Bringing the power of IBM

Watson IoT to the Edge with

Cisco

Dave Locke
Senior Inventor
IBM IoT Ecosystem Manager
Connecting Things that Matter
@DaveJLocke
Agenda

 The Power of Data

 IBM Watson IoT Platform

 Edge processing

 Use Cases

 Summary

3
IoT is Driving Digital Disruption Into the Physical World
Accelerating advancements in technology… Are transforming every part of business…

Improving Operations and Lowering Costs

 Predictive maintenance
 Analyze and reduce risk
 Factory automation
Advanced Analytics

Product Lifecycle Mgmt Creating New Products and Business Models

 Smarter, safer cars
Cloud Computing  Health and fitness
 Home and building
automation
Pervasive Connectivity

Embedded Sensors Driving Engagement and Customer Experience

 Smarter, more profitable retail
 Engaged events and venues
 Apps that link the digital and
physical world around a brand

4
 Smarter Planet and the Internet of Things

INSTRUMENTE INTERCONNECTE INTELLIGENT

D D

Digital technologies (sensors
and other monitoring devices)
are being embedded into
many objects, systems and
processes
In the globalized, networked world,
people, systems, objects and
processes are connected, and they
are communicating with one another
in entirely new ways
Leveraging the data generated by
digital technology provides
intelligence to help us do things
better, improving our
responsiveness and ability to predict
and
optimize for future events

Little Data Big Data

IoT Driving Forces…
Price Power conservation,
Energy Generation

Form Factor, Connectivity,

Miniaturization Network

Edge Drive Innovation

Most IoT data are not used
currently. For example, only
1 percent of data from an oil
rig with 30,000 sensors is
examined. The data that
are used today are mostly
for anomaly detection and
control, not optimization and
prediction, which provide
the greatest value.
Traditional Data Processing Model

Traditional: Deliver Data to the Analytics

• Cloud Data Data

• Big Data
• Analytics IoT Device
• Applications Analytics
Anatomy of an IoT Solution

Devices Platform Applications

Watson IoT Platform

01
0110
0010
001001

Other
Sensors, Devices,
Gateways & Networks Data Sources
Weather BMS Other IoT platforms
Map Asset
9
9
IBM Watson IoT Platform

10
The IBM Watson IoT Platform
Everything you need to Innovate with IoT
Offerings Third Party Apps
Third Party Apps

IBM Watson IoT Platform Connect

Attach, Collect & Organize, Device Management, Secure
Connectivity, Visualization

IBM Watson IoT Platform Information

Management
Storage & Archive, Metadata Management, Reporting, Streaming
data, Parsing and Transformation, Manage unstructured data

IBM Watson IoT Platform Analytics

Predictive, Cognitive, Real-time, and Edge

IBM Watson IoT Platform Risk Management

Security Analytics, Data Protection, Auditing/Logging,
Firmware Updates, Key/Cert Mgmt, Org Specific Security

11
IoT requires the right capabilities applied to the right data for the right
results
Real-Time
Most machine data is
worthless about 1
second after it is
generated
Real-Time analytics enables
monitoring and processing of
streaming data to enable
“perishable insights” and
automated decisions in near
real-time
In the cloud & at the edge
Predictive
70% of the most
profitable
companies will
leverage predictive
analytics in 2016
Predictive models are
created from historical data
to generate insight and
recommend actions before
situations cause business
disruptions
Cognitive
IoT will rapidly
change our ability to
interact with
machines and
engage customers
Cognitive technology
enables deeper customer
engagement through
enhanced interactions and
automated discovery and
insights using machine
learning techniques
13
Watson IoT Platform Analytics Real-Time
Real-Time Insights
• Contextualizes device data
• Monitors streaming data to detect situations
• Acts on insights from the data Real-time
dashboard

Real-time data
Rules trigger an action, such as
IoT IoT 4 an alert, email, text message or
Connect Analytics a work order in Maximo
Data comes in through
22 Watson IoT Platform 3
Connect Data drives real-time
analytics and business rules

Data may be collected by a

Recommendations
gateway device for
connectivity or protocol
5 drive response in
translation Maximo
3a 1
Data is enriched with
external data such as
11 Weather or asset
master data
Sensors provide
information about the device Maximo
SCADA, historians

Device

15 15
IBM Predictive Maintenance on Cloud Predictive

IBM Predictive Quality on Cloud

IBM Predictive Warranty on Cloud
report & recommend act
analyze
SaaS offering profile
Prebuilt analytics
Faster time to value ingest
Designed for line of business
Reduces need for data scientists
Insight at point of engagement

16
16
Watson IoT API families allow easy integration of
cognitive analytics into IoT apps

Natural Language Processing Machine Learning

Enables interaction through natural human Automates data processing and continuously
language and dialog monitors new data to learn and improve results

Textual Analytics Video/Image Analytics

Enables mining of textual sources to find Enables monitoring of unstructured data from
correlations and patterns in these vast amounts video feeds and image snapshots to identify
of untapped data scenes and patterns

17
Analytics at the Edge

18
Why This is So Unique
Traditional: Deliver Data to the Analytics

• Cloud Data Data

• Big Data
• Analytics IoT Device
• Applications Analytics

Analyze Data in the 'Right' Place by Distributing Analytics from Cloud to Edge

Data Data Data

Edge Fog
Node Node
IoT Device
Analytics Analytics Analytics

This is a Differentiated Route from the Industry Direction

Combined Architecture

&
Enable edge analytics; route to the cloud Enable Cognitive Computing

IoT Device Edge Node Fog Node Cloud

Data Data Data

Processing Processing Processing

© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Public
Analytics at the Edge Edge

IBM and CISCO announce analytics from Cloud to Edge!

