Maciej Kranz - Building the Internet of Things

Cover design: Paul McCarthy

This book is printed on acid-free paper.

Copyright 2017 by Maciej Kranz. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for damages arising herefrom.

For general information about our other products and services, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data has been applied for and is on file with the Library of Congress.

978-1-119-28566-3 (hardback)

978-1-119-28567-0 (ePDF)

978-1-119-28568-7 (ePUB)

To my wife Kasia

We are inundated with hype around Internet of Things (IoT) today. There is a need for a book like thisa practical guide that separates the hype from realityto direct us to what's practical and immediately valuable about IoT and how we can start today and derive tangible benefits tomorrow.

Today's reality is that in a world of more than 7 billion people, there are 70 million who are joining the middle class annually. This growing middle class generates $8 trillion in consumer spending, and their demands require manufacturing companies to be more productive, more sustainable, more flexible, and more cost competitive. Manufacturers must also ensure global compliance and effectively manage enterprise risks while improving the connectivity across their business enterprises.

The Internet of Things will significantly impact and change how global companies conduct business. IoT technologies will transform the manufacturing environment; it will change more in the next 10 years than it has in the past 50 years. Cisco estimates there is $3.9 trillion of value in manufacturing alone for IoT, one of the largest sectors to benefit from this technology.

The convergence of information technology (IT) and operations technology (OT) has brought us to an inflection point for realizing a vision that we call The Connected Enterprise. The foundation of this vision is our belief that the future of manufacturing is based on standard unmodified Ethernet and open systems. The combination of information in the two worlds of IT and OTseamlessly and securely connecting production data with business data and informationresults in transformational benefits. And IoT accelerates The Connected Enterprise.

Manufacturers still have a long way to go to realize the full benefits of The Connected Enterprise and the fast-emerging IoT. In a January 2015 Industry Week survey of 581 manufacturing executives and managers, fewer than 28 percent said their plant floor was Internet-enabled. Only 8 percent of larger companies with sales over $1 billion described their organization as completely ready to benefit from the new IoT technologies. Thus, we need to accelerate the adoption of IoT technologies.

IoT starts with smart assets that are securely networked over an open, standard network (Ethernet). We realize the full value of IoT by complementing smart, networked assets with contemporary technologies such as scalable computing, information management, analytics, and mobility, to create high-value outcomes such as zero downtime and reduced energy consumption. The Connected Enterprise accelerated by IoT technologies delivers unprecedented benefits in productivity, sustainability, and global competitiveness.

Rockwell Automation is proud to be an early pioneer of IoT since 2005. Working with Cisco, we knew that this new technology would lead the industry through a major transformation, and we are committed to leading this transformation together. Through innovative collaboration on products, services, and educational initiatives, we are helping companies achieve successful convergence.

Our collaboration adopted a phased approach. In Phase 1, we initiated joint product development. So far, we have developed more than 50 products together. We joined forces to drive network migration to Ethernet/IP. We actively engaged with the standards bodies to chart the migration plans, combining the best of both IT and OT worlds.

In Phase 2, we worked on joint architecturesfirst a converged plant-wide Ethernet (CPwE), then more recently the Secure Industrial Network. In Phase 3, we moved to building joint solutions. Subsequent phases enabled new business models (CAPEX to OPEX), including pay-for-production performance approaches. Now we are working together to address the skilled workforce gap with joint certification programs. The history of our engagements alone present a good set of lessons learned for anyone working through the adoption of IoT.

Over the past 11 years of working with Maciej Kranz, Rockwell Automation and Cisco have successfully deployed joint products, architectures, and solutions to over 10,000 customers globally. In this book, Maciej has taken the lessons learned from our IoT journey and shares them with readers from all industries. Maciej, one of the pioneers of IoT, has masterfully captured best practices and combined them with practical guidelines to help readers begin their own IoT journeys.

Our customers continue to be inundated with IoT discussions. This practical guide helps differentiate the excitement from reality and provides pragmatic advice on starting your own journey along with advice on planning for the future. I recommend business and technical managers from every industry read this book to understand how to achieve faster innovation and higher productivity from a successful implementation of IoT.

Keith Nosbusch
Chairman, Rockwell Automation