smart and sustainable world using internet of things (iot) for industrial automation

76
We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden. Audencia Nantes School of Management, France Based on External doc. no. Author Deepak Shivdutt KANDPAL Project IoT for Industrial Automation Approver Dr. Jonathan SEDDON Doc. kind Thesis Status Approved Title MBA Thesis Resp. dept. IS Management Classification Audencia Nantes School of Management, France Doc. no. Lang. Rev. Ind. Page 1 MBA Thesis en - No. of p. 76 FILE:MBA Thesis-IoT-DeepakShivduttKANDPAL.docx; SAVEDATE:09/02/2015 23:11 TITLE PAGE Smart & Sustainable World using Internet of Things (IoT) for Industrial Automation Dr. Jonathan SEDDON Submitted by Deepak Shivdutt KANDPAL (MBA in Responsible Management 2014-2015)

Upload: deepak-shivdutt-kandpal-pmp

Post on 15-Apr-2017

344 views

Category:

Data & Analytics


0 download

TRANSCRIPT

Page 1: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly

forbidden. Audencia Nantes School of Management, France

Based on External doc. no. Author Deepak Shivdutt KANDPAL Project IoT for Industrial Automation

Approver Dr. Jonathan SEDDON Doc. kind Thesis Status Approved Title MBA Thesis Resp. dept. IS Management Classification

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 1

MBA Thesis en - No. of p. 76

FILE:MBA Thesis-IoT-DeepakShivduttKANDPAL.docx; SAVEDATE:09/02/2015 23:11

TITLE PAGE

Smart & Sustainable World using Internet of Things (IoT) for Industrial

Automation

Dr. Jonathan SEDDON

Submitted by Deepak Shivdutt KANDPAL

(MBA in Responsible Management 2014-2015)

Page 2: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 2

MBA Thesis en - No. of p. 76

ACKNOWLEDGEMENTS

I wish to sincerely thank my supervisor Dr. Jonathan Seddon, for his guidance and support

during the tenure of this course, besides giving me the liberty to pursue my ideas.

I wish to express my sincere gratitude to Mr. Ratna Kanth Dittakavi, ABB & Mr. Swatej

Marathe, ALSTOM, who have been a source of constant inspiration and immense

encouragement throughout the MBA course.

I also wish to thank to my colleagues Dr. Sridhar Iyer and Mr. Vignesh Valavane and my

brother, Mr. Mahesh Kandpal, for their comments and suggestions during the concept

development of this dissertation subject.

Finally, I wish to express my words of appreciation for my wife Neena and my parents

Shivdutt and Beena, who have been my pillars of strength and sources of unlimited support

and encouragement.

Last but not the least, I thank my lovely daughter’s Drishti & Nishka, who showed a lot of

understanding, patience and supported their father in his long cherished desire and dream,

to pursue and complete the Master of Business Administration course in Responsible

Management.

Page 3: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 3

MBA Thesis en - No. of p. 76

TABLE OF CONTENTS

TITLE PAGE ....................................................................................................................................................... 1

ACKNOWLEDGEMENTS .................................................................................................................................... 2

1.0 ABSTRACT .............................................................................................................................................. 5

2.0 INTRODUCTION ..................................................................................................................................... 6

2.1 INTERNET OF THINGS (IOT) .............................................................................................................................. 7 2.2 INDUSTRIAL AUTOMATION ............................................................................................................................. 14

3.0 LITERATURE REVIEW ............................................................................................................................ 17

3.1 HISTORY OF IOT, SERVICES AND ARCHITECTURES ............................................................................................... 19 3.2 INTERNET OF EVERYTHING AND IOE VALUE INDEX ............................................................................................ 21 3.3 EVOLUTION OF HUMANS, INTERNET AND IOT .................................................................................................. 25 3.4 OVERCOMING IOT CHALLENGES USING METCALFE’S LAW .................................................................................... 28 3.5 INDUSTRIAL AUTOMATION INDUSTRY DEPLOYING IOT ........................................................................................ 31 3.6 BENEFITS OF INDUSTRIAL IOT ........................................................................................................................ 37 3.7 IOT OR I²OT AS AUTOMATION INVESTMENT OPPORTUNITY ................................................................................ 38 3.8 SECURITY & CREATING VALUE IN THE IOT WORLD ............................................................................................. 40

4.0 PURPOSE OF THE RESEARCH ................................................................................................................ 42

4.1 RESEARCH OBJECTIVES .................................................................................................................................. 42 4.2 RESEARCH QUESTIONS .................................................................................................................................. 43

5.0 RESEARCH METHODOLOGY AND DESIGN ............................................................................................ 44

6.0 BUSINESS PLAN FOR IOT ...................................................................................................................... 45

6.1 INDIA STRATEGY AND MARKETING ................................................................................................................... 48 6.1.1 India Market Review ....................................................................................................................... 48 6.1.2 Target Market Segment Strategy .................................................................................................... 50 6.1.3 Competition and Buying Patterns ................................................................................................... 51

6.2 INDIA VALUE CHAIN AND SALES ....................................................................................................................... 52 6.2.1 Competitive Advantage ................................................................................................................... 52 6.2.2 Sales Forecast .................................................................................................................................. 52 6.2.3 Milestones ....................................................................................................................................... 53

6.3 INDIA FINANCE AND ACCOUNTING ................................................................................................................... 53 6.3.1 Start-up Funding.............................................................................................................................. 54 6.3.2 Projected Profit and Loss ................................................................................................................. 55

6.4 MANAGEMENT AND TEAM ............................................................................................................................. 56 6.5 ASSUMPTIONS AND RISKS .............................................................................................................................. 57

7.0 SUMMARY OF RESULTS AND ANALYSIS ............................................................................................... 58

8.0 CONCLUSION ....................................................................................................................................... 68

9.0 LIMITATIONS AND FURTHER RESEARCH .............................................................................................. 70

10.0 APPENDIX ........................................................................................................................................ 71

LEGAL PAGE ................................................................................................................................................... 74

11.0 BIBLIOGRAPHY ................................................................................................................................. 75

Page 4: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 4

MBA Thesis en - No. of p. 76

TABLE OF FIGURES

FIGURE 2-1: INTERNET OF EVERYTHING: IOT VISION 2020 (SOURCE: IDC) ............................................................................ 7 FIGURE 2-2: IOT VIEWED AS A NETWORK OF NETWORKS (SOURCE: CISCO IBSG) ..................................................................... 8 FIGURE 2-3: BILLIONS OF INTERNET-CONNECTED DEVICES (SOURCE: MIT TECHNOLOGY REVIEW) ............................................ 10 FIGURE 2-4: THE DIGITAL UNIVERSE IN 2020 (SOURCE: IDC 2012) ................................................................................... 11 FIGURE 2-5: IOT VISION WITH HUGE ECONOMIC POTENTIAL (SOURCE: EIU) ......................................................................... 12 FIGURE 2-6: M2M-MARKET SHARE WORLDWIDE 2013 (SOURCE: GSMA) ........................................................................ 13 FIGURE 3-1: A SMART & SUSTAINABLE WORLD (SOURCE: LIBELIUM) .................................................................................. 18 FIGURE 3-2: FROM INTERNET TO IOT (SOURCE: SIEMENS) ................................................................................................ 20 FIGURE 3-3: IOT: INTELLIGENT SYSTEMS FRAMEWORK (SOURCE: INTEL) .............................................................................. 21 FIGURE 3-4: INTERNET OF EVERYTHING VALUE INDEX (SOURCE: CISCO) ............................................................................... 22 FIGURE 3-5: THE IOT WAS “BORN” BETWEEN 2008 & 2009 (SOURCE: CISCO IBSG) ............................................................ 23 FIGURE 3-6: FIRMS IN COUNTRIES REALIZING IOE VALUE .................................................................................................. 24 FIGURE 3-7: IT-DRIVEN INDUSTRIES REALIZING GREATEST IOE VALUE .................................................................................. 25 FIGURE 3-8: DIKW MODEL (SOURCE: CISCO) ................................................................................................................ 26 FIGURE 3-9: METCALFE’S LAW DEPICTING VALUE OF NETWORK=N² ................................................................................... 28 FIGURE 3-10: ZIGBEE PROTOCOL OSI MODEL ................................................................................................................ 29 FIGURE 3-11: ZIGBEE NETWORK .................................................................................................................................. 30 FIGURE 3-12: IOT MATURITY MODEL (IOTMM) ............................................................................................................ 36 FIGURE 3-13: THE IT AND OT CONVERGENCE (SOURCE: SAP & OSISOFT) .......................................................................... 41 FIGURE 6-1: PRODUCTS & SERVICES FOR IOT ................................................................................................................. 46 FIGURE 6-2: DST CLOUD OFFERING FOR IOT .................................................................................................................. 46 FIGURE 6-3: EMS SOLUTION FOR IOT BY DST ................................................................................................................ 47 FIGURE 6-4: WMS SOLUTION FOR IOT BY DST .............................................................................................................. 47 FIGURE 6-5: DCM SOLUTION FOR IOT BY DST ............................................................................................................... 48 FIGURE 6-6: B2B SEGMENTATION DIMENSIONS.............................................................................................................. 50 FIGURE 6-7: MANAGEMENT TEAM & ORGANIZATIONAL STRUCTURE FOR IOT ....................................................................... 56 FIGURE 9-1: EMS SOLUTION WIRELESS ARCHITECTURE .................................................................................................... 73 FIGURE 9-2: WMS SOLUTION WIRELESS ARCHITECTURE .................................................................................................. 73

Page 5: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 5

MBA Thesis en - No. of p. 76

1.0 ABSTRACT

This research is on how Internet of Things (IoT) & Industrial Internet of Things (I²oT) is

bringing changes to the value chain and impacting Industrial Automation organizations to

make a smart and sustainable world which is connected using technologies like IPv6, Cloud

Computing, Fog Computing, Big Data and Big Data Analytics. The main focus is how these

responsible organizations are making their business plan for IoT for saving time, money and

supporting business intelligence efforts to have quality control, sustainable and green

practices, supply chain traceability and overall supply chain efficiency.

The aim of this study is to identify the different transitions required for triple bottom line i.e.,

People, Process and Technology using IoT in light of the Corporation 2020 mechanisms and

Sustainable Development for building a smart and interconnected world.

This empirical study is an exploratory research and has a qualitative approach with two

sources of data: semi-structured interviews that deliver the primary data, mainly opinions

from managers in different positions in the interviewed organizations. The interviewees are

mostly Product/Project Managers, Directors and CEOs. In addition, a second source of data

is from a survey answered by employees in the organizations, some of them in a position of

Project/Department Manager. To gather employees opinion, it is very important to identify

how the organization is engaging their employees in the IoT mission, vision and goals

through the various programs/projects as one of the major stakeholders.

The research findings: Almost, all the interviewed organizations are having or are willing to

have an IoT mission, vision and goals. However, not all organizations can afford

implementing the IoT Programs/Projects that require huge investments. Most of the

organizations are ready to get integrated with other organizations for open interoperability

standards, security and the development of common architectures so that these smart

machines are better than humans at accurately, consistently capturing and communicating

data which will enable organizations to pick up on inefficiencies faster.