 Define and manage analytics
in the cloud, run them where it
makes sense

 Analyze & act on data close to

source

 Reduce burden on constrained

networks and reduce
transmission costs

 Enable continuous operations

even if the network is down

 Deliver high value data to the

cloud for richer cross site /
cross fleet analytics
21
Expanding Analytics Further Into the IoT Environment

IBM Watson IoT Platform

IBM IoT Platform Analytics: An integrated
(Cloud)
cloud-and-edge analytics programming model
that allows control and optimization over the
data flowing between edge and cloud.
Edge Gateway

WIoTP Edge IoT Devices

Analytics Agent

Operations:
• Filter and reduce data sent to cloud
Capabilities:
• Pre-process and transform raw
• Complex analytics data
• Analytic definition and distribution to • Identification of critical conditions to
edge send to cloud for additional
• Longer term trends analytics
• Pattern detection and machine • Drive actions as the result of
analytics
learning
22
Where Does the EAA Run?
Edge ….

IoT Gateway IoT Devices

IBM Watson IoT

Platform

• EAA will run on IoT Gateway devices made by companies we

partner with
• IBM is partnering with Cisco today and will be partnering with
other gateway providers in the future

23
Combine with Cloud Analytics For Added Value

IBM Watson
IoT Platform

Edge Service
Analytic Request
Results

IoT
Gateway
with EAA Device • Analytics on the edge can send
Commands data resulting from analytics to
the cloud for additional analytics
• Can be combined additional IoT
data for additional and analytics
and drive cloud based actions
24
24
How it works
CLOUD ON-PREM

Configure Rules &

1
Actions in the Cloud
IBM EAA Filters &
Aggregates Device
Data, Rules Trigger,
Drive Alerts & Actions
Analytics
Data, Alerts, &
Cloud Actions Flow Gateway 4
Deploy to Back to Cloud
IBM Edge IBM Cognitive
4b Analytics Agent
Engine (EAA)
Watson IoT Platform
2
IBM Real-time Local Actions
Actions Broker; Cisco Edge,
4a Go Back Out
Insights Fog Computing
& Edge Analytics to IoT Devices

Device Data
Flows into
Enrich with Context 3
the Edge
5 (Weather) & Apply
Deeper Cognitive, IoT Device IoT Device
Predictive Analytics

25
A progression of analytics & capabilities at the edge…

Unstructured data is also proliferating in the form of

video, image &audio data. This data needs to be
correlated with other sources of machine data and
Complex systems need more natural
processed for insights
interaction patterns via voice and chat
that operate independently of the cloud Unstructured data
Natural Language
Processing
Data is filled with trends, such as rising
temperature or cyclical patterns in a
motor’s RPMs, we need to automatically Predictive
understand norms and forecast issues Mission critical equipment and
Machine Learning processes need to run smoothly, and
you need advance warning of issues in
order to avoid down time, business
Edge Workflows & Transactions disruption, and safety issues
Increasingly, we’ll need to handle more complex
logic and transactions at the edge, extending
insights to more complex orchestrations of
actions with enhanced security via blockchain

Real-Time
High speed, ‘perishable’ data require
scalable contextualization and processing
to gain insight and react in near real time

26
Use Cases

27
Targeting three operational patterns
Industries: Automotive, Oil & Gas, Manufacturing, Heavy Equipment
Examples: Discrete manufacturing & continuous operations
Potential: Economic impact of $1.2 trillion to $3.7 trillion per year in 2025 (McKinsey)
Autonomous
Benefits
Operations • 10 – 20% reduction in health & safety costs
• 5 – 10% increase in worksite productivity
• 5 – 10% reduce costs of equipment

Industries: Transportation, Oil & Gas, Utilities, Mining, Construction

Examples: Shipping, Drilling, pipelines, oil platforms, wind/solar farms
Potential: Direct economic impact of $160 billion to $930 billion per year in 2025 (McKinsey)
Remote
Operations Benefits
• 10 – 20% increase in productivity
• 5 – 12.5% decrease in operation costs
• 10 – 40% cost savings for equipment & maintenance

Industries: Commercial Real Estate, Travel & Transportation, A&D, Heavy Equipment, Electronics
Examples: Elevators, motors, aircraft & engines, buildings & systems, commercial equipment
Large Scale Potential: Economic impact of $560 billion to $850 billion per year by 2025 (McKinsey)
Operations &
Benefits
Fleets • 10 – 20% increase in personnel productivity
• 5 – 12.5% decrease in logistics & scheduling costs
• 10 – 40% cost savings for equipment & maintenance

