Please read this disclaimer before

proceeding:
This document is confidential and intended solely for the educational purpose of
RMK Group of Educational Institutions. If you have received this document through
email in error, please notify the system manager. This document contains proprietary
information and is intended only to the respective group / learning community as
intended. If you are not the addressee you should not disseminate, distribute or copy
through e-mail. Please notify the sender immediately by e-mail if you have received
this document by mistake and delete this document from your system. If you are not
the intended recipient you are notified that disclosing, copying, distributing or taking
any action in reliance on the contents of this information is strictly prohibited.
Industrial Internet of
Things
Department: Electronics and Instrumentation Engineering

Batch/Year: 2020-2024 / III

Created by: Ms. Praveena B, Assistant Professor/EIE/RMKEC

Date: 18.01.2023
1. Contents

S.No.: Course Objectives

1 Contents

2 Course Objectives

3 Pre Requisites

4 Syllabus

5 Course Outcomes

6 CO- PO/PSO Mapping

7 Lecture Plan, Quiz, Links to Videos, E-Book Reference

8 Activity Based learning

9 Lecture Notes

10 Assignments

11 Part A Questions & Answers

12 Part B Questions

13 Supportive Online Certification Courses

14 Real Time Applications in day to day life and to Industry

15 Contents Beyond The Syllabus

16 Assessment Schedule

17 Prescribed Text Books & Reference Books

18 Mini Project Suggestions

2. Course Objectives

S.No.: Course Objectives

1 To understand the fundamentals of Internet of Things

2 To learn about the basics of IOT protocols

To build a small low-cost embedded system using Raspberry

3
Pi.

To apply the concept of Internet of Things in the real-world

4
scenario.

To study various case studies related to Industrial Internet of

5
Things.
3. Pre Requisites

Subject Code Subject Name

Foundation Lab on Internet of

20EC312
Things
4. Syllabus

Unit Contents
INTRODUCTION TO INDUSTRY 4.0 12

Sensing & actuation- Communication - Networking- Globalization

I and Emerging Issues, The Fourth Revolution, LEAN Production
Systems, Smart and Connected Business Perspective, Smart
Factories
IOT DATA LINK LAYER & NETWORK LAYER PROTOCOLS 12

II Protocol Standardization for IoT – Efforts – PHY/MAC Layer (3GPP

MTC, IEEE 802.11, IEEE 802.15), Wireless HART, Z-Wave, Bluetooth
Low Energy, Zigbee Smart Energy - Network Layer-IPv4, IPv6,
6LoWPAN, 6TiSCH, ND, DHCP, ICMP, RPL, CORPL, CARP.
IOT TRANSPORT, SESSION, SERVICE AND SECURITY LAYER
PROTOCOLS 12

III Transport Layer (TCP, MPTCP, UDP, DCCP, SCTP) - (TLS, DTLS) –
Session Layer-HTTP, CoAP, XMPP, AMQP, MQTT. Service Layer -
oneM2M, ETSI M2M, OMA, BBF – Security in IoT Protocols – MAC
802.15.4, 6LoWPAN, RPL, Application Layer.
INDUSTRIAL IoT 12

Industrial Sensing & Actuation- Industrial Internet Systems- IIoT-

IV Introduction, Industrial IoT: Business Model and Reference
Architecture- IIoT Sensing, IIoT Processing, IIoT communication,
IIoT Networking
APPLICATION AND CASE STUDIES 12

Application Domains: Healthcare, Power Plants, Inventory

Management & Quality Control, Plant Safety and Security (Including
V AR and VR safety applications), Facility Management, Oil, chemical
and pharmaceutical industry, Applications of UAVs in Industries,
Real case studies: Milk Processing and Packaging Industries,
Manufacturing Industries, Virtual Reality Lab, Steel Technology Lab.
5. Course Outcomes

CO
Course Outcomes
Number
Understand IoT value chain structure (device, data cloud),
C609.1 application areas and technologies involved.

Understand various protocols in Data Link and Network

C609.2 Layer

Understand various protocols in Transport, Session, Service

C609.3 and Security Layer

Learn about Internet of Things with the help of projects

C609.4 designed for Raspberry Pi.

Explore various Case Studies related to Industrial Internet

C609.5 of Things

Understand IoT sensors and technological challenges faced

C609.6 by IoT devices, with a focus on wireless, energy, power, and
sensing modules.
6. CO- PO/PSO Mapping

P P P P P P P P P P P P PS PS PS
CO O O O O O O O O O O O O O O O
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
C609.
3 2 - - - - - 2 1 2 - 3 3 1 -
1
C609.
3 3 3 2 - - - 2 2 2 - 3 3 3 2
2
C609.
3 3 3 2 - - - 2 2 2 - 3 3 3 2
3
C609.
3 2 - - - - - 2 1 2 - 3 3 2 2
4
C609.
3 2 2 - - - - 2 1 2 - 3 3 2 2
5
C609.
3 2 2 - - - - 2 1 2 - 3 3 2 2
6
7. Lecture Plan

Actual
S. No of Proposed Pertaini Taxono Mode of
Topics Lecture
No.: Period date ng CO my level Delivery
Date
PPT +
Industrial
Online
1 Sensing & 1 C609.4 K2
White
Actuation
Board
PPT +
IIoT – Online
2 2 C609.4 K2
Introduction White
Board
PPT +
IIoT Business Online
3 2 C609.4 K2
Model White
Board
PPT +
IIoT – Reference Online
4 1 C609.4 K2
Architecture White
Board
PPT +
Online
5 IIoT Sensing 2 C609.4 K2
White
Board
PPT +
Online
6 IIoT processing 1 C609.4 K2
White
Board
PPT +
IIoT Online
7 1 C609.4 K2
Communication White
Board
PPT +
Online
8 IIoT Networking 1 C609.4 K2
White
Board
8. Activity based learning

IIoT Sensing:
Hands-on experiments where students build and test different types of
sensors (e.g. temperature, pressure, humidity) and learn how they can
be used in an IIoT system.
Case studies where students analyze data collected by sensors in
different industrial applications (e.g. predictive maintenance, quality
control) and make recommendations for improvement.
Role-playing exercises where students act out different scenarios related
to IIoT sensing (e.g. identifying and reporting sensor failures, adjusting
sensor settings).
IIoT Processing:
Simulations where students use IIoT data processing software (e.g.
Apache Kafka, Apache Storm) to analyze and manage data streams from
different sensors in an IIoT system.
Case studies where students analyze data processing workflows in
different industrial applications (e.g. predictive maintenance, supply
chain management) and make recommendations for improvement.
Hands-on experiments where students build and test different data
processing algorithms (e.g. machine learning models) and learn how
they can be used in an IIoT system.
IIoT Communication:
Role-playing exercises where students act out different scenarios related
to IIoT communication (e.g. troubleshooting communication issues,
setting up secure communication channels).
Hands-on experiments where students build and test different
communication protocols (e.g. MQTT, CoAP) and learn how they can be
used in an IIoT system.
9. Lecture Notes

Industrial Internet System

The digital industrial company, General Electric (GE), coined the term Industrial
Internet.

Industrial Internet is not exactly the same as Industrial Internet of Things (IIoTs),
but they are often used interchangeably.

GE is also a founding member of Industrial Internet Consortium (IIC), which is also a

huge contributor in shaping IIoTs.

According to GE, there are three waves in industrial level

The First Wave or The Industrial Revolution
The Second Wave or The Internet Revolution
The Third Wave or The Industrial Internet

The Industrial Revolution

The Industrial Revolution lasted for around 150 years which began in 1750 and
ended in 1900

It had two stages.

Commercialization and the mass production of steam engines marked the beginning
of the First Stage. It was started in the middle of eighteenth century.

The Second Stage started in 1870 with the invention of internal combustion engines
and electricity

The Second Stage is more powerful

Electricity brings new types of communications
Combustion Engines brings new forms of transportation systems

Drawbacks of Industrial Revolution:

Even though Industrial Revolution brought significant leap in the economy and
society, it had some negative effects
The waste products harmed the environment
Bad working environment
The Internet Revolution
The Internet Revolution started around 1950 and lasted for around 50 years

It was started with a government sponsored experimentation on computer

networks

It became more eminent with the emergence World Wide Web

Computing capacity had also increased

Rapid information exchange over large geographical distance was made possible.

The Industrial Internet

Integration of Internet-based technologies to industries

Currently we are under Third Wave or The Industrial Internet

Third Wave has not reached its peak

According to GE, Industrial Internet can be defined as “the association of the

global industrial system with low-cost sensing, interconnectivity through internet,
high-level computing and analytics”.
It has three key elements

a) Intelligent machines
b) Advanced analytics
c) People at work

Intelligent machines
Different kinds of machines located at different locations can be
interconnected

These machines can be monitored using advanced sensors and actuators using
related software
Advanced analytics:
• The huge data generated from different kinds of machines and sensors, advance
analytic and prediction techniques make possible in shaping a whole new era of
automation and intelligent machines.

People at work

• Through web and mobile interfaces, everybody can connect with one another
regardless of their location.
• A doctor can interact with his patient virtually, a worker can control a machine
from anywhere etc.
• This makes the system more intelligent, maintenance and operations become
easier, safety and the quality of services also enhances at the same time.

