G E T T I N G TO

VO L . 1

INDUSTRY 4.0
w i t h t h e I n t e r n e t o f T h i n gs

Industrial processes in the age of

big data, security breaches,
and IT/OT convergence

WINTER 2016

1
Internet of Things in the Age of

INDUSTRY 4.0

In this issue
1

Internet of Things in the Age of Industry 4.0

Industry 4.0 and the End User

Value and ROI: What Data Can Do for You

Lack of Standardization:
Importance of Open Standards

Risk of Cyber Threats: Multilayer Defense

Legacy Systems Integration:

Gateways Bridge the Divide

Insight from an Industry Researcher

Industrial Solution Examples

Conclusion

10

Resources

Originating as a research
project in 2012 in
Germany, Industry 4.0
was primarily intended
to revive manufacturing
competiveness. Industry
4.0 is a cyber-physical
Irene J. Petrick, system that will drive
Ph.D. is director manufacturing operations
of business
to be smarter, networked,
strategy for
and autonomous.
Intels industrial
and energy
solutions
division

Machines will provide

health and status
information in real time;
workers and flexible robots
will collaborate to create unique products in
small volumes; and software-defined (easily
reprogrammable) industrial systems will
create highly personalized, cost-competitive
products on a mass scale.

The IoT is a key enabler for many

important imperatives in the industrial
sector, such as open-standards-based
automation solutions, information
technology (IT) and operational
technology (OT) convergence, business
intelligence, and dynamic collaboration.

The smart factory of the

future fulfills customized
customer requirements with
state-of-the-art industry
software that links all stages
of the value chain.
Irene J. Petrick, Ph.D

IoT is the
ubiquitous
connection of
people, things,
and machines

A key pillar of Industry 4.0, the Internet

of Things (IoT) uses digital technology to
enhance the collaboration between humans,
machines, things, and enterprise systems.

3 Business Trends Facilitated By the

Internet of Industrial Things
01 INNOVATIVE DIGITAL
BUSINESS MODELS
Unexpected business
opportunities and partnerships
are powered by data analytics.

02 DIGITAL PRODUCTS
AND SERVICES
Suppliers offer cloud-based
services and platforms.

03 VALUE CHAIN
DIGITALIZATION AND
INTEGRATION
Increased connectivity
among stakeholders
improves collaboration and
responsiveness.

Industry 4.0

and the End User

cross North America and Europe,

Frost & Sullivan1 conducted
extensive research with end users,
mostly small- to medium-sized
companies, which constitute the bulk of the
globes manufacturing footprint. Companies
had a wide range of expectations, including
those listed on the right.

IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

What Data Can

Do for You

2 Industry 4.0 and

3 Value and ROI:

4 Lack of
Standardization:

Importance of

Open Standards
5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems
Integration:

Gateways Bridge

the Divide
7 Insight from

an Industry
Researcher

However, companies are generally unclear

about the value and internal investment
for the IoT solutions being promoted at
this time. They wondered how the current
lack of standardization would impede the
progression to Industry 4.0. They also wanted
to know how suppliers can help end users
protect their plants and infrastructure from
cyber threats that have become even more
pronounced in an IoT age. Last, but not least,
end users asked how suppliers could help
integrate their legacy systems in order to
move them from where theyve been for the
last two decades.
Companies were not apprehensive
about technology and what could be done,
but rather about the financial feasibility of
this transition.

8 Industrial Solution
Examples
9 Conclusion
10 Resources

1. Internet of Things in the Age of Industry 4.0 webinar with Frost & Sullivan Program Manager
Karthik Sundaram.

6 ways

INDUSTRY 4.0
IS EXPECTED TO
BRING BENEFITS

1
2
3
4
5
6

Digitalization
Increase level of
automation

Reduced TCO
Lower operations
costs (e.g., predictive
maintenance)

New Service
Models
Pursue new
opportunities

Mass
Personalization
Give customers what
they want

Sustainable
Production
Practice social
responsibility

Agile Supply Chain

Keep critical supplier
informed at all times

End-User Apprehensions
Value and ROI

Risk of C
 yber Threats

Legacy Systems Integration

The Lack of Standardization

WHAT DATA CAN

DO FOR YOU
VALUE AND ROI

Learn how an IoT solution at an Intel

manufacturing facility produces
operational efficiencies and cost savings.

IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

2 Industry 4.0 and

3 Value and ROI:

What Data Can

Do for You

4 Lack of
Standardization:

Importance of

Open Standards
5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems
Integration:

Gateways Bridge

the Divide
7 Insight from

an Industry
Researcher

HERE ARE A FEW

E X A M P L E S O F H OW
A N I OT S O LU T I O N
CA N B E N E F I T YO U

Improve Yields
Data provides insights into
equipment performance.
At Intel, defective testers
can wrongly categorize
good units as bad, which
negatively impacts
operation costs. To
address this problem,
Intels IoT solution is able
to detect defective tester
components before they fail
so they can be repaired or
replaced before the testers
incorrectly sort the units.
The solutions analytics
capabilities can predict up
to 90 percent of potential
tester component failures,
which is much better than
the factorys online process
control system.

