How to make your business thrive.Five invaluable steps to get the most out of the Internet of Things.

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Contents

Foreword 4

Executive summary 5

1.0 Introduction 6

2.0 What is the Internet of Things? 7 2.1 M2M or IoT: what’s the difference? 8

2.2 International IoT examples 9

3.0 How important will IoT be? 11

4.0 Key IoT considerations: 12 4.1 STEP 1: Identify the right problem 13

4.1.1 IoT in action – real-life customer examples 14

4.2 STEP 2: Set up for a great execution 16

4.3 STEP 3: Choose the right technology 17

4.3.1 Devices – sensors and microprocessors 17

4.3.2 The communication network – your critical link 18

4.3.3 Application and platform considerations 25

4.4 STEP 4: Define the right operating model 30

4.5 STEP 5: Selecting the right partner 30

5.0 Conclusion 31

6.0 Appendix 32 6.1 Why Telstra? 32

7.0 References 36

8.0 Abbreviations/Acronyms 37

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Foreword

As I reflect on my recent interactions with customers across the globe, it’s clear that IoT has come of age. In recent times, there has been a lot of buzz about the Internet of Things (IoT) and the impact of a new era of business productivity. I’m delighted to share our thoughts on IoT in this latest Telstra discussion paper, ‘How to make your business thrive: Five invaluable steps to get the most out of the Internet of Things’. In it, we look at what the IoT is, what it can offer your organisation, and some tips and tricks for those considering adopting or scaling up an IoT solution.

IoT is essentially about making business ‘smarter’ with networked devices that contain sensors, software and electronics to collect and exchange data. Through analytics and automation, IoT helps organisations and individuals to make more informed decisions. It can also help to drive change, improve business efficiencies, reduce costs and make organisations competitive in a global market. IoT is poised to become a cornerstone of business innovation and growth, and its impact on Australian industries will be significant.

However, there are a number of factors that we recommend our customers consider when contemplating an IoT initiative. It’s important to understand – up front – the key issues and opportunities within your business. This covers everything from the steps you need to take for a great execution to choosing the right technology, defining the right operating model and selecting the right partner to deliver your desired result. And then there are the project, device, network, platform and application considerations and decisions, all of which will be key to the successful rollout and ongoing management of your solution.

From a technology perspective, IoT leverages the core components of networks (and their capability and coverage), security, analytics and cloud services to create a tremendous opportunity for organisations to profit in a time of disruption.

Our Chief Scientist Dr. Hugh Bradlow observes that:

“IoT is driving innovation. There is almost unprecedented opportunity to drive change and efficiency through improved predictive analytics based on the data collected by the connected (IoT) sensors.”

Telstra has a long and proud history of innovating for the benefit of our customers and we continue to invest in our great networks and technologies to make this possible.

And when it comes to IoT, we are well positioned to help. By way of example, right now we have several local councils piloting sensor networks to monitor environmental conditions (noise, humidity and CO2) so they can improve their planning. (They now have historical and near real-time data to inform town planning strategy and urbanisation impact studies.) We also have other councils using sensor feeds from streetlights and power grids to optimise operating times and reduce costs while continuing to deliver the same quality of service to their communities. Meanwhile, one of Australia’s founding manufacturing companies, Sutton Tools, is embracing IoT for quality control, machine optimisation and reduced maintenance costs.

Telstra’s Chief Scientist Dr. Hugh Bradlow also says: “While previous IT revolutions have impacted particular tasks or segments of the economy, IoT can be applied across the board. All industries are open to being revolutionised and the status quo of today is quickly becoming a thing of the past.”

Michelle Bendschneider, Telstra Executive Director Global Products, 2016

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Executive summary

The Internet of Things is here, it’s real and it will have a profound impact on every aspect of our society. This paper aims to help businesses with the key points for their business strategy when looking to implement or extend an Internet of Things (IoT) solution.

IoT is essentially a network of connected devices supported by a platform that integrates and manages multiple systems and data points, with insights from data analytics driving business value.

IoT promises tremendous opportunities for innovation, driven in part by insights from data analytics and near real-time connectivity on an unlimited range of devices or ‘things’. However our research has shown us that there is a lack of IoT understanding and this is a critical path to overcome before any IoT deployment. This suggests that there is significant unrealised potential for IoT among Australian organisations.

Today, there are already many real world implementations of IoT delivering benefits or, in some cases, creating entirely new businesses or derivations of established practices – think of connected car initiatives, precision farming, Good Cities, near real-time usage-based insurance and analytics-based predictive asset maintenance to name but a few.

Whatever your industry, Telstra recommends a partner that will take you through end to end implementation. This would start with an initial business discovery session to identify challenges and opportunities for growth and then ongoing help to deliver a plan that includes: 1. identifying the right problem, 2. getting set for a great execution, 3. choosing the right technology, 4. defining the right operating model, and 5. selecting the right partner.

We recommend that you choose any IoT provider that can offer you a wide range of network and platform solutions and can work with you to develop a solution specific to your business needs. Being part of a credible and experienced ecosystem, along with proven ability to scope, implement, monitor and manage the solution, is more likely to deliver a successful outcome. It is also important to assess market options and the capabilities of the players in the IoT ecosystem. Consider the experience of any partners and their track record of implementation.

IoT solutions are far from ‘one size fits all’. The right solution for your organisation depends entirely on your business challenge or strategic goals. While the decisions (and impacts) at each step of the process may appear daunting, they are all made easier with a suitably experienced IoT partner to guide you through the process.

As Telstra’s Director of Business and Enterprise Mobility, Mark Chapman, observes:

“Businesses aren’t just competing locally anymore. They’re competing with the world… That means being cost-effective, being efficient and delivering the best product to your customers that you possibly can. IoT is a way of actually optimising your business to deliver the best outcomes for your customers at the best price.”

As more IoT use cases come to light, we will continue to share with you insights into innovation and competitive advantage from Telstra customers who are adopting a ‘smarter’ business model of the future.

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1.0 Introduction

Telstra has produced this white paper to help you – as a mid-sized business, large enterprise or government organisation – understand the key considerations for your business strategy when looking to implement an Internet of Things solution. Our step-by-step plan includes five invaluable points to help you increase productivity or set your organisation apart from the competition. And while IoT has equal applicability in the home (heated to your preferred temperature for your pending arrival or remote access to appliances to improve one’s lifestyle), this paper primarily explores considerations for IoT in the business context. Key industries embracing IoT solutions are the mining sector, financial services and local government. We are also seeing adoption in the manufacturing, transport and logistics, and retail sectors.

We will explain what IoT is and how it differs from M2M, demonstrate the potential with real world examples and provide actionable information to enable your organisation to exploit the opportunity. This paper will help you identify how you can use IoT to drive innovation and improve service, reduce cost, improve productivity and increase efficiency for your business.

We examine the key technology considerations for IoT as well as looking at the steps to take when planning your IoT implementation or evolving an existing deployment.

But first, what is the Internet of Things?

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2.0 What is the Internet of Things?

Mention the Internet of Things in general conversation, and you’re likely to get widely differing responses. Huh? to aha!

In business, there is a strong movement towards embracing IoT with organisations viewing it as an exciting opportunity with applications that will have a profound and positive impact on every aspect of society.

Telstra believes that IoT is already bringing, and will continue to bring, innovation and disruptive potential to many organisations and existing business models.

So what does IoT involve exactly? At its essence, an IoT solution will include:

• sensors that generate information (e.g. temperature, power usage);

• a communications network (so the information can be shared);

• a central computing resource (for holding and possibly analysing the data);

• and, in some cases, actuators (a type of motor that is responsible for moving a mechanism) that perform control functions under command from the central computing resources.

In other words, information from the sensors is sent over a network to be processed by a computer so that the business knows what is happening and can make better informed decisions. Many IoT applications also incorporate data analytics so that additional intelligence can be gleaned from aggregating large volumes of data generated by small or large numbers of sensors. For example, it’s one thing to know that there is traffic congestion; it’s far more useful to know the cause of the traffic congestion and alternative safe routes that can be used to reroute traffic and convey that directly to drivers.

“When Telstra thinks about IoT, we think about three things: innovation, the network and security. It’s about taking what you do well today and making it better. Whether you want to optimise cost, improve your customers’ experience, or improve a process to make things better for your staff, IoT can solve the problem for you.”

Mark Chapman, Director of Business and Enterprise Mobility, Telstra

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2.0 What is the Internet of Things? (cont.)

2.1 M2M or IoT: what’s the difference?

IoT is the next evolution of M2M technology that brings the power of cloud computing to sensor networks.

Whilst both M2M and IoT involve remote device access, M2M can be thought of as a single point telemetry solution, where a device is connected by a SIM to a service provider’s network (e.g. in the case of smart vending, a telemetry device sending alerts for machine maintenance).

