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Overview Overview&&Development Development



As cities get smarter, they are becoming more liveable and more responsive – and today we are seeing only a preview of what technology could eventually do in the urban environment. By Jonathan Woetzel, Jaana Remes, Brodie Boland, Katrina Lv, Suveer Sinha, Gernot Strube, John Means, Jonathan Law, Andres Cadena, and Valerie von der Tann, McKinsey Global Institute.

12 > LEADING THE WAY: SMART CITIES ARE IMPROVING STANDARDS OF URBAN LIVING The United Nations has reported that by 2050, 66 percent of the world’s population will live in urban areas. Escalating numbers of urban residents has increased the strain on public services, infrastructure and resources. One potential solution to this is smart technology, which is being used to improve quality of life for growing populations around the world. Here, Jonathan Wilkins, MD at EU Automation, discusses developments in some of the world’s most advanced smart cities.

Connectivity & Fleet Management


Cities and suburbs will undergo significant transformations to create sustainable living conditions for their residents. The Fourth Industrial Revolution offers an unprecedented opportunity. By Jean-Pascal Tricoire, Chairman and CEO, Schneider Electric; and Francesco Starace, CEO and GM, Enel Group.

Information Technology


It is said that data is the oil of the 21st century. Many companies have understood that data has a value that they can monetise, just like a raw material. Facebook and Google provide their services free of charge but they are in no way without cost. Today users now know that their data is the currency by which they pay for the services of these Internet giants.. By Christian Knoop, Product Manager, Factory Automation Systems, Turck

21 > DIGITAL TRANSFORMATION AND THE ROAD TO 5G Over the past decade, Asia Pacific has transitioned from being the world’s factory to a leading developer of next-generation technologies, such as artificial intelligence (AI) and automation, big data, blockchain, cloud computing, connected devices, robotics, and virtual/augmented reality.


Article by MIT Technology Review.

The capture and processing of data is vital to the efficient use of energy and in achieving an optimal balance between people, places, prosperity, and the planet. This data can become knowledge that ultimately applications can use to provide smart services. By Rick Lee, Senior VP, GM Centre of Excellence, Hitachi Asia.

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IoT has been a global industry trend in recent years and a direction that Advantech has 3-stage IoT development; Hardware, Solution-Ready Packages (SRPs), and Cloud Services.


s KEY FACTORS for businesses seeking to undergo digital transformation, IoT, big data, cloud services, and artificial intelligence can bring new opportunities to increase market share by enabling the development of innovative applications. Based on our extensive hardware portfolio, Advantech has developed a multidimensional software service and has launched the WISE-PaaS industrial IoT cloud platform to provide a variety of solutions that integrate software and hardware for system integrators, manufacturers, and traditional industries. WISE-PaaS builds an end-to-cloud integrated value chain for industrial IoT, allowing businesses to experience the innovation of cloud services and assisting vertical markets in realizing IoT intelligence, complete service innovation, and business growth.

platform enables partners to quickly develop SaaS and domainspecific IoT solutions.

Advantech’s WISE-PaaS Industrial IoT cloud platform provides edge -to-cloud software & services to help system integrators & manufacturers, enabling real IoT-powered cloud business models in various vertical markets. Leveraging Advantech’s extensive hardware portfolio, WISE-PaaS integrates diverse software services, including WebAccess, WISE-PaaS/EdgeLink, WISE-PaaS/EdgeSense, and WISE-PaaS/ VideoSense. Data collected to the WISE-PaaS/EnSaaS IoT cloud

Advantech also believes that openness and co-creation are critical to fostering a positive business spirit in the IoT era. During the course of IoT development, Advantech has witnessed many businesses seeking to introduce IoT applications but were unable to determine how. By working together, Advantech is committed to the performance & success of businesses in the future IoT world. More information, visit us at http://www.advantech.com/SRP.

In general, IoT systems refer to application systems that connect end devices to the cloud. End devices in this context refer to sensors & other equipment dedicated to data collection. Through middleware & gateways, the data are uploaded to a cloud platform for further analysis and processing in IoT. Advantech plays an important role in the course of connecting end devices to the cloud. With years of experience in manufacturing end devices, Advantech has developed middleware & gateways in various vertical markets so that hardware can connect to cloud platforms more smoothly.

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Energy & Sustainability



As the complexity and sophistication of our electrical distribution infrastructure increases, it becomes more important to have the appropriate digital sensors, advanced controls and analytic capabilities. By Markus Hirschbold, MD, Healthcare Solutions, Schneider Electric.

Future Of Manufacturing


Smart factories offer efficiencies across the production process. However such intelligence is still slow to fully integrate into the wastewater management process.

Improve profitability and maximise return on capital across the operations and asset lifecyles to enhance competitiveness, improve customer experiences, and cut the hype. By Matt Newton, Senior Technical Marketing Manager, Asset Performance, AVEVA.


By Eric Lai, Asia Pacific Regional Business Director of Industry, Grundfos.

If you time-travelled 20 years into the future, would you even recognize your operations?

By Julie Robinson, Marketing Manager - Logix, Rockwell Automation and Dennis Wylie, Global Product Manager, ControlLogix Controllers.


Implementing the Industrial Internet of Things (IIoT) makes factories smart and confers a host of operational benefits. Contributed by Industrial IoT Team, Advantech.

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Editor’s Note

Cities Of The Future Smart city is a concept of utilising data and digital technology to build more efficient and liveable urban environments. This includes monitoring and managing of the population, public assets, transportation systems, power plants, water and wastewater, information systems and other community services. The global smart cities market size is forecast to reach US$2.57 trillion by 2025. PUBLISHER Kenneth Tan EDITORIAL SENIOR EDITOR Ahmad Alshidiq alshidiq@epl.com.sg EDITORIAL ASSISTANT Sharifah Zainon sharifah@epl.com.sg CREATIVE GRAPHIC DESIGNER Chan Fei Ching feiching@epl.com.sg ADVERTISING SENIOR SALES MANAGER Derick Chia derickchia@epl.com.sg

Around the world, governments are making cities smarter. A smar t cit y helps promote economic development, improve infrastructure and enhance healthcare, mobility and energy sustainability. In this region, the ASEAN Smart Cities Network, which includes 26 pilot cities, aims to benefit more than half of the 655 million Southeast Asian populations. By 2030, the region’s urban centres are expected to be home to 90 million more people than it is today, where middleweight cities (with 200,000-2 million population) are slated to drive 40 percent of the region’s growth. In this IOT Supplement, we explore how the different components of a smart city leverage on the Internet of Things and connected technology to build a better environment for the people. Read on to learn about the various components and their impact in the IoT era.


Ahmad Alshidiq Senior Editor

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Overview & Development


As cities get smarter, they are becoming more liveable and more responsive – and today we are seeing only a preview of what technology could eventually do in the urban environment. BY JONATHAN WOETZEL, JAANA REMES, BRODIE BOLAND, KATRINA LV, SUVEER SINHA, GERNOT STRUBE, JOHN MEANS, JONATHAN LAW, ANDRES CADENA, AND VALERIE VON DER TANN, MCKINSEY GLOBAL INSTITUTE.


NTIL recently, city leaders thought of smart technologies primarily as tools for becoming more efficient behind the scenes. Now technology is being injected more directly into the lives of residents. Smartphones have become the keys to the city, putting instant information about transit, traffic, health services, safety alerts and community news into millions of hands. After a decade of trial and error, municipal leaders are realising that

smart-city strategies start with people, not technology. “Smartness” is not just about installing digital interfaces in traditional infrastructure or streamlining city operations. It is also about using technology and data purposefully to make better decisions and deliver a better quality of life. Quality of life has many dimensions, from the air residents breathe to how safe they feel walking the streets. This article analyses how dozens of digital applications address these kinds of

practical and very human concerns. It f inds that cities can use smar t technologies to improve some key quality-of-life indicators by 10 to 30 percent—numbers that translate into lives saved, fewer crime incidents, shorter commutes, a reduced health burden, and carbon emissions averted. WHAT MAKES A CITY SMART? Smar t cities put data and digital technology to work to make better decisions and improve the quality of


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SMART-CITY TECHNOLOGIES HAVE UNREALISED POTENTIAL TO IMPROVE THE URBAN QUALITY OF LIFE M cKinsey G lobal Ins t i tu te ( M G I ) assessed how smart-city applications coul d af fe c t v ar iou s quali t y - of life dimensions: safet y, time and convenience, health, environmental quality, social connectedness and civic participation, jobs, and the cost of living. The wide range of outcomes reflects the fact that applications perform differently from city to city, depending on factors such as legacy infrastructure systems and on baseline starting points.

life. More comprehensive, real-time data gives agencies the ability to watch events as they unfold, understand how demand patterns are changing, and respond with faster and lower-cost solutions. Three layers work together to make a smart city hum. First is the technology base, which includes a critical mass of smartphones and sensors connected by high-speed communication networks. The second layer consists of specific applications. Translating raw data into alerts, insight, and action requires the right tools, and this is where technology providers and app developers come in. The third layer is usage by cities, companies, and the public. Many applications succeed only if they are widely adopted and manage to change behaviour. They encourage people to use transit during off-hours, to change routes, to use less energy and water and to do so at different times of day, and to reduce strains on the healthcare system through preventive self-care.

APPLICATIONS CAN HELP CITIES FIGHT CRIME AND IMPROVE OTHER ASPECTS OF PUBLIC SAFETY Deploying a range of applications to their maximum effect could potentially reduce fatalities (from homicide, road traffic, and fires) by eight to 10 percent. In a high-crime city with a population of five million, this could mean saving up to 300 lives each year. Incidents of assault, robbery, burglary, and auto theft could be lowered by 30 to 40 percent. On top of these metrics are the incalculable benefits of giving residents freedom of movement and peace of mind. Technology is not a quick fix for crime, but agencies can use data to deploy scarce resources and personnel more ef fectively. Real-time crime mapping, for instance, utilises statistical analysis to highlight patterns, while

predictive policing goes a step further, anticipating crime to head off incidents before they occur. When incidents do occur, applications such as gunshot detection, smart surveillance, and home security systems can accelerate lawenforcement response. But data-driven policing has to be deployed in a way that protects civil liberties and avoids criminalising specific neighbourhoods or demographic groups. Seconds count when lives are at stake, making speed critical for first responders in getting to the scene of emergencies . Smar t s y s tems can optimise call centres and field operations, while traffic-signal preemption gives emergency vehicles a clear driving path. These types of applications could cut emergency response times by 20 to 35 percent. A city with an already low response time of eight minutes could shave off almost two minutes. A city starting with an average response time of 50 minutes might be able to trim that by more than 17 minutes. SMART-CITY TECHNOLOGIES CAN MAKE DAILY COMMUTES FASTER AND LESS FRUSTRATING Tens of millions of people in cities worldwide begin and end ever y workday fuming in traffic or piling into overcrowded buses and trains. Improving the daily commute is critical to quality of life. By 2025, cities that deploy smartmobility applications have the potential


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to cut commuting times by 15 to 20 percent on average, with some people enjoying even larger reduc tions. The potential associated with each application is highly variable, depending on each city’s density, existing transit infrastructure, and commuting patterns. In a dense city with extensive transit, smart technologies could save the average commuter almost 15 minutes a day. In a developing city with more gruelling commutes, the improvement might be 20 to 30 minutes every day. In general, cities with extensive, well-used transit systems benefit from applications that streamline the experience for riders. Using digital signage or mobile apps to deliver realtime information about delays enables riders to adjust their routes on the fly. Installing IoT sensors on existing physical infrastructure can help crews fix problems before they turn into breakdowns and delays. Applications that ease road congestion are more effective in cities where driving is prevalent or where buses are the primary mode of transit. Intelligent syncing of traffic signals has the potential to reduce average commutes by more than five percent in developing cities where most people travel by bus. Real-time navigation alerts drivers to delays and helps them choose the fastest route. Smart-parking apps point them directly to available spots, eliminating time spent fruitlessly circling city blocks.