APPLICATIONS:
• Commercial Aviation

• Rail Transportation

• Power Production

• Oil and Gas Sectors

• Healthcare

Applications of Industrial internet

Commercial Aviation:
• The Industrial Internet can benefit commercial aviation industries by improving both
airline operations and asset management
• Airline operation
a) Reducing fuel consumption
b) Effective management of crews, flight scheduling, minimizing delays and
cancellations of flight
• Asset Management
a) Proper maintenance of engines and other parts
b) Timely repairing

Rail Transportation:
• Real-time analysis and application of predictive algorithms will help
a) in reducing the maintenance cost
b) in preventing engine breakdown

• Availability of software will help in providing a real-time overview of the entire system
to operators. Therefore,
a) the rail operator can monitor the trains and make optimal decisions
b) optimal train scheduling

Power Production:
• In power industries, outage is a huge problem because locating a broken power line or
equipment is not an easy task

• With the help of industrial internet, everything will be connected to internet. Therefore
a) status updates and performance related data will be easily available
b) analysis of the incoming data will provide new insights relating to potential problems
which may occur in future
c) cost of field inspection before repairing will be reduced

Oil and Gas Sectors:

• Industrial Internet
a) reduces fuel consumption
b) enhances production
i. tracking events inside well, simulation of inside well, improve production
flow
a) reduces costs
i. real-time monitoring and alert system for safety and optimization

• Predictive analysis of the incoming data from different devices helps in understanding
the behavior of the underground reservoir.
Healthcare:
• Industrial Internet enables safe and efficient operations.
a) availability of the information and reputations of doctors helps the patients to choose
the right doctor
b) connectivity of healthcare devices to the internet helps in location each devices and
also know the status of the connected devices and the patients monitor by them
c) availability of healthcare data helps in advance healthcare researches

Advantages of Industrial Internet:

• One percent fuel savings (in 15 years)

a) Commercial Aviation Industries will save $30 billion
b) Gas and Power segment of Power plants will save $66 billion
• One percent reduction in system inefficiency in
a) Healthcare sector will save $63 billion
b) Freight transportation through world rail network will save $27 billion
• One percent reduction in capital expenditure during exploration and development in Oil
and Gas industries will save $90 billion
• The emergence of cloud-based system will replace the isolated systems

Industrial Sensing & Actuation

• IoT deployment in Industry (IIoT)
• Sensor: Primary source of IIoT data, Big analog/digital data
• Intelligence of IoT is developed based on sensor data
• Actuator: Follow control decision

Need of Sensing for Industry

• Higher degree of automation
• Raise Productivity
• Improve Quality
• Better Safety
• Reduced Downtime
Requirements for Industrial Standard:
• Reliable Sensing
• Low cost sensing and actuation
• Perpetual sensor and actuation network connectivity.

Industrial Sensing

1. Conventional Sensing
• Involved in feedback automation of a process in industrial control system
• Based on sensing (feedback), further action is taken as per the application
requirements

2. Contemporary Sensing
• Sensors connected to the Internet
• Can sense
a) Product lifetime
b) Loop efficiency
c) Safety
d) Reliability

Smart Sensor:
Defined by IEEE 1451 standard as “Sensor with small memory and standardized
physical connection to enable communication with the processor and data network”.

Configurations involved in Smart Sensors:

• Multiparameter Sensing Unit
• Analog Detection Circuit
• Digital Signal Conditioning Unit
• Interfacing Unit to bus

A Smart Sensor Node:

• Smart sensors can perform multiple functions
• Multisensing: It can sense multiple parameters (temperature, pressure, light,
humidity etc) at a single sensor node, which may help in the deciding factors in
production unit of an industry.
• Communicate data: Communicating vital information like measured, callibration and
compensation data to the Central control unit.
• A/D or D/A Conversion: The Analog data needs digital conversion to apply several
signal processing methods for having reliable and accurate data.
• Self-Decision Making: It can self-monitor its operation and changes in the ambience
by taking proper decision for required compensation by itself or by alerting human for
required action.
• Reduced Cost: Cost continues to reduce as investment is recovered by reduced
downtime in industries.

Illustrating Sensing in Milk Packaging Unit

Industrial Sensor Calibration:

• It is the method adopted to improve the performance of the sensing system by
readjusting and removing the error in the measured response of the sensor compared
to the actual response
• Industrial grade sensors use highly complex signal processing algorithm and onboard
circuitry to take care of calibration.
• Calibrate in system to be used
• Standard references
• Proper calibration methods
• Re-calibration

Examples of Industrial sensors

1. Navigation industry (Track sensors: GPS)
• Spot significant places
• Tracking real time object
• Analyze traffics
• Scanning at check post
• Predict driver Destination
2. Agriculture Industry (Smart sensors)
• Soil and water sensor, Weather tracking, RFID technology, Optical sensors
• For accurate use of fertilizers and determining crop health; Crop sensors
• Best time to plant crop
• Remote monitoring
• Agbots; To automate agricultural processes.

3. Health Care Industry

• Implantable sensors, MEMS ,biosensors, nano sensors
• Smart pills
a) Pills sends alert message to other members when swallowed
b) Camera pills for imaging
• Smart bed
a) Use sensors that prevent fall of the patient and sends report about the patient’s
movement

4. Retail Industry
• RFID tracking chip
• Tracking location of shipment made possible with GPS and IoT
• Sensors on shopping cart and product to avoid theft

ACTUATION SYSTEM

Electro-hydrostatic Actuation System:

• A Substitute to traditional hydraulic and elecromechanical actuators
• Combined advantage of electric and hydraulic actuators
• High force capability
• High energy efficiency
• Decentralized Actuation

Electro-pneumatic systems
• Precise flow control
• Advanced communication
• Better diagnostics
• Ultra high resolution
• Combine advantage of Electric and Pneumatic actuators
INDUSTRIAL PROCESSES
• Network of objects (“things”) embedded with computation and communication facilities
to achieve industrial jobs by exchanging information among themselves.

Challenges for Industrial Processes in Industry 4.0:

Design Philosophy: IIoT for Industrial Processes

Expected Features of Industrial Processes with Industry 4.0

Futuristic Industrial Plant

Futuristic Industrial Plant: 5C Architecture for Cyber Physical Systems

Industrial Processes Enablers:

Industrial Process 4.0: Operation Efficiency

Benefits:
• Improved resource utilization
• Increased productivity
• Cost reduction

Industrial Process 4.0: Product Innovation

Benefits
• Service-oriented deployment
• Data monetization
• Pay-per-use
Industrial Process 4.0: Enhanced Ecosystem
Benefits
• Connected ecosystem
• Innovative product lines
• Dynamic marketplace
• Pay-per-outcome

Industrial Process 4.0: Autonomous Pull Economy

Benefits
• End-to-end automation facility
• Updated demand information
• Low waste generation
• Better resource optimization

Smart Factory of Future:

Application areas
• Facility management
• Connected factory
• Inventory management
• Production line management
• Process safety and security
• Service quality control
• Supply chain optimization
• Packaging management
Industry 4.0 – Different Sectors
• Smart robotics
• Air-as-a-Service
• Factory of future
• Improved mining
• Intelligent manufacturing
• Smart logistics
• Smart warehousing
• Track & Trace Innovation
Industry 4.0 @ ICP DAS
Caterpillar: IoT + AR
• Smart view using IoT and Augmented Reality (AR)
• Real-time machine status and condition monitoring
• Ease of interaction with machines
a) App-based instructions for novices
b) Custom alerts for parts replacement
• Long term data analytics to predict future failures & budget

Amazon: Smart Warehousing

• Logistics & supply chain management
a) Smart control of supply fleet
b) Logistic status update with future market demand
• Tech-drivers:
a) Warehouse Automation
b) Human-Machine Interaction
• Robot-equipped goods storage & pickup facility in warehouse
• Lower operational cost
• Faster operating time

Boeing: Efficient Manufacturing

• Smart & digital manufacturing facility
a) Helps in assembling of millions of aircraft parts
b) Automation of assembly steps
• Lower assembly delay & response time
• Reduced errors in manufacture & assembly
• Enhanced production capability
• Tech-drivers
a) Smart glasses for fault detection
b) Sensor-equipped assembler tools

Cisco & Fanuc: Smart Factory

• The objective is to minimize downtime in industrial facility
• Tech-driver
a) Sensor-equipped robotic manufacturing facility
b) Cloud-based analytics
• Predictive maintenance & failure forecasting
• The system can place orders for replacing failed parts
• Zero Downtime (ZDT) system by Fanuc increases efficiency
• Connection between different production phases & accordingly refill of warehouse
stocks
Hitachi: Integrated IIoT
• Lumada IoT platform
• AI-powered advanced analytics
• Solution Core: Replicable components for custom services
• Co-creation Services: Co-design facility for customers
• Production acceleration for application needs

John Deere: Precision Agriculture

• On-board GPS for real-time tracking of agricultural equipment
• Telematics technology for forecasting & maintenance
• Bale mobile app for geo-tagged yield mapping & bale monitoring
• Implementing remote control of tractor navigation
• The future goal is to enable autonomous agricultural operations without human
intervention by self-driving tractors

