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GUIDE

What is IIoT and How it

Works
Learn about the fascinating world of IIoT, its core concepts, its
distinctions from the broader Internet of Things (IoT), and its real-world
applications driving innovation across various sectors.

By Ahmed Tharwat

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In an age where data is hailed as the new currency, industries are undergoing a digital Create a free account and
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unprecedented efficiency and connectivity. At the heart of this transformation lies the
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Industrial Internet of Things (IIoT), which is a vital element of Industry 4.0, a powerful and
dynamic technology that holds the potential to reshape the industrial landscape. This article
delves into the fascinating world of IIoT, unraveling its core concepts, highlighting its
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applications driving innovation across various sectors.

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Figure 1.1 – What is IIoT and How it Works | Industrial 4.0
Things
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The Industrial Internet of Things (IIoT) represents the extension and integration of Internet of
Things technologies within industrial sectors and applications. With a strong focus on
machine-to-machine communication, big data, and machine learning, IIoT empowers
industries and enterprises to enhance their operational efficiency and reliability. It
encompasses various industrial applications, including robotics, medical devices, and
software-defined production processes.

What sets IIoT apart is its unique convergence of information technology (IT) and operational
technology (OT). OT involves networking operational processes and industrial control
systems, encompassing HMIs, supervisory control, SCADA systems, DCSs, and PLCs. This
comprehensive approach ensures that IIoT plays a pivotal role in reshaping industrial
processes and facilitating data-driven decision-making.

What is IoT
IoT is a revolutionary concept encompassing a complex network of physical objects called
“things.” These objects are equipped with sensors, software, and various technologies to
enable Internet connectivity and data exchange with other devices and systems. IoT devices
range from everyday household items to various interconnected tools and gadgets. Presently,
there are more than 15 billion connected IoT devices, illustrating the extensive integration of
this technology into our daily lives.

What is the difference between IoT and

IIoT?
The fundamental distinction between IoT and IIoT lies in their primary objectives: IoT is
primarily designed for consumer applications, enhancing convenience and lifestyle, while IIoT
is focused on elevating safety and efficiency within industrial production environments.
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Figure 4.1 – What is IIoT and How it Works | difference between IoT and IIoT

There are more differences between IoT and IIoT

Aspects IIoT | Industrial Internet of Things IoT | Internet of Things

1. Scale It deals with large-scale networks. It deals with small-scale networks.

2. Connectivity Both wired and wireless. Usually wireless.

3. Data Quantity High to very high. Medium to high.

4. Interoperability CPS integrated interoperations with new and Autonomous – devices usually operate
legacy technologies like ERP, warehousing individually, sometimes with one or two
solutions, etc., and must operate reliably with different devices.
these technologies.

5. Sensor Sophisticated sensors, e.g., pressure sensors, Basic sensors, e.g., motion sensors,
Utilization torque sensors, speed sensors, radio temperature sensors, moisture sensors, etc.
frequency identification (RFID) sensors, etc.

6. Cybersecurity More advanced and robust cybersecurity Generally less sophisticated cybersecurity
protocols. protocols (utility centric).

7. Objective Aimed at automating machinery to ensure Aimed at rendering convenience. Simply

safety, efficiency and sustainability. making the user’s life easy.

What are the Similarities between IIoT and

IOT
IoT and IIoT both share common concepts and technologies of smart equipment connectivity
and cloud computing to establish a system (always online) that collects data to help users
make informed decisions. Some of the few tangible similarities between IoT and IIoT include
the following:

They both necessitate a cloud computing framework.

They both necessitate Machine Learning (ML) and Artificial Intelligence (AI) to ensure
smart decision making.
They both utilize common input/output devices, for instance, sensors, cameras,
microphones etc.
Affordable and high speed internet connection is an essential resource for both IOT and
IIoT.
Both IoT and IIoT systems are designed to scale efficiently, accommodating a growing
number of devices and data volumes without significant challenges.
 Energy efficiency is a shared concern in IoT and IIoT, with a focus on extending the
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Security is a common priority in both IoT and IIoT, with a focus on implementing robust
measures to protect data and devices from unauthorized access and potential threats.
Both IoT and IIoT systems often feature user friendly interfaces, allowing users to
interact with and control connected devices through web or mobile applications.

