General Session© 2017 ODVA, Inc.

2017 Industry Conference & 18th Annual Meeting
All rights reserved.

www.odva.org

5

Industrial Internet of Things: Unleashing thePotential of Connected Products and Services
Edy S. Liongosari
Chief Research Scientist
Accenture Labs
February 23, 2017

Accenture is a leading global professional services
company, providing a broad range of services and solutions
in strategy, consulting, digital, technology and operations.
Annual revenues
in 2016 (USDBillion)

Number of deeply
skilled professional$32.9

390,000+

Number of clientsworldwide

Number of patents
issued and pending

5,000+

5,500+

Number ofcountries served

Number ofindustries served

120+

40+

Example: Connected Ships
Facility
Inspection
Increase
Awareness!

Operator
Alertness

Waterway
Inspection

Real-time Location(for planning andtracking)Container Handling
Employee
Demographics
Employee Safety
and Comfort
Process
Enforcement
Predictive
Maintenance
Automated
Optimization

2002
Copyright © 2014 Accenture All rights reserved.

9Copyright © 2014 Accenture All rights reserved.

Copyright © 2017 Accenture All rights reserved.

https://newsroom.accenture.com/industries/publictransportation/metro-st-louis-teams-with-accenture-in-transitindustrys-first-ever-predictive-monitoring-pilot-for-vehicle10
maintenance.htm
10https://newsroom.accenture.com/subjects/technology/newaccenture-offering-uses-sensor-technology-to-help-companiesdeploy-wireless-applications.htm
Copyright © 2014 Accenture All rights reserved.
Copyright © 2017 Accenture All rights reserved.

1111Internet of Things in the News – Circa 2014

Copyright © 2017 Accenture All rights reserved.

12

Project Objectives
Industrial Internet of Things:
 Fad or real How big and how far
 Which areas that will be most impacted

 What are the implications: business models,industry structures and the role of actors withineach of these eco-systems
 What are opportunities – short and long term What are the key risks and concerns What are societal impact such as privacy,
security, and employment
 What are pragmatic steps that can be taken towork towards those benefits and to addressrisks/concerns
Copyright © 2017 Accenture All rights reserved.

13

Workshops and Participating Organizations
Davos, Switzerland
22 January, 2015Copyright © 2017 Accenture All rights reserved.

14

Framework of the study
Impact on Business, Economy and Jobs•••

What new business models, industry ecosystems and overall economic growth will the Industrial Internet create?
How will the increasing automation as a result of adopting the Industrial Internet transform the future job market and skill
sets required to succeed in the new economy?
How can businesses and governments best deal with the near- and intermediate-term transitions?

1. Create New
Products &Services

2. Create &DestroyIndustries

3. Shift Value
Within, AcrossIndustries

4. Change theNature ofControl Points

5. RedefineRole/Value ofProcesses, Data,Infrastructure

6. Transform
How Work Is
DoneOpportunities & Disruptions
Key Inhibitors

Key Enablers• Cloud• Ubiquitous Connectivity• Embedded Sensors• Real-time Analytics• Maturing Software Industry• Investments by big IT firms•…

Industrial Internetof Things• Security• Legacy OT &Infrastructure• Interoperability• Privacy• New Investment• Perceived Risks•…

Public Policies
What are appropriate public policies to accelerate the development and adoption of the Industrial Internet across multiple industries
e.g., energy, manufacturing, healthcare, transportation and public sectors?
Copyright © 2017 Accenture All rights reserved.

15

The Davos Session: From IIoT, IoT to Digital Transformation(Jan 22, 2015)16
Copyright © 2017 Accenture All rights reserved.

<WEF stats>

72%

78%

believe that the Industrial
Internet is disruptive

say that the disruption
will occur within five
years

88%

7%

indicate that businesses are
not ready for it now

have a funded IIoT strategy

Source: www.weforum.org/reports/industrial-internet-things-unleashing-potentialconnected-products-and-services
Copyright © 2017 Accenture All rights reserved.

17

The adoption of the Industrial Internet will be driven byincremental benefits in a near-term and transformational
new business models over a long term
Industrial Internet could add up to US$14
trillion to the global economy by 2030
- Source: Accenture Analysis, 2014

Long-term

3. Outcome-based
EconomyNear-term

2. New Product& Services
1. Operational
Efficiency• Asset Utilization• Operational costreduction• Worker productivity

Copyright © 2017 Accenture. All rights reserved.

• New business models• Software-basedservices• Data Monetization•••

Pay-per-outcome
New connectedecosystem
Platform-enabled market
place18

Commercial offering categories

Industrial Internet of Things will enable organizations to drive
unconventional revenue

Soil, plant andequipment analysis
results

Partner in agricultural
information service
marketplace

Machine maintenanceservices

Remote diagnostics
and optimization
services

Partner in agricultural
services

Farm equipment

More Intelligent Farm
equipment with sensors

Partner agricultural
products

Pre-digital product
lineDigital productline

New market
segment

Information
Services

Equipment
services

Products

Go to market approach
Copyright © 2017 Accenture All rights reserved.

