IoT deployment doubles among New Zealand enterprises in 2017, says IDC

The implementation of IoT solutions among enterprises in New Zealand has increased two-fold to 25.7% in 2017 from 13.7% in 2016, according to IDC.

IDC New Zealand’s yearly Internet of Things Decision Maker Report explains how the companies understand the advantages of deploying IoT and implement the solution to boost productivity and enhance customer related experience.

Explaining the reason behind the increase, Monica Collier, research manager for telecommunications, IDC New Zealand, said: "New Zealand organisations are understanding that the value of the Internet of Things is in the data it produces and, more importantly, what that data enables companies to act upon or improve. Additionally, endpoint costs continue to decrease and the range of connectivity options is increasing; it's easier to get an IoT business case across the line."

The report highlighted that the organisations implementing IoT solutions are more influenced by improving customer experience, than fixing internal processes. 

Summarising the opportunities associated with IoT, Collier concluded: "The New Zealand IoT Alliance research says that IoT could bring NZ$ 2.2 billion of benefit to the New Zealand economy over the next ten years. Our report illustrates how companies have understood that message and are implementing IoT to increase productivity and improve customer experience."

Alongside this, another newly published report by IDC presents a detailed analysis of enterprises providing cellular connectivity management and/or other capabilities such as device management for IoT. The report titled “IDC MarketScape: Worldwide IoT Platforms (Device and Network Connectivity Providers) 2018 Vendor Assessment” profiled 11 vendors including AT&T, Cisco, Ericsson and Verizon. The report has highlighted several factors that technology buyers need to consider while evaluating providers for IoT platform connectivity.

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Industry 4.0 in 2017 – a quick look at the powerful 7

1. The year of the hybrid cloud’s arrival in Industry 4.0

The combination of cloud and industrial (especially production-related) data has been a thorny issue in Industry 4.0 for years. Manufacturing data that affords insights into business processes will always be sensitive. They will not be made available in the cloud in the foreseeable future. However, a sharper distinction is being made: Is it machine process data that reveals nothing about what that machine makes and how it works? Such data is increasingly being seen as unproblematic for processing in the cloud. This distinction is a basic prerequisite for new services aimed to minimize downtime, for example, alarming and ticketing.

Learning in the cloud is also gaining traction in intralogistics. One such use case is predictive maintenance for forklifts in fleet management. Intelligence will increasingly be decentralized to do things like detect error patterns. Companies still conduct overall equipment effectiveness analyses and the like locally, on the premises. This requires hybrid solutions. The tech to make that happen is out there – fog computing, local clouds, or even edge computing.

New data-driven applications and services will not need to handle streamed data on a continuous basis. This development towards more decentralized, hybrid, selective and defined data analysis in Industry 4.0 applications will, in my opinion, characterize 2017 as the year that opened the cloud in Industry 4.0.

2. Digital twins: The year of the gateway to Industry 4.0

Digital twins are now part and parcel of every Industry 4.0 digitalization effort. They are to be understood as a standardized concept, allowing the standardization of technical interfaces independent of physical assets, providing information about energy consumption, for example, independently of the machine. Digital twins enable engineers to implement software solutions irrespective of the machine’s make or model. Why is that a big deal in Industry 4.0? The development of software solutions and of machines (including systems integration) can then be decoupled from each other. And that brings all the benefits of scalability: speed, independence from manufacturers, and solutions that coalesce horizontally, all across manufacturing and logistics value streams.

Production digital twins are used in physical plants where things are actually made. They are linked to IoT-enabled components by means of product digital twins. These are interfaced with performance digital twins to simulate or scrutinize the behavior of components; say, a vibrating motor in a faulty pump. This means we can consolidate, replicate, and analyze information on all manufacturing assets, their component parts, and other system-related processes – in real time and on one platform. This information is sourced via standardized protocols.

In 2017, Industry 4.0 is hard to imagine without digital twins. That is why I see it as the year of digital twins’ gateway to Industry 4.0.

