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ENERGY	IIoT
Industrial	Internet	of	Things	(IIoT)
Claudio	Lima
Co-Chair	IIC	Energy
All	rights	reserved	©	2017
2
Takeaways
All	rights	reserved	©	2017
Decentralized	Digital	Energy	(DDE)	Concepts
IIoT DDE	Evolution	and	Important	Considerations
IIC	and	IIC-Energy
IIoT DDE	Applications
3
Evolution	of	Concepts	and	Technologies
All	rights	reserved	©	2017
IoT (Internet	of	
Things)	is	an	
evolution	of	
established
concepts…
• Automation/
SCADA
• Machine-to-
Machine	(M2M)
• e.g.	fleet	management
4
Defining	IoT:	The	Internet	of	Many	“Things”
All	rights	reserved	©	2017
Interaction	of	“Things”	or	“Machines”	with	
other	“Things”	in	distributed	connected	
platforms
Device-to-Device	P2P
Device-to-Cloud
5
Consumer	vs	Industrial	IoT
All	rights	reserved	©	2017
6
Defining	IIoT for	Mission	Critical	Applications
All	rights	reserved	©	2017
IIoT CIoT
intersection	between	IIoT and	CIoT
OPERATION
ENTERPRISE
IT Information	Technology
OT Operation
Technology
Consumer	IoTIndustrial	IoT
CONSUMER
• high	value	assets
• cyber-security
• performance
• low	latency
• real	time
IIoT Focus	on	Mission	Critical	Operations	and	Enterprise	Applications
MISSION	CRITICAL
OT/IT	Convergence
7
Digital	Oil	Field	With	Connected	“Things”
All	rights	reserved	©	2017
source:	BI	Intelligence
Connected	Oil	Wells
Sensors/actuators	(”things”)
and	communications	gateway
Connectivity
Cloud	Platform
Applications/
Analytics
End-to-End	Industrial	Internet	of	Things	Oil	&	Gas	
“Centralized”	Architecture
All	decisions	and	processing	are	done	remotely,	
away	from	the	end	devices	(at	the	cloud	level)
8
Simplified	3-Layers	IoT Reference	Architecture
devices	&	gateways	
(with	local	applications,	ML,	etc.)
communication
network
cloud
computing
communications/
protocols
cloud	platform
applications,	analytics,	
visualization,	cognition	(AI)
Layer	1
Layer	2
Layer	3
Note:	The	layers	are	not	OSI	layers
end-to-end	security
end-to-end	device-cloud	management
All	rights	reserved	©	2017
9
Two	Important	Concepts
All	rights	reserved	©	2017
Energy	Edge/Fog	vs.	Centralized	Cloud
Computing
Energy	IIoT “Weak	Link”	and	Semi-
Autonomous	Systems
10
Edge/Fog	vs.	Centralized	Cloud	Computing	in	Digital	Energy
All	rights	reserved	©	2017
Low	latency	data	processing,	which	does	not	require	data	be	sent	to	the	
Cloud	or	remote	data-center	for	analytics	
EVENT	DRIVEN	IIoT
DATA	PROCESSING
Fog	introduces	the	
practice	of	selectively	
sending	data	to	the	
Cloud	as	needed.	
some	algorithms	may	only	
require	few	data	points	
“Gateways”
RTD
RTD:	Real-Time-Data
non	RTD
Typical
Centralized
Cloud	Computing
Descentralized
Cloud	Computing
IOT	DEVICES
11
Issues	of	Centralized	IIoT Cloud	Computing
All	rights	reserved	©	2017
Bandwidth	Costs:	for	certain	applications,	the	bandwidth	required	to	transmit	data	from	edge	devices	is	
cost-prohibitive	à Processing	them	locally	save	costs.
Connectivity	Reliability:	for	deployments	in	remote	areas	(e.g.	offshore	oil	rig	the	connectivity	may	
not	be	reliable	à Running	them	locally	as	a	“semi-autonomous”	system	improves	this	issue.
Latency:	for	some	situations	that	require	real-time	data,	the	latency	of	the	communication	link	to	the	cloud	
is	unacceptable	à Processing	them	locally	improves	this	condition.
