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13<br />

Vertical Integration<br />

Thilo Sauter<br />

Austrian Academy<br />

of Sciences<br />

Stefan Soucek<br />

Loytec electronics GmbH<br />

Martin<br />

Wollschlaeger<br />

Dresden University<br />

of Technology<br />

13.1 Introduction..................................................................................... 13-1<br />

13.2 Historical Background................................................................... 13-2<br />

13.3 Network Interconnections.............................................................13-4<br />

13.4 Application View............................................................................. 13-7<br />

13.5 Security Aspects in Vertical Integration.....................................13-8<br />

13.6 Trends in Vertical Integration..................................................... 13-10<br />

Abbreviations............................................................................................. 13-11<br />

References.................................................................................................. 13-12<br />

13.1 Introduction<br />

The past two decades have brought tremendous advances in network technology, both in the office world<br />

and in all fields of automation. Two obvious indicators for this are on the one hand the stunning success<br />

of the Internet, whose technological principles have also widely been adopted in small-size local area networks<br />

(LANs). On the other hand, the lengthy and fierce struggle for an acceptable compromise in fieldbus<br />

standardization shows that the automation domain is seen as an important market by the big players.<br />

Consequently, as networking in both worlds has reached a mature point, the recent years have seen many<br />

attempts to bring the two sides together and to finally achieve something that had remained wishful thinking<br />

for a long time: the idea of vertical integration, meaning a seamless integration of automation data into<br />

a higher level information technology (IT) context beyond mere data acquisition [WV03].<br />

The term “vertical integration” has become trendy in the last years and has been used as a marketing<br />

argument for a number of automation solutions. Strictly speaking, however, vertical integration is not<br />

a concept peculiar to automation. In fact, it has several connotations in different domains that may be<br />

distinguished:<br />

• In an economical context, it denotes the extent to which a company has control of the processes<br />

involved in the manufacturing of its products. Full vertical integration in this case means full<br />

control over the entire value chain from raw material production until the assembly of the final<br />

product [RO03].<br />

• In a business and organizational context, it concerns the information exchange between the various<br />

management levels in a company or an agglomerate of companies. The relevant property here is the<br />

control of the decision flow across the hierarchies.<br />

• In an automation context, finally, it means the data exchange between all automation levels inside a<br />

plant. In particular, it denotes the interconnection of automation and office networks on a technological<br />

level, and the linkage of field-level control and planning tools on an application level [S07].<br />

This chapter will focus on the latter aspects of vertical integration, and there again especially on<br />

the technological issues. It will shed some light on the evolution of the integration idea from the first<br />

13-1<br />

© <strong>2011</strong> by Taylor and Francis Group, LLC

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