The Industrial Internet Consortium (IIC) generates much useful information promoting awareness and technical tips about, well, the Industrial Internet of Things. Last week I had the opportunity to speak to the authors of a new white paper, ”Introduction to Edge Computing in IIoT”, Todd Edmunds, Senior Solution Architect, IoT, Cisco, and Lalit Canaran, VP, SAP.
The paper provides practical guidance on edge computing, architectures and the building blocks necessary for edge computing implementations. The IIC is also planning to release an Edge Computing Technical Report that will contain in-depth technical information in the coming months.
This paper is not a C-level generic paper evangelizing the concept, but rather practical advice designed to open the discussion followed by technical details targeted to those to whom the C-level executives might tell, “I have been reading about the IIoT. This looks like something we should be jumping into.”
We discussed how the edge should be defined by the business objective rather than the technology used. Using computing at the edge improves performance of the system when bandwidth could be the constraining factor for using the cloud.
As the edge gets more powerful, they told me, the role of the cloud will shift to one of orchestration of remote sites plus storage.
“Many companies are wanting to realize the business benefits that edge computing is purported to provide but are unsure where to begin or how to realize those advantages. The IIC has been at the vanguard of the industrial internet since its inception, and edge computing has been an integral part of driving the transformational outcomes that go along with it,” said Edmunds. “With the publication of this white paper, we provide practical guidance on where the ‘edge’ is and the key drivers for implementing edge computing. We also provide detail on edge computing architectures and real-world use cases.”
“Almost every use case and every connected device on the industrial internet requires some sort of compute capability at its source at the edge,” said Dr. Mitch Tseng, Distinguished Consultant, Huawei Technologies, and co-author of the white paper. “Oil rigs in remote locations have sensors gathering data but they need to be mindful of the challenges of data transmission because of bandwidth issues or the cost of transmission. The white paper is a first step in the development of an industrial grade ‘cookbook’ for edge computing.”
“Organizations adopting an IIoT strategy need to understand what data is available, how to use it to drive industrial processes and how to orchestrate, manage and secure data/compute,” said Canaran. “This paper and subsequent technical report will enable enterprises to unlock the full potential of the edge-cloud continuum and drive the business outcomes enabled by next-generation IoT devices, machine learning and AI.”
The full IIC Introduction to Edge Computing in IIoT white paper and a list of IIC members who contributed can be found on the IIC website.
So I decided not to make a cross country trip to San Diego for Rockwell Automation’s RATechEd event this year. I have cross country trips coming up the next two weeks followed by family time. So, I’m doing a one-day business trip plus taking my wife out for dinner in Chicago this week. Anyway, they had informed me that they wouldn’t be setting up interviews but that I’d be welcome to sit in any sessions I wanted. I passed.
Then I see a tweet from PTC today. Blockbuster news. Rockwell Automation’s Connected Enterprise just became connected. It has invested $1B in PTC for an approximate 8% ownership. PTC has [ERP], PLM, and IIoT (Kepware and ThingWorx). By connecting with these technologies, Rockwell now has the possibility of a technology convergence rivaling its rivals in Europe.
There are three of my questions about Rockwell answered:
- Other than a refreshing change of culture, what else was Blake Moret going to do to put his stamp on the company?
- When was Rockwell Automation going to really connect the enterprise like its slogan has held for several years (about the time I came up with Manufacturing Connection for the new title for my blog)?
- How was Rockwell going to answer the digital manufacturing and Industry 4.0 moves made by its European competitors Siemens, Schneider Electric, and ABB?
This is far from an acquisition and just a partnership right now. But it is a big step in the right direction.
Here is the press release I downloaded from Business Wire.
PTC Inc. and Rockwell Automation, Inc. today announced that they have entered into a definitive agreement for a strategic partnership that is expected to accelerate growth for both companies and enable them to be the partner of choice for customers around the world who want to transform their physical operations with digital technology.