Kaeser Kompressoren: Air-as-a-Service

• Sensor-equipped air compressors
• Ease of predicting the future failures and maintenance cost
• Air-as-a-Service: Users pay per cubic meter of air from company’s owned compressors
• Service models: Selling, Renting, and Air-as-a-Service
• Operation cost reduction as lesser customer services requests are generated

Real-Time Innovations: Smart Grid

• Smart energy management system with Connext DDS
• Integrated apps and devices – scalable, secure & reliable
• Modular design, faster connectivity, high throughput
• Facility for deploying analytics in edge or cloud
• Product suite
a) Professional version: End-to-end solution, scalable & reliable
b) Secure version: Enhanced & secure version
c) Micro version: Specifically for resource constrained systems
d) Cert version: Safety-centric IIoT systems

Komatsu: Improved Mining

• Technology sectors
a) Mining Intelligence: Higher profit by predictive machine performance analysis
b) Proximity Detection: Enables workers to stay safe from hazards & large machines
c) Environmental: Reduced dust, ignition – increased visibility, optimal use of water
• Tech-driver:
a) Internet connected robots
b) Self-driving trucks
c) Wireless sensors
• Systems
a) PreVail remote health monitoring system
b) JoyConnect
Rio Tinto: Futuristic Mining
• Central control facility with visualization & collaboration tools
• Real-time monitoring and optimization of supply chain
• Autonomous haulage systems (AHS): a fleet of autonomous trucks
• Safe & efficient navigation resulting in increased productivity
• Automated drilling system (ADS): Enables remote operator to control drilling
• AutoHaul is the system for autonomous trains to carry iron ore

Stanley Black & Decker: Smart Construction & Engineering

• Innovation Sectors:
a) Engineering: Solutions for product assembly – automotive, computer, home
appliances, telecommunications, solar panels.
b) Pipeline: High quality reliable pipeline for oil & gas industry
c) Infrastructure: Solutions for equipment required in construction & maintenance
• Lightweight vehicles: ECOSMART™ innovative solution which reduces energy
requirement and carbon footprint

Shell: Smart Oil & Gas

• Digital oil field: Sensor-equipped oil & gas machinery, valves and pumps
• Enabling precise operation for shale gas recovery
• Real-time monitoring and optimization facility
• Faster production decisions to reduce slower production rate
• Improved production, reduced downtime & risk, lower costs

North Star BlueScope: Industrial Safety

• Worker death rate due to work-related disease/accident:
• ~1/15 seconds [Source: International Labor Organization]
• Wearable safety gadgets for industrial workers
• Analytics & IIoT: hazardous condition monitoring, work environment safety
a) Enforcing proper safety conditions
b) Interconnected workers

Maersk: Smart Logistics

• IoT and analytics to optimize the route & fuel consumption for containers
• Remote control & maintenance of containers according to its content – dry cargo,
refrigerated cargo, or special cargo
• Facility for users to remotely monitor the condition inside cargo
• End-to-end shipment: Source to destination shipping covering intermodal transport
• Trade finance: Solution to control the flow of goods & optimize pricing
• Other solutions: Supply Chain Optimization & Freight Forwarding
Magna Steyr: Smart Factory
• Digital mapping of entire production timeline
a) Vehicle engineering
b) Production line implementation
• Intelligent production system: Accurate, scalable, reliable & dynamic to changed needs
• Full autonomy of factory: network of humans, machines & resources
• Solutions: Driver assistance system, Alternative energy storage system, Lightweight
design & joining system

Gehring: Connected Manufacturing

• Internet-connected sensor-equipped machinery enables real- time data streaming
• Smart projection of machine functionalities to customers in real-time: precision &
efficiency check
• Cloud-based analytics to reduce production downtime & increase productivity
• Provision for real-time tracking & monitoring of machinery
• Facility for data visualization & additional analytics

Bosch: Track & Trace Innovation

• Solution to ease the searching of the different tools/parts in a factory
• Sensor-equipped tools/parts can be tracked and traced
• Reduction in searching time and risk for using wrong tools
a) Asset/work management
b) Integrated manufacturing
• Future impact: Can help in automated sequencing of assembly operation
• Tools-as-a-Service: New business model for efficient productivity, enhanced safety &
product quality
• The same technology can be applied to many other sectors of the industry
a) – food, logistics, supply chain, pharmacy, etc.

KUKA: Connected Robotics

• Connected robotics system for super-fast manufacturing
• Internetwork between the robotic assemblers and components
• Smart factory with robots connected to private cloud as solution for the clients
• Analytics on collected data to generate better future strategies
Magna Steyr: Smart Factory
• Digital mapping of entire production timeline
a) Vehicle engineering
b) Production line implementation
• Intelligent production system: Accurate, scalable, reliable & dynamic to changed needs
• Full autonomy of factory: network of humans, machines & resources
• Solutions: Driver assistance system, Alternative energy storage system, Lightweight
design & joining system

Gehring: Connected Manufacturing

• Internet-connected sensor-equipped machinery enables real- time data streaming
• Smart projection of machine functionalities to customers in real-time: precision &
efficiency check
• Cloud-based analytics to reduce production downtime & increase productivity
• Provision for real-time tracking & monitoring of machinery
• Facility for data visualization & additional analytics

Bosch: Track & Trace Innovation

• Solution to ease the searching of the different tools/parts in a factory
• Sensor-equipped tools/parts can be tracked and traced
• Reduction in searching time and risk for using wrong tools
a) Asset/work management
b) Integrated manufacturing
• Future impact: Can help in automated sequencing of assembly operation
• Tools-as-a-Service: New business model for efficient productivity, enhanced safety &
product quality
• The same technology can be applied to many other sectors of the industry
a) – food, logistics, supply chain, pharmacy, etc.

KUKA: Connected Robotics

• Connected robotics system for super-fast manufacturing
• Internetwork between the robotic assemblers and components
• Smart factory with robots connected to private cloud as solution for the clients
• Analytics on collected data to generate better future strategies
BUSINESS MODEL
• A business model describes the rationale of how an organization creates, delivers, and
captures value”
• It is the embodiment of the organizational and financial architecture of a business
• Description of how a business intends to operate and earn profits in a specific
marketplace.

Building Blocks of a Business Model:

Value Proposition
• Products or services that create value for a customer segment
• Values may be:
a) Quantitative: Price, product or service performance, post-purchase cost reduction
b) Qualitative: Design, customization, customer experience, brand

Market Segment
• Different groups of customers or end-user organizations that the business enterprise
aims to serve
• There are different types of customer segments:
a) Mass market
b) Niche market
c) Segmented
d) Diversified
e) Multi-sided markets

Value Chain Structure

• The key resources and activities that a business requires to create value proposition
• Resources:
a) Can be Physical, Intellectual, Human, Financial
b) Key resources can be owned or leased by the company or acquired from key partners.
• Activities:
a) Production, Problem solving, Platform/Network
Revenue Generation and Margins
• The revenue that is generated from each customer segment in a business
• Two different types of Revenue Streams -Transaction revenues and Recurring revenues
• Ways to generate revenue – Asset sales, Subscription fees, Usage fee, Leasing/Renting,
Licensing, Brokerage, Advertising
• Two types of pricing – Fixed and Dynamic

Position in Value Network

• Value proposition also depends on the network of suppliers and partners
• Partnerships and alliances created to –
a) Optimize business models
b) Reduce risks
c) Acquire resources

Competitive Strategy
• Strategy of a particular company to gain competitive advantage over its competitors in
the market
• Three generic competing strategies:
a) Cost leadership
b) Differentiation by bringing something unique to customers
c) Focus on a small market segment or a niche rather than the mass market

Need for New Business Models for IoT

Advent of IoT has resulted in the following:

1. Increased business opportunities
2. Efficient processes
3. Enhanced asset utilization
4. Increased productivity
Business challenges in IoT:
5. Diversity of objects
6. Immaturity of innovation
7. Unstructured ecosystems

IoT business models must address these requirements:

8. Extend scope beyond the company level to ecosystem level
9. Support design/visualization of complex value streams within the stakeholder network
10. Explicitly consider the value proposition for all key stakeholders (e.g., users,
customers, and partners)
11. Consider data as an asset within and beyond the actual opportunity
Types of Business Models for IoT:
• Subscription Model
• Outcome-Based Model
• Asset-Sharing Model
• IoT-as-a-Service
• Others:
a) IoT Products as a Proxy to Sell Another Product
b) IoT Products as a Vehicle to Monetize Data

I. Subscription Model:
• Data generated by IoT devices is “consumable, measurable and repeatable”
• It is capable of generating “recurring” revenue
• Using this model:
a) Instead of a one-time charge, customers are offered a regular subscription
b) Here, a fee is charged for periodic usage
Subscription Model: Advantages
• Provides predictable, recurring revenue
• The product can be monetized by providing paid upgrades or by implementing a
“freemium” model.
• Businesses are able to foster active relationships with customers due to repeated post-
subscription interaction
• Businesses are able to learn more about their customers and are able to provide
services specific to their requirements
Subscription Model: Challenges
• Customer management
• Automatic invoicing
• Plan management
• Requirement of skilled labor and organizational structure
• Requirement of regular updates

