IIC Journal of Innovation 8th Edition | Page 12

Causal Analytics in IIoT – AI That Knows What Causes What, and When The result is that an observed correlation over time may or may not be coincidental; or, the observed correlation (and any implied causation) may be the result of one or more third-party variables (hidden confounders), e.g. another variable that influences two events that are seemingly correlated. An example of this may be ice cream sales and boating accidents that are correlated, but both are affected by summer temperatures, and so a causal inference would be spurious. In this example summer temperature is causal, but one may incorrectly infer causation that an increase in ice cream sales leads to boating accidents due to the high correlation factor. More humorous examples of these erroneous correlations can be found at Spurious Correlations. 3. ThingWorx's capabilities make it possible for users to correlate data, deriving powerful insights… 15 4. Siemens PLM: …quantitative statistical relationships to real-life usage, called customer correlation 16 5. Industrial Internet Consortium: …common issue in IIoT systems is correlating data between multiple sensors and process control states 17 Correlational methods are established as powerful aids to decision-making as is witnessed in the rise of platforms that provide the capability. Correlations often vary such that at a given time one entity and another may be positively related and at other times only weakly related or not at all. There is no fact-based causal coefficient that describes the strength of potential causal relationships. Mathematically-based causal analytics attempts to improve on correlation for causality identification. The lack of stability in correlations indicates complexity in the relationships and the presence of a dynamical system (common in IIoT). This results in variability according to the system state and nonlinearity in system behavior. It means that traditional statistical methods, correlation included, have limitations for obtaining precise analytics and improved decision making about performance in IIoT. 15 The Evolution of Causal Analytics C AUSALITY FOR R EAL -W ORLD A PPLICATIONS It is well accepted that causation cannot be proven statistically unless one conducts an experiment with randomization to control A survey of IoT cloud platforms https://www.sciencedirect.com/science/article/pii/S2314728816300149 16 Customer Correlation Durability Methodology https://www.plm.automation.siemens.com/en/products/lms/engineering/customer-correlation.shtml 17 Industrial Analytics: The Engine Driving the IIoT Revolution https://www.iiconsortium.org/pdf/Industrial_Analytics- the_engine_driving_IIoT_revolution_20170321_FINAL.pdf - 8 - June 2018