POV-Internet of Things

Nirmal Nag
Design Authority, SAP Enterprise Application
 Table of Contents

1. Abstract ..................................................................................................................................... 3
2. Technology Overview ................................................................................................................ 4
3. Architecture and process stakeholders ..................................................................................... 5
4. Industry Requirement................................................................................................................ 8
5. Platform evaluation ................................................................................................................. 17
6. Market Forecast ...................................................................................................................... 17
7. Conclusion ............................................................................................................................... 19
8. References ............................................................................................................................... 19

2
1. Abstract
Successful evolution of smartphone platforms capable of running a multiplicity of
user-driven applications using integrated environment gives rise to the next generation
of capability of connecting various sensors and objects to the ecosystem. The
phenomenon commonly known as Internet of Things has the potential of changing
the world in the coming years. A vivid presentation of IoT shown below opens several
design thinking for future.

Figure 1 A vivid description of IoT by Jon Berkeley

The Point of View prepared aims to have an end to end overview of IoT clarifying the
scope of individual stakeholders in the process chain with a special emphasis on two
aspects.

3
 1. Comparison of SAP HANA Cloud Platform and IBM BlueMix from an IoT
perspective.
2. A comprehensive list of use cases of some key industries ( Oil and Gas, Retail,
Travel and Transport etc.).

2. Technology Overview

A collection of billion end devices, transmitting information about every transaction

you do knowingly and unknowingly, eventually guiding you with options to improve
your future transactions, sounds like a highly entertaining science fiction but the
world is getting prepared to experience this in a few years time. This innovation is
destined to disrupt the way ecosystem interacts today by generating several
opportunities and at the same time outdating current skills and capabilities. As
shown below an estimated 25 billion IoT installations will be storming the market by
2020.

Figure 2 Estimated IoT devices by 2019

Source: http://www.businessinsider.com/how-the-internet-of-things-market-will-grow-2014-10

However like any innovation, Internet of Things will have to follow the same path pf
evolution like any other technological disruption. It is not a recent discovery which
has awestruck the world but has been in industries for years. Sensing change of
state of a physical entity and actuating a process in response, packaged as
4
Automation has been used by industries for decades. Exponential growth of
internet technologies, rapid steps to the era of cloud, mobility leapfrogging towards
5G, in-memory computing changing the paradigm of database systems- the
resultant of all these forces is extending M2M automation to all internet connected
components in the ecosystem rightly defined as Internet of Things (IoT) or even
more Internet of Everything by Cisco. The point of view is based on the trend
analysis given below which clarifies the growth of IoT in future.

Figure 3- Google trend of Growth - Internet, Big Data, Cloud & IoT

IoT solutions available today had been developed with specific challenges in mind
and hence faces challenges of interoperability. Various technologies and standards
have been applied to build these solutions and consequently they appear as isolated
solutions. The IoT umbrella encompassing all technologies will only be successful
when a common technical grounding and common architectural principles are
followed by all stake holders of the food chain of IoT ((UniS), 2013).
The article aims to identify the main stakeholders and then there area of operation
from a component and industry perspective for an end to end implementation of
Internet Of Things services offered to an end user. It is important to emphasize at
this stage that some cool features of a smart device or availability of robust APIs
with great features alone cannot build opportunities for IoTs in the marketplace.
The combination of all features leading to a differentiated value added service is
what customers are looking for and hence evaluation of industry specific use cases is
another area of interest to be explored in this article.

5
 3. Architecture and process stakeholders
The enablement of IoT services is not confined to the features available in individual
components but can be achieved by efficient bidirectional data flow through all
processes linked with the process chain. A process chain of all major components is
shown below:

Figure 4- Process Chain of IoT reflecting Stake Holder Engagement

A brief definition including main features, standards used together with industry
stakeholders are provided below:

Smart Device: This is a combination of smart module and smart object. It has the
capability of representing an object of physical world to the digital world. Referring to
ARM (Architecture Reference Model) this is also known as augmented entity which
combines physical entity to a virtual entity containing software resources and
services to transmit information to the internet. (MARINA RUGGIERI, 2013). A smart
device is thus capable of communicating with other device of internet. In order to
categorize as a physical device it should have the following components (Davy):

1. Power Component- Source of power provided to the device e.g. battery, solar,
electricity etc.
2. Memory Component- internal memory in form of cache, volatile and non-
volatile to store information for intelligent processing.
3. Processing Component- Required for intelligent decision making.
4. Communications Interface- Capability to communicate with other devices
through several protocols used e.g. Ethernet, USB, Bluetooth, GPRS, GSM etc..
6
The key enablers of by smart devices are as follows:

Miniaturization: Remarkable progress made by Microelectromechanical Systems

(MEMS) in recent years have expedited the capability of IoT usage The core
technology of MEMS is to realize the combination of microelectronics technology,
micromachining technology and the packaging technology. Different levels of 2D and
3D micro-sensitive structures can be produced based on microelectronics and micro-
machining technology, which can be the miniature sensing elements. These
miniature sensing elements, associated power supply and signal conditioning circuits
can be integrated and packaged as a miniature MEMS sensor.