In contrast, IoT includes M2M solutions but extends it further to other ecosystems (e.g. the telemetry device incorporates sales recording, stock management and maintenance and is extended to Enterprise Resource Planning (ERP) and workforce management). IoT connects physical things (devices or humans wearing devices) to the Internet via attached or embedded sensors and communications networks.

For M2M, data is typically generated from a dedicated source for a particular application. This is in contrast to IoT where data can be generated from a variety of disparate sources and used across multiple third party applications via open APIs. IoT is a network of connected devices supported by a platform that brings together the management, analytics and integration of multiple systems and data points into a single system.

IoT solutions are characterised by three specific attributes:

1. The ability to connect devices/‘things’ across multiple networks over a secure link.

2. The ability to measure, monitor and manage devices.

3. The ability to make connected devices relevant to an organisation’s business process flows by integrating with key internal systems (e.g. ERP, HR, CRM, or supply chain systems).

In many cases, an IoT solution contains a fourth component, namely, a ‘response’ to the information provided by the sensors. For example, in a smart building, information sensors may detect people in an area. In response, control software could issue instructions to remotely controlled switches to turn on lighting, heating or air conditioning. This is done in ‘response’ to the initial sensor data received.

Applications of the Internet of Things are not limited to purpose-built systems. For example, the location information provided to the network by every mobile phone can be aggregated and used to provide useful information to drivers on traffic congestion levels or to aid in planning public transport infrastructure.

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2.2 International IoT examples

The changing pace of logistics

‘Fleet management is crucial at the Port of Hamburg, which is the second busiest port in Europe. Its ‘smartPORT’ initiative has raised efficiency and prepared the port for additional growth. The overall goal is to maintain, modernize, and improve the Hamburg Port Authority’s IT infrastructure to support efficient operations and economic development, while minimizing the impact of traffic on local citizens. An IoT-based approach coordinates all aspects of harbor operations impacting ship, rail, and road traffic. So far, the Hamburg Port Authority has installed more than 300 roadway sensors to monitor traffic in the port area and to track wear on bridges. Digital signs and mobile apps give drivers traffic and parking information. Sensors also extend to waterways (using radar and automatic identification systems to coordinate ship traffic), and a solution that integrates roadway traffic data to help manage traffic disruptions that may occur when ship traffic requires bridge closures around the port area’.1

Efficient resource and energy monitoring

‘IoT sensors are ideally suited to tracking all kinds of resources, including petroleum and natural gas, electricity, and water. And IoT technology has strong potential to enable greater environmental sustainability. IoT can reduce waste, prevent disasters, and be a critical component of the smart energy grid of the future. Utility organisations, municipalities, oil and gas companies, and consumers themselves are among the many entities and individuals tapping into IoT capabilities to optimise their use of resources.

Hagihon, Israel’s largest municipal water utility company, is leading the way in using smart devices to improve water-system management, maintenance, and revenue collection in the Jerusalem area. In a semi-arid climate, Hagihon has reduced water loss while preserving the company’s bottom line.

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2.0 What is the Internet of Things? (cont.)

The company replaced a traditional, labour-intensive work model with a smart-technology solution, implementing a mix of both high- and low-tech strategies, and cultivating several key technological partnerships, to increase efficiency and profitability. Pump and in-ground sensors allow easy tracking of water pressure and flow. A supervisory control and data acquisition (SCADA) system controls functions based on sensor data analysis. A geographical information system (GIS) provides a real-time map of current conditions. Fixed acoustic sensors, combined with mobile, cloud, and GPS technology, can pinpoint water leaks underground, while ERP and mobile apps support field technician productivity. This impressive leak detection system has resulted in a significant decrease in overall water loss, and has increased profitability. The system has also improved labour efficiency, with sensors taking data collection that was previously conducted manually. This has generated substantial cost savings’.1

IoT-enabled preventative maintenance on production floor

‘IoT enables managers to understand what is occurring at a given moment in a factory environment – the performance of machines, ambient conditions, energy consumption, status of inventory, or the flow of materials. Preventative maintenance is a key use case of IoT, and this is particularly critical in a production-floor setting. Sensors can alert managers (or machines) that a physical asset in the factory is exceeding acceptable levels of vibration or temperature, is malfunctioning, or is otherwise prone to fail. This has major implications in terms of overall equipment effectiveness (OEE), a key metric of manufacturing productivity, and has positive ripple effects throughout the supply chain.

Continental Tire provides a good example of a connected production floor. The company was experiencing production delays due to misplaced components for tire manufacturing in its enormous plant environments, relying on grid lines painted on the floor and handwritten notes to locate ‘carriers’ (carts) holding sheets of rubber and other tire components. Now, Wi-Fi sensors are placed on carriers and integrated with an inventory management system, so that employees can view individual carrier locations on their mobile devices. These appear as icons superimposed on a map of the facility. As a result, Continental has increased production efficiency, and cut wasted component costs’.1

Major international retailers are already applying IoT data to drive experience and sales

‘Online retailing giant Amazon is once again disrupting bricks and mortar retailing with the Dash Button, a Wi-Fi enabled device that is mapped to specific consumer packaged goods products like laundry detergent. Stuck to a washing machine, all a consumer needs to do when the current supply is running low is tap the button and that generates an order, transaction and delivery of a fresh supply of detergent.

Nordstrom tracks pins on Pinterest to see what products are trending, and uses that on signs in-store to show shoppers what interests their peers.’2

A new era of self-health management – integration of health with large data sets

‘A recent strategic partnership between Philips and Salesforce.com led to the creation of a platform that enables medical devices to operate in conjunction with deep sets of data. The analysis of this data – amassed through electronic medical records, diagnostic information gathered through imaging equipment, monitors and hand-held personal devices – enhances the decision-making powers of professionals and enables patients to take a more active role in managing their personal health. These innovations are transforming not just the care of the chronically ill but those who are and want to remain healthy.

By the end of the decade, this data-rich personalised analysis of our health will become the norm. Individuals will be provided with tailor-made strategies to combat illness and social technologies will enable us to manage our own health. From the data generated, we will learn how to improve our wellbeing and be motivated to take control’.3

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3.0 How important will IoT be?

“The literature abounds with predictions on the value and scale of IoT.”4

McKinsey & Co, 2015

The numbers alone don’t convey the expected impact of IoT. McKinsey says the central finding of its report “is that the hype may actually understate the full potential of the Internet of Things.” However, this comes with the caveat that “capturing the maximum benefits will require an understanding of where real value can be created and successfully addressing a set of systems issues, including interoperability.”

McKinsey puts an upper limit on the potential economic impact of IoT in 2025 of $US11.1 trillion, or about 11 per cent of the World Bank’s estimate of the value of the world economy by that time.

Australian market research company Telsyte forecasts (Telsyte, 2016)5 that spending on IoT home products and services in Australia will grow almost 11-fold in the next four years from $289 million in 2015 to $3.2 billion in 2019, by which time it expects every household to have 24 Internet-connected devices, up from nine in 2015.

The Australian Communications Alliance (Australian Communications Alliance, 2015)6 suggests that the local market for IoT could have a positive impact of $116 billion on the Australian economy by 2025. They suggest there is “opportunity for Australian businesses to become a significant exporter of business solutions by IoT provided the policy and regulation setting can be optimised early to support business-led innovation”.

Deloitte7 (TMT Predictions 2015) predicts that in 2015 one billion wireless Internet of Things (IoT) devices will be shipped, up 60 per cent from 2014, and leading to an installed base of 2.8 billion devices. It says the global market for IoT-specific hardware (which could be a relatively expensive cellular modem, or a much cheaper Wi-Fi chip) is likely to be worth $US10 billion, and the associated services enabled by the devices worth about $US70 billion.

Finally, IDC8 (International Data Corporation, 2015) suggests that 73 per cent of organisations have already deployed or intend to deploy an IoT solution within 12 months.

The volume of commentary around IoT has certainly created a strong level of interest and a review of global commentary suggests that there is a transitory shift to IoT (admittedly more quickly in mature and developed economies such as the US, Europe and Australia than developing nations). Indeed, the IDC research appears to support this shift with 58 per cent of organisations surveyed citing IoT as ‘strategic’ and 24 per cent regarding it as ‘transformative’.

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4.0 Key IoT considerations

If you are thinking of deploying an IoT solution there are five key aspects you need to consider, from identifying the right business problem to selecting the right partner. We explore these in more detail below.

1. Identify the right problem – what are your business’s issues, constraints and growth opportunities? Depending on your business, these may involve a desire or need to:

a. Improve the efficiency of your business operations.

b. Reduce your asset/device maintenance costs and equipment failures (via proactive maintenance).

c. Improve your customer engagement and/or differentiate yourself from your competitors.

