Stratus Innovation Group Intelligent Factory Solution Option 2 Stratus Innovation Group Intelligent Factory Solution Using IoT to improve manufacturing Ron Savoia, Managing Partner, Stratus Innovations Group Microsoft Cloud OS

Agenda Internet of Things (IoT) market opportunity and challenges How the Intelligent Factory Solution works Intelligent Factory use cases Intelligent Factory Solution architecture Agenda

7/14/2019 1:41 PM Internet of Things A growing market opportunity for manufacturers and device makers #1 The manufacturing industry is where most Industrial IoT projects are realized and where most Industrial IoT investments are made.2 15% Percentage of all U.S. IoT purchases that manufacturing is expected to account for in 2020.2 60% Percentage of early movers in manufacturing that say they are using IoT solutions to improve the reliability or performance of products and services.2 The number of connected Internet of Things (IoT) devices worldwide will more than quadruple in the next few years, increasing from roughly 27 billion in 2017 to 125 billion in 2030, an average growth rate of 12 percent annually. Driven by the proliferation of IoT devices in our increasingly connected world, global data transmissions are expected to increase from a growth rate of 20-25 percent annually to 50 percent per year on average in the next 15 years.   Manufacturers are leading the world in IoT. The manufacturing industry is the market where most Industrial IoT (IIoT) projects are realized and where most IIoT investments are made. Not only is manufacturing the clear leader in Industrial IoT, it also tops all industries in IoT solutions of any kind. In 2020, IoT spending by the manufacturing industry is expected to account for approximately 15 percent of total IoT purchases in the United States. In the Asia Pacific region (excluding Japan), close to one-third of all IoT spending (hardware, software, services and connectivity combined) will be for the manufacturing industry in 2020. The Internet of Things promises to provide organizations with deep insights into their manufacturing processes, which can help to bring about significant bottom-line financial improvements through process efficiency innovation, reduced operational costs, improved product quality, new service offerings, and new revenue streams. To achieve those gains, however, organizations must be able to effectively process and analyze the enormous data sets that IoT devices generate, and extract the insights that add value to their business. According to a Verizon report on the state of the global IoT market2: 76 percent of early-movers in manufacturing say IoT is increasing insight into customer preferences and behaviors. 66 percent of early-movers use IoT to measure risks, protect company assets and improve staff safety. 60 percent of early-movers are using IoT solutions to improve the reliability or performance of products and services. Many organizations face major challenges when it comes to implementing IoT solutions. Often, these challenges are related to the number and diversity of physical devices, controllers, and human-machine interfaces (HMIs) they have deployed across their product lines and the proprietary software they are running on those controllers and edge devices. Many organizations also find it difficult to obtain and transmit telemetry (data collected and communicated by devices) and alert data to a centralized IoT hub that can process and act on the massive amount of data generated every day. 1. The Internet of Things: A movement, not a market, HIS Markit, October 2017. (Reference: https://cdn.ihs.com/www/pdf/IoT_ebook.pdf) 2. IoT in Manufacturing, PricewaterhouseCoopers, July 2018 (Reference: https://www.industrialiotseries.com/2018/07/02/the-internet-of-things-in-manufacturing-benefits-use-cases- and-trends/ © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Core challenges for ODMs and manufacturers 7/14/2019 1:41 PM Core challenges for ODMs and manufacturers The fear among manufacturers that they will have to make huge investments in new equipment to enable IoT solutions that can help them reduce waste, improve efficiency, and lower operational costs, plus device manufacturers’ constant struggle to find new services and revenue streams to complement the sale of their hardware devices. Productivity & profitability Time to market and time to value Slow time to market and time to value for IoT solutions due to long and costly development cycles and the difficulty of moving IoT projects from prototype to full deployment. Core business needs and/or challenges for ODMs and manufacturers include: Challenge 1. Cost and complexity of developing IoT solutions, especially those with advanced capabilities such as machine learning and artificial intelligence Challenge 2. Difficulty of enabling and connecting legacy devices and brownfield equipment in an IoT network Challenge 3. Slow time to market and time to value for IoT solutions due to long and costly development cycles and the difficulty of moving IoT projects from prototype to full deployment Challenge 4. Fear among manufacturers that they will have to make huge investments in new equipment to achieve the results the want to help them reduce waste, improve efficiency, and lower operational costs Challenge 5. The constant struggle of device manufacturers to find new services and revenue streams to complement the sale of their hardware devices Challenge 6. Easy scalability, which is a key to ongoing business growth and innovation, is often hampered by the cost and complexity of development and other issues The cost and complexity of developing IoT solutions, especially those with advanced capabilities such as machine learning and artificial intelligence, plus the difficulty of enabling and connecting legacy devices and brownfield equipment in an IoT network. Cost & complexity © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7/14/2019 1:41 PM Stratus Innovations Group Intelligent Factory Solution Implement IoT and predictive maintenance faster, easier, and with less risk Predictive maintenance and connected field service Reduced costs and less risk Using the Intelligent Factory Solution Offering from Stratus Innovations Group, with the built-in IoT Protocol Gateway Adapter, manufacturers can implement IoT faster, with less risk, and without having to develop customer connectors and gateways. The solution provides previously developed software modules to connect the factory floor to an IoT Hub and a complete reference architecture that enables intelligent devices, makes it easy to connect legacy devices to the IoT network, and ensures rapid time to market and time to value. In addition, ODMs can create new revenue streams by providing deeper insights and new service offerings for their customers. Rapid time to market and time to value © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Predictive maintenance and connected field service 7/14/2019 1:41 PM Predictive maintenance and connected field service Use the extensible machine learning engine to enable predictive analytics and anticipate potential problems before they occur. Easily transition from device health and process insights to predictive analytics and preventive maintenance to reduce process outages and production downtime. Pinpoints the problem before it develops and enables manufacturer to proactively dispatch a field technician to the right device with all of the information they need to address the situation. Supports large-scale requirements for real-time global operation process support and connected field service. The Stratus