Energy Requirement: To power the sensor nodes several energy harvesting

technologies are evolving as battery power is not the most reliable source of energy.
Temperature, light and vibration- these are the main sources of ambient energy
provider to power the sensors.

Access Network Technologies: The range of sensor networks varies from few
hundred meters to several miles and is also commonly known as the last mile.
Traditionally optical fibre structure with high transmission rate was used to meet this
requirement but with the mushroom growth of smart sensor capabilities the
backbone becomes a bottleneck and reliance on wireless technologies have
increased. According to the current specific requirements for WSN applications, the
development of access network technology has already made significant progresses.
Several industry based standards are used to cover IoT requirements.

Examples are

Bluetooth 4.0 for medical WSN;

IEEE 802.15.4e for industrial WSN;
WLAN IEEE 802.11 for other IoTs.

Network:

A WSN (Wireless Sensor Network ) can generally be described as a network of

nodes that cooperatively sense and may control the environment, enabling
interaction between persons or computers and the surrounding environment. In
fact, the activity of sensing, processing, and communication with a limited amount
of energy, ignites a cross-layer design approach typically requiring the joint

7
 consideration of distributed signal/data processing, medium access control, and
communication protocols. In addition it contains a number of sensor network
nodes and a gateway for the connection to the internet. The network is based on
linear, star and mesh topologies (IEC, 2014). Also the new IPv6 technology has an
enormous address resource which is suitable for a wide range of sensor network
deployment and is gradually replacing the traditional IPv4 addressing standard..
As a result, 6LoWPAN low-power wireless technology based on IPv6 has emerged
to meet IoT requirement.
Industry Requirement

SAP Value Added Service

The strategy adopted by SAP to support their customers in the journey of IoT
revolution is to augment on existing footprint without disrupting the existing
business process. It plans to continue offering line-of-business specific solutions
which is built on core transactional business solutions and capabilities. The core IoT
solutions supporting Industry 4.0 will be integrated with SAP Business Suite
applications that customers are running today both on premise and in the cloud.
Solutions offered are as follows:
SAP Predictive Maintenance
Harnessing the power of the Internet of Things (IoT) and machine-to-machine (M2M)
technology to transform field service and asset management, SAP Predictive
Maintenance and Service can analyse large volumes of operational data and apply
predictive insights in real time to increase asset availability and satisfaction levels.
Main Features include:
Leverage remote machine sensors that monitor equipment behaviour 24/7
Predict machine and equipment malfunctions before they happen
Optimize asset maintenance and servicing and automate operations

8
 Figure 5 SAP Predictive Maintenance

The SAP Predictive Maintenance and Service Solution based on SAP HANA cloud
platform allows equipment manufacturers and operators of machinery and assets to
monitor machine health remotely, predict failures and proactively maintain assets.
Specifically owners, operators, manufacturers of machines and equipment can collect
sensor and telemetry data from remote assets and merge it with business data such
as past maintenance records and contextual data (such as weather and traffic
data).They can then analyse the data to find patterns and root cause for failures-
insights that help them to predict when an equipment will fail and proactively apply
preventive measures to prevent the failure from occurring. The table below depicts
the features available for different stake holders (SAP, Connect Transform and
Reimagine Business in a Hyperconnected Future, 2014):
Stake Holders Activities Performed
Reduce unplanned downtime and manage asset related risks while aligning priorities
Asset Owners
between operations and maintenance
Analyze warranty claims, proactively manage spare parts stocks,assign right technicialns,optimize
Equipment Manufacturers product design and manufacturing
Extension of Enterprise Asset Management & customer service management
Dealers and After Sales Service Optimize service delivery,maximise machine uptime, increase service efficiency, reduce cost

Figure 6- Stakeholders of Predictive Maintenance

SAP Connected Logistics

Built on SAP HANA Cloud Platform, SAP Connected Logistics is planned to allow
logistics hub operators and others to monitor traffic toward and within a hub and
facilitate communication between involved parties including those that do not have a