Yields losses
reduced by

25%

Reduce the Cost

of Spares
Intels IoT solution is the
foundation for predictive
maintenance program
that saves on the cost of
spares. It enabled Intel
to switch from routine
preventive maintenance
with scheduled part
replacement (e.g., air and
water filters) to less costly
predictive maintenance
that continuously monitors
systems to determine when
service is really needed.

Spare parts
costs cut by

20%

Intel is able to save on the

cost of spares by replacing
parts when needed instead
of replacing them regularly
whether necessary or not
on a prescribed schedule.

8 Industrial Solution
Examples
9 Conclusion
10 Resources

Automated
classification of
defects completed

10X

faster than manual

inspection

Higher Throughput
Image analytics can be
used to shorten product
screening and test times.
At Intel, manual inspection
of marginal units is
cumbersome and can
sometimes take many hours
to separate true reject
units from marginal ones.
Automating this process,
Intels IoT solution records
an image of each product
on the assembly line and
resizes, crops, and converts
the image into grayscale
before converting each
pixel to binary. This data is
fed into various machinelearning algorithms to
distinguish true rejects from
marginal rejects.
Read the full story

2. Intel white paper, Optimizing Manufacturing with the Internet of Things, September 2014.

4
LACK OF STANDARDIZATION

The importance of open standards

Many industrial settings are held back
by islands of sensors and machines and
silos of data. A major contributing factor is
that industrial devices are often based on
proprietary designs that use nonstandard
communications protocols, which keep them
isolated. In fact, industrial settings with a large
variety of proprietary, fixed-function devices
tend to be rather inflexible.

IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

What Data Can

Do for You

2 Industry 4.0 and

3 Value and ROI:
4 Lack of

Standardization:

Importance of

Open Standards

5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems
Integration:

Gateways Bridge

the Divide

Over time, the IoT is expected to compel

companies to move away from proprietary
to open standards-based industrial solutions
that promote easy connectivity and
interoperability between devices. Moreover,
companies will be able to choose from a broad
array of solutions offered by an ever-growing
ecosystem of IoT vendors, thus greatly
expanding their options.
The vendors who provide public APIs and
support open standards will succeed in the
long run. Likewise, the vendors who try to trap
consumers behind proprietary software and
non-interoperable products will eventually fail,
to everyones detriment, according to Mike
Loukides, vice president of content strategy
for OReilly Media, Inc.3

7 Insight from

an Industry
Researcher
8 Industrial Solution
Examples
9 Conclusion
10 Resources

3. Mike Loukides, Toward an open Internet of Things, April 21, 2014.

4. iiconsortium.org.
5. openinterconnect.org.

Two organizations focused on open standards

Today, Intel is working to make the IoT more open and cohesive by leading the creation of two
important consortia to promote a standards-based and inclusive IoT development environment.

Industrial Internet Consortium (IIC)4

is a not-for-profit group with an open

membership that will take the lead in
establishing interoperability across
various industrial environments for a
more connected world.

Open Interconnect Consortium (OIC) 5

seeks to define a common communication

framework based on industry standard
technologies to wirelessly connect and
intelligently manage the flow of information
among devices, regardless of form factor,
operating system, or service provider.

Standards Increase Interoperability

Communication Standard

Enables Plug and Play

5
RISK OF CYBER THREATS

MULTILAYER

DEFENSE
IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

What Data Can

Do for You

2 Industry 4.0 and

3 Value and ROI:

4 Lack of
Standardization:

Importance of

Open Standards
5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems

Integration:

Gateways Bridge

the Divide

7 Insight from

an Industry
Researcher

8 Industrial Solution
Examples
9 Conclusion
10 Resources

The threat of attack from

Stuxnet, Heartbleed, and
Havex, along with the malware
du jour, is keeping industrial
CIOs up at night. Protecting
industrial environments and
critical infrastructure against
cyber attack is ever more
difficult, due to the complexity
and diversity of equipment.
To cover all the bases, its
essential to implement a
multilayer approach.

