IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY

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IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
IIoT for the Intelligent Enterprise
     “Leveraging Big Data, Telemetry, and AI”

                                                                                Tony Maresco

1          Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
Topics
•   By Many Names
•   Telemetry
•   Analytics
•   Value Through Outcomes
•   Big Data Architectures
•   Use Cases
•   An Example
•   Summary
•   Q&A
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
Safe Harbor Notice

This presentation describes features that are under development by MicroStrategy. The objective of this presentation is to provide insight into
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Private Securities Litigation Reform Act of 1995, including descriptions of technology and product features that are under development and
estimates of future business prospects. Forward-looking statements inherently involve risks and uncertainties that could cause actual results
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Factors that could contribute to such differences include: the Company’s ability to meet product development goals while aligning costs with
anticipated revenues; the Company’s ability to develop, market, and deliver on a timely and cost-effective basis new or enhanced offerings
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undertakes no obligation to update these statements for revisions or changes after the date of this presentation.

                                             Copyright © 2019   MicroStrategy
                                                         Copyright                  Incorporated.
                                                                   © 2019 MicroStrategy Incorporated. AllAll Rights
                                                                                                         Rights      Reserved.
                                                                                                                Reserved .
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
By Many Names

 Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
Internet of Things or …..
 •   Internet of Everything
 •   Web of Things
 •   Industrial Internet of Things
 •   Enterprise Internet of Things
 •   Consumer Internet of Things
 •   Your Internet of Things
 •   Smart Planet
 •   Second Digital Revolution
 •   Industrial Revolution 4.0
 •   Industry 4.0
 •   Second Machine Age
 •   Thingalytics
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
Industrial and Enterprise Internet of Things
A working definition

                                                          The Internet of Things (IoT) is the internetworking of physical devices,
                                                          vehicles, buildings and other items—embedded with electronics, software,
                                                          sensors, actuators, and network connectivity that enable these objects to
                                                          collect and exchange data. The enterprise IoT focuses on the use by
                                                          corporations and businesses and adds analytics, smart decisions and actions.

                                                          The Industrial Internet of Things (IIoT) is the use of Internet of Things (IoT)
                                                          technologies in manufacturing. ... In manufacturing specifically, IIoT holds great
                                                          potential for quality control, sustainable and green practices, supply chain
                                                          traceability and overall supply chain efficiency.

      Efficiency       Predictive   Prescriptive                       Recommendations                          Costs   Revenue   Personalized

                                           Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
The Basic Idea
• High volume/velocity data from sensors, machines, smartphones and
  social media is continuously captured and stored.
• Stored “Big Data” is accessible for traditional Historical Analysis
• In addition, models are built with advanced analytics to surface
  actionable insights in a form that can be run on live data.
• Models execute in the data streams to trigger actions when
  opportunities or threats are predicted.
• This process is forever repeated so existing models are refined and
  new ones discovered.
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
IoT Reference Architecture for MicroStrategy
Sensors – Streaming using Rules – Operational Analytics and Alerts – Historical for model building

                               Stream Processing        Actions
              Sensor Data                                              Applications     Actuators    Controllers

                                                                                                                                                 Operations
              Transactions                                                                                           Real-Time Monitoring

              Social Media                                                        Intelligence Server
                                                                                  Transaction Services
                                                                                                                                                  Analysts
                                                        Alerts
                 Semi/                                                            MicroStrategy Web                  Operational Monitoring
              Unstructured
                                      DM Models                                   MicroStrategy Mobile
                                                                      DM Models   MicroStrategy Library
                                                        Real-time
                Events                                                                                                                         Data Scientists
                                                                                  MicroStrategy Badge                Historical Analysis/EDA
                                Streaming Analytics                               Platform Analysis

                             Relational           Hadoop &          Cloud-            Enterprise      Personal or
                             Databases            Big Data          Based Data        Applications    Departmental

                                          Enterprise Data & Business Applications                                               Machine Learning
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
We Could Monitor..
                     Connected Car

   Smart Grid
IIOT FOR THE INTELLIGENT ENTERPRISE - "LEVERAGING BIG DATA, TELEMETRY, AND AI" TONY MARESCO - MICROSTRATEGY
Support Case Metrics
We Can Look Back at History
How Can We ?
• .

