Industrial Digital Transformation Accelerate digital transformation with business optimization, AI, and Industry 4.0 Shyam Varan Nath Ann Dunkin Mahesh Chowdhary Nital Patel BIRMINGHAM—MUMBAI "The most comprehensive and insightful book on industrial digital transformation. A decade of real-world experience to help guide the C-suite to compete in a changing world." – William Ruh, CEO, LendLease Digital "In the 21st century, new technology emerges at an ever-faster pace and government agencies struggle to keep up. In Industrial Digital Transformation, Ann Dunkin, Shyam Varan Nath, Mahesh Chowdhary, and Nital Patel describe this struggle and show the reader how to put the pedal to the metal and begin to catch up." – Rob Klopp, Former CIO, US Social Security Administration "There's a reason digital transformation is an industrial trend today; it's not just a buzzword phrase! Companies that do not consider how digital technology can streamline their processes are at a significant productivity disadvantage. This book explains why and outlines how to get there." – Dr. Richard Soley, Chairman and CEO of OMG ®, Executive Director Industrial Internet Consortium (IIC), Digital Twin Consortium (DTC) , and Cloud Standards Customer Council "The industrial digital transformation journey cannot be just a set of trials and errors. This book is a must-read for business and technology leaders trying to get their company ahead of the game in the industry. The authors have shared their own lessons on industrial transformation in an easy-to- follow way." – Dr. Ashutosh Misra, Chief Technology Officer – Electronics; Senior Fellow, Air Liquide "Industrial Digital Transformation is written by authors who are experts in their respective fields. They bring years of experience and have provided a lesson in the history and current status of cutting-edge technologies that the reader can use as a guide on their own journey. I highly recommend this book to anyone interested in learning about the risks and benefits of digital transformation and how the latest research in big data and machine learning can be beneficially leveraged." – Dr Diego Klabjan, Northwestern University; Professor, Industrial Engineering and Management Sciences; Director, Master of Science in Analytics; Director, Center for Deep Learning "Industrial Digital Transformation is an excellent read. Not only does it provide a good overview of important developments that are making a difference, but it also deep-dives into topics that add business value. It broadened my field of view to help me appreciate the essential adjacencies one needs to be concerned about." – Devadas Pillai, Intel Senior Fellow, Logic Technology Development, Intel Corporation "Industrial Digital Transformation is a must-read book for any business and technology professional leading their company toward digital transformation". – Diwakar Kasibhotla, VP Engineering, GE Digital "You can't afford an expensive failure in your industrial digital transformation. This book captures the essence of lessons learned from the transformation journey globally." – Sabina Zafar, Architecture Leader at GE Digital, Grid Software Solutions and Vice-Mayor at the City of San Ramon "A must-read book describing emerging technologies in digital transformation that connect the dots between AI, ML, and automation." – Dr Jessica Lin, Associate Professor, George Mason University "Discussions about the topic of digital transformation are very popular these days among business leaders, technologists, technology vendors, and related services companies. This book focuses on providing a grounding in the history, technologies used, cultural shifts needed, and economic impact of such projects. If you are new to this topic in an industrial setting, you will find value in this book." – Robert Stackowiak, Independent Consultant, Instructor, and Author, Coauthor of the Book Architecting the Industrial Internet. "Industrial Digital Transformation isn't a competitive advantage; it's a way of life and it's critical to survival. The authors provide a common- sense approach to start the journey of digital transformation. The authors provide both fundamental and nuanced guidance in the practical pursuit of industrial digital transformation." – Jim Kohli, DTM Principal Cybersecurity Architect at GE Healthcare and Past International Director at Toastmasters International "Shyam has a wealth of knowledge on the digital transformation space. We are lucky he and the coauthors are sharing their knowledge with us." – Bett Bollhoefer, Instagram, Technical Product Manager, and Author "Industrial digital transformation is the next wave of the technological revolution that will dramatically transform manufacturing, energy, healthcare, transportation, and other industrial sectors. This transformation will require new technologies that will connect data centers, industrial control systems, industrial machines, and humans. The connectivity and interoperability of heterogeneous systems are the foundations of industrial digital transformation and major prerequisites to realize its full potential. It will be critical to build systems that can automate data collection, cleansing, and aggregation." – Dr. Alisher Maksumov, VP Engineering and Architecture, Hitachi Vantara Industrial Digital Transformation Copyright © 2020 Packt Publishing All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews. Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, nor Packt Publishing or its dealers and distributors, will be held liable for any damages caused or alleged to have been caused directly or indirectly by this book. Packt Publishing has endeavored to provide trademark information about all of the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information. Commissioning Editor: Vijin Boricha Acquisition Editor: Preet Ahuja Senior Editor: Rahul Dsouza Content Development Editor: Nihar Kapadia Technical Editor: Sarvesh Jaywant Copy Editor: Safis Editing Project Coordinator: Neil D'mello Proofreader: Safis Editing Indexer: Rekha Nair Production Designer: Prashant Ghare First published: November 2020 Production reference: 1271020 Published by Packt Publishing Ltd. Livery Place 35 Livery Street Birmingham B3 2PB, UK. ISBN 978-1-80020-767-7 www.packt.com Packt.com Subscribe to our online digital library for full access to over 7,000 books and videos, as well as industry leading tools to help you plan your personal development and advance your career. For more information, please visit our website. Why subscribe? • Spend less time learning and more time coding with practical eBooks and Videos from over 4,000 industry professionals • Improve your learning with Skill Plans built especially for you • Get a free eBook or video every month • Fully searchable for easy access to vital information • Copy