Building High-Quality Industrial IoT Systems
Academician Li Bo Hu from the Chinese Academy of Engineering
(This article is based on the author’s speech at the 8th World Internet of Things Conference in 2023)
A new round of industrial revolution, focusing on technological revolution and industrial transformation, is rapidly unfolding globally. The Industrial Internet of Things (IIoT), as a product of the deep integration of information and communication technology, intelligent science and technology with industry, is a key support for the deep integration of the real economy and the digital economy and the implementation of a new round of industrial revolution. To this end, countries have formulated relevant strategic plans to promote the development of IIoT. For example, the United States emphasizes cutting-edge layouts, reaching a new height in its focus on IoT. The European Union emphasizes the development of IoT towards intelligent, universal, trustworthy, and open directions. China is implementing the “Industrial Internet Innovation and Development Action Plan (2021-2023)” to achieve deep integration of the real economy and digital economy.
The development of IIoT must adapt to the new round of industrial revolution, and specific measures should be implemented from three aspects: First, build a high-quality IIoT system to enter a new development stage of smart industrial IoT; second, deeply implement the new development concept of innovation, coordination, green, openness, and sharing; third, build an integrated innovation development pattern that includes technology, industry, application, talent, policy, and support systems.
1. Concept of Smart Industrial IoT
The term “Industrial Internet” and its initial concept were proposed by GE in 2012. We interpret it as Industrial IoT 1.0, which mainly means integrating people, intelligent machines, and advanced analytical systems through networks, enhancing innovation capabilities, optimizing asset operations, improving production efficiency, reducing costs, and minimizing waste emissions through the interaction of data/information, hardware, software, and intelligent analysis/decision-making, thereby driving the development of the entire industrial economy.
What is Smart Industrial IoT? We interpret smart industrial IoT as Industrial IoT 2.0, defined as a system characterized by autonomous perception, analysis, cognition, learning, decision-making, control, and execution, integrated throughout the entire lifecycle of products, underpinned by new development concepts and new generation artificial intelligence technologies, leveraging various new technologies for cross-domain integration. Specifically, the characteristics of smart industrial IoT are reflected in three aspects: first, the coexistence of virtual and real, integrating high-quality industrial digital space; second, virtual-real collaboration, creating an immersive high-quality industrial smart IoT system; third, the fusion of digital and real, serving as a high-quality carrier for the integrated development of the digital economy and the real economy. Smart industrial IoT is a complex system, including six new subsystems: new industrial products/capabilities/resources subsystems, new perception network subsystems, new platform subsystems, new standard security subsystems, new application subsystems, and new user subsystems.
As a new type of high-quality industrial IoT system, smart industrial IoT exhibits eight characteristics: digitization, connectivity, virtualization, servitization, collaboration, customization, flexibility, and intelligence. Its high quality is manifested in six aspects: first, new technologies, which connect people/machines/things/environment/information intelligently based on a new type of internet, guided by new development concepts and new generation artificial intelligence technologies. Second, new models, which center around users, optimizing the integration of people/machines/things/environment/information. Third, new business forms, characterized by universal connectivity, intelligent leadership, data/model-driven, shared services, cross-domain integration, and mass innovation. Fourth, new features, where human, machine, thing, environment, and information can autonomously and intelligently perceive, interconnect, collaborate, learn, analyze, cognize, decide, control, and execute throughout the entire system and lifecycle activities. Fifth, new factors and flows, integrating and optimizing the “six factors” and “six flows” to facilitate the integration and optimization of people, technology/equipment, management, data/model, materials, funds, and talent flows, forming digitalized, networked, cloud-based, and intelligent products, equipment/systems, and lifecycle activities. Sixth, new goals supporting the digital transformation and intelligent upgrading of systems, achieving innovation, green, open, shared, and personalized objectives.
2. System Architecture of Smart Industrial IoT
The system architecture of smart industrial IoT is divided into six groups, from top to bottom: new smart industrial resources/capabilities/products layer, new smart perception access communication layer, new smart edge processing platform layer, new smart industrial system cloud service platform layer, new smart industrial cloud service application layer, and new people/new organizations. Each layer is supported by new standards and security management. This architecture is applicable for vertical, horizontal, and end-to-end connections. Its characteristics include: edge and cloud collaboration; integration of new generation information communication technology and new manufacturing technology; virtualization and servitization of perception, access, and communication layers; and user-centered new intelligent shared services.
