Project Report

On
Internet of Things (IoT)
Business Computing (Term 1)

Submitted By:
Submitted To:
Ankit Purwar PGP08073
Dr. Praveen Ranjan Srivastava
Anuj Garg PGP08074

Jyotiranjan Raj PGP09090

Nishant Garg PGP08101

Palash Gupta PGP08102

Prakhar Chhabra PGP08105

S.No Content

1 Executive Summary

2 Applying Code Halo Thinking

3 How IoT enables informed

manufacturing

4 IoT : The Promise and Potential

5 Overcoming design challenges

6 Moving forward with IoT

Executive Summary
Internet of Thongs (IoT) has made it possible for connected devices to interact with each other
and this trend will grow at a fast pace in the coming future. Such is the power of IoT that it gives
us unparalleled opportunities across the complete industry and its processes. Leaders across
the industry have already started investing in IoT and it is reaping immense benefits for them.
There are numerous examples from the industries itself like Lido Stone Work, which used IoT to
automate its streamlined solutions and have generated an extra revenue of 70 %, also the
productivity has increased by 30%. Several logistics companies along with various
manufacturing units who deal with space automotive are implementing IoT to create
automated and seamless transactions. Designing of new business models that have the
capabilities to support the IoT requires the firms to take a multi – prolonged approach which
can be started using a business model and then it can use case to bring a multitude of
technologies together. In order to automate the firms with IoT, they need to deploy sensors in
the devices so that the devices can communicate with each other and implant advanced
analytic technology to distill actionable insights. Accomplishing this task requires a completely
different design approach, one that embraces design thinking. Thus the following report will
present some essentials of the design approach needed to optimize IoT. Various organizations
need to align their IoT based solutions to create a superior experience and drive values for
customers. Since the approach and applications need to be specific and highly targeted, thus
this report will outlines industry and function-specific possibilities for IoT.

Applying Code Halo Thinking

The IoT represents a scenario where every “object” or “thing” is embedded with a sensor and
has the capability of automatically communicating its state with other automated systems or
objects within the environment. Each object is a representation of a node in a virtual network
which continuously transmits a large value of data about itself and its surroundings – we can
call this digital footprints as “Code Halo”. Products that are built with the capabilities to support
IoT are often referred to the new breed of connected products, an example can be a smart grid,
networked and connected factories and connected cars all of which represent variations of the
same underlying concept. The IoT will include a heart monitor implant in a person which will
continuously monitors the patient’s health and would alerts the care providers in case of any
emergency. Other examples can include an automobile with built in sensors that can send an
alert to the owner’s mobile phone when tire pressure gets low or precision farming
equipment’s that can adjust the way each part of the field is ploughed, or an home automation
system which adjusts cooling and lighting systems based on the level of activity sensed from the
humans.

According to a recent report from Gartner, “the installed base of things will grow to 26 billion
units in 2020, a near 30-fold increase from 0.9 billion units in 2009”. This would eclipses the
growth of consumer mobile and computing devices which is illustrated in Figure 1. Importantly,
this means that the Code Halos products with IoT surrounding would offer organizations
unparalleled access and insight into the product usage capabilities. Thus the anticipated growth
of “things” and “objects” over the next few years coupled along with the expected cost
reduction due to addition of the basic IoT capability to consumer products would mean that the
majority of devices would be interconnected. We would see the organizations using online
customization tools that will quote generation automatically to configure and sell products.
One of the clients has allowed customers to configure car designs and arrive at estimated
quotes themselves.

This information would be transmitted to localized production plants which would help to
optimize the supply chain and drive cost-effective procurement which would provide real-time
visibility of delivery dates. In the landscape, the physical world is highly intertwined with the
information world and compliments of the Internet Protocol (IP) address scheme which with
every object across the value chain of sharing and receiving context of a specific information to
perform a particular task. Some of the above isn’t necessarily new since many organizations
have used some sensors before to capture information for a better part of the last decade.
What will be different is that the high level of device interoperability along with the potential
for information to traverse multiple platforms, and the emergence of technology that permits
companies to manage large volumes of data and uncover deep, hidden patterns.
One of the manufacturing organization allows customers to configure car designs and arrive at
estimated quotes. This information will be transmitted to localized production plants to

 Optimize the supply chain

 Drive cost-effective procurement
 Provide real-time visibility of delivery date

The physical world is highly intertwined with the information world, compliments of the
Internet Protocol address scheme, with every object across the value chain sharing and
receiving context-specific information for performing a particular task.

