www.tttech.com

Georg KopetzCo-Founder and Member of the Executive Board at TTTech

georg.kopetz@tttech.com

Industrial IoT: How it is Fundamentally Changing our Business and Economy

Technology and Business Strategy: Inspired or Imposed?

2

Technology

• Most changes in the world today are due to changes in technology.

• Hence, it is vitally important to understand how technology evolves and how this evolution impacts our companies.

• Technology strategy aims to enable us to understand the technology drivers to be able to change their strategies before they are forced to by the business environment.

Business Environment

Company Strategy

CHANGES

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Emergence of the Digital Industrial Enterprise – Are you investing?

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Industrial Internet of Things changes investments and valuecreationDigital Divide

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Value Gains of Industrial Internet is huge

4

What happens when 50 billionmachines become connected?

OT is virtualizedPredictive analyticsMachines: Self healing & automatedMonitoring and maintenanceis mobilized

Productivity: Employees andCompanies benefit: Connected machines and data could eliminateup to Trillions in waste across industries

What Do They Have in Common?

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Boeing 787

© N

AS

A

NASA Orion Vestas Wind Turbines

Audi Piloted Driving Prinoth Leitwolf

Thales Railway Signalling

Reliable Networks and Safety Controls from TTTech

TTTech Company Key Facts

Globally oriented high-tech company, headquartered in Vienna, Austria

Innovation leadership - successful transfer of ground breaking research at TU Vienna (Prof. Kopetz) to high-volume production

Privately held joint stock company with solid financial base and diversified shareholder basis(GE Ventures, Infineon and Audi)

>450 employees with offices in 10 countries

Flexible supply network with leading industry partners and research institutions

Facts

Shanghai (CN)Beijing (CN)Nagoya (JP)AS

IABoston (MA)Bay Area (CA)

NORT

HAM

ERIC

A

0102030405060708090

100

Gross Performance in MUSD

2009

2014

2011

2012

2013

2010

2015

2016

For

ecas

t

HQ Vienna (AT)Ingolstadt (GER)Brixen (I)Bucharest (RO)Brno (CZ)Budapest (H)

EURO

PE

IoT Trends in Critical Applications

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Autonomous Driving

$1.9Trillion

Economic impact of near autonomous cars by 2025

IEEE TSN and AVB emerging as keyrequirements for automotive Ethernet backboneGuarantee of Service for autonomous operationAvailable on pre-standard solution from NXP and Intel/Altera today

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© McKinsey & Company

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Safety and Convergenceof Networks

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Integrated safety and non-safety applications over Deterministic Ethernet with TSNSafe and secure human-machine collaborationMassively increased requirements for machine availability by IT/OT network convergence

Embedded device will be safety relevant by 2020

Every 2nd

© Honeywell International Inc.

Industrial IoT

25+ BillionEmbedded and intelligent systems by 2020

Smart factory – converging IT and OT using Deterministic EthernetSeamless and secure access to data from sensor to cloudUnified communication architecture –OPC UA over TSN

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© McKinsey & Company

The IndustrialIoT Opportunity

Industrial Control:A 200 bn USD market by 2020

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121,7780,64

Oil & Gas

Electric Power Generation

Food & Beverage

Chemical

Machines

AutomobileManufacturing

Electronics

ProcessDiscrete

Industry 4.0 - Converging IT with Industrial Systems (OT)

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IT Servicesfor Machines

© Renesas

3 Key Elements for Changing the Industrial Infrastructure

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DeterministicEthernet (TSN)

OPC UA over TSN

Fog Computing / Edge Cloud © Beckhoff© Cisco

We Have Seen this Before… VOIP

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Convergence of critical communication over data networksDisruption of propriety technologiesFormer market leaders have now disappeared Today - open, standard and interoperable

Witch Cisco and TTTech: From Voice over IP to Control over IP

Deterministic Ethernet

Guarantee of Service forIndustrial IoT

17Latency

Mes

sage

Fre

quen

cy

Quality of ServiceBest Effort

Time-Sensitive

Guaranteed maximum latency is crucial in Industrial IoT applications

Deterministic Ethernet guarantees critical communication in converged networks

Technology Evolved from Aerospace and AutomotiveTTTech has a long history of delivering solutionsbased on scheduled real-time networks