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3. The year of Industry 4.0 solutions: Converging value streams

The factory of the future could rise up out of a greenfield project, but that is by no means a must. Assuming the more prevalent brownfield situation, what do we need to build tomorrow’s connected factory, alongside the above-mentioned approaches and concepts of a hybrid cloud and digital twins? The solution will have to factor all value streams into the equation. Yet island solutions still abound. Most are vertical and geared to special use cases in manufacturing or logistics.

Lately, though, we have been seeing pilot value streams converging in Industry 4.0 integration projects. For example, a new transport/order/management solution is connecting the intelligent supermarket, milk runs, and manufacturing orders in SAP.

When the ideal end-to-end solution arrives, it will unify

  • Manufacturing: The various functional lines will converge in the work order with the aim of achieving 100% on-time delivery and quality. Data will be tapped from every source, including the shop floor, the warehouse, tracking and tracing applications, and intelligent energy management systems.
  • Intralogistics: Smart systems will connect milk runs with shelves and the fleet.
  • Inbound/Outbound logistics: Since these are already highly optimized, further integration remains limited for now.

It is only through the intelligent connectivity of manufacturing, logistics, customers, and even product development that we gain holistic insights, for example, to get to the bottom of quality defects. In fact, this is how Industry 4.0 was originally defined.

Of course, Industry 4.0 solutions that cut across value streams will need to become more mature. One such integration based on digital twins and a pilot value stream is already underway at Bosch’s Rexroth plant in Homburg. This facility is setting up a dynamic dispatching system to manufacture smaller quantities, with the ultimate goal of economically producing customers’ very specific needs down to a lot size of one.

With all this in mind, I believe 2017 deserves to be called the year of converging value streams.

4. The year of very attractive Industry 4.0 open standards and open protocols

Manufacturers want open standards and open protocols; open source plays just a secondary role for them. Their primary aim is to avoid locking in vendors, opting instead to use a broad variety of solutions and machines. In 2017, traditional standards issued by ISO, IEC, and DIN/DKE seemed foreign, as the implementation of specific solutions took center stage. The Production Performance Management Protocol is an attractive semantic standard independent of communication format. The specifications are available to the Eclipse community.

There is increasing awareness of comprehensive Industry 4.0 management protocols. Why is this the case? Nowadays, there are many connected solutions and use cases in the Industry 4.0 market. They appeal equally to users and providers wanting to put together new Industry 4.0 packages that add value. All of this depends largely on how easy it is to integrate Industry 4.0 solutions and, consequently, open standards and open protocols, as well.

A lot has happened in the Industry 4.0 market in 2017. The Production Performance Management Protocol is one example; another is the strategic alliance ADAptive Manufacturing Open Solutions, or ADAMOS. To date, however, there are no market-leading standards. Against this backdrop, 2017 is also the year of great attractiveness.

5. The year of big starts in Industry 4.0 greenfield projects

In my eyes, 2017 is also the year greenfield projects in Industry 4.0 truly got off to a big start. Not only in Asia, but everywhere. Many companies asked Bosch this year to help them with Industry 4.0 greenfield projects. In particularly high demand is our real-world know-how as users and providers of Industry 4.0 solutions. Businesses also turn to Bosch for help with digital transformation – which can include strategies, consulting, implementation, and even full-service support. This implies matters such as the working environments of tomorrow, architectural measures for securing plant premises and, of course, all key aspects of connectivity.

These lighthouse projects aim to create milestones and to serve as reference implementations for the existing plants of industrial manufacturers.

By contrast, Industry 4.0 brownfield projects emphasize connecting existing assets, such as old test benches, as simply as possible. A brownfield approach also relies on plug & play, quick commissioning, and no changes to the existing IT infrastructure.

I regard 2017 as the year Industry 4.0 greenfield projects blossomed.

6. The year of learning Industry 4.0 data analytics

Hybrid Industry 4.0 solutions with distributed intelligence require extensive analytics of both historical data and real-time data, which serve as the basis for new, data-driven Industry 4.0 services that machinery vendors can, in turn, market as added value.