II. Outcome-Based Model

• Businesses deliver to the customer the outcome/benefits that the product/service
provides – “Pay-per-outcome”
• Customer is relieved from the responsibilities of ownership, and maintenance
• It brings together the businesses and their customers to monetize the solutions
Outcome-Based Model: Advantages:
• Increased profit margin
• Reduced negotiation cycle
• Higher customer satisfaction
• Reduced risks
• Better alignment of the value proposition of the vendor and consumer
Outcome-Based Model: Challenges
• Requirement of new infrastructure, policies and processes
• Price standardization
• Safe and reliable outcome delivery
• Lack of proven business models

III. Asset-Sharing Model

• Businesses virtually consolidate and share their IoT-enabled assets among multiple
customers or with other business entities in exchange of revenue
• Revenue is charged based on time or nature of usage
• Aim is to minimize downtime and maximize utilization of the assets
• Can be used for Smart Energy
Asset-Sharing Model: Advantages
• Increased profit margin
• Reduced price for customers
• Ease of scaling of business
• Reduced wastage of resources
Asset-Sharing Model: Challenges
• Security of products/services
• Mutual arrangements among business entities
• Asset configuration
• Device synchronization and synergies

IV. IoT-as-a-Service
• Businesses provide IoT-enabled products on lease to customers and earn revenue
• Products can be anything – software, hardware, information/data, results obtained from
analysis of data, etc.
• Revenue based on volume and quality
• Generates recurring revenue
• Example: Sensor-as-a-Service
IoT-as-a-Service: Advantages
• Reduced licensing costs
• Increased revenue from planned upgrades
• Better aligned value propositions
• Efficient operations and preventive maintenance by vendors
• Better customer relations
IoT-as-a-Service: Challenges
• Product compatibility
• Maintaining data accuracy
• Security of data
V. Other Models
IoT Products as a Proxy to Sell Another Product
a) IoT products are sold at cost price or at loss to sell other products
b) For example, IoT devices keep track of status of products and perform actions
accordingly
c) Used by manufacturers to sell products which require refills.

IoT Products as a Vehicle to Monetize Data

d) IoT-enabled products collect data from users while providing services
e) This data is sold by businesses to third party businesses to earn revenue
f) As per requirement, data is processed and aggregated
g) Customers must be made aware beforehand about the usage of their data and privacy
policies

Business Oppurtunities in IIoT

Entrepreneurship theory:
h) Asset-driven opportunities
i) Service innovations that aid manufacturing
j) Service-driven opportunities targeted at end users
k) Information infrastructure ownership
Transaction cost theory:
l) Non-ownership contracts
m) Performance contracts

Components of IIoT Business Models

• Value proposition
• Value capturing mechanism
• Value network
• Value communication

IIoT Business Models: Types

IIoT business models can be divided into following categories:
• Cloud-based Business Model
• Service-Oriented Business Model
• Process-Oriented Business Model

I. Cloud-Based Business Model

• Customers do not purchase software, platform or infrastructure
• Instead, they lease the cloud computing resources temporarily
a) Infrastructure-as-a-service
b) Platform-as-a-service
c) Software-as-a-service
Cloud-based BMs comprise manifold offerings
a) Processing power
b) Data storage
c) Virtualization of the operating system online

Infrastructure-as-a-Service (IaaS) model

d) Aim at providing required hardware and software online in the cloud

Platform-as-a-Service (PaaS) model

e) Open toward external parties
f) Provide development-oriented platforms
g) Facilitate the development of applications
h) Facilitate the integration of applications into existing solutions

Software-as-a-Service (SaaS) model

i) Offer online capable and customized applications

Partner network
j) Risk reduction
k) Synergies due to economies of scale
l) Shared usage of resources

Value configuration
m) Development of cloud services and applications
n) Establishment of partner network

Core competencies
o) IT resources
p) Software infrastructure
q) Knowhow

Relationships
r) Community networks
s) Forums

Value proposition
t) Processing power
u) Data storage
v) Virtualization of the operating system
w) Development oriented platforms
x) Integration of applications
y) Applications
Distribution channels
• On demand

Target customers
• Educational institutions
• Startups
• Independent software vendors
• Small and medium-sized enterprises

Cost structure
• Cost reduction
• Initial costs for installation
• Service costs

Revenue model
• Pay-per-use
• Subscription fees
• Advertisement

Service Oriented Business Model

Offers
a) primarily utilization
b) Analysis of data
c) aggregation of data

Example:
• Medical environment

• Offered to a mass market on demand through infrastructures and platforms established

by Cloud-based BMs

• Provides to customers
a) Self-service interface
b) Automated services

• Target customers
a) Mass market

Partner network
b) Community
c) Infrastructure providers
d) Platform developers

Distribution channels
e) Platforms
f) On demand
Value configuration
• Maintenance and further development of
a) Platforms
b) Infrastructures
c) Applications

• Relationships
a) Self-service interface
b) Automated services

Value proposition
c) Utilization of data
d) Analysis of data
e) Aggregation of data

Core competencies
f) Platforms
g) Data analysis methods
h) Data

Cost Structure
i) Initial establishment costs
j) Variable instead of fixed costs

Revenue Model
k) Collected data
l) Direct and indirect monetization of data

Process Oriented Business Model

• Process optimization resulting in
a) Reduced downtimes
b) increased machine availability
• Optimize processes within a company and across company boarders
• Optimize data analyzed by Service-oriented BMs
• Results in reduced downtimes due to the eliminated delivery times

Value configuration
• Master complex production processes
• Various production technologies

Core competencies
• Platforms
• Data
• 3D printers
Value proposition
• Reduced downtimes
• Increased machine availability

Target customers
• Machine and plant engineering industry

Cost structure
• Initial establishment costs

Revenue model
• Licenses
• Higher prices possible

IIoT Business Model: Flow

• Cloud-based BMs aim at providing an infrastructure
• Companies operating a Service-oriented BM employ Cloud- based BMs to gather data
and information.
a) Analyze and sell as a service
• Analyzed and prepared data help companies with a Process- oriented BM to optimize
process flows.

IIoT Business Model: Challenges

• Security and data privacy
a) Physical and virtual worlds combine at a large scale
• Lack of interoperability
• Increase complexity
• Increase cost
• Uncertain return on investments on new technologies
• Immature or untested technologies
• Lack of data governance rules across geographic boundaries
• Shortage of digital talent
• Need for seamless data sharing between machines and other physical systems from
different manufacturers
• Need security frameworks for entire cyber physical stack
a) device-level authentication and application security
b) system-wide
i. Assurance
ii. Resiliency
iii. Incidence response models
IIoT Reference Architecture

• Industrial Internet Reference Architecture (IIRA) is an standard architecture for IIoT

systems.
• Standards-based architecture proposed by the IIC Technology Working Group
• Current Version: IIRA v1.8
• IIRA is broadly applicable in the industrial systems to
• allow interoperability
• map application technologies
• guide technologies
• Safety is the major concern in the IIRA infrastructure, and is to be followed by security.

Key Performance Indicators (KPIs) for Occupational Safety and Health (OSH):
Key performance indicators for OSH is
• a measure of the activities of an organization
• connect/communicate with customer
• provide valuable feedback
• drive towards improvement

• Based on the leading and lagging OSH indicators, KPIs are also categorized into
a) Leading KPI is mainly used to predict the economy. It is
• input-oriented, and
• hard to measure.

b) Lagging KPI is a technical indicator which changes after the economy has begun. It is
• output-oriented, and
• hard to improve
Industrial Internet Consortium (IIC)
• Industrial Internet Consortium (IIC) is a non-profit organization created for
• promotion of open standards
• interoperability for technologies
used in industries and machine-to-machine (M2M) environments.

• Testbeds are an area of major focus and activity of the IIC members.

• In IIC, the innovations and opportunities of the new technologies, new applications,
new processes, new products and new services are
• initiated,
• conceptualized, and
• rigorously tested
• before they are launched in the market.

• Stakeholders are the

• individual, team or organizations having interest concerning to a system
• interest in the viewpoint and system.

• Viewpoints are the collection of ideas which

• describe,
• analyze, and
• solve the set of specific concerns.

IIRA Framework
Architecture frame is the collection of ways which
• identify,
• describe, and
• analyze the ideas of stakeholders
Architecture representation is the collection of outcomes of
• architecture frame, and
• expressed as a view.

Different IIoT architecture implementation patterns are as follows:

• Three-tier architecture pattern
• Gateway-mediated edge connectivity and management architecture pattern
• Layered databus pattern
IIRA: Three-tier architecture pattern

• Edge layer gathers data from the edge nodes. The architecture includes
• breadth of distribution
• governance
• location
• Platform layer receives, process, and forwards control commands from the enterprise
layer to the edge layer.
• Enterprise layer receives data flows from edge layer and platform layer. The Enterprise
layer implements
• domain-specific applications,
• decision support systems, and
• provides interfaces to end-users.
IIRA: Gateway-Mediated Edge Architecture
IIRA: Gateway-Mediated Edge Architecture
The gateway-mediated edge architecture consists of
• a local area network for the IIoT edge system, and
• the gateway connecting the Wide Area Network.