28
Global Auto Manufacturer benefits from edge-based Condition
Monitoring & Predictive Maintenance

Challenges
• Ensure high quality welds made by robots during manufacturing, improve detection
speed to reduce impact of down process activities
• Monitor robot health through predictive modeling to detect early signs of
deteriorating performance and risk of failure

Solution
• Edge analytics for real-time monitoring of welding robots based on properties such as vibration,
rotation speed, velocity and weld temperature
• Cloud-based cognitive analytics for forecasting asset health and predicting component failures
• Components: IBM Predictive Maintenance & Quality, IBM Watson IoT Platform & Edge Analytics,
Cisco Edge Analytics Fabric

Outcomes
• Higher quality welds with reduced rework, overtime, and scrap improving output
and decreasing overall costs
• Predictability of robot issues allowing for pro-active maintenance during
operational down time
Port of Cartagena leverages Condition Based Maintenance
Challenges
• Fleet of hundreds of vehicles, cranes and boats operating 24x7x365.
Struggling to maintain equipment efficiently.
• Can’t afford to rely exclusive on cloud analytics due to potential
connectivity problems.

Solution
• Consists of: Cisco UCS240 Server, Cisco Edge Analytics Fabric,
Watson IoT Platform with Edge Analytics.
• Optimizing maintenance by triggering automatic alerts based on
conditions at the edge (fuel levels, battery voltage, engine conditions
and other advanced measures).

Outcomes
• Now conducting condition-based maintenance, informed by actual
condition of assets operating at the edge.
• Critical data analyzed immediately at the edge; high-value data sent
data for deeper analysis in the cloud.
Utility improves outage detection and notification

Challenges
• Equipment failures and storms resulting in outages in the electrical grid
• Gaining real-time understanding of emerging situations to respond quickly
and appropriately
• Notifying customers of the issue, current status and estimated restoration

Solution
• Consists of: Cisco router (pole-top mounted), Cisco Edge Analytics Fabric, Watson IoT
Platform with Edge Analytics
• Help utility identify power outages faster by bringing analytics to the edge of grid to monitor
smart meter telemetry and pinpoint outages as they occur
• Forward analytic results back to the cloud for more powerful analytics, wide-area
intelligence & cognitive learning

Outcomes
• Improved notification time for the utility
• Lower operating expenses, Increased customer satisfaction
• Improved awareness and faster, proactive decisions through improved analytics
Silverhook Powerboats
Challenges
• Operating engines that are costly and dangerous to damage; rely on
engine governors which adversely impact performance.
• Need to monitor real-time engine conditions and get feedback to
operator with low latency.

Solution
• Consists of: Cisco IR829 Ruggedized Network Router, Cisco UCS240
Rack Server, IBM Watson IoT Edge Analytics
• Created rules at the edge, triggering alarm based on engine condition.
New dashboard shows real-time race data, including status, engine
condition, speed, RPMs and more.

Outcomes
• Better real-time monitoring with low latency.
• Helps Silverhook push for maximum performance with confidence,
enabling them to avoid engine shutdowns and win more races.
Silverhook Powerboats
Summary

34
 Summary
• Analytics are a key to gaining insights from IoT data

• Scalable solutions require a variety of analytics

performed on the right data…and at the right location—
including real-time, predictive, and cognitive &
performed from edge to cloud

• Cognitive analytics will enable us to deliver

transformative solutions that interact with users
naturally and can learn from and automatically process
the flood of data

• IBM has the portfolio of analytics to help customers

succeed with IoT solutions and a network of partners to
help deliver

35 35
IBM IoT – Get started today
Learn more about IBM’s point of view
on the Internet of Things
ibm.com/IoT
Try out Internet of Things on Bluemix
ibm.biz/try_iot
Try out Real-Time Insights
ibm.biz/try_rti

Try out Edge Analytics

https://ibm.biz/Bdsdzs
Getting Started video for Real-Time Insights
youtu.be/_Q4GlqAf2m4

Join us in our IoT conversations

@IBMIoT
36 36
37
Edge Applications
Condition Based Maintenance
Condition Based Maintenance (CBM) uses
sensor data from equipment and applies a
monitoring strategy that uses the actual
condition of the asset to decide when and
what maintenance should be done. CMB can
augment a time-based maintenance strategy
and helps reduce failures while reducing the
cost of maintenance overall by right sizing
maintenance intervals. Operations benefits
from greater asset availability and better
predictability of performance.
Predictive Maintenance
Predictive Maintenance applies a deeper
analysis of historical data to build predictive
models for asset health and failures.
Predictive models are then used to give
forewarning of failures giving operations and
maintenance the time to address impending
issues with decreased risk of failure.
Predictive models can be developed as an
extension of CBM and used to understand
potential failures of equipment in real-time.
Predictive Quality
Predictive Quality works holistically across
equipment and work cells to understand the
predictors of poor quality across a process.
Predictive Quality applies statistical modeling
to historical data from across equipment to
generate predictive quality models for the
entire process. Predictive Quality uses data
such as environment or weather conditions
and asset properties.
38