CITIES CAN BE CATALYSTS FOR BETTER HEALTH The sheer density of cities makes t hem cri t ical al t hough current l y underutilised platforms for addressing health. Recognising that the role of technology in healthcare is broad and evolving by the day, we analyse only digital applications that offer cities room to play a role. We quantify their potential impact on disabilityadjus ted life year s ( DA LYs), t he primary metric used by the World Health Organization to convey the global disease burden, reflecting not only years of life lost to early death but also productive and healthy life lost to disability or incapacity. If cities deploy the applications included in our analyses to their fullest effect, we see the potential to reduce DALYs by eight to 15 percent. Applications that help prevent, treat, and monitor chronic conditions, such as diabetes or cardiovascular disease, could make the biggest difference in the developed world. Remotepatient-monitoring systems have the potential to reduce the health burden in high-income cities by more than four percent. These systems use digital devices to take vital readings, then transmit them securely to doctors in another location for assessment. This data can alert both patient and doctor when early inter vention is needed, heading off complications and hospitalisations.

SMART CITIES CAN DELIVER A CLEANER AND MORE SUSTAINABLE ENVIRONMENT As urbanisation, industrialisation and consumption grow, environmental pressures multiply. Applications such as building-automation systems, dynamic electricity pricing, and some mobility applications could combine to cut emissions by 10 to 15 percent. Water-consumption tracking, which pairs advanced metering with digital feedback messages, can nudge people toward conser vation and reduce consumption by 15 percent in cities where residential water usage is high. In many parts of the developing world, the biggest source of water waste is leakage from pipes. Deploying sensors and analytics can cut those losses by up to 25 percent. Applications such as pay-as-you-throw digital tracking can reduce the volume of solid waste per capita by 10 to 20 percent. Overall, cities can save 25 to 80 litres of water per person each day and reduce unrecycled solid waste by 30 to 130kg per person annually. A ir- quali t y sensor s do not automatically address the causes of pollution, but they can identify the sources and provide the basis for further action. Beijing reduced deadly airborne pollutants by roughly 20 percent in less than a year by closely tracking the sources of pollution and regulating traffic and construction accordingly. Sharing real-time air-quality information with the public via smartphone apps enables individuals to take protective measures. This can reduce negative health effects by three to 15 percent, depending on current pollution levels. CREATING A NEW TYPE OF DIGITAL URBAN COMMONS Establishing channels for two-way communication between the public and local agencies could make city governments more responsive. Many cit y agencies maintain an ac tive presence on social networks, and others have developed their own interactive citizen apps. In addition to disseminating information, these


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channels create vehicles for residents to report concerns, collect data, or weigh in on planning issues. Paris has implemented a participatory budget, inviting anyone to post project ideas and then holding online votes to decide which ones merit funding. SMART SOLUTIONS CAN MAKE LOCAL LABOUR MARKETS MORE EFFICIENT Many local officials want to know if becoming a smart city will lead to an infusion of high-paying tech jobs or accelerate a wave of automation. Our analysis finds a slightly positive net impact on formal employment. Smart technologies will directly eliminate some jobs (such as administrative and field jobs in city government) while creating others (such as maintenance, driving roles and temporary installation jobs). E-career centres can have a modest positive impact by creating more efficient mechanisms for hiring and drawing more unemployed and inactive people into the workforce. Data-driven formal education and online retraining programmes can enhance a city’s pool of skills. Digitising government functions such as business licensing, permitting and tax filing can free local enterprises from red tape, contributing to a more entrepreneurial business climate. Many of the world’s most dynamic and desirable cities have serious

housing shortages, driving up rents and home prices. Expanding the supply of housing can bring down those costs. In many places, bureaucracy bogs down land acquisition, environmental studies, design approvals and permitting. Digitising these processes can remove risks and delays, encouraging more construction. In addition, most cities have a surprising amount of land sitting idle that could be suitable for infill housing. Creating open-source cadastral databases can help to identify land parcels for development. Smart applications produce savings in other areas, such as encouraging more efficient usage of utilities and the healthcare system. Products such as home-security systems, personal-alert devices, and lifestyle wearables involve consumer purchases, but they offer value that many are willing to pay for. Mobility applications offer new value as well, although e-hailing may encourage people to take more rides than they once did. However, e-hailing and other sharing applications make it possible for some people to forgo private vehicle ownership. MGI estimates that the average person could save as much as three percent on current annual expenditures. CHANGING THE ECONOMICS OF INFRASTRUCTURE Smart-city technologies help cities get more out of their assets, whether

they have extensive legacy systems or are building from scratch. There is no getting around the need to invest in physical assets and maintenance, but smart technologies can add new capabilities as core components are upgraded. Infrastructure investment once locked cities into capital-intensive and extremely long-term plans. Now, using the right combination of traditional construction and smart solutions, they can respond more dynamically to how demand is changing. If population growth surges in a far-flung neighbourhood, adding a new subway or bus line with the accompanying fleet expansion may take years. By contrast, a privately operated on-demand minibus service could be up and running much faster. City government does not have to be the sole funder and operator of every type of service and infrastructure system. While implementing most of the applications that we examined would fall to the public sector, the majority of the initial investment could come from private actors. Public financing may be reserved for only those public goods that must be provided by the government. Furthermore, more than half of the initial investment that needs to be made by the public sector would generate a positive financial return, which opens the door to partnerships.


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Overview & Development


SMART CITIES ARE IMPROVING STANDARDS OF URBAN LIVING The United Nations has reported that by 2050, 66 percent of the world’s population will live in urban areas. Escalating numbers of urban residents has increased the strain on public services, infrastructure and resources. One potential solution to this is smart technology, which is being used to improve quality of life for growing populations around the world. Here, Jonathan Wilkins, MD at EU Automation, discusses developments in some of the world’s most advanced smart cities.


CROSS THE GLOBE, cities are becoming smar ter, by incorporating sensor-based Internet of Things (IoT) technologies and city-wide initiatives to try and improve the lives of the residents. Lux Research has suggested that the world will deploy a trillion sensors by 2020, drastically increasing the amount of available data from the world’s cities. A growing number of nations are announcing their commitment to smart city development. In India, for example, Prime Minister Narendra Modi announced a US$7.4 billion initiative with the aim of creating 100 smart cities by 2020. In Latin America, Panama is emerging as the region’s first smart city in an attempt to solve traffic congestion and other problems in the city. In Rwanda, Kigali is being transformed into a smart city, optimised for urban living. With so many new players emerging, we look at some of the leading smart

cities, setting the example for the rest of the world. SINGAPORE The island city state of Singapore can be regarded as the world’s premier smar t cit y. The ambit ious Smar t Nation programme was launched in 2014 and Singapore has been at the forefront of the smart city movement ever since. The island already boasts f ibre net work acces s acros s i t s entirety, three mobile devices for every two people and a huge network of sensors and cameras providing a large pool of data for analysis. Singapore’s sweeping ef for t is likely to impact the life of every single resident. At the moment, 80 percent of re si d e n t s l i ve i n a p a r t m e n t s maint ained by t he H ousing and D eve l o p m e n t B o a rd , w h ic h ha s given the government a healthy testing ground for smart technology. Individual apartments are equipped with IoT sensors to measure energy

usage, waste production and water usage. It is important that the island monitors these, as Singapore imports billions of gallons of water from neighbouring Malaysia. The IoT devices can feed into vacuum waste management systems, solar panels or water reclamation equipment. IoT technology is not limited to homes. Singapore is also monitoring t he heal t h of i t s ci t izens and is currently testing a monitoring system for elderly relatives, which notifies a caregiver or family member if a lack of activity is detected. A telehealth system that enables remote treatment for medical care is also being trialled. A s a par t of it s transition to a smart city, Singapore is also testing autonomous vehicles such as shuttles and taxis. By 2020, the government has mandated a satellite navigation system in all vehicles, providing a wealth of data for location monitoring and traffic analysis.


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smart services. Alongside its cameras and sensors, the city has worked with Verizon to develop a web application for data analysis, visualisation and reporting. Boston is a leader in the global Vision Zero initiative, which aims to reduce the number of fatal traf f ic crashes using technology to collec t data on the behaviour of drivers.Binder.pdf 1 7/11/17 2:25


Boston has also unveiled a number of apps to improve the day-to-day experiences of resident s. These include apps for paying parking tickets and reporting potholes. There’s also a mobile app for Hubway, the city’s bike share system, which shows users bike availability in real-time. Like Singapore, Boston has also started testing autonomous vehicles.

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Singapore’s unique geography and political situation has enabled it to test and commercialise ideas without a lengthy regulatory process, so Singapore is likely to remain at the forefront of this change. M





BOSTON The US government announced in September 2015 that it was committing US$160 million to support smart cities over the next five years. One city in particular that has embraced smart city technology is Boston, Massachusetts, where technology is being embedded along and underneath the streets. So far, Beacon Street and Massachusetts Avenue have become Smart Streets, with cameras and sensors monitoring navigation and interaction between drivers, pedestrians and other road users. The city is working with mobile n e t w o r k p r o v i d e r, Ve r i z o n , t o aggregate the data to learn more about road safety hazards and test CMY




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I n 20 1 7, s t a r t - u p n uTu n o m y I n c began testing driverless cars in a 191-acre park. The project is set to expand once certain targets have been reached. OSLO Oslo has implemented cit y-wide smart technology to make its streets, transpor t and buildings greener. One piece of technology showing particularly positive results is smart streetlights that respond to weather forecasts and light conditions, which have reduced energy costs for the city by 70 percent. Oslo is highly rated for its excellent quality of life and it is now striving to be smarter, more inclusive and more creative. As a part of this, the city runs a regular contest, SmartOslo, where entrepreneurs and start-ups can pitch their ideas to improve the city. In addition, the city has started a 10year programme called FutureBuilt, a collaborative projec t that aims

to suppor t climate-friendly urban development by incorporating and integrating new technology. The projec t involves almos t a dozen partners that are working to build climate -friendly buildings and districts. The new facilities will be of high architectural quality and near to transport hubs and one school built as par t of t he scheme has automated energy recover y and rooftop classrooms. In Oslo, 60 percent of the city’s greenhouse emissions are generated by the transport sector. The city has embraced electric vehicles (EVs) by introducing incentives to encourage more people to choose these vehicles, such as not having to pay the 25 percent sales tax and being able to use the bus lane. The electrical infrastructure has been improved to match, adding 2,000 charging points at key points around the city. There’s a lot of work to be done for our cities to be ready for the

increased population and urbanisation of 2050, bu t in ever y cont inent projects and schemes are pioneering new developments, technologies and ideas to improve city life. This is expected to continue as more nations dedicate funding to projects that will help to lead the way.