Industrial companies are increasingly open to learning in the cloud. To this end, more companies are investing in digital twins to serve as enablers. There has been great progress on use cases based on the analysis of historical data, especially manufacturing data. In coming years, we will see in the next step how machinery manufacturers return artificial intelligence back to machines, in the form of algorithms for the real-time analysis of process data. This advancement will benefit predictive maintenance as well as the monitoring and assurance of quality at production facilities (example: spot welding).

In this instance as well, machine operators will retain all production-related data. The focus now shifts to analyzing process data, especially from different machines. In the years to come, more and more machinery vendors will create multi-purpose solutions that will drive the availability of machines closer and closer to an overall equipment effectiveness of 100%. It will soon become possible to supply the right replacement parts before installed parts even fail. Before this can happen, however, mass quantities of data will be needed. And that will not happen overnight. In short, a sufficient database will allow proper analysis of data and the identification of insights that will improve processes. Initial pay-per-use approaches are emerging in the market; examples include pay per tightening and pay per cut meter.

One thing is clear. There is tremendous potential in data analytics for Industry 4.0. For this reason, Bosch founded a Center for Artificial Intelligence in 2017. This will help the company expand its expertise in all regards, including research, enabling, services, and key product challenges.

In my opinion, 2017 is the year of learning as regards the application of data analytics as well as Industry 4.0 products and services driven by data.

7. The Industry 4.0 forecast? Spring 2018 is coming.

I recently heard an expert at a conference say: “Industry 4.0 is like gardening in the spring.” It may be winter now, but a great deal will happen in spring 2018 and thereafter. The major suppliers to industry will sharpen their Industry 4.0 portfolios, restructure, and offer entirely new solutions and products. Bosch will continue to benefit from its in-house expertise ranging from sensors to cloud solutions – which we ourselves use in both experimental and productive ways.

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Top IoT success stories 2017

  • The IoT has become reality. The foundation has been laid and IoT projects are growing, generating revenue, and making companies more efficient.

  • However, the IoT market continues to be a learning market, and large companies must be flexible and fast enough to meet the new demands they are facing.

  • Many blog posts on the list are about Industry 4.0. Not only is the manufacturing industry one of the first users of IoT, it is also playing a decisive role in the digital transformation. However, posts on agriculture are always among the most read. The global challenges are driving new applications, and Bosch Software Innovations also has solutions for the AgTech. I am pretty sure that we will read a lot more about this in 2018.

1. AI in self-driving cars – beyond science fiction

Image showing how a self driving car sees its surroundings. Source: NVIDIA

A buzzword in recent years, artificial intelligence was also the subject of Jen-Hsun Huang’s presentation at Bosch ConnectedWorld 2017. The co-founder and CEO of NVIDIA, Huang’s talk was a highlight of the event. This post describes how NIVIDIA and Bosch are helping advance self-driving car technology with AI.

2. How should large organizations adapt to a changing world?

changing world Source: fotolia/WavebreakmediaMicro

How can companies adapt to the inevitable change the Internet of Things will bring forth? Uwe Raschke, member of the Bosch board of management, on why large organizations have to find their own approaches to digital transformation.

3. How the Internet of Things will revolutionize agriculture

oyster leases tasmanian shore yield agriculture Source: Bosch

Have you ever heard about the “Internet of Oysters”? For anyone interested in how an Australian AgTech business is transforming Australian agriculture, this is a must-read by The Yield’s Ros Harvey.

4. Customer case study: IoT in agriculture, from oysters to apples

case study iot in agriculture Source: iStock/simazoran

How can we feed the world if the global population exceeds nine billion by 2050? Developing and advancing processes in the food sector is an important step. Read how Bosch IoT device management software enabled The Yield to make agriculture smart using real-time data.

5. Data analytics projects: from theory to practice

coaching Source: iStock/Rawpixel

At the end of a data analytics project, you may find that it has fallen short or even missed its goal completely. Here are some typical mistakes you want to avoid.