9
direct business relationship. Furthermore, the software is planned to offer
integration to backend transportation management systems, and lean dispatching
capabilities for logistics service providers that do not have a sophisticated backend
solution in place. SAP Connected Logistics customers can also use the recently
announced AR warehouse picker mobile app that leverages wearable technology
such as smart glass devices for a complete hands free operation, helping to eliminate
the need for handheld scanners.
Main Features include:
Gain real-time transparency into transportation progress
Optimize inbound and hub-internal traffic to accelerate results
Increase goods throughput and optimize infrastructure for maximum
productivity
Automate processes for a huge boost in efficiency
Shrink waiting times and the need for manual monitoring
Reduce emissions and environmental impact.

SAP Connected Manufacturing

For a few decades SAP has invested in building expertise in manufacturing software
on the footprint of SAP ERP, PLM and SCM. Several portfolios in this area includes
SAP Manufacturing Execution (ME), SAP Manufacturing Integration & Intelligence
(MII), SAP Plant Connectivity (PCo) and SAP Visual Enterprise (VE) which brands as a
key player in Manufacturing. The IoT solution is based on the vision of Industry 4.0
which is just not limited to process automation of a single production facility. It
incorporates integration across core functions, from production, materials sourcing,
supply chain, and warehousing all the way to sale of the final product. The five
elements of Industry 4.0 is depicted as follows:

10
 Figure 7- Industry 4.0 Vision

Harley-Davidson Inc. a pioneer in implementing Industry 4.0 is building its new

manufacturing facility where every machine is conceived as a connected device, and
every variable is continuously measured and analyzed. Equipment provides
performance data that the manufacturing system uses to anticipate maintenance
issues before machines break, which minimizes workflow interruptions. Harley can
tell to the nearest tenth of a second how long it takes to install every component on
a motorcycle, and the system alerts floor managers about issues at the individual
component level. Harley even measures the temperature, humidity, and the RPMs of
the ventilation fans in the buildings. All this data is analyzed continuously to identify
factors that will improve efficiency and throughput (SAP. (2014)).

SAP Connected Logistics: It is an innovation in SAP offerings for transportation and

supply chain management that provides new levels of collaboration and transparency
across business entities in a logistics hub. SAP solutions can support the ability to
monitor the movement and location of physical assets and provide transparency
across the ecosystems of business partners involved in these movements which is a
key enabler of location based services and tracking applications used for fleet
management and remote tracking. It merges real time logistics data from the various
parties of logistics hub in one place for efficient communication and improved
orchestration. In return it reduces wait time for pickup and delivery with effective
utilization of logistics infrastructures, resulting in a responsive supply chain system to
cater to real time demand.

11
One such use case where SAP demonstrates the capability of connected logistics is
Hamburg Port Authority (HPA). With an expected increase from 9 million to 25
million containers in 2015 the main challenge of expansion of space is addressed here
by HPA collaborating with SAP and T-Systems to build a logistics business network.
Leveraging TelematicOne Platformof T-Systems by interfacing telematics data to
SAP Logistics Applications, truck drivers receives real time information about
incidents and parking conditions on mobile devices and can plan routes accordingly.
The interconnected logistics network also improves route planning and reduces
transportation costs.
IBM VALUE ADDED SERVICE

IBMs industry specific solutions addresses the business or technology needs of

customers to meet their process or long term strategy perspective. It transforms
customers business models with offerings that include new industry- aware software
applications, strategic consulting and complete outsourcing (ThinkAcademy, 2015).
Combining with IBM Watson IoT Platform clients are looking to:
Rapidly and securely connect devices
Optimize Operations
Enable New Business Models
Engage with Markets in a new way

Figure 8 Industry Transformation with IBM Watson IoT Platform (Gasdia D et al, 2016)

12
Some of these Industry transformation solutions are as follows:

IBM Maximo: Enterprise Asset Management

Extending the foot print of Maximo by leveraging the capabilities of Watson IoT
Platform IBM plans to deliver innovative solutions to add value to customers (Gasdia
D et al, 2016). Capabilities will be built expanding the areas depicted below:

Figure 9 Extending Maximo by IoT capability

Providing Location Based Services by combining geographic and location based

data with other business data critical insights of assets can be gained. Following
features are extended:
Upgrade Spatial to the latest Esri ArcGIS Technology.
Seamless integration between the Maximo Spatial and Linear solutions.
Mapping enhancements to Anywhere.