Some of the above isn’t necessarily new — many organizations have used sensors to capture
information for a better part of the last decade. What is different, however, is the high level of
device interoperability, the potential for information to traverse multiple platforms, and the
emergence of technology that permits companies to manage large volumes of data and
uncover deep, hidden patterns.
INTERNET OF THINGS (IOT)
The internet of things represents a scenario in which every object or “thing” is embedded with
a sensor and is capable of automatically communicating its state with other objects and
automated systems within the environment. Each object represents a node in a virtual network,
continuously transmitting a large volume of data about itself and its

INFORMED MANUFACTURING is when all relevant information is made available in the required
form across the manufacturing supply chain to all stake holders.

We are in the fourth stage of industrial revolution.

The first stage, Stage 1 came in in the early 1800s when the steam engine was invented and
most of the manual work was mechanized.

Stage 2 was a gift of Henry Ford who was responsible for the advent of mass production
techniques in the early 1900s.

Stage 3 took hold in the 1970s with the advent of electronic systems and computer
technologies, which automated manufacturing processes.

We are now heading toward the fourth stage. Factories are already beginning to appear in
which everyone from plant managers to senior leaders shares information and accesses
analytics to improve operational efficiencies. The explosion of social, mobile, analytics and
cloud technologies is impacting manufacturing.

Nanotechnology has enabled pinhead-sized sensors to be embedded into products, and

software has emerged to simulate and model different manufacturing processes to create more
adaptable production lines.
THE FOUR ELEMENTS of manufacturing

1) Product to INFORMED PRODUCTS

Sensors and supporting software applications work together to obtain and share real-time
information. “Informed products” will enable machines to take autonomous actions without or
with minimum human intervention.

Whether this will impact the skilled and semi-skilled job market of India and the world is still a
concern and growing debate.

Informed products are using embedded sensors and can provide history of manufacturing and
service life making them uniquely identifiable and locatable at all times. Soon products will
question and answer themselves like when was it made or where should it get processed and
delivered.

Basically, informed products will be able to control the individual stages of their production,
semi-autonomously.

2) People to INFORMED PEOPLE

All the value-chain participants need to make informed decisions with very short notice which
they can do by obtaining and sharing real-time information.

Informed people will leverage intra- and inter-enterprise social technologies and mobility tools
to link individuals (suppliers, designers, dealers, customers, etc.) across the globe to propel
deeper collaboration and information sharing.

3) Process to INFORMED PROCESS

Suppliers through customers need to share information across the entire value chain. These
processes interconnect and harmonize individual stages of manufacturing production to
provide an adaptable value chain and increased plant-wide efficiency.
To autonomously correct production activities, product diagnostics data and product
performance data are directly infused into manufacturing operations.

4) Infrastructure to INFORMED INFRASTRUCTURE

Using a feedback loop of data machines are connected to one another and respond intelligently
to the changes in its environment thus achieving improved performance

The system can monitor, measure, analyse, communicate and act, based on the plethora of
information within its operational environment.

Informed infrastructure provides the ability to integrate data across multiple plants and make it
available over the Web or mobile devices. Through this infrastructure, users can understand
and compare the performance of various factories and equipment across geographies and
functions.

EXAMPLES:

Connected supply chain by connecting the production line to suppliers, all stakeholders can
understand interdependencies. IoT systems can enable location tracking, remote inventory
level monitoring and automatic reporting of material consumption as they move through the
supply chain. Access to predictive analytics based on real-time data helps manufacturers
identify issues before they happen, lower inventory costs and potentially reduce capital
requirements.

Dell’s supply chain orchestration, spanning from customers to suppliers. On the customer side,
Dell ensures that all its employees are engaged with customers to help them and the best
customized choice that is their need.