19The adoption of the Industrial Internet will be driven byincremental benefits in a near-term and transformational
new business models over a long term
Industrial Internet could add up to US$14
trillion to the global economy by 2030
- Source: Accenture Analysis, 2014

Long-term

4. Autonomous Pull
Economy3. Outcome-based
EconomyNear-term

2. New Product& Services
1. Operational
Efficiency• Asset Utilization• Operational cost
reduction• Worker productivity

Copyright © 2017 Accenture. All rights reserved.

• New business models• Software-basedservices• Data Monetization•••

Pay-per-outcomeNew connectedecosystem
Platform-enabled market
place•••

End-to-end automation
Resource optimization
and waste reduction
Continuous demandsensing

20

The increasing use of connected products & smart machines willtransform the job market and the skill mix in the future workforce

93%
agree with the above
statement

Once youare donewith yourcurrent task,
pls contact
Andy

Copyright © 2017 Accenture All rights reserved.

RELEASE 2 SCREWS

21

The adoption of the Industrial Internet will be driven byincremental benefits in a near-term and transformational
new business models over a long termIndustrial Internet could add up to US$14
trillion to the global economy by 2030
- Source: Accenture Analysis, 2014

Long-term

4. Autonomous Pull
Economy•3. Outcome-based
EconomyNear-term

2. New Product& Services
1. Operational
Efficiency• Asset Utilization• Operational costreduction• Worker productivity

Copyright © 2017 Accenture. All rights reserved.

• New business models• Software-basedservices• Data Monetization

ROI & Business Models•••

Pay-per-outcome
New connectedecosystem
Platform-enabled marketplace••Continuous demandsensing
End-to-end automation
Resource optimizationand waste reduction

Workforce Transformation

Ecosystems & Platforms
22

Adoption of Industrial IoT is a multi-facetted multi-step process

Copyright © 2017 Accenture All rights reserved.

https://acnprod.accenture.com/t20160119T041002__w__/us-en/_acnmedia/PDF5/Accenture-804893-Smart-Production-POV-Final.pdf

23

Dynamic and ecosystem-driven

Self-managed

Self Organizing,
Dynamic,
DemandDrivenEquipment

Largely
manual andunconnected

Automatedmonitoring andconnected

Workforce

ManualManualStaticStaticCopyright © 2017 Accenture All rights reserved.

Materials
Supply ChainBusinessProcessPlatform

Facility &Environment
24Dynamic and ecosystem-driven

Integrate into
core enterprise

Equipment

Analyze,
Predict

Dynamic re-planning ofequipment to ensure
production capacity

Situationaware
assistance

Adaptive Simple
Collaborative
RobotsAutomatedmonitoring andconnected

Materials
Supply Chain

Continuous quality
assurance

Business
Process

Augmented
Workforce

Edge Intelligence
Automated
product design
API –enabled platform

Work-in-Progress
Tracking

Event based
automated alerts

Largely manual
andunconnected

Break/Fix

ManualManualStaticStaticManualtracking

Automated quality
inspection
Remote monitoring

Standard Manuf.
Execution SystemAutomated visibility tosupply chain
Integrated device andStatic, Manual
Distributed Control
systems identity andSystems
variant across locations
access mgmt

Dashboard
And Reporting

Platform blueprint & roadmap

Copyright © 2017 Accenture All rights reserved.

Life Safety
Workforce tracking

Resource
asrevenue
sourceReal-timeconnectivity to
Smart Energy
enterprise systems Solutions

Optimized
Production

Platform
Real-time visibility
tomaterials within
facility

Demand driven
production

Continuous quality
assurance

Analyze andPredict availability

Integrate into
core enterprise

Monitor condition
and alert notification

Self Organizing,Dynamic,DemandDriven

Inventory adjustment basedon material condition alert

Workforce
Configure andservice remotely

Dynamicschedulingand task mgmt.

Crowdsourcing

Continuouscertification

Self-managed

Real-time data
streaming, analytics andmodel management

Integration withMES

Data Management
and Simple Analytics

Optimize forresource
consumption

Facility &Environment
Analyze/Predict
Resource/Waste

Understand Resource
consumption/
Waste profile

25

Today’s Industrial Internet Architecture

secureopenEnterprise
Resource
Planning
Manufacturing
Execution Level
Basic Automation
Field level

Abb. Aus Prästentation Tauchnitz/Klettner, NAMUR HS
2016

Source: Industrial Internet Consortium: https://www.iiconsortium.org/IIRA-1-7-ajs.pdf

26
Copyright © 2017 Accenture All rights reserved.

Evolution of the Architecture

Integrated Platform...
Platform of Platforms• Loosely Coupled Platforms• “Google” approach

Copyright © 2017 Accenture All rights reserved.

Analytics at the Edge
• Management at scale• Long term evolution• Integrated Security

27

Other key considerations

https://ics-radar.shodan.io/Security• System breakdowns• Human lives

Ethical andResponsible
Computing28

Copyright © 2017 Accenture All rights reserved.

Contact Information

THANK YOUEdy S. Liongosari
edy.s.liongosari@accenture.com+1 (408) 817-2304
www.linkedin.com/in/edyliong