Page 6: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 6

MBA Thesis en - No. of p. 76

2.0 INTRODUCTION

It is not surprising today that IoT has become the next major bubble in the Information and

Communications Technology (ICT) industry as well as other industries like Industrial

Automation. This has led to major corporations like Google, Microsoft, Amazon, Oracle,

Cisco, Silicon Labs as well as Infosys, Accenture, Wipro, HCL, TCS to develop blue ocean

strategy { (Kim & Mauborgne 2004), (Chan Kim & Mauborgne 2009) } for catering different

types of customers. Not far behind are major industrial automation capital equipment

suppliers (such as GE, Honeywell, ABB, Emerson Process Management, Siemens,

Rockwell Automation, ALSTOM & Mitsubishi Electric) who will define a clear global strategy,

marketing and deployment for IoT. In the current context for Industrial Automation industry,

smart and sustainable solutions are required using IoT concepts and technology like Cloud

Computing { (Rawal 2011), (Jain & Gupta 2012), (Mastelic et al. 2015) } and Big Data {

(Banerjee et al. 2013), (Moorthy et al. 2015) } as there are various issues faced by Industrial

Automation suppliers and customers. The issues faced are not only limited to improving

performance and efficiency for customers but also reduce cost for suppliers by creating more

affordable system architectures which are responsive, effective and sustainable. Before we

try to understand how IoT will impact Industrial Automation industry to make smart and

sustainable cities, we need to understand the definition, the policies and technology

priorities. These were discussed in the seminar hosted by Qualcomm in London on 27th

January, 2015 as described in the IERC website events which is the European Research

Cluster on the IoT. There are many events like this which will bring focus on the policies in

most of the countries in European Union, India & USA.

The definition of, IoT (sometimes called Machine-to-Machine or M2M) is that it represents

the connectivity of objects (Ashton 2013) that are tagged and identified, so that these

objects—each with its own ‘fingerprint’—can communicate with one another. IoT was

Page 7: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 7

MBA Thesis en - No. of p. 76

introduced by British technology pioneer Kevin Ashton in 1999 and popularized by testing at

the Massachusetts Institute of Technology in the early 2000’s.

Internet of Everything (IoE) industry based on IoT Vision 2020 by IDC as shown in Figure

2-1 below have researched and calculated 4 Billion connected people, $4 Trillion in revenue

opportunity, more than 25 Million apps and 25 Billion embedded & intelligent systems with

50 Trillion GBs of data. Andrew Saunders (2014) has described IoE using web-enabled

sensors embedded in physical objects for People-to-Machine (P2M) & People-to-People

(P2P) technologies. Based on Global e-Sustainability Initiative (GeSI) SMARTer 2020 report

as well as WWF Living Planet report, rising energy as well as water consumption for

enterprises like hospitals, residential buildings, malls & businesses need to be reduced by

50% by end of 2020 using M2M technology.

Figure 2-1: Internet of Everything: IoT Vision 2020 (Source: IDC)

2.1 INTERNET OF THINGS (IOT)

As described by Ovidiu Vermesan & Peter Friess (2013), IoT is a concept and a paradigm

that considers pervasive presence in the environment of a variety of things/objects through

Page 8: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 8

MBA Thesis en - No. of p. 76

wireless and wired connections and unique addressing schemes. These things/objects are

able to interact with each other and cooperate with other things/objects to create new

applications/services and reach common goals. In this context, the research and

development challenges to create a smart world are enormous. A world where the real

(analog), digital and the virtual are converging to create smart environments that make

energy, transport, cities and many other areas more intelligent.

IoT refers to the interconnection of uniquely identifiable embedded computing-like devices

within the existing Internet infrastructure. Typically, IoT is expected to offer advanced

connectivity of devices, systems, and services that goes beyond M2M communications and

covers a variety of protocols, domains, and applications as shown in Figure 2-2 below as

researched by Cisco IBSG team.

Figure 2-2: IoT viewed as a network of networks (Source: Cisco IBSG)

One example is with, Environmental sensing projects, run by individuals and community

groups, can measure factors in the local environment such as water quality monitoring,

weather conditions, and pollution data. Another is Car parking, which is one of many

industries that can benefit from huge cost savings by automating their services with the help

Page 9: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 9

MBA Thesis en - No. of p. 76

of IoT. Car parks have cameras, motion sensors and gates. Often these cameras have a

built in license plate recognition system. Finally, Connected buildings promise us a future

where the environment not only responds to our needs but also saves energy by turning off

lights and the heating down when the building is unoccupied.

The important topics covered by Vermesan & Friess for IoT which are issues, changes,

challenges and obstacles that need to be tackled by all stakeholders are listed below:

a) Research & Innovation

b) Market Deployment

c) Identification

d) Standardization

e) Semantics

f) Interoperability

g) Governance

h) Privacy

i) Security

These topics will be detailed in the Literature review as well as Research objectives and

questions sections based on the various academic articles, interviews, publications,

seminars and webinars. Siemens in its forecasts and facts (Karczewski 2014) has predicted

that by year 2020, 26 billion objects/devices will be connected through internet which is in

accordance with the business consultancy firm Gartner. By adding laptops, PCs, and

smartphones, which will number around 7 billion by 2020, Gartner arrives at 33 billion

objects/devices. This number is also foreseen by market research and consulting firm

International Data Corporation who have estimated that 32 billion objects/devices will be

connected to the Internet by 2020, and that these will produce 10% of all the data generated

Page 10: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 10

MBA Thesis en - No. of p. 76

worldwide. A recent study by MIT Technology Review anticipates 28 billion Internet-

connected things as shown in Figure 2-3 below.

Figure 2-3: Billions of Internet-Connected Devices (Source: MIT Technology

Review)

Whether it's 26, 28, 32, or 33 billion – as the number of networked devices and sensors

increases, they will create an ever-growing, unprecedented flow of data which will have to be

collected, analyzed, and stored as shown in Figure 2-4 below.

Page 11: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 11

MBA Thesis en - No. of p. 76

Figure 2-4: The Digital Universe in 2020 (Source: IDC 2012)

This will require huge investments and defining standards, security and integration of

organizations. Based on the study conducted by Booz & Company, an international strategy

consultancy which came out with 2013 “Global Information Technology Report”, by studying

the economic and social effects of digitization on a country’s gross domestic product (GDP)

showed a 10% increase in a country’s digitization rate leads to a 0.75 % higher GDP per

capita and a 1.02 % lower unemployment rate. "This wealth can either be concentrated in

the hands of a few, or it can create opportunities for billions of people," says Erik

Brynjolfsson, a professor of management and information systems at the Massachusetts

Institute of Technology (MIT). So, the IoT is thus a vision of the future with vast economic

Page 12: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 12

MBA Thesis en - No. of p. 76

potential as shown in Figure 2-5 below. According to Gartner, it will generate an added value

of $1.9 trillion across a number of sectors by 2020 and IDC predicts earnings of $8.9 trillion.

Figure 2-5: IoT Vision with huge economic potential (Source: EIU)

Asian countries are playing a leading role for IoT M2M communication as can be seen in the

Figure 2-6 below with more than 50 million connections, according to the GSM Association,

the global trade group of GSM mobile network operators.

Page 13: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 13

MBA Thesis en - No. of p. 76

Figure 2-6: M2M-Market Share Worldwide 2013 (Source: GSMA)

China is leading the Asian countries together with India as it is planning to invest 5 billion

RMB (about €606 million) in the IoT industry by 2015. China has set up the Chengdu

Internet of Things Technology Institute in Sichuan Province, which is developing a

"healthcare capsule" where the village residents will be able to step into a telephone-booth-

sized capsule and obtain a diagnosis and a prescription from a doctor located in a distant

hospital. Gartner expects manufacturing, healthcare, and insurance industries to profit the

most from the IoT because they will have a precise overview of their inventory and the intake

and depletion of raw materials and components at all times, and will be able to react quickly

to changes in the market and in customer preferences. Consulting company Deloitte &

Touche estimates that the smart home market which is connected to the Internet and

centrally controlled and monitored will have a sales volume of €4.1 billion by 2017 in Europe

alone.

Page 14: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 14

MBA Thesis en - No. of p. 76

The following top 10 benefits of IoT as defined by Microsoft Corporation below will be used

to build the business plan & strategy for new and existing organizations:

1. Start with your things. (Line-of-business assets and the data they produce, your

Cloud Services, and your Business intelligence tools)

2. Get more out of your existing assets. (Employees and Customers)

3. Make small changes, see a big impact.

4. Improve efficiency.

5. Connect any asset.

6. Enable innovation.

7. Increase agility.

8. Build the ability to scale.

9. Transform your business.

10. Choose an enterprise-proven IoT partner.

2.2 INDUSTRIAL AUTOMATION

Industrial Automation equipment suppliers have been thriving for more than 55 years now

with customers from both Process Automation and Power Automation plants. Current

Industrial Automation systems architecture for Programmable Logic Controller (PLC),

Supervisory Controlled and Data Acquisition (SCADA), Manufacturing Execution System

(MES) and Distributed Control System (DCS) require Ethernet communication at each level.

A commonly used architecture model to define Manufacturing Operations Management is

the five level Purdue Reference Model (PRM), which later formed the basis for the ISA-95

standard. The model is typically expressed as:

Level 5 - Business Systems

Page 15: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 15

MBA Thesis en - No. of p. 76

Level 4 - Plant Level (ERP, MRP, and MES)

Level 3 - Operation Unit Level

Level 2 - Machine/Process Automation Level

Level 1 - Controller Level

Level 0 - Sensor/Actuator Level

Existing automation systems generally reflect this architecture with software running on

general purpose computers at levels 2, 3, 4, and 5. Levels 2, 3 and 4 typically have

database and communications interfaces that buffer and synchronize information between

each level in addition to associated HMI and user interfaces.

Early minicomputers were used in the control of industrial processes since the beginning of

the 1960s. The IBM 1800, for example, was an early computer that had input/output

hardware to gather process signals in a plant for conversion from field contact levels (for

digital points) and analog signals to the digital domain.

The DCS was introduced in 1975. Both Honeywell and Japanese electrical engineering firm

Yokogawa introduced their own independently produced DCSs at roughly the same time,

with the TDC 2000 and CENTUM systems, respectively. US-based Bristol also introduced

their UCS 3000 universal controller in 1975. In 1980, Bailey (now part of ABB) introduced the

NETWORK 90 system. Also in 1980, Fischer & Porter Company (now also part of ABB)

introduced DCI-4000 (DCI stands for Distributed Control Instrumentation).

The DCS comprise of many real time ‘Intelligent’ devices, Systems (nodes) and Process

Controllers that seamlessly interact with each other based on standardized communication

protocols. These protocols are implemented over standard Ethernet based networks and

Wireless networks. The DCS provides precise protection, monitoring, measurement and

control of their process equipment and systems with a very high degree of system reliability

and availability. The last decade has seen a huge convergence of Digital communication;

Page 16: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 16

MBA Thesis en - No. of p. 76

Internet based technologies and Pervasive systems in the DCS domain. More recently,

advanced Network Security concepts are also being employed in DCS, largely because of

the very high stakes associated with using them in Process and Power Plants. Thus,

Ethernet communication has become the high speed and pervasive technology used by

industrial automation protocols and business systems. More controllers are supporting

multiple Ethernet ports to interact directly with industrial and business networks that exist

throughout industrial plants.

