The Internet of Things (IoT) and Big Data have each made press headlines and continue to be board-level priorities. The intersection of IoT and Big Data is a fascinating area of innovation with tremendous scope for business impact. From industrial sensors to vehicles to health monitors, a huge variety of devices connect to the Internet and share information.

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At the same time, the cost to store data has dropped dramatically while capabilities for analysis have made huge leaps forward. But are these connected devices actually gathering usable data? What are the challenges in storing and analyzing huge amounts of real-world information? Does improved data analysis benefit IoT projects?

The following report, sponsored by ParStream, is based on a survey of technology and business professionals with responsibility for IoT projects. Participants included “Technology” stakeholders (development, IT operations, and systems integrators) as well as “Business” stakeholders (business owners, product managers, program managers, and business intelligence). The goal of the survey was to understand experiences and impacts of using the data captured by the devices that make up the Internet of Things.

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Utilities, government agencies, and private enterprises count on our deep expertise and proven track record in SCADA to better protect their people and local communities, optimize processes, and enable people to work in more efficient and productive ways. Our systems are proven to offer no compromise performance – delivering the robust, secure, and continuous monitoring, automation and data communications that you need to effectively run your operations. We are now taking a lead role in working for the creation of the Industrial Internet of Things that will enable this technology to fully deliver on its potential to create better ways to work and spark a new industrial revolution.

Industrial Internet: Pushing the Boundaries of Minds and Machines

November 26, 2012

Peter C. Evans and Marco Annunziata

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Table of Contents

I. Executive Summary 3-4

II. Innovation and Productivity: What’s Next? 5-6

III. Waves of Innovation and Change 7-12

The First Wave: The Industrial Revolution

The Second Wave: The Internet Revolution

The Third Wave: The Industrial Internet

IV. How Big is the Opportunity? Three Perspectives 13-18

Economic Perspective

Energy Consumption Perspective

Physical Asset Perspective… Things That Spin

V. The Benefits of the Industrial Internet 19-30

Industrial Sector Benefits: The Power of One Percent

Commercial Aviation

Rail Transportation

Power Production

Oil & Gas Development and Delivery

Healthcare

Economy-wide Gains: The Next Productivity Boom

The Great Fizzling

The Internet Revolution

Return of the Skeptics

Industrial Internet: Here Comes the Next Wave

How Much of a Difference Would it Make?

Industrial Internet and Advanced Manufacturing

Impact on the Global Economy

Role of Business Practices and the Business Environment

VI. Enablers, Catalysts and Conditions 31-33

Innovation

Infrastructure

Cyber Security Management

Talent Development

VII. Conclusions 34

VIII. Endnotes and Acknowledgements 35-37

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McRock's Industrial Internet of Things Report 2014

The IIoT is connecting the physical world of sensors, devices and machines with the digital world of software to maximizing the efficiency of our most critical physical assets. Discover the companies, large and small, that are leading the way.

The Industrial Internet of Things has been heralded primarily as a way to improve operational efficiency. But in today’s environment, companies can also benefit greatly by seeing it as a tool for finding growth in unexpected opportunities.

In the future, successful companies will use the Industrial Internet of Things to capture new growth through three approaches:

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boost revenues by increasing production and creating new hybrid business models, exploit intelligent technologies to fuel innovation, and transform their workforce.

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Henry Ford introduced the first assembly line on Dec. 1, 1913 and organizations have been looking for ways to improve their manufacturing processes ever since. Major breakthroughs came about in the 1970s with the adoption of Programmable Logic Controllers (PLCs). PLCs allowed organizations to connect to machines within their plants, extract data and use it to maximize system uptime. Shortly after, Electronic Data Interchange (EDI) technology was introduced, allowing manufacturers to share inventory data with vendors and suppliers in near real-time.

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This enabled manufacturers to integrate to the supply chain and further improve the efficiency and agility of their operation. These innovations were revolutionary in terms of improving business efficiency on the plant floor. However, in order to have maximum impact on the business, manufacturers must look beyond their own operations and consider how to leverage connectivity for their distributors and customers.

The next paradigm shift in manufacturing is towards connecting manufacturing operations across the value chain. To do so, organizations will not only need to connect their plant equipment and supply chain, but also their demand chain. This can be achieved by connecting the products they create using machine-to-machine (M2M) technology for the Internet of Things (IoT). If an enterprise is connecting the assets it creates, it can gain powerful insights into its customers, business processes, distributors, maintenance requirements, product warranties and much more.

This white paper will discuss how organizations can connect their operations by leveraging the Internet of Things. It will provide insights into the evolution of manufacturing technology, the benefits of being a connected manufacturer, key enabling technologies and review important use cases.

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Within the next 6 years, companies in the Asia-Pacific area alone will increase manufacturing budgets from $9 billion to $57.96 billion. "Brilliant factories" are on our horizon, and the smart devices we love now have nothing on the next generation of industrial internet in manufacturing. With the future of this evolving industry in mind, the newest whitepaper from the Application Developers Alliance explores:

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The varying definitions of IoT in the manufacturing industry.

Best practices for direct IoT-factory integration.

Opportunities and challenges for developers to contribute.

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Executive summary 3

General findings 7

2.1 The state of the market 7

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2.2 The four phases of the Industrial Internet evolution 8

2.3 Key near-term opportunities and benefits 9

2.4 Major challenges and risks 10

Convergence on the outcome economy 12

3.1 From connected products to software-driven services 12

3.2 The emergence of the outcome economy 13

3.3 Delivering outcomes through connected ecosystems and platforms 14

Shift towards an integrated digital and human workforce 17

4.1 Enhancing productivity and work experience through augmentation 17

4.2 Creating new jobs in hybrid industries 18

4.3 Reskilling for digital industries 18

Recommended actions for stakeholders 21

Appendix A: About the research 29

Appendix B: Glossary 32

References 33

Acknowledgments 34

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