HERE ARE SOME

O F T H E WAYS YO U
CA N P R OT ECT
I N D U ST R I A L A S S E TS

Platform Security
Reduce platform
vulnerabilities from bootup, to normal operation,
to shutdown:
Prevent unauthorized
changes to boot/
initialization software
Use device authentication
with an identity protection
scheme, like TPM
Separate security
management functions
from operational
applications using
virtualization

Runtime Security
Protect data at rest, in
motion, and in use:
Add a virtualized
firewall on the device for
additional separation
between applications
Implement malware
protection, such as
whitelisting or signaturebased detection
Encrypt and authenticate
communication sessions
between applications

Monitor/Management
Functions
Incorporate device
and network security
intelligence:
Deploy security
information and event
management (SIEM)
software
Visualize, investigate, and
respond to suspicious
behavior
Employ mutual
authentication and
encrypted tunnels

6
LEGACY SYSTEMS INTEGRATION

GATEWAYS
BRIDGE THE DIVIDE

oday, 85 percent of existing industrial

embedded devices are unconnected.6
The number of devices connecting
to the Internet in 2015 is expected to
be 15 billion, and that number is expected to
grow to 50 billion by 2020.6

IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

What Data Can

Do for You

2 Industry 4.0 and

3 Value and ROI:
4 Lack of

Standardization:

Importance of

Open Standards

Intel IoT Gateways make it easier to securely

connect legacy devices (and new systems)
to the cloud. They enable OEMs and ODMs
to develop IoT solutions that seamlessly
and securely transmit data between edge
devices and the cloud, and make it easier
for businesses to manage data. Plus, when
its time for businesses to expand their
IoT footprint, Intel IoT Gateways have the
performance headroom needed for costeffective growth.

5 Risk of

Cyber Threats:
Multilayer Defense

IOT GATEWAYS
CAN HELP

1
2
3
4

Gateways are ideally

located to support
Plug and Play setup
of edge devices
Protocol
abstraction
to increase
interoperability

an Industry
Researcher

8 Industrial Solution
Examples

Internet/Cloud

Big Data

Gateways
perform protocol
translation and data
normalization

Gateway
LAN

Fast, closedloop response to

improve operations
Gateways have the
computing power to
run data analytics
software locally

Gateways implement
robust hardware
and software-level
protection

7 Insight from

Connecting Legacy
Devices to the Cloud

Automated
discovery and
provisioning
of edge devices to
ease deployment

World-class
security
to safeguard
unprotected
edge devices

6 Legacy Systems
Integration:

Gateways Bridge

the Divide

9 Conclusion
10 Resources

4 ways

Devices

Browneld

Sensor Hub
Devices

Greeneld
6. IMS research

Sensor
Hub

INSIGHT
FROM AN INDUSTRY

ON BUSINESS
OPPORTUNITIES

RESEARCHER
WHATS THE INTEREST LEVEL IN
INDUSTRY 4.0?

IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

What Data Can

Do for You

2 Industry 4.0 and

3 Value and ROI:

Karthik
Sundaram
is a program
manager for
the Internet
of Industrial
Things at
Frost &
Sullivan

Most end users are quite enthused about Industry

4.0 because they understand they cannot continue
to do business the way they have been doing
all along, considering the growing competition
coming from many different parts of the globe.

Does Industry 4.0

face any major
roadblocks?

When it comes to taking the

theory into practice, key
questions remain, especially
with regard to return on
investment.

On supplier
business models

Major product markets in

the industry will undergo a
structural transformation,
with service becoming the
go-to market strategy.

Frost & Sullivan estimates a

six- to eight-year time frame
before Industry 4.0 processes
mark their presence in the
global manufacturing space.

ON RETURN ON INVESTMENT

Suppliers and end users who try to understand the opportunities from IoT through
the lens of Industry 4.0 will possibly find a stronger financial justification.

5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems
Integration:

Gateways Bridge

the Divide
7 Insight from

an Industry
Researcher
8 Industrial Solution
Examples
9 Conclusion
10 Resources

How long will it take?

4 Lack of
Standardization:

Importance of

Open Standards

End users in the small- and

medium-sized enterprise
space hold the largest
potential for Industry 4.0
solution providers.

7. Internet of Things in the Age of Industry 4.0 webinar with Frost & Sullivan Program Manager
Karthik Sundaram.

Industrial
Solutions

EXAMPLES IN BRIEF
Many companies are already providing IoT
solutions in support of Industry 4.0and
using data in new ways to improve ROI.
Here is a brief sampling of
whats being done.
BECKHOFF
IN THIS ISSUE

1 Internet of Things

in the Age of
Industry 4.0

the End User

What Data Can

Do for You

2 Industry 4.0 and

3 Value and ROI:

4 Lack of
Standardization:

Importance of

Open Standards
5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems

Integration:

Gateways Bridge

the Divide

7 Insight from

an Industry
Researcher
8 Industrial Solution
Examples
9 Conclusion
10 Resources

A leading supplier of industrial automation technology.