               With Analytics….
Telemetry

  Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Like Mission Control … But Affordable
Small and Low – Cost Sensors
I

              Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
…Low Cost Fast Networks + Big Data Analytics
Exponential increase in the ability to gain insight and take action – Analytical Nirvana

                                       Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
My Chevy Volt OnStar Report

               Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Analytics

  Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Characteristics of I/EIoT Related to BI and Analytics
         Optimization                                                Get the most bang for the buck.

         Predictions                                What is likely to happen based on past history?

         Aggregation                     What is happening in the aggregate – windows of time ?

         Time Series              How are we doing now vs. yesterday, last week, last year ?

        Trend Analysis                                             What direction are we headed in?

         Correlation                             What factors influence activity or behavior?

    Analytics in the Stream                      There isn’t time to store and then calculate

                              Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Drivers
         Low-latency                                       From monthly loads to a seconds or less…

  Descriptive to Prescriptive                                 Descriptive -> Predictive -> Prescriptive.

   Alerts and Action Driven                  Ready, optimized actions to problems and opportunities.

   Analyze the Population                                         Actual and all behavior, product use.

                                Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
The IIoT Opportunity for Different Analytics Types
Economic value by creating smart devices, prescriptions and actions - not just collecting data

         Ingest        Historical        Predictive          Prescriptive           Actions

  New revenue potential by tying into more of the product life cycle with timely advice and actions.
Value Through Outcomes

  Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Some Early Economic Predictions
•   4.9 billion devices in 2015 and 25 billion by 2020 (Gartner)
•   14.8 billion devices in 2015 and 50 billion by 2020 (Cisco)
    •   2.77% of estimated 1.9 Trillion potential connected devices
•   Economic value of $14.4 Trillion in private sector and $4.6 Trillion in the public sector in the
    next decade (Cisco)
•   $1.46 Trillion market in 2020 up from $700B in 2015 (IDC)
•   $1.9 Trillion Economic value add (Gartner)
•   $ 7.1 Trillion IoT Solutions Revenue (IDC)

         This just scratches the surface – see http://postscapes.com/internet-of-things-market-size

                Numbers have been and are all over the spectrum….and what do they mean ?
Breakdown of Early Cisco Economic Value
• Private Sector $14.4 Trillion
  • Asset utilization $2.5 Trillion
  • Employee productivity $2.5 Trillion
  • Supply chain and logistics $2.7 Trillion
  • Customer Experience $3.7 Trillion
  • Innovation, including reduced time to market $3.0 Trillion
• Public Sector $4.6 Trillion
  • Employee productivity $1.8 Trillion
  • Connected militarized defense $1.5 Trillion
  • Cost reductions $740 Billion
  • Citizen experience $412 Billion
  • Increased revenue $120 Billion

                Focus on the areas impacted…not necessarily the numbers…
The Benefits
•   Optimize operations to increase efficiency
•   Avoid Threats
•   Increase revenue
•   Supercharge the customer experience
•   Compress and inform product and service design and development
Big Data Architecture

  Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
IoT Reference Architecture for MicroStrategy
Sensors – Streaming using Rules – Operational Analytics and Alerts – Historical for model building

                               Stream Processing        Actions
              Sensor Data                                              Applications     Actuators    Controllers

                                                                                                                                                 Operations
              Transactions                                                                                           Real-Time Monitoring

              Social Media                                                        Intelligence Server
                                                                                  Transaction Services
                                                                                                                                                  Analysts
                                                        Alerts
                 Semi/                                                            MicroStrategy Web                  Operational Monitoring
              Unstructured
                                      DM Models                                   MicroStrategy Mobile
                                                                      DM Models   MicroStrategy Library
                                                        Real-time
                Events                                                                                                                         Data Scientists
                                                                                  MicroStrategy Badge                Historical Analysis/EDA
                                Streaming Analytics                               Platform Analysis