Transportation and logistics: Traditionally, logistics and distribution networks are based
on a combination of material and information own between various supply chain participants.
The network contains various nodes, and all of the nodes require manual intervention for
decisions, actions and issue resolution. Now products have sensors and embedded tags. As they
move across the supply chain, their Code Halos interact with various partner and in-house
systems in warehouses and distribution centres.

HOW WE CAN APPLY IOT

 Analyse the architecture of the sensors.
 Create an IoT vision as per the need of the organization
 Initiate engagement and employee communication
 Focus on application development and infrastructure
 Rapid deployment, monitoring and modification planning
 Developing product features and embedded sensors
IoT: The Promise and Potential
The usability of connected devices is not limited to certain industry segments or value chain
processes; rather, this concept can be used across industries, especially in the manufacturing
and the logistics domain.

Following are the possibilities where IoT can be implemented:

Automotive: The new car models that are coming off late are generating a lot of data when in
operation. This data can be used for automatic vehicle-to-vehicle communication as well as
vehicle-to-infrastructure communication to improve the overall safety on roads and better the
driving experience.

Example: Project SARTRE (safe road trains for the environment). This is a concept of safe
platooning of vehicles

Connected Supply Chain: IoT can help understand the interdependencies of stakeholders in
the supply chain by connecting production line to all the stakeholders. Through predictive
analytics based on real-time data, manufacturers can identify the various potential issues,
lower input costs and also reduce fixed costs.
Example: Dell’s supply chain orchestration – Dell ensures that all the employees are engaged in
serving their customers and helping them find the right product fit for them. The orders are
then given to manufacturing facility, which is IoT enabled and is able to produce 20,000 odd
custom-built products.

Plant floor control automation: IoT can help automate various processes related to top
floor and shop floor and reduce human intervention required as of now. This can be done by
interconnecting top floor and shop floor; the operating parameters such as temperature,
pressure or alignment can be measured at process level using sensors and sent to a controller.
Any deviation beyond permissible limits then can be dealt by sending instructions to the
engineers automatically. IoT makes these feedback run in near real-time, thus eliminating the
need for human intervention.

• Remote monitoring and management of critical assets (see Figure 7, next page): While
remote asset monitoring has been around for decades, the ability to issue corrective commands
is rapidly maturing. Consequently, equipment suppliers have a more direct role in the
operations and maintenance of manufacturing plants if they embrace new service offerings and
business models. Models can pivot around hours of operation rather than equipment sale, and
the buyer gets to use the equipment in an “as-a-service” offering. This will create entirely new
and very closely linked business relationships between manufacturers and their suppliers. A
leading industry example is GE’s maintenance cost per (flight) hour model for its aviation
business.

Remote monitoring and management of critical assets: There have been asset
monitoring systems for quite some time but the ability to issue corrective commands is now
getting more robust. Now, the equipment suppliers can have a direct role in the operation of
the manufacturing facilities if admire the new products that are in the offing. The models can
also be designed around hours of operation instead of equipment sales.

Example: For aviation business, GE has maintenance cost per (flight) hour model
Energy management and resource optimization: There are several initiatives to reduce
energy consumption at the manufacturing plants, but IoT systems can create additional cost
savings for manufacturers. IoT also offers integrated weather data prediction to help
manufacturers understand expenses and plan energy usage accordingly. The concepts of IoT
can also be extended into home management systems.

Example: HVAC – This can be used for above applications. Google has recently acquired NEST
which provides IoT enabled services in this domain.

Proactive Management: Though manufacturers accept thr concept of preventive and

condition-based monitoring, they are still in the process of implementation of these priojects.
The company can easily monitor the sensors for the ranges for various parameters they need to
operate in and prevent malfunctions.

Transportation and logistics: Transportation and Logistics are network of material and
information flow between various players across the value chain. These networks have nodes
which require manual interventions. If products have sensors and embedded tags, the flow of
these products can become completely autonomous. This can become possible as when they
move across the supply chain, their RFID tags can interact with various in-house systems in
distribution centres.

Energy: Energy management can be done with the help of IoT technologies. During the high
peak hours, IoT can help connect various devices directly so that the overloads can be
prevented and the total cost of energy generation and consumption can be optimized. Smart
networks can communicate with devices when energy demand is high and track how much
electricity is used and when to reduce demand during high peak periods.