Across the globe, cities are becoming smarter, by incorporating sensorbased Internet of Things (IoT) technologies and city-wide initiatives to try and improve the lives of the residents.


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Overview & Development


The capture and processing of data is vital to the efficient use of energy and in achieving an optimal balance between people, places, prosperity, and the planet. This data can become knowledge that ultimately applications can use to provide smart services. BY RICK LEE, SENIOR VP, GM CENTRE OF EXCELLENCE, HITACHI ASIA.


LL over the world, concrete steps are being taken to make a special type of city: a smart city. These cities use new technologies to help them reach their diverse goals more efficiently. Some cities are being made smarter, and some new cities are being designed to be smart from their very beginnings. A common goal is to provide cost efficient services to their residents. Another goal is to make cities that are at t r ac t i ve f rom a var iet y of viewpoints: for example, to make cities that are both economically vibrant and also environmentally friendly. As environmental and energy problems grow increasingly severe, and the need for sustainable growth increases, smart cities are becoming more necessary and more popular. Hitachi sees its smart city approach as a way to resolve the problems faced by individual cities. The approach

takes into account both the economy and the environment, can handle changing times and social trends, and supports safe, interesting, and prosperous lifestyles. For this approach to work, it is important to identify the stakeholders and the structures and organisations that make up a smart city, and to understand their different points of view. The company views the smart city as having a hierarchical structure comprising a variety of infrastructure with different functions and roles, and believes that, if each layer of this infrastructure hierarchy is highly integrated, the cit y can resolve problems and provide services more efficiently and more effectively. SMART CITY STAKEHOLDERS Smart city stakeholders include city administrators, developers, residents, and groups sharing world opinion on

the environment. Such stakeholders have different interests and interact with the city in different ways, and stakeholders need to recognise the existence of standpoints that might differ from their own. For example, residents need to be aware that people living well beyond the city borders might be very concerned at the environmental problems of the city. Similarly, when developing smart city concepts and plans, city administrators need to take into account the needs and concerns of resident s and other parties involved. OPTIMAL BALANCE The approach that is adopted here, is that the best method to develop smart cities is to take all the stakeholder viewpoints into account. For example to make a cit y smar ter requires examination of ecological, economic, and people- oriented factors. But implementing these insights is not the end of the process. Making a city smarter provides the tools and IoT INSIGHTS | 15

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systems to efficiently resolve a wide variety of problems in the future. Smart cities considered desirable by all stakeholders need to have the optimal balance between the ecological (‘Eco’) needs of the global environment and the experiential values of the city residents who want prosperous urban lifestyles that offer a good quality of life. Combining lifestyle convenience with consideration for the environment will be essential for the sustainable development of cities. This balance is a very important aspect of urban policy. STRUCTURE OF A SMART CITY Smart cities are modelled here as a hierarchy of infrastructures that have different functions and purposes. The national infrastructure and urban infrastructure layers contain the most basic parts of the social infrastructure. The daily-life services infrastructure layer supplies services directly to residents. The smart-city management infrastructure layer coordinates these various layers through the use of IT. H i t a c h i ’s v i s i o n i s t h a t e a c h infrastructure layer will interoperate under the control of the smart-city management infrastructure to support a way of life for residents that takes into account the global environment, safety, and convenience.

make up the hierarchy described above. The smart-city management infrastructure plays a key role as the common platform enabling various combinations. For example, this management infrastructure can ensure that services are available when and where they are needed, and can help residents achieve a good quality of life with the minimum impact on the environment. The management infrastructure can coordinate both the physical and system components of the common elements that make up a city (such as buildings, roads, railways, and utilities) and those elements that differ by region (such as residential areas, central business districts, and commercial areas).

into account. These two types of IT are control systems, which can operate the social infrastructure safely, efficiently, smoothly, and in harmony with the environment; and information systems, which help deliver the securit y, convenience, and comfort of a smart city lifestyle. For example, information systems can collect operational data from various areas of life, and then transform this data into information and knowledge that applications can use to provide smart services. For example, data can be used to predict demand spikes that require extra resources. Similarly, control systems can use this information for more finely grained management and operation. This can enhance the operation of factories, electric power

ADVANCED IT FOR SOCIAL INFRASTRUCTURE A fusion of t wo dif ferent types of IT can resolve the issues confronting social infras t ruc ture and help develop smar t cities t hat are secure and comfor table while taking the environment

SMART-CITY MANAGEMENT INFRASTRUCTURE Hitachi sees smart cities as emerging from combinations of elements that

The company views the smart city as having a hierarchical structure comprising a variety of infrastructure with different functions and roles, and believes that, if each layer of this infrastructure hierarchy is highly integrated.


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systems, railways, and other services. Through this integration of information, it is possible to develop infrastructure systems that are optimised across the whole of society. BALANCING SUPPLY AND DEMAND By utilising IT to coordinate operation of the urban infrastructure layer and the daily-life services infrastructure layer, the smart-city management infrastructure can provide access to more information on supply and demand than was available in the past. Not only is there more information, but techniques such as data visualisation make this data easier to understand quickly. The balance between supply and demand can be managed instantaneously, with high precision. INTEGRATED SERVICES By using IT to seamlessly interlink resources, functions, and services, a smar t cit y can provide a single integrated service that is optimised to take advantage of the characteristics of each component. Consider transportation, for example. A smart city can provide transportation services that deliver people to their destination and satisf y user requirements for safety, convenience, and economy by simulating the combined operation of trains, buses and other public transportation, car rental or sharing

arrangement s, and private car s. Or consider energy. A smart city can achieve a flexible and reliable supply of electric power by making maximum use of solar, wind, and other forms of renewable energy in addition to thermal, hydro, and other base-load electric power generation facilities. As in these examples, IT is essential to delivering the optimal combination of services that meets demand and suits regional circumstances. CREATION OF NEW SERVICES The use of IT in smart cities can lead to innovations and the creation of new services. A smart city generates extensive data from its infrastructure via sensors and other means. Access to this data opens up possibilities for innovations and services within the daily-life services infrastructure. For example, a traffic management s y s te m c o u l d d e te r m i n e t r a f f i c conditions by using vehicle-mounted devices to collect information on car locations and speeds. Naturally, individuals would have to give explicit permission before allow ing t hird par t ies access to certain types of personal information acquired from the social infrastructure. Robust security would be needed to prevent data leakage and monitoring would be needed to ensure that the information is used for agreed purposes only. However, with the right security and privacy safeguards, access to such data can lead to many types of new services. The availability of such data has the potential to lead to a wide variety of new applications. In addition to commercial innovations, health and welfare services can use the data to better focus their limited resources on those most in need. This open approach to data can unleash smart innovation that provides both public and personal benefits. SMART CITY REQUIREMENTS The idea of a smar t cit y is an abstrac t one, and the ideal form changes through each stage of a

cit y’s development. To achieve a sustainable balance and harmony between the values of residents and the environment, urban development must proceed in a far-sighted and planned manner with a focus on achieving the objectives specific to each particular city. The city must also operate within the relevant constraints, including budgets, space, and each city’s individual priorities. The process of creating an actual smart city requires the identification of the right level of ‘smartness’ for that city, and requires undertaking longterm projects aimed at achieving this. SMART CITY, SMART LIFE A smart city provides a way of life that is safe, secure, convenient , and comfortable. The services and facilities needed to provide this ‘smart life,’ can be defined as the daily-life services infrastructure, and this can be seen as an additional infrastructure layer on top of the energy, transpor tation, and other functions of the social infrastructure. An important idea is that the dailylife services infrastructure can be broken down (disassembled) into the various different services provided by the city, and these individual functions can then be made smarter (improved) and put back together (reassembled) to develop a city that satisfies the genuine needs of residents. IN CONCLUSION The time for smart cities has come. The cities of the future will not be measured just by economic indicators. A smar t cit y provides enhanced environmental per formance, economic value, and social value over the long term. Smart cities are essential for a sustainable future. This vision for smart cities is being realised and, even now, it is engaging with stakeholders to design and develop smar t cities that are good for the environment, good for the economy, and good for people. The benefits of smart cities should continue as long as the cities themselves. IoT INSIGHTS | 17

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Connectivity & Fleet Management

ENERGY FOR SMARTER CITY TRANSFORMATIONS Cities and suburbs will undergo significant transformations to create sustainable living conditions for their residents. The Fourth Industrial Revolution offers an unprecedented opportunity. BY JEAN-PASCAL TRICOIRE, CHAIRMAN AND CEO, SCHNEIDER ELECTRIC; AND FRANCESCO STARACE, CEO AND GM, ENEL GROUP.


S URBAN ISATION INCREASES – an additional 2.5 billion people will live in cities by 2050 – cities and suburbs will undergo signif icant transformations to create sustainable living conditions for their residents. Energy and mobility are the twin pillars of these transformations, and both will require radical adaptation to meet the demographic and economic growth without increasing congestion and pollution. The question is whether policy-makers and business leaders can harness and combine them in ways that maximise their benefits for the environment and create greater ef f iciency and economic grow th. The Fourth Industrial Revolution offers an unprecedented opportunity. THE FOURTH INDUSTRIAL REVOLUTION IN ENERGY AND MOBILITY SYSTEMS Mobility is changing As Electric Vehicles (EV) become more affordable, some are predicting that they will constitute almost a third of new-car sales by the end of the next decade.  Ride-sharing continues to surge, with estimates that by 2030, it will account for more than 25 percent of all miles driven globally, up from 4 percent today. These changes are just the first hints of what is to come as we will soon see Autonomous Vehicles (AV) and commercial fleets of EVs integrated as parts of everyday

life. In the future, AVs will also cost significantly less per mile than vehicles with internal combustion engines for personal-use — by as much as 40 percent — and could also reduce congestion and traffic incidents. At the same time, energy is changing We are amid a global evolution toward energy systems that are cleaner and increasingly decentralised, with energy generated, stored, and distributed closer to the final customers, with renewables and storage technologies. At the same time, digitalisation will allow customers and electricity system operators to control where, when, and how electricity is being used and new business models to emerge. And finally, new and more energy uses are going to be electrified — mobility being one of the critical ones. These trends have the potential to reinforce each other and actively contribute to make our cities smarter. Forward-thinking business leaders and policy-makers must act now to lay the foundation for sustainable innovation in urban environments — able to capture and combine these new trends. A NEW APPROACH TO ELECTRIFICATION OF TRANSPORT IS REQUIRED Electric mobility is widely seen today as a way to improve air quality and meet climate goals, but rarely is it

integrated in a comprehensive vision for smarter cities. EVs continue to be associated to traditional ownership and use models, and still considered as just cars: the innovative uses and services associated to batteries or to the integration with smart buildings are ignored or at least not enough explored. Charging s tations are still developed with limited or no consideration of the energy issues, or not exploiting enough digital technologies, over- complicating t he cus tomer experience. Their location will also inevitably change with the transition to shared and autonomous mobility.