Power	Consumption:	Many	IIoT edge	devices	have	limited	power	budget	and	cannot	transmit	data	to	
the	far	end	cloud	without	affecting	their	lifetime	performance	à Running	them	locally	improves	this	power	
budget	and	increase	device	lifetime	using	low	energy	devices	and	protocols.
Security:	Most	IIoT devices,	often	limited	in	functionality,	cannot	provide	the	leve of	security	required	by	an	
end-to-end	IIoT system.		Also,	constant	communication	of	IIoT device	“to-from”	cloud	may	expose	extra	level	of	
security	vulnerability	to	potential	threats	à Limiting	the	cloud	comm.	frequency	reduces	security	threats.
Edge/Fog	Blockchain-Enabled	IIoT	in	Digital	Oilfield
All	rights	reserved	BEC	©	2017
FOG/EDGE RTD
CENTRALIZED	
CLOUD	
COMPUTING
oil	well
CENTRALIZED	DIGITAL	
OILFIELD	WITH	IIOT
IIoT	devices
event-driven	or	
selected	data
local	
decision	
central	cloud	decision
Machine	Learning/AI
cloud	
integration
take	action	on	DOF
data	in	real-time	
IT	EXPERTISE
OT	EXPERTISE
DECENTRALIZED	DIGITAL	
OILFIELD	(DDOF)	WITH
BLOCKCHAIN-ENABLED	
IIOT
BEC FRAMEWORK
Smart	Contracts	(events)
Edge	Machine	
Learning/AI
Smart	Contracts	(events)
The	IIoT “Weak	Link”:	Towards	a	Semi-Autonomous	Systems
All	rights	reserved	BEC	©	2017
COMMAND	&
CONTROL	CENTER
real-time,	agile	broadband	decentralized	edge	network
DATA	LAKESCENTRALIZED	
CLOUD	
COMPUTING
QoS-Quality	of
Service	Enabled
NETWORK	ACCESS
PROVIDER,	ISP,	etc
NET	NEUTRALITY/
DEEP	PACKET	INSPECTION	(DPI)
IIoT	WEAK	LINK
IIoT	devices
edge	command	&	control	signals
reporting,	provisioning,
status	updating	signals
fast	lane		(BIG	DATA)
slow	lane
fast	lane
• IIoT	Traffic	will	be	Prioritized	and	Classified	based	on	Its	Mission-
Critical	Relevance	using	DPI	Technology
• Local	Fast	Lanes	will	process	data	locally	using	a	IIoT Weak	Link	to	
Centralized	Cloud	for	“Light”	Operation	(reporting,	provisioning,	etc)
BEC FRAMEWORK
14
Digital	Transformation	Needs…
All	rights	reserved	©	2017
Three	Driving	Forces	Behind	“Digital	Revolution”	in	Energy
Industrial	Internet	of	Things	(IIoT)
• Devices
• Cloud	Platform
• Big	Data/Analytics
Artificial	Intelligence	(AI)
Blockchain/Smart	Contracts
15
The	4th	Industrial	Revolution	is	Already	Happening…
All	rights	reserved	©	2017
IIoT is	Driving	the	“Connected	Things”	4th Industrial	Revolution,	BUT….
+	…
sensors/actuators	(“things”),
network	infrastructure
(cloud,	connectivity,	
platforms),	etc.
1999
86	yrs 99	yrs 30	yrs 17	yrs
16
But	Something	Just	Happened	in	March	2016…
All	rights	reserved	©	2017
The	(Re)Born	of	Artificial	Intelligence	à AAI	Applied	Artificial	Intelligence.
Machine	(Deep	Learning	Algorithm)	Beats	Human	(Go	Game	Pro)
DRIVERS:
• Lots	of	Data
• Fast	Computer
Processing
• Cheap	Cloud	
Processing
17
AAI	+	IoT Will	Transform…
All	rights	reserved	©	2017
…the	way	we	live,	our	society,	our	industries	and	jobs/careers	in	the	
next	3yrs	and	AAI	is	the	“brain”	of	IoT systems
Machine-Level
Intelligence	Station
18
AI	Driven	Economy	and	Exponential	Innovation
All	rights	reserved	©	2017
We	Cannot	Underestimate	the	AI-IoT Technology	Innovation	in	the	Next	3yrs
When	Disruption	
Happens,	It	Can	
Happen	Fast
APPLIED	ARTIFICIAL
INTELLIGENCE	+	IoT
DRIVEN	ECONOMY
next	3	years
19
What	is	Driving	AAI	(Machine	Learning)-IoT?