How does IIoT work

IIoT, or the Industrial Internet of Things, works by connecting smart devices to create systems
that collect, share, and analyze data. Here's how it simplifies:

Connected Devices: Smart devices can sense, communicate, and store information
about themselves.
Data Communication: These devices use networks, both public and private, to transmit
data.
Analytics and Applications: Software processes this data to provide useful insights.
Data Storage: Information is saved for future reference.
People: Humans use this data to make decisions and optimize processes.

These edge devices and intelligent assets transmit information directly to the data
communications infrastructure, where it's converted into actionable information on how a
certain piece of machinery is operating. This information can be used for predictive
maintenance, as well as to optimize business processes.

Figure 5.1 – What is IIoT and How it works | IIoT Infrastructure

IIoT Architecture
To further explain how IIoT works, this is a typical IIoT architecture outlines the organization
of digital systems, enabling network and data connectivity among sensors, IIoT devices, data
storage, and other layers. A comprehensive IIoT architecture should incorporate the following
essential layers:

Edge Layer (Sensors, Actuators, and Controllers): ‍

 Role: The
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It includes a network of sensors, actuators, and controllers located as close to the data
source as possible.‍
Functionality: Sensors gather data, whether from the environment or the objects they
monitor, and convert it into actionable information. Actuators play a vital role in
regulating and influencing processes within the measured environment, adjusting
physical conditions as needed. This layer ensures data collection and initial
processing. ‍
Examples: Devices in this layer can range from wireless sensors, robotic cameras, and
microphones to various meters and monitoring systems.

Network Layer:

Role: The network layer acts as a crucial intermediary, ensuring the seamless flow of
data between the edge and the cloud layers.
Functionality: This layer serves as the gateway that aggregates sensor data and
converts it into digital streams for further processing. It routes this data via the internet,
optimizing it for future analysis in the cloud. It is essential for managing the massive
and continuously changing data streams generated by sensors.
Importance: Gateways are indispensable because they bridge the gap between the data
intensive edge and the cloud, making data processing more manageable and efficient.
Additionally, they may include analytics and security features to enhance data handling.

Cloud Layer:

Role: The cloud layer serves as the central hub for comprehensive data processing and
storage.
Functionality: At this stage, the digitized and aggregated data from the edge and
network layers undergo in depth analysis, using advanced analytics, machine learning,
and data visualization tools. This layer combines data from various sources and
generates valuable insights.
Benefits: Comprehensive processing in the cloud allows you to extract deeper insights
from the data, which might not be immediately available at the edge. It is where you can
make use of advanced analytics and artificial intelligence to gain a deeper
understanding of your operations, enabling data driven decisions.

In summary, the IIoT architecture consists of three vital layers: the Edge Layer for data
collection and initial processing, the Network Layer for data optimization and routing, and the
Cloud Layer for in depth analysis and insights. This structured approach enables efficient
data handling, ranging from quick and immediate responses at the edge to deeper insights
and comprehensive processing in the cloud.
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Figure 6.1 – What is IIoT and How it works | IIoT Architecture

What are the benefits of IIoT

The IIoT brings many advantages to companies, and here are some of the main ones
according to the consulting firm Morgan Stanley:

Boosts Efficiency: IIoT enables automation and continuous monitoring of equipment

and processes. This leads to improved operational efficiency, as real time data allows
for data driven decisions and remote monitoring.
Increases Production: IIoT connected manufacturing processes enhance equipment
usage and performance. By maximizing machine effectiveness and freeing up
employees from repetitive tasks, production capacity can be increased.
Reduces Errors: Automation in industrial operations minimizes human related
inefficiencies, resulting in fewer defects in products. This leads to improved customer
satisfaction and brand reputation.
Predicts Maintenance Needs: IIoT sensors help implement predictive maintenance
strategies by analyzing production data for patterns and early issue detection. This
proactive approach prevents asset failures, reduces costs, and minimizes downtime.
Enhances Worker Safety: IIoT contributes to a safer work environment with sensors
monitoring employee and workplace safety. In case of incidents, integrated safety
systems can trigger alerts and actions, ensuring a swift response and providing insights
for future prevention.
Saves Energy Costs: IIoT allows for the continuous monitoring and optimization of
energy consumption, which can reveal inefficiencies and lead to cost savings. This
extends to regulating factors such as temperature, water usage, humidity, and lighting.
Improves Field Services and Customer Experience: IIoT can enhance field services by
providing real time data and insights. This leads to improved customer experiences as
companies can offer more efficient services and respond to customer needs promptly.
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Figure 7.1 – What is IIoT and How it works | IIoT Benefits

