Making the Industrial IoT a Reality. Tom Craven VP of Product Strategy RRAMAC Connected Systems

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1 Making the Industrial IoT a Reality Tom Craven VP of Product Strategy RRAMAC Connected Systems

2 Making the Industrial IoT a Reality What is the Industrial Internet of Things and when will it become a realistic possibility in my industry? What are the potential positive and negative impacts of the current state of IIoT infrastructure? The missing link: What is really holding you back from complete connected manufacturing? Should everything really be connected or is it possible to go too far?

3 What is the Industrial Internet of Things? The Internet of Things (IoT) is the network of physical devices, vehicles, buildings and other items embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data. The Industrial Internet of Things (IIoT) is the use of Internet of Things (IoT) technologies in manufacturing.

4 Features of the IIoT Information at your fingertips Web Dashboards Mobile apps Alerts (Text, , or Push Notifications) Analytics to turn logged data into actionable information Predictive Maintenance Downtime Analysis Order Tracking and Traceability Energy Management Etc. Seamless Data Flow Between Software Systems

5 Benefits of the IIoT Reduced Downtime Product Differentiation (Enhanced User Experience) Reduced operating cost Unattended operation Fewer Service Trips Automatic Reordering of Consumables Eliminate Manual entry time and errors Reduced Onsite Inventory Improved Quality Improved Throughput Reduced Energy Cost Regulatory Compliance

6 Industrial Internet - Cisco

7 GE Mind + Machines 2016

8 IIoT Example from 2006 Application: Railroad Snow Melters Industry: Transportation Category: Predictive Maintenance Features: Fuel Monitoring Live Camera Snapshots Record Weather Data Energy Cost Savings Report Benefits: Maximize track availability Reduce Fuel Costs Delaying a single train costs about $1400 per hour Remote connectivity for a track switch costs less than $700 per year

9 Application: Seed Coating Industry: Agribusiness Category: Selling Consumables Features: Dashboards and Text Alerts Interface with SAP Interface with ServiceMax Benefits: Reduce Downtime Chemical Reordering Example from 2010

10 RRAMAC EdgeScout Applications Application: Grain Storage Monitoring Industry: Agribusiness Category: Predictive Maintenance Features: Dashboards and Text Alerts Benefits: Prevent Inventory Loss Notification Trigger Prevented loss of a $250K remote asset

11 Application: Battery Monitoring Industry: Energy Category: Equipment Health Monitoring Features: Dashboards and Text Alerts Benefits: Reduce Downtime Verify Power Availability RRAMAC EdgeScout Applications

12 Application: Dust Collection System Monitoring Industry: Manufacturing Category: Safety Features: Dashboards and Text Alerts Track Maintenance Events Benefits: Protect Air Auality Sell Replacement Filters RRAMAC EdgeScout Applications

13 Application: Extrusion Industry: Manufacturing Category: Overall Equipment Effectiveness Features: Diagnose Equipment Failures Track Setup Parameters Analyze Settings vs Performance Program Downloads Benefits: Reduce downtime Improve quality RRAMAC EdgeScout Applications

14 Application: LNG Delivery System Industry: Oil and Gas Category: Provide Web Dashboard Features: Dashboards and Text Alerts Benefits: Increased Sales Additional Revenue RRAMAC EdgeScout Applications

15 The Industrial Internet of Things Today Metal Fabrication Industrial Saws Waterjet cutting machines Polishing/Finishing systems Welding Press Agricultural Applications Center Pivot Irrigation Seed extrusion Seed coating Bin Monitoring Rail Locomotives Snow Melters Generators Battery Monitoring Video Cameras Oil and Gas Compressors Tanks Fuel Delivery Cooling Towers Energy Generators Cellular Towers Lighting Energy Management Water/Wastewater Pumping Stations Water Flow Leak Detection Mobile Water Treatment Systems Tank Monitoring Car Wash Suppliers Construction Equipment Dust Collection Systems Vibration Analysis

16 What are the potential positive and negative impacts of the current state of IIoT infrastructure? Positives Ethernet connected PLCs, I/O, Operator Panels, etc. Plantwide Ethernet with Firewalls Negatives No single dominant IIoT protocol Most industrial ethernet enabled devices have little security

17 Cloud based IIoT EdgeNode Functions PLC communication (native protocol) Data buffering and aggregation Secure Connection to Cloud server Controlled access to PLCs Cloud Server Plant data storage Web dashboards, reports, alerts Communication to ERP, MMS, etc. ERP Cloud Hosted System Cloud Server Edge Node PLC Maintenance Security matters Access to existing equipment matters Specific protocols matter less

18 The missing link: What is really holding you back from complete connected manufacturing? Security Our customers will never let us connect Expertise We don t have the expertise Current Infrastructure Our installed products are not IIoT ready" Capital It s not in this year s budget ROI - We have no idea what it will cost

19 Understanding Security Concerns Can anyone on the internet access my equipment? Never use public IP addresses to access equipment Usernames and passwords are not adequate safeguards Examples of commonly used internet applications with security Online Banking and Credit Card Purchases SAP Salesforce.com Office 365 Trust No One may not be the answer TNO can result in unsafe workarounds Proactively manage security

20 Why VPN is Not the Answer VPNs connect a user to a network Firewalls need to limit access Incoming firewall security hole IP Address conflicts between sites No Central User Management Users must be configured at every site Users connect to one site at a time Typical VPN Architecture Bob Sue Joe Bob, Joe, Sue Bob, Joe, Sue Bob, Joe, Sue Site A Site B Site C

21 A Cloud Hosted Architecture Centralized User Management Unique User Login for every user Single login for authorized sites Users privileges can vary Password rules enforced Access is easily revoked Temporary access can be granted to subject matter experts Cloud Hosted System Bob Sue Joe Bob, Joe, Sue Site A Site B Site C

22 A Cloud Hosted Architecture Connect Out, Not In Connect via open port or proxy server SSL/TLS Security Certificates AES Encryption No incoming VPN access Little or no IT configuration changes No network browsing by remote users Cloud Hosted System Bob Sue Joe Bob, Joe, Sue Site A Site B Site C

23 Perceived Barriers to IIoT Security IT Friendly, Easy to setup/manage Expertise System is setup and managed by experts Legacy Equipment Device Specific Access Control Capital ROI Minimal up front investments Defined investment allows measurable ROI Cloud Hosted System Bob Sue Joe Bob, Joe, Sue Site A Site B Site C

24 Should everything really be connected or is it possible to go too far? Use a phased approach Define measurable ROI Allow for future enhancements Additional data points and/or devices Advanced analytics Easy connectivity to ERP, MMS, etc Limit scope to deliver specific Phase One ROI

25 Questions? Tom Craven VP of Product Strategy RRAMAC Connected Systems (844)

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