The local area network may use

• hub-and-spoke topology
• mesh topology

The gateway devices act as

• management point for the edge devices locally
• data transfer, processing and analytics
• local connectivity among the devices
• application logic which performs within the local scope.

IIRA: Layered Databus Pattern

• Smart machines are present in the lowest level for
• local control,
• automation.
• System of systems allows
• complex systems,
• monitoring, and
• analytic applications

Layered Databus pattern is applicable in the field of

• control,
• local monitoring, and
• analytics.

The databus communicates between applications and devices.

• It allows interoperable communication between endpoints.
• For communication between machines, another databus is used.
Layered Databus pattern allows
• fast device-to-device integration with minimum response time.
• automatic data and application delivery
• scalable integration of devices
• availability of the system is high, and
• hierarchical subsystem isolation.

IIRA Viewpoints
IIRA viewpoints are described analyzing the use cases developed by Industrial Internet
Consortium (IIC), which are as follows:
• Business viewpoint
• Usage viewpoint
• Functional viewpoint
• Implementation viewpoint

Business viewpoint
Business Viewpoint :
The business viewpoint from the perspective of an IIoT system is related with
• business value
• expected return on investment
• cost of maintenance
• product liability

• Stakeholders play a
• major supportive role in the business
• strongly influence its direction
• drives the conception and development of IIoT systems.
• Vision describes
• future state of the organization
• provides business direction towards which the organization works
• Values indicate
• vision recognized by stakeholders involved in funding
• provide the logic regarding the merit of vision.
• Key objectives are measurable and time-bound. They are expressed as
• high-level technical
• business outcome expected from the system.
• Fundamental capabilities are high-level specifications which are essential to complete business
tasks.
• Key objectives are basis for the identification of fundamental capabilities.
• Capabilities are the ability of the organization to perform any function. They are specified
independently.
• Stakeholders obtain the fundamental capabilities from the objectives, which are necessary
for a system.

Usage Viewpoint:

• Usage viewpoint are related with the

• key capabilities identified in the business viewpoint
• activities that coordinate the different units of work.

• Task is
• basic unit of work
• carried out by a party assuming a role
• Execution of a Task
• Role
• Functional map: describes the functional component of the task maps.
• Implementation map: depends on the execution of the task.

• Role
• set of capacities assumed by an entity or organization
• initiates or participates in the execution of tasks.

• Activity is
• coordination of specific tasks
• required to realize a well-defined usage of a system
• executed repeatedly

• Activity has trigger, workflow, constraints, and effects

• The elements of an activity are
• Trigger: conditions under which the activity is initiated.
• Workflow: sequential, parallel, conditional, iterative organization of tasks.
• Effect: state of the IIoT system after successful completion of an activity.
• Constraints: system characteristics which must be preserved during execution.

Functional Viewpoint
• The control domain represents the set of functions performed by industrial control
systems, which are as follows:
• Sensing: Reading the data from sensor nodes.
• Actuation: Writes data and control signals into an actuator.
• Communication: Connects the sensors, actuators, gateways and other edge
devices.

• The operations domain represents the set of functions responsible for

• Provisioning and deployment: Configure, track, register, and deploy assets online
remotely, securely and at scale.
• Management: Enables management of assets which is focused on the suite of
management commands.
• Prognostics: Acts as a predictive analytics engine of the IIoT systems.
• Monitoring and diagnostics: Responsible for real-time monitoring, and enables
detection and prediction of occurrence of problems.
• Optimization: improves asset reliability and performance, reduces energy
consumption, increases availability, and output in according to the assets used.
• The information domain represents the set of functions responsible for
• assembling data from various domains, where data consists of
a) quality of data processing
b) syntactical transformation
c) semantic transformation
d) data persistence and storage
e) data distribution
• The information domain represents the set of functions responsible for
• assembling data from various domains
• transforming
• persisting
• modelling/analysis of data

• The application domain represents the set of functions which implement application
logic to realize specific business functions
• Logics and Rules: Implements specific functions required for the use case.
• APIs and UI: Enables an application exposes its functions as APIs for other
applications to consume.

• The business domain represents the set of functions which enables end-to-end
operations of the IIoT systems by integrating them with traditional or new type of
business functions which includes
• supporting business processes
• procedural activities.

• The implementation viewpoint relates to the

• technical representation of an IIoT system including interfaces, protocols,
and behaviors
• identification of system characteristics
• general architecture of IIoT-its structure, distribution and the topology of
interconnection of the components
• Implementation map of the activities as recognized from usage viewpoint to
the functional components, and from functional components to
implementation components

IIoT SENSING
Temperature Sensor Interfacing Circuit:
• Monitoring temperature of used devices in industrial applications
• LM 35 temperature sensor generates analog voltage
• The output voltage of LM 35 is linearly proportional to Celsius temperature
• Temperature sensor DS1621 is a digital sensor, which generates 9 bits temperature
data.
• Operating voltage from 2.7 to 5.5 Volt
• User can define thermostatic settings
• The value of resistors R1 and R2 is from 4.7 to 10 KOhm
.

Accelerometer Sensor Interfacing Circuit

• Generates the magnitude and direction of the acceleration
• Accelerometer sensor ADXL335 provides 3 axes (X, Y, and Z) values in analog voltage

Gas Sensor Interfacing Circuit:

• Measures and detects concentration of different gases
• Gas sensor MQ-2 provides the concentration of LPG, propane, and hydrogen in analog
voltage
• A gas sensing system plays a vital role for monitoring the concentration of flammable,
combustible and toxic gases in the environment
• Air quality monitoring and alert systems with gas sensing units may be deployed to
avoid risks of harmful exposure of gases in the environment.

• MOS Gas sensors are also called Chemi-Resistive Gas sensors

• Baseline Resistance: Resistance of the sensor material in air when not exposed to target
gas
• Chemi-resistive gas sensors depend on the thermal energy for its operation which is
supplied with an heater
• A particular temperature at which the sensor gives best response is called Optimum
Temperature.
• Resistance changes when exposed to gas depending on the rise or fall in conductivity of
the sensor material
• In n-type sensors, resistance decreases, and in p-type sensors, resistance increases with
respect to the Baseline resistance when exposed to a reducing gas

Characterisics of Gas Sensor:

• Sensitivity: It is the change in the output signal with respect to unit change in input
(which is the target gas concentration).
• Selectivity: Ability to detect a particular gas in a mixture of different gases.
• Stability: This parameter determines the robustness in the gas sensing property of a gas
sensor in a long time period when exposed to hostile ambience.
• Response time: The time taken by the sensor to stabilize its response while sensing the
target gas to reach some percent (80% or 90%) of the final value
• Reversibility: Whether the sensor resistance can return back to its base resistance value,
if exposure to the target gas is stopped
• Response Percent: of a gas sensor is calculated by computing the percentage
change in the resistance when exposed to target gas with respect to the resistance when
not exposed.

Applications of Gas Sensor:

• Air quality monitoring
• Leakage Detection of Toxic gases
• Manhole & Sewage Treatment
• Automotive Exhaust
• Alcohol Breath Test
Sensors in IIoT Applications:
Temperature sensor
• Monitoring temperature of used devices in industrial applications such as
petrochemical, defense, aerospace, consumer electronics, and automotive
• Used in some special types of application where a specific temperature is to be
maintained, such as fabricate medical drugs and heat liquids.

Magnetostrictive sensor
• Measures and detects time-varying stresses or strains in ferromagnetic materials
• Used for inspection of steel pipes, condition monitoring of machinery, and detection of
vehicle safety

Torque sensor
• Measures rotating torque
• Used to measure the speed of rotation

Pressure sensor
• Used to measure pressure in Industrial and hydraulic systems
• Measures different variables such as speed, water level, and gas/water flow

Vacuum sensor
• Used to measure pressure below than atmospheric pressure
• Used in different industrial applications such as chemical processing, detection, cathode
ray tubes, gas turbine, and helium leak

Acceleration sensor
• Measures rate of change of velocity
• Used to detect the magnitude and direction of the acceleration
• Used in car electronics, ships, marine, and agricultural machines

Speed sensor
• A measure of how fast
• Basically measures speed which is determined by the travelling distance in a given time
• Used in vehicle, diesel engine, engine-powered generator, anti-lock brake, printer,
memory, engine-powered compressor

PIR sensor
• Detects infrared radiations coming from human body in its surrounding area
• Used for automatic door open/close, human detection, lift lobby, common staircase,
and shopping Mall
Sensors in IIoT Applications:
Image sensor
• Used for distance measurement, pattern matching, color checking, structured lighting,
and motion capture
• Used in different applications such as 3D imaging, video/broadcast, space, security,
automotive, biometrics, medical, and machine vision

Ultrasonic sensor
• Mainly uses for object detection, measuring distance, and dynamic body detection
• Applications: Liquid level monitoring of tank, trash level monitoring, manufacturing
process, automobile, and people detection for counting.