As part of the partnership, Rockwell Automation will make a $1 billion equity investment in PTC, and Rockwell Automation’s Chairman and CEO, Blake Moret, will join PTC’s board of directors effective with the closing of the equity transaction.
The partnership leverages both companies’ resources, technologies, industry expertise, and market presence, and will include technical collaboration across the organizations as well as joint global go-to-market initiatives. In particular, PTC and Rockwell Automation have agreed to align their respective smart factory technologies and combine PTC’s award-winning ThingWorx IoT, Kepware industrial connectivity, and Vuforia augmented reality (AR) platforms with Rockwell Automation’s FactoryTalk MES, FactoryTalk Analytics, and Industrial Automation platforms.
“This strategic alliance will provide the industry with the broadest integrated suite of best-in-class technology, backed by PTC, the leader in IoT and augmented reality, and Rockwell Automation, the leader in industrial automation and information. Our combined customer base will benefit from two world-class organizations that understand their business and deliver comprehensive, innovative, and integrated solutions,” said Jim Heppelmann, President and CEO, PTC. “Leveraging Rockwell Automation’s industry-leading industrial control and software technology, strong brand, and domain expertise with PTC’s award-winning technology enables industrial enterprises to capitalize on the promise of the Industrial IoT. I am incredibly excited about this partnership and the opportunity it provides to fuel our future success.”
Blake Moret, Chairman and CEO, Rockwell Automation, said, “We believe this strategic partnership will enable us to accelerate growth by building on both companies’ records of innovation to extend the value of the Connected Enterprise and deepen our customer relationships. As IT and OT converge, there is a natural alignment between our companies. Together, we will offer the most comprehensive and flexible IoT offering in the industrial space. Our equity investment in PTC reflects our confidence in the partnership and the significant upside we expect it to create for both companies as we work together to profitably grow subscription revenue.”
Rockwell Automation’s solutions business will be a preferred delivery and implementation provider, supported by a robust ecosystem of partners that both companies have established. The strength of both companies across geographies, end markets, and applications is complementary.
Under the terms of the agreement relating to the equity investment, Rockwell Automation will make a $1 billion equity investment in PTC by acquiring 10,582,010 newly issued shares at a price of $94.50, representing an approximate 8.4% ownership interest in PTC based on PTC’s current outstanding shares pro forma for the share issuance to Rockwell Automation. The price per share represents an 8.6% premium to PTC’s closing stock price on June 8, 2018, the last trading day prior to today’s announcement. Rockwell Automation intends to fund the investment through a combination of cash on hand and commercial paper borrowings. Rockwell Automation will account for its ownership interest in PTC as an Available for Sale security, reported at fair value.
Taiwan-based Advantech’s leaders have always been intellectual strategic thinkers. They have clued me in on several good management books. The company is an industrial computer company with industrial data acquisition and I/O devices that has successfully positioned itself as an edge device leader in the Internet of Things space.
The company has announced its strategies for entering the next phase of IoT development. To expand local operations, Advantech will fully activate the deployment of branch locations throughout various regions. In addition, a co-creation model will be adopted to construct the Industrial IoT (IIoT) ecosystem and strengthen the influence of vertical domains.
Advantech’s Executive Director of the Board, Chaney Ho, stated that since taking over as executive director last year, he has been focusing on developing regional strategies and establishing development goals and directions for each region, all of which are based on their scope.
In regions with a larger scope (Europe, United States, and China), to reinforce the Advantech brand recognition in IoT and Industry 4.0, talent cultivation and an increased presence in local sales are the company’s primary goals to actively respond to recent developments in Industry 4.0 trends in the EU, plans by the U.S. government to shift production back to America, and the China One Belt One Road policy.
For medium and small-scale regions, Mr. Ho stated that Advantech will develop Japan, South Korea, India, and Russia to generate $130 million in revenue. The company also plans to further increase investment in Malaysia and Thai IIoT organizations and new branch locations in Vietnam, Russia, and Turkey will be established through mergers and acquisitions as well as joint ventures.