                             Relational           Hadoop &          Cloud-            Enterprise      Personal or
                             Databases            Big Data          Based Data        Applications    Departmental

                                          Enterprise Data & Business Applications                                               Machine Learning
IIoT Architecture Incorporating Streaming Data From Sensors
Kafka is the most popular approach replacing proprietary technologies and slower message brokers

                                                                                                                Application
                                                                                                                 Servers
                                                                   Kafka Cluster

                                                      PROCESS, ANALYZE, SERVE

                                             BATCH    STREAM       SQL      SEARCH         SDK

                                                             UNIFIED SERVICES

                                            RESOURCE MANAGEMENT                 SECURITY                        Enterprise
                                                                                                    DATA      Data Warehouse
                               OPERATIONS
                                                                                                 MANAGEMENT
                                             FILESYSTEM        RELATIONAL            NoSQL

                                                                 STORE

                                                     BATCH                   REAL-TIME

                                                               INTEGRATE

            Cloudera, Inc.
Example Applications at Each Level
Latency requirements are shorter the closer you are to the device

        From https://www.gerenewableenergy.com/wind-energy/technology/digital-wind-farm.html
Edge Analytics
Analytics exists at the edge for real-time action and in the data center for historical analysis and modeling
A New Real-Time Approach
     Push to Cube – Push to Viz
         Kafka Notification Receiver                            Real-time engine                                                                         Data Broker
                     MSTR Cube
                                                           Cube                               Socket                                                Connected visualizations
                                                      Definitions/Data                        rooms

                                                                                                                              Broadcast data

               Push data        Success
                to cube        response
                                                     Execute
                                                      Cube
                                                                                                     Create or                                      New visualization request
                                                                                                     join room
     Data Stream                       Success
                                      notification

                                                                                                                                                           Drop zones
                                                                                                                                                      Attributes Metrics
                                                                                                                              Request room to
                       kafka                                                                                                 satisfy data request

31                                                      Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
REST Allows You to Push Data Into Cubes
Integration of R with Spark using SparkR or SparklyR
                                                                        Storage: HDFS, RDBMS, Hive, HBase,
                                                                        Cassandra, MongoDB, SOLR, Elastic,
                                                                        Other NoSQL

          Sources :
          unstructured, semi-
          structured, structured

                                      Leveraging Spark
      •      R integrates to Spark with SparkR or SparklyR
      •      MicroStrategy can execute RScript that includes packages using a metric
      •      You can separate model generation from model scoring
      •      These scripts can be used for algorithm training as well as to generate statistics
             for exploratory data analysis
Leveraging alerts and transactions for actionable insights
A streaming application can trigger alerts and transactions can invoke processes or control devices
Use Cases

  Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
An Example Taxonomy of the IOT

     Machina Research
Predictive – Condition Based Maintenance

• Features that predict failures are identified
  to build models and then equipment is
  monitored in real-time using on-board
  sensors
• Historical data is captured for continuous
  modeling. Did we miss a failure ? Did we
  prematurely predict a failure ?
• Different instances of the same equipment
  type may behave differently and require
  unique models
• It is cheaper to maintain when needed
  than at prescribed times.
• It is cheaper to outfit products for
  predictive maintenance than to face
  machine failure, loss of business or other
• Once you can predict failure, you can
  evolve business models that sell uptime
Guaranteeing On-Time Arrival of Trains at Renfe
Get there on-time or get your money back on the Alta Velocidad Espanola train.

