Industrial Internet of Things: Unleashing the Potential of Connected Products and Services

7/17/2019 Industrial Internet of Things: Unleashing the Potential of Connected Products and Services

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educational institutions will need to develop platformsfor continuous learning, collaborating with students,businesses and governments to produce contents relevantto valued skills.

Job-related training and skills certification will becomeintegrated into business processes and continuous, asthere is more emphasis on delivering consistent outcomesand ongoing training across the extended enterprise. Such

training will also reduce the length of onboarding time fornew employees. Accenture research reveals that 79% oforganizations already use just-in-time and social learning tobuild skills quickly.38For example, a newly hired retail salesassociate could be given a wearable intelligent assistant onthe first day of the job. When a customer asks a questionabout a product, the tool would use automated speechrecognition to detect verbal cues, and deliver relevantproduct information. This just-in-time delivery of informationcould enable the associate to learn as he is helping thecustomer.

The same quantification capabilities that power the outcome

economy will also be at work in skills development.Employers will use cognitive training to develop detailedmodels over time on how workers think and act in specificjob situations. Using this data, companies can tailor trainingprogrammes to individuals to make them more effectiveand efficient. Such accelerated learning techniques alsooffer great potential to align training and skills with contentand context, as successfully demonstrated in a militarysetting. For example, as part of the Accelerated LearningProgram, the US Defense Advanced Research ProjectsAgency (DARPA) uses neuroscience principles to improvesensorimotor and cognitive functions.39

The workforce impact of digital technologies will begradual and profound, as the Industrial Internet transformsindustries and business practices. Because system-widechanges take time and planning, business and governmentleaders and planners will need to act now in preparing forthe digital talent market. Some of the initial steps mightinclude examining existing approaches, experimentingwith new digital workforce models, and developing acomprehensive strategy on how to reform the educationand training system to be more responsive to the demandsof the future workforce.

The future of robots

Robots are microcosms of the Industrial Internet. Theyfeature three core capabilities: sensing, thinking and acting.Most industrial robots used in manufacturing today areno more than advanced control arms with limited sensingand reasoning capabilities. Just like the machines aroundthem, these robots are preconfigured to carry out repetitive,structured tasks.

As sensors, hardware and software continue to improve,robots will become more intelligent and autonomous intheir capabilities while still working under human direction.For instance, robots will eventually be able to understandthe physical world around them, in much the same way ashumans do. As a result, robots will appear freely in openenvironments, such as offices, homes and shopping malls,doing tasks that only humans once did. The use of servicerobots is expected to grow faster than the use of industrialrobots in the near future (e.g. security guards fromKnightscope).40

One distinct capability in the next generation of industrialrobots, such as Baxter or Universal Robots, is their ability towork safely alongside humans. New sensors and softwareenable these machines to detect and avoid collisions withpeople, and such robots are now also reprogrammableso that they can quickly learn from human workers howto perform new tasks. These features, together with lowercosts, mean that robots will be deployed more widely.As human co-workers, collaborative robots are likely toreshape manufacturing processes and workforces. Inbringing automation to new applications, robots couldalso help manufacturers in high-cost countries regain acompetitive edge, which might also mean fewer jobs for thelower-skilled workers but more higher-skilled jobs instead.

At the technology level, robotics represents one of the mostexciting areas of innovation among corporate R&D labs,start-ups and university research centres. Here are just afew examples:

Qualcomm is designing a new brain-inspired chipcalled Neural Processing Units (NPUs), which will beboth highly scalable and power efficient. The newchip promises to redefine the cost/performanceratio for robots, just as mobile chips have done for

smartphones.41

Google continues to advance machine learning byacquiring a series of robotics and artificial intelligencestart-ups.42

At Cornell University, researchers are building a large-scale, cloud-based knowledge repository calledRobobrain, which can be used over the Internet to teachrobots like Baxter how to comprehend (sense) theirenvironments and quickly take on new tasks.43

Similar to the advancement of mobile technology 15 to 20years ago, the robotics revolution is just beginning. Overthe next 20 years, it will likely lead to profound impacts onbusinesses, the economy and society.

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The Industrial Internet is

here and now. Leading

companies across multiple

industries are already

reaping tangible benefits in

improving operations,

lowering costs, generating

revenues and creating

competitive differentiation.