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“Electric Vehicles for Smarter Cities: The Future of Energy and Mobility”, a report from The World Economic Forum, developed in cooperation with Bain & Company, suggests following three general principles: 1. Take a multi-stakeholder and market-specific approach The investment and infrastructure required to support electric mobility will vary significantly from one place to another. Any roadmap to electric mobility should be adapted to three main characteristics of the specific market : local infras t ruc ture and design; energy system; and mobility

culture and pat terns. All relevant stakeholders should be engaged to collectively define a new paradigm for cities that go beyond the today’s indus t r y div isions, in search for complementary municipal, regional, and national policies. 2. Prioritise high-use electric vehicles Electric taxis and public transportation will have a great impact in reducing carbon emissions. These types of vehicles are driven far more than personal-use vehicles, so commercial and public EV fleet development should be encouraged. For example,

Schneider Electric and BMW are part of a consortium of companies in Bangkok that is partnering with King Mongkut’s University of Technology Thonburi to spur the use of electric vehicles across Thailand, initially through car sharing and a campus-based electric bus. 3. Deploy critical charging infrastructure today while anticipating the mobility transformation EV charging infrastructure should be developed along highways, at des tination point s, and close to public transportation nodes. This is IoT INSIGHTS | 19

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critical for three reasons: first, to keep pace with current demand. Second, to address range anxiety issues by making charging stations accessible, convenient, and easy to locate. And, lastly, to promote the adoption of EVs in commercial and private markets. In Hong Kong, the local government incentivises EV infrastructure developers by allowing them to integrate Octopus, a popular smar t payment system also used to access public transpor tation. This gives EV drivers a convenient and familiar way to purchase energy, and aims to encourage more people to dri ve E Vs by ensuring t he availability of a network of public charging stations. T h e i n f r a s t r u c t u re s h o u l d b e deployed in combination with grid edge technologies — such as decentralised generation, storage, and smart buildings — and integrated in smart grids, while at the same time offering a digital end-to-end customer experience. This will magnif y the benefits of grid edge technologies: increasing reliabilit y, resilience, efficiency, and asset utilisation of the overall system; reducing CO2 emissions; creating new services for customers, and creating new jobs. THE CONVERGENCE OF ENERGY AND MOBILITY When these three general principles are followed, mobility assets and energy systems help each other. EVs can be used as a decentralised energy resource and provide new, controllable storage capacity and electricity supply that is useful for the stability of the energy system. In markets where regulation allows EVs to be used as a source of flexibility, energy players start betting on this vision, with cars working as ‘batteries on wheels’. For example, in a pilot project in Denmark, Enel and Nissan set up the first vehicle-to-grid (V2G) commercial hub: by selling frequency re g u l a t i o n s e r v i c e s fo r s y s te m balancing purposes to the Danish Transmission System Operator (TSO),

a car can generate around €1,500 in annual revenue. New business models are possible, where the drivers and fleet operators of E Vs could p lay as p ro ducerconsumers of energy services, such as vehicle-to-everything (V2x) and smart charging. These new energy services will create additional opportunities for revenue sharing between the vehicle owners and the energy suppliers that would reduce the total cost of ownership of the EVs and accelerate their market penetration. At t he EU R EF C ampus  on t he outskirts of Berlin, the EV charging stations are integrated in the local micro smar t grid w i t h solar and wind generation. The micro grid’s artificial intelligence and machine-tomachine learning capacity actively optimises EV charging. It controls the charging demands to match the network capacity and sends energy surplus back to the grid based on dynamic pricing. This creates a system where electricity is supplied, stored, and potentially sent back actively and intelligently. In this context, all new constructions at the campus are sustainable buildings and as of 2014, the EUREF Campus had already met the German government’s  climate targets for 2050. DESIGNING A BETTER FUTURE The transformations happening in the f ields of energy and mobilit y are inevitable, inf luenced by mar ket f ac to r s an d m e gat ren d s that are virtually unstoppable. Their convergence is the oppor tunit y.

B usines ses have t he chance to spearhead it in cities. Policymakers have the power to promote innovation and new ways of thinking in local governments that will make it possible. On both fronts, the convergence of energ y and mobili t y mus t be strategic, intentional, and guided, if cities and citizens are to receive the maximum benefits. The energy sec tor will have to accelerate the path toward a c l e a n e r, m o r e d i g i t a l i s e d a n d decentralised system, yet one that is more connected and customercentric. Enabling dynamic pricing and creating new roles for network operators by redesigning the regulatory paradigm will be vital to this strategy. The mobility sector will have the opportunity to develop new business models based on ser vice and sharing models, and the new uses and services associated with EVs as decentralised energy resources. U r b an p lanner s w i ll ne e d t he suppor t of energy and mobilit yrelevant s takeholder s to def ine the optimal location of the publicly accessible charging infrastructure. All stakeholders will be critical to ensure a seamles s cus tomer experience, by suppor ting the deployment of a flexible, open, and multiservice infrastructure. The World Economic Forum’s new report provides a detailed overview of this unprecedented opportunity at the intersec tion of energy and mobility.


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Information Technology

DIGITAL TRANSFORMATION AND THE ROAD TO 5G Over the past decade, Asia Pacific has transitioned from being the world’s factory to a leading developer of nextgeneration technologies, such as artificial intelligence (AI) and automation, big data, blockchain, cloud computing, connected devices, robotics, and virtual/augmented reality. ARTICLE BY MIT TECHNOLOGY REVIEW.


O B OT I C S a n d a d v a n c e d manufacturing, welle s t a b l i s h e d i n Ea s t A s i a , a re f a n n i n g o u t i n to S i n g a p o re and Malaysia as R&D clusters and government innovation strategies help firms push deeper into AI, smart manufacturing and IoT. In emerging ma r ket s like I n d o nesia a n d t he Philippines , consumer apps are booming, thanks to widening access to the internet and the success of

homegrown firms. This article charts the digital transformation to date and examine 5G as an oppor tunit y to consolidate the region’s gains. DIGITAL TRANSFORMATION, ASIA STYLE The Four th Industrial Revolution (4IR) is fusing digital and physical technologies as data, automation and connectivity are wired into everything from vehicles to home appliances.

While manufacturing is the landing site of 4IR, the blurring of boundaries between software and the physical world means these same tools are reaching the pocket, the home, the street and the farm, from consumer devices to smar t cities and even agriculture. One forecast predicts that there could be 200 billion ‘connected objects’ by 2020, up from two billion in 20 0 6, equating to around 26 per person. In Singapore and Malaysia, digi t isat ion and au tomat ion are reshaping bio manufacturing and electronics, while in Indonesia and the Philippines, 4IR is making the biggest difference in the app economy, in segments like on-demand services. B l u r r i n g b o u n d a r i e s b et we e n sectors, reducing costs, and enabling IoT INSIGHTS | 21

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the hangers, with just over a third expecting rollout in the next year. Technologies seeing more limited adoption so far such as blockchain and virtual/augmented reality, will figure in some companies’ plans in the medium term. In terms of the business drivers for digitalisation, improved customer experience and improved decisionmaking were the two most-commonly selected motivating factors for the adoption of nex t- gen technology followed by efficiency and cost-cutting.

the leapfrogging of infrastructure constraints, the digitalisation era coincides with the emergence of homegrown Asian mega startups like Grab and Go-Jek. Even agriculture and the environment are part of the digital era as farmers, governments, and companies use sensors, machine learning and satellites for ecological monitoring, water management and field optimisation. Rich or middle income, in the factory or in the field, one thing is clear: digitalisation is driving innovation across the region. One forecast predicts that 60 percent of the wider Asia Pacific region’s GDP will be derived from digital products or services by 2021. METHODOLOGY MIT Technology Review Insight s p o ll e d 1 9 1 se nio r exe cu t i ve s in Singapore, Malay sia, Indonesia, the Philippines, Australia, and New Zealand, at companies with global revenues ranging from $100 million to over $5 billion. Chief information of f icers and chief technology officers accounted for a third of the respondents, a quarter were heads of data, analytics, network or digital transformation. The responses were drawn from a wide range of industries – financial services, manufacturing, and healthcare were the among the sectors represented most strongly, followed by real estate, hospitality, and transportation.

PROGRESS AGAINST PEERS The findings show that companies are already making strong progress with digital transformation. Respondents largely describe their organisations as keeping pace with industry peers, particularly in products and services. The area of greatest progress is in transforming enterprise technology and internal systems; some 45 percent report being ahead of industry peers in this area. Manufacturing and supply chain processes present more of a gap, with 36 percent of respondents being either behind the industr y or unsure of how t heir business compares to peers. Executives surveyed also report broad adoption of 4IR and nex tgen technologies. Cloud and the Internet of Things (IoT) are somewhat established, deployed by around a third of companies. AI, automation and big data are heading out of

AUTOMATING ASIA Autonomous systems, from robots to self-driving vehicles, are undergoing rapid per formative improvement t hanks to t he data explosion of the digital era, technical advances in deep learning and neural networks, and a competitive race set off by cash-rich tech companies and governments. Sur vey par ticipants see AI and automation as future - critical: 57 percent and 46 percent put AI and automation, respectively, in their top three technologies in terms of business-transforming potential. The wider region is already a frontrunner in industrial robotics, with the International Federation of Robotics forecasting Asia and Australasia to ship 354,400 industrial robots by 2020, compared to 73,300 from the Americas and 82,600 from Europe. China, South Korea, and Japan are the top producers globally.

Companies in southern Asia-Pacific have already made the greatest headway in transforming enterprise technology and internal systems, followed by customer-facing processes and products and services. The lag is in manufacturing and supply chain with 36 percent being either behind the industry or unsure of how their business compares to peers.