The Industrial Internet of Things (IIoT or I²oT) is becoming a reality with sensors and

actuators embedded in physical objects - from roadways to pacemakers - and are linked

through wired and wireless networks, leveraging the Internet Protocol (IP). Industrial

controllers are starting to follow this trend by providing data refinement, local historians,

analytics, and advanced control at the source end devices. Modern controllers are

communicating with all levels of systems using the “IP plumbing” that is pervasive in

manufacturing plants, including capabilities to send email, ftp files, and serving up

webpages. Open communications is being supported using XML, SOAP, SNMP, and OPC

Unified Architecture (UA).

Thus, IoT and Industrial Automation industries have gained prominence with advances in

Cloud Computing & Big Data technologies in recent years where it will be investigated how

IoT will contribute to a smart and sustainable world using industrial automation using these

technologies largely in India, European Union & USA. The focus will be on how IoT will be

implemented using industrial automation using these technologies in retrofit and new cities

to make them smart as well as how the triple bottom line i.e. People, Planet and Profit will be

used to make it sustainable. Although, the main focus will be on European Union, the study

will examine the effects and comparisons of the various aspects (wherever applicable) of the

above in Asia Pacific (Australia & Singapore), USA and BRICS countries i.e. Brazil, Russia,

India, China and Republic of South Africa as well.

Page 17: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 17

MBA Thesis en - No. of p. 76

3.0 LITERATURE REVIEW

Based on the historical perspective as detailed briefly in the introduction of IoT/IIoT or I²oT

and Industrial Automation, this section will review the ideas of various researchers and

authors of academic articles, interviews, publications, seminars and webinars to understand

the convergence of business processes, customer experience and human behaviour for

Information Technology (IT) and Operation Technology (OT) so as to create value in the

organization as well as for the stakeholders. This will also give the opportunity to probe

further into the ideas as well as provide more insight to develop research objectives and

questions. To have a smart and sustainable world as shown in Figure 3-1 below where

everything is smart needs to have a mission and vision for the following applications:

Air Pollution

Forest Fire Detection

Intelligent Shopping

Quality of Shipment Conditions

Smart Lighting

Smart Parking

Smart Roads

Smartphones Detection

Structural Health

Traffic Congestion

Vehicle Auto-diagnosis

Waste Management

Water Leakages

Water Quality

Wine Quality Enhancing

Page 18: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 18

MBA Thesis en - No. of p. 76

Figure 3-1: A Smart & Sustainable World (Source: Libelium)

Page 19: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 19

MBA Thesis en - No. of p. 76

There are many articles on IoT like “Industrial automation industry exploring and

implementing IoT” by Bill Lydon which describes how IBM started its Smart Planet initiative

in 2008 and the same year, the non-profit IP for Smart Objects (IPSO) Alliance was started

with more than 50 members from technology, communications, and energy companies to

promote the IP for "smart object" communications. The dissertation will mainly draw from

many of these articles, structure them and analyse the results in these articles.

Further, how the renewable technologies which ensure the triple bottom line or 3P’s i.e.,

People, Planet and Profit along with Cloud Computing from major players like Google,

Microsoft, Oracle & Amazon and Data Management with Big Data (Saunders 2014) will

show the importance of Responsible Management practices like Corporate Social

Responsibility (CSR) (Microsoft 2015) and Sustainable Development (Gutterman et al. 2014)

for the future. We will also look how the various policies and rules will be changed by the

European Union to accommodate IoT as well as the other countries as mentioned previously

as described by Vermesan & Friess (2014).

3.1 HISTORY OF IOT, SERVICES AND ARCHITECTURES

The Siemens Future Forum presented at Hannover Messe 2014 by Guido Stephan where

he has described IoT and Services based on the various approaches towards evolution of

internet, market pull or technology push, hierarchical communication or vertical

communication, data centric development or information centric development and various

research examples and projects like Internet of Things Architecture (IoT-A) and ICeWater.

Guido has described how Internet has evolved from year 1969 to 2020 from ARPANET

(Research Networks), Email, Websites, Social Media, E-Commerce to Smart City and Smart

Grid i.e., Internet / Web of Things as shown in Figure 3-2 below. The market pull is leading

to cross-domain integration with new business models, efficient information sourcing and

process optimization for big data which is supported by technology push where very cheap

Page 20: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 20

MBA Thesis en - No. of p. 76

sensors will allow ubiquitous web access to smallest field devices. This will lead to integrated

flexible M2M communication and networked embedded DCS.

Figure 3-2: From Internet to IoT (Source: Siemens)

The future communication will be vertical rather than horizontal considering it will be

seamless across domains with unified access and service oriented architecture (SOA) which

will be IP/Web based like Highway Addressable Remote Transducer Protocol (HART) IP &

Profinet DP/PA rather than diverse, specific communication protocols like HART,

WirelessHART, Profibus DP/PA and Foundation Fieldbus to name a few. This vertical

communication architecture applies also to Smart Grid solutions for Power Plants. Thus,

Guido Stephan highlights that IoT will bring about changes in the business models as well as

system architectures currently followed, will be developed in the future to be data centric,

information centric or a hybrid of both depending on the technology and industry application

as intelligent systems framework as shown in Figure 3-3 below.

Page 21: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 21

MBA Thesis en - No. of p. 76

Figure 3-3: IoT: Intelligent Systems Framework (Source: Intel)

In addition to what Guido and Siemens has provided as a view of the IoT future for system

architectures for the industrial automation DCS, in my viewpoint, Cloud Computing and Big

Data will break the hierarchical communication followed as of today to a single-layered

communication which is IP/Web based so that each node as well as field device can

communicate seamlessly and integrate into any 3rd Party Systems. This will lead to

disruption or integration of many organizations specifically capital equipment suppliers of

PLC and DCS.

3.2 INTERNET OF EVERYTHING AND IOE VALUE INDEX

The articles by Dave Evans (2011) from Cisco Internet Business Solutions Group (IBSG) &

Joseph Bradley et al (2013) on the how IoT is changing everything and the IoE Value Index

which can be assessed using the tool at http://ioeassessment.cisco.com/explore/full as well

as shown in Figure 3-4 below.

Page 22: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 22

MBA Thesis en - No. of p. 76

Figure 3-4: Internet of Everything Value Index (Source: Cisco)

Dave Evans conveys that Internet has already created a huge impact on education,

communication, business, science, government, and humanity so it is one of the most

important and powerful creations in all of human history. There are many IoT projects in

progress that promise to close the gap between poor and rich, improve distribution of the

world’s resources to those who need them most, and help us understand our planet so we

can be more proactive and less reactive. There are several barriers that exist which threaten

to slow IoT development, including the transition to IPv6, having a common set of standards,

and developing energy sources for millions—even billions—of minute sensors.

In January 2009, a team of researchers in China studied Internet routing data in six-month

intervals, from December 2001 to December 2006. Similar to the properties of Moore’s Law,

their findings showed that the Internet doubles in size every 5.32 years. Using this figure in

Page 23: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 23

MBA Thesis en - No. of p. 76

combination with the number of devices connected to the Internet in 2003 (500 million, as

determined by Forrester Research), and the world population according to the U.S. Census

Bureau, Cisco IBSG estimated the number of connected devices per person. Cisco IBSG

estimates IoT was “born” sometime between 2008 and 2009 as shown in Figure 3-5 below.

Figure 3-5: The IoT was “born” between 2008 & 2009 (Source: Cisco IBSG)

Thus, as per Cisco IBSG estimates there will be 50 billion connected devices by year 2020

considering the factor of 6.58 connected devices per person. This is just an approximation

as of today which can change drastically to a higher value as more devices are connecting

to internet everyday as cows, water pipes, people, and even shoes, trees, and animals

become connected to IoT, the world has the potential to become a better place based on the

initiatives and advances, such as Cisco’s Planetary Skin, HP’s central nervous system for

the earth (CeNSE), and smart dust. As depicted in Figure 2-2, IoT can be viewed as network

of individual networks like Home, Education, Transport, Energy, Business, Earth and many

Others where each network is connected together with added security, analytics and

management.

Page 24: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 24

MBA Thesis en - No. of p. 76

The IoE value index report which is the calculation of the Net Present Value (NPV) of firms

for 10 year period from 2013-2022 shows that firms in developed countries like Germany

and France are currently realizing the most IoE value. Germany and France combined value

at stake is around $146.9 Billion but the emerging countries like BRICS are not far behind

with Brazil, China and India combined value at stake being $226.5 Billion as shown in Figure

3-6 below. US Firms only have the largest value at stake being $472.9 Billion.

Figure 3-6: Firms in Countries realizing IoE Value

Also, IT-driven industries like high tech / telecoms are realizing the greatest share of the IoE

value followed by Financial services, Services and Healthcare / Life sciences as shown in

Figure 3-7 below but Manufacturing and Energy which represent the Industrial Automation

industry have combined value at stake being $279.4 Billion are not far behind. Services

industry has the only largest value at stake being $276.9 Billion.

Page 25: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 25

MBA Thesis en - No. of p. 76

Figure 3-7: IT-Driven Industries realizing greatest IoE Value

3.3 EVOLUTION OF HUMANS, INTERNET AND IOT

As we have seen in Figure 3-2, Internet or Web has been through four stages of evolution or

development where IoT is considered as the first real evolution of the Internet—a leap that

will lead to revolutionary applications that have the potential to dramatically improve the way

people live, learn, work, and entertain themselves. Already, IoT has made the Internet

sensory (temperature, pressure, vibration, light, moisture, stress), allowing us to become

more proactive and less reactive. Also, Internet is expanding into places that until now have

been unreachable like patients are ingesting Internet devices into their own bodies to help

doctors diagnose and determine the causes of certain diseases and extremely small sensors

can be placed on plants, animals, and geologic features, and connected to the Internet. At

the other end of the spectrum, the Internet is going into space through Cisco’s Internet

Routing in Space (IRIS) program.

Page 26: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 26

MBA Thesis en - No. of p. 76

We as humans evolve because we communicate as can be seen from the Data, Information,

Knowledge, and Wisdom (DIKW) model shown in Figure 3-8 below where the benefit to

humanity becomes more important as we go to the top of the pyramid.

Figure 3-8: DIKW Model (Source: Cisco)

Humans process data which is the raw material that is processed into information. Individual

data by itself is not very useful, but volumes of it can identify trends and patterns. This and

other sources of information come together to form knowledge. In the simplest sense,

knowledge is information of which someone is aware. Wisdom is then born from knowledge

plus experience. While knowledge changes over time, wisdom is timeless, and it all begins

with the acquisition of data. Thus, for Humans there is a direct correlation between the input

(data) and output (wisdom). The more data that is created, the more knowledge and wisdom

people can obtain. IoT dramatically increases the amount of data available for us to process.

This, coupled with the Internet’s ability to communicate this data, will enable people to

advance even further. Thus, IoT has become critical for human progression as the planet’s

population continues to increase, making people to become stewards of the earth and its

resources. In addition, people desire to live healthy, fulfilling, and comfortable lives for

themselves, their families, and those they care about. By combining the ability of the next

evolution of the Internet (IoT) to sense, collect, transmit, analyze, and distribute data on a

massive scale with the way people process information, humanity will have the knowledge

Page 27: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 27

MBA Thesis en - No. of p. 76

and wisdom it needs not only to survive, but to thrive in the coming months, years, decades,

and centuries.