Regarding developments in the European region, Miller Chang, President of Advantech’s Embedded-IoT (EIoT) Group, expressed that a sector-lead strategy has been practiced by the EIoT group since 2014. Various product divisions from headquarters have been fully connected with overseas frontline business teams and compound annual growth rate from 2014 to 2017 has reached 25%.
Key development points for the next three years in Europe are:
1. Elevating operation levels in five key regions, the UK, France, Germany, Italy, and the Netherlands.
2. Establishing branch offices in emerging European regions for conducting business and providing technical support.
3. Focusing on key industries, such as gaming, medical, transportation, and automotive, in Germany, UK, and the Netherlands.
With respect to development in the Greater China Region, Linda Tsai, President of Advantech’s IIoT Group, believes that the embedded systems/hardware from Phase I IOT development as well as IoT solutions platforms from Phase II are Advantech’s “double-growth engine” in IIoT development. Following this, three key strategies have been proposed.
1. Implement and IIoT sector-lead organizational development model expanding industry management and optimize regional resource allocations,
2. Set successful examples in the Greater China Region to accelerate the marketing of hardware/software and imaging solutions.
3. Actively cultivate local personal to become mid-to-high level supervisors to expand into the Chinese market.
Fantine Lee, Manager of Advantech’s Corporate Investment Division, pointed out that Advantech will continue to actively promote platform management during Phase II IoT development, SRP co-creation, and the co-created digital transformation of vertical industry cloud services during Phase III through the co-creation model. As for vertical industry, cloud service companies to be co-created during Phase III, Advantech plans to establish subsidiaries in Taiwan and China and will include domains such as Smart Manufacturing, Smart Environmental Protection, and Smart Retail. These companies will be managed together with Advantech’s co-creation partners. Furthermore, opportunities in other domains, such as Smart Hospitals, Smart Factories, Industrial Vision Systems, Consultant Training, and Integration Services will continue to be promoted and co-created.
Miss Lee further stated for Phase II development, Advantech’s WISE-PaaS cloud platform will serve as the foundation for building a comprehensive value chain for SRPs. This year, third-party software and WISE-PaaS platform integration with SaaS suppliers and collective sales/agents will be introduced at an accelerated pace. In addition, partnerships with software developers specializing in monitoring and diagnosing connected equipment, energy management, data analysis, machine learning, and other vertical industries will be established.
Hannover Messe was the place to learn the latest about all things digital—digital twin, Industry 4.0, Industrial Internet of Things (IIoT). SAP was one of the many stops in my itinerary advancing the trend.
My contact at the SAP booth at Hannover wasn’t around when I arrived for my appointment, so I left—only to get a text a half-hour later that he had arrived. But I was off to another appointment by then. However I did glean this information from the company at and following the show.
SAP enters the digital twin era
SAP SE has introduced SAP S/4HANA Cloud for intelligent product design, a new solution for collaborative research and development.
The solution, which is built on SAP Cloud Platform using SAP’s latest digital twin technology, is one of the building blocks for a network of digital twins to enable new business models.
Powered by SAP Leonardo and integrated with business processes in the digital core, SAP S/4HANA Cloud for intelligent product design enables customers to accelerate product design and development with requirement-driven systems engineering and instant collaboration across an extended network of suppliers and partners.
“The solution provides shared views of digital twin information for customers to gain live insights on new products and to store, share and review engineering documents with internal and external participants,” said Bernd Leukert, Member of the Executive Board of SAP SE, Products & Innovation.