Innovations Group Intelligent Factory Solution Offering offers predictive maintenance and connected field service, providing additional functionality that takes solutions far beyond simply monitoring the current health of devices. Benefit messages Use the extensible machine learning engine to enable predictive analytics and anticipate potential problems before they occur Easily transition from device health and process insights to predictive analytics and preventive maintenance to reduce process outages and production downtime Machine learning and predictive analytics detects potential problems and alerts manufacturers when a part or piece of equipment is in danger of failing. Pinpoints the problem before it develops and enables manufacturer to dispatch a field technician to the right device with all of the information they need to address the situation Supports large-scale requirements for real-time global operation process support and connected field service Gain deeper insights into the health of manufacturing devices and overall manufacturing processes Device manufacturers can quickly create new service offerings and new revenue streams by providing deeper insights into the health of customers’ manufacturing devices and overall manufacturing processes Additional functionality takes solutions far beyond simply monitoring the current health of devices © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Reduced costs and less risk 7/14/2019 1:41 PM Reduced costs and less risk Lowers both up-front provisioning cost and ongoing operational costs to deliver exceptional ROI and reduce TCO. Near zero risk of implementation project failure eliminates many barriers and disincentives for IoT solution development and deployment. Supports hyperscale computing for easy scalability and unrestricted growth. Includes services that help devices efficiently and accurately communicate telemetry data to the database. Uses pre-built components to significantly reduce the cost of solutions and the risk of implementation The Stratus Innovations Group Intelligent Factory Solution Offering uses pre-built components to significantly reduce the cost of solutions and the risk of implementation. Benefits messages Lowers both up-front provisioning cost and ongoing operational costs to deliver exceptional ROI and reduce TCO Near zero risk of implementation project failure eliminates many barriers and disincentives for IoT solution development and deployment Supports hyperscale computing for easy scalability and unrestricted growth Includes services that help devices efficiently and accurately communicate telemetry data to the database Achieve outstanding usability and accessibility by extending the UI/UX through PowerBI dashboards or custom web and mobile apps Provides message broker architecture to help facilitate communication and make sure that messages from multiple sources or to multiple recipients are correctly translated, stored and understood © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Rapid time to market and time to value 7/14/2019 1:41 PM Rapid time to market and time to value The IoT Protocol Gateway Adapter offers incredibly fast time-to-market and time-to-value by enabling manufacturers to quickly and easily connect existing legacy devices to the IoT network Easily ramp up a pilot or proof of concept (usually in 1-4 weeks) to demonstrate overall functionality and move more quickly to production and implementation Ensure optimal communication and data transmission with software adapters that connect disparate devices, controllers and HMIs to the Azure IoT Hub Plug into disparate device platforms and leverage the same solution for multiple product lines and product offerings The Stratus Innovations Group Intelligent Factory Solution Offering ensures rapid time to market and time to value by dramatically reducing the time required for IoT solution development and deployment. Benefit messages The IoT Protocol Gateway Adapter offers incredibly fast time-to-market and “time-to-value by enabling manufacturers to quickly and easily connect existing legacy devices to the IoT network Easily ramp up a pilot or proof of concept (usually in 1-4 weeks) to demonstrate overall functionality and move more quickly to production and implementation Ensure optimal communication and data transmission with software adapters that connect disparate devices, controllers and HMIs to the Azure IoT Hub Plug into disparate device platforms and leverage the same solution for multiple product lines and product offerings Dramatically reduces the time required for IoT solution development and deployment © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7/14/2019 1:41 PM Powered by Microsoft Azure Built on Azure services, the Intelligent Factory solution provides the security, remote management, and powerful analytics that manufacturers need Ease of connectivity Flexibility and scalability Predictive analytics Data and intelligence Security and management The Intelligent Factory Solution from Stratus Innovations Group can scale up easily to grow with your business. The built-in security tools and capabilities in Microsoft Azure help make it possible to create secure solutions on the Azure platform. Microsoft Azure provides confidentiality, integrity, and availability of customer data, while also enabling transparent accountability. The Intelligent Factory Solution from Stratus Innovations Group integrates with several key Azure services and Microsoft products, including:   IoT Hub – This core Azure service provides connectivity, monitoring and control of all remote devices, connectivity to other core Azure services, and storage of device telemetry and configuration data. Event Processor – An Azure service that monitors the incoming IoT telemetry data and performs complex event processing (such as monitoring for a critical telemetry level, and immediately implementing a critical task workflow). Notification Service – The rules engine on what activities and workflows should be executed if a notification alert is fired. Stream Analytics – A service to provide real-time data analysis for incoming IoT data. Aggregated data can be analyzed in PowerBI to identify new trends, which can then be used to adjust Event Processing to notify users when their attention is required. Device Provisioning & Device Twin – Services to easily and quickly onboard and configure a device that connects for the first time, and manages the Device Twin, which stores the metadata, configuration and current and desired states of the device. PowerBI Dashboard – Provides rich end-user dashboards and visualizes device telemetry data. Machine Learning and Predictive Analytics – Crawl thru the vast amount of telemetry data to spot trends and early warning signs to proactively schedule maintenance on devices to eliminate critical manufacturing process outages. © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Customer logo if possible Our field techs are absolutely amazed at the visibility we can now provide on the health and welfare of our laser devices.” — COO, Global Device Manufacturer ‟ Customer logo if possible In three weeks, a Southern California EPG manufacturer went from concept to production of a deployed solution, which was provided to global factory technicians. The solution currently supports uploading device-log data files to a central website. Future enhancements will include uploading device telemetry automatically and providing machine learning for predictive analytics. A key benefit is the ability to use the same solution for additional product lines and product offerings.