Benefits

Ability to view all asset types within Maximo on a map.

Increased visibility and access to the data, required for impactful decisions.
More accurate spatial picture of asset condition, improving productivity and
efficiencies.
Opportunity to streamline business processes and customer relationships to
improve business performance and results.
13
 Combining weather data will enhance the
Ability to make informed decisions about day-to-day operations and
maintenance work.
Ability to protect assets and identify potential disruptions to
ensure operating up-time.
Safety of workers and provide improved customer service.

Maximo with Watson Analytics will provide

Data Exploration
Predictive Analysis
Infographic Dashboards
Data Refinement

Partnering with SCHAD will

Connects operational control systems to IBM Maximo for enhanced
condition monitoring.
Enables more efficient preventive maintenance based on asset condition
Empowers mobile employees with access to real time Supervisory Control
and Data Acquisition (SCADA), Programmable Logic Controllers (PLCs), and
Building Management Systems (BMS) information.
Extends the IBM Watson IOT Platform to ingest data from operational
control systems.
A schematic process flow from edge to Maximo using Watson IoT Platform is shown
below.

Figure 10- IoT Watson Platform with Maximo

14
IBM TRIRIGA: Real Estates and Facility Management: IBM TRIRIGA facilities
management solutions feature integrated processes and analytics to create smarter
buildings that can help improve the effectiveness of a distributed workforce, increase
facilities utilization and accelerate workplace configurations. IBM smarter building
solution coupled with Watson IoT Platform collect, consolidate, filter analyze and
interpret data and constantly monitor the life of a building on a customized visual
dashboard for automatic response or action. The solution reduces energy
expenditures, optimize operations and maintenance, maximize space utilizations,
preserves the environment and enhances productivity (IBM, 2015).

IBM PMQ: Predictive Maintenance and Quality: The IBM Predictive Maintenance and
Quality solution helps to monitor, analyse, and report on information gathered from
devices and recommend maintenance activities for those devices (Vrunda Negandhu
et al, 2015). Following tasks can be accomplished using this module:
Predict the failure of a monitored asset which can be fixed to avoid downtime.
Optimize asset maintenance schedules by incorporating predictive insights
and forecasts.
Learn which equipment parameters (measurement types) best predict failure
of a piece of equipment.
Conduct statistical process control (SPC) analysis on different operating
parameters of an asset.
Interactively analyse the frequency distribution histograms based on different
operating parameters of an asset.
Combine the predictive powers of multiple predictive models, each tapping a
variety of equipment and maintenance data in structured, semi-structured,
and unstructured formats.
Find answers and take corrective actions faster by performing a connected
and interactive root cause analysis (RCA) using advanced visualization and
predictive analytic techniques and without the need to switch across multiple
systems. This process reduces the time to value for identifying the problem,
locating its causes and the root cause, and taking corrective action.
Provide better early warning signals for accelerated failure rates discovered
during inspection of production batches.
Provide early warning signals of increasing replacement or wear rates for parts
under warranty. Analyse the reasons for the observed rapid replacement or
wear, such as changes in service conditions, anomalies during manufacturing,
and suboptimal sourcing.
Compute customized health score for all equipment using advanced models to
predict the patterns in sensor data that can lead to equipment failure.
An overview of the solution is given below:

15
 Figure 11 Overview of IBM Predictive maintenance and Quality

Solution components used in IBM Predictive maintenance and Quality are shown in the table below.

Solution Components Software Used Purpose

Integration Bus Layer IBM WebSphere MQ Transforms external events fromsmart sensors into a
IBM Integration Bus database compatible format
Integrates with solution's predictive-model training and
scoring services
Data Layer IBM DB2 Enterprise Server Edition The data layer contains the solution's analytic data store,
an IBM DB2 repository for
received device events, and any recommended
maintenance activities generated in
response to those events. The data layer also stores
critical master data about devices
Analytics Layer IBM SPSS Software Suite being
The monitored.
analytics layer uses models based on historical
information and other inputs & produce
scores that predict the future of an asset and any
maintenance recommendations regarding it

Reporting Layer IBM WebSphere Network Deployment Live dashboards and reports that show the information
IBM HTTP Server captured in the analytic data store
IBM Cognos Business Intelligence
IBM DB2 Client
Integration Bus
Installer Server,Content& Client installer Automated installation software