2. Get set for a great execution – do you have executive endorsement, consensus on your business issues and opportunities? Are your IoT deliverables aligned with your business strategy, and do you understand the implementation and logistical impacts?

3. Choose the right technology:

a. Device – sensor or microprocessor?

b. Communication network – what do you need? What’s the data rate, coverage, cost, battery life, latency, reliability?

c. Platform – again, consider your needs: reliability, data aggregation and visualisation capability, developer capability, scalability, openness, SIM and device management capability?

4. Define the right operating model – self manage or outsource to a third party with proven expertise?

5. Select the right partner – what IoT ecosystem can they offer? What’s their expertise in scoping, implementing, monitoring and managing a solution like yours?

Each of these areas is explored in more detail in the following sections.

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4.1 STEP 1: Identify the right problem

Identifying and understanding your business problem is the key to developing the right IoT solution

As Telstra’s Director of Business and Enterprise Mobility, Mark Chapman, observes: “Businesses aren’t just competing locally; they’re competing with the world. In order to be effective in that landscape, you’ve got to be doing it as well or better than your competition, not just [the company] next door, but also overseas. That means being cost-effective, being efficient and delivering the best product to your customers that you possibly can. IoT offers a way of actually optimising your business to deliver the best outcomes, at the best price.”

Understanding your business problem is the first step towards developing the right IoT solution. It is best to start with a simple business problem and then look to solving this by improving efficiency, reducing costs or by gaining business insights that help to improve your decision-making. A discussion with skilled IoT experts can help you identify your key business needs and the potential. They will then work with you to scope the most suitable solution. As one solution is implemented and delivers a positive return on investment (ROI), the same model can then be applied to other aspects of the business.

According to the Accenture and Economist Intelligence Unit CEO Briefing 20159 report, From Productivity to Outcomes – Using the Internet of Things to drive future business strategies, (Accenture, 2015): “The vast majority of C-suite executives (84 per cent) believe that their organisations have the capability to create new, service-based income streams using IoT. Despite this, a mere seven per cent have developed a comprehensive strategy and committed investments accordingly.”

A survey of 253 Australian organisations in September 2015 undertaken by Tech Research Asia10 (TRA) (Tech Research Asia, 2015) found that 28 per cent of respondents said they needed to understand IoT better before determining whether a strategy was needed, and 24 per cent admitted to having an ad hoc approach to IoT.

The TRA analysis also showed that “lack of IoT understanding” was ranked the most important obstacle to overcome before embarking on an IoT deployment by 24 per cent of respondents, followed by the “lack of IoT business case” (18 per cent). All of this suggests that there is significant unrealised potential for IoT among Australian organisations.

The TRA data also suggests organisations perceive IoT as a source of innovation and great potential for the business and are looking for examples to help them plan their own IoT activities.

A search of the Internet will offer up many real world examples of IoT implementations – of every kind and across every industry. These can provide inspiration if you are looking to explore how your business can usefully exploit IoT. At the very least, you should be able to translate some case studies, at a high level, into something applicable to your own operations. The challenge then, from an organisational and technical perspective, is slotting together all the pieces to translate the concept into a working IoT system.

There are predominantly six broad use cases for companies to consider for IoT:

• Asset tracking;

• Industrial monitoring;

• Metering;

• Vending;

• Remote maintenance;

• Telematics.

Projects can be typically driven by four key considerations. In other words, the company may want to:

• Optimise operations;

• Reduce cost;

• Enhance customer engagement;

• Differentiate through innovation in the market.

Or any combination of the above.

With these considerations in mind, it is important that all stakeholders in your organisation are clear about the business challenge you face and the inherent value offered by an IoT solution.

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4.0 Key IoT considerations (cont.)

Smart Farming

“Precision agriculture is a leap forward for farmers. Using IoT instrumentation across farmlands, collecting data from various and multiple sources, makes it possible to increase crop yields. Sensors can now be used to monitor crop growth, the soil content, the environment and weather patterns. Align this information with market trends, crop prices, export sales and suddenly the farmer has a rich layer of data insights to work smarter. By smarter I mean he can now focus on where there is likely to be greatest return. It increases productivity and revenues”.

Dr Hugh Bradlow, Chief Scientist, Telstra

4.1.1 IoT in action – real-life customer examples

The applications of IoT are enormously diverse. The following examples have been chosen to give a flavour of the diversity across a range of industries, business needs and commercial strategies. All are implementations in Australia that are providing real, commercial benefits that address a specific business problem.

One of Australia’s founding manufacturing companies, Sutton Tools, embraces IoT for quality control, machine optimisation and reduced maintenance costs.

Sutton Tools, established in 1917 and regarded as one of the founding organisations of manufacturing in Australia, has brought IoT solutions into the organisation to support its high-quality, precision engineering capabilities. The company’s first initiative involved making data from a measurement system available through a web page in near real-time to support high quality product manufacturing. More recently, the organisation has embarked on an IoT initiative involving sensors on its grinding machines to assess energy consumption (a key indicator of optimal machine set-up), oil pressure and other metrics. This IoT solution replaces the company’s previous paper-based process and provides almost real-time machine performance and management data, both of which are critical in optimising machine performance and output quality. Suttons expects to realise benefits of between 10 and 15 per cent by extending grinding wheel life.

Sutton Tools’ Technology Manager, Dr Steve Dowey, explains one of the key benefits of their approach is the ability to apply IoT technology to current machines, thereby maximising machine life and investment: “With this approach we can instrument many machines at once, and with a light touch. We can apply (the IoT solution) to existing machines without significant disruption. There’s tremendous future potential for us – quality control benefits, further optimisation, CNC machine integration…”

“We selected Telstra in the same way Telstra selected us! It became clear that we could work together, as our requirements and outcomes for IoT were aligned with the expertise and deliverables that Telstra envisaged for us.”

Dr Steve Dowey, Technology Manager, Sutton Tools

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Nufarm’s new ways to benefit farmers: better crop quality and yields increase productivity

Nufarm is an Australian-based, global specialist in crop protection and seed technologies and is collaborating with Israel-based firm, Phytech, to introduce their plant monitoring and agriculture analytics system to Australia. This system provides near real-time monitoring via in-field devices connected to Telstra’s mobile network on a range of parameters that allow growers to optimise inputs and make better informed decisions that improve both the quality and yield of their crops.

Nufarm Australia GM Lachlan McKinnon observes: “This leading edge technology is helping growers make timely decisions on how best to manage their crops. This IoT solution represents the innovation and growth that is possible using technology in Australia to set a new precedent for best practice farming. It supports growers by giving them the information to make timely decisions on how to best manage their crop. This is particularly valuable for Australian farmers who work with the inherent challenges of our landscape, with the variability in seasonal conditions… there is a plethora of opportunity across a whole range of crops.”

Improving citizen service delivery and amenities management in the City of Joondalup (WA)

One of Western Australia’s largest local governments has embarked upon an IoT proof-of-concept to provide smart infrastructure and technology-based solutions to its 174,000 citizens. The City of Joondalup started its IoT deployment in early 2016 by embedding a range of sensors in one of its largest coastal parks. The aim is to provide improved services, availability and safety. The wide-ranging initiative is a significant part of the city’s “Digital Strategy” and involves everything from waste management to street lighting, parking, asset usage and management, and logistics (route optimisation and scheduling). The City expects key benefits across three broad areas – cost reductions, improved workplace efficiencies and improved asset management planning.

Joondalup sees IoT as a key source of innovation and competitive advantage, as Jamie Parry, Director of Governance & Strategy, City of Joondalup comments: “Joondalup is fortunate to be home to state-of-the-art research institutes (in areas such as cyber security and engineering, for example), a major health campus, leading international education and training organisations, creative industries and dynamic business clusters. We are already very well-positioned to maximise the benefits of the digital economy and the technological advances that lie ahead; and, in particular, the unique advantage we have through the Joondalup Learning Precinct (comprising Edith Cowan

University, North Metropolitan TAFE, Police Academy and City of Joondalup) to progress digital initiatives in partnership. The City is the driver of innovation and economic growth for the north-west metropolitan region of Perth, boasting one of the largest concentrations of knowledge-based activity in Western Australia and [we] continue to experience growth. We need to be conscious that with digital transformation set to play a key role in government services and operational delivery in the future, government agencies need to reassess their business models and shift towards a more mobile and agile way of business. We firmly believe this project will demonstrate the City’s leadership in digital transformation for the benefit of the wider community.”

These customer examples demonstrate how IoT can be used to provide market differentiation and improve productivity. In the next section, we look at what’s involved in a great execution.