One of the areas where IoT can make a significant difference is in closing the poverty gap.

Dr. C.K. Prahalad { (Prahalad & Hammond 2002), (Prahalad 2005) & (Prahalad 2012) }

provides some mind-boggling statics comparing Dharavi (the poorest neighborhood in

Mumbai) to Warden Road (the better side of the city just blocks away). The amount people

from Dharavi paying for municipal-grade water is $1.12 per cubic meter as compared to

$0.03 for residents of Warden Road so the injustice is clear: the poor people of Mumbai pay

37 times more for water (a basic human necessity). The main source of the disparity is the

higher cost of delivering utility services to poorer neighborhoods because of infrastructure

inefficiencies, problems such as leaks, and theft. According to an article in The Wall Street

Journal, “Seven years ago, more than 50 percent of the power distributed by North Delhi

Power Ltd. wasn't paid for by customers. A key challenge for power companies is reducing

theft by India's poor.” IoT, because of its ubiquitous sensors and connected systems, will

provide authorities with more information and control in order to identify and fix these

problems. This will allow utilities to operate more profitably, giving them extra incentive to

improve infrastructures in poorer neighborhoods. More efficiency will also allow for lower

prices, which, in turn, will encourage those taking services for free to become paying

customers at the Bottom of Pyramid (BoP).

As depicted in the Digital Agenda EU (Commission 2013), IoT can provide better quality of

life for the surging number of elderly people as the world’s population is aging. There are

approximately 1 Billion people age 65 and older who will be classified as having reached

“non-working age” by the middle of the century. For example, imagine a small, wearable

device that can detect a person’s vital signs and send an alert to a healthcare professional

when a certain threshold has been reached, or sense when a person has fallen down and

can’t get up.

Page 28: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 28

MBA Thesis en - No. of p. 76

There are several barriers and challenges for IoT that have the potential to slow its

development of which the four major ones are deployment of IPv6, power or energy for the

sensors, agreement on standards and cyber security. IEEE is just one of the organizations

working to solve these challenges by ensuring that IPv6 packets can be routed across

different network types. While barriers and challenges exist, they are not insurmountable and

given the benefits of IoT, these issues will get worked out soon. This effort will require

businesses, governments, standards organizations, and academia to work together toward a

common goal. Thus, in conclusion, IoT truly represents the evolution of internet so to gain

acceptance among the general populace, service providers and others it must deliver

applications that bring tangible value to peoples’ lives using the DIKW Model.

3.4 OVERCOMING IOT CHALLENGES USING METCALFE’S LAW

Silicon Laboratories Inc. is bringing IoT to life by overcoming the challenges for connecting

Intelligent Nodes using Metcalfe’s Law as shown in Figure 3-9 below.

Figure 3-9: Metcalfe’s Law depicting Value of Network=N²

According to Metcalfe’s Law, the value of a network is equal to the square of the number of

devices connected to it. At the edge of the IoT are the appliances and equipment

interconnected across an infrastructure or backbone using combinations of ZigBee, sub-

Page 29: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 29

MBA Thesis en - No. of p. 76

GHz, Wi-Fi or power line communications (PLC) connectivity to provide a robust bidirectional

communications link with relatively long range, low latency for fast responsiveness, low

power and a sufficient data rate to aggregate information from many connected devices.

This infrastructure also serves as the gateway to the Internet and enables remote monitoring

and control of devices by other networks, utility companies and end users. The majority of

connected devices in the IoT are nodes located at the so-called “last inch” of the network.

These nodes contain microcontrollers (MCUs), wireless devices, sensors and actuators that

provide the brains, eyes and fingers of the IoT.

The ZigBee is an open global wireless protocol standard that addresses the needs of low-

cost, low-power networks that connect IoT devices such as home automation; (automating

functions like opening doors, garage openers, water sprinklers, etc.); environment control

like temperature; controlling traffic; and other IoT devices and not just home automation. The

range is around 10 to 100 meters and a ZigBee network can support 1000's of end devices.

Technically speaking the ZigBee standard operates on IEEE 802.15.4 (physical and MAC

layers) physical radio specification and operates in unlicensed bands 2.4GHZ, 900MHZ and

868MHZ as shown in Figure 3-10 below.

Figure 3-10: ZigBee Protocol OSI Model

The ZigBee components are Coordinator, Router and End device which are connected in a

mesh or a star network as shown in Figure 3-11 below. The coordinator which is installed

first as well as the routers which join the ZigBee network next are always up and the end

Page 30: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 30

MBA Thesis en - No. of p. 76

devices (bulbs, thermostats, etc.) that join later are usually battery operated can stay up or

down.

Figure 3-11: ZigBee Network

The ZigBee protocol has been created and ratified by member companies belonging to the

ZigBee alliance (http://www.zigbee.org/zigbeealliance/our-members/) consisting of more

than 300 leading semiconductor manufacturers; technology companies; service providers;

and OEMs. ZigBee being an open standard, the adoption will be slow and vendors add their

own special tweaks. XBee is a special kind of ZigBee manufactured by Digi International

(Refer www.digi.com). The benefits to the users is through:

Higher Efficiency

Proactive Usage

Proactive Maintenance

Single Control Interface

Ease-of-Use

Thus, IoT enables electronic component suppliers, software vendors, OEMs and service

providers to focus on their core competencies and leverage the strengths of partnership to

create compelling applications for consumers using ZigBee, 6LoWPAN and Sub-GHz

protocols. Thus, employing a mesh topology is ideal for many IoT applications as Bluetooth

Page 31: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 31

MBA Thesis en - No. of p. 76

is limited to just seven devices on a network and Wi-Fi to 32. It is better to use Silicon Labs

EmberZNet PRO protocol stack provides a ZigBee-compliant software solution for IoT

applications as it can be extended to interconnect 100’s or potentially 1000’s of devices on a

single network.

Real innovation will occur in software technology where ZigBee standard profiles, such as

ZigBee Smart Energy, ZigBee Home Automation, ZigBee Building Automation and ZigBee

Light Link, provide interoperable platforms that simplify the development of IoT applications

for smart homes and commercial buildings, intelligent lighting control systems, smart meters

and in-home energy monitoring systems. This is possible with Interoperability through

Standard Protocols, Achieving Ultra-Low Power Efficiency, Accelerated Software &

Application Design and finally, Faster Time-to-Market for IoT Applications.

The IoT will continue to open new markets and drive new applications and opportunities for

OEMs and application developers across all industries. IoT has become a tangible reality

with commercially successful deployments in several markets, including connected home

and green energy applications. What many OEMs and their suppliers want to know is when

the IoT is going to grow out of its infancy and achieve the critical mass necessary to become

a 10 M+ unit market. With the availability of the fundamental technologies, products,

software and tools necessary to create efficient, ultra-low power devices for the last inch, it is

clear the answer is now.

3.5 INDUSTRIAL AUTOMATION INDUSTRY DEPLOYING IOT

In the article by Bill Lydon, he has described how Industrial Automation industry is exploring

and implementing the IoT Vision which is a massively instrumented world of intelligent

sensors (analog and digital) and actuators (analog and digital) communicating using IP to

improve performance and efficiency. Industrial automation has a history of adopting

commercial technology as it becomes mainstream, and applying IoT technologies to improve

performance and enable better integration with business systems is a logical step.

Page 32: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 32

MBA Thesis en - No. of p. 76

IoT applied to Industrial Automation will use this technology to streamline, collapse, and

create system architectures that are more affordable, responsive, and effective. The goal is

to have frictionless communications and interaction from manufacturing field input/output

(I/O), including sensors, actuators, analyzers, drives, vision, video, and robotics, for

increased manufacturing performance and flexibility. This revolution will drive intelligence to

the edge of the system with the ultimate goal of all industrial devices supporting IP, including

field I/O. Wireless IP devices, including smartphones, tablets, and sensors, are already

being used in manufacturing. The wireless sensor I/O open standards like WirelessHART,

ISA100, and WIA-PA are all IP devices supporting the latest IPv6 standards, which leverage

larger address spaces and improved cybersecurity standards.

The following research questions were asked by Bill Lydon to the executive leaders working

for the Industrial Automation suppliers namely:

1) What is your functional definition of the IoT?

2) How will Industrial Automation systems change to achieve the goals of the IoT?

3) What products (hardware/software) do you deliver today that are components for

users to deploy the IoT?

4) What products (hardware/software) will you be delivering in the next 1 year that are

components for users to deploy the IoT?

These questions become quite significant considering the issues like Cyber Security which

require ISASecure EDSA (Embedded Device Security Assurance) certification and “safety

integrity level” certification (ISO/IEC 61508) as well as the Competitive Risks like adopting

these technologies before they are proven and not adopting them when they are stable and

before competitors use the technologies to outperform them in the marketplace.

Professor Detlef Zühlke, Ph.D., Scientific Director at Innovative Factory Systems at the

German Research Center for Artificial Intelligence discussed the Smart Factory initiative at

the Hannover Messe 2014 where he described the need for standards, including physical,

Page 33: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 33

MBA Thesis en - No. of p. 76

mechanical, pneumatic, and communication, to accomplish more efficiency and functionality

to achieve Industry 4.0. The standards that support these concepts, including OPC UA,

WSDL, EDDL, and IEC 61499 need flexible horizontal and vertical communications between

controllers, field devices, and enterprise systems.

OPC UA provides secure communications using established computer industry standards,

including IP and Web services, to allow the multitudes of devices to gather and convert

remote data into useful information to make intelligent decisions. The IoT with OPC UA

provides a unique opportunity to leverage volumes of sensor data in applications to improve

operations and efficiency in a wide range of applications.

PLCopen provides the technology to make the information in the controller accessible in a

harmonized way. This means that communication on the factory floor is becoming possible

“out-of-the-box”. PLCopen even provides machine-to-machine communication, as well as

machine-to-cloud communication, connecting the controller to the world and the world to the

controller.

Thus, PLCopen and OPC Foundation have together developed PLCopen IEC 61131-3

function blocks that incorporate OPC UA as Integrated Web Services as shown below.

The answers to these research questions by the executive leaders can be summarized as

follows:

Page 34: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 34

MBA Thesis en - No. of p. 76

1) The core characteristics of IoT are:

Devices need to be intelligent.

There needs to be an infrastructure that supports the devices.

Analytics and optimization are the third component.

The distribution of information is another key element.

There needs to be an organization to consume the information produced.

The above can be summarized as intelligent devices with seamless interoperability

capable of acting in a collaborative fashion to achieve business benefit in a cost-

effective way. Thus, IoT is really pulling together the major buzzwords and trends

used today:

devices produce data

which needs to be stored (big data)

on some type of infrastructure (cloud computing)

with analytics using the data (analytics/data mining)

and distributing the information (mobility)

Industrial Automation impact will be that it will propagate the concept of stand-alone

subsystems as part of a larger mesh.