Is IIoT secure
Security is a top concern when it comes to the Industrial Internet of Things. While IIoT offers
numerous advantages to businesses and industries, it also introduces potential security risks
that need to be addressed. The interconnected nature of IIoT systems and the vast amount of
data they generate can be attractive targets for cyber threats.

To ensure the security of IIoT, organizations must implement robust security measures that
encompass various aspects, including:

Data Encryption: Protecting data with strong encryption methods to prevent

unauthorized access.
Access Control: Implementing access policies to ensure that only authorized personnel
can interact with IIoT systems and devices.
Authentication: Verifying the identity of users and devices to prevent unauthorized
access.
Continuous Monitoring: Keeping a watchful eye on the IIoT network to detect and
respond to security incidents in real time.
Secure Device Management: Ensuring that IIoT devices are regularly updated and
patched to address vulnerabilities.‍
Network Segmentation: Isolating critical parts of the network to limit the impact of a
potential breach.‍
Compliance with Industry Standards: Adhering to security best practices and standards
specific to the industry.

While IIoT security is a significant challenge, it's essential for protecting industrial processes,
sensitive data, and critical infrastructure. Organizations must prioritize security measures to
mitigate the risks associated with IIoT and build a secure foundation for their industrial
operations.

Challenges of IIoT
As previously discussed, security is a primary challenge in the realm of Industrial Internet of
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implementing IIoT solutions:

Integration: Integrating IIoT with current systems can be quite complex. The various
data sources and the need to make this data useful present significant challenges. To
overcome this, companies should invest in strong integration platforms that can handle
the complexities of IIoT data. Moreover, ensuring that different devices and platforms
can easily share data (interoperability) is crucial.
Data Management: Managing data effectively is a major challenge in IIoT. IIoT systems
produce large amounts of data that need to be stored, processed, and analyzed
efficiently. To address this, companies should invest in flexible data storage solutions
and advanced analytics tools. It's also essential to have strong data governance rules to
maintain data quality and meet regulatory standards.
Skills Gap: The fast paced growth of IIoT technology has created a shortage of experts
who can develop and run IIoT systems.
Interoperability: Not all IIoT devices and solutions work well together or with your
business apps. When you add new hardware or software, it can set off a chain reaction
of changes needed to make everything work. Interoperability is an issue for IIoT makers,
too. Some IIoT tech relies on open source technology. That's fine, but if there's no
universal standard, different businesses and countries can use their versions. This can
make it hard to use tech from other companies or launch IIoT solutions in new places.
Scalability: As IIoT networks grow, scaling them to accommodate an increasing number
of devices and data volumes can be challenging. Ensuring that the network
infrastructure can handle this growth is crucial.
Bandwidth availability: In the Industrial Internet of Things, a challenge is limited
bandwidth. It's like when too many devices share the same Wi Fi frequency in an
apartment building, causing signal interference. Similarly, IIoT devices in close proximity
can interfere with each other due to limited radio frequency bandwidth. This challenge
underscores the need for efficient bandwidth management in IIoT to avoid signal issues
and ensure smooth operations.

IIoT Applications
Businesses are increasingly recognizing that the advantages of IIoT far outweigh the
associated costs, leading to its adoption across a wide range of industries. Here's a closer
look at how IIoT is making its mark in various sectors:

Logistics: Logistics companies are harnessing the power of IIoT to connect humans
and machines. Drone technology, driven by IIoT, receives information from human
controllers, allowing for data collection and expedited deliveries.
Manufacturing: Manufacturers are integrating IIoT powered devices, sensors, and
machinery into their factories to gain real time insights into production processes. This
enables them to identify areas for improvement and predict maintenance needs.
Agriculture: Agtech companies are employing IIoT to develop fully automated tractors.
These tractors rely on sensor technology to navigate fields, accurately place seeds, and
compile geospatial data for analysis by farmers.
Automotive: The automotive industry is leveraging IIoT to drive the growth of
autonomous vehicles. Self driving cars use sensors to monitor their location and adjust
routes based on real time traffic data.
Construction: Construction businesses are utilizing IIoT's interconnected structure to
monitor equipment and track project progress. This approach ensures adherence to
safety protocols and compliance with industry regulations.
Transportation: Transportation companies deploy IIoT sensors and devices to optimize
routes and equipment utilization. This helps prevent spoilage of perishable goods and
ensures efficient use of containers and vessels.
 Power: IIoT enables the segmentation of power grids into manageable sections,
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systems like lighting and HVAC when facilities are unoccupied.
Wearables: Wearable technology combined with IIoT enhances safety in physically
demanding environments. Wearables can alert managers to safety hazards and monitor
employees' vital signs, ensuring their well being.
Cybersecurity: IIoT's ability to connect devices across a network empowers companies
to monitor endpoints and assets, enhancing cybersecurity. It enables early detection
and mitigation of cyber threats.
Robotics: Pairing robotics with IIoT enables the automation of machine processes,
enhancing productivity and product quality. IIoT can also provide early alerts for
machine maintenance, reducing downtime and costs.

Real life Business Examples of IIoT

Applications
Real life business examples of IIoT applications:

Fanuc: Predictive Analytics Fanuc, a robotics manufacturer, implemented predictive

analytics using IIoT sensors to forecast equipment failures. Their zero downtime
approach earned them the Supplier of the Year Innovation Award.
Airbus: Smart Factory Airbus, a leading aircraft manufacturer, created a "Factory of the
Future" with IIoT sensors in machines and workers' uniforms to enhance safety and
reduce errors. They use smart glasses to simplify complex tasks.
Maersk: Route Optimization Maersk, a global shipping company, employs IIoT to
monitor shipments, minimize fuel consumption, and identify optimal routes, particularly
in unpredictable sea conditions. Advanced software ensures cargo safety. Komatsu:
Remote Monitoring Komatsu, a heavy equipment manufacturer, uses IIOT for remote
monitoring. It connects robots to the internet, allowing centralized control, accident
prevention, productivity enhancement, and safety assurance.
Bosch: Inventory Tracking Bosch optimizes workflows with IIoT, including the Track and
Trace program to locate tools efficiently. Sensors on tools improve inventory
management and boost employee morale.
John Deere: Self Driving Vehicles John Deere, a heavy equipment manufacturer,
employs self driving tractors and high precision GPS systems to enhance safety,
eliminate errors, and increase efficiency in their operations.
North Star BlueScope Steel: Employee Safety North Star BlueScope Steel uses
wearables, including specialized helmets and wristbands, to track employee safety.
These devices provide real time health data and alert managers to potential hazards like
radiation or toxic gases.

Who are IIoT vendors

In the realm of IIoT, a multitude of vendors provide cutting edge platforms and solutions:

ABB Ability: ABB is a prominent player specializing in connectivity, software, and

machine intelligence. Their solutions are tailored to streamline industrial processes and
enhance operational efficiency.
Aveva: Recently acquired by Schneider Electric, Aveva is at the forefront of AI, digital
transformation, and IIoT. They develop robust platforms that cater to both original
equipment manufacturers and end users, empowering them with the capabilities of the
Industrial Internet of Things.
Cisco IOT: Cisco is a recognized leader in the IIoT landscape, offering comprehensive
platforms that cover network connectivity, connectivity management, data control, and
exchange, along with cutting edge edge computing solutions.
 Fanuc: Fanuc is a renowned name in the world of robotics, automation, and advanced
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optimizing industrial processes and productivity.
GE Predix Platform: GE's Predix Platform is a versatile IIoT software solution designed
to facilitate seamless connectivity, optimization, and scalability of digital industrial
applications. It's a comprehensive tool for industries aiming to harness the power of
IIoT.
Plataine: Plataine specializes in harnessing the potential of artificial intelligence to
generate actionable insights within the manufacturing sector. Their IIoT solutions are
focused on enhancing efficiency and decision making in industrial settings.
Siemens Insights Hub: The Siemens Insights Hub offers an industrial IoT platform
enriched with AI and advanced analytics. It's tailored to provide deep insights and
intelligence for optimizing industrial operations, making data driven decisions, and
driving productivity.

