Course : MGMT8047 - Advanced Topics in MIS

Industry 4.0
Session 03

Compiled by:
D2307 – Dr. Gunawan Wang, MM, [Link], MPd
References
 Applications of IoT

"The Ultimate Goal of IOT is to Automate Human Life."

 Topics of Discussion
• What is Industry 4.0?
• Industry 4.0 Design Principle.
• Building Blocks of Industry 4.0.
• Overview IoT Technology
 Information Security
Office of Budget and Finance
Education – Partnership –
Solutions
 Information Security
Office of Budget and Finance
Education – Partnership –
Solutions
 Four Main Characteristics of
Industry 4.0
• Vertical integration of smart production systems
(Smart factories), which are essentially the core of
Industry 4.0.
• Horizontal integration through global value chain
networks. Integration will facilitate the establishment
and maintenance of networks that create and add value.
• Through-engineering across the entire value chain.
Industry 4.0 covers both the production process and the
entire lifecycle of the product.
• Acceleration of manufacturing. Business operations,
particularly those involved in manufacturing, make use of
many technologies, most are not innovative or expensive,
and most of them already exist.
 Benefits of Industry 4.0 to
SME (1)
• Increased competitiveness of businesses: It can
provide a level playing field through cooperation
and a confederation of firms.
• Increased productivity: With the increase in
efficiencies, lowering of operational costs that will
lead to increased profits.
• Increased revenue: The manufacturing sector
will reap the benefit of an increase in its revenues.
Industry 4.0 is one of the major drivers for the
growth of revenue levels and government value-
added GDP, even though its implementation will
also require significant investment.
 Benefits of Industry 4.0 to
SME (2)
• Increased employment opportunities, enhanced
human and IT resources management: Employment
rates will also increase as the demand for talent and
workers, particularly in the fields of engineering, data
scientists, and mechanical technical work, will increase.
• Optimization of manufacturing processes: Integrated
IT systems with OT systems is always problematic but
within the production process, merging the systems will
certainly make the most out of the resources at hand.
• Development of exponential technologies: Industry
4.0 will provide a platform for the basis of further
innovation with developing technologies.
 Benefits of Industry 4.0 to
SME (3)
• Delivery of better customer service:
Industry 4.0 monitoring and feedback
mechanisms rely on the industrial concepts
and methods of real time.
 Industry 4.0: Design
Principles
• Interoperability.
• Virtualisation.
• Decentralisation.
• Real-Time Capability.
• Service Orientation.
• Modularity.
ISA 95 pyramid with Information and
Operational Technology domains
Implementation of Industry 4.0
with IT realisation
Implementation of Industry 4.0 with
fusion of IT and OT (IIoT Application)
 Building Blocks of Industry
4.0 (1)
• Big Data and Analytics:
– Connection, which pertains to sensors and
networks.
– Cloud computing.
– Cyber, which involves model and memory.
– Content/context.
– Community, or sharing and collaboration
between and among stakeholders.
– Customization
• Autonomous Robot.
• Simulation.
 Building Blocks of Industry 4.0
(2)
• Horizontal and Vertical System Integration.
• The Industrial Internet of Things (IIoT).
• Cyber Security.
• The Cloud.
• Addictive Manufacturing. Additive manufacturing such
as 3D printing enables manufacturers to come up with
prototypes and proof of concept designs, which greatly
reduces design time and effort. Additive manufacturing
also enables production of small batches of customized
products that offer more value to customers or end
users, while reducing cost and time inefficiencies for the
manufacturer.
• Augmented Reality.
 Building Blocks of Industry
4.0 (3)
• Industry 4.0 Reference Architecture.
architectural model is that it should be a general
model that each company can deploy to enable
one common approach to data protocols and
structures, machine, devices, and
communication interfaces.
• Smart Manufacturing. merge the digital and
analogue worlds by building connectivity and
orchestration to provide an enhanced processes
that delivers goods smoothly and consistently.
• Equipment.
• Redefine Workforce.
 Building Blocks of Industry 4.0
(4)
• Products.
• Business Processes.
• Optimise the Supply Chain.
• Customer.
• Customer Experience.
Adopt Smart Architecture
and Technology

