Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In this session, Red Hat Technology Evangelist Gordon Haff will share examples from a wide range of industries--including energy, transportation, and retail--of using IoT to create new business opportunities and improve efficiency. We’ll also discuss strategies for protecting data as it flows through a distributed IoT solution from endpoints that are often difficult to reliably secure. This includes practices for using IoT gateways, maintaining secure communications, and determining appropriate policies for different types of data.

1. THE INTERESTING IOT:
DIGITIZING OPERATIONS
GORDON HAFF
Technology Evangelist, Red Hat
@ghaff

2. CONSUMER IoT

3. CONSUMER IoT
X
X
X

4. THREE KEY TRENDS
IoTCONVERGENCE
THE CONSUMERIZATION
OF I.T.
THE DIGITIZATION
OF O.T.

5. BUT SOME COMPLEX CONSUMER IOT INTERACTIONS
5

6. 6

7. THREE FOUR KEY TRENDS
IoTCONVERGENCE
THE CONSUMERIZATION
OF I.T.
THE DIGITIZATION
OF O.T.
CONSUMER
IoT/
MOBILITY
X

8. THE CONSUMERIZATION OF I.T.

9. 9

10. FROM SHADOW IT TO CITIZEN INNOVATION
"IT organizations need to reframe their perspective on "shadow
IT," engage with it and adopt practices that will exploit it as a
delivery mechanism, albeit with some guardrails and clarification
of accountability to mitigate the risks and enhance the value."
Gartner,
Embracing and Creating Value From Shadow IT
January 2017

11. THE WORLD HAS CHANGED
THEN NOW
IT as a supporting cost center Technology driving new revenue
Established industry structures “Software is eating the world”
Ad hoc decision making Data-driven real-time response & analytics
Multi-year product cycles Rapid iterative service refreshes
Focus on individual product success Achieve ecosystem scale

12. DELIVERING THE DIGITAL EXPERIENCE
COMPANIES USING
MOBILITY TOOLS DECREASEDINCREASED
63% 19%
50% 13%
Worker
productivity
Services
revenue
Customer
Satisfaction
scores
New
sales
revenue
63%Paperwork
31%Travel time
Source: Technology Services Industry Association

13. THE DIGITIZATION OF O.T.

14. 14
TRADITIONAL
INDUSTRIES
ARE CONNECTING
OPERATIONS
REQUIRING:

15. 15
IMPLEMENTING AT DIGITAL SPEED

16. A PROGRAMMATIC APPROACH TO SECURITY
16
Source: hackread.com
Is it critical?
How much are you willing to spend?
Updates: How and for how long?
How interact with broader system?
Does it need to be on the network?

17. 17
DIGITIZING OPERATIONS
Meterocomm turned to Red Hat to help build the interoperable communications infrastructure
they need to meet safety requirements and a system that can meet a
99.999% RELIABILITY SLA.

18. CONSIDERATIONS FOR AN
ENTERPRISE IoT ARCHITECTURE
BANDWIDTH AND NETWORK
TRANSPORTS A CONCERN
TRANSMISSION COSTS
PAID BY ENTERPRISE
DATA ANALYSIS AND
RESPONSE IS CRITICAL
COMPLEX NETWORK
COMMUNICATIONS
LARGE AMOUNTS
OF DATA
NEED FOR DATA
SUMMARIZATION

19. THREE TIERS:
OPTIMIZE PLACEMENT OF DATA & FUNCTION
DATACENTER
GATEWAYS
DEVICES
• Business processing
• Reporting
• Long-term data analytics
• Data infrastructure
• Enterprise integration
• Software-defined storage
• Communications/messaging
• Data acquisition
• Communications/messaging
• Data pre-processing
• Real-time data analytics
• Real-time actions/rules
• Software-defined storage
• Security

20. INTELLIGENT GATEWAY ARCHITECTURE
Transforming device data into actionable information

21. 26
HIGH VALUE ASSET TRACKING
RESULTS:
New asset tracking system for high value items (priceless art, important documents, fragile,
temperature, humidity and shock-sensitive items)
TRANSPORTATION
• Decrease in insurance costs
- intelligent routing system chooses lowest risk route; avoids weather
systems and hazardous road conditions
• Increase in customer satisfaction and repeat business
- real-time alerts and monitoring; reports provided for regulatory
compliance
• Revenue growth from new premium service
Implement complex business rules to rout
critical assets based on lowest risk.

22. 24
UTILITY OPTIMIZATION AND AUTOMATION
RESULTS:
Dynamic demand management, predictive maintenance, improved efficiencies, cost
savings.
UTILITIES
High-performance
data messaging
from disparate
thermostats back to
utility.

23. IoT CONVERGENCE

24. THREE TIERS:
OPTIMIZE PLACEMENT OF DATA & FUNCTION
TECHNOLOGICAL CONSTRAINTS
• Enterprises unable to leverage control
data in business intelligence applications
• OT organizations unable to take
advantage of rapid advances in IT
(feature, function, and performance
improvements)
• OT organizations can’t easily adopt new
technologies (mobile, cloud)
• Designing, implementing, and/or
supporting parallel technology stacks is
costly and inefficient
• OT organizations are locked into specific
vendors and held hostage to vendors
product development plans, release cycles
• OT organizations unable to exploit cost
savings that come with standards-based
solutions
FINANCIAL/BUSINESS CONSTRAINTS

25. COMMUNICATION BETWEEN IT AND OT
“I did not want to talk to IT to begin with. But my attitude has
changed. Legacy operations for OT were based on protection and
control and nothing else is going to trump that—but now we need
to move digital data, and that is only happening by partnering with
the IT folks.”
Shawn Lackey
Director of strategy and architecture, Duke Energy

26. LIFECYCLES
WILL
CONVERGE
Credit: Flickr/cc https://www.flickr.com/photos/hankzby/3191838887

27. PROCESSES
WILL
CONVERGE

28. CRITICAL SUCCESS AREAS
M2M COMMUNICATION
PROTOCOLS
DEVICE MIDDLEWARE
APPLICATION
M2M COMMUNICATION
INFRASTRUCTURE
BUSINESS APPLICATION
INTEGRATION
COMPLEX EVENT
PROCESSING (CEP)
1 2 3 5 6
1 2 3 5 6
4 DEVICE MANAGEMENT

29. STRATEGIC RECOMMENDATIONS
Getting started with IT/OT convergence
SET STRATEGIC
DIRECTION AT THE
EXECUTIVE LEVEL
USE IoT AS A
CATALYST FOR
CONVERGENCE
CREATE CROSS-
FUNCTIONAL TEAMS
START WITH A
PILOT PROGRAM

30. THANK YOU
plus.google.com/+RedHat
linkedin.com/company/red-hat
youtube.com/user/RedHatVideos
facebook.com/redhatinc
twitter.com/RedHatNews