All	rights	reserved	©	2017
Need	more	
control	and	
monitoring	of	
end	device
Reduces	data	
frequency
acquisition	
Real-time	data	
acquisition	and	
analysis
Low-latency
communications	
capability
Large	
amount	of	
data
BIG	DATA
Data	
Correlation
(intelligence)
New	
Services
More
Efficiency
Resilience
Cost
Optimization
More
Quality
More
Automation
Machine
Learning
Predictive
Analytics	and	
Event-Driven
Cloud-computing/
Data	center
MORE	INFORMATION	
STATUS	AND
SYSTEM	CONTROL
More	decentralized
Nodes/Devices/Sensors
More	
Information
Technology
driving	and	
supporting
Operational
Technology
IT/OT
Convergence
LOCALIZED	INTELLIGENCE
CONTINUOUS	FLOW
OF	DATA
ACTIONABLE	DECISION	BASED
ON	EVENT-DRIVEN
DATA
20
And…Add	Blockchain Smart	Contracts
All	rights	reserved	©	2017
IIoT Blockchain Will	Complement	the	Driving	4th Industrial	Revolution
smart	contracts smart	contracts smart	contracts smart	contracts
High	Value	Distributed	Assets	– Operation	Accountability	with	Smart	Contracts
21
Important	IIoT Considerations
All	rights	reserved	©	2017
• Cybersecurity
• Interoperatbility
• Open	Standards
• Real-Time	Mission	
Critical	Infrastructure
22
IoT Hot	Issues
All	rights	reserved	©	2017
As	More	Electronics/IT	(smartness)	is	Added,	More	Vulnerable	It	Becomes
As	more	electronics/communications	and	IT
are	added:
• Susceptibility	to	Cyber	Attacks
• Vulnerability	to	Electromagnetic	Pulse	
(EMP/HEMP)
and	also
• Net	Neutrality/Deep	Packet	Inspection
23
IIC	Industrial	Internet	Consortium
All	rights	reserved	©	2017
Vision: The	Industrial	Internet	Consortium	is	the	world’s	
leading	organization	transforming	business	and	society	
by	accelerating	the	Industrial	Internet	of	Things	(IIoT).	
Mission:	To	deliver	a	trustworthy	IIoT in	which	the	
world’s	systems	and	devices	are	securely	connected	and	
controlled	to	deliver	transformational	outcomes.
• Launched	in	March	2014	by	five	companies:
The	IIC	is	an	open,	neutral	“sandbox”	where	industry,	academia	
and	government	meet	to	collaborate,	innovate	and	enable.
Over	260	Member	
Organizations
Spanning	30	Countries
24
IIC	Publicly	Announced	IIoT Testbeds	&	Use	Cases
All	rights	reserved	©	2017
February	2017
IIoT TESTBEDS
IIoT USE	CASES
25
IIC	Liaison	with	IoT Standard	Organizations
All	rights	reserved	©	2017
IIC	is	an	open	membership	organization	working	collaboratively	on	an	informal	basis	with	
many	other	standards	organizations.
The	IIC	is	not a	
standards	organization.	
IIC	evaluates	and	
organizes	existing	
standards	to:
• Advocate	for	open	
standard	technologies,	
and
• Influence	the	global	
standards	development
26
IIC:	Leading	the	Industrial	IoT Digital	Transformation
All	rights	reserved	©	2017
©2017	Real-Time	Innovations,	Inc.		Permission	to	distribute	granted.