Sensor-
Industrial
driven
Analytics
Computing

Transform
Intelligenc
the
e Machine
Workforce
 Trend of IoT Scenarios (1)
• Building maintenance process, of integrating IPv6
with standard IoT building control devices, mobile
phones, cloud services, and building management
applications.
• User comfort in the smart (intelligent) office, thru
the use of mobile phones, NFC, or RFID, and the
control management system will adjust the
environment to the user’s pre-set or machine
learned preferences, such as temperature or light
levels that provide the user with a welcoming
ambience.
• Energy saving and awareness. the use of IPv6, with a
focus on energy management and user awareness.
 Trend of IoT Scenarios (2)
• Entailed safety and security, and focused on
intrusion detection and fire-detection. System
learns of a security issue due to presence
detectors, which notify the system of someone
being in a room that is supposedly empty, or
magnetic switches on windows or doors trigger
the alarm.
 Cyber Physical Systems
(CPS)
• Inter-disciplinary knowledge being required to
design and build products that require information
processing and networking; for example, a device
with embedded microprocessor and ZigBee, such as
the Raspberry Pi or a smartphone. It requires
special knowledge of that physical and mechanical
domain such as that of a mechanical engineer.
• CPS is that they are integrations of computation,
networking, and physical processes. Embedded
computers and networks monitor and control the
physical processes, with feedback loops where
physical processes affect computations and vice
versa.
 Network Functionality
Virtualisation (NFV)
• NFV is concerned with the virtualization of network
functionality, routers, firewalls, and load-
balancers. This makes networks agile and flexible,
something that traditional networks lack but that is a
requirement for the IIoT.
• By virtualizing functions such as firewall, content
filters, WAN optimizers for example and then
deploying them on commodity off-the-shelf (CotS)
hardware.
• Network administrator can manage, replace, delete,
troubleshoot, or configure the functions easier than
they could when the functions were hard-coded into
multi-service proprietary hardware.
 Promise of NPV for IIoT

• The promise of NFV for IIoT to:

– Realise new revenue streams.
– Reduce capital expenditures.
– Reduce operational expenditure.
– Accelerate time to market.
– Increase agility and flexibility.
• NFV is extremely flexible in so much as it can
work autonomously without the need of
SDN or even a virtual environment.
 Software Defined Networks
(SDN)
• SDN is concerned primarily with separating
the control and the data planes in
proprietary network equipment (bypasses
the router’s own internal routing protocols
running in its control plane’s logic).
• SDN is used to abstract the complexities of
the control panel from the forwarding plane.
• SDN controller interacts with the virtualized
routers via southbound APIs (open flow) and
higher applications via northbound APIs.
 SDN
• The controller makes intelligent judgements on
each traffic flow passing through a controlled
router and tells the forwarding path how to
handle the forwarding of the packets in the
optimal way.
• SDN controller will assume control. It will
receive the first packets in every new flow via
the southbound OpenFlow API and determine
the best path for the packets to take to reach
the destination.
• It does this using its own global view of the
network and its own custom algorithms.
 Cloud and Fog
• Fog is coined by Cisco to describe a cloud
infrastructure that is located close to the
network edge.
• The fog in effect extends the cloud through to the
edge devices, and similar to the cloud it delivers
services such as compute, storage, network, and
application delivery.
• The fog differs from the cloud by being situated
close to the edge of the proximity network
border, typically connecting to a service provider’s
edge router. It will be on the service provider’s
edge router that the fog network will connect to,
thereby reducing latency and improving QoS.
 Advantage of Fog
• Fog deployments have several advantages over cloud
deployments, such as low latency, very low jitter,
client and server only one hop away, definable QoS
and security, and supporting mobility location
awareness and wireless access.
• In addition, the fog does not work in a centralized
cloud location, but is distributed around the network
edge, reducing latency and bandwidth requirements
as data is not aggregated over a single cloud channel
but distributed to many edge nodes.
• Similarly, the fog avoids slow response times and
delays by distributing workloads across several edge
node servers rather than a few centralized cloud
servers.
 Fog Computing in IIoT
• The fog network is ideally suited to the IIoT connected
vehicles use-case, as connected cars have a variety of
wireless connection methods such as car-2-car, car-
2-access point, which can use Wi-Fi, 3g/4G
communications but require low latency response.
• Along with SDN, network concepts fog can address
outstanding issues with vehicular networks such
as long latency, irregular connections, and high
packet loss by supplementing vehicle-vehicle
communications with vehicle-infrastructure
communication and ultimately unified control.
 Industrial Internet
Architecture Framework (IIAF)
• IIAF is based on ISO/IEC/IEEE 42010:2011
standard, which codifies the conventions
and common practices of architect design.
• By adopting the concepts of this standard,
such as stakeholders and viewpoints, the IIAF
follows the constructs of the specification,
which is why the IIAF is described with
reference to concerns, stakeholders, and
related viewpoints.
 Industrial Internet
Viewpoints
Typical IIS can be broken
into five functional
domains:
• Control domain.
• Operational domain.
• Information domain.
• Application domain.
• Business domain.
Operational Domain
(Operation to Control Domain)
 Operational Domain:
Goals
• Goal of optimization, several conditions
require to be reached:
– Automated data collection, validation,
processing, and analytics.
– Capture and identify major system alarms,
events, and issues such as power failures,
system and network faults, latency, packet
loss and downtime as well as non-
responsive applications.
– The intelligence and capability to analyze
and determine root causes for known
problems.
 Information Domain

