The paper debates the comparison between centralized cyber-physical systems and distributed cyber-physical systems (CPS). Centralized CPS implies a system where a single player standardizes data format and protocol together with core services. Distributed CPS implies a system where varieties of digitalization systems by multiple vendors are interconnected to adapt to specific local contexts. Then the paper identifies that distributed CPS has practical advantages over centralized CPS. However, distributed CPS has potential disadvantages that threaten interconnectivity among digitalization systems by multiple vendors. The paper illustrates how such fragmentation could be avoided; it presents how interoperable linkage among multiple systems is realized. IoT-Hub, a sort of data conversion system, is an enabler of interoperability. The paper illustrates the framework of distributed CPS. That comprises several layers that could be managed autonomously by independent players regardless of activities in other layers. The paper exemplifies local-based frugal innovation by such distributed CPS. One example is IoT-based proactive energy demand control system. The system is composed of sensing systems, component systems and application software. The distributed CSP that deploys IoT-Hub enables adaptable coordination of building elements and digitalized systems respecting local specific contexts. In such a way, distributed CPS provides a comfortable indoor climate with optimized energy use. The other example is IoT-based inventory system for building materials. The system is composed of manufacturing process monitoring systems and logistics monitoring systems. The integrated system could provide reportable and verifiable inventory data of building materials. The system can facilitate responsible use of building materials by providing inventory data that is a piece of essential information for environmental declaration. Exemplified cases suggest how distributed CPS strategy has the potential to encourage a broad range of entrepreneurs to commit to frugal innovation toward a sustainable built environment.
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