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Au tonomou s t r ansp or t is al so solving local dynamics: in ageing economies, it could support mobility for the elderly out side of cities. Singapore and Malaysia have the s t ro n g e s t a u to n o m o u s s y s te m s R&D profile of this repor t’s set of countries. The former recently formed the Launchpad Robotics Centre for start-ups, and Nanyang Technological University is running autonomous vehicle trials in the country’s first test centre in the Jurong Innovation District. Niels de Boer, Programme Director for Future Mobility Solutions at Nanyang Technological University, says R&D in Asia for autonomous vehicles is not at the leading edge globally, but is highly application focused to local challenges. Regional collaboration is a further feature of the automation R&D agenda in Asia, notably between Malaysia and China with the recent signing of cooperation agreements between J o h o r C o r p o r a t i o n a n d C h i n a’s Siasun Robot Investment to develop a large-scale robotics R&D centre, dubbed Robotic Future City, in west Johor Bahru. THE ROAD TO 5G To d a t e , A s i a - P a c i f i c ’ s d i g i t a l transformation has been enabled by s tea d i l y w i d e nin g a cce s s to the internet, falling hardware costs, especially mobiles, and the emergence of pluck y homegrown companies with a deep understanding of local tastes and needs. Unlike Asia’s industries of old like manufacturing, digital sectors have lower physical capital entry barriers, relying more on technical skills and entrepreneurship. Asian global firms of the past have often been large corporations, while the continent’s ‘start-up’ era of today is made possible by digital. As the 5G era dawns, how will each country’s digital transformation agenda be impacted? The agreement of technical standards in the summer of 2018 by 3GPP, the international standard set ting group, has sparked a

rapid phase of commercialisation as net wor k oper ator s , sof t ware and technology companies, and government regulators explore use cases. Each connectivity shift – from 2G (1990s) to 3G (2000s) to 4G (2010s), prompted wider changes in the tech ecosystem, enabling new product and service categories like smartphones, streaming, mobile e-commerce and the on-demand economy, bringing new players to market. What will the 5G chapter bring, and how will it impact Asia’s digital transformation? Experts expect 5G to become a reality in two to four years, depending on the market and geography, and it will expand out into the wider connectivity system rather than being a ‘switch’. A multi-path approach could see consumers drawing on both Wi-Fi and non-Wi-Fi 5G or 4G. One billion people are expected to be 5G-connected within five years globally, leading to an estimated US$12.3 trillion in economic output by the mid-2030s. There are three main use- case categories: enhanced mobile broadband (eMBB), massive IoT, and critical communications. Smart cities, machine-to-machine communication, autonomous vehicles, and advanced manufac turing are all use cases, as are enter tainment and media

segments like immersive sporting holographic conferences, and VRbased social gaming. Sur vey respondents see 5G as imminent. The majorit y, some 65 percent, expect it in their country by 2020, w i t h t h e n ex t hi g h e s t proportion believing 2021 a more likely arrival date (18 percent). Less than 8 percent think it would take until 2022. INTELLIGENT MANUFACTURING Manufacturers are among the first adopters of 5G with 61 percent of survey respondents saying that this sector will benefit the most. “5G will become the central nervous system of the ‘factory of the future’ and will have a disruptive impact on industrial p r o d u c t i o n ,” s a i d D r. A n d r e a s Müller, Head of Communication and N e t w o r k Te c h n o l o g y a t B o s c h Corporate Research. Dev ice - to device communications can rewire industrial production, or get rid of the wires completely. W h i l e f u t u r i s t i c f a c to r i e s a n d autonomous vehicles might seem confined to high-income economies, experts see wider 5G use cases. By bringing instantaneous high-powered connectivity to billions of devices, it could be an ‘inflection point in the future of communications’.


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Information Technology

INTELLIGENT CLOUD IN THE SMART FACTORY It is said that data is the oil of the 21st century. Many companies have understood that data has a value that they can monetise, just like a raw material. Facebook and Google provide their services free of charge but they are in no way without cost. Today users now know that their data is the currency by which they pay for the services of these Internet giants. BY CHRISTIAN KNOOP, PRODUCT MANAGER, FACTORY AUTOMATION SYSTEMS, TURCK.


OT ONLY end consumers produce data today. Large amounts of data are produced ever y day in industr y – data that can have a high usage value when evaluated properly. Machines and plants are continuously producing data that today largely remains unused. This does not have to continue as Turck has now developed a cloud solution that can put an end to this situation. The cloud saves production data both for monitoring and remote maintenance tasks, as well as for optimising and analysing the production processes. The special feature here is that users decide themselves where the data is to be stored and whether it is to be transferred to the internet. The data is also encrypted for communication. To put it another way, customers can thus ensure that nobody steals their oil.

Step 2: Generation of additional data in the sensors and fieldbus modules The second step covers the generation of additional data no longer required for the actual control of a machine. Sensors, for example, and many other devices supply additional data as well as the process data, such as temperature, degree of contamination, operating hours or other values containing meta information about a device. With the increasing spread of IO-Link in particular, a channel was created to transfer additional acyclical data to the controller. This data has recently been used increasingly for diagnostic tasks or for predictive maintenance. In this way, users can determine the degree of contamination on their ultrasonic sensor, or whether a shaft monitored by a rotar y encoder is no longer running smoothly.

Step 3: Integration in the systems of established cloud suppliers Major IT, telecommunication and technolog y companies, such as Telekom or Amazon, as well as major software specialists like SAP, IBM or Microsoft, are already offering cloud services on the market. The transfer of data to these clouds from production is now already possible using edge gateways and other solutions, such as Turck’s multiprotocol fieldbus devices. Thanks to the multiprotocol Ethernet technology, Turck ’s I/O modules and systems can send data to edge gateways in parallel with user data (via Profinet, Ethernet/IP and Modbus TCP), which in turn either evaluate it themselves or send it to the cloud systems of the established suppliers. Turck intends to equip its product portfolio gradually with OPC UA and

FIVE STEPS TO SMART PRODUCTION The proprietary cloud platform offering is another step for Turck and its customers on the way to an intelligent, integrated and self-learning production process in line with Industr y 4.0. The flexible offer is divided up into five steps. Step 1: Supply of pure user data for the operation of machines and plants The digital and analogue sensor data enable a PLC or other controller to operate a machine or plant.


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The special feature here is that users decide themselves where the data is to be stored and whether it is to be transferred to the internet. The data is also encrypted for communication. To put it another way, customers can thus ensure that nobody steals their oil.

MQTT communication options. These standard protocols allow components to be integrated flexibly, quickly and easily in any cloud. Beside block I/O modules and modular I/O systems, these protocols will also be available in Turck HMIs and PLCs. The cloud systems of the major IT suppliers have given little consideration so far to the special requirements of industrial production and automation. Although a lot can be configured and adapted, this can be inflexible, tedious and difficult in particular cases, as well as ultimately being expensive. The communication routes to the major suppliers are also often not encrypted. Turck provides an answer here with its cloud solution that is tailored to automation requirements. Step 4: Tailor-made for industrial automation At this year’s Hannover Messe, the Mßlheim automation specialists are presenting for the first time the Turck Cloud Solutions, its own proprietary

cloud solution tailored to meet the requirement s of automation and industrial requirements. The benefit of this solution is the fact that Turck with its Kolibri protocol, which is part the technology buyout of Beck IPC, offers fully encrypted communication with the cloud. In comparison, communication via MQTT for example is of ten not encr y pted and c an therefore be more easily read when the line is tapped. Kolibri is also a slim-line protocol t hat can be integrated easil y in any standard industrial hardware without causing any performance bot t lenecks. Unlike t he cloud services of IT suppliers, the Turck cloud automatically shows additional information on the particular devices, without any additional configuration information being necessar y. The configuration of other relevant data for transfer to the cloud can be carried out simply in the Turck solution by placing a tick at the relevant device. The function is supported by all Codesys

3-based Turck controllers: Turck will first implement the cloud on its IP67 compact PLC, the TBEN-L-PLC, and later also in the TBEN-S and TBEN-L I/O modules, as well as the HMIs of the TX series. Where is the data stored? Turck Cloud Solutions enables the user currently to choose between four different cloud storage options: The right solutions are provided for the customer to enable hosting either by Turck or by the users themselves. Turck also offers solution options specially tailored to customer requirements. The most convenient variant is to have the cloud hosted by Turck. For this, the company works together with major IT center operators, who can ensure the necessary 24/7 support and also the appropriate data security and system performance. This saves the customer from having to think about the necessary infrastructure and support. Turck takes care of this for the customer as a service provider IoT INSIGHTS | 25

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and thus reduces the initial investment in terms of time and costs. As Turck’s cloud solution is primarily hosted on servers in Germany, data security is guaranteed in accordance with German and European data protection laws. On request, customers can also use a server site of their choice, such as in Asia or in the USA. Flexibly adapted The customer can also use the cloud hosted by Turck in t wo versions: Firstly as a cloud with a Turck look – par ticularly suitable for smaller OEMs and end customers wishing to use the cloud service themselves. Alternatively, the cloud can also be implemented in the corporate design of the customer. This customer portal can also be functionally adapted to the needs of the customer. The customer portal is primarily designed for OEMs wishing to offer their customers a machine with a cloud option, which is required to be recognizable as a product of the OEM. Turck cloud on-premises The on-premises variant of the cloud is hosted directly on the customer’s site, so that they have complete physical

control of all data and processes. This solution can be implemented on the customer’s hardware if the appropriate server landscape can be provided and the IT department can provide the necessary support. This installation is normally carried out in a suitable IT environment with air-conditioned server rooms and cannot be carried out directly in the production environment. The benefit of this solution is the fact that customers do not have to connect their private cloud to the internet, but can establish a local connection to their servers from the production area. This solution can be a way for customers with security concerns to enjoy the benefits of cloud-based intelligence without having to store the data externally. For customers who require the onpremises solution but do not have their own IT center, Turck has developed state-of-the-art industrial on-premises server solutions. These do not require fans or moving data carriers and can therefore be installed as IP20 versions directly in the control cabinet or as a future IP67 variant directly at the machine in the field. The onpremises cloud can also be opened for worldwide access in order to open

them, for example for other customers or other corporate sites. Step 5: Cloud applications tailored to industrial processes Tu r c k w i l l g r a d u a l l y e x p a n d the applications and functions implemented on its cloud platform. Frequently required analytics functions such as long-term evaluations, sensor behaviour or log book func tions can then be used without having to configure them manually. Self-learning algorithms will also have a role as par t of the fur ther d eve l o p m e n t of f u n c t i o n s . T h e machine will then learn on its own what is correct (normal) and incorrect (deviant). This estimation will become increasingly more precise the longer operation continues. If the machine regis ter s, for example, a higher temperature value at a sensor, it will know if this is due to the weather or seasonal sunlight, or another reason such as wear. If the solution to the problem is documented by the software, it will be one day possible to suggest a remedy in addition to the diagnostics or notify the right technician directly via smartphone.


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Energy & Substainability

DIGITISING YOUR CRITICAL POWER SYSTEM As the complexity and sophistication of our electrical distribution infrastructure increases, it becomes more important to have the appropriate digital sensors, advanced controls and analytic capabilities. BY MARKUS HIRSCHBOLD, MD, HEALTHCARE SOLUTIONS, SCHNEIDER ELECTRIC.


ECENTLY, I talked about the difficulties faced by facility te a m s i n ke e p i n g c r i t i c a l p owe r f a c i l i t i e s r u n n i n g s afet y, reliably, efficiently, and compliant w i t h re g u l a t i o n s . We l o o ke d a t the many hidden risks that make these goals even more challenging. A fully digitised elec trical power distribution  system gives you the deep insights you need so you’re no longer ‘working blind’.