• Contracts maintenance of trains and tracks to
  Siemens AG.
• Siemens maintenance operations monitor and
  anayze data from hunderds of sensors on both
  trains and tracks to detect malfunctions that
  cause service disruptions
• Schedules necessary remedial maintenance in
  advance of failure
• Monitor vibration, heat, sound and many other
  sensor based measurements

 http://www.siemens.com
Selling Time-On-Wing for Jet Engines
Rolls-Royce’s TotalCare service

• Suite of maintenance and repair services for
  company’s commercial jet engines including
  continuous monitoring of engine health metrics
• Sells time-on-wing availability rather then the
  engines themselves
• Assumes all costs for maintenance and repair
• Airline replaces operational costs for capital
  costs
• Airline reduces operational costs for
  maintenance and repair and streamlines parts
  inventory.

http://www.rolls-royce.com
Frictionless Retail

• Beacons locate shoppers in the store and
  determine which products are close by and the
  identity of the shopper
• A smart shelf enables RFID/NFC-tagged
  products to be automatically sensed when
  picked up by a shopper. The combination of
  store shelf sensors, smart displays, digital price
  tags and high resolution cameras makes it
  possible for retailers to see what is on the store
  shelf and in the back stock room and link these
  two sets of data.
• Identity, location and historical information
  allow personalized offers to be offered in
  realtime.
• Behavior is captured to improve merchandise
  and merchandising
• Remove delays or frustrations from the supply
  chain and best-serve the customer in the store.
Improving Banana Crops Production

• Deployed wireless sensor network
• Measure digital humidity & temperature, soil
  moisture, soil temperature, trunk diameter,
  fruit diameter, pluviometer, solar radiation,
  ammonia
• Cut down costs, increase quality and quantity
  of harvesting, ease routine activities of
  farmers
• Guarantee production and competitiveness
• Harvesting projections, optimize water usage,
  prevent plagues and diseases, reduce fertilize
  consumption, catalog soils depending on
  climate and culture

http://www.libelium.com
Fish Farm Monitoring

• Vietnam fish farms needed to establish
  tougher control measures on the quality of fish
  and the farming conditions.
• PHA Distribution deployed wireless sensor
  network
• Monitor different parameters to monitor water
  quality and prevent diseases
• Real-time monitoring raises awareness of
  preventable diseases to save disease
  treatment costs, keep fish in good health until
  harvesting and to minimize fish loss
• Monitors temperature, conductivity, dissolved
  oxygen, oxidation-reduction potential, pH,
  ammonium ion, nitrate ion, nitrite ion.

http://www.libelium.com
Aria Systems Connected Car Offering

• Connected cars are linked to the cloud by way
  of wireless technologies, smart chips, onboard
  computers and mobile apps
• In the next five years, the number of
  connected cars may exceed a quarter of a
  billion worldwide
• enhanced navigation, real-time traffic and
  parking information, streaming infotainment
  and integration between dashboards,
  smartphones and wearable devices such as
  health trackers and smart watches
• New sources for monetization for carmakers,
  service providers and many other travel-
  related industries
• Data plans and subscription services
• Revenues from connected car services are
  expected to top $40 billion (U.S.) in the next
  five years
 https://www.ariasystems.com
IOT Applications

• Predictive Maintenance      •   Network Performance Management
• Loss Prevention             •   Capacity Utilization
• Asset Utilization           •   Capacity Planning
• Inventory Tracking          •   Demand Forecasting
• Supply Chain Optimization   •   Pricing Optimization
• Disaster Planning and       •   Yield Management
  Recovery                    •   Load Balance Optimization
• Downtime Minimization       •   Smart City
• Energy Usage Optimization   •   Health Monitoring
• Device Performance          •   Agriculture
  Effectiveness
An Example

  Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Predictive Maintenance Basic Idea
• Equipment failures can be very costly, both unscheduled and
  catastrophic at the extreme
• Early and overscheduling of routine maintenance likely can be
  costly by tending to be conservative
• Routine maintenance also will tend to adapt slowly to
  changing conditions, leading to more costs.
• By leveraging low cost sensors, high speed networks, wireless
  technology, big data and analytics we can study failure
  scenarios
• Based on historical analysis of known failure conditions, we
  can learn to estimate when a part or group of parts is likely to
  fail and head off issues in a timely and cost effective manner.
The Test and Training Data