Challenge: Implement real-time tracking throughout a
manufacturing plant.
Solution: Kitchen manufacturer Nobilia increased its production
flexibility using Beckhoff automation technology. The IoT solution
made manufacturing processes data-driven, thus minimizing the
need for human intervention. As a result, the company is a lowcost producer of an enormous number of fitted custom kitchens,
with over 600,000 manufactured per year in two plants.
Key Benefits
Supports lot sizes of one, per the Industry 4.0 approach
Improves coordination of suppliers, production, and shipping
Increases product traceability
Enables faster problem resolution
Learn more about this IoT solution

See the complete solution blueprints

NATIONAL INSTRUMENTS (NI)

A global leader in test, measurement, and control solutions.
Challenge: Boost throughput, improve efficiency, and reduce downtime.
Solution: NIs IoT solution analyzes large volumes of data to help improve decision making
and operations in industrial settings. It supports all the necessary connectivity and data
analytics while meeting requirements of latency, synchronization, and reliability. With the NI
platform, engineers perform data analysis and execute control commands anywhere analog
data is converted to a digital signalotherwise known as the edge.
Key Benefits
Analyzes vast amounts of data
Aids in making meaningful business decisions
Improves equipment uptime
Takes action in real time

NEXCOM
A supplier of intelligent systems for industrial computing.
Challenge: Increase operations efficiency and reduce maintenance costs.
Solution: Given the fact that different communication protocols are used from factory to
factory, the NEXCOM NIFE* 100 IoT Controller can interface to different types of fieldbus
modules and support many fieldbus protocols, including PROFINET*, PROFIBUS*, EtherNet*/
IP, DeviceNet*, EtherCAT*, CANopen*, and Modbus*. The controller communicates
downstream to manufacturing modules over various fieldbus protocols and upstream to an
on-premise SCADA system or to the cloud (or data center) via LAN, Wi-Fi, or 3G/4G networks.
Key Benefits

Reduces TCO by lowering maintenance effort and energy usage

Improves production line performance by enabling big data analytics
Provides an easy-to-integrate device monitoring and control system
Supports remote diagnosis and recovery for higher equipment availability

FUSHENG INDUSTRIAL
A global air compressor manufacturer.
Challenge: Reduce air compressor-related downtime.
Solution: Compressors are ubiquitous in modern day life, from visiting a dentists office to
generating electrical power. As a result, Fushengs customers place a high level of reliance on
their machines, expecting them to run efficiently and without failure. Every air compressor
manufactured by Fusheng will integrate Intel chips and IoT gateway solutions that help
predict and detect maintenance needs.
Key Benefits

Detects equipment malfunction, energy consumption, and component deterioration

Provides equipment performance reports and recommendations electronically
Improves service delivery by allowing Fusheng to remotely monitor their machines
Allows Fushengs customers to realize better operational efficiencies

CONCLUSION

Intel is committed to
bringing the scalability,
manageability, security,
and reliability inherent in
its technology offerings
to solutions for the IoT
and Industry 4.0. Our
long-standing expertise
in adapting technologies
to vertical requirements,
combined with our
innovation in big data
analytics and IoT, is helping
to shape a standardized and
interoperable ecosystem.

Connected, intelligent
industrial systems
are bringing both
challenges and
opportunities to the
pursuit of Industry 4.0. IoT-based
solutions are now available to help
you gain advantages from

integrating data analytics
technologies and future
proofing your industrial

assets.

IN THIS ISSUE

Internet of Things
in the Age of
Industry 4.0

2 Industry 4.0 and

the End User

3 Value and ROI:

What Data Can

Do for You

4 Lack of
Standardization:

Importance of

Open Standards
5 Risk of

Cyber Threats:
Multilayer Defense

6 Legacy Systems
Integration:

Gateways Bridge

the Divide
7 Insight from

an Industry
Researcher
8 Industrial Solution
Examples
9 Conclusion
10 Resources

Intel IoT Gateway

Intel IoT Gateways connect to legacy and
new systems, and enable seamless and
secure data flow between edge devices and
the cloud. The Intel IoT Gateway integrates
technologies and protocols to enable networking, embedded
control, enterprise-grade security, and easy manageability,
while supporting software applications at the edge.

SPONSORED BY

10

Resources
Big data and IoT are enabling industrial process
transformation. Intel and its ecosystem
partners deliver industrial solutions optimized
for scalable Intel architecture, designed to
reliably interoperate with the entire industrial
environment.
Intel Internet of Things Solutions Alliance
Members of the Intel Internet of Things
Solutions Alliance provide the hardware,
software, firmware, tools, and systems
integration that developers need to take a
leading role in IoT. Learn more
Intel IoT Gateway Development Kits
Intel IoT Gateway development kits enable
solution providers to quickly develop, prototype,
and deploy intelligent gateways. Available for
purchase from several vendors, the kits also
maintain interoperability between new intelligent
infrastructure and legacy systems, including
sensors and data center servers. Learn more
For more information about Intel
solutions for industrial automation,
visit intel.com/industrial.

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