Additional notable IIoT vendors include Rockwell Automation, IBM, Microsoft Azure, AWS, and
many more. These companies offer a wide range of solutions and services to cater to the
diverse needs of businesses in the IIoT space.

What is the future of IIoT

The future of the Industrial Internet of Things holds significant promise and is poised for
Table content further transformation:

ntroduction
Advanced Automation: IIoT will continue to drive automation in industrial processes,
What is IIoT reducing the need for manual intervention. Automation will enhance efficiency,
minimize errors, and lead to cost savings across various industries.
What is IoT
5G Connectivity: The rollout of 5G networks will enable faster and more reliable data
What is the difference transmission, allowing IIoT devices to exchange data in real time with low latency. This
etween IoT and IIoT? will further enhance the capabilities of IIoT systems.

How does IIoT work Edge Computing: Edge computing will play a crucial role in IIoT. Processing data closer
to the source (at the edge) will reduce latency and enable real time decision making.
oT Architecture
This will be particularly vital for applications that require immediate responses, such as
What are the benefits of IIoT autonomous vehicles and robotics.

s IIoT secure
AI and Machine Learning Integration: IIoT systems will increasingly incorporate
artificial intelligence (AI) and machine learning (ML) algorithms to make sense of the
hallenges of IIoT vast amount of data generated. Predictive maintenance, anomaly detection, and data

oT Applications
analytics will be significantly improved. Interoperability and Standards: Efforts will
continue to establish universal standards for IIoT devices and platforms to ensure
eal life Business Examples better interoperability. This will simplify integration and data exchange between
f IIoT Applications
different systems.
Who are IIoT vendors Enhanced Security Measures: With the growing adoption of IIoT, the need for robust
security measures will become even more critical. Advanced cybersecurity solutions
What is the future of IIoT
will be developed to protect IIoT devices and networks from cyber threats.
onclusion Sustainability: IIoT will contribute to sustainability efforts by enabling better resource
management and energy efficiency. Smart grids, for example, will optimize electricity
usage, reducing waste.
Industry Specific Applications: IIoT will be increasingly tailored to the unique needs of
specific industries. Healthcare, agriculture, and smart cities will see substantial growth
in IIoT applications, improving patient care, crop management, and urban planning.
Data Privacy and Regulation: As IIoT generates massive amounts of data, concerns
over data privacy will persist. Governments and regulatory bodies will introduce
measures to protect individuals' privacy and ensure responsible data handling.
Consumer Adoption: The impact of IIoT will not be limited to industries. Consumers will
experience the benefits of smart homes and connected devices that enhance
convenience and quality of life.
 Global Expansion: IIoT adoption will expand globally, with developing countries catching
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Conclusion
In conclusion, the Industrial Internet of Things stands at the forefront of a digital revolution
that is reshaping industries and ushering in unprecedented levels of efficiency and
connectivity. It represents the convergence of information technology and operational
technology, making it a critical element of Industry 4.0. Unlike the broader Internet of Things
(IoT), IIoT is primarily focused on industrial applications, with a strong emphasis on safety,
efficiency, and sustainability.

IIoT operates through a well defined architecture, involving edge devices for data collection, a
network layer for data optimization and routing, and a cloud layer for in depth analysis and
insights. It offers a multitude of benefits, including improved efficiency, increased production
capacity, reduced errors, predictive maintenance, enhanced worker safety, energy cost
savings, and improved customer experiences. However, IIoT also comes with its share of
challenges, including security risks, integration complexities, data management, skills gaps,
interoperability issues, scalability concerns, and bandwidth limitations. To fully harness its
potential, organizations must address these challenges through robust security measures
and innovative solutions.

The future of IIoT holds great promise, with advancements in automation, 5G connectivity,
edge computing, AI and machine learning integration, enhanced security, and sustainability
efforts. Industry-specific applications, data privacy regulations, consumer adoption, and
global expansion are also on the horizon.

As the Industrial Internet of Things continues to evolve, it will undoubtedly reshape the
industrial landscape, making processes more efficient, reducing costs, and improving the
overall quality of life for individuals and industries alike. It is a technology that will continue
to drive innovation, disrupt traditional business models, and pave the way for a smarter and
more connected world.

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