IIOT Communciation
Typical industrial communication requirements
• Real-time
• Very low duty-cycle
• Very low latency
• Very low jitter
Industrial Communication majorly thrives on the following technologies:
a) Industrial Ethernet
• Industrial Ethernet protocols for real-time control and automation.
• Used in manufacturing processes dealing with clock synchronization and performance.
b) Fieldbus
• A communication standard for Local Area Network (LAN) of field devices for industrial
automation.
• Used in manufacturing processes dealing with periodic I/O data transfer.
ModBus-TCP
• A standard communication protocol used in industry, developed by Modicon Inc
(Schneider Electric).
• It uses TCP/IP & Ethernet for data transmission between two compatible devices.
• The communicating system includes several devices:
a) Client-Server devices linked to a TCP/IP network
b) Interlinked devices – bridge or router or gateway
c) Serial line sub-network to grant links between client-server

Features of ModBus-TCP:
• A standard date frame is embedded into a TCP frame.
• The protocol defines 2 units in the data frame: PDU (Protocol Data Unit ) and ADU
(Application Data Unit).

• ADU is identified by a header called MBAP.

• It is a connection-oriented protocol following the Client-Server architecture.

• Masters are the clients, whereas slaves are denoted as servers.
• The protocol supports up to 10 active connections/sockets at one time.

EtherCat
• EthernetCAT (Control Automation Technology) was developed by the ETG (EtherCAT
Technology Group).
• It is based on IEC 61158 & IEC 61784 (international standards).
• It follows a master-slave architecture utilizing the standard IEEE 802.3.
• Application areas: time-sensitive scenario (due to high-speed of the system)

Features of EtherCat:
• Master and slave exchange data as PDO (process data objects)/telegram.
• Slaves follow multicast or broadcast communication initiated by the master.
• Every PDO contains a distinct address denoting several slaves.
• EtherCAT telegram = Process data + Header.
• Processing incurs a few nanoseconds delay for the telegrams.
• Each telegram utilizes memory up to 4 GB in size.
• Data exchange provide low duty cycle time of <~100 µs and low jitter for better
synchronization.
• Range of data transmission rate is ~200 Mbps
• Allow transmission range up to 100 m between the individual participants. (Using
optical waveguides: up to 20 km).
• Utilizes CRC checksum for fault recognition (bit errors).
• Network topology – tree, star, line, ring, or hybrid.

EtherNet/IP
• It is based on the standard Internet Protocol suite and IEEE 802.3.
• EtherNet/IP: CIP (Common Industrial Protocol) Over Ethernet.
• CIP: Unified communication architecture for industrial applications.
• CIP is a media independent, connection-based, object oriented procedure
intended for automation applications.
• It is constructed from layers used in DeviceNet and ControlNet.
• IIoT requires improved throughput and extensive approachability via CIP, which is
offered by Ethernet.

Communication Type:
• EtherNet/IP defines two primary types of communications:
• Explicit
a) Provide generic, multi-purpose transmission path between devices.
b) Message transfer is asynchronous.
c) Handles non time-critical information.
• Implicit
a) Provide distinct and special-purpose transmission paths between a master and several
clients.
b) Message transfer is continuous.
c) Handles real-time I/O data.

Features of EtherNet/IP
• Based on active star topology.
• Easy set-up, operation, maintenance, and expansion.
• Handles large amount of information at speed of 10/100 Mbps.
• Maximum data rate up to 1500 bytes per packet.
• Mainly used with PCs, robots, I/O devices, and PLCs (Programmable Logic Controllers).
Profinet
• Profinet (PROcess FIeld NETwork) is the standard for industrial Ethernet developed by
Profibus & Profinet Int.
• The technology is based upon Ethernet/IP.
• Defines the communication channel between controller and distributed devices in the
field.
• Basically used for process control and process measurement.

Communication Channel:
Uses three different communication channels:
• Non-Real Time (NRT) – Used for non time-critical processes (acyclic read/write
operations). Uses standard TCP/IP and UDP/IP to transmit data packets.
• Real Time (RT) – Used for time-sensitive processes (cyclic data transfer and event-
driven procedures). Utilized for optimized and high speed data exchange.
• Isochronous Real Time (IRT) - Used for clock-synchronized communication.
• Suitable for motion control applications. Allows short cycle time (~250 µs).

Time-Sensitive Networking (TSN)

• It is an extension of Ethernet based on set of IEEE 802.1Q (virtual LAN) and 802.3
technology.
• It was developed to enable deterministic communication (predictive) for industries
on standard Ethernet.
• This protocol is time-aware and distributes data over the bandwidth according to a
schedule.
• It is centralized and minimizes jitter using time scheduling for real-time applications.

Features of TSN:
• It supports cyclic data transfer.
• Provides pre-emption for packets with high priority.
• Network topologies: ring, chain, star, and hybrid topologies.
• Data rate is 100Mbit and 1Gbit for industrial applications.
• TSN offers IT/OT network convergence.
• The network and operation cost is minimized due to the convergence.

Modbus-RTU (Remote Terminal Unit)

• It is a serial protocol (RS-232/485) that follows the Master and Slave architecture.
• It follows a request/response model.
• It is used for transmission of data signal from control/ instrumentation devices to the
control unit.
• It is a messaging protocol intended for application layer.
Features of Modbus-RTU
• The protocol defines 2 units in the data frame - PDU (Protocol Data Unit) and ADU
(Application Data Unit).

• The client initiates the MODBUS transaction with a request.

• The format of a message request contains the address of the slave, the command
(read/write register), the data, and error check.

Profibus (Process field bus)

• It is based on the standard IEC 61158.
• It was first started in Germany in late 1980s and then used by Siemens.
• It is a field-bus technology that supports several protocols.
• It supports cyclic as well as acyclic data transmission, isochronous messaging, and
alarm-handling.
There are 3 variants:
• Profibus FMS (Fieldbus Message Specification)
a) Handles communication between PCs and Programmable Logic Controllers.
• Profibus DP (Decentralized Peripherals)
a) The speed varies from 9.6Kbps to 12Mbps.
b) It uses RS485 balanced transmission.
c) It supports 32 devices at a time (up to 1900 m, up to 10 Km with 4 repeaters).
• Profibus PA (Process Automation)
a) The speed is fixed at 31.2Kbps.
b) Uses Manchester Bus Power (MBP) for transmission (suits hazardous
environment).
Features of Profibus:
• It defines 2 layers:
a) Data link - accomplished over a FDL (Field bus Data Link).
b) Physical
• It uses bus topology where, the bus or central line is underwired all through the
system.
• Buses using MBP supports transmission range up to 1900 meters and can support
branches.
• MBP supports data as well as power transmission.
Interbus
• It was developed by Phoenix Contact in 1987.
• It is based upon European Standard, EN 50254 as well as IEC 61158.
• It supports serial communication among control systems (PCs, PLCs) and spatially
arranged I/O modules which connects to several sensors & actuators.
• Application areas: sensing-actuating application, machine & system production, and
process engineering.

Features of Interbus:
• Network topology: Active ring (Supports maximum 512 subscribers, and the last
subscriber closes the ring.)
• Total bus length is 13 km. Length between two remote bus devices is 400m.
• Supports master/slave architecture, fixed telegram length, deterministic
communication.
• Master & Slave forms a large and distributed shift register ring with master the
starting-ending point, while slave as a part of it.
• Transmission rate: 500 kbps

CC-Link (Control and Communication)

• It is an open industrial network established by Mitsubishi Electric Corporation in 1997.
• It is based upon the standards EN 954 as well as IEC 61508 in the safety area
(compatible to ISO 15693 & 14443).
• It enables devices from several manufacturers to communicate.
• Application areas: facilities management, manufacturing & production industries,
process control & automation.

Variants of CC-Link:

Features of CC-Link:
• Allows variable communication speed of 2.5Mbps - 1Gbps.
• Maximum transmission distance up to 100 meters (Fieldbus) while 550 meters
(Control).
• Operating frequency: 13.56 MHz (licenses global usage).
• Data transmission utilizes both duplex & single lines.
• Facilitates a deterministic communication.
DeviceNet
• It is based up on the standard CAN (Controller Area Network) protocol.
• CAN standard is a serial protocol defining the communication of data link layer.
• It links industrial sensors & actuators with high-end devices (Programmable Logic
Controllers).
• Application areas: safety devices, data exchange, and large I/O networks.

Features of DeviceNet
• Data in CAN is conveyed via data frame: Identifier field (11 bit) and Data field (8 data
bytes).
• Also has a remote frame (RTR) that only contains the identifier.
• CAN uses the CSMA/NBA channel access scheme (physical layer).
• It defines different sorts of telegrams (frames), error detecting scheme, and data validation.
• It uses linear network topology that permits the signal (shielded cable) and the power
wiring (twisted-pair) in the same cable.

Communication Infrastructure:
• In IIoT and Industry 4.0 IoT deployments, the connectivity infrastructure can be classified
as follows:
Wired Connectivity:
• DSL
• Modem
• PSTN
Wireless Connectivity:
• IEC-PAS 62601/WIA-PA
• Satellite Connectivity
• ISA 100
• LPWAN

DSL
• DSL stands for “Digital Subscriber Line”.
• Aims at bringing high data rate to households and industries using the common
telecommunication line.
• A DSL line can carry both data and voice signals.
• DSL may be categorized as Asymmetric DSL(ADSL) and Symmetric DSL(SDSL).
• ADSL supports a higher download speed compared to the upload speed.
• SDSL supports equal speed for both upload and download.

