SAP provided an ASUG webcast on the Internet of Things (IoT) late last month. Below are my notes.
Figure 1: Source: SAP
It is the “4th” Industrial Revolution
We still discuss Machine to Machine (M2M); this is a subset of IoT according to speaker
M2M is faster than IoT
IoT is a superset of end to end
The third industrial revolution was the electronic revolution
We’re lead by 4th Industrial Revolution with new technologies in a human environment
Figure 2: Source: SAP
The speaker said it was a progression, going from an Internet of Content from the 1990’s
Internet of content moved to a wider technology
Internet of content moved to Internet of People – chat, phones, Facebook, Twitter and Tumblr
The next generation is IoT where the devices become smarter – devices talk to each other, smart agents and start make decisions ahead of us
The pace of change is accelerating
There is an explosion of the number of devices connected to Internet. As an example, cars have Bluetooth built in and remote sensors. Insurance companies that allow you to upload information to them from their car will give preferential treatment on insurance and how are hard you break. Anything you can put a sensor in, pull data from, and connect data to where it needs to be.
Figure 3: Source: SAP
Figure 3 shows the phases of IoT
Predict changes in the near future
Machines will talk to each other but the sophistication will develop over time
Figure 3 is “speculative”
Devices will be offline and put sensors in them and get smarting with them
Devices will integrate and speak to other in intelligent ways
Actionable stage will be warn us
Last stage is new processes, new businesses
Figure 4: Source: SAP
McKinsey and other organizations say $5T to $25T impact
It is a major business opportunity affecting impacts of every business
Seeing major investments now in Retail
SAP is looking at areas of businesses that are responsive to technology, such as responsive supply chain (RFID chips as prices are falling)
Smart home with SAP customer in Australia- plug device into controller that monitor usage and go on and off
South Korea is building a “smart city”
Feasible to have smart cars that are driverless, which are legal in California
If you go to dcode you can see the smart vending machines
Look at business processes that will be responsive to technology, such as responsive supply chains, a Google car that drives itself
Cars talk to each other; break at the same time
Smart vending machine that makes recommendations
Figure 5: Source: SAP
Figure 5 shows the virtual cycle of Monitor, Analyze, Automate
Use internet to reach out to devices for monitoring and bring into existing business processes
Analyze the data from sensors to monitor what is going on at device level
What does this mean? You can fix something before it fails with improved asset utilization. You can have remote maintenance and service by predicting maintenance conditions. You can detect wear and tear on devices
Connected asset management is being used where the ability for wind turbines to talk to each other and monitor changes to conditions in weather.
See what is happening
The Oil and Gas industry exploration is getting smarter about process of exploration with more sensitive sensors. With storage you can monitor the usage of resources, pipelines pressure and the impact on each other
IoT is a superset of end to end technology
Figure 6: Source: SAP
Figure 6 shows IT implications. We have been hearing a lot about Big data
Speaker was at TDWI Las Vegas. The big data projects a few years ago were mostly about customer experience, sentiment analysis
Companies can buy twitter feed and sold to third parties. Twitter sells tweets to third parties. They aggregate tweets and slice and dice it.
IoT will be the “killer app” for big data.
Security will be the number one concern. It would be easy to take over a business by taking over a sensor and change the values. Security walls will have to reach out to security apps.
Figure 7: Source: SAP
As sensors and actuators integrate have to realize the devices are not always connected. Connectivity becomes less reliable.
Logistics companies are embedding SAP technology to collect the data offline and when online feed the data back.
Figure 8: Source: SAP
New Big Data projects are more about IoT. It is a dramatic shift in a short space of time, said the speaker.
It is moving from tweets to devices, said the speaker.
If you have a thousand sensors, the amount of data it is creating significant.
One plane can generate TB of data. The amount of data is astronomical and big data and IoT will merge into a single project.
Look at how information is being handled
Figure 9: Source: SAP
ESP (event stream processing) will drive the IoT
Understand the difference between data and events and we have a long ways to go to explain the difference. This is key to the technology you choose.
HANA is a core piece.
SAP doesn’t have an end to end solution but will partner with others to deliver a solution.
SAP said to check updates at sap.com/IoT
HANA, ESP and events will drive IoT
Business process side of SAP is looking at impact of IoT.
Figure 10: Source: SAP
The delivery mechanism could be any three shown in Figure 10
Cloud makes sense as the data is already in the Internet and rely on the cloud supplier to store the sensor data
Figure 11: Source: SAP
Figure 11 – there will be major changes in industry and SAP is looking at how it will impact business processes at SAP and customers
How to take next steps and learn
SAP feels it has a suite of technologies designed for IoT projects; filling holes with partners
Question & Answer
Q: Can you site an example where SAP engaged with customer, what did infrastructure look like?
A: Information is still under wraps; they are pilot projects
Q: Does SAP envision IoT data going into BI, ERP or some other dedicated new product?
A: Good question; data will go into an existing infrastructure; not creating new technology; combining technologies at the moment. SAP will evaluate going forward.
Testing connectivity between CEP and HANA to allow real time analysis
As time goes on may see new classes of technology and including developing new standards
Thinks IoT will be primary driver of new technology going forward.
Q: There is already similar functionality available for machine data collection for Plant Maintenance, as an example. Is this a possible starting point for further development?
A: Yes; he has seen an early PM IoT where a Facebook page would be created for an assembly line the workers would have a smart phone to post to that FB page information about that device.
Seeing machine data collection for PM and seeing automation of machine.
Major equipment suppliers have sensors on their products and collecting data for those products
Another application to monitor employees in a hospital where employees are caught not washing their hands (privacy). Another company monitors employees with their corporate badge
Q: Is SAP partnering with others and if so who?
A: Telcos, device manufacturers to pick up this information; working at industry level.
Q: Is there an SAP module providing CEP?
A: Event Stream Processor – a separate processor or buy with HANA
SAP is integrating those two products
Go to sap.com/ESP to download a demo