6. Connected canteen: how to lunch in comfort with the IoT

bosch canteen singapore Source: Bosch

How do you set the air conditioning to maximize comfort when everyone’s preferences vary? We select our preferences to suit our needs in many aspects of life. Now, the IoT adds temperature to the mix: Learn more about the IoT in action at the Bosch canteen in Singapore.

7. Industry 4.0 fact-check: Where do we stand today?

BCX hack challenge Source: offenblende

Which Industry 4.0-related topics were hot in 2016, and what did we expect to be current in 2017? Take a look back at Stefanie’s thoughts and predictions at the beginning of this year.

8. How do you become an Industrial IoT business model innovator?

Industrial IoT business model innovator Source: iStock/PeopleImages

Do you want to become an IoT business model innovator? My colleague Veronika Brandt presents a business model innovation tool that can help you do just that.

9. Eight IoT device management use cases

Close-up of an ioT gateway for device management.

The Bosch IoT Suite connects more than six million devices, machines, and sensors. Based on this experience, Ansley Yeo put together examples of device management that highlight the heterogeneity and diversity of the objects we network.

10. How Industry 4.0 and lean production are becoming best friends

industry 4.0 and lean production Source: Bosch

How can production systems be improved with the help of lean production and Industry 4.0? This blog post describes the ways in which Industry 4.0 and lean production are compatible.

The post Top IoT success stories 2017 appeared first on Bosch ConnectedWorld Blog.

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Internet of Things News of the Week, January 8 2017

Mapping the floor, and your WiFi

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What exactly is going on with all of our chips? Security researchers have discovered that a flaw in Intel and some ARM processors can leak protected data if exploited. There are two exploits, Spectre and Meltdown. What’s worse is that the solution to Spectre isn’t readily available. OS vendors have tweaked their operating systems to mitigate the risks associated with Meltdown. As far as security news, this one is huge and people are trying desperately to figure out what is going on and how to fix it. For the more technically minded, the tweet stream is a good place to start. If you are less inclined to dig into how computers handle memory buffers then read Ars. (@gsuberlandArs Technica)

Layoffs at Eero: Mesh Wi-Fi startup Eero laid off about 30 people — or about 20% of its workforce — according to this article. Eero confirmed laying off 30 people, and said it was killing a speculative project so it could focus on its “core business.” My hunch is that Eero realized that times are getting tougher for once high-flying IoT startups and it should focus on getting revenue and building a business. Especially since its claim to fame (mesh Wi-Fi) has been copied by other companies. (TechCrunch)

Speaking of Wi-Fi: Roomba vacuum robots that have Wi-Fi chips will soon use their radios to create a map of Wi-Fi coverage in your home. This way you can avoid dust bunnies and dead spots. After Roomba’s CEO got in trouble a few months back for proposing that the company would map users’ homes, this features sounds more like an attempt to do something … anything … with some of the capabilities on the device that don’t involve selling user data. After the hubbub over mapping, the CEO promised never to do that. I’m curious who takes them up on this.  (TechCrunch)

Yes, even more Wi-Fi news: Cirrent, a startup I’ve been excited about for quite some time, has signed on several big name brands to use its automatic provisioning service. Electrolux, Cypress and Ayla Networks are now using Cirrent’s ZipKey service to get devices on the network faster. Electrolux will use Cirrent for its appliances, Cypress will make the feature available on its silicon and Ayla will let any company using its cloud offer the functionality. ZipKey works by using an available and certified Wi-Fi network to make a connection with a product when it comes out of the box. Then a consumer can claim the product and move it over to their own Wi-Fi network. Rob Conant, CEO of Cirrent, says ZipKey now has Wi-Fi networks covering more than 120 million homes in the U.S. and Europe — or 40% of them. Comcast is one of the companies providing hotspot access for ZipKey.