The City had many discussions internally – and with Telstra on this project. The City wanted to:

• Improve business and service delivery; for example, through improved asset management planning and a better understanding of maintenance requirements and the life of assets;

• Increase the City’s competitiveness from an economic and/or marketing point of view; for example, through IoT-enabled push notifications;

• Provide near real-time data to aid decision-making; for example, to assist in determining the location and number of assets in parks.

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4.2 STEP 2: Set up for a great execution

As with any project, strong foundations are essential for a successful outcome. With IoT, this includes getting buy-in from all stakeholders that may be involved – for example, marketing, IT, finance, operations and strategy.

Being prepared for change is critical. The competitive market you’re looking at today may be entirely different next quarter, thanks to the ever-present threat of new market entrants and market disruption. A regular check in with your key stakeholders and strategic deliverables helps ensure continued commitment to the project. A project that can demonstrate strategic importance to both your short and longer term goals has far greater likelihood of succeeding. Adopting an agile business model will give you the flexibility you are likely to need in today’s rapidly changing market.

Implementing an IoT initiative is not dissimilar to other projects in that it’s advisable to understand the impact on logistics and other existing business operations. Having clear and measurable goals will also help you build credibility as you work towards your goal. The resulting ROI will win endorsement for your solution, should you want to apply it to other areas of the business.

“Develop something you have ownership of and create something that you can ‘show and grow’ with tangible deliverables.”

Dr Steve Dowey, Technology Manager, Sutton Tools

4.0 Key IoT considerations (cont.)

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IoT research from Machina11 (Machina Research, 2015) uncovers some important things you should consider before embarking on an IoT project.

For a start, an IoT implementation should be driven by a C-Level executive and not seen simply as an IT or product development project. IoT can significantly transform and change the nature of your business; either by improving your operational processes, enabling new business models with near real-time data, or delivering new customer experiences and engagement models through connected devices and services. Telstra would also suggest that cultural change is required for an IoT solution. C-level support and endorsement will be key to driving this successfully through your organisation.

IT research firm, CIO12, says that many of the early IoT installations were done outside the purview of organisations’ information or operational technology units. They liken the situation to the emergence of ‘shadow IT’ where business units implement IT resources (such as cloud computing) to meet their immediate business requirements, and without consulting the IT department. With IoT too, such independence may cause issues later on – for example, when you try to scale your solution or align to other in-house systems to maximise the opportunities of big data.

Even a cursory investigation into IoT applications is likely to produce a significant number of potential projects, so it’s essential to undertake a preliminary cost/benefit analysis to prioritise these. For the initial projects, ease of implementation should rate highly in the assessment process.

It’s also important to consider your software and application requirements. How easy will system integration be? What resources will be required and can this need be accommodated within your existing business? How will this affect your current operations?

Any solution requires an application. Depending on your needs and budget, this can possibly be purchased ‘off the shelf’ from one of the many vertical applications currently available. Alternatively, it may need to be custom-built to suit your precise need. These considerations and options are made simpler if you engage a capable IoT provider who can work with you to guide you through these aspects of the decision-making process.

4.3 STEP 3: Choose the right technology

Your choice of technology will involve several key building blocks. The foundation blocks need to look at what ‘things’ will be connected – devices and assets such as radio modules, sensors, gateways and smartphones. Then there is a layer that includes access networks and subscription management systems. You need to think about your requirements around cellular, satellite, Wi-Fi, fixed broadband, Bluetooth, RFID or NFC, ZigBee, or perhaps private radio.

On top of this is the layer that’s designed to make the management of your connected services simple and meaningful: this includes everything from device management, to data management, data and visualisation. In this layer, you’ll be able to define your requirements for platform features, firmware, activation, storage, analytics, alerts, query management and dashboard views.

4.3.1 Devices – sensors and microprocessors

Moving towards IoT involves a decision about the hardware and devices you will connect to your access network, the Internet and your backend servers or databases. These devices may include end sensors, RF modules, gateways and firmware. The cost of these IoT-enabled devices will vary depending on the type of device chosen.

Overall, the cost of producing small sensors has fallen by nearly 90 per cent in the past five years13, making it more economically feasible to incorporate them into devices (and thus to enable many new IoT solutions not previously considered possible).

Device cost also has an impact on the type of connectivity you choose. You may be happy with a low-cost option – a 20 cent RFID sticker for tracking a carton, for example – but a high-value piece of machinery may merit a $100 Internet-connected GPS tracker.

We recommend that any IoT devices are tested and certified to ensure optimised coverage and performance. Fewer dropouts and stable device performance can make all the difference to data feeds and the inherent value. Prior to purchase, we suggest that devices are tested under various conditions so you can be assured of a seamless rollout. Are the devices futureproof? How can software updates be effected with minimal ease and cost without removing hardware. What technical support is available if you find that your devices are not operating with optimal efficiency? All of these factors are worthwhile discussing to ensure that short and long term IoT solutions are successful.

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4.3.2 The communication network – your critical link

“Unlike a mobile phone, an IoT device can’t move to get the best reception so network becomes even more important and more critical... the network is pivotal to broad-based, very secure, low latency solutions.”

Mark Chapman, Director of Business and Enterprise Mobility, Telstra

The communication network is a vital component of any IoT implementation, and there are many variations and combinations of technologies available. Your final choice will depend on your particular IoT implementation and your business requirements. The key determining factors include:

• Device and solution availability;

• Scale;

• Level of mobility required;

• Aggregate bandwidth;

• Battery life.

Meshed Wi-Fi solutions are best suited to situations where there is large-scale deployment, relatively low mobility requirements or a large aggregate bandwidth requirement. For example:

• Highway lighting control for a large municipality (lights don’t move and the large number required means that the infrastructure investment can be amortised over a large number of end devices);

• Multiple video stream processing for public safety.

Cellular technology is more cost-effective in situations where the deployment is highly mobile, small in scale or has a distributed bandwidth requirement, for example light control for a smaller city council, vehicle telematics, etc.

A single ‘long distance’ technology such as cellular can be used to connect a large number of sensors and controllers. Alternatively, a short-range wireless technology such as Wi-Fi can be used to connect a number of local sensors to a device that interfaces with a long distance network such as cellular, another wireless technology or fixed broadband.

An example of such a solution can be seen at the construction company, Laing O’Rourke, which is in the process of developing a smart hard hat for their construction workers. The hard hat is fitted with sensors in the headband and a short range ZigBee wireless transceiver. It monitors the wearer’s pulse, temperature and activity level, and the ambient temperature and humidity. The company is looking to realise a number of safety benefits, but its primary aim is the early detection of heat stress, which is often at dangerous levels by the time symptoms become evident. Data from all the hats on a construction site is consolidated in a central unit that communicates with a central monitoring station over 3G cellular networks.

As Nufarm, the global provider of agricultural services commented in relation to farming applications: “The network is absolutely critical to the solution and, given the remote locations of our customers, we need to ensure that whatever we deploy works. Having a lack of connectivity or not being able to get devices on a network can be terminal.” (Nufarm Limited, Global Business Manager Ag Tech Solutions & Disruptive Technologies.)

The choice of technologies is ultimately determined by the IoT application, but here are some general considerations:

• Spectrum for IoT networks: There are numerous options to serve the future spectrum needs of IoT that are being explored globally. In the short term, the most efficient utilisation of spectrum involves integration of IoT needs with that of higher bandwidth demand cellular services.

• Coverage: Determining what coverage you require from your network is a key factor in the success of an IoT solution. If the data cannot be transmitted because of poor coverage, your project’s success is compromised. Considerations to explore include:

– Does your solution require urban, regional or rural coverage?

– Does it need indoor or outdoor coverage, or both?

– Will the devices within your solution be highly mobile or fixed?

These coverage considerations will affect your network requirements and your choice of provider. Many customers choose Telstra for their M2M and IoT solutions primarily for our extensive and superior network.

4.0 Key IoT considerations (cont.)

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• Cost: Communications can be a significant component of the overall cost of an IoT implementation. Over the last few years, the cost per byte of data on both fixed and wireless networks has decreased. Hardware costs have also reduced. One MB of data cost $1 in 2008 and is now cents. As mentioned in the section on devices, hardware costs have also reduced. These lower costs now make it economical to connect a vast array of devices. So while cost may have discouraged IoT adoption in the past, it is now more realistic, making ROI more favourable.

• Battery life: Many IoT implementations require sensors to be deployed in locations without mains power and with limited access, so they may be required to operate for long periods on battery power. Today’s cellular technology is not optimised for such applications, but is evolving to support communications with IoT devices that are able to operate for up to 10 years on an AA battery. The industry has already started rolling out Power Save Mode across LTE and will deliver further improvements throughout 2016 and 2017. Companies need to consider a solution that incorporates the potential to remotely monitor and manage devices in the field to ensure an appropriate charge is available to the device.