Example: Reduction of power consumption by electric vehicles during peak hours

Overcoming design challenges
IoT presents a great opportunity for all industry verticals as well as the processes. Particularly
for the manufacturing industry, it can definitely improve the efficiency through automated
decision making process. But there are certain challenges that need to be addressed
1. Standardization: -
IoT ecosystem is created generally for specific purpose and offer limited applications,
and the silos which are operated by numerous networks serve different purposes.
Moving ahead, the interfaces should be standardized and solutions to be made
interoperable at various levels (e.g., communication and service levels) and across
various platforms.
This helps to promote integration, proper implementation and scalability.

2. Security Issues: -
The data associated with IoT adoption is unstructured and unorganized, hence security
and privacy in this environment becomes more critical.
Devices therefore are needed to be secured on the secured, as it will contain sensitive
and confidential organizational data. This will make users feel confident being in an IoT
ecosystem.

3. Infrastructure: -
At assembly level, IoT ecosystem requires complex interaction between hardware and
software, such as those between sensors and the other softwares. With the huge
amount of data comes the problem of data storage as well as retrieval. It then requires
better infrastructure and much more capacity for so much data being captured and
transferred. Other problems include the data type – large file data consisting images and
videos – is accessed sequentially, and the one created by small sensors be accessed
randomly.

4. Analytics: -
Even after storing the data it has to be converted into some actionable insights which is
the biggest challenge for the manfacturers.

5. Flexibility: -
Monitoring systems need to be modified continuously and maintained timely. New
capabilities will then be added to the existing systems and will be maintained if there
are requirement changes
Moving Ahead with IoT
The McKinsey Global Institute recently estimated that the Internet of Things could generate $4
trillion to $11 trillion in value globally in 2025. Manufacturers are currently collecting and using
data generated by smart sensors to enhance manufacturing processes, but what will they do
with that data. They need to deploy devices to measure this data. Different tools can be used to
analyze it and yield results which can be put into action. For keeping up with the competitors it
has become a requisite for manufacturers to deploy such devices.

To move up the IoT ladder, manufacturing companies must know that they cannot build a
sophisticated and systemic IoT ecosystem overnight. They need to first think it as an “Internet
of Their Things” and focus on the right areas of the business that provide quick and tangible
return. Strategically, manufacturers are using IoT to increase revenues and improve
productivity. For IoT adoption following are the things a manufacturing company should
consider: -

Starting with existing IT assets and building upon them: -

Integrating sensors and tags with legacy systems demands a flexible or “Plug-and-play”
architecture therefore the IoT building blocks – sensors, microprocessors have to be coupled
with networking solutions.

Overwhelming data: -

IoT will generate 400 zettabytes of data in a year, and greater than 50% of analytics will use
data streams from these connected devices. The companies have to leverage hybrid cloud
because the existing data centers won’t support the data generated from IoT. There is no need
to analyze all the IoT data instead prioritize the data that has impact on your business. This
helps you to identify new revenue opportunities and improve operational efficiencies.

Need of specific talent: -

To use IoT more extensively there is a need for IoT skills and knowledge among the employees.
This can be achieved with the existing employees or could be done by partnering with an IoT
service provider. This will not only initiate the IoT journey but will also help in upskilling the
existing staff through trainings, workshops, etc.

The Catch or the risks: -

Immaturity of IoT standards and regulations obstruct the use of IoT. Suppose, if thousands of
connected devices from smart buildings, smart meters, supply chain and transportation, are
brought in the enterprise. Once these devices are part of enterprise it will impact the
architecture and would require compliance to different standards and regulation than
traditional ones.

Rapid deployment, monitoring and planning: -

Agile and flexible deployment with small, step-by-step implementations will tackle the risks.

Examples:

1) ROCKWELL with MICROSOFT AZURE IoT created a solution that collects, integrates, and
organizes sensor data from remote equipment across global supply chains to support real-time
insight generation, predictive analytics, and preventive maintenance.

2) JLR came up with next generation IVI system that utilizes Best-in-Class features which can be
reused and adapted for all upcoming models. It is now easy to deliver connected infotainment
software over the air.