16
4. Platform evaluation
SAP offers a comprehensive solution portfolio using HANA Cloud Platform to build IoT solutions.
The solution enables intelligence at the edge while automating processes at the core (SAP,
Reimagining business with SAP HANA CLOUD PLATFORM for the Internet of Things, 2015).
Features of the platform:
1. Processing very high volume of data at real time using in-memory technology
2. Ability to process machine, device, sensor and actuator generated data using
SAP*SQL Anywhere with a lightweight database for edge devices.
3. Ability to merge IoT sensor generated data to business transactional data, geospatial
services and unstructured information from social media. Services also includes
remote device, message and API management.
4. Enriching decision making ability by providing predictive and analytical capability.
This includes the following capabilities:
Text Analysis
Geospatial processing
Operational Intelligence
Series Data processing
Graph Engine Modelling
Multitenant Architecture
5. Open Design platform for third party developments and extensibility.

Figure 12- Overview of SAP HCP for IoT

17
 g

Figure 13- Overview of IBM Watson IoT Platform

5. Market Forecast
As analysed by IDC, to date IoT market is supply driven and are played by major traditional
ICT vendors. These vendors are tapping the potential of the market to generate new revenue
sources by complementing existing service and portfolios. However with the expansion of
ecosystem and the thought behind building a service driven connected environment as compared
to equipment driven connected system (M2M) will shift the paradigm to a demand driven
market (Denise Lund et al, 2014).
The main drivers of IoT Market can be shown by the figure below:

Figure 14- Drivers of IoT

However lack of common standard, challenges in global scalability and barriers in expansion of
ecosystem from a perspective of application development, competing priorities and privacy/security
concerns are the main deterrents of market growth in this area.

18
Based on parameters pertaining to inclusion of major components related to IoT viz. connectivity services
,analytics, applications, platforms, security, infrastructure and professional services IDC expects the
worldwide market for IoT solutions to grow at a 20% CAGR from $1.9 Trillion in 2013 to $7.1
Trillion in 2020, This is depicted in the graph below:

Figure 15- IoT Revenue Forecast

6. Conclusion
Developed regions garner the majority of the IoT market, representing approximately 90% of installed units.
Pervasive broadband and a culture of governmental support and innovation are major drivers of IoT. A
comparative evaluation of various vendor capabilities reflects the synergies of building up an ecosystem to
support IoT. This is also helping to shift the philosophy from product offering to service based offering
However this is only marketable and can be brought to an industrial perfection only when all driving factors
explained above progresses in the same pace as today.

7. References
(UniS), F. C. (2013). Internet of Things- Architecture. 25.

Davy, A. (n.d.). Components of a smart device and smart device interactions.

Denise Lund,Carrie MacGillivray,Vernon Turner,Vernon Turner. (2014). Worldwide and Regional Internet of
Things (IoT) 20142020. IDC.

Gasdia D et al. (2016). Maximo and a Roadmap for your IoT Journey. InterConnect 2016 (p. 58). Las
Vegas,Nevada: IBM.

IEC. (2014). Internet of Things:Wireless Sensor Network.

MARINA RUGGIERI, H. N. (2013). Internet of Things:Converging Technologies for Smart Environments and
Integrated Ecosystems. http://www.riverpublishers.com/.

SAP. (2014). Connect Transform and Reimagine Business in a Hyperconnected Future.

19
SAP. (2015). Reimagining business with SAP HANA CLOUD PLATFORM for the Internet of Things. SAP.

ThinkAcademy. (2015). The Internet of Things: What we Offer. IBM.

Vruna Negandhu et al. (2015). IBM Predictive Maintenance and Quality 2.0 Technical Overview. Redbook.

(UniS), F. C. (2013). Internet of Things- Architecture. 25.

Davy, A. (n.d.). Components of a smart device and smart device interactions.

Gasdia D et al. (2016). Maximo and a Roadmap for your IoT Journey. InterConnect 2016 (p. 58). Las
Vegas,Nevada: IBM.

MARINA RUGGIERI, H. N. (2013). Internet of Things:Converging Technologies for Smart Environments and
Integrated Ecosystems. http://www.riverpublishers.com/.

SAP. (2014). Connect Transform and Reimagine Business in a Hyperconnected Future.

SAP. (2015). Reimagining business with SAP HANA CLOUD PLATFORM for the Internet of Things. SAP.

ThinkAcademy. (2015). The Internet of Things: What we Offer. IBM.hhhhhhhhhhh

Vrunda Negandhu et al. (2015). IBM Predictive Maintenance and Quality 2.0 Technical Overview. Redbook.

20