10 IoT companies to watch: The close of the year is a perfect time for lists and predictions, and most are pretty redundant. However, I liked this one from EE Times that starts off with nothing great, but then redeems itself by digging into the idea that many middlemen in the IT ecosystem are trying to absorb more roles in the industrial IoT. As an example, Arrow (a distributor and owner of EE Times) buying a company this week that lets it take on systems integration. The startups are pretty good too. (EE Times)

Smart baking startup gets more dough: Sorry, I couldn’t resist. Drop, the maker of a connected scale, raised more than $ 7 million in VC funding from firms like Alsop Louie Partners, according to an SEC filing. Drop has parlayed expertise from building its connected scale into creating recipes designed for humans and machines to make things together. That sounds fancier than it is today, but through a partnership with GE, you can use a Drop recipe to preheat your oven at the right point in a recipe automatically. Other automations could follow as cooktops get smarter.  (Axios)

Ads on Alexa? Eek! This week CNBC reported that Amazon was discussing marketing opportunities with large consumer product companies. My colleague Kevin wasn’t thrilled and started wondering what would make a good voice ad on a smart speaker that could be used by multiple people. Hint: Not much. (StaceyonIoT)

New York may be the first to try to hold algorithms accountable: I starting thinking about algorithmic bias in 2015 after I left Gigaom. I toyed with the idea of doing a fellowship or writing a book about how programmers were building a world that was data-driven and seemingly rational, but was fueled by all kinds of assumptions in the code. That world is rapidly coming to pass, and even without a book, people are wising up to this. As more sensors track more things, we’re going to get a lot of junk algorithms trying to nudge people in particular directions. I loved this story of a New York City Council member trying to ensure those algorithms are transparent to citizens. (The New Yorker)

A second neural network on a stick: Last year I got excited about Intel putting silicon from Movidius on a USB stick. The idea was to offer a powerful computer vision processor in a mobile format to see what people would do with it. To me it represented the beginning of being able to train neural networks at the edge. Now, there’s a second neural network on a stick from a startup called Gyrfalcon Technology that claims to be much more powerful and use less energy. The future is coming faster than I thought. (Alisdair Allan)

Stacey on IoT | Internet of Things news and analysis

14,000 Incidents: a 2017 Routing Security Year in Review

How was the state of the Internet’s routing system in 2017? Let’s take a look back using data from BGPStream. Some highlights:

  • 13,935 total incidents (either outages or attacks like route leaks and hijacks)
  • Over 10% of all Autonomous Systems on the Internet were affected
  • 3,106 Autonomous Systems were a victim of at least one routing incident
  • 1,546 networks caused at least one incident

An ‘incident’ is a suspicious change in the state of the routing system that can be attributed to an outage or a routing attack, like a route leak or hijack (either intentional or due to a configuration mistake).[i] Let’s look at just a few examples of incidents picked up by the media.

March 2017. SECW Telecom in Brazil hijacked prefixes of Cloudflare, Google, and BancoBrazil causing some outage for these services in the region.

April 2017. Large chunks of network traffic belonging to MasterCard, Visa, and more than two dozen other financial services companies were briefly routed through a Russian telecom. For several minutes, Rostelecom was originating 50 prefixes for numerous other Autonomous Systems, hijacking their traffic.

August 2017. Google accidentally leaked BGP prefixes it learned from peering relationships, essentially becoming a transit provider instead of simply exchanging traffic between two networks and their customers, causing large-scale internet disruption. It hit Japanese users the hardest, slowing or blocking access to websites and online services for dozens of Japanese companies.

October 2017. Another BGP mishap caused reachability and performance problems for networks such as Twitter, Google, and others. For almost 20 minutes, traffic for many large CDNs was rerouted through Brazil, caused by a BGP leak.BGP mishap caused reachability and performance problems for networks such as Twitter, Google, and others. For almost 20 minutes, traffic for many large CDNs was rerouted through Brazil, caused by a BGP leak.

November 2017. BGP routing issues between Level3 and Comcast caused large scale network service degradation in North America for slightly more than 90 minutes. Another route leak.

December 2017. Several high-profile sites (Google, Apple, Facebook, Microsoft, Twitch, NTT Communications and Riot Games) were rerouted to a previously unused Russian AS. Two BGP routing incidents only lasted about three minutes each.