• Latency: In many IoT implementations, information provided by sensors is used to control equipment. For example, there are now mines in the Pilbara where iron ore is moved by remotely controlled trucks. In such situations, the delay introduced by the communications network can be significant. Older cellular networks sometimes struggled to maintain low levels of latency and performance. As network technology has improved, the evolution of cellular technology from 3G to 4G greatly reduced these delays. With 5G, presently under development, they will be reduced even further. For some deployments (such as remote temperature management of non-perishable goods in transit), a 50-millisecond delay in a mobile network is not critical. In other scenarios, such as a high-volume, precision manufacturing environment, 50-milliseconds may result in significant quality or process problems. Your organisation will need to consider both the sensitivity of your IOT deployment to network latency and the cellular network performance and coverage as part of your planning process.

As IoT covers a huge range of markets, the most suitable access network will vary depending on each application’s latency, data rate, price, battery life, longevity, coverage and quality of service requirements. Different technologies offer different advantages for different applications.

Direct narrowband connection

Pet or property tracker

Remote plant/process monitoring

Utility meters

Security sensors

Personal communications Fitness trackers

Automotive Remote controls

Asset tracker Health monitors

EFTPOS

Wearable technology

Parking meters

Video security

Packaging or logistics tracker

Direct mobile (or fixed)

broadband connection

3G 4G

Short-range link to

broadband hub

3G 4G

LAN/PAN

Diagram: Depicts some IoT use case and suitable access types. There is often crossover between access types, even more so than depicted here.

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At a high level, access networks for IoT can be considered to fall into three broad categories, where specific IoT applications may be suited to one or more of these:

1. Direct mobile (or fixed) broadband connection

2. Short-range link to broadband hub

3. Direct narrowband connection – low power Wide Area Networks (LPWAN)

Note that there is significant overlap between these three identified segments. For instance, utility meters may be well served by a cellular wireless broadband connection if power is available, and if there is a requirement to provide near real-time pricing information as a premium service. However, in the case of more modest requirements, the meter could instead report summary information back on a daily basis. In this case, a LPWAN device that can be deployed for 10 years – regardless of local power availability and at very low cost – is an alternative.

These three categories continue to evolve as new features and capabilities are added.

4.3.2.1 Direct mobile (or fixed) broadband connection

IoT devices in this category will connect directly to wired or wireless networks via a high performance, high bandwidth link. Current 3G/4G cellular devices are captured in this segment (e.g. smartphones, EFTPOS terminals, connected car systems). This segment is typified by an ability to cope with battery life measured only in hours or by devices wired directly to a power source (e.g. automotive car battery or 240V power supply).

Applications in this category typically have a strong performance requirement (low delay, high throughput, high reliability) and are at higher price points. Telstra services this market today with its existing fixed network and cellular networks.

Telstra LANES® enterprise allows large enterprise customers access to a dedicated partition of LTE spectrum that can connect to Telstra’s public LTE network. This can allow organisations access to a dedicated network capacity in nominated areas. Outside those areas, Telstra LANES® enterprise customers can receive preferential data treatment on Telstra’s public LTE network, where LTE is enabled, above consumers. This can provide organisations with the network capacity they need to help meet their business needs.

Cellular (3G, 4G LTE, 5G)

Cellular technology is primarily used to support IoT solutions requiring direct broadband connectivity. It offers high data rates (faster than 1MB per second), is suitable for video streaming and offers high mobility, which means the devices can be mobile (on road transport container/connected car); however, it’s also rapidly evolving to be more suitable for low power, low cost, long battery life applications.

4.0 Key IoT considerations (cont.)

Access Network Categories

Direct BroadbandShort-range to Broadband Hub

Direct Narrowband

Ideal for services that

Need high data throughput, high reliability or high mobility

Will always be near to other connected devices

Don’t need high throughput or low latency

Key advantages Performance and mobility Performance and battery life Mobility and battery life

Examples 3G, 4G Cat. 1 and Cat. M, WiMax Wi-Fi, ZigBee, Bluetooth 4G NB-IoT, SIGFOX, LoRaWAN

Note: These categories are contextualised throughout the paper

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Cellular technology has many advantages:

• It is globally standardised, which helps to reduce the cost of devices.

• Cellular uses dedicated, licensed spectrum, which an operator can completely control and manage to fairly share the spectrum resource between users. Unlicensed spectrum allows any device to use the spectrum and there is much less control of interference and capacity management, which degrades the performance experience, especially in congested areas.

• Australia is well covered by cellular networks with Telstra’s reaching over 99.3 per cent of the Australian population and covering a land area of 2.4M square kilometres. Our 4G coverage already reaches 98 per cent of the Australian population and will reach 99 per cent by end of June 2017.

• Cellular networks are highly secure; all communication is encrypted.

For all its advantages, cellular technology does have some challenges that are being addressed:

• Cellular cannot always provide universal coverage for IoT applications in industries like mining, agriculture and long-distance transport that require coverage in very remote areas. However devices and connectivity that trades off data rates for power usage also increases the coverage that Cat-M and NB-IoT will be able to work in. For Cat-M we expect this to extend the range of our LTE base stations by up to four. For NB-IoT the coverage extension will be by a factor of up to five.

• In-building coverage can be problematic where sensors/actuators are located deep within buildings; for example, for water or electricity meters. Telstra WCDMA 850 and LTE 700 penetrates deeper into buildings and also improves rural coverage. Additionally, standards bodies are working on a new technology referred to as Narrowband IoT (NB-IoT) to enhanced coverage for devices that do not need fast data speeds. As they also extend the coverage range, this will also improve in-building penetration. Telstra expect to deploy this technology in November 2016.

• Terminal devices for cellular networks are complex and therefore costly. This will change with the introduction of new technologies in 2016 and 2017. NB-IoT has been designed to significantly reduce device complexity and therefore price point. It’s important to note that production scale has a greater impact on device price point so it’s essential to minimise fragmentation in IoT solutions as much as possible.

• Power requirements for terminals are high, making today’s cellular technologies unsuitable for applications that require terminals to operate on battery power for long periods. New 3GPP network functionality will massively increase device battery life (more than 10 years, depending on activity/application type).

Satellite

The great advantage of satellite for IoT is that one network can be used to communicate with static or mobile devices almost anywhere in the world. The disadvantage is that the antenna on the remote device must have direct line of sight communication to the satellite(s). There can also be issues in cities where tall buildings shadow the sensors. Satellite solutions also tend to be power intensive and expensive, making them unsuitable for many smaller IoT solutions. Lastly, satellite solutions can have a high latency, which can be an issue for some IoT applications.

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4.3.2.2 Short-range link to broadband hub

Another connectivity category is defined by IoT devices that leverage ‘nearby’, broadband-connected gateways to obtain a mix of reasonable battery life and moderate performance. Examples of this in the market today are wearable devices that use Bluetooth/Wi-Fi to connect to a cellular smartphone (acting as the gateway) or devices using Wi-Fi or ZigBee to connect consumer whitegoods and appliances to Internet-connected ADSL/Cable/NBN gateways. This category also includes mesh networks such as those used in smart metering projects. Devices using these types of access networks may be able to leverage moderate data speeds to provide rich user interfaces or audio streaming and will be able to provide relatively near real-time transactions. Devices may also have a reduced cost due to lower modem complexity and transmit range; shorter ranges will typically translate to improved battery life compared with a direct broadband connection.

Wi-Fi

Wi-Fi is a low latency, broadband, short range (10 to 100 metre) wireless local area network (WLAN) technology. It follows the global IEEE 802.11 standard with equipment certified by the Wi-Fi Alliance. Wi-Fi has become one of the most pervasive networking technologies in history and is used in homes, businesses, factories, smartphones, tablets, computers, whitegoods and numerous consumer electronic devices. Wi-Fi uses a contention-based algorithm to access unlicensed spectrum in the 2.4GHz and 5GHz bands.

This enables low-cost deployments but performance can be impaired by uncoordinated interference from other users’ devices and gateways.

There are several versions of Wi-Fi with different throughput and mobility capabilities. One of the latest versions of Wi-Fi is 802.11ah (also called Wi-Fi HaLow) which is designed to better support the Internet of Things. It is expected to be standardised in 2016 with common availability of devices by 2018. Wi-Fi HaLow is expected to double the coverage of existing Wi-Fi solutions and, in some instances, reach 1 kilometre.

IEEE 802.15.4 (technology – ZigBee, WirelessHART, 6 LoWPAN)

Most mesh-based approaches in the market today are based on IEEE 802.15.4, and can generally be classed as narrowband links to a broadband hub. While not meeting many of the LPWAN attributes, this technology is worthy of comparison because it is already a widely deployed IoT technology and represents an alternative to using LPWAN networks, albeit with some limitations.