FEATURES OF DSL:
• Supports simultaneous connection for voice and data communication.
• Basic DSL supports data rate between 1.544 Mbps and 8.448 Mbps for download service.
• Data is transmitted in its digital format, without any conversion to analog format.
• This digital transmission allows wide range of bandwidth for communication.
• The speed of the service decreases with the increasing distance of the user from the central
office of the service provider.
MODEM
• MODEM is a short form of Modulator-Demodulator.
• A network hardware device to perform the modulation and demodulation of carrier
signals with encoded data.
• Data is modulated into analog form at the transmitting side MODEM.
• The received analog data by the MODEM is transformed into digital form, called
demodulation.

Types of MODEM:
On the basis of directional capacity:
• Simplex: It offers data transmission in only one direction, from digital
device to network or vice-versa.
• Half duplex: It offers bi-directional data transmission but one at a time.
• Duplex: Data transmission can take place in both directions,
simultaneously
On the basis of transmission mode:
• Synchronous Mode: In this mode a continuous stream of bits of data can
be handled but requires an external clock pulse.
• Asynchronous Mode: In this mode data bytes with start and stop bits can
be handled without any external clock signal.

PSTN
• PSTN stands for “Public Switched Telephone Network”.
• It is considered as an aggregation of all the circuit switched networks across the world,
used for public telecommunication.
• PSTN networks are also called POTS, Plain Old Telephone Systems.
• These network run on a regional, local, national and international scale using fiber optic
cables, telephone connection lines, cellular communications or microwave transmission
links.

IEC/PAS 62601: WIA-PA

• WIA-PA stands for “Wireless Networks for Industrial Automation- Process Automation”,
is a wireless communication technology, primarily focused on Industrial IoT.
• It is a variation of IEEE 802.15 and IEC.

Advantages:
• It supports Adaptive Frequency Hopping (AFH).
• Aggregation of data packets is done.
• Variable routing methodologies and modes of application are available.
Satellite Communication Technology
• Satellite communication handles large number of devices providing long range data
transmission with global coverage.
Advantages:
• Long range communication with global coverage.
• Cost of transmission is independent of the geographical coverage region.
Limitations:
• Launching of satellite in space comes at a higher cost.
• Propagation delay is more compared to other terrestrial methods.
• Difficulty in repairs in case of any damage.

3GPP

Factories of the future:

• Realization of heavy industries
a) Oil refineries
b) Mining
c) Manufacturing
d) Warehouses
• Systems in Interest
a) Motion Control
b) Robotics
c) Massive wireless sensor networks
Satellite Communication Technology
• Satellite communication handles large number of devices providing long range data
transmission with global coverage.
Advantages:
• Long range communication with global coverage.
• Cost of transmission is independent of the geographical coverage region.
Limitations:
• Launching of satellite in space comes at a higher cost.
• Propagation delay is more compared to other terrestrial methods.
• Difficulty in repairs in case of any damage.

3GPP

Factories of the future:

• Realization of heavy industries
a) Oil refineries
b) Mining
c) Manufacturing
d) Warehouses
• Systems in Interest
a) Motion Control
b) Robotics
c) Massive wireless sensor networks
5G

• 5G new radio (NR)

a) Low band (<1 GHz)
b) Middle band (1-6 GHz)
c) High band (>24 GHz) millimeter wave
• Smallcell deployments
a) Femtocell
b) Picocell
c) Integrated WiFi
• Device-to-Device communication

5G-NR
• New air-interface proposed by 3GPP
• Aligned with ITU service categories
a) Enhanced mobile broadband (eMBB)
b) Massive machine-type communication (mMTC)
c) Ultra reliable low latency communication (uRLLC)
• Design objectives
a) Backward compatibility
b) Enabling versatile connections

Smallcell Deployment
• Objectives
a) Alleviating burden on backhaul
b) Improving energy efficiency
c) Decreasing dead zones

• Operating frequency
a) Licensed spectrum
b) License-exempted spectrum

Device-to-Device Communication
Objectives
• Achieving low latency
• Increasing throughput
• Eliminating load core network
Operating frequency
• Inband deployment: Overlay, Underlay
• Outband deployment: Controlled, Autonomous
IIoT Process Control
• Different types of electro-mechanical instruments and the associated systems used in
industries to control various industrial units or processes
• Comprise of four major components:
a) Process Variables - Values of process parameters measured using devices such as
sensors
b) Set Points - Standard values of the process parameters for controlled operation of
the process
• Controllers – For taking action decisions based on comparison of process variables
with set points
• Manipulating Variables – Process variables modified based on controller decisions to
manipulate the process.

• Fundamental element of industrial control systems for automatic control of industrial

process variables
Two types:
• Open Loop Control – Control decision independent of process variable
• Closed Loop / Feedback Control – Control decision depends on the measured value of
process variable

Types of Industrial Control Systems:

a) Programmable Logic Controllers (PLCs)
b) Distributed Control Systems (DCS)
c) Supervisory control and Data Acquisition (SCADA)

Programmable Logic Controllers (PLCs)

• An industrial control system based on programming logic capable of –

a) Monitoring the industrial processes

b) Taking control actions based on some predefined computer program

• Comprises of a processor unit, memory unit, power supply and

communication modules

• Used in assembly lines and robotic manufacturing devices

Distributed Control Systems (DCS)
• Specially designed control systems used to control highly distributed plants having
huge number of control loops
• Improved reliability due to distributed control
Main components are –
a) Central supervisory controller
b) Distributed controllers
c) Field devices such as sensors and actuators
d) High-speed communication network

Supervisory control and Data Acquisition (SCADA)

Industrial process automation system used in automatic traffic management, water
distribution, electric power grids, etc
Main components are:
• Sensors and Control Relays
• Remote Telemetry Units (RTUs)
• SCADA master units
• Human-Machine Interface (HMI)
• Communication Infrastructures
Link to Video Lectures:
1. https://nptel.ac.in/courses/106105195
10. Assignments

Design an IIoT system for the manufacturing plant that

addresses the above requirements. Your design should
include the following:
• A description of the sensors you would use and how they
would be deployed in the plant.
• A description of the data processing and analysis methods
you would use, including any machine learning algorithms.
• A description of the communication protocols you would use
to transmit the data from the sensors to the processing and
analysis system.
• A description of the networking infrastructure you would use
to ensure real-time data transmission and processing.
• A description of the security measures you would implement
to protect the system from cyber attacks and ensure
compliance with relevant standards.
11. Part A

Course
Q. K
Questions Outcom
No.: Level
es

What is IIoT, and what are some of its key benefits?

Answer 1: IIoT stands for Industrial Internet of Things,

which refers to the use of connected sensors, devices,
1 and machines to collect and analyze data in industrial K2 CO4
settings. Some key benefits of IIoT include increased
efficiency and productivity, improved quality control,
predictive maintenance, and reduced downtime and
costs.
What are some of the challenges associated with
implementing an IIoT system, and how can they be
addressed?

Answer 2: Some challenges of implementing an IIoT

2 system include data security and privacy concerns, K2 CO4
integration with existing systems, and ensuring reliable
communication and data processing. These challenges
can be addressed by implementing security protocols,
using standard communication protocols, and selecting
a scalable and flexible IIoT architecture.
What are some common types of sensors used in IIoT
systems, and how are they deployed in industrial
settings?

Answer 3: Common types of sensors used in IIoT

3 systems include temperature sensors, pressure sensors, K2 CO4
and vibration sensors. These sensors can be deployed in
industrial settings in various ways, such as using
wireless sensor networks or attaching sensors directly to
machines and equipment.
Course
Q. K
Questions Outcom
No.: Level
es
What are some data processing and analysis methods
used in IIoT systems, and what are some of their
applications?

Answer: Some data processing and analysis methods

4 used in IIoT systems include machine learning K2 CO4
algorithms, data visualization tools, and statistical
analysis techniques. These methods can be used for
applications such as predictive maintenance, supply
chain optimization, and quality control.
What are some common communication protocols used
in IIoT systems, and what are their advantages and
disadvantages?

5 Answer: Common communication protocols used in IIoT K2 CO4

systems include MQTT, CoAP, and HTTP. Each protocol
has its own advantages and disadvantages, such as
MQTT's low bandwidth requirements and CoAP's low
overhead.
What is edge computing, and how is it used in IIoT
systems?

Answer: Edge computing refers to the use of computing

6 resources at or near the source of data, rather than K2 CO4
relying on cloud-based processing. In IIoT systems,
edge computing can be used to process and analyze
data in real-time, reducing latency and increasing
efficiency.
What is fog computing, and how is it used in IIoT
systems?

Answer: Fog computing refers to the use of distributed

7 computing resources between the cloud and the edge, K2 CO4
to improve data processing and analysis in IIoT
systems. It can be used to optimize communication
bandwidth and reduce latency, as well as to enhance
security and privacy.
Course
Q. K
Questions Outcom
No.: Level
es
What are some security measures that can be
implemented in IIoT systems to protect against cyber
attacks?