1998 now2006

Delivers first time-scheduled networking solutions to customers

Develops Time-Triggered Ethernet (SAE AS6802) used in NASA Orion space shuttle (first flight 2014) and Sikorsky’s high speed helicopter

Supporting standardization of core elements of time-triggered solution in IEEE 802 via TSN task group

Deterministic Ethernet (SAE AS6802, TSN) from TTTech deployed in autonomotive mass production

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Standardization as IEEE TSN

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A number of IEEE 802.1 standards due for release early in 2017

OPC UA TSN

OPC UA TSN: A Common Language for Industrial IoT

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ü Machine safetyü Robustnessü Real-time (µs)ü High availability

ü Performanceü Securityü Cloud Computingü Virtualization

TSNThe Open platform

for Industrial IoT

oT IT

The Automation Pyramid: Soon to be Ancient History?

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Rigid infrastructure with separation between levels of functionalityLevels connected by dedicated, specialist networksData exchange only via gateways or proprietary systemsDifficulties to transparantlyaccess data at the cyberpyramid (machine) level

Creating a Flexible IoT Infrastructure with Deterministic Ethernet

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OPC UA over TSN: one unified architecture for all communication infrastructure elementsLogical machine/control boundaries are dissolvedDirect access to machine data from ERP/MESReal-time and non-real-time domains integrated OPC UA provides leading technology of proven security concepts

Learning from the Internet Experience: Digital Platforms and Open Innovation win.

Fog Computing

What is Fog Computing?

“A system-level architecture that distributes resources and services of computing, storage, control and networking anywhere along the continuum from Cloud to Things.”OpenFog Consortium

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Real-time Fog Computingwith Deterministic Ethernet

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TTTech has invested in and is working with Nebbiolo Technologies, a leading fog computing expert company based in the Silicon Valley, leveraging their combined key expertise in IT and OT.

Fog Node

Deterministic Networking

"OPC UA over TSN“from Sensor to Cloud

Real-Time Controls

Functional Safety

Security

Data Analytics andVisualization

Real-Time DataAggregation and

Event Distribution Chandra Joshi (VP of Engineering & Founder), Flavio Bonomi (CEO & Founder) und Kannan Devarajan (CTO & Founder)

Real-Time Fog Architecture enables Convergence of IT and OT

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Big Data AnalyticsSensors Actuators &

other I/O

Robots/Machines

Tools

Aggregation DE Switch (real-time, reliable, safety-enabled)

Edge FogNode(Soft PLC, DE Switch, dataaggregation, rule engine)

Core FogNode(MES platform, DE Switch, data vizualization)

HMI

Reliability, real-time and safety domain

Cisco Partnership

Partnering with Cisco

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Together with TTTech we are working on improving the core standard networking technologies within IEEE 802.1 Ethernet to guarantee a more precise delivery of information in a certain timeframe. Deterministic Ethernet technologies provide a guarantee for critical traffic in a converged network, enabling critical and real-time operations (OT) to be connected with IT functions. Such benefits are the reason why Deterministic Ethernet is becoming the new common language for Industry 4.0.Paul Didier, Internet of Things Solution Architect at Cisco

“

”

Cisco and TTTech driveDeterministic Ethernet

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Cisco IE4000 with Deterministic Ethernet launched next year

TTTech Switch IP insideTTTech Configuration Engine inside

Opportunities in 2016

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TTTech is already working with customers to integrate Deterministic Ethernet, OPC UA and Fog Computing todayWork with TTTech and Cisco on brownfield or next generation industrial IoT projects – start today in POC

Cisco IE 4000 Nebbiolo Fog Node TTTech Akro Switch

Conclusions

Conclusions

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Big disruption in Industrial Automation (>200 bn USD market) and Automotive Market (ADAS and In-Car Networks > 100 bn USD) is happening NOWOpen, standard Deterministic Ethernet is the key enabler for convergence of IT and OTCloud moves towards Fog for real-time applicationsDeterministic Ethernet switching solutions from Cisco and TTTech available soon

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