Not a single day passed without an incident. While none of the incidents was catastrophic, all of them continue to demonstrate the lack of routing controls like those called for in MANRS that could have prevented them from happening.

This is just a small fraction of what happened in the routing system in 2017. Rather than measure routing security by anecdotal evidence, let’s look at the data.

Routing Incidents

Of the 13,935 total incidents, 62% were classified as outages and 28% were considered routing attacks like route leaks and hijacks.

6,128 Autonomous Systems were involved, which is more that 10% of all announced ASNs on the Internet. If we look at the outages, almost half of them happened to Brazilian operators.[ii]

Let us look to incidents that represent a potential attack, be it malice or a configuration mistake. It is interesting to analyze such routing incidents by the roles a network played – whether it was a victim, a culprit, or an accomplice.

The U.S. ranks first among countries where networks became a victim of an incident, for example when a network’s prefix is hijacked. Last year, that happened 1,193 times in the U.S. It is followed by Brazil (450), India (299), and Russia (242).

Unsurprisingly, the majority of the networks victimized by the most incidents are based in the U.S. In total 3,106 Autonomous Systems were victims of at least one routing incident in 2017.

U.S. and Brazil, followed by Russia and China, lead the list of countries in which networks caused incidents. They are responsible for more that 75% of all incidents. Overall, 1,546 networks caused at least one incident during 2017.

The ranking is different when it comes to the top 10 guilty networks. An interesting case is AS198949 – SecurityDAM, responsible for 54 incidents, mostly prefix hijacks. This is a security provider, offering DDoS attack mitigation among other services. Most probably these incidents were part of attack mitigation actions. Since the BGPStream only registers suspicious routing changes, without knowing intent in some cases it is impossible to distinguish an attack from a legitimate (or consented) routing change.

The U.S. also leads the list of countries with networks that could have prevented an attack, but didn’t, such as not filtering false routing announcements from their customers (one of MANRS Actions). The usual suspects – Russia, Brazil, and China – follow.

In the end, I’d like to note that absolute numbers tell only part of the story. They need to be put into perspective. Countries and networks differ significantly in terms of connected users, announced prefixes, etc. The numbers in this report are not normalized by any of these metrics, but to give an idea, look at a possible one – number of active networks in a country. For example, perhaps the U.S. leads many of these lists simply because there are more networks where incidents could happen. (The “AS’s advertised” chart below comes from data available at http://resources.potaroo.net/iso3166/regiontablecc.html.)

Another point is that it is hard to say whether these numbers are OK, or really bad. Is the system improving or getting worse? The statistics in this report will be a good basis for a trend analysis in years to come.

What You Can Do – Join MANRS

MANRS is a community-driven initiative coordinated by the Internet Society that provides a minimum set of low-cost and low-risk actions that, taken together, can help improve the resilience and security of the routing infrastructure. The more service providers apply these minimum actions, the fewer incidents there will be, and the less damage they can do.

There are four MANRS Actions:

  • Filtering – Ensure the correctness of your own announcements and of announcements from your customers to adjacent networks with prefix and AS-path granularity
  • Anti-spoofing – Enable source address validation for at least single-homed stub customer networks, your own end-users, and infrastructure
  • Coordination – Maintain globally accessible up-to-date contact information
  • Global Validation – Publish your data, so others can validate routing information on a global scale

Maintaining up-to-date filters for customer announcements could mitigate many route leaks. Preventing address squatting could help ward off things like spam and malware. Keeping complete and accurate routing policy data in Internet Routing Registry (IRR) or Resource Public Key Infrastructure (RPKI) repositories is essential for global validation that helps prevent BGP prefix hijacking. Having updated contact information is vital to solving network emergencies quickly.

Let us hope we will see more network operators joining MANRS, and improvements in routing security in 2018. Happy New Year!


[i] BGPStream is an operational tool that tries to minimize false positives, so this number of total incidents may be on the low side.

[ii] This is only counting the number of incidents and not factoring in duration or number of prefixes affected, which may indicate the impact of these incidents.

[Editor’s Note: This was originally published on the MANRS blog.]

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