The 802.15.4 standard only defines the physical layer and media access control layers: for instance, it does not enable IP connectivity between end points without the implementation of additional layers. Higher layer stacks built on 802.15.4 include:

• ZigBee Alliance Platform, typically used in short range applications or where mesh networking is required;

4.0 Key IoT considerations (cont.)

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• WirelessHART, typically used in industrial control and process automation applications;

• IETF 6LoWPAN, which enables direct IPv6 transport over 802.15.4, providing IP-based routing/meshing for applications.

This list is not exhaustive, and there is also a range of proprietary network technology stacks used with 802.15.4, especially for closed ecosystem deployments. Furthermore, there are a number of variations on the base standard (802.15.4a/c/d/e/g, etc.) for various applications. For instance, Wi-SUN Alliance promotes the use of 802.15.4g for smart metering applications.

In some ways, this ecosystem fragmentation has slowed widespread deployment of 802.15.4. Although the base standard has existed since 2003, with an update in 2006, there has been no clear cut choice of higher layer stacks to pair it with.

4.3.2.3 Direct Narrowband Connection – Low Power Wide Area Networks (LPWAN)

Applications and devices using this type of connectivity are typically intended to be installed for a long period of time (years to decades) and so are extremely sensitive to battery life. However, they are generally not sensitive to performance and instead require regular but low-speed communication, ranging from hourly intervals to daily or even longer. In addition to lower throughput performance requirements, these devices typically do not require real-time interaction and may tolerate latency delays of hours. These devices are expected to be at a borderline ‘throwaway’ price point, to be cheaply and easily embedded in any device. Devices in this segment are also likely mobile, or installed in ‘unplanned’ locations, such as basements or deep inside warehouses. Recently, several new companies have gained a lot of attention as they have pushed their LPWAN technologies to serve IoT applications.

LPWAN (Low Powered Wide Area Network) is a generic term covering a number of new wireless technologies developed specifically to serve IoT scenarios needing wide area coverage. While NB-IoT is a form of LPWAN, a number of LPWAN offerings are fully proprietary. Some such as LoRa and SIGFOX have the backing of multiple technology companies that have formed their own standards groups; however, it is still early days and many are yet to build ecosystems. Some require dedicated licensed spectrum. Others operate in shared bands. It is worth noting that NB-IoT (standardised by 3GPP – 3Rd Generation Partnership Project) is backed by the global scale of the cellular mobility industry and is likely to develop efficiencies of scale and technology certainty unmatched by other options.

Advantages of NB-IoT

• Good support for low data rate devices;

• Good in-building coverage;

• Support for devices with very long battery life;

• Wide area coverage at low power;

• Low cost chipsets;

• Low power base stations can be deployed by customers.

Disadvantages include:

• Some LPWAN technologies are controlled by start-up ventures whose futures are uncertain;

• LPWANs that do not use licensed spectrum will always run the risk of being affected by interference from other spectrum users;

• Requires deployment and ongoing management of dedicated radio infrastructure rather than making use of existing cellular network coverage. This may include the capital intensive task of building new towers, huts and backhaul equipment over time to provide a coverage footprint;

• Many non-3GPP LPWAN technology ecosystems are still at an early stage of development and are yet to (and may never) reach the large economies of scale provided by the 3GPP compliant technologies;

• Several proprietary LPWAN technologies have one or few suppliers, creating a lock-in risk;

• Sunk investment in technology that will not meet business needs long term;

• Cost of migrating or redeploying to new technology in future. With IoT there are potentially large numbers of devices so moving down a technology dead end could prove very costly.

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To better support IoT applications, 3GPP is extending the LTE standard (4G) by introducing new capabilities to optimise it for IoT applications. Work is underway on 4G LTE variants for IoT, known as Category 1, Category M and NB-IoT devices.

The naming convention for these devices may also show Category M1 which is interchangeable to Category M, and Category M2 which is the same as NB-IoT.

Features in these devices focus on reducing complexity (thus modem cost) and extending battery life through the use of a new power savings mode. Category M and NB-IoT devices will also extend battery life and reduce cost, but they will also improve device coverage by supporting a lower data rate. We expect Category 1 devices to become commercially available in Australia around the end of 2016. These will be suitable for many IoT applications such as utility networks, alarm monitoring, video surveillance, etc.

3GPP are also working to extend the LTE standard to support low capacity IoT devices operating on batteries for up to 10 years without recharge.

By end June 2017, Telstra’s LTE network will cover 99 per cent of the population and will support specialised IoT category devices. This network already supports Category 1 devices and we will introduce Category M and NB-IoT capability by the end of 2016. Beyond 4G enhancements and NB-IoT, requirements for IoT will be incorporated into new 5G cellular standards from the outset.

Category M devices will support up to four times coverage improvement, while NB-IoT will increase coverage by up to a factor of five.

4.0 Key IoT considerations (cont.)

Source: Telstra Propriety

The evolution of cellular technology for LPWAN (4G LTE Cat. M and NB-IoT)Cellular Technology Roadmap – 4G Device Types

Today Future

Expensive Inexpensive

High speed Low required speed

Connected device volumes

150Mbps download

Connected carvideo surveillance

Cat. 4

10Mbps download

Remote video surveillance

Cat. 1

1Mbps downloadPump control,

business or home fuel tanks, vehicle telematics,

container trackingCat. M

0.2 Mbps downloadParking meter

monitoring, gas & water metering, water leak

detection; pallet asset tracking, street lighting,

agricultureNB-IoT

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As of the start of 2016, products supporting these enhancements to LTE are not presently available in Australia. A number of cellular network operators around the world are rolling out large-scale, low powered wide area networks (LPWAN – see below) to meet immediate requirements for IoT connectivity and counter competition from newcomers operating LPWAN networks. Category 1, Category M and NB-IoT devices will be coming into the market around the end of 2016 with the device range being broadened in 2017.

4.3.3 Application and platform considerations

While devices and networks are important, your IoT solution will not be complete without a properly implemented application and IoT platform infrastructure. Below we list some key areas we advise customers to review when it comes to implementing IoT applications and platforms.

4.3.3.1 Security

Security is always of paramount concern in any network. IoT has the scope to connect a significant number of potentially vulnerable devices to your network so it is imperative to consider network security, data security and the security of your end points.

Concern with security is widely seen as the number one issue holding back IoT. This apprehension is often focused on IoT comprising of no-compute and low-compute devices that do not have the computing power, storage or memory to be able to run traditional mechanisms to secure the device (such as firewalls, intrusion prevention systems and encryption keys). It is for this reason that security has topped the list of factors most important to IoT considerations in the Tech Research Asia survey10.

What is seen to set IoT apart is the vulnerability of the devices. The sheer volume and variety of devices will increase the number of potential avenues for unauthorised network access. As well, the demand for large volumes of devices will drive down costs and security features are likely to be minimal. For all IoT initiatives and network deployments, it is important to consider device certification and management as part of the solution capability.

While the concerns are real, the problems are not insoluble. A report from Security Newsdesk14 (Security Newsdesk, 2015) notes: “The Internet of Things can be secured. The technology exists to build a robust, secure, effective and powerful IoT. Digital signatures for software and systems, encrypted communications and storage, robust authentication, secure software development practices – the tools are available for everyone to use.”

Preparing your business for the 2G/GSM network shut down

• Many major telecommunication companies around the world (including Australia) will be switching off their 2G networks very soon. After over 20 years of continuous operation, Telstra has publicly announced that we will be switching off our 2G network on the 1st December 2016.

• As Telstra’s 4G coverage grows, the idea of leapfrogging 3G altogether and going with a pure 4G/LTE only solution or a solution that is 4G/LTE with 3G fall back is recommended as the most sensible path for a majority of solution providers upgrading from 2G.

• While 4G LTE modules are currently more expensive than 3G only modules, a move direct to 4G (Cat. 4 and Cat. 3) LTE provides the certainty of a longer module lifetime and prepares you to leverage the new lower cost Cat. 1 and Cat. M modules when they become available with many module suppliers using compatible footprints.

• Telstra supplies a list of Telstra certified devices and modules.

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However, many IoT implementations are insecure. With the pressure to achieve a short time to market, the devices not having the computing capability to support a security stack, a rich set of features, and greatest ease of use, security may take a back seat.

Security Newsdesk suggests several ways to ensure an IoT implementation is secure, starting with “Make security part of your requirements – and part of your purchase decision. Do not purchase systems or components unless they include robust security. If buyers make security a requirement – a real requirement, not a goal that can be over-ridden – IoT suppliers will deliver secure products.”

As more and more devices connect to the Internet (Internet of Things), there has been a need to provide a security mechanism to protect these devices from attack. One of the biggest issues with IoT is that often these devices have very low compute capacity to be able to store or run security protection programs (e.g. firewalls, IPS, etc.) and/or encryption.