2) The Industrial Internet or the IoT is the infrastructure connecting previously

unconnected industrial machines, devices, and sensors, such as packaging

machinery, semiconductor photolithography tools, robots, motors, photoelectric

sensors, and numerous other industrial objects. It drives customer value through

connectivity across machines, data, insights, people, and business operations using

ERP systems. The IoT enablers create value through the combination of one or more

of the following:

Page 35: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 35

MBA Thesis en - No. of p. 76

Improved Asset Performance

New Service Models

Higher Customer Intimacy

The pervasive nature of the IoT allows more devices to be "configured for purpose"

on the fly and then communicate, not only centrally, but to each other to improve

efficiency, reduce cost, and improve safety. IoT will essentially complete the full

supply chain. When fully leveraged, IoT could mean better inventory management,

pulled production instead of pushed production, accurate activity-based costing, and

automatically adjusted logistics that adapt to changes in the manufacturing layer (and

vice versa). The Industrial Automation impact is seeing the move from separate or

distinct MES/SCADA systems to direct integration with ERP systems and automation

networks will use data to self-configure, self-regulate, and suggest efficiency

improvements. ERP systems today have flexible/configurable web-enabled screens

that process the information, including ERP for production information, enterprise

asset management for maintenance, data vault for business intelligence, and

analytics. Once the data is collected from the machine sensors, it is important to use

pre-configuration tools, such as OPC, to classify the information. Having that data

and the resulting live visibility directly in the ERP can improve everything from real-

time scheduling and error handling to alerting and reporting. With today's real-time

orders, including just-in-time, Kanban, and Lean, ERP must stay in perfect

communication with the shop floor. Many of the decisions an operator currently

makes will soon be made by the machine themselves, freeing the operator to focus

on improving the efficiency of the system, addressing things like energy usage,

security, safety, and process tuning. Additionally, industrial operators will morph into

a cross between industrial engineers, computing experts, and data scientists.

Thus, IoT with IP-enabled manufacturing automation architecture with built-in Web server

capability will distribute more functions into new breeds of powerful industrial controllers and

Page 36: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 36

MBA Thesis en - No. of p. 76

sensors/actuators with embedded processors, eliminating the need for middle-level software

that is cumbersome, expensive, and difficult to maintain. This will be achieved in three

phases namely horizontal or M2M communication, vertical communication and last phase of

analysis of data for production efficiencies. IoT will help us to keep focus in the challenging

world of the convergence of Information Technology and Industrial Automation for global

competition, fast-changing consumer tastes and increased profitability.

Similar to the Software Engineering Institute (SEI) Capability Maturity Model (CMM), IoT will

follow the IoT Maturity Model (IoTMM) as shown in Figure 3-12 below for the

Programs/Projects from Primitive phase to Optimized phase for both software development

and people development processes to reach converged technology and unified intelligent

solutions.

Figure 3-12: IoT Maturity Model (IoTMM)

Page 37: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 37

MBA Thesis en - No. of p. 76

3.6 BENEFITS OF INDUSTRIAL IOT

The article by Herman Storey (2013) on IIoT or I²oT which dwells into the following questions

for industrial applications space rather than consumer applications and products for which

IoT is already much in news. These important questions are:

1) Should Industrial users embrace IP networking?

2) Is it necessary or even beneficial?

3) Why, Why Not, What & How?

Smart devices should be able to communicate with each other or with human interfaces

anywhere on the planet—thus driving improvements in productivity. I²oT must give priority to

security, robustness, and timeliness requirements of automation networks while providing for

remote access as a secondary requirement. In the Automation World, I²oT represents the

opportunity for partial convergence of industrial automation communication on a grand scale

by allowing improvements in functionality, security, flexibility, ease of use, and cost savings.

In the long run, it will be beneficial for vendors as well as users but in the short run, it is

disruptive technology requiring changes to organizational structure, resources and

leadership which needs to be adaptive as it will cross organizational lines and blur

distinctions between foundations. I²oT does not have a home yet with the Industrial

Automation World.

The model for I²oT are Essential Elements, Applications and IPv6. Multiple interfaces are

necessary to support all of them considering the future of industrial communications

technology. Switching and routing, common sense of time (event tagging & security),

architecture (ISA 100.15 gives models & terminology), common network management (ISA

100.20), common security management and specifications & profiles to support compliance

certification. Technology migration should be plug and play not plug and pray so the

technology solutions we create must be easy, flexible and powerful as mentioned by Rick

Bullota. “If market forces do eventually drive this convergence, it is safe to assume that it will

Page 38: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 38

MBA Thesis en - No. of p. 76

happen very slowly and chaotically under market conditions.” Lead organization is required

as many organizations are involved and no organization is well positioned to take lead.

As Daniel Drolet, Executive Vice President of PCN Technology Inc. has considered I²oT as

two ends of spectrum with one end as Industrial Automation & Control with other end as

consumer or human interface. This he has highlighted by stating “Don’t miss the <big

space> in the middle” as well as “Society cannot simply shut down to replace legacy

infrastructure with new IP based communication infrastructure.” To have a successful IoT or

I²oT, the focus should be on the interconnectivity of the two ends of the spectrum by

enabling intelligent infrastructure for the continuum in the middle for managed migrations to

Industrial Internet within industrial systems, energy, oil & gas, transportation, and other

industries. Thus, building a positive outcome will need a lead organization or a consortium of

organizations for a successful effort.

3.7 IOT OR I²OT AS AUTOMATION INVESTMENT OPPORTUNITY

There is big money backing I²oT, Big Data and Industrie 4.0 (Industry 4.0) as these are

considered automation investment opportunities (Kowal 2014) to ensure that the systems

are updated with intelligent manufacturing efforts. Stingy Capital budgets have prevented

widespread adoption of important functions of I²oT such as predictive maintenance,

networked safety, energy monitoring and advanced diagnostics. So, the IoT or Industry 4.0

strategy is to pick a secure data acquisition cloud service to manage global operations from

a centralized engineering department for performing predictive maintenance, energy

management, and overall equipment effectiveness (OEE) across all lines and all plants

everywhere by using standards like ISA/IEC-62443 (formerly ISA-99) for automation system

security and ISA TR.88.00.02 (PackML) which can help even beyond packaging like for all

manufacturing state models, modes, and tag names. Thus, the key concepts for I²oT are:

Internet Protocol technologies are quickly moving to Industrial applications.

Page 39: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 39

MBA Thesis en - No. of p. 76

The IoT offers many potential benefits for industrial users but only in the right

contexts.

A careful and purposeful approach can make adoption more practical and avoid

many pitfalls.

Executives see transformational impact of IoT as devices become smarter and more

integrated to expand manufacturing efficiency. IT and OT convergence will drive IoT

adoption which is a reality today as billions of devices are already connected through IoT

with the challenge being lower overall costs and data security. In the 2014 IoT World Forum

in Chicago on October 14-16, Rockwell Automation Chairman and CEO Keith Nosbusch

said “Only a few of the most progressive manufacturers have truly been able to bridge the

IT/OT gap.” Schneider Electric Chief Technology Officer Pascal Brosset cited the example of

MMG Mining, which increased mining capacity by 20% and added $1 billion to the

company’s bottom line just through instrumenting every asset in the mine. Brosset said “One

thing our customers expect is to make it cheaper. To me, that’s one thing we don’t talk

enough about. When you take the price down, then growth is exponential. By getting the

data, you constantly monitor performance of every asset.”

The potential benefits of deploying the I²oT for manufacturers as described by Tom Mariano

(2015) are:

Introducing equipment data tracking, remote equipment service, and predictive failure

analysis can improve product reliability and minimize downtime.

Acting on this information in real-time can boost customer’s return on investment

(ROI) through productivity and quality gains.

Automating the operation of equipment can result in lower customer labor costs and

increased manufacturing throughput.

Leveraging the knowledge gained from 24/7 connectivity can ultimately increase

long-term market share through product performance improvements.

Page 40: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 40

MBA Thesis en - No. of p. 76

This is a proactive approach for enabling intelligent manufacturing solutions by using web-

enabled sensors embedded in physical objects to gather, track, and analyze data in the

cloud, then acting on that information.

3.8 SECURITY & CREATING VALUE IN THE IOT WORLD

Security in the IoT World is extremely important as quoted by Travis Hessman (2013) ‘When

everything is online, security is everyone’s job’. In the connected world of manufacturing and

industrial automation, there have been many structured and targeted attacks lately like

stuxnet in June 2010 and car hacking of self-driven cars. These attacks have related

technical issues, financial issues and social issues which are risks in the IoT World. Mild

attacks on an unprotected connected control system costs $40 to $80 billion each year

which escalates to a higher value when their operations are targeted. By 2020, these attacks

will lead to chaos and even loss of lives as billions of devices will be connected to Internet so

all organizations rather than only security organizations should work together as integrated

teams. Cyber underground has pumped $3 billion into the attack capability while security

firms are only pumping millions into new antivirus and firewall programs which shows the

huge gap and the necessity for ensuring security is part of everyone’s business including

engineers, designers, planners and operations. This calls for a new cybersecurity plan which

is shared between huge online MES, industrial automation and security organizations for

rethinking safety in the IoT World. Thus, security is a very important requirement for a smart

and sustainable world using IoT for Industrial Automation.

During a recent webinar by SAP and OSIsoft on July 24, 2015 announcing their shared

interests for creating value for customers by a complete IoT software offering for both

business and industrial processes using SAP HANA Cloud Platform and Big Data Platform

with Hadoop (HDFS) plus SPARK Cluster Manager. This value is created by the IT and OT

convergence as shown in Figure 3-13 below where the strategy, architecture, security,

Page 41: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 41

MBA Thesis en - No. of p. 76

governance and hardware need to be reimagined from business processes, customer

experience and human behavior viewpoints.

Figure 3-13: The IT and OT Convergence (Source: SAP & OSIsoft)

I²oT technologies are creating value by improving:

Asset Health & Uptime

Operating & Production Performance

Safety & Risk Management

Logistics Optimization

Worker Experience

Business Process Improvement

Thus, the IoT mission and vision to ensure sustainable development and support triple

bottom line needs to combine the different transitions of business and technology with the

corporate transition as defined by Allen White, Vice President, Tellus Institute together with

Pavan Sukhdev, Yale University called the Corporation 2020. The four clear mechanisms by

which this corporate redesign can be achieved are:

Page 42: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 42

MBA Thesis en - No. of p. 76

Disclosing corporate externalities like Carbon Emissions;

Putting taxes on resources extraction like natural water and mining;

Enacting limits to financial leverage &

Making advertising accountable.

Thus, the new industrial automation corporation getting transformed by IoT to have a smart

and sustainable world should have the following goals:

Harness private interests to serve the public interest.

Accrue fair returns for shareholders, but not at the expense of the legitimate interests

of other stakeholders.

Operate sustainably, meeting the needs of the present generation without

compromising the ability of future generations to meet their needs.

Distribute their wealth equitably among those who contribute to its creation.

Governed in a manner that is participatory, transparent, ethical, and accountable.

Human capital is the key so never infringe on the right of natural persons to govern

themselves, nor infringe on other universal human rights.

4.0 PURPOSE OF THE RESEARCH

The main purpose of this research is to use IoT for Industrial Automation equipment

suppliers to enable things to be connected anytime, anyplace, with anything and anyone

ideally using any path/network and any service.

4.1 RESEARCH OBJECTIVES

The research objectives of this dissertation/thesis are threefold:

Page 43: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 43

MBA Thesis en - No. of p. 76

The first objective of this research is to provide information to organizations and

entrepreneurs interested in implementing a new business plan by using IoT for

Industrial Automation in India, Australia and France. This research will allow them to

avoid potential problems faced by various stakeholders.

