IIC Journal of Innovation 12th Edition | Page 16

Digital Twin + Industrial Internet for Smart Manufacturing: A Case Study in the Steel Industry systems and optimization by information, the industrial internet enables Smart Manufacturing to optimize production operations across various manufacturing processes. Leveraging these new digitalization capabilities, industrial enterprises can achieve high flexibility, agility and efficiency; improve total performance in their production and business operations; create new service capabilities and business models and finally seek transformational outcomes. 2 T HE I NDUSTRIAL I NTERNET The industrial internet and Smart Manufacturing can be viewed as a twin- movement in the larger context of industrial digital transformation. They focus on applying advances in communication and computation technologies in industrial processes to enable new capabilities and optimize operations. These new technological advances include cloud computing, big data, machine learning/artificial intelligence and new communication technologies, which have been developed in the recent decades and used widely in the consumer and commercial internet. Enabled by these new technologies, the industrial internet seeks to optimize industrial and manufacturing operations by applying insights from analytics on the vast amount of data collected from the newly connected equipment and systems. On the other hand, Smart Manufacturing seeks to fully integrate manufacturing systems and processes so that they can be optimized by use of information—or information driven 1 optimization of manufacturing. Laying its foundation in connectivity and data analytics, which are needed for integrating D ATA , A NALYTICS AND A PPLICATION : C LOSED L OOP O PTIMIZATION FOR THE I NDUSTRIAL I NTERNET To optimize industrial operations is to make optimal decisions in response to changes, with and without a human in the loop, in operational or manufacturing processes. To achieve this, we need access to the right information at the right time about the market, about the customers and the workforce, about the processes and finally about the physical assets and their operating environment. Gaining insights about the industrial assets and their operations is where the industrial internet keenly focuses on. 1 For a general perspectives of Industry 4.0 and smart manufacturing, including architecture for integrating manufacturing systems and processes, "Reference Architecture Model," ZVEI – German Electrical and Electronic Manufacturers’ Association, Frankfurt, 2015. 2 For an overview of the impact of the Industrial Internet of Things, World Economic Forum, "Industrial Internet of Things: Unleashing the Potential of Connected Products and Devices," World Economic Forum, January 2015. IIC Journal of Innovation - 11 -