A potential solution to the IoT security problem is to use blockchain technologies. What is blockchain? A blockchain is a distributed ledger (or database) of digital information that is shared between different parties, that cannot be deleted. It is a chain of blocks (or data). Each block contains a hash of the previous block (from the originating block which would hash the data source) to the current block. Because you are hashing the previous block, it keeps chronology, chain of custody and security of the data and publishes it to all nodes (also known as consensus).

The use of blockchain technologies to provide cryptographic data integrity means that security can be applied to low compute devices (IoT) because the hash is very small (compared to trying to store traditional certificates or security programs); is not susceptible to key related attacks (e.g. quantum computing attacks against key length, rolling back system time attacks, etc.) and is not reliant on the transmission method for security (the blockchain verifies against tampering, not the network).

Telstra is investigating the use of blockchain technologies against a number of use cases including Connected Home and Connected Car among others.

4.3.3.2 Scalability

Scalability has a number of dimensions that organisations should consider:

• If devices are widely distributed, what provisions are in place for their installation and for any hands-on maintenance required?

• If there are many devices producing large volumes of data, are the communications resources and processing resources adequate?

• Does the technology enable a very large network of many devices to be managed without administration being overloaded by information?

• What is the future roadmap for the IoT platform, the network technologies that provide the connectivity (such as 5G) and the management and analytics capabilities?

4.0 Key IoT considerations (cont.)

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4.3.3.3 Openness

Openness is a critical factor for organisations to assess. The very nature of IoT suggests an ever-growing range of devices, services and platforms is interconnected to drive value for the business. In this environment, being locked-in to a vendor’s proprietary and closed solution can retard the effectiveness and longer-term viability of your company’s IoT solution. Far better to have freedom of choice with your devices, technology and partners so you can extract maximum value over the lifetime of your IoT initiatives.

4.3.3.4 Connectivity management

Connectivity management platforms of an IoT solution typically look after connectivity authentication and access network billing. Traditionally, these platforms were only accessible via the network provider. New platforms now allow customers direct access and visibility, allowing them to activate and enable their devices as required. It is worthwhile exploring what options are available.

Some connectivity management providers have built their own connectivity management platforms while others have partnered with specialist providers who service many telecommunication companies across the world to provide this functionality. Telstra has a successful five-year partnership with Jasper, a global platform provider in this area to fulfil customers’ requirements for subscription management.

Key questions you should ask about a connectivity management platform include:

• What self-service tools for SIM provisioning are available?

• What usage controls are available?

• Does it offer the ability to set business rules and alerts?

• Do you require visibility of the data that the SIMs are using?

We recommend you choose a credible partner in this space that can offer proven capability and customer testimonials. You’ll also want ease of use, ongoing upgrades and different user access layers. This key component of your solution will help you and/or your customers to drive efficiency and deploy faster.

4.3.3.5 Application Enablement Platforms

The IoT Application Enablement Platform (AEP) is a layer that simplifies implementing and developing IoT solutions. The core value proposition of these AEP platforms is to ease messaging, device management and data collection activities of any IoT solution. Instead of your company having to waste time and effort building many features, these IoT enablement platforms provide ready-made software tools and services that are able to scale to the needs of millions of devices.

We recommend a platform that allows application independence from the access network and/or device. This speeds up application development and deployment, and also prevents vendor lock-in if you ever want to swap out the device or application. Some considerations may include:

• Does the platform work across multiple access network technologies?

• Can you remotely update device firmware?

• Can you set device thresholds and alerts?

• Does the platform provide open RESTful APIs (representational state application programming interfaces) whereby software components capabilities and assets inside the enterprise can be easily combined with assets and capabilities outside the organisation to maximise integration and scalability?

For simplicity, we believe it is easier to have both the subscription management and service platform with the same provider. As evidence of commitment to this approach, Telstra has entered into an exclusive partnership with Cumulocity and will launch the Telstra IoT platform for the purposes of application development and device management.

4.3.3.6 Reliability

This is an important consideration for any mission critical solution such as those deployed by emergency services, but is also crucial for others (connected traffic lights, lone worker, etc.) Ask yourself:

• Does your solution require high message integrity (quality of service) in terms of delivery?

• Is delivery critical (e.g. smoke alarm)?

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4.3.3.7 Data aggregation capability velocity/volume/variety

IoT will invariably result in large amounts of data. It’s important to understand upfront how this data can be used to help you drive efficiency, improve the service you offer or reduce costs. Data management, data governance, storage and quality are all worthy considerations. There are service platforms available for the primary purpose of Big Data Analytics, so you can improve decision-making, operational efficiency and the customer experience. Big Data service platforms allow you to bring the acquired data together, manage the data and analyse it. Key considerations include:

• Do you outsource this aspect to a third party (and use cloud storage) or opt for self-management?

• How secure does your data need to be (in flight and at rest)?

• What volume of data can you expect?

• How quickly is the data arriving (velocity)? (This may be one device sending lots of data, or many devices sending small amounts)

• What are the different types of data you will be transmitting? Will it be simple numbers or blocks of content? Data comes from various different sources and sensors and needs to be managed appropriately to drive benefit.

4.3.3.8 Data and analytics, and data visualisation

The Internet of Things can provide business benefits through analysis of the data that a network of sensors provides, as opposed to responding to specific data.

Pivotal argues that IoT is introducing new realities in terms of how data is created and used, and how organisations can harness these opportunities for innovation. The three key facts include:

• IoT data is distributed – the nature of connected devices puts data creation on numerous systems;

• IoT data sets will grow – as more sensors are deployed and more data is created, IoT data usage will change;

• Use cases for IoT are just beginning to emerge and will evolve.

Pivotal says: “As sensors connect more devices, the importance of gaining near real-time views of IoT data may equal the imperative to collect data for longer-term analysis, trend detection and predictive modelling.”

On a decision-making front, consideration needs to be given to the need for near real-time processing. What decisions do you plan to make, based on the data coming through? Will the data be used for historical analysis or do you need to change a process in real-time as the data arrives? Near real-time data capability and the power of the data is the essence of IoT disruption.

“Nufarm has a major focus on innovation, particularly in terms of delivery. Historically, that has been around formulation and packaging innovation but IoT and Big Data is now a natural progression. Big Data in agriculture is cutting edge. Nufarm wants to remain progressive to our customers and it will allow us to give our customers a competitive advantage in terms of providing farmers the yield, efficiency and ability to be more profitable in a competitive global market. If we don’t innovate, we lose our competitive advantage.” Nufarm Limited, Global Business Manager Ag Tech Solutions & Disruptive Technologies.

Cisco Systems Inc. says that the greatest value from IoT will be realised by those who focus on improving their data capabilities (integration, automation and analysis) and overall process agility – not those who simply connect the most devices to the network – and that there is widespread understanding of the importance of data in IoT implementations.

Cisco15 reports the results of a survey (Cisco, 2014) of 1,230 executives from around the globe. When asked: “Which areas do you need to improve the most to make effective use of IoT solutions?” making better use of data was ranked highest, by 40 per cent of respondents. ‘Process’ was ranked second (27 per cent), ‘people’ third, and ‘things’ last (13 per cent).

“Data is at the heart of IoT. The key is taking the data, often in unprecedented volumes for a business, and using the analytics and insights to think and act differently about an operation. It’s exciting. It will change the playing field for business owners across this country.”

Dr Hugh Bradlow, Chief Scientist, Telstra

4.0 Key IoT considerations (cont.)

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4.3.3.9 Developer capability

Another consideration when looking at IoT applications and platforms is the developer skillset required to both implement and maintain them. An off-the-shelf, end-to-end IoT solution is likely to require little in developer resources, while developing a solution from scratch or customising a solution from IoT technology components will require either internal or external developer resources. Secondly, where developers are required, do they have the necessary knowledge and skillset for the selected IoT platforms and technologies being used in the solution? At a high level, good questions to ask in this space are:

• Are you going to purchase an existing IoT solution?

• Are you going to build your own solution or customise an existing IoT solution?

• Do you have developer capabilities to suitably resource and execute? Alternatively, are you going to outsource someone else to build your solution?

• Once built, do you have the necessary skillset in your organisation to run and maintain the IoT solution?

Factors affecting these decisions include: time to implement, cost, resourcing and project management skills.

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4.4 STEP 4: Define the right operating model

The most suitable operating model for your business needs to take five key questions into consideration:

1. How will devices and assets be managed in the short and longer term? Do you have the resources and capability to take this on? What platforms and partnerships are available to make this step easy and keep your core business needs at heart? Will the platforms available be suitable for your business requirements?