The second objective is define the business plan by using IoT vision and IoT

applications that can be improved with sensing and control using industrial automation,

including health care, traffic control, vehicle safety, energy use, agriculture, and

manufacturing. This vision includes coupling massive sensing and control with big data

and analytics to accomplish advanced levels of optimization and efficiency in European

Union, Asia Pacific (Australia & Singapore), USA and BRICS countries i.e. Brazil,

Russia, India, China and Republic of South Africa.

The third objective is to give valuable advice to managers in India, Australia and France

who want to improve the industrial automation business plan and strategy in their

organizations using IoT technologies like Cloud/Fog Computing, Big Data/Analytics.

4.2 RESEARCH QUESTIONS

The core research question is:

How is smart and sustainable world possible with Internet of Things (IoT) vision and

applications?

Other queries that need to be addressed in line with the core question:

How to explore and implement IoT for Industrial Automation industry using Amazon,

Google, Microsoft & Oracle products?

What are the policies and technology changes required so that the triple bottom line

(TBL) is maintained and sustainability achieved?

What are the policies and technology changes required so that the triple bottom line

(TBL) is maintained and sustainability achieved?

Page 44: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 44

MBA Thesis en - No. of p. 76

5.0 RESEARCH METHODOLOGY AND DESIGN

In order to conduct the study and bring the elements of answers to the problem, a qualitative

approach was adopted. The choice is justified by the nature of our work which consists in

analysing the mission and vision of IoT and evaluation of the effects of this on Industrial

Automation strategy, investments, processes, policies, architectures, standards and

organization stakeholders and to try to develop a business plan to help organizations to have

a clear view of this field yet not really understood by all.

We have two sources of data, primary one from interviews of top managers and a

questionnaire with 10 questions undertook by many company managers or employees.

Indeed, the primary data gathered from semi-structured interviews using a sample

composed of global MNC organizations.

The managers interviewed about their organization IoT strategy or initiatives are either

company’s CEO, director/head of Engineering or R&D departments or in charge of CSR.

The interviews were recorded with the participants’ authorization, and they also agreed to be

cited in the research report. The funnelling technique was used to guide the interview.

These interviews were conducted out of the manager office, usually in a cafeteria to have

them speak openly and freely.

These interviews are extremely important to figure out the policy and the decision making

process in this field, according to Saunders, Lewis and Thornhill (2009, p. 320) ‘the order of

questions may also be varied depending on the flow of the conversation and may vary from

interview to interview’.

In the meanwhile, interaction is very important in fact managers may not be aware of the

latest IoT new approaches. Besides, interviews reveal more the human touch as far as the

research is more focused on the IoT policy related to stakeholders rather than focusing only

on wireless technologies, cyber security, carbon footprint or virtualization.

The interview questions were divided into five categories:

Page 45: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 45

MBA Thesis en - No. of p. 76

Category A: IoT Mission, Vision & Goals

Category B: IoT Sustainable Development Solutions

Category C: IoT Product & Service Life Cycle Management

Category D: IoT Organization Governance, Processes & Policies

Category E: IoT Human Capital & Investments

In addition, a secondary source of data using a small-scale survey. This survey’s data

source is there to complete the analysis due the technical aspect of the research topic.

The survey was completed on surveymonkey.com of about 10 questions some of them very

technical. Therefore it was difficult to ask them those technical questions during interviews.

In general this task takes time to complete and the participants have limited time to dedicate

to the interviews and depending on the position of the interviewee in their department they

may not have straightaway the answers.

Finally, in the discussion of the findings we use the qualitative data to help us understand the

patterns in the quantitative analysis.

6.0 BUSINESS PLAN FOR IOT

Deem Sensing Technologies (DST) Private Limited, India (Nambiar 2015) formed a new

department in 2013 for Automation Systems, MES and System Integration Solutions to be

recognized as an emerging market leader for new IoT Products and Services in Industrial

Automation industry together with DNK Technologies & Solutions Pty Ltd, Australia (Kandpal

2015) & outsource company iPAC Automation, India (Sanap 2015) through value proposition

of providing good quality, on-time delivery and cost reduction to our Customers by offering

Cloud Solutions for EMS (Energy Management System), WMS (Water Management

System) and DCM (Data Centre Monitoring) as shown in Figure 6-1 below.

Page 46: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 46

MBA Thesis en - No. of p. 76

Figure 6-1: Products & Services for IoT

This Business Venture will be providing Private/Hybrid Cloud for these three main solutions

namely EMS, WMS and DCM as shown in Figure 6-2 below.

Figure 6-2: DST Cloud Offering for IoT

These three solutions are detailed as shown in Figure 6-3, Figure 6-4 and Figure 6-5 below.

Page 47: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 47

MBA Thesis en - No. of p. 76

Figure 6-3: EMS Solution for IoT by DST

Figure 6-4: WMS Solution for IoT by DST

Page 48: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 48

MBA Thesis en - No. of p. 76

Figure 6-5: DCM Solution for IoT by DST

6.1 INDIA STRATEGY AND MARKETING

6.1.1 INDIA MARKET REVIEW

IoT already being recognized as the next emerging field in IT for India. Indian Government is

working on taking the right steps to encourage this industry.

The key areas for India to use the IoT are the following:

a) Transport: Huge unsaturated market mainly in private transport-buses, cars, taxi’s

both for comfort and for safety i.e. GPS tracking systems, anti-theft solutions etc. So

far this market is highly unsaturated and if these devices are introduced at an

affordable prize it has huge volume which can be tapped.

b) Buildings & Homes: Flats, plots (upper middle class i.e. houses between 40-60

Lakhs) are potential market which can be affordable for this segments and will add

value to their living conditions. This market segment is the upwardly mobile segment

and hence offers an immediate potential as customers.

Page 49: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 49

MBA Thesis en - No. of p. 76

c) SMEs: Auto manufacturing, pharmaceuticals etc.: revolute supply chain management

by networking machinery, sensors and control systems together which aims to reach

the JIT inventories (Honda, Big C), automated manufacturing, forward and backward

integration, optimize resources in order to increase the capacity and strengthen firm’s

competitive advantage

d) Healthcare: Hospitals, clinics, doctors working in rural and urban areas. This is a

hugely promising segment with a lot of rural areas which need to be covered. Here IoT

can bring value in helping healthcare to reach the rural area effectively and at

affordable cost. The government may also help in this segment through policies and

procedures in the future. One such example is the Industry-academia collaboration in

Bangalore-Robert Bosch Centre for Cyber Physical Systems at IISc (health indicators

of individuals, which are stored and controlled on their own devices also and not just

central data servers)-some applications

Bluetooth sensors to track hand hygiene habits of medical staff in St John’s

Hospital in Bangalore,

Sensor networks to help irrigation efficiency for Indian farmers

Motion tracking in post-operative therapy for Narayana Hrudayalaya patients

e) Government Projects: Infrastructure: monitor and control the operations of

infrastructure such as: bridges, high way, railways track then increase the system’s

supply efficiency and reduce risk. IoT devices can be used in scheduling repair and

maintenance activities by coordinating tasks between infrastructure providers and

users. This is a huge market with the government having declared that building

infrastructure is one of the key priorities. Thus the government is in the process of

simplifying the procedures to facilitate industry participation in the nationwide

infrastructure projects. Further to this the government has announced the project for

building 100 smart cities in India and hence this will generate a huge market for IoT in

the near future.

Page 50: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 50

MBA Thesis en - No. of p. 76

6.1.2 TARGET MARKET SEGMENT STRATEGY

The business venture aim is to approach 3 main markets: healthcare, energy management

and public service. As mentioned by David Wilan in B2B Market Segmentation (Figure 6-6),

Circle Research White Paper, the target market can be segmented based on: company

features; buying or usage behaviors; needs, preferences and desired relationship and the

attitudes.

Figure 6-6: B2B Segmentation Dimensions

1. Company Features: we focus on the segment of these companies with the

characteristics as following: SME with revenue from 1 million to 3 million USD and total

employees around 200 people in sectors: healthcare, energy management and public

service, located in Bangalore

2. Buying or Usage Behaviors: firms need a package management system includes

technologic devices and implementing support for internal development. The company

choose the suppliers based on the reputation of the suppliers and quality of products

and service; attitude to decision: high-involvement products thus need long time

consideration and complex decision making

Page 51: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 51

MBA Thesis en - No. of p. 76

3. Needs, Preferences and Desired Relationship: products which are price sensitivity

will be provided in full package with devices and technology support; promoted by

direct sale and through business relationship

4. Attitudes:

Business criticality of the product or service: high important

Desired relationship: partnership

Level of expertise and knowledge: high

Level of inertia and loyalty: high

6.1.3 COMPETITION AND BUYING PATTERNS

Analysis of the competitors shows that most of them are competing in highly specialized

areas and are small software based. Hence we will have an edge as we are integrated

(manufacturing, hardware, service, maintenance) and in more diversified products

Other factors which will boost this Industry:

Hardware Electronic Manufacturing to get big boost from India (Make in India

campaign) since presently a high % is being imported-some projections:

India’s National Policy on Electronics (NPE) aims at investing about US$ 100 billion in

the electronics industry by 2020 (chip design and embedded software will be one major

area)

Indian Government initiatives in forming guidelines for this Industry considering its

potential

Indian Government initiative of 100 smart cities will also propel this industry

Bangalore is the hub of IT and start ups

Electronic manufacturing also strong in Bangalore.

Can be a base for South India

Main Competitors: Sensegiz, GetActive, ConnectM, Altizon Systems, Connovate

Technologies, Cariq, Entrib Shopworx, Teewe and Lifeplot (Mapping)

Page 52: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 52

MBA Thesis en - No. of p. 76

6.2 INDIA VALUE CHAIN AND SALES

6.2.1 COMPETITIVE ADVANTAGE

The MD/CEO has its own manufacturing unit in this industry for 9 years in Bangalore and is

well connected in this industry (vendors, big organizations etc.). Also, MD is well connected

and well versed with the bureaucracy in this industry and other players (builders, government

officials, industry leaders) in state of Karnataka and Kerala.

The Director has 25 years of experience and is well connected in this industry; well versed in

writing tenders for this industry both for government and private industry; Also an expert in IoT

Place: Bangalore is suited to cover both Karnataka, TN and Kerala

Good relations with all the vendors who manufacture exclusively for this industry and are

difficult to have access to. Partnership with some of the important vendors.

Very few players have entered and market is huge and unsaturated (right time to enter)

Some of the investment needed for any such start-ups is avoided by using office spaces

already available with the founders (one in Bangalore and one in Mumbai) and strategic

collaborations with some of the manufacturers

Finally, IoT contains multiple products and several combination of business from

manufacturing to installing to service/maintenance and hence need a multi departmental

infrastructure which is inherently hard to have within one roof for a startup. This is overcome

because of the many collaborations and access to skill sets which the founders/top

management has. This gives it a competitive edge over other startups.

6.2.2 SALES FORECAST

Sales projection for the first 4 years of the business will be showed in the table below. The low

sale in Year 1 due to the small amount of customers because the company has just launched,

however, sale expectation will be double in the following year due to the increase of sale men

and marketing activities. Year 3 and Year 4 are expected to be double and triple for the reason

Page 53: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 53

MBA Thesis en - No. of p. 76

that the growth of sale team and new products launched as well as company’s good

reputation.