SAP’s network of digital twins synchronizes the virtual, physical, conditional, and commercial definitions of assets and products in real time to accelerate innovation, optimize operating performance, predict service requirements, improve diagnostics and enhance decision-making. It enables new levels of collaboration among manufacturers of products, operators of assets, suppliers and service companies. The approach combines digital twins with manufacturing solutions from SAP, cloud networks and SAP Leonardo capabilities, including machine learning, blockchain and Internet of Things (IoT), to optimize the product lifecycle with:
• Digital representation: SAP synchronizes digital twin business data, product information, asset master data and IoT-connected data from both on-premise and cloud solutions enabling companies to represent the world digitally. Solutions including SAP Predictive Engineering Insights, SAP Predictive Maintenance and Service and the SAP 3D Visual Enterprise applications provide access to rich data processing capabilities and live configuration, state, condition and control information.
• Business process: Rich enterprise-grade data processing capabilities allow customers to create, access and update digital twins to support business processes. SAP solutions provide an integrated data model from design, production and maintenance to service, including packaged integration to existing systems for computer-aided design, ERP, and product lifecycle management. Offerings providing end-to-end process support for manufacturers and operators include SAP S/4HANA, the SAP Engineering Control Center integration tool, SAP Hybris Service Cloud solutions, and the SAP Manufacturing Integration and Intelligence and SAP Manufacturing Execution applications.
• Business networks: With leading network offerings such as SAP Ariba solutions, SAP Asset Intelligence Network, and the SAP Distributed Manufacturing application, SAP is uniquely positioned to provide a virtual platform for collaboration on products and assets. The network of digital twins enables secure data access, sharing and governance on a global scale.
• Networks of digital representation: SAP enables twin-to-twin connections in systems within a specific asset and on an asset-to-asset level. SAP solutions such as SAP Asset Intelligence Network provide semantic and industry-standards support in an asset core modeling environment to enable live enrichment during the product or asset lifecycle.
Digital Manufacturing Cloud
SAP Digital Manufacturing Cloud helps companies optimize performance, elevate production quality and efficiency, and ensure worker safety.
Drawing on SAP’s expertise in the Industrial Internet of Things (IIoT), predictive analytics and supply networks, the solution enables manufacturers to deploy Industry 4.0 technologies in the cloud.
The new cloud solution extends and complements the digital manufacturing portfolio of on-premise solutions from SAP and is available in different bundles to serve manufacturers of varying sizes in both discrete and process industries and roles within their respective organizations.
SAP customers can choose from the SAP Digital Manufacturing Cloud solution for execution, which provides all solutions in the manufacturing cloud portfolio, or the SAP Digital Manufacturing Cloud solution for insights, which focuses on performance management and predictive quality.
“Manufacturers in the era of Industry 4.0 require solutions that are intelligent, networked and predictive,” said Leukert. “Our manufacturing cloud solutions help customers take advantage of the Industrial Internet of Things by connecting equipment, people and operations across the extended digital supply chain and tightly integrating manufacturing with business operations.”
SAP Digital Manufacturing Cloud includes the following:
• SAP Digital Manufacturing Cloud for execution: Industry0-enabled shop floor solution features “lot size one” and paperless production capabilities. It integrates business systems with the shop floor, allowing for complete component and material-level visibility for single and global installations.
• SAP Digital Manufacturing Cloud for insights: Centralized, data-driven performance management enables key stakeholders to achieve best-in-class manufacturing performance and operations.
• Predictive quality: This helps manufacturers gain valuable insights to conform to specifications across processes and streamline quality management. It also allows manufacturers to apply predictive algorithms that can reduce losses from defects, deficiencies or variations, and recommend corrective actions.
• Manufacturing network: The network provides a cloud-based collaborative platform integrated with SAP Ariba solutions connecting customers with manufacturing service providers, such as suppliers of 3D and computer numerical control (CNC) printing services, material providers, original equipment manufacturers (OEM) and technical certification companies.
Also at Hannover Messe 2018, SAP announced SAP Connected Worker Safety, a solution designed to reduce risks, costs and protect employees. Information from wearables and other sensor-enabled equipment can help companies react immediately to a hazardous situation or incident while proactively managing worker fatigue and other hazard inducers. Real-time information allows monitoring of compliance at all times against regulatory and other parameters.