8 Answer: Some security measures that can be K2 CO4

implemented in IIoT systems include access control,
encryption, firewalls, and intrusion detection systems.
Regular software updates and vulnerability assessments
can also help to prevent security breaches.
What is the role of IIoT in smart factories, and how can
it be used to improve production processes?

Answer: IIoT can play a key role in smart factories by

9 providing real-time data on machine performance, K2 CO4
energy usage, and quality control. This data can be
used to optimize production processes, reduce
downtime, and improve overall efficiency.
What is the difference between IIoT and IoT, and how
does IIoT benefit industrial settings specifically?

Answer: IoT (Internet of Things) refers to the use of

connected devices and sensors in various settings, while
10 IIoT (Industrial Internet of Things) specifically refers to K2 CO4
the use of such technology in industrial settings. IIoT
benefits industrial settings by improving efficiency,
reducing downtime, and enabling predictive
maintenance and quality control.
How can IIoT help with supply chain optimization, and
what are some examples of this in practice?

Answer: IIoT can help with supply chain optimization by

providing real-time data on inventory levels,
11 transportation status, and other factors that affect the K2 CO4
supply chain. For example, a company might use
sensors to track the temperature and humidity of goods
during transport, or use predictive analytics to optimize
inventory levels based on demand forecasts.
12. Part B

Course
Q. K
Questions Outcom
No.: Level
es
What are the key components of an IIoT system, and
how do they work together to enable industrial
1 K2 CO3
automation and optimization? Discuss with the help of a
diagram.
What are the main challenges associated with
implementing IIoT systems in industrial settings, and
2 K2 CO3
how can these be addressed? Discuss with the help of
relevant examples.
How can IIoT be used to optimize energy usage in
3 industrial settings, and what are some practical K2 CO3
examples of this in practice?

Discuss the role of big data analytics in IIoT systems,

4 and how it can be used to improve efficiency and reduce K2 CO3
downtime in industrial settings.

How can IIoT be used to enable predictive maintenance

5 in industrial settings, and what are some best practices K2 CO3
for implementing such systems?

What are some of the security risks associated with IIoT

6 systems, and how can these be mitigated? Discuss with K2 CO3
the help of relevant examples.

Discuss the benefits of using edge computing in IIoT

7 systems, and how it can improve efficiency and reduce K2 CO3
latency in industrial settings.

What are some of the key trends shaping the future of

8 IIoT, and how are these likely to impact industrial K2 CO3
settings in the coming years?

How can IIoT be used to improve quality control in

9 industrial settings, and what are some best practices for K2 CO3
implementing such systems?
Compare and contrast the reference architectures for
IIoT and IoT systems, and discuss how they differ in
10 K2 CO3
terms of the components, protocols, and standards
used.
13.Supportive Online Certification Courses

Online Source: NPTEL

Course Name: Introduction to Industry 4.0 and
Industrial Internet of Things
Instructor: Prof. Sudip Misra
Duration: 12 Weeks
Link:
https://onlinecourses.nptel.ac.in/noc20_cs69/preview
14. Real Time Applications in day to day life and
to Industry
Smart Traffic Control Signal System.
Smart Elevator Control System.
Fire Detection and Alarm System.
Automatic Machine Handling System.
Automatic Vehicle Washer System
Automated Guided Vehicle System.
In the Roller Coasters Machine.
Automation System for Well Drainage System.
Luggage Handling System. For example, at the Airport.
Pressure Controller in Multi-Motor Pump Applications.
.
15. Contents Beyond The Syllabus

APPLICATION LAYER PROTOCOLS

Application layer protocols define how application processes (clients and

servers), running on different end systems, pass messages to each other. In
particular, an application layer is an abstract layer that handles the sharing
protocol of the TCP/IP and OSI model.

The purpose of application layer protocols is that users can send data,
access data, and use networks. The application layer also makes
communication easier and sometimes allows users to use software
programs.

What is the Application Layer?

The application layer is the topmost layer of the OSI and TCP/IP models.
The application layer in the TCP/IP model is created by combining the top
three layers: the application layer, the presentation layer, and the session
layer.

An application layer is an abstraction layer that specifies the shared

communications protocols and interface methods that host in network use.
It is the layer closest to the end user, implying that both the application
layer and the end user can interact with the software application directly.
Application Layer Protocols

The application layer protocols used to make communication between

sender and receiver faster, more efficient, reliable, and secure. These
protocols will be discussed further below.

SMTP

TELNET

FTP

MIME

POP

HTTP

DNS
Simple Mail Transfer Protocol(SMTP)

One of the most popular application layer protocols for network services is
electronic mail (e-mail). The TCP/IP protocol that supports electronic mail on the
Internet is called Simple Mail Transfer Protocol (SMTP).

SMTP transfers messages from senders' mail servers to the recipients' mail servers
using TCP connections. In SMTP, users are based on e-mail addresses. SMTP
provides services for mail exchange between users on the same or different
computers.

Following the client/server model:

SMTP has two sides: a client-side, which executes on a sender's mail server, and a
server-side, which executes on the recipient's mail server.

Both the client and server sides of SMTP run on every mail server.

When a mail server sends mail (to other mail servers), it acts as an SMTP client.

When a mail server receives mail (from other mail servers), it acts as an SMTP
server.

Terminal Network(TELNET)

TELNET is an application layer protocol in which a client-server application allows a

user to log onto a remote machine and lets the user access any application program
on a remote computer. TELNET uses the NVT (Network Virtual Terminal) system to
encode characters on the local system.

On the server (remote) machine, NVT decodes the characters to a form acceptable
to the remote machine. TELNET is a protocol that provides a general, bi-directional,
eight-bit byte-oriented communications facility. Many application protocols are built
upon the TELNET protocol. Telnet services are used on PORT 23.
File Transfer Protocol(FTP)

FTP is the standard mechanism provided by TCP/IP for copying a file from one host
to another. FTP differs from other client-server applications because it establishes 2
connections between hosts. Two connections are Data Connection and Control
Connection.

Data Connection uses PORT 20, and control connection uses PORT 21. FTP is built
on a client-server architecture and uses separate control and data connections
between the client and the server. One connection is used for data transfer, the other
for control information (commands and responses). The FTP is data reliably and
efficiently.

Multipurpose Internet Mail Extensions (MIME)

The Multipurpose Internet Mail Extensions (MIME) is an extension of SMTP that

allows the transfer of multimedia messages. If binary data is included in a message,
MIME headers are used to inform the receiving mail agent that is as follows:

• Content-Transfer-Encoding: The header alerts the receiving user agent that the
message body has been ASCII encoded and the type of encoding used.

• Content-Type: The header informs the receiving mail agent about the type of data
in the message.

Post Office Protocol(POP)

POP(Post Office Protocol) is also called the POP3 protocol. This is a protocol used by
a mail server in conjunction with SMTP to receive and holds mail for hosts.POP3 mail
server receives e-mails and filters them into the appropriate user folders.

When a user connects to the mail server to retrieve his mail, the messages are
downloaded from the mail server to the user's hard disk.
16. Assessment Schedule
17. Prescribed Text Books & Reference Books

TEXT BOOKS:
1. Arshdeep Bahga, Vijay Madisetti, ―Internet of Things – A hands-on
approach‖, Universities Press, 2015
2. Dieter Uckelmann, Mark Harrison, Michahelles, Florian (Eds),
―Architecting the Internet of Things‖, Springer, 2011.
3. Olivier Hersent, David Boswarthick, Omar Elloumi, ―The Internet of
Things – Key applications and Protocols‖, Wiley, 2012
REFERENCES:
1. Honbo Zhou, ―The Internet of Things in the Cloud: A Middleware
Perspective‖, CRC Press, 2012.
2. Jan Ho¨ ller, Vlasios Tsiatsis , Catherine Mulligan, Stamatis ,
Karnouskos, Stefan Avesand. David Boyle, "From Machine-to-
Machine to the Internet of Things - Introduction to a New Age of
Intelligence", Elsevier, 2014.
3. “Industry 4.0: The Industrial Internet of Things”, by Alasdair
Gilchrist (Apress)
4. “Industrial Internet of Things: Cyber manufacturing Systems” by
Sabina Jeschke, Christian Brecher, Houbing Song, Danda B. Rawat
(Springer)
5. Peter Waher, “Learning Internet of Things”, PACKT publishing,
BIRMINGHAM – MUMBAI.
6. NPTEL Video Lecture Notes on “Introduction to Industry 4.0 and
Industrial Internet of Things” by Prof. Sudip Misra, IIT Kharagpur.
https://nptel.ac.in/courses/106105195
18. Mini Project Suggestions

https://www.emqx.com/en/blog/how-to-use-mqtt-in-python
Thank you

Disclaimer:

This document is confidential and intended solely for the educational purpose of RMK Group of Educational
Institutions. If you have received this document through email in error, please notify the system manager. This
document contains proprietary information and is intended only to the respective group / learning community as
intended. If you are not the addressee you should not disseminate, distribute or copy through e-mail. Please notify
the sender immediately by e-mail if you have received this document by mistake and delete this document from
your system. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking
any action in reliance on the contents of this information is strictly prohibited.