6.2.2.1 TABLE: SALES FORECAST

Sales : k$ Year 1 Year 2 Year 3 Year 4

EMS 200 400 640 800

WMS 60 180 360 360

DCM 84 240 384 480

Total Sales 344 820 1,384 1,640

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4

EMS 100 200 320 400

WMS 20 60 120 120

DCM 42 120 192 240

Subtotal Direct Cost of Sales 162 380 632 760

6.2.3 MILESTONES

The milestones for IoT Business Plan is as shown in the table below.

6.2.3.1 TABLE: MILESTONES

Milestone Start Date End Date Budget Manager Department

NDA Collaboration 1/6/15 30/6/15 $0 Deepak Services

Outsourcing 1/7/15 20/7/15 $0 Deepak Services

Totals $0

6.3 INDIA FINANCE AND ACCOUNTING

This is a very crucial part of the Business Plan for IoT as the start-up funding is key for

success.

Page 54: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 54

MBA Thesis en - No. of p. 76

6.3.1 START-UP FUNDING

At the beginning, the company fact with some issue like less customers, small market share.

The expenses will be higher than the revenue because the sales cannot make up the loss.

By spending more money into marketing and sales force, the company increases the sales

number, expands the market share in the next year, so the expenses increase more in first

year but the loss are less and we make a little profit. Continuing with this strategy, we will

expand the market and increase the revenue in next two years. In first year, we will receive $

4,000,000 to invest in Private/Hybrid Cloud system. This action will ensure DST takes

advantage in the market that will grow up to $ 14.4 trillion by end of 2022. Besides this

gradual investment every year for the next 3 years in order to install the new product

development.

6.3.1.1 TABLE: CAPEX

Cash Flow Year 1 Year 2 Year 3 Year 4

Beginning Cash $50,000 $3,963,450 $10,080,250 $10,279,650

Gross Margin $182,000 $440,000 $752,000 $880,000

Expenses $(261,550) $(320,200) $(543,600) $(589,000)

Investment $4,000,000 $2,000,000 $2,000,000 $2,000,000

Capital Expense $(7,000) $(3,000) $(9,000) $(1,000)

Change in Cash $3,963,450 $6,080,250 $8,279,650 $10,569,650

Ending Balance $3,963,450 $6,080,250 $8,279,650 $10,569,650

Capital expenses

Employee Workstations (PP) $7,000 $3,000 $9,000 $1,000

Prototype Expenses $0 $0 $0 $0

Cumulative CAPEX $7,000 $10,000 $19,000 $20,000

Page 55: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 55

MBA Thesis en - No. of p. 76

Depreciation

Depreciation Charge $2,333 $3,333 $6,333 $4,333

6.3.2 PROJECTED PROFIT AND LOSS

Although, the total cost of sales increase year by year but the Gross Margin keep high

because all of expense we spend for sale team in order to find new customers, expand the

market and sell more projects. The sale number increase faster than the cost of sale, so we

have the efficient sale team and we are going the correct strategy. Now we move to the

expenses, all expenses increase year by year but the percentage is not appropriate. As a

service company, we spent dominant to G&A and engineering expense instead of marketing

and sale. In short term, we can handle this situation but in long term, when the company

bigger the management team become bigger and slower, so it is not good for a company to

keep its position in the market. Our company decided to follow this strategy in the short term

and we will change strategy in order to suitable the market and keep our position and

growth.

6.3.2.1 TABLE: PROFIT AND LOSS

Year 1 Year 2 Year 3 Year 4

Sales $344,000 $820,000 $1,384,000 $1,640,000

Direct Cost of Sales $162,000 $380,000 $632,000 $760,000

Other Costs of Sales $0 $0 $0 $0

Total Cost of Sales $162,000 $380,000 $632,000 $760,000

Gross Margin $182,000 $440,000 $752,000 $880,000

Gross Margin % 52.91% 53.66% 54.34% 53.66%

Expenses

Engineering $82,300 $109,200 $181,600 $201,800

Page 56: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 56

MBA Thesis en - No. of p. 76

Marketing $60,750 $44,000 $76,800 $68,400

Sales $28,700 $65,000 $131,600 $154,800

G&A $89,800 $102,000 $153,600 $164,000

Other $0 $0 $0 $0

Total Operating Expenses $261,550 $320,200 $543,600 $589,000

EBITDA $(79,550) $119,800 $208,400 $291,000

Depreciation $2,333 $3,333 $6,333 $4,333

Net Profit (EBIT) $(81,883) $116,467 $202,067 $286,667

Net Profit/Sales (23.80)% 14.20% 14.60% 17.48%

6.4 MANAGEMENT AND TEAM

The Management team and Organizational structure is as shown in Figure 6-7 with the

staffing plan as well as salary projections as given below.

Figure 6-7: Management Team & Organizational Structure for IoT

Managing Director & CEO - Jeeja NT & C.K. Manoharan

Head - Sales and Business Development

Resident Director - Services

Head -Applications Engineering

2 Advisory Council

Members for IoT

Page 57: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 57

MBA Thesis en - No. of p. 76

Staffing Plan Projected (Year on Year):

Salary Plan Projected (Year on Year):

6.5 ASSUMPTIONS AND RISKS

The following general assumptions and risks have been considered for preparing this

business plan for IoT:

a. Market of IoT (Machina Research data cited at the TiE panel) in India by 2020

expected to be: $10-12 Billion (Rough Order of Estimate).

b. Internet of Everything (IoE) industry in predicted to be a USD 14.4 Trillion market by

end of 2022 using Sensors for H2M & H2H technologies.

c. India’s National Policy on Electronics (NPE) aims at investing about US$ 100 billion

in the electronics industry by 2020, so for IoT hardware more Electronics

Manufacturing Clusters (EMC) will be key as well as speedy implementations and

clearances by Indian Government.

Page 58: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 58

MBA Thesis en - No. of p. 76

d. Indian environment with extreme temperatures, high levels of humidity and dust,

erratic power supply and spotty telecom coverage which is a critical risk that need to

be mitigated with CAPA.

e. Wireless surveillance devices can easily be sabotaged and tampered with by

disgruntled employees so this high security risk need to be reduced with CAPA.

The detailed risk assessment will be done based on the Risk Management Impact &

Likelihood.

7.0 SUMMARY OF RESULTS AND ANALYSIS

The semi-structured interviews were done for organizations with following profiles:

Sector Organization Name

Description Interviewee Number of Employees

Industrial Automation

ABB R&D Product Manager

140400

Transport ALSTOM Engineering Domain Manager

65000

Information Technology & Services

Pitney Bowes Information Technology

Executive Assistant

10827

Data analysis of the results was done based on findings of interviews and the survey in

comparison with the literature review and research objectives/questions for these five

categories as shown below:

Category A: IoT Mission, Vision & Goals

Question 1: Who is in charge of the IoT business plan & strategy for defining mission, vision

and goals & what programs are running in your organization?

Based on the survey responses and the interviews, more than 60% people said that CEO or

MD or the Innovation team together with Technology & IT team define the business plan &

strategy as well as various programs running in the organization.

Page 59: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 59

MBA Thesis en - No. of p. 76

Question 2: What are the key standards, technologies and architecture models to reach your

IoT and Sustainable Development goals?

Based on the survey responses and the interviews, more than 90% people said that Cloud

Computing with Data Centers and Big Data with Hadoop databases are the key technologies

with MongoDB open database and IPv6 with ZigBee protocols and architectures following

these main focus technologies. These technologies are helping organizations in achieving

their IoT as well as Business and Sustainable Development goals based on CSR policies.

Page 60: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 60

MBA Thesis en - No. of p. 76

Category B: IoT Sustainable Development Solutions

Question 3: What is your most pressing reason for your business to adopt IoT and

Sustainable Development solutions?

Based on the survey responses and the interviews, more than 70% people said that the

most pressing reasons were technology changes, cost reduction for energy, growth in IT

infrastructure and data growth for the business or organization to adopt IoT and Sustainable

Development solutions. This was debated by one interviewee who mentioned Shareholder

Pressure to be the topmost.

Page 61: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 61

MBA Thesis en - No. of p. 76

Question 4: What solutions do you deliver today or plan to deliver that are sustainable to

deploy the IoT?

Based on the survey responses and the interviews, more than 50% people said Energy

Saving solutions are sustainable to deploy the IoT. But, this was debated by some

interviewees who were of the opinion or bias that energy savings were already delivered by

them so they need to be more efficient and cost reducing.

Page 62: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 62

MBA Thesis en - No. of p. 76

Category C: IoT Product & Service Life Cycle Management

Question 5: What Products similar to Energy Management Systems, Water Management

Systems and Data Center Monitoring using Cloud or Fog Computing & Big Data do you

deliver today or plan to deliver for IoT?

Based on the survey responses and the interviews, more than 60% people said SAP

solution together with the MES or DCS using Cloud or Fog Computing & Big Data will be

delivered for IoT.

Page 63: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 63

MBA Thesis en - No. of p. 76

Question 6: What Service Life Cycle Management support do you deliver today or plan to

deliver for IoT?

Based on the survey responses and the interviews, more than 90% people said that they

would like to retain the current SLC Management but would enhance it with remote

monitoring and engineering.

Page 64: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 64

MBA Thesis en - No. of p. 76

Category D: IoT Organization Governance, Processes & Policies

Question 7: What changes in the organization are you experiencing or foresee for

governance, processes and policies to support IoT?

Based on the survey responses and the interviews, more than 75% people said that they will

see new vertical/structure in the organization to support IoT with policies on data collection

using BYOD (Bring Your Own Device).

Page 65: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 65

MBA Thesis en - No. of p. 76

Question 8: As an organization are you willing to go out-of-box to form partnerships with

small open organizations rather than only using IoT Products from Google, Amazon,

Microsoft and Oracle?

Based on the survey responses and the interviews, more than 95% people said “Yes” which

shows their intent to integrate and team up with different organizations.

Page 66: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 66

MBA Thesis en - No. of p. 76

Category E: IoT Human Capital & Investments

Question 9: How do you foresee the human capital getting utilized in these challenging times

for deploying IoT?

Based on the survey responses and the interviews, more than 85% people said that a

separate workforce or team need to be focused on deploying IoT as well as implement, test

and maintain it.

Page 67: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 67

MBA Thesis en - No. of p. 76

Question 10: What types of investments are required to be done by various stakeholders for

IoT?

Based on the survey responses and the interviews, there have been conflicting views but

most of them expected the budget to be raised internally but were open to have partnerships

with different organizations specifically for security.

Page 68: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 68

MBA Thesis en - No. of p. 76

Thus, IoT technologies will bring a lot of changes in the organizations mission, vision, goals,

people, processes, policies, structures, technical know-how and last but not the least on

sustainability to ensure the whole society gets benefits of implementing IoT but this is still

debatable.

8.0 CONCLUSION

Faced with the changes in technology and standards with the introduction of Cloud

Computing and Big Data/Analytics also referred to as IoT or I²oT technologies for

Manufacturing, Engineering and Innovation/R&D in Industrial Automation industry as well as

the inventory management, supply chain management and cost reduction issues for the ICT

industry, it can be seen that the convergence has led to benefits.

IoT as a business plan is already delivering value and also improving the value chain of the

new and existing organizations based on the research data and analysis. The main

contribution of this research was to identify IoT technologies like Cloud Computing and Big

Page 69: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 69

MBA Thesis en - No. of p. 76

Data/Analytics, various architecture models used, tools for calculating the cost, value and

effort as well as various standards and protocols to be used by the Industrial Automation

industry to develop similar business plans which will be smart and sustainable.