2. How will your field services be managed? From time to time, sensors or connected devices may require repair or some level of maintenance. It is worth considering if this aspect of IoT is feasible and realistic under your current business model. Alternatively, what options are available to outsource this function as part of a premium business proposition?

3. What analytics and data services are available to help you manage your IoT solution? The volume of data can be significant and making it relevant to your business decisions is key. What are your requirements for secure storage of the data? What support if any, will you require around data analytics? Data analytics can range from basic visualisation to complex frameworks where multiple data sources and large volumes of data are collected. If it’s worth collecting, it’s worthwhile using it to reach your end goal.

4. What level of data and network security is required for your IoT solution? Whether it’s your business data or your customers’ data, data security is key. Any compromise on data security can ultimately jeopardise your brand and customer experience. (See also section 4.3.3.1.)

5. Do the applications available to you meet industry best practice? Any applications should be assessed to make sure they are suitable in the short and long term. Are they capable of being developed to accommodate additional business needs? Do they offer scalability, open APIs, and do they allow for easy integration of a large range of devices?

Once an IoT project has been identified, choices need to be made as to the appropriate technologies and partnerships. At one extreme, a completely bespoke solution could be created by assembling the sensor/activation technologies, the software and the communications services. At the other extreme, the entire project could be outsourced to a turnkey solution provider. This will depend on your resources, skills, funding, timeframe constraints and goals.

4.5 STEP 5: Selecting the right partner

From both a design and implementation perspective, IoT solutions can be complex and require considerable thought and effort from an organisation. We would recommend that businesses look to third parties and work with them to identify, define and construct a solution and determine what development platform is most suitable. The third party should be able to demonstrate:

• A proven capability and cross vertical expertise in all areas of IoT design, deployment and ongoing management;

• A partner ecosystem that aligns with your corporate goals and strategic direction;

• A genuine commitment to your end goal and objectives;

• A proven history in the field e.g. a long history of participation in the field of telematics, M2M and IoT;

• A demonstrable commitment to the ongoing evolution of IoT infrastructure and development – devices, networks, etc.;

• A vision beyond the cellular aspect of IoT;

• An open approach to collaboration and shared goals.

4.0 Key IoT considerations (cont.)

SIM, device and asset management

Differentiatefrom the

competition

Improve yourcustomers’experience

Reducecosts

Increase businessef�ciency and

productivity

Platformscalability,openness,reliability

C-levelendorsement and strategic alignment

De�necustomisationand partnerengagementrequirements

De�ne andagreebusinessproblem Determine application,

connectivity and datamanagement requirements

Assessresources and

capability

Selecttechnology– network,

platform,device

ROImetrics

Datamanagement,

storage,analytics andvisualisation

(optional)

Navigating IoT Transformation

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5.0 Conclusion

We hope the examples we’ve provided have sparked some ideas as to how you can apply IoT to your business.

We recommend following five key steps when planning an IoT implementation:

1. An internal review of your business issues and opportunities to identify which problems can be solved with an IoT solution. IoT solutions can help improve the efficiency of your business operations, reduce asset or device maintenance costs, minimise equipment failures and improve asset efficiency. IoT can also help you engage more deeply with your customers and differentiate your business offering from competitors.

2. As well as identifying the right business problem, it’s important to develop the right business model. This includes seeking cross company engagement and alignment with key stakeholders, working with an agile business model to accommodate ongoing business changes and align with your corporate strategy (both short and long term). Provided the project delivers on ROI, executive endorsement increases the likelihood of project sustainability.

3. The next step is to assess the various technology options and work out which best suits your needs. You will need to consider and decide upon a number of key elements:

a. Device type(s).

b. Technology considerations such as coverage, cost, battery life and latency.

c. Access network options, ranging from direct mobile broadband to direct narrowband.

d. Application and platform considerations should include a review of data aggregation capability, scalability, openness, reliability, and data analytics and visualisation options.

4. Security is key from both a data and network perspective. It’s important to ensure that the solution is developed with the right operating model in mind, and considers ongoing device and asset management, field support for device repair and maintenance, data storage, analytics and management, and the use of leading edge applications. Getting the fundamentals right from the outset is critical as IoT solutions normally start on a smaller scale and grow as success is demonstrated.

5. While these decisions may seem complex, they are made easier with a suitably qualified and experienced IoT solution provider at your side. There is no ‘one size fits all’ option and selecting the right IoT partner can make all the difference between smooth sailing and a daily headache. Our experience is that leading IoT experts skilled in implementation and project management will make your transition to a ‘smarter’ business more seamless.

Whether you are just starting an IoT journey or looking to scale and diversify an existing solution, Telstra is well placed to help. We offer connectivity on Australia’s best networks; enterprise-grade security for your peace of mind; a world leading partner and technology ecosystem to bring you the best solutions; and a world class ‘one Telstra experience’ product suite supported by end-to-end design, execution, implementation services.

Now’s the time to start planning, innovating and disrupting. Make the first step today and contact your dedicated Telstra Account Executive for everything IoT.

For more IoT related white papers, please go to: https://www.telstra.com.au/business-enterprise/solutions/machine-to-machine

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6.0 Appendix

6.1 Why Telstra?

Telstra’s team is passionate about helping organisations implement IoT solutions that address specific needs and allow businesses to thrive.

Our end-to-end IoT capability offers:

1. Multi-network access across a wide range of technology options

With Telstra, you benefit from connectivity on Australia’s best mobile network. Our unsurpassed mobile network coverage is married with a robust security model that ensures your IoT solution is always connected.

• We offer a range of connectivity options including cellular (3G/4G), Wi-Fi, satellite and fixed line options such as NBN and ADSL.

• The Telstra Mobile Network is the largest mobile network in Australia covering more than 2.4M square kilometres (more than 31 per cent of the Australian land area is covered) and over 99.3 per cent of the Australian population, NB-IoT will extend this further, increasing the range of our base stations by up to five times, and also allowing deeper access within buildings.

• 4G Coverage: Telstra offers the largest 4G coverage area of any mobile network, reaching 98 per cent of the Australian population. Telstra has more than 6,000 4G-enabled sites offering 4G speeds in all the capital CBDs, many suburban areas and over 600 regional towns across Australia today. This coverage area is set to increase considerably as we roll out NB-IoT in the later part of 2016.

One key advantage is our ability to be network agnostic – we can provide expert advice on which network or combination of networks is best for your application.

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2. Security and peace of mind

Security is of paramount concern in any network. IoT has the potential to connect a significant number of potentially vulnerable devices to your network, so network and data security is usually a priority. Telstra offers you peace of mind across the following areas:

• Telstra is leading IoT security in evaluating data integrity and chain of custody using blockchain technology. So far, the testing has shown the ability to sign a configuration and prevent tampering.

• All external entry points into the Telstra Mobile Network are firewalled and Telstra’s IP Wireless products are certified to ISO27001:2005 standards. Surveillance audits are completed every six months.

• Physical access to exchange equipment is via electronic cards progressively needed throughout the exchange. Telstra recommends that customers use a VPN client that encrypts any sensitive data transmitted across our networks for additional security.

– Telstra continually monitors and reviews potential network security threats to ensure the privacy of our customers is protected at all times.

• Telstra is investigating in-home security technologies to ensure that the home network connected to a Telstra service is secured (relevant to business with the convergence of IoT solutions across home, personal and enterprise).

3. Holistic ecosystem delivers a seamless IoT experience

We offer a world leading partner and technology ecosystem to bring you the best solutions and a seamless ‘one Telstra’ experience.

• We have almost a decade’s experience in providing M2M services to our customers, with over 1 million services.

• A valuable five-year partnership with Jasper for SIM management of connected services.

• We have recently signed an exclusive 2-year agreement with Cumulocity to deliver a Telstra IoT platform for application development and device management.

• Winner of the Frost and Sullivan Asia Pacific M2M Service Provider of the Year award in 2014 and 2016 (Best Practices Award) for our extensive product portfolio, ability to offer innovative solutions and outstanding M2M performance.

• Our experience of international markets and technology partners means Telstra can bring you the most effective combination for your IoT solution.

“Telstra offers a variety of connectivity options so the solution can be tailored to the needs of each business. We have a range of partners to facilitate the IoT scope, build and implementation. We have every capability in the technology stack necessary to build a solution that will work for each business to drive the outcomes they want to see.”

Dr Hugh Bradlow, Chief Scientist, Telstra

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6.0 Appendix

4. Proven experience in end-to end design, execution and implementation

For telematics and fleet management applications, we’ve partnered with suppliers to deliver solutions that can track vehicles and products, estimate arrival times, and provide wireless time and date stamping, with near real-time visibility of vehicles via GPS satellites and the Telstra Mobile Network.

You also gain access to Telstra’s dedicated IoT team who, in turn, can give you