At the same time, each layer has new connotations and content of the era. The new smart industrial resources/capabilities/products layer includes new smart industrial resources, new smart industrial capabilities, and new smart industrial products; the new smart perception access communication layer includes new perception units, new networks, and new interfaces to achieve intelligent perception, access, interconnection, and integration of information; the new smart edge processing platform layer includes a cloud pool for new edge smart industrial resources/capabilities/products perception access communication virtualization, common components for edge smart services, and basic components to achieve new edge layer industrial support services and real-time processing capabilities; the new smart industrial system cloud service platform layer includes three layers of new virtual smart industrial resources/capabilities/products/perception access communication layer, new smart industrial cloud service support common industrial service function layer, and new smart user interface; the new smart manufacturing cloud service application layer presents six new models; at the new people or organization layer, it mainly involves new people and new organizations participating in manufacturing systems and lifecycle activities.
Smart industrial IoT is a multidimensional technical system layer. Firstly, the technical subsystem of the smart industrial IoT system includes overall system technology, system perception and network communication technology, system platform technology, and application (industrial/manufacturing) subsystem technology. Secondly, the supporting technology subsystem includes new industrial technologies, new generation information communication technologies, new intelligent scientific technologies, professional technologies in new industrial application fields, new industrial simulation/digital twin technologies, and industrial metaverse technologies.
Smart industrial IoT has Chinese characteristics, aiming to enhance the market competitiveness of manufacturing enterprises, with the integration of information technology and industrialization as the main line. Its Chinese characteristics are highlighted in five aspects: first, a problem-oriented approach. The construction of smart industrial IoT is driven by the transition from an industrial power to an industrial strong power, accelerating the transformation and upgrading of Chinese industry. Second, emphasis on intelligent technology. Establishing a system centered around new technologies, new models, and new business forms of smart industrial IoT. Third, synchronous development of Industrial 2.0 and 3.0. Industrial enterprises at different stages of digitalization, networking, and intelligence can achieve information intercommunication, resource sharing, capability collaboration, intelligent manufacturing, mutual benefits, and mass innovation in the industrial cloud. Fourth, highlighting the collaborative strength of the government, industry, academia, research, finance, and application teams. Fifth, a new development pattern characterized by domestic major circulation as the mainstay, with international and domestic dual circulation promoting each other.
Smart industrial IoT is a deep integration of the real economy and the digital economy, helping to improve economic efficiency, promote industrial structure optimization and upgrading, create job opportunities, enhance international competitiveness, promote regional coordinated development, protect environmental resources, improve people’s living standards, and promote technological innovation.
3. Preliminary Practice of Smart Industrial IoT
Currently, the Aerospace Cloud Network is the embryonic form of smart industrial IoT, developed by the China Aerospace Science and Industry Corporation, integrating ten specialized technologies: first, cloud network architecture technology, realizing the integration of people, information, space, and physical space; second, intelligent-driven industrial PaaS platform technology, supporting dynamic construction of diverse heterogeneous application scenarios; third, rapid development technology for intelligent industrial apps, supporting the rapid development of industrial apps through model service encapsulation and dynamic combination scheduling; fourth, integration optimization technology, supporting interconnection, integration, and optimization of heterogeneous industrial resources, data, and application services across platforms and fields; fifth, artificial intelligence big data service technology, supporting the research, processing, and analysis of massive data generated during production and operation; sixth, intelligent cloud modeling and simulation technology/digital twin technology, supporting on-demand dynamic construction of simulation resources and environmental layouts, collaborative simulation of full lifecycle activities, and optimized operation; seventh, “5G + edge computing,” supporting efficient operation and processing of applications, algorithms, models, and devices through cloud-edge collaboration; eighth, management technology, supporting precise and intelligent management for government and enterprises; ninth, standardization technology, supporting the realization of a digital mainline; tenth, security technology, which includes six categories: device security, platform security, network security, application security, data security, and security management.