The possible avenues of research that ensue from the research performed are listed below:

Financial Analysis of IoT for Industrial Automation Industry

Different Architectural Models & Supply Chain Improvement using IoT

GS1 Standards Improvement using IoT for Industrial Automation Industry

Green ICT using IoT

Some of the recommendations for building a smart and sustainable world using IoT for

Industrial Automation are listed below:

Level 3 software’s like OSIsoft PI, Werum PAS-X and Wonderware should be replaced

or integrated at the device level as it supports IPv6 protocol.

Level 4 software’s like SAP, Microsoft SQL, Oracle, Sybase and open databases like

MongoDB, Hadoop’s Hive and NoSQL should be integrated with Level 2 systems like

SCADA, DCS, PLC and MES.

Supply Chain Management systems for all organizations should be automated using

RFID technology using intelligent systems like SCADA, DCS, PLC and MES with Cloud

Computing and Big Data/Analytics.

The benefits of IoT as well as I²oT as researched and depicted in the IoE Value Index is

debatable as it is based on assumptions as well as Metcalfe’s law can also be modified. This

changes the business plan inputs which will lead to changes in the profitability and

sustainability of executing and implementing such a business plan. As the renewable

technologies like Solar Panels, Wind Energy, Tidal Energy and Hybrid Electric Vehicles are

still developing there is a possibility that these technologies will bring changes in the IoT

Value Index based on how small sensors are getting manufactured as well as the Internet

technologies and data storage technologies will change in future to become more pervasive

and distributed.

Page 70: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 70

MBA Thesis en - No. of p. 76

9.0 LIMITATIONS AND FURTHER RESEARCH

The researcher selected the data collection technique of exploratory method that is based on

a qualitative approach. However, combining the exploratory with a quantitative approach

would have helped the researcher to have a better understanding of the situation and narrow

down the findings.

Future research should gather data from a larger number of respondents to have a more

representative sample of organizations in India, France and Australia.

Future research should consider the following requirements for Self-manageable IoT

Systems which could be key to future of IoT.

Self-adaptation

Self-organization

Self-optimisation

Self-configuration

Self-protection

Self-healing

Self-description

Self-discovery

Self-matchmaking

Self-energy-supplying

Page 71: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 71

MBA Thesis en - No. of p. 76

10.0 APPENDIX

Keywords/Acronyms:

Sr. No. Keyword/Acronym Sr. No. Keyword/Acronym

1 Industrial Automation (IA) 11 Manufacturing Execution System (MES)

2 Smart Devices 12 Object Linking & Embedding (OLE)

3 Sustainability 13 OLE for Process Control (OPC)

4 Internet of Things (IoT) 14 Information and Communications Technology (ICT)

5 Machine-to-Machine (M2M) 15 OLE for Process Control (OPC)

6 Internet of Everything (IoE) 16 Unified Architecture (UA)

7 People-to-Machine (P2M) 17 Corrective and Preventive Actions (CAPA)

8 People-to-People (P2P) 18 Corporate Social Responsibility (CSR)

9 Distributed Control System (DCS) 19 Information Technology (IT)

10 Industrial Internet of Things (I²oT) 20 IoT Maturity Model (IoTMM)

Page 72: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 72

MBA Thesis en - No. of p. 76

IoT for Industrial Automation Questionnaire

Category A: IoT Mission, Vision & Goals

Question 1: Who is in charge of the IoT business plan & strategy for defining mission, vision

and goals & what programs are running in your organization?

Question 2: What are the key standards, technologies and architecture models to reach your

IoT and Sustainable Development goals?

Category B: IoT Sustainable Development Solutions

Question 3: What is your most pressing reason for your business to adopt IoT and

Sustainable Development solutions?

Question 4: What solutions do you deliver today or plan to deliver that are sustainable to

deploy the IoT?

Category C: IoT Product & Service Life Cycle Management

Question 5: What Products similar to Energy Management Systems, Water Management

Systems and Data Center Monitoring using Cloud or Fog Computing & Big Data do you

deliver today or plan to deliver for IoT?

Question 6: What Service Life Cycle Management support do you deliver today or plan to

deliver for IoT?

Category D: IoT Organization Governance, Processes & Policies

Question 7: What changes in the organization are you experiencing or foresee for

governance, processes and policies to support IoT?

Question 8: As an organization are you willing to go out-of-box to form partnerships with

small open organizations rather than only using IoT Products from Google, Amazon,

Microsoft and Oracle?

Category E: IoT Human Capital & Investments

Question 9: How do you foresee the human capital getting utilized in these challenging times

for deploying IoT?

Question 10: What types of investments are required to be done by various stakeholders for

IoT?

Name Interviewee: Position:

Organization: Date:

Page 73: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 73

MBA Thesis en - No. of p. 76

EMS Solution Architecture for IoT:

Figure 10-1: EMS Solution Wireless Architecture

WMS Solution Architecture for IoT:

Figure 10-2: WMS Solution Wireless Architecture

Page 74: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 74

MBA Thesis en - No. of p. 76

LEGAL PAGE

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by our team in this

business plan is confidential; therefore, reader agrees not to disclose it without the express

written permission of Deem Sensing Technologies Private Limited.

It is acknowledged by reader that information to be furnished in this business plan is in all

respects confidential in nature, other than information which is in the public domain through

other means and that any disclosure or use of same by reader, may cause serious harm or

damage to Deem Sensing Technologies Private Limited.

Upon request, this document is to be immediately returned to Deem Sensing Technologies

Private Limited.

___________________

Signature

___________________

Name (typed or printed)

___________________

Date

This is a business plan. It does not imply an offering of securities.

Page 75: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 75

MBA Thesis en - No. of p. 76

11.0 BIBLIOGRAPHY

Ashton, K., 2013. Street Smarts. RFID Journal, pp.1–1.

Banerjee, A., Bandyopadhyay, T. & Acharya, P., 2013. Data Analytics: Hyped Up Aspirations or True Potential? Vikalpa: The Journal for Decision Makers, 38(4), pp.1–11.

Bradley, J. et al., 2013. Internet of Things (IoT). Cisco. Available at: http://www.cisco.com/web/solutions/trends/iot/overview.html [Accessed May 18, 2015].

Chan Kim, W. & Mauborgne, R., 2009. Blue Ocean Strategy. Leadership Excellence, 26(5), pp.4–4.

Commission, E., 2013. Internet of Things Europe - Imagine everything was linked... - YouTube. Available at: https://www.youtube.com/playlist?list=PLD4B1B7AB8011CFB7 [Accessed June 2, 2015].

Evans, C., 2011. The Internet of Things: How the Next Evolution of the Internet is changing Everything. Available at: http://www.cisco.com/web/about/ac79/docs/innov/IoT_IBSG_0411FINAL.pdf [Accessed July 31, 2015].

Gutterman, S., Co-Founder, M. & CEO Green Builder, N., 2014. The Rise of the Internet of Things. Environmental Management & Sustainable Development News. Available at: http://www.environmentalleader.com/2014/01/08/the-rise-of-the-internet-of-things/ [Accessed December 9, 2014].

Hessman, T., 2013. Rethinking Safety in the IoT World. Industry Week/IW, 262(12), pp.44–44.

Jain, V. & Gupta, A., 2012. Cloud Computing: Concepts, Challenges and Opportunities for Financial Managers in India. Amity Global Business Review, 7, pp.22–29.

Kandpal, D.S., 2015. Welcome. Available at: http://dnktechsolutions.com/ [Accessed May 20, 2015].

Karczewski, D.J. von, 2014. Internet of Things: Facts and Forecasts. Available at: http://www.siemens.com/innovation/en/home/pictures-of-the-future/digitalization-and-software/internet-of-things-facts-and-forecasts.html [Accessed June 2, 2015].

Kim, W.C. & Mauborgne, R., 2004. Blue Ocean Strategy. Harvard Business Review, 82(10), pp.76–84.

Kowal, J., 2014. Industry 4.0 and industrial Internet of Things are automation investment opportunities. (cover story). Control Engineering, 61(11), pp.46–47.

Mariano, T., 2015. Connecting to the Industrial Internet of Things. Product Design & Development, 70(4), pp.22–23.

Mastelic, T. et al., 2015. Cloud Computing: Survey on Energy Efficiency. ACM Computing Surveys, 47(2), pp.33:1–33:36.

Page 76: Smart and Sustainable World using Internet of Things (IoT) for Industrial Automation

Doc Kind Thesis Project ID IoT for Industrial Automation

Audencia Nantes School of Management, France

Doc. no. Lang. Rev. Ind. Page 76

MBA Thesis en - No. of p. 76

Microsoft, M., 2015. Microsoft on Sustainable Cities and the Internet of Things. Environmental Management & Sustainable Development News. Available at: http://www.environmentalleader.com/2014/10/06/microsoft-on-sustainable-cities-and-the-internet-of-things/ [Accessed December 9, 2014].

Moorthy, J. et al., 2015. Big Data: Prospects and Challenges. In Vikalpa: The Journal for Decision Makers. Vikalpa: The Journal for Decision Makers. Vikalpa, Indian Institute of Management, Ahmedabad (IIMA), pp. 74–96. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=101862951&site=ehost-live [Accessed July 30, 2015].

Nambiar, C.K.M., 2015. Deem Sensing Technologies Pvt. Ltd-NTC Thermistors | PTC Thermistors | Temperature Sensor | Automation Systems | System Integration | MES Solutions. Available at: http://www.deemsensing.com/index.html [Accessed May 20, 2015].

Prahalad, C.K., 2012. Bottom of the Pyramid as a Source of Breakthrough Innovations. Journal of Product Innovation Management, 29(1), pp.6–12.

Prahalad, C.K., 2005. The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. Consumer Policy Review, 15(1), pp.31–32.

Prahalad, C.K. & Hammond, A., 2002. Serving the World’s Poor, Profitably. Harvard Business Review, 80(9), pp.48–57.

Rawal, A., 2011. Adoption of Cloud Computing in India. Journal of Technology Management for Growing Economies, 2(2), pp.65–78.

Sanap, W., 2015. ipacautomation | “Our Motto is to deliver the best as per customer needs and requirements within the budget and time specified.” Available at: http://ipacautomation.com/wp/ [Accessed May 20, 2015].

Saunders, A., 2014. The Internet of Everything. Management Today, (5), pp.40–43.

Storey, H., 2013. The industrial Internet of things. Control Engineering, 60(5), pp.54–57.

Vermesan, O. & Friess, P., 2013. Internet of Things - Converging Technologies for Smart Environments and Integrated Ecosystems, Denmark: River Publishers. Available at: http://www.internet-of-things-research.eu/pdf/Converging_Technologies_for_Smart_Environments_and_Integrated_Ecosystems_IERC_Book_Open_Access_2013.pdf.

Vermesan, O. & Friess, P., 2014. Internet of Things - From Research and Innovation to Market Deployment, Denmark: River Publishers. Available at: http://www.internet-of-things-research.eu/pdf/IoT-From%20Research%20and%20Innovation%20to%20Market%20Deployment_IERC_Cluster_eBook_978-87-93102-95-8_P.pdf.