Major smart cities such as

Barcelona, Chicago and

Hamburg are also benefiting

from reduced crime,

improved urban services

and better infrastructure

integrated with real-time

connections, sensors anddata. To further accelerate

the adoption, industry,

technology and government

leaders need to work

together to address

challenges such as security,

interoperability, standards

and digital talent gaps.

John Chambers, Chairman and ChiefExecutive Officer, Cisco

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Acknowledgements

We would like to acknowledge and extend our sincere gratitude to those who contributed to this initiative. The projectengaged a multistakeholder community across the private, government, civil society, and academic sectors through itsSteering Committee, Working Group and series of workshops and interviews.

We wish to thank our project advisor, Accenture, for their commitment and support, and in particular, Paul Daugherty,Prith Banerjee, Edy Liongosari, Dadong Wan and Peggy Hsii. We also thank Adrian Turner of Saltgrid for his significantcontribution.

At the World Economic Forum, appreciation goes to Derek OHalloran and Elena Kvochko for their guidance anddedication in this project.

Additional thanks are extended to:

Casper Clausen Enterprise Architect, Technology Innovation A.P. Mller-Maersk A/SLe Tang Vice President and Head of Corporate Research ABB

Dan Elron Managing Director AccentureFrank Riemensperger Senior Managing Director AccentureMatt Reilly Senior Managing Director Accenture StrategyPierre Nanterme Chairman and Chief Executive Officer Accenture

Allan Alter Senior Research FellowAccenture Institute for HighPerformance

Juan Alberto Yepez Chairman AlienVault Inc.Michael Eitelwein Head of Disruptive Technology Allianz SESam Ramji Vice President of Strategy ApigeeMarkus Korsten Chief Manufacturing Officer Apollo TyresAmit Narayan Founder and Chief Executive Officer Autogrid Systems Inc.Bella Powell Head of Strategy, Cyber Business Unit BAE SystemsStefan Neuwirth Head of Corporate Office Administration Bayer AG

Amit Kalyani Executive Director Bharat ForgeBilly Ho Executive Vice President, Enterprise Engineering BlackberryUwe Weiss Chief Executive Officer Blue Yonder Start UpChris Amos Programme Director, Smart Grids in Group Strategy BTPetra Trost-Guertner Vice President, Business Development BT

Vikas KrishnaVice President, Mobile Application and Content ManagementSolutions

CA Technologies

Aglaia KongChief Technology Officer and Vice President, Internet of EverythingSolution

Cisco

Bryan Tantzen Manufacturing Lead CiscoJohn T. Chambers Chairman and Chief Executive Officer CiscoTony Shakib Vice President, Connected Industries CiscoSimon Gibson Founder Content Culture Group

Peter Taylor Chief Operating Officer CWS Boco International GmbHHarald Rudolph Director, Strategy Daimler

Carlos Jericho Petilla Secretary of EnergyDepartment of Energy of thePhilippines

Andreas Brandt Head of Digital Channels and Marketing Technology Deutsche BoerseMarkus Kueckelhaus Director, Trend Research DHLFabio Rosati Chief Executive Officer Elance-oDesk

Andre JohnsonVice President, Technology Services and Chief Information OfficerG&A

EMC Corporation

Jeff Doerr Senior Manager, Business Development of Innovation Services Flextronics

Lucile HofmanHead of Strategy and Digital Transformation, Information SystemsDivision

GDF SUEZ

John RiceVice Chairman and President and Chief Executive Officer, Global

Growth and Operations

GE

Marco Annunziata Chief Economist GEStuart Dean Chief Executive Officer GE ASEANJose Victor Emmanuel De Dios Chief Executive Officer GE PhilippinesNiloy Sanyal Managing Director, Industrial Internet Commercial Strategy GE Software

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Anant Gupta President and Chief Executive Officer HCL TechnologiesHarmeet Chuahan Associate Vice President HCL TechnologiesSukamal Banerjee Senior Vice President HCL TechnologiesFranz Gormanns Director, Engineering, Adhesive Technologies Henkel AG & Co. KGaA Tod Nielsen Chief Executive Officer HerokuAmip Shah Head Internet of Things Research Hewlett-PackardGuo Ping Deputy Chairman of the Board Huawei TechnologiesIvan (Rantong) Huang Senior Director, Global Marketing and Strategy Huawei TechnologiesJesse Jijun Luo Director, Solution Management and Marketing Huawei TechnologiesAgustin Delgado Director, Innovation, Environment and Quality Iberdrola

Richard Soley Chairman and Chief Executive OfficerIndustrial Internet Consortium &Object Management Group, Inc.

