IIC Journal of Innovation 8th Edition | Page 11

Causal Analytics in IIoT – AI That Knows What Causes What, and When ensure that such problems are addressed correctly and urgently. the sole cause, nor does it always cause the effect. Correlation of events and systems is often a starting point for problem-solving in industrial environments but “correlation is not causation” 12 . Correlation helps to point the way, helps indicate what might be candidate causative or driving factors for some particular effect yet keeping in mind that correlation is simply a measure of association not causation. Correlations can be misleading. Valuable results and insights are often found, but the correlation methods upon which decisions are made mean that risks are inherent and could lead to mistaken or sub-optimal decision-m aking and outcomes. The chief analytics tool of most industrial IoT analytics vendors is correlation. Most sensor-driven data (IoT and machine- generated logs) is analyzed using a proven but older form of statistical methods (even when operating within a machine learning framework). Correlational methods are the dominant form of analytics. Introductory statistics courses tell us that it is not possible to prove causation unless one conducts an experiment whereby treatment and control groups are randomized. This is totally correct but is just not feasible to conduct an experiment in 99% of real- world situations. Algorithmic methods have a probabilistic and contributory approach – spurred on by big data’s need for empirically-based data-driven decisions – to answering questions about what caused what or will. For example, a causal coefficient of 0.83 of X as a causative influence on Y, does not mean that X is necessarily the sole cause of Y (there may be multiple causes) nor does it always cause Y. X is identified however as a contributory cause of Y. Similarly, smoking is a contributory cause of lung cancer; it is not 12 Some examples from IoT vendor publications and websites demonstrate this approach: 1. Cisco (Attaining IoT Value): …enable the company’s customers to perform real-time data correlation and, as a result, quickly react to irregularities 13 2. Huawei (‘The IoT's Potential for Transformation’): …enables correlation-based process and productivity improvements. 14 Correlation does not imply causation https://en.wikipedia.org/wiki/Correlation_does_not_imply_causation 13 Attaining IoT Value: How To Move from Connecting Things to Capturing Insights https://www.cisco.com/c/dam/en_us/solutions/trends/iot/docs/iot-data-analytics-white-paper.PDF 14 The IoT’s Potential for Transformation http://e.huawei.com/en- sa/publications/global/ict_insights/201703141505/focus/201703141643 IIC Journal of Innovation - 7 -