Customer logo if possible ‟ We were impressed with how quickly we could take our existing customer devices and connect them to the Azure IoT Hub to gain real-time device telemetry data.” — Lead Architect, Global Device Manufacturer Customer logo if possible In just four weeks, a global manufacturer based in New England went from concept to a fully functioning prototype, providing its global management team with an industrial IoT solution that supports a proprietary customer front-end UI/UX tool for developing web and mobile device applications. A key feature of the new solution is its ability to leverage device communication code for the entire disparate device product line, which has been expanding primarily due to corporate merger-and-acquisition activities.

Next steps Contact your Microsoft representative To learn more about Stratus Innovations Group solutions, or to contact Stratus Innovations Group directly: https://stratusinnovations.com/solutions /intelligent-factory/

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Enabling Remote Mgmt of Discrete Mfg HW Stratus Innovations Reference Architecture (Components in white are to be added to complete the solution) Edge Intelligence Cloud Upload Cloud Services Cloud Intelligence Mgmt Experience Our unique adapter module is easily compiled to add cloud capabilities to your existing devices, controllers and HMIs. Our software uploads key ops data to the cloud so your team and customers can keep equipment operating at peak efficiency. Microsoft’s Azure cloud offers a secure, scalable and resilient platform for our solution and for your customer’s data. Cloud modules provide a full view of your equipment and how it’s working for customers so you can optimize results and reduce costs. Our solution includes a web-based management application and a full API that allows for custom features and integration with your systems. TEMPERATURE REGULATOR HW ON BOARD CONTROLLER EXTERNAL CONTROLLER BI-DIRECTION DEVICE TWIN AZURE WEB JOBS CALCULATE OEE, MOVING AVGS, ETC. DASHBOARD: HW STATUS, EVENTS, OEE POWER BI HISTORICAL REPORTS CUSTOMER OPS/PLANT MGR UPLOAD DEVICE STATUS, CONDITION, OPERATION, TELEMETRY, TEMP, ETC. CUSTOMER LINE MANAGER ITEM SHAPE MONITOR HW MULTI-PLATFORM / MULTI- PROTOCOL DEVICE TWIN AND CLOUD CONNECT MODULE AZURE IOT HUB AZURE ML (DAILY SCHED) DETECT OUTLIERS WHITELABEL MGMT WEB APPLICATION DEVICE TWIN CONFIG (TWO WAY) SYNC LOCAL CONFIG WITH THE DEVICE TWIN IN THE CLOUD (BOTH DIRECTIONS) SERVICE BUS + EVENT MGR CUSTOMER HW OPERATOR COORDS MEASURING HW ENHANCED HMI / UPLOAD LOGIC STREAM ANALYTICS AZURE APP SERVICES R/W REST API FOR WEB AND INTEGRATIONS ACCT MGR: CUSTOMER EQUIP REVIEW MFG OPS MGR: REVIEW EQUIP OVERALL PERF MANUFACTURER OPS/PROD MGR LASER POSITION SYSTEM CONFIGURE THRESHHOLDS FOR TESTING CONFIGURE EXPECTED USE FOR OEE CALC AZURE COSMOS DB AZURE FUNCTIONS CHECK FOR ERRORS AND EMAIL ALERTS EX: ADD TICKET IN CRM, CUSTOMER EMAIL ALERTS MANUFACTURER TECH ACCT MGR OTHER DISCRETE MFG HW Partner component Solution Builder component Azure service Microsoft product Customer component Components to be added