Ton Steenman Vice President and General Manager, Internet of Things Strategy Intel

Yossi Vardi ChairmanInternational TechnologiesVentures Inc.

Ashwin Rangan Chief Innovation and Information OfficerInternet Corporation forAssigned Names and Numbers

Kuek Yu Chuang Vice PresidentInternet Corporation forAssigned Names and Numbers

Anthony Goldbloom Founder and Chief Executive Officer KaggleOlivier Brique Vice President, Technology, Cyber Services and Technologies KudelskiAndres Ruzo Chief Executive Officer Link America

Jeff Wilcox Corporate Vice President, Engineering Lockheed MartinJohn Kelly Senior Research Engineer, Data Analytics Initiatives Lead Lockheed MartinRay O. Johnson Chief Technology Officer Lockheed Martin

Erik Brynjolfsson Director, MIT Initiative on the Digital EconomyMassachusetts Institute ofTechnology

James Isaacs Chief Executive Officer MocanaFrancois Meunier Managing Director, Technology Equity Research Morgan StanleyAlok Batra Chief Executive Officer MQ IdentityTarkan Maner Chief Executive Officer NexentaBenjamin Wesson Vice President, Internet of Things OracleJon Bruner Editor-at-Large OReilly MediaTim OReilly Chief Executive Officer OReilly MediaLaurie Yoler Senior Vice President, Business Development Qualcomm

Stan Schneider Chief Executive Officer Real-Time InnovationsFabia Cristina Tetteroo-Bueno Country Manager and General Manager, Lighting Royal Philips

Jeroen TasChief Executive Officer, Healthcare Informatics, Solutions andServices

Royal Philips

JP Cojan Executive Vice President, Strategy and Transformation SafranJason Wild Vice President, Enterprise Innovation Salesforce.comMarc Benioff Chairman and Chief Executive Officer Salesforce.comAdrian Turner Chief Executive Officer SaltgridRod Beckstrom Chief Security Advisor SamsungAlexander Atzberger Chief of Staff, Chief Executive Officer Office SAP

Gil PerezSenior Vice President, Cloud Industries and General Manager,Connected Vehicles

SAP

Adaire Fox-Martin President SAP Asia

Cliff Wu President, Greater China SAS Institute Inc.Tobias Nittel Director, SAP Business SAS Institute Inc.Cyril Perducat Executive Vice President, Digital Services Transformation Schneider ElectricJean-Pascal Tricoire Chairman and Chief Executive Officer Schneider ElectricElisabeth Neun Project Manager, Strategy Siemens AGMichael Steinbauer Senior Consultant, Business Development and Strategy Siemens AGRagnvald Naero Senior Vice President, Business Development StatkraftNatarajan Chandrasekaran Chandra Chief Executive Officer and Managing Director Tata Consultancy ServicesMike Cihra Director, Emerging Opportunities, Software Group Telstra Corporation LtdDavid Gutelius Principal and Co-Founder The Data GuildStefan Kistler TV IT, Strategic Sales and Marketing TV Informationstechnik GmbHRajan Goel Vice President, Strategy for Building and Industrial Systems UTC

Janos Sztipanovits Professor, Electrical Engineering and Computer Engineering andComputer Science and Director, Institute for Software IntegratedSystems

Vanderbilt University

Siby Abraham Chief Technologist and Vice President, CTO Office WiproTom Williams Independent Board Director and Strategic AdvisorTucker Durmer Independent Technology Executive

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World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland

T l 41 (0) 22 869 1212

The World Economic Forum isan international institutioncommitted to improving thestate of the world throughpublic-private cooperation in thespirit of global citizenship. Itengages with business, political,academic and other leaders ofsociety to shape global, regionaland industry agendas.Incorporated as a not-for-profitfoundation in 1971 andheadquartered in Geneva,Switzerland, the Forum isindependent, impartial and nottied to any interests. Itcooperates closely with allleading internationalorganizations.

Industrial Internet of Things: Unleashing the Potential of Connected Products and Services

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