IIC	Founding	and	Contributing	Members
Industrial	Internet	Consortium:	250+	Companies,	25+	Countries
All	rights	reserved	©	2017
27
IIC	Energy	Working	Group	(ETG)
IIC	Energy	
Architecture
IIC	Energy	Testbed
IIC	Energy	Use	Cases
Events
Liaison
Documents
Meetings
Technical	Updates
Industry	Advisory
Driving		Industrial	IoT Collaboration
Key	Activity	Pillars
Create	IIC	ETG	Reference	Architectures
Promote	and	Drive	IIC	ETG	Testbeds	
Develop	IIC	ETG	Use	Cases	for	IIoT
for	(i)	Utility	and	(ii)	Oil	&	Gas	industries
1
2
3
28
Dynamics	of	IIC	Energy	ETG	Activities
All	rights	reserved	©	2017
29
IIC	Energy	Working	Group	(ETG)
utilities
renewables
oil	&	gas
All	rights	reserved	©	2017
IIC	ENERGY	CORE	MARKETS
IIC	TBWG	Testbed	Group
IIC	Architecture	
Group
30
IIC	IIoT Testbed	Interoperability	Framework
All	rights	reserved	©	2017
31
IIoT Energy	Reference	Architecture
All	rights	reserved	©	2017
Layered	Databus Architecture	Topology
Oilwell	Databus
Local	Control	
Station
Thermal
Acoustic
Pressure
Data
Recording
Sensors
Equipment	
Health	
Monitor
Analytics
Actuators
Databus
Gateway
Fluid	
Controllers
Databus
Gateways
Predictive	
Maintenance
Recording	Services	
Safety	
Monitor
Production	
Planners
HMI
Enterprise
Control	Center	Databus
Oilwell
Oilwell
Oilwell
Reservoir	Encrypted	Wireless	Databus
IIC	Industrial	Internet	Reference	Architecture	(IIRA)	v1.8
IOC
Integrated
Operation	Center
32
Real	Time	vs.	Non	Real	Time	IIoT Architecture
All	rights	reserved	©	2017
e.g.	Utility	Grid MQTT is	optimized	for	
centralized data	collection	
and	analysis	– connecting	
sensors	and	mobile	devices	
to	applications	running	in	a	
data	center.
DDS is	optimized	for	
distributed	processing	–
directly	connecting	sensors,	
devices	and	applications	to	
each	other	without	any	
dependence	on	centralized	
IT	infrastructure.
DECENTRALIZED	(P2P) CENTRALIZED	(HUB-AND-SPOKE)
DATA	DISTRIBUTION	
SERVICE	(DDS)
33
34
IIoT IIC	Microgrid Testbed	Reference	Architecture
35
Distributed	IIoT IIC	Reference	Architecture
FIELD	B
FIELD	A FIELD	C
IIoT weak	links
IIoT weak	link
36
IIoT Oil	&	Gas	Platform	Benefits
All	rights	reserved	©	2017
optimize	production	
operations by	reducing	lost	
production	opportunities
optimize	drilling	operations	
by	reducing	non-productive	
time	(NPT)
Benefits	of	O&G	IIoT Real	Time	Platform	Solution
Integrated,	Edge-to-Core
Real	Time	O&G	IIoT platform
37
IIC	IIoT Oil	&	Gas	Testbed	Goals
All	rights	reserved	©	2017
• To	improve	operation	efficiency,	optimize	drilling	&	
production	operations	of	upstream	O&G	systems	with:
Integrated	Real	Time,	End-to-End	Secure	IIoT O&G	
Operations	for:
• real	time	drilling
• preventive	maintenance	
• production	insights	at	the	edge
• With	broader	aggregation,	visibility	and	analytics	in	the	
Integrated	Operations	Center	(IOC)
IIC	Testbeds	are	for	experimentation,	learning,	technology
and	business	concept	validation
38
IIoT Oil	&	Gas	End	User	Benefits
All	rights	reserved	©	2017
Benefits	to	O&G	Customers:
• Operators:	Real	Time	Drilling	&	Production	Operation	Insights
Reduce	network	costs,	complexity	and	cyber	attacks
• Oil	Field	Service	(OFS):	Integrates	data	from	multiple	OFS,	leverage	and	
visualize	OFS	shared	partner	data	for	optimized	processes	and	operation
39
Summary
All	rights	reserved	©	2017
Energy companies conduct complicated analysis, but real-time,
continuous analysis of large volumes of data is relatively new.
Connected Digital Energy with multiple connected IIoT devices
will generate “lots of data” that requires further processing,
particularly at the edge, creating semi-autonomous intelligent
“Operational Technology (OT) clusters”.
40
THANK	YOU!
contact	info:
Claudio	Lima,	Ph.D.
IIC	Energy	Co-Chair
hello@blockchain-eng.org

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