Hannover Messe continues to reflect the trend of companies joining alliances to develop and promote standards and interoperability. While I did not have an interview with the Avnu Alliance while I was in Hannover, I talked with some members and obtained other information. Avnu Alliance promotes adoption of the Time Sensitive Networking (TSN) extension to Ethernet.
Specifically, Avnu Alliance is a community creating an interoperable ecosystem of low-latency, time-synchronized, highly reliable networked devices using open standards. Avnu creates comprehensive certification programs to ensure interoperability of networked devices. The foundational technology enables deterministic synchronized networking based on IEEE Audio Video Bridging (AVB) / Time Sensitive Networking (TSN) base standards. The Alliance, in conjunction with other complimentary standards bodies and alliances, provides a united network foundation for use in professional AV, automotive, industrial control and consumer segments.
The adoption pace of TSN from 2017 to 2018 was amazing.
I always drop by the Industrial Internet Consortium (IIC) area at Hannover and check out the TSN Testbed for Flexible Manufacturing. The testbed was developed with two major goals – to show TSN’s readiness to accelerate the marketplace; and to show the business value of TSN in converged, deterministic IIoT networks. Momentum is increasing for the testbed, with the IIC hosting its 10th plugfest in an 18-month timeframe at the Bosch Rexroth facility in Frankfurt, Germany and its 9th plugfest, which was held in Austin, TX in February at National Instruments (NI) headquarters following a joint workshop on interoperability with Avnu Alliance. The TSN Testbed recently integrated test tools from Avnu Alliance members, Calnex, Ixia and Spirent into plugfest activities, and demonstrated interoperability of TSN devices from more than 25 companies performing real-time automation and control automation functions over TSN.
Any Avnu Alliance member is welcome to join the IIC TSN Testbed or to participate in a plugfest. Upcoming plugfests will be held in Austin, TX from June 26-29, 2018 and in Stuttgart from July 24-27, 2018.
The Edge Computing Consortium (ECC) along with members and Avnu Alliance, hosted a press conference to announce new developments surrounding the newly created OPC UA TSN testbed. The testbed demonstrates six major IIoT scenarios mimicking processes found in smart manufacturing settings and utilizing products across different TSN vendors. Avnu Alliance is a key partner supporting the development of the testbed with the ECC in the shared goal of enabling manufacturers to test their products for interoperability and conduct trials of real-world systems as an early check for problems.
Tom Weingartner, Avnu Alliance member and Analog Devices’ marketing director for Deterministic Ethernet Technology Group, represented the Alliance at an announcement ceremony.
Paul Didier, Avnu Alliance member and IoT solutions architect, Cisco delivered a talk at the Industrie 4.0 meet the Industrial Internet Forum, in a presentation titled “Time Sensitive Networks – Where does the technology stand and what to expect”. He will provide an update on TSN and how manufacturers, alliances and liaison groups are working together to advance the technology and its implementation in the IIoT.
Paul will present an additional lecture for the Forum on “Modernizing Your Industrial Manufacturing Network”. The presentation will follow the findings coming out of the IIC TSN Testbed and its capabilities, including information on how manufacturing automation and control infrastructure vendors and key decision-makers can leverage TSN for a variety of operational benefits, including increased connectivity between devices and the ability to extract and analyze valuable information through interconnectivity.
“HANNOVER continues to be a key industry event for both Avnu Alliance members and liaison groups that we work with to educate and increase awareness of TSN as a solution for the growing IIoT,” said Todd Walter, Avnu Alliance Industrial Segment Leader and Chief Marketing Manager at NI. “Whether through the developments coming from the TSN testbeds, speaking engagements or product demonstrations, our members and partners are committed to creating an interoperable TSN network that gives all industrial devices a more streamlined path to participating in the TSN ecosystem.