• Information Domain transforms the

operation data harvested from the other
domains, predominantly the control domain
and its vast array of sensors, into information,
which can be subsequently used as control
feedback to stabilize or improve the process.
 Application Domain
• Application domain is responsible for the
functions that control logic and deliver specific
business functionalities.
• Application functions perform advisory
functions; however, they do provide use-case
rules and logic, as well as APIs whereby an
application can expose its functionalities and
capabilities to a system.
• The application domain as supports user
interfaces that enable interaction with the
application.
 Business Domain
• Business domain enables integration and
compatibility between Industrial Internet system
functions and enterprise business systems such as
ERP (enterprise resource management), CRM
(customer relationship management), WSM
(warehouse stock management), and many others.
• As an example, a predictive maintenance service for
a fabrication yard may have historical and predictive
analytics on past and probable failure rates on
welding equipment, which allows them to forecast
likely failures. By integrating their ERP systems, they
can ensure stock is always at hand and reserved for
the customer.
 Three-Tier Typology

• Edge-Tier: data from all the end-nodes is

collected, aggregated, and transmitted over
the proximity network to a border gateway.
• Platform-Tier: receives data from the edge
tier over the access network and is
responsible for data transformation and
processing.
• Enterprise-Tier: implements the application
and business logic for decision support
systems and end-user interfaces, such as for
operation specialists.
Three-Tier Architecture
 Connectivity
IISs connectivity is comprised of two
functional layers:
Communication Transport Layer: The
functions relate to layers 1 – 4 of the OSI data
model.
Connectivity Framework Layer, to provide
the unambiguous format, syntax, and
semantics of the common communication
protocol. This function spans the upper layers
5 – 7 in the OSI model.
OSI Communication Layers
Internet Protocol
 What is Internet of Things?
• Internet connects all people -> Internet of people.
• IoT connects all things -> Internet of things
• Interconnection of Things or Objects or Machines, e.g., sensors,
actuators, mobile phones, electronic devices, home appliances,
any existing items and interact with each other via Internet.
Cisco Connect
2015
 Current Status & Future Prospect of
IoT

“Change is the only thing permanent in this world”

