1. TWOJA CYFROWA PRZYSZŁOŚĆ. JUŻ DZISIAJ. Christoph F. Strnadl CTO Central & Eastern Europe 11 May 2016

2. INTERNET OF THINGS CONCEPTS, CHALLENGES AND STRATEGIES v1.00 Christoph F. Strnadl CTO Central & Eastern Europe christoph.strnadl@softwareag.com Warsaw | 11 May 2016

3. INDUSTRY 4.0 & IOT (INTERNET OF THINGS) DEFINITION 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 3 «IoT» WORLD any thing any where any time connectivity MODERN IT clients, servers, databases user–computer end-to-end digital clean environment  productivity  IT: “information” technology PRODUCTION IT mechanical components electronical components rough environment  automation  AT/OT – automation/operational technology (massive) digital technology everywhere everything connected distributed algorithms INDUSTRY 4.0 | INDUSTRIAL INTERNET IoT – INTERNET OF THINGS real-time availability of data decision making based on real-time & historic data dynamic self- organized intelligent production system self adapting „smart“ everything cyber-physical systems people data communication things systems

4. IOT CHALLENGES (1) #1 PROBLEM: INTEGRATION 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 4 FEW THINGS / DEVICES MANY THINGS / DEVICES MANY DIFFERENT THINGS / DEVICES REQUIREMENTSAPPROACH low latency messaging real-time decision making heterogeneous integration SITUATION (database) data “normal” program low latency messaging real-time decision making (simple) Big Data (statistical) store & analyze R event bus streaming analytics | CEP integration bus PMML

5. OT – Op‘l Technology AT – Automation Technology „Classic“ IT IOT CHALLENGES (2) #2 PROBLEM: BRIDGING IT/OT GAP IS NON-TRIVIAL 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 5 Source: Securely Making “Things” Right. IEEE Computer, Sept. 2015, 84. GENERIC PROTOCOLS DOMAIN SPECIFIC PROTOCOLS «IOT APPLICATION» IOT USERS

6. IOT IMPLEMENTATION (1) PLATFORM APPROACH 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 6 OT IT INFORMATION MODEL ERP PARTNER OT IT INFORMATION MODEL ERP PARTNER OT IT INFORMATION MODEL ERP OT IT INFORMATION MODEL ERP THING FOCUSEDCOMPLEMENTARY TO NON-IOTAS COMPREHENSIVE AS POSSIBLE IoT PLATFORM software product application inde- pendent functionalities to build Industry 4.0 / IoT applications

7. INDUSTRY 4.0 (1) EVENT ANALYSIS & PREDICTION 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 7 SOURCESMESSAGINGANALYSISPREDICTIONACTION TORSION ROD VIDEO TEMPERATURE SENSORS SURFACE TESTS OTHER ANALYSIS ULTRASOUND DIAMETER MEASUREMENT LASER wM UNIVERSAL MESSAGING APAMA (CEP engine) TERRACOTTA SERVER ARRAY (in-memory data store) (slow) BIG DATA PRESTO rules INSIGHT interactive dashboards Web or Client deployment ACTION automated actions from events application integration device support native notification architecture wM ESB native Apama PMML PMML Engine EPL Engine DESIGN TIME RUN TIME DATA SCIENTIST PMML MASTER DATA REFERENCE DATA

8. USE CASE (2) MONDI AG: SAP – MES 1 INTEGRATION 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 8 IT OT INFORMATION MODEL SOLUTION CHARACTERISTICS Front Line Cost Reduction automation Customer Self Service Production Efficiency Increase increased speed stock reduction automation Competitive Advantages cost differentiation customer service (e.g. thru real time Order Tracking) faster acquisition (M&A) integration BENEFITS REQUIREMENTS Automation of „Order 2 Ship“ process for Tier 1 customers On-line Orders On-line Customer Service Integration with Back-End Systems Inventory System Billing System CANONICAL DATA MODELPROPRIETORY DATA MODEL MODEL TRANSFORMATION Order2Ship Portal 1) Mill Execution System

9. SAG IOT SOLUTION FRAMEWORK (1) «IOT SERVICES» ON SAG DIGITAL BUSINESS PLATFORM 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 9 Partner Networks & Ecosystems Business Systems native SAG capability addressed by partner Enterprise IoT Solutions & Applications Predictive Maintenance Smart Production Connected Customer Smart Logistics IOT SERVICES Agile Business Process Management Predictive Analytics & Machine Learning Complex Event Processing In-memory Data Management Enterprise Integration & Enrichment Visual Analytics Device Management Ad Hoc Historical Analytics IoT Development & Delivery Environment Application Development Portals & APIs Data Visualizations DATA COLLECTION Lightweight Messaging Edge AnalyticsEmbedded Agents IOT DATA SOURCES

10. SAG IOT SOLUTION FRAMEWORK (2) … IN FULL THEORY & ACTION 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 10

11. SUMMARY 11 May 2016IoT. Concepts, Challenges, & Strategies (Christoph F. Strnadl) - v1.00 11 “The Internet of Things (IoT) is not just a barcode on steroids. It has the potential to change the world, just as the Internet did. Maybe even more so.” KEVIN ASHTON (1999) Address IoT/Industry 4.0 with a holistic platform approach based on the SOA paradigm. But start small in a subdomain with a fast ROI, e.g. MES integration or predictive maintenance.