and paste, print, and bookmark content Did you know that Packt offers eBook versions of every book published, with PDF and ePub files available? You can upgrade to the eBook version at packt.com and as a print book customer, you are entitled to a discount on the eBook copy. Get in touch with us at [email protected] for more details. At www.packt.com, you can also read a collection of free technical articles, sign up for a range of free newsletters, and receive exclusive discounts and offers on Packt books and eBooks. Contributors About the authors Shyam Varan Nath is the author of a book on the Industrial Internet of Things (IIoT) titled Architecting the Industrial Internet. Shyam has worked for large companies, including Oracle, GE, IBM, Deloitte, and Halliburton. His areas of expertise include IIoT, cloud computing, AI/ML, and databases. He has worked on driving digital transformation at several large companies. Shyam has also earned Distinguished Toastmaster (DTM) status with Toastmasters International. He has an undergraduate degree from IIT Kanpur, India, and an MS (Computer Science) and an MBA from FAU, Boca Raton, FL. Shyam is part of the Program Committee of IoTSWC. He is active on Twitter at @ShyamVaran. You can contact Shyam at [email protected] I would like to thank my professional colleagues at Oracle and GE, as well as others who I interact with regularly in the industry. I would like to acknowledge the key experiences acquired through my participation at the Industrial Internet Consortium (IIC) and as a result of attending the IoTSWC events in Barcelona over the years. Finally, a big thanks to my co-authors of this book. Ann Dunkin, P.E., is Chief Strategy and Innovation Officer at Dell Technologies. She has over a decade of experience as a Chief Information Officer (CIO), including as CIO of the US EPA in the Obama Administration. She has led digital transformations in large organizations and has written and spoken extensively on the topics of technology modernization, organizational transformation, and digital services. She serves on several non-profit and for-profit boards and has received numerous awards for her contributions to government digital transformation. She holds a Master of Science and a Bachelor of Industrial Engineering degree, both from the Georgia Institute of Technology. She is a licensed professional engineer in the states of California and Washington. You can contact Ann at [email protected] A big thank you to the IT teams I led at the US EPA, Santa Clara County, Palo Alto Unified School District, and Hewlett-Packard. I learned everything I know about technology leadership and digital transformation from the people I've worked with. Thank you to all my co-authors, especially Shyam, who invited me to collaborate. And thanks to Kathleen, who always believed in me. Mahesh Chowdhary, Ph.D., is a Fellow and the Director of Strategic Platforms and the IoT Excellence Center at STMicroelectronics, based in Santa Clara, CA. He leads the effort on the development of solutions and reference designs for mobile phones, consumer electronic devices, automotive and industrial applications that utilize MEMS sensors, and computing and connectivity products. His areas of expertise include AI/ML, MEMS sensors, IoT, digital transformation, and location technologies. He has been awarded 24 patents. He has spoken extensively internationally about ML, smart sensors, and IoT. Mahesh received his Ph.D. in applied science (particle accelerators) from the College of William and Mary in Virginia. He is also an adjunct professor at IIT, Delhi. You can contact Mahesh at [email protected] I would like to thank my management at STMicroelectronics, along with the customers, professional colleagues, faculty, and students at universities from whom I have gained a lot of insight into IoT and digital transformation. I would also like to thank my co-authors. It was a pleasure working with them to develop our ideas on digital transformation into a book. Nital Patel, Ph.D., is a Principal Engineer responsible for advanced manufacturing systems research and development at Intel Corporation. He has spent his career contributing to digital transformation activities and projects across the manufacturing spectrum, as well as in the sphere of enabling agility in the enterprise supply chain by leveraging data fusion, ML, and AI. He is the lead inventor on 11 patents, has published over 50 papers, and serves on the editorial board of the peer-reviewed academic journal, IEEE Transactions on Semiconductor Manufacturing. He was an adjunct professor at Arizona State University and has been awarded the Mahboob Khan Award from the Semiconductor Research Corporation for mentoring Ph.D. student research. You can contact Nital at [email protected] I would like to thank my colleagues and management at Intel Corporation for encouraging informed risk-taking on our digitization and smart manufacturing journey. With many ups and downs, it has been an incredible ride. Lastly, a special thanks to my co-authors for the effort and dedication they applied to put this book together. About the reviewers Dr. Hakim Laghmouchi is a senior expert in Industry 4.0 with over 13 years of experience in information technology and smart products. His domain expertise lies mainly in process, condition, and production systems monitoring, data analytics, and Industry 4.0 applications. He worked for over 7 years at the Fraunhofer Institute for Production Systems and Design Technology (IPK), a leading Industry 4.0 application- oriented institute in Germany, before moving to Accenture Industry X.0. He holds a Diploma (dipl.- ing.) and Ph.D. (dr.-ing.) in computational engineering sciences from the Technical University Berlin and an MA in sustainability and quality management from Berlin School of Economics and Law. I would like to thank Packt Publishing for the opportunity to review this wonderful book. Moreover, I would also like to thank my parents, siblings, relatives, and friends for their continued support and encouragement for everything that I do. Bill Maile served for sixteen years in the executive and legislative branches of the California State Government, including the Governor's Office, Attorney General's Office, the California Senate, and the California Technology Agency. While serving in Governor Schwarzenegger's Administration, he was part of an executive team that established the Office of the State Chief Information Officer, a statewide office created in 2006 to oversee major IT projects and set state technology policy across more than 130 departments. He also spent five years as the editor of Techwire, a technology trade magazine he founded in 2011. Currently, Bill runs a boutique media firm, Maile Media, that specializes in government technology communications.