 The Potential of IoT

GE’s estimates on potential of just ONE percent savings

applied using IoT across global industry sectors.
Global IoT Spending
IoT Challenges …
IoT and Big Data
IoT Landscape
3GPP Standardization
IP Layers Vs IIoT Layers
 Wireless Communication
Technologies
• IEEE 802.15.4: low-power commercial radios. IEEE 802.15.4
is the basis for the ZigBee. 802.15.4 can be used with
6LoWPAN and standard Internet protocols to build a
wireless embedded Internet.
• Bluetooth Low Energy:
• ZigBee and ZigBee IP: ZigBee is an open global wireless
technology and is specifically designed for use in consumer,
commercial, and industrial areas.
• ZigBee builds on the standard IEEE 802.15.4, which defines
the physical and MAC layers. However, what makes ZigBee
different is that it is a superset of IEEE 802.15.4 in so much
as it provides application and security layer support.
This enables interoperability with products from different
manufacturers.
 Wireless Communication
Technology (2)
• Z Wave, a low-power RF communication tech
that is primarily designed for home automation
for products such as lamp controllers and
sensors.
• Wi-Fi Backscatter, relies on the fact that radio
waves and their energy can be reflected from Wi-
Fi router to power battery free passive devices.
• RFID
• NFC (Near Field Communication): short range
wireless communication use in contactless
payment systems.
 Wireless Communication
Technology (3)
• Thread: A very new IP-based IPv6 networking protocol aimed
at the home automation environment. Thread is primarily
designed as a complement to Wi-Fi as it recognizes that while
Wi-Fi is good for many consumer devices, it has limitations
for use in a home automation setup.
• 6LoWPAN: Low-power radio devices must transmit their
data in a timely and efficient manner and to do that there
needs to be improvements in the communication protocols.
Existing IP protocols have far too much packet overhead for
most embedded sensors, which transmit only tiny
quantities of data.
• The ratio of overhead to data is unacceptable, so a new
more efficient communication protocol that was still IP
compatible was required, called 6LoWPAN
.
 Wireless Communication
Technology (4)
• RPL: support a wide variety of different link
layers, including ones that are constrained and
potentially lossy. Designers typically utilize RPL in
conjunction with host or router devices with very
limited resources, as in building/home automation,
industrial environments, and urban applications.
• RPL can encompass different kinds of traffic and
signaling information exchanged between host.
• It supports Multipoint-to-Point (MP2P), Point-
toMultipoint (P2MP), and Point-to-Point (P2P)
traffic
 Wireless Technology (5)

• RPL efficiently and quickly builds up

network routing knowledge, which it can
distribute among its connected nodes.
• The RPL nodes of the network are typically
connected through multi-hop paths to a
small set of root devices.
• The root devices are responsible for route
information collection. Each route device
creates a Destination Oriented Directed
Acyclic Graph (DODAG),
Heterogenous Networks
Diverse Protocols in the
Proximity Networks
Scale of IoT
IoT Motivation
 4 Layers Model of IoT

Integrated
Application

Information
Processing

Network
Construction

Sensing and
Identification
IoT Layers Model in details
 How IoT Works?

RFID Sensor Smart Tech Nano Tech

To identify To collect and To enhance the To make the

and track process the power of the smaller and
the data of data to detect network by smaller things
things the changes devolving have the
in the processing ability to
physical capabilities to connect and
status of different part of interact.
things the network.
 The Structure of IoT
The IoT can be viewed as a gigantic networks consisting of
networks of devices and computers connected through a series
of intermediate technologies where numerous technologies like
RFIDs, wireless connections may act as enablers of this connectivity.
 Tagging Things : Real-time item traceability and addressability by
RFIDs.
 Feeling Things : Sensors act as primary devices to collect data from
the environment.
 Shrinking Things : Miniaturization and Nanotechnology has
provoked the ability of smaller things to interact and connect within
the “things” or “smart devices.”
 Thinking Things : Embedded intelligence in devices through sensors
has formed the network connection to the Internet. It can make the
“things” realizing the intelligent control.
Characteristics of IoT
ITU reference model for IoT. Taken from
Recommendation ITU Y.2060
 IoT Challenges:
Standardization

• Standardization for
– Interoperability
– Heterogeneity of sensors.
– Interfaces to Cloud Servers.
 The Future of IoT

"The Sky's not the limit. It's only the beginning with
IoT."
Technology roadmap of IoT
Case Study: Cisco IoT
Cisco IoT Ecosystem
IoT in Car Management
Huawei: IoT in Connected Car
 Sensors in even the holy cow!

In the world of IoT, even the cows will be connected and

monitored. Sensors are implanted in the ears of cattle.
This allows farmers to monitor cows’ health and track their
movements, ensuring a healthier, more plentiful supply of
milk and meat for people to consume. On average, each
cow generates about 200 MB of information per year.
IoT helps you in LIFE LOGGING
Case Study: IoT in GridBlocks
IoT in Electric Power
Smart Grid
IoT in Transportation Sectors
IoT in Connected Rail
IoT in Connected Bus and Mass
Transit
IoT in Oil & Gas Refinery
IoT in Public Safety
Internet of Underwater Things
Internet of Underground Things
Bio-Nano Thing
 Cisco IoT Cloud
• Is designed based on 6 pillars of technology:
 Network connectivity
 Fog computing
 Data analytics
 Security (cyber and physical)
 Management/Automation, and
 Application enablement.