In this post, we’ll have a look at the specific digital technologies that can help you achieve your continuity and efficiency goals faster, while making your job easier. DIGITISATION IS EVERYWHERE Just about every aspect of our lives has become digitised. Consider the vehicle you drive. If you have a fairly recent model, ever y aspect of its operation is monitored, displayed and,

in some cases, controlled automatically. These advances are making driving safer, more reliable, more efficient, and compliant with regulations like emissions standards. It’s also making driving easier and more enjoyable. Dealing with the complexit y of modern vehicles without the help of digitisation is almost unthinkable. Imagine troubleshooting a problem without a diagnostic scanner. The same is true for electrical distribution systems, which have become increasingly complex, with: ■ More loads, many of which are increasingly power sensitive ■ Many types of loads, such as variable speed drives, that can also be the source of potential power quality issues ■ Onsite generation and storage, IoT INSIGHTS | 27

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needing to be carefully coordinated for power backup, peak shaving, or consuming renewable energy when it’s most economical As the complexity and s o p h i s t i c a t i o n of o u r e l e c t r i c a l distribution infrastructure increases, it becomes more important to have t he appropriate digital sensor s, advanced controls, and analy tic capabilities to detec t , diagnose, a n d co r re c t i s su e s b efo re t h ey cause mission - critical systems to fail. GETTING CONNECTED U n l i ke to d a y ’s ve h i c l e s , p o w e r distribution systems do not come

‘stock’ with complete digitisation; though, in future it’s expected they will. The good news is that your electrical network may already be part of the way there. For example, your switchgear and distribution panels may have digital p ower m eter s  an d  smar t circu i t b r e a ke r s   i n p l a c e t h a t p r o v i d e connectivity capabilities, some with modular options. Even legacy systems can be retrofit with communicating devices and sensors. These upgrades are still ver y cost- ef fective when considering the vast benefits and ROI of digitisation. The global trend in the  Internet of Things is enabling more connectivity

and intelligence in more kinds of devices, from breakers and meters, to power quality monitors and busbar temperature sensors, to equipment with embedded sensors like UPSs and gensets, to automation equipment like PLCs. You can choose from a variety of communication standards, from the affordability of wireless to the highspeed performance of Ethernet. Open, non - proprietar y communications protocols are making it easier than ever to get all these devices talking and sharing information. THE BRAINS BEHIND IT ALL Smart devices in your power network


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A fully digitised electrical power distribution system gives you the deep insights you need so you’re no longer ‘working blind’. we’ll have a look at the specific digital technologies that can help you achieve your continuity and efficiency goals faster, while making your job easier. the full potential of digitisation is realised, letting you see into every corner of your electrical systems, supervise every electrical process, get earl y warning of ever y risk , a n d c a p t u re e v e r y o p p o r t u n i t y to i m p rove p o w e r, e n e rg y, a n d equipment performance. A fully digitised power distribution system will help you optimise safety

for people and assets, while improving reliability and business continuity. It will give you the tools to maximise energy and life cycle efficiency while enabling condition-based maintenance. It will simplify energy and emissions tracking. And for facilities with limited resources, a cloud-based platform can act as your doorway to 24-hour support from expert services.

will perform a lot of metering, logging, and analysis. IoT-enablement means t h a t d a t a c a n b e s h a re d e a s i l y with cloud-based storage and applications, while mobile apps can access each device’s on-board data and functions. All of this means your operations and maintenance personnel get easy, fast access to important information and alarms from wherever they are, with the ability to collaborate across your teams. Above it all are powerful software applications, aggregating and analysing data from across one or more of your facilities. These cloud and facility-based apps are where IoT INSIGHTS | 29

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Energy & Sustainability


TO RESPONSIBLE BUSINESS Smart factories offer efficiencies across the production process. However such intelligence is still slow to fully integrate into the wastewater management process. BY ERIC LAI, ASIA PACIFIC REGIONAL BUSINESS DIRECTOR OF INDUSTRY, GRUNDFOS.


oday technology adoption in the manufacturing industry is non-negotiable. In fact, Zebra Technologies found that half of the manufacturers in the Asia Pacific region will have smart factories, compared to the global average of one third. Smart factories offer efficiencies acros s t he produc t ion proces s , including cloud - based analy tic s dashboards to identify problem areas, industrial 3D printing to eliminate waste, and predictive maintenance to reduce downtime. However such intelligence is still slow to fully integrate into the wastewater management process – which is often viewed as a necessary output of production, instead of a priority area for companies to get right. Water as a resource has always seemed readily available at a reaso nab le p r ice, as compare d to the likes of oil and gas, which

might explain the lack of urgency to automate wastewater treatment and management at the same pace as other parts of the manufacturing supply chain. However, today the confluence of population growth, climate change and industrial pollution is threatening the quantit y and qualit y of water available not only for businesses but for human use. It is the responsibilit y of major producers and manufacturers to place real focus on helping to resolve this water crisis. Water plays a key role in every industry. For example, millions of gallons of water go into making everyday products – for example, 2,500 litres of water goes into making a cotton t-shirt. In China, agriculture and industry account for 85 per cent of water usage (according to Global Risk Insights, 2017).

Digital automation is hence crucial for companies to be part of the solution rather than the problem for three main reasons – tackling pollution amidst the continuing pressure of region’s water crisis, addressing energy consumption in processes, and building a positive corporate reputation. SURVIVING ASIA’S WATER CRISIS Water demand is forecast to increase by 55 percent as more cities in Asia urbanise and populations increase. At t he same t ime, people are competing for diminishing water resources – more than three quarters of the countries in Asia face serious water shortages, according to an Asian Development Bank report. Climate change is exacerbating this crisis. Not only is global warming moving clouds and rainwater away from equatorial regions in long droughts, at


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the same time increasing precipitation is threatening livelihoods for many communities across Southeast Asia who are at risk of flooding every year. According to a study released by Grundfos and Eco-Business Research, 70 percent of sustainability leaders across Southeast Asia predicted that their home country will continue to face extreme weather events over the next decade, taking a significant toll on local economies and infrastructure. Up to 3.4 billion people could be living in water-stressed parts of Asia by 2050. If not managed proactively, the lack of safe, high-quality water supply could pose a real threat to continued growth and prosperity for the region. With that, companies need to do more to ensure that their wastewater t reat ment and management has as limited impac t as possible to the environment, saving our existing water resources. Wastewater pollution is especially problematic in developing countries. In fact, the Asian Development Bank estimates that 80 per cent of industrial wastewater is dumped into waterways untreated across the Asia Pacific region. Such industrial water pollution is resulting in massive health and social costs. REDUCING ENERGY CONSUMPTION Meanwhile, wastewater treatment and management is highly energy-intensive. According to Organica Water, sifting through wastewater and storm water consumes close up three percent of a developed nation’s electrical power every year. Underpinning water movement and treatment throughout the production process, pumps are responsible for a staggering 10 percent of global electricity consumption. However, around 4-5 percent of this energy can be saved, if energy efficient pumps are used. Ensuring that wastewater management is proac t i vel y and intelligently managed is no longer a nice-to-have for companies, but essential for responsible operations.

Industries need to minimise their carbon footprint to combat the effects of climate change. Industry energy consumption is beginning to see greater scrutiny by the government, in line with the Paris Agreement targets as well. Research has shown that a company’s commitment to sustainabilit y has a positive impact on its reputation, especially when it comes to consumers. Unilever found that one third of consumers prefer purchasing from companies they believe are doing social or environmental good. Millennials in particular are demanding sustainability as a priority for companies. Weber Shandwick has also found that consumers want to align themselves with companies with a positive reputation. Around 70 percent of consumers said they would not buy a product if they don’t like the company behind the product – and a poor environmental track record does not reflect well on the company. In today’s climate, a company’s actions to minimise its impact on the environment can no longer be an afterthought to the production process, but a key consideration fac tor that result s in concrete business outcomes. WHAT NOW? The process of wastewater treatment varies from simple tanks, relying solel y on sedimentat ion, to t he refined treatment processes with advanced biological treatment that we know today. Treatment aims at reducing the pollution contained in the wastewater such as bac teria and viruses, ox ygen consuming component s, nutrients, pharmaceuticals, chemical substances and heav y metals before it is discharged to the receiving waters. F o r p u m p m a n u f a c t u re r s l i ke Grundfos, the pursuit of digitalisation has meant incorporating intelligence into its products to make them more intuitive and connected, and thus perform more efficiently. Grundfos’ calls this iSolutions – a range of products

with a focus on connectivity, intelligent monitoring and adjustment features, optimising water efficiency across the entire system. Digitalisation opens the doors to a more sustainable business models that not only allows companies to produce more with less, but also avoids unnecessary waste of resources such as energy and water. For example, pumps play a crucial role in wastewater treatment where dosing exactly the right amount of chemicals is important to reach process targets and ensure the process is safe and reliable. PARADIGM SHIFT NEEDED Water is a valuable resource not only to business but to life. Industries need to take a hard look at their wastewater management process, not only because we are facing a water crisis today, but also because of the f inancial and reputational benefits of reducing energy consumption and limiting our impact on the environment. Technology has played a key role in modernising factories across Asia. And digital automation may be the key to helping us prevent a large-scale water crisis. The digital revolution touches all aspects of our human and physical world in many varied and constantly changing ways and it can answer many of our questions, including: How do we live large with a smaller impact? How can we use less but gain more?

Technology has played a key role in modernising factories across Asia. And digital automation may be the key to helping us prevent a largescale water crisis. IoT INSIGHTS | 31

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Future Of Manufacturing


DIGITAL TRANSFORMATION IN INDUSTRIAL MANUFACTURING Improve profitability and maximise return on capital across the operations and asset lifecyles to enhance competitiveness, improve customer experiences, and cut the hype. BY MATT NEWTON, SENIOR TECHNICAL MARKETING MANAGER, ASSET PERFORMANCE, AVEVA.