• Available at https://ti.arc.nasa.gov/tech/dash/groups/pcoe/prognostic-
  data-repository/
• Donated by various universities, agencies, or companies.
• The data is real world and there are many published analyses and
  evaluation of approaches.
• It provides a template for collecting and using data in the real world.
• Success in these exercises requires appropriate digitizing of relevant
  machinery and devices in order to establish predictors for failures.
• Many iterations may be required
• The opportunity exists to move from scheduled maintenance to
  condition based maintenance to predictive maintenance.
Real-Time Stream of the Training Data
Cost Model

       https://svds.com/predictive-maintenance-iot/
Example Academic Research In this Area

• Damage Propagation Modeling for Aircraft

• Investigating Computational Geometry for Failure Prognostics in
  Presence of Imprecise Health Indicator: Results and Comparisons on
  C-MAPSS Datasets

• Review and Analysis of Algorithmic Approaches Developed for
  Prognostics on CMAPSS Dataset
Develop a Model with Jupyter and Python

    https://github.com/duyetdev/iot-predictive-maintenance
Deploying the Model on a Stream
•   Create UDF and add to KSQL and monitor or alert on the stream

                                                                    MicroStrategy for visualization, alerts,
                                                                          and historical analysis.
The Real World is Much more Difficult

                                                                       •     There are many parts that can fail on an
                                                                             aircraft and on any machinery
                                                                       •     There are many failure scenarios that
                                                                             you will need to account for
                                                                       •     Grouping service together to save on
                                                                             downtime
                                                                       •     Often Landing Gear problems are
                                                                             discovered after pushing away from the
                                                                             gate
                                                                       •     A delay can cost 25K to 40K and greatly
                                                                             impact customer satisfaction

     From “Architecting the Industrial Internet”, By: Shyam Nath; Robert Stackowiak; Carla Romano, Pakt Publishing,
Limits of Wired Sensors
•   Position (extension or retraction)
•   Wheel speed
•   Weight on wheel
•   Skid (and antiskid)
Wireless Allows More Sensors
•   Failing to retract/extend
•   Failing to get up-locked after retraction / down-locked after extension
•   Exceeding retraction/extension time limits
•   Failing to give indications in cockpit of down-locking, transit, and up-locking
•   Loss in nitrogen pressure and oil in oleos due to leak
•   Loss in pressure in tires due to leak
•   Binding of wheel bearings and brakes
•   Fully worn out friction pads
•   Brake unit-related issues, such as overheating of brake unit
•   Leakage of brake fluid and sponginess in brake pedals
•   Failure of antiskid
•   Leakage of nitrogen in emergency extension cylinder
•   Low brake pressure in emergency accumulator
•   Low line pressure in emergency system
•   Low brake line pressure
•   Low battery voltage in emergency system
Sensor Locations and Use
                                                                    • Early detection of wear or
                                                                      malfunctions
                                                                    • Brake pads and hydraulic oil
                                                                      pressure
                                                                    • Digital twin of the landing gear
                                                                      is updated with new data and
                                                                      analytics applied
                                                                    • Diagnose current issues
                                                                    • Calculate Remaining Useful
                                                                      Life

    From “Architecting the Industrial Internet”, By: Shyam Nath; Robert Stackowiak; Carla Romano, Pakt Publishing,
Summary

 Copyright © 2019 MicroStrategy Incorporated. All Rights Reserved .
Summary
• High volume/velocity data from sensors, machines,
  smartphones and social media is continuously captured and
  stored.
• Stored “Big Data” is accessible for traditional Historical
  Analysis
• In addition, models are built with advanced analytics to
  surface actionable insights in a form that can be run on live
  data.
• Models execute in the data streams to trigger actions when
  opportunities or threats are predicted.
• This process is forever repeated so existing models are
  refined and new ones discovered.
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