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Industrial IoT, Expanding New Business Opportunities

22

We Are At a Critical Stage of a New Industrial Revolution...

Fully

connected

Intelligent

5G Cloud IoT Big Data

After mechanization, electrification, and automation, we have ushered in the fourth industrial revolution represented by

intelligence. Intelligence is embedded into everything connected and all business processes.

ICT technologies, such as Big Data analytics, cloud computing, mobility, and the IoT, lay the foundation for the fourth

industrial revolution.

Mechanization Electrification Automation Intelligence

33

Cost, Efficiency, and Innovation Are Critical for

Modern Manufacturing

Comeback of American

manufacturing

Labor costs have risen sharply. Ford and

another five American manufacturing enterprises

are moving back to the US from China. It is

estimated that the number of companies moving

to China would be lower than that of companies

returning to the US in 2015.

Foxconn's robot workers

Foxconn promoted its "Million Robots" program

to replace monotonous, repetitive assembly

work with automation to improve production

efficiency. The original assembly line of 20–30

people was reduced to five people.

Tesla reshaping the car

concept

With the bankruptcy of Detroit, the traditional

automobile manufacturing mode is hit by a

severe crisis. Tesla electric car, Google's self-

driving car, and other innovative models have

attracted a lot of attention, bringing brand new

experience different from the traditional

automobile industry.

44

Industrial IoT exploits Business Value

Smart Manufactu

ring

Customer

Raw/ Spare Parts

Vendor

Design/Develop

ment Outsour

cing

After sales Svc

Provider

Production

Outsource

Logistics

Sales

Channel

Vertical Integration

IP Networking

+

Data Intelligence

Horizontal IntegrationFull Value Chain Integration

Industrial IoTPlatform

Intranet

Internet

Smart Manufacturing

CollaborativeOperation Customization

Product Servitization

Service Node Service

Node

ManufacturingNode

ManufacturingNode

55

Centralized Management

Decentralized Operation

Fixed operation

Lead time 6 months

2 weeks

Selling Engine

Selling Engine Airtime

Introducing competence & differentiation to traditional

products and business

Smart Manufacturing

Collaborative Operation Customization

Product Servitization

Automated Intelligent

Flexible Operation

66Huawei Confidential6

Huawei Strategy & Offering for Industry

Industrial

security

Don’ts:

Do’s:

Device

Network

IaaS

Platform

Edge

NB-IoT | eLTE | WLAN | Location Network

Private Cloud + Public Cloud

IoT Platform

Connection Mgmt | Device Mgmt | Application Enablement

Big Data | EI

EC-IoT | Huawei LiteOS | Chipset

• Platform: Leader’s quadrant in IHS 2017

• Hybrid cloud: providing global services

• Edge computing/IoT Agent: multi-application

scenario adaptation

• Multiple connectivity technologies: NB-

IoT/EC-IoT/4G/5G/eLTE/Wi-

Fi/RFID/Bluetooth/Zigbee/…

• Multiple protocols:

CoAP/J808/HiLink/LWM2M/OPC-UA/…

• Industrial

application

• Industrial

equipment

• Industrial

data

Application

Operation Visibility

Asset Tracking

Energy Management

Logistics

IoEE

Connected Vehicle

Connected Paint Blender

Smart Metering

77

Obstruction

Reflection

Reflection

Signal Merge

√

√

Throughput

With NoInterference

eLTE-U

Micro

wave

eLTE-U

Multi-path Signal Recombining

Wi-Fi eLTE-U

2~3 X Distance, 10X Coverage Area

No pack loss at 160Km/h

ControlCenter20ms

20ms latency，possible for remote control

Cell throughputeLTE-U

Wi-Fi

0 5 128 users

High Capacity

Disconnected

• Anti-Interference• NLOS Supported

• Wide Coverage• High Mobility• High Capacity

eLTE, Fighting against Challenging Industrial Environment

Throughput

With MediumInterference

Throughput

With StrongInterference

88

Energy ManagementExceptional ROI

Asset Tracking Routine OptimizationVirtual Geo-Fencing

LogisticMinimizing Lead Time

Reducing Human Workload

99

NB-IoT, The Mainstream for LPWA Application

Challenge for Logistic

• 15% of revenue used for manual asset counting

• 15% annual loss in inventories

• $45B fake automotive parts

• $60B lost and counterfeited cargo in pharmacy

NB-IoTPosition

Position

Temperature

Humidity pallet

post utility cart

container

Position

IoT Platform

Asset Tracking

ManagementDispatch Center

Environment

Monitor

Advantages of NB-IoT Solution

• $5 Module

• 50m @67%Cellular Positioning

• 10 Years Battery Life

1010

Digital Yard Assisting BMW to Improve Logistic Operation Efficiency

Improved Operation Efficiency

Less Campus Congestion

Secure Production Supply

Transparent Supply SLA Compliance

1111

Software Container

App dedicated

to elevator

manufacturers

Edge Computing

Cloud Big Data predictive maintenance

EC-IoT

Gateway

• Industry Ruggedized

• 17+ protocols and 20+ interfaces

• 10 Millions of Terminals

• Connective & Quality Management

• Trouble shooting

3rd-party

Apps

Maintenance

50%

Fault Time

90%

IoT Platform Remote O&M system

EC-IoT, unleashing Edge Intelligent

Connective Management

1212

Internet of Elevator & Escalator

We move over 1 billionpeople per day

Service Disruption

Maintenance Cost

1313

OceanConnect IoT Platform, Accelerating New Service Deployment

• Cloud based, easy to scale up

• Connection Quality Management & Trouble Shooting

• Varies type IoT Agent: Light IoT Agent/ OSGi IoT Agent

• South Bound: Protocol agnostic

• North Bound: Open API for 3rd Party APP

IoT Platform

Device

Management

Application

Enablement

API

IoT Agent

IoT Agent

IoT Agent

Connectivity

Management

Device Profile GUI Developer Interface

Battery Life Optimization E2E Trouble Shooting

Radio Link Quality Estimation Differential OTA

1414

Redefining Smart Logistic

Multi-BU

Multi-Scenario

Multi-Device Vendor

Multi-Region

Pep, DSC, EXP, DGF

Yard, Post Box, Tracking…

Parking Sensor, Smart Meter,

Postbox Sensor, Tracker

CN, EMEA, US, RU, APEC

IoT Cloud Service

1515

Assisting PSA Group’s Transformation towards

Mobility Service Provider

Maintenance

Fleet Mgmt

SecurityInter

ConnectMobility Data

180+ Countries 10+ Million of Cars

1616

Ubiquitous

Connection

Build a Fertile Environment for

Industrial Business Excellence.

Huawei Industrial IoT Strategy

Intelligent

Cloud Service+