Cloud addresses challenges acros a wide variety of

industries, including manufacturing, utilities, oil and
gas, transportation, mining and the public sector.
Case Study: IoT in Smart …
Case Study: Huawei Smart Home
Gateway
 IoT in Healthcare Industry
(IFA, 2017)

• The global IoT healtcare market is expected to grow

from $32.47 billion in 2015 to $163.24 billion by 2020:
– Remote patient monitoring services
– Mobile health technology
– Telemedicine
– Medication Management
– Improved Clinical Care
– Employee workflow management and
– Inpatient monitoring
Smart Transportation
 Internet of Things related Security
Internet2 IoT Systems Risk Management Task Force deliverables – on Internet2
CINO Wiki
“How to find devices connected to your campus network” -
[Link]
“IoT Vendor Management Considerations for Higher Education” -
[Link]

Joint ITANA (IT Architects In Academia) / Internet2 Enterprise IoT working

group
[Link]
nMq7sEWXLCYhk/edit

PEARC17 discussions regarding Cybersecurity needs in HPC e-

infrastructures
Presentation of Cybersecurity Research Transition To Practice Acceleration
workshops for researchers & users (U.S. NSF Early Concept Grant for
Exploratory Research EAGER #1650445)
CASC discussion begun and forthcoming (CASC = Coalition for Academic
Scientific Computation)

U.S. National Telecommunications & Information Administration process for

IoT Security, Upgradability & Patching
[Link]
 Criticisms and Controversies of IoT

Scholars and social observers and pessimists

have doubts about the promises of the
ubiquitous computing revolution, in the areas as:
 Privacy
 Security
 Autonomy and Control
 Social control
 Political manipulation
 Design
 Environmental impact
 Influences human moral decision making
 Major Obstacles to IoT deployment
(IFA, 2017)

• High Costs of required investment in IoT Infrastructure.

• Concerns about security and privacy.
• Lack of senior management knowledge/commitment.
• Weaknesses in organisation's technology
infrastructure.
• Regulation (e.g.,relating to data privacy).
• Weaknesses in public com infrastructure available to
organisation.
• Immaturity of industry standard around the IoT.
• General economic uncertainty.
• Undeveloped consumer awareness.
• Absence of business case/business model.
 What measure the companies taken to use the IoT
more extensively in the business

• Seeking advice from third party experts/consultants.

• Learning from the successes or failures of early movers.
• Training existing staff to work with the IoT.
• Conducting or sponsoring research to establish market
size/demand.
• Establishing a cross-functional task force to explore and/or pursue
IoT
• opportunities.
• Introducing new business models.
• Raising fresh capital to explore IoT options.
• Hiring talent with IoT capabilities.
• Establishing joint ventures or alliances to exploit IoT opportunities.
• Establishing an IoT center of excellence
• Acquiring a business or assets with IoT capabilities
 IoT Trends

• IT services (business consulting) -> major

driver
• IoT drives demand for Data Analytics: data
must be managed, integrated and analysed.
• IoT drives demand for Cloud Computing.
• IoT data -> Data broker. IoT generated data is
bought, analysed and sold.
• Interoperability problems.
• Security.
 5G and IoT:
SDN/NFV Based IoT (5G)
 Information Security
Attacking IoT
Office of Budget and Finance
Education – Partnership –
Solutions

• Default, weak, and hardcoded

credentials
• Difficult to update firmware and OS
• Lack of vendor support for repairing
vulnerabilities
• Vulnerable web interfaces (SQL
injection, XSS)
• Coding errors (buffer overflow)
• Clear text protocols and unnecessary
open ports
• DoS / DDoS
• Physical theft and tampering
 Information Security
Case Study: Lessons Learned Office of Budget and Finance
Education – Partnership –
Solutions

• All software can contain vulnerabilities

• Public not informed for months
• Vendors may delay or ignore issues
• Product lifecycles and end-of-support
• Patching IoT devices may not scale in large
environments
 TECHNOLOGICAL
CHALLENGES OF IoT

At present IoT is faced with many challenges, such

as:
 Scalability
 Technological Standardization
 Inter operability
 Discovery
 Software complexity
 Data volumes and interpretation
 Power Supply
 Interaction and short range communication
 Wireless communication
 Fault tolerance
 References
• Cisco Internet of Things.
• Architectural Design Principles for Industrial Internet of Things, Hasan
Derhamy, Lulea University of Technology. 2009.
• The Internet of Things (IoT) Security Considerations for Higher
Education, Christopher Giles, Governance Risk Compliance Specialist. UT
Dallas.
Q&A