Currently, we have two types of application scenario examples: one type is product lifecycle applications, and the other type is industrial system applications. In product lifecycle applications, we encounter issues such as uneven resource allocation, lack of data support, and singular research and development technical means. Therefore, we have integrated various specialized equipment into the Aerospace Cloud Network (INDICS) cloud platform, providing collaborative application software to form a collaborative sharing platform for internal and external resources, improving cross-unit collaboration efficiency. In different levels of industrial system applications, we have applications for remote predictive maintenance of equipment, cloud-edge collaborative flexible production applications using 5G + edge computing, digital twin applications for dark factories, and smart supply chain optimization and control applications.
4. Recommendations for the Development of Smart Industrial IoT
To develop smart industrial IoT, it is necessary to focus on the real economy, adhering to principles such as government guidance, market dominance, innovation-driven, problem-oriented, and systematic planning. The author suggests implementing the construction of smart industrial IoT in six steps:
First, accelerate the construction of a technological innovation system, especially a basic research and technology innovation system centered on enterprises that combines government, industry, academia, research, finance, and application.
Second, accelerate the training of various talents, especially cultivating compound talents in the industrial IoT field that integrate production and education.
Third, accelerate the construction of national and local infrastructure, particularly emphasizing timely, safe, and service-oriented ubiquitous networks, such as 5G, 6G, integrated terrestrial and space interconnection networks, and computing networks.
Fourth, accelerate the improvement and implementation of national and local policies, especially promoting legislation on the data industry, improving and implementing mechanisms for data openness and sharing, and policies for industrial data security, strengthening intellectual property protection, and improving regulatory policies.
Fifth, accelerate innovation and overcome shortcomings. It is particularly important to focus on developing heterogeneous industrial IoT integration platforms and their integration with industrial tool software technologies and products, focusing on cultivating and developing new generation industrial apps with digital twins as an important carrier, and supporting the development of industrial IoT systems that synchronize the development of 2.0, 3.0, and 4.0 across fields, industries, and regions, while paying attention to future technology and form development.
Sixth, promote openness and cooperation among countries, especially strengthening open cooperation between industrial chains.
This article was published in the “New Economic Guide” 2023 issue 11-12.


The Logistics Planning public account, as China’s logistics and supply chain think tank public account, will publish the following articles in 2024:
1. Leadership from the China Logistics Institute. Former Counselor of the State Council. National Committee member Ren Yuling and former Counselor of the State Council. National Committee member Li Qingyun. New Year’s greetings.
2. Former Chief Economist of the Ministry of Domestic Trade, party member, now Senior Expert of the Supply Chain of the Ministry of Commerce Ding Junfa. Correctly understanding the “two temperature differences” to accelerate the transformation of the economy and society.
3. The young master of logistics academia, researcher at the Development Research Center of the State Council, deputy director of the China International Development Knowledge Center, postdoctoral Wei Jigang’s new work “Towards an Industrial Power: China’s High-Quality Development Strategy and Policy” selected as a key publishing topic by the Publicity Department of the Central Committee in 2023.
4. Strategic thinker in logistics and supply chain and “Chinese Park Thinker” and “Case Expert” Li Lu Wei: The National Security Strategy of Global Supply Chains (serial twenty-six).
5. Researcher, former mayor of Chongqing, deputy director of the National Conference on Economics, vice chairman of the China International Economic Exchange Center Huang Qifan. “Promoting New Quality Productivity Development around New Manufacturing, New Services, and New Business Forms”.
6. Honorary Dean of the China Logistics Institute, chairman of the Expert Committee of China’s Logistics and Supply Chain Think Tank, former Counselor of the State Council, National Committee member Ren Yuling. The confidence and strength of China’s economy to seek progress while maintaining stability (speech at the Economic Innovation and Brand Development Conference held at the Beijing National People’s Congress Center).
7. People’s Daily. Quality news. Modern Logistics Report. Interview with logistics and supply chain expert Li Lu Wei. What functions and characteristics should a global high-quality supply chain possess?
8. Chairman of the Executive Committee of the China Logistics Institute, former Counselor of the State Council, National Committee member Ren Yuling. To promote Chinese-style modernization as a promoter of new quality productivity – speech at the forum for promoting China’s new quality productivity.
9. Strategic thinker in logistics and supply chain and “Chinese Park Thinker” and “Case Expert” Li Lu Wei: The National Security Strategy of Global Supply Chains (serial twenty-seven).