HANGING MARKET conditions and shif ting technology landscapes put pressure on industrial businesses. Fluctuating commodity prices and oversupply contribute to capital expenditure challenges. Increased competition and consolidation force businesses to compress construction, engineering and design c ycles. Environmental, quality and safety re g u l a t i o n s a re b e co m i n g eve r more rigorous. Digital transformation is enabling companies to enhance their capabilities, increase their reach and maximise returns across their asset and operations value chains. Pivotal technologies like cloud computing, the industrial Internet of things (IIoT), artificial intelligence, and augmented and virtual reality, are transforming

traditional industrial operations. These innovations represent unprecedented p o te n t i a l g ro w t h o p p o r t u n i t i e s for businesses. How can your business identif y where to invest in such a rapidly evolving market place? What new opportunities does digital transformation offer your business? How can you manage your enterprise’s risk exposure? Digital transformation is a key imperative for leading industrial business leaders to master. UNIQUE CUSTOMER EXPERIENCES We’ve all experienced the hype around the Industrial Internet of Things (IIoT). Vendors in almost every industry site their implementation of augmented and virtual reality (AR/VR), mobility, cloud, and artificial intelligence to disrupt modern industry. But beyond all the

hype and buzzwords, a radical change is occurring. That change is focused on delivering unique and exceptional customer experiences, through digital technology. And it’s impacting almost every industry today. Digital technology can help you to design, manufac ture, deliver, support and maintain products faster, more efficiently, and at lower costs. Key to achieving these benefits is creating a seamless and continual stream of process and production data that is integrated with historic operations information and then contextualised into new insights on your overall enterprise. Data may already exist within the enterprise stored in historian software or 3D models of plants and assets. But new digital tools can tap into these existing data stores and synthesise them with operational data. This process generates improved insights on how to maximise value creation across asset and operations lifecycles. Every digital transformation journey needs to begin with the critical understanding that information and data have become a priceless and strategic


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asset to the enterprise. The faster your team can collect, visualise and analyse data, the faster it is empowered to take insightful action that will benefit your operations and your customers. The overall tac tical objec tive in achieving digital transformation is to create a real-time operational control loop that accurately and efficiently manages your enterprise, based on information and analytics: Real-time operational information is used to understand what is happening in real-time and enables the condition management of asset and operations lifecycles. Historical operational information helps you to understand what has happened in t he pas t to create intelligence around operat ional behaviour of assets. Through operational trends, display of KPIs and dashboards, you can create abstracted views of operational states. Predictive analytics is used for whatif type modelling. Integrating up realtime and historical data enables your team to assess potential outcomes of operational states and behaviours, even accounting for tertiary variables. Deterministic or non-deterministic models can then be applied for openloop simulation and predictive analytics. Prescriptive analytics describes what’s needed to optimise asset and operations lifecycles. Scenario-based guidance is created and delivered through learning elements and closedloop algorithms to enable your team to calibrate planning and scheduling across the entire enterprise value chain. LIFECYCLE MANAGEMENT THROUGH DIGITAL TWINS A Digital Twin is a representation of the physical object in terms of data and information; like a pump, motor, turbine, even an entire industrial plant. Digital Twins enable full lifecycle management of physical assets and processes. This starts with unified engineering, where process design, modelling and simulation are combined with overall plant design to create an integrated engineering environment.

Engineering facilitates the use of common engineering tools and streamlines the handover and revision process. Each plant can draw upon its own digital data “lake” supported by a common artefact repository that spans integrated process design. These resources streamline engineering effort, and make it easier for global teams to collaborate, thereby lowering the total cost of engineering. During the design phase, digital models allow your teams to analyse processes, equipment and operations through multiple simulations to define the optimum approach for safety, reliability and profitability. As assets are deployed and plants commissioned, the Digital Twin is continually updated with ongoing operational and process data such as maintenance and performance records and IIoT sensor information. During operational stages, variations from optimal process and asset design are captured during run-time, and the Digital Twin is automatically updated with this information. Knowing the current state of an asset, the digital model can use predictive learning technology to proactively identify potential asset failures before they occur and even suggest ways to prevent those failures. Creating Digital Twins of assets allows users to optimise performance, reliabilit y and maintenance. Lowcost sensing technology has enabled increased fidelity of your assets operational behaviour. Sensor net wor k s be come anot her dat a source, contributing to the Digital Twin. This is particularly important for legac y asset s t hat were not ‘born digital’. As digital tools such as predictive analytics and machine learning software begin to peer into the physical world through sensor networks and other data sources, a variety of cloud, on-premise and hybrid tools are available to predict equipment failures before they occur. A complete digital Asset Performance Management (APM) solution combines enterprise data capture with asset

management, advanced workflow, mobility, predictive analytics and riskbased management. Work orders a re a u to m a t i c a l l y g e n e r a te d to relieve maintenance issues. Analytic capabilities continue to evolve from predictive to prescriptive– from what will happen to what should be done. THE DIGITALLY EMPOWERED WORKFORCE Digital technology is changing how you c an t r ain and oper ate your people throughout the asset and operations lifecycles. New tools are also improving knowledge transfer and increasing situational awareness throughout your global team. AR/VR technology is quickly gaining traction in industrial applications. Operators can now learn how to safely and effectively operate a plant or facility or perform maintenance on an asset through immersive virtual reality experiences. Another impor tant trend is the move towards mobile technology in industrial applications. When these technologies are coupled with Digital Twin approaches, operators and plant personnel can visualise processes and assets in real-time, live from the f loor of the plant . This s tep change in operational processes c an acceler ate new insight s on enterprise operations and improve knowledge transfer between new and experienced operators. HOW TO GET STARTED Digital transformation is par t of a journey towards continuous process improvement involving the collaboration of people, processes and asset s t hrough technolog y. It doesn’t happen all at once, but instead builds momentum over time as people, processes and assets are digitally fused together to bridge the operations technology and information technology gap. Star t small in your s t rateg y and adoption. But start now to maintain or improve your competitive level and market position. IoT INSIGHTS | 33

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Future Of Manufacturing



Implementing the Industrial Internet of Things (IIoT) makes factories smart and confers a host of operational benefits. CONTRIBUTED BY INDUSTRIAL IOT TEAM, ADVANTECH


A N U FAC TU R I N G operations occupy a unique position in the automation technology landscape. Machinery and production automation systems need to be advanced enough to deliver high performance and integrated enough to provide economical operation, yet must be based on mature products and methodologies offering sufficient reliability. ‘Cut ting edge’ technology can be employed, but ‘bleeding edge’ technology is usually not warranted. How is the right balance achieved? In fact, why push for tightly integrated operational information and other advanced functionality if individual pieces are running ‘good enough’? The main reason is because harvesting, processing and analysing the correct data helps operational personnel make the best informed choices at their facilities, and enables management to optimise strategic plans throughout multiple locations. Simply put, advanced data analytics i m p r o v e s e f f i c i e n c y, r e d u c e s maintenance, and creates a safer work environment. F or tunatel y, in recent year s a number of device, communication, a n d s o f t w a re c a p a b i l i t i e s h a ve developed in an interrelated manner

— making it easier to extract and analyse manufacturing data. When combined effectively, they can elevate ‘business as usual’ manufacturing to ‘smar t’ manufac turing. In fac t, in many ways automated manufacturing is already smar ter than one might expect. Machiner y and process plant s commonly employ control systems with many types of sensors. While the highly touted Internet of Things (IoT) concept promises that one day all devices will become networked information providers, it turns out that the Industrial IoT (IIoT) already has countless sensors and other devices repor ting data to higher level automation systems. Where the IoT is directed toward consumer convenience, the IIoT takes a laser focus on efficiency and safety. THE TIME TO IMPLEMENT THE IIOT IS NOW Manufacturing businesses worldwide want to implement the IIoT to gather more data and improve operations. While these objectives have been present for many decades, it is now much more feasible to implement the IIoT because of the technology advancements as listed in Table 1 and expounded upon below.

TABLE 1 WHY IMPLEMENT THE IIOT NOW? ■ Most new devices offer smart


■ Methods exist to enable

traditional devices to become smart

■ Controllers are proficient at

handling smart data

■ Standardised wired and

wireless Ethernet networks are economical, powerful, and pervasive

■ Specific industrial networking

formats are common

■ Open interfaces and numerous

drivers are available to facilitate economic integration ■ Communication methods are

suitable for private and public clouds

■ Mobile visualisation offers new

ways to bring data to users

■ Big Data harvested from the IIoT

can be more easily analysed.

■ Smart manufacturing adoption

can occur in steps, with benefits realised along the way


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In past years, devices and equipment typically offered minimal connectivity. One reason is that the technolog y and s tandards were not always in place, and another was just to cut costs by avoiding a niche connectivity option that few customers wanted. Sometimes a vendor might restrict connectivity to make their device more exclusive, or to avoid extra complications taking them away from their core business. Those days are gone, and now connectivity is the ‘killer app’ more often than not. Consumer devices such as phones, watches, appliances, and even sneakers are commonly able to connect and interact with ea c h ot h e r. S i m i la r l y, i n d u s t r ia l devices have moved from awkward a n d p ro p r i et a r y co m m u n i c a t i o n interfaces to standardised net works and protocols, of ten Ethernet-based. In today’s market, industrial manufacturing demands connectivity from most every device purchased. Even if the functionality is not immediately needed, it helps to future-proof investments. CONNECTING ISLANDS TO THE MAINLAND M any pro duc t ion p lant s consis t of ‘islands of automation’. Of ten, there are many automated skids or systems with minimal interac tion among them, even though taken as a whole they form a production line. Sometimes these systems have been assembled and grown up over a long period of time. What they have in common, though, is that each island is operated by one or more controllers. Industrial controllers have more than enough power to per form some data processing, but may not share common communication protocols. F o r t u n a t e l y, t h e r e a r e m a n y flavours of ‘gateways’ or ‘bridges’ available. These can take the form of dedicated configurable devices, or PCs running various drivers and communicat ion sof t ware. These gateways can translate per tinent information from existing systems

into a suitable format for higher level integration. When disparate controllers and the systems they control are capable of being connected, some huge informational advances can be achieved. Such systems can be interconnected to supervisory alarming and historian systems, consolidating key information from a whole production line into a few ef fec tive displays or reports. For many operations, when subsystems are integrated in this way, it is possible to achieve a transfer of upstream and downstream information and improve the production flow. Or, when produc tion goes down it is possible to use the integrated information to identify and eliminate the root cause, promoting Overall E q u i p m e n t E f fe c t i v e n e s s ( O E E ) tracking. These are just a few of the benefits of a connected factory. As TechRadar.com puts it: “In the wider economy, the IIoT is critical in reducing unplanned downtime of production facilities and plants.” NETWORK STANDARDS ENABLE INTEGRATION Standardised networking methods are a key driver towards making a factory smart. Of course, the rising prominence of Ethernet variants in the commercial and industrial arenas has been important, as vendors can easily and economically leverage wired and wireless versions of Ethernet for industrial components. However there are also many well-established industrial networking technologies, such as DeviceNet, CAN and IO Link to name a few. Every industrial network tends to have some path or method to interconnect with Ethernet. There are enough options such that an optimal solution can be found for any given situation. W hi l e t h e n et wo r k i n g m et h o d makes the connection, it is important to remember that the communication protocols require equal attention. These protocols define the ‘language’ that devices speak. Just as there are several

common and established networking methods, so it is with protocols. For industrial applications, some of the major players in the Ethernet world are EtherNet/IP, Modbus TCP/IP and Profinet. There are other protocols optimised for specialised applications and industries, such as for power equipment or motion control. The takeaway is that while there is not one protocol to rule them all, there are certainly several open protocols in common use. MOVING INFORMATION TO THE NEXT LEVEL Assuming that technical and cost barriers are overcome for gathering i n f o r m a t i o n i n a s m a r t f a c t o r y, what are the next steps? The first is typically to make the information visible to operators and managers so t hat t hey can make informed decisions. This used to mean tabular lists or printouts of numbers, but information presented in this manner is difficult for people to process. That is why so many variants of graphical display software and HMI packages have been developed. Earlier generation HMIs used to just reside locally to their associated factory processes. Today’s HMIs use networking, the Internet, and public or private cloud services to extend their reach to wherever users are. Instead of just a single machine, produc tion line, or fac tor y being coordinated — it is now possible to manage multiple factories across the world in a more organised manner. The Internet and cloud services are suitable for publishing smar t manufacturing information to laptops, tablets, and smartphones, putting the information direc tly in user’s hands. Many visualisation software packages have features specifically adapted to mobile device operation. It has become especially prevalent and useful for mobile devices to present a streamlined ‘dashboard’ view which shows only the most important information in an easy-toread format. IoT INSIGHTS | 35

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End user expec tations from HMI packages have soared, due to consumer familiarit y with high p e r fo r m a n c e h o m e c o m p u t e r s , phones, and tablets. The graphics must be informative and must also look good and easy to use. HMI’s that take advantage of multi-touch swipe and zoom gestures position themselves that much close to the everyday user. Fortunately, browserbased produc ts like Advantech’s WebAccess are available that of fer a familiar user experience, are easily extendable to all types of devices, and are able to publish the information conveniently over the Internet. But the smar t fac tor y is about much more than just dishing out p re t t y g r a p h i c s . A t t h e f a c to r y level, the proper flow of status and command information is crucial for Manufacturing Execution Systems (MES) that strive to track and record the production of finished goods. At an even higher level, data is required for Enterprise Resource Planning (ERP) and business logistics systems to be effective. A real opportunity exists when all of the Big Data can be har vested from many IIoT sources, and then ef fec tively analysed to reveal inefficiencies that can be overcome or trends that can be intelligently revectored. Gathering enough of the right information can enable users to make discoveries that would be otherwise impossible. Besides just improved throughput, IndustryWeek. com points that benefits can be found in material costs, energy efficiencies, labour costs, maintenance costs, and the cost of adverse quality. Keep in mind that implementing smart manufacturing is not an all-ornothing proposition. If fact, adopting smar t technologies and methods can (and of ten should be) carried out in steps. This reduces the initial cost, and allows an organisation to determine which pieces of the smart factor y yield the most benefit for their situation.

The time to implement the IIoT is now, and here are the specific component s which make up a typical IIoT implementation in a manufacturing plant. IIOT BUILDING BLOCKS Dat a f low ing t hrough t he smar t fac tor y can be imagined as a pyramid structure. Another good reference is ISA-95, which defines industrial automation interface concepts from the lowest (Level 0) to the highest (Level 4) level in terms of both functionality and immediacy. If ‘Level 0’ is considered to be the actual physical process, then the smar t manufacturing foundation begins at ‘Level 1 ’ and consist s of the sensors and field devices. Table 2 lists the main IIoT building blocks and this section describes each piece and shows how they fit together. Traditional sensors were historically hardwired and offered only a single basic process signal, but today’s smart sensors are networked and provide additional process signals and device diagnostics. They can maintain on-board calibration data, and technicians can interact with these sensors remotely. Think of a flow transmitter that also provides temperature and pressure information, and can alarm when the data readings are suspect. More ad vanced analy ser s can simultaneousl y prov ide mult iple sensed variables for complex


Smart sensors Network-capable I/O Controllers – PLCs, PACs, DDCs, Proprietary Network switches, media converters, routers, security Visualisation, fixed location Visualisation, mobile Business strategy systems

parameters such as pH. Barcode readers and RFID tags are key ways to establish material tracking. Many other types of smart sensors and field devices are available, all capable of providing data to higher level systems. FROM SENSORS TO I/O AND CONTROLLERS Many varieties of net worked remote I/O modules are available to bring hardwired devices into a control system. Some st yles are panel-mounted, while others can be installed in harsh areas. The main benefit of smart I/O is reduced field wiring, and the ability for designers to tailor the exact right product to the need. Sometimes the issue is less about how to bring the data into the system, but more about how to transport it effectively to where it can be used. When it comes to the IIoT ecosystem, DesignNews.com says: “Hardware manufacturers need to ask what can be done to simplify the connectivity stack from the field devices being measured up to the application level. It needs to be as easy as possible to connect devices and physical things at the edge of networks up through the application stack3.” Smart devices, whether they are I/O modules or sensors, often have the ability to communicate directly to higher level PC applications used for data analysis and other purposes. However, it is often most appropriate to gather these field devices into ‘Level 2’ controllers, whether they be PLCs, PACs, DDCs, DCSs, or other designs. Some controller types are associated with specific processes or industries, but there are many examples of crossover applications. For example, even though a PLC is of ten considered for discrete manufacturing, there are times when it serves the role commonly filled by an HVAC DDC system. Controllers are useful to perform pre-processing of data from field devices. Sometimes they will scale it, or will consolidate several pieces of


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information into a consistent context. For instance, a smart flow controller can be evaluated for f low alarm conditions only when it is expected to be running, and it can be monitored for on-board faults at all times. NETWORKING NUANCES Networking forms the backbone of smart manufacturing at all levels. When it comes to Ethernet, switches and routers are often used, as industrial suppliers have modified commercial Ethernet component s to work in demanding factor y environments. Wi-Fi Ethernet also finds applications in factory environments, usually for supporting flexible and often mobile HMI visualisation. There are two more networking concept s that exist in traditional networking, but are specially adapted and enhanced for the industrial IIoT market due to the critical nature of the factory environment. The first is fastreacting redundancy, needed to keep I/O and smart devices online, especially devices that are being commanded to take actions affecting production processes. The second is security appliances capable of keeping the world (and hackers) out of the factory, while allowing the necessary data to securely flow in and out. THE HIGHEST LEVELS OF SMART MANUFACTURING H M Is are ‘ Level 2’ s ys tems that facilitate detailed plant operations. They c an b e P C - base d r unning s o f t w a re , o r a m o re d e d i c a te d

hardware type. Plant networks supply HMIs with the information they need, either directly from field devices, o r m o re co m m o n l y t h ro u g h I /O and controllers. These HMIs can be flexibly located in main control rooms, on machines, in maintenance and management locations, or elsewhere. More recently, it has become common to configure consumer-grade or industrial-grade tablets as HMIs and troubleshooting stations that can be carried around the factory. One of the real game changes in HMI space over the past decade is the emergence of browser-based products like Advantech’s WebAccess. No longer are users tied to specialised h a r d w a re , o r d i f f i c u l t s o f t w a re installations. Just as PCs and Ethernet successfully leveraged commercial technology into the industrial arena, browser-based products prospered by offering much the same end user experience as traditional software, but at a lower price point and requiring near-zero configuration on the end user’s device. These products are capable of providing an HMI interface anywhere within a facility, on all types of mobile devices, and throughout the world via the Internet. Not only that, but they can offer advanced features such as integration with Excel, Google Maps, and video streams. Residing above HMIs are ‘Level 3’ MES and ‘Level 4’ ERP systems. These sof tware-based systems typically run on servers located at a given production plant, or even far away in

a corporate office. Software systems at each progressively higher level are typically less ‘real-time’ than at lower levels. While MES and ERP systems are a subject of their own, they both require close integration with lower level sensor and control systems in order to be effective. A comprehensive smart manu fac tur ing solu t ion buil t on an IIoT foundation is necessary to power operat ions and business management. These IIoT building blocks can be combined to create real-word applications to deliver specific benefits, as shown in the following example. CONCLUSION For today’s factory, superficial good looks are not enough to prove that things are running at their best . Ins tead, additional improvement opportunities must be actively sought to create a smart factory. One way to do this revolves around obtaining more operational data and putting it to work. Any process of improvement is based on quantitative analysis of measurements, and fortunately the IIoT opens up a whole new world of quantifiable data. Connectivity is no longer a unique luxury, as it has instead become a baseline requirement. Intelligent machiner y leads to a connec ted factory, which in turn provides the platform for smar t manufacturing. Businesses ever y where want to leverage the IIoT in the most expedient way possible, and for tunately the technology is available now to make this happen. The building blocks are smar t devices, methods for making legacy equipment smarter, robust networking, and a wide variety of software — all of which are readily available to build into new facilities or integrate into existing operations. The widespread availability and ease-of-use of these enabling technologies allows end users to focus less on how to harvest the data, and concentrate more on improving operations. IoT INSIGHTS | 37

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Future Of Manufacturing




T IS A question I got to thinking about as I reflect on the initial release of our Logix control platform. When Logix was first released, it introduced new techniques and methods to address long-standing challenges. Not only did it have more memory and fas ter per formance than it s predecessor, it also allowed users to converge dif ferent production disciplines – like discrete, motion,

process and safety – into an integrated plant-wide architecture. Looking ahead to the nex t 20 years, the Logix platform and other digital technologies offer even more transformative potential – to entirely change how we design, manage and staff operations. But that potential still eludes many in t he indus t rial world because concepts like Industry 4.0 and smart

manufacturing are too “blue sky” and difficult to translate into real-world improvements. While a PLC is tangible and its performance is measurable, something like Industry 4.0 is abstract and bound only by the limits of our imagination. With this in mind, let’s look at three concrete, achievable examples of how operations will change in a smart factory within 20 years. PREDICTIVE ASSET MAINTENANCE Some organisat ions today have implemented this capability, but most


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The idea of humans and robots working side by side is becoming more prevalent – and more acceptable – thanks to improvements in safety technologies.

own and continue running without any servicing. COLLABORATIVE ROBOTICS The idea of humans and robots working side by side is becoming more prevalent – and more acceptable – thanks to improvements in safety technologies. Instead of using a safety barrier to physically keep people away from robots, collaborative robots can detect a human’s presence and either slow down or stop based on a person’s distance. This has the potential to enhance both safety and productivity. Just imagine robots taking over the more physically demanding tasks of production, like palletizing and lifting heav y objects. This could reduce the strain put on workers and, thus, potentially reduce worker injuries. It could also help keep companies productive through challenges like skills shortages.

still use reactive or calendar-based maintenance. Predictive asset maintenance works like this: analytics software collects relevant data from PLCs, sensors and other sources, then looks for known pat terns that predic t failures or anomalies that could lead to a failure. This allows maintenance technicians – or perhaps, someday, robots – to fix problems in production assets before they lead to a failure. In the coming years, there will even be self-healing assets, including PLCs that can make adjustments on their

MASS CUSTOMISATION Advanced control and more intelligence closer to the production p ro ces s w ill help make greater customisation possible – and transform some industries in the process. J u s t imagine w hat biop har ma production could look like 20 years from now. Fixed, s tainless- s teel equipment will likely be gone. Instead, workers will move equipment, materials

and tubing from one production area to another. Mobile visualisation will help guide those workers through everything from setup to production. And a modern distributed control system (DCS) will simplify connections and help make sure equipment and materials are always in the right place. Such a facility will be able to quickly produce low volumes of customised products to meet demands for more targeted and personalised biologics. Using solutions like pretested and validated equipment, it will have the potential to reduce start-up times from years to mere months. BRINGING TRANSFORMATION TO LIFE Today’s new control and information technologies will help you realise these and other capabilities in your smart factory of the future. But technologies alone won’t be enough. You need a digital transformation strategy that ties your investments to defined problems or outcomes, creates successes that can be replicated elsewhere in your operations and creates a foundation for continuous improvement. Otherwise, you may find in 20 years that your operations aren’t significantly different or better – but those of your competitors are.


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