Unit:4

IoT Applications for Value

Creations
Overview
• Introduction
• IoT applications for industry
• Future Factory Concepts
• Brownfield IoT
• Smart Objects, Smart Applications
• Four Aspects in your Business to Master IoT
• Value Creation from Big Data and Serialization
• IoT for Retailing Industry
• IoT For Oil and Gas Industry
• Opinions on IoT Application and Value for Industry
• Home Management, eHealth
Introduction
• Within the context of industrial production IoT projects and
applications are developing in manufacturing, supply chain,
supervision and servicing.
IoT Applications for Industry —
Value Creation and Challenges
• IoT Applications:

IoT applications are solutions using IoT technologies capable to

improve and easy adapt industrial manufacturing processes, enable
new and efficient ways to do operate and interact in production
plants, create new service or supervision means for industrial
installations, offer an optimized infrastructure, reduce operational
cost and energy consumption or improve human safety in industrial
areas.
IoT Applications for Industry —
Value Creation and Challenges (cont.)
• Value, Benefits:

Value can be generated and may show up as a result of a combination

of IoT applications with other systems or processes, or can originate
in new human behavior or new interactions.

Asset utilization, productivity, logistics efficiency, innovation have

strong connections with IoT applications in industry.
IoT Applications for Industry —
Value Creation and Challenges (cont.)
• Value, Benefits (cont.)
“values” each contributing to the total benefit such as:
• Value from visibility identification, location tracking
• Value from IoT-supported safety in hard industrial environments
• Value from right information providing or collecting
• Value from improved industrial operation and flows in industry
• Value from reduced production losses
• Value from reduced energy consumption
• Value from new type of processes made possible by IoT applications
• Value from new type of maintenance and lifetime approaches
• Value enabled by smart objects, connected aspects
• Value from sustainability
IoT Applications for Industry —
Value Creation and Challenges (cont.)
• IoT applications requirements and capabilities:
• Reliability
• Robustness
• Reasonable cost
• Security and safety
• Simple use
• Optimal and adaptive set of features
• Low/No maintenance
• Standardization
• Integration capabilities
• Reach sensing and data capabilities
• Industry grade support and services
IoT Applications for Industry —
Value Creation and Challenges (cont.)
• Challenges faced by IoT industry applications:
divided in 4 groups:
• IoT device technical challenges
• Lifetime and energy challenge
• Data and information challenge
• Humans and business (lake of business models)
Future Factory Concepts
• Smart Factory production facility
Future Factory Concepts (cont.)
• Digital product memories in open-loop processes
Future Factory Concepts (cont.)
• Smart products
• Smart equipment and smart infrastructure
• The augmented operator
Brownfield IoT: Technologies for Retrofitting
• High value use cases for IoT retrofitting
Brownfield IoT: Technologies for Retrofitting (cont.)
• These “brownfield” use cases are all targeted towards optimizing
existing processes by decreasing the gap between the real world and
the virtual world.
• They are thus examples for an evolutionary approach towards an
“Industry 4.0” that builds upon IoT Technology.
Brownfield IoT: Technologies for Retrofitting
(contd.)
• Iot supported interactions as part of a complex Cyber-Physical-System
Brownfield IoT: Technologies for Retrofitting
(contd.)
• As depicted in Figure so called cyber-physical-systems in an industrial
environment are by definition heavily interconnected.
• They reflect their physical interdependencies also by communication
link and data exchange.
• Technologies like sensor networks and RFID often builds the missing
link in such an environment. IoT technology delivers “smartness” and
context awareness to otherwise “dumb” objects and environments.
Brownfield IoT: Technologies for Retrofitting
(contd.)
• Cost-effective Technical Integration of IoT Devices:
• A developer of IoT technology has to take various technical requirements into
account such as energy, communication bandwidth, communication topology,
or processing resources of different IoT systems.
• Additionally the interoperability is crucial to the value of the system.
• Cost-effective Process Integration of IoT Devices:
• Opportunistic data collection through local infrastructures and adhoc mobile
access.
• Context-aware interlinking of heterogeneous data starting from existing
processes.
• Human agility and expertise supported by a human-centered information
design.
Smart Objects, Smart Applications
• Smart Object is a bi-directional communicating object which
- observes its environment and
- is able to make decisions depending on the application and based on
the information extracted from the physical world.
• One approach to Smart Objects is based on the technology of
wireless sensor networks, as they already provide the communication
platform and the sensors.
Smart Objects, Smart Applications (cont.)
• The ISO/IEC JTC1/WG7 Working Group on Sensor Networks has
designed reference architecture Figure, which separates the sensor
node functionality into three layers:
- Communication Layer: describes the communication protocol for
the interaction of a smart object with other smart objects, an
infrastructure or backbone networks.
- Service Layer: represents a set of functions commonly required,
such as sensor information gathering, filtering by various policies and
rules, data comparison and analysis, data mining etc.
- Application Layer: realizes the use case of a smart object by a set of
functions to users to meet defined requirements.
Smart Objects, Smart Applications (cont.)
• Figure: Architecture overview of interconnected smart objects.
Smart Objects, Smart Applications (cont.)
• From the users prospect the smartness of a smart object is realized
within the service and the application layers.
• Smart objects are designed as miniaturized, low power
microelectronic systems based on micro controllers, transceivers,
sensors and energy supply.
• As these microelectronic systems provide very limited resources (i.e.,
processing power, memory) reconfigurable software implementations
for smart objects become a challenge.
Especially when reconfiguration requires:
- easy programming
- minimum code size
Smart Objects, Smart Applications (cont.)
• Reconfiguration is done by adding or changing components or by
changing the functionality behind the interfaces.
This is done by code programming of the components and by
software update on the smart object.
• Code Programming and data-intensive software update can be
avoided by the new approach of smart applications.
Service oriented approach vs Smart applications approach (consist of
software components).
Smart Objects, Smart Applications (cont.)
• Service oriented approach — left and Smart application approach —
right.
Smart Objects, Smart Applications (cont.)
• Smart applications workflow — from a jigsaw puzzle to the
application on the node
Four Aspects in your Business to Master IoT
• 1. Internet Conquering Product Business:
- In order to deliver value for business it is too narrow to just look at
connectivity.
- It is important to look at the business process and the benefit for the
involved stakeholders in a specific application.
- In recent years, the internet has transformed communications (Voice over
IP, Twitter), the media landscape (news, advertising), commerce (eBay,
Amazon) and the music industry (file sharing, online music stores).
- Now, smartphones and tablets are helping it to spread throughout our
professional and private lives.
- Given that daily life is ever more interactive and networked, and our
contacts ever more global, and can expect everyday objects to be more
intelligent and networked, too.
Four Aspects in your Business to Master IoT (cont.)
• 1. Internet Conquering Product Business (cont.):

- The Internet of Things (IoT) is the next generation of the internet. It

is a global system of interconnected computer networks, sensors,
actuators, and devices that use the internet protocol to potentially
connect every physical object.
- By merging this physical world with software from the virtual world,
organizations, companies, and consumers will be benefited from new
services that emerge from web-based business models.
Four Aspects in your Business to Master IoT (cont.)
• 1. Internet Conquering Product Business (cont.):
Figure: Impressive is the growth that is seen in internet access
Four Aspects in your Business to Master IoT (cont.)
• 1. Internet Conquering Product Business (cont.):
Figure: By 2015 expected IP-ready devices, connected to the internet,
6,593 billion.
Four Aspects in your Business to Master IoT (cont.)
• 2. Strategic Business Aspects
Figure: Internet of Things & Services four dimensions
Four Aspects in your Business to Master IoT (cont.)
• 3. Vertical Business Domains for IoT
Figure: Applications for the Internet of Things & Services.
Four Aspects in your Business to Master IoT (cont.)
• 4. Reference Architecture and the Core Competence for Business
• The business success in one vertical domain is the key entry point, but
successful architectures will reach out to other verticals later.
• Only architectures that can cover multiple domains will be successful
in the long run.
Four Aspects in your Business to Master IoT (cont.)
• 4. Reference Architecture and the Core Competence for Business (cont.)
FIGURE: Bosch Software Innovations reference model for the Internet of Things & Services.
Auto_ID — Value Creation from Big Data and
Serialization
• This chapter explores IoT technology as a value creation capability
rather than as a cost optimization strategy, specifically exploring the
value of data that is collected from multiple infrastructures across a
product lifecycle and
where the Auto-ID serialized identifier may serve as a key to linking
relevant data to individual products, processes and related outcomes.
Auto_ID — Value Creation from Big Data and
Serialization (cont.)
• Serialization Role in an ‘Internet of Things’
• Big data in the pharmaceutical industry
• Tracking serialized products
• The value of supply chain data
• Quality by design
• Legal information flows
• Finance flows
• Regulatory oversight
• Product lifecycle management data
• Keeping better track of things
Auto_ID — Value Creation from Big Data and
Serialization (cont.)
• Relevant links:
• https://www.youtube.com/watch?v=U7NEWy4Vb7k
• https://www.youtube.com/watch?v=Y94NcGrpS1A
• https://www.youtube.com/watch?v=kz9Xy1eT0X4
• https://www.youtube.com/watch?v=ql7B0quuqDs
• https://www.youtube.com/watch?v=KRgWIBfPulA
• https://www.youtube.com/watch?v=4LyiuQdQJ7s
• https://www.youtube.com/watch?v=xmZT9UrL9cE
What the Shopping Basket Can Tell:
IoT for Retailing Industry?
• Relevant links:
• https://www.youtube.com/watch?v=krNk52b8Do4
• https://www.youtube.com/watch?v=n-ouKu9tNPM
• https://www.youtube.com/watch?v=iRvaWHk3A8k
• https://www.youtube.com/watch?v=336YkwayCD4
• https://www.youtube.com/watch?v=uEbYNJZ9iJ4
• https://www.youtube.com/watch?v=NrmMk1Myrxc
IoT For Oil and Gas Industry
• Relevant links:
• https://www.youtube.com/watch?v=ZUyg-Moz0fk
• https://www.youtube.com/watch?v=4fooLrCl24M
• https://www.youtube.com/watch?v=6_kdEguYwwg

• Other links on Industry 4.0:

• https://www.youtube.com/watch?v=v9rZOa3CUC8
• https://www.youtube.com/watch?v=HPRURtORnis
Opinions on IoT Application and Value for
Industry
• At a recent international workshop on IoT application and value
creation for industry, a quick survey was done asking participants at
the workshop on their opinion on value creation using industry IoT
applications.
• The structure of the survey, as shown in Figure 3.24, has asked on IoT
areas of application and expected time evolution, technologies and
challenges.
• The respondents have been form academia, research,
public/governmental and industry.
Opinions on IoT Application and Value for
Industry (cont.)
• Fig. 3.24 IoT small survey structure.
Opinions on IoT Application and Value for
Industry (cont.)
• Main areas of industrial IoT applications — presently and in 5 years.
Opinions on IoT Application and Value for Industry
(cont.)
• Fig. 3.26 Industry areas are expected to have most important benefit
from IoT applications.
Opinions on IoT Application and Value for Industry
(cont.)
• Fig. 3.27 How to create more value from IoT applications.
Home Management
• Energy
• Garbage
• Entertainment
• Temperature
• Grossary
• Security etc.
eHealth
• Remote Patient Monitoring
• Medicine
• Body Temperature
• Body Position
• Pulse Oximeter etc.
Reference
• Vermesan, Ovidiu, and Peter Friess, eds. Internet of things: converging
technologies for smart environments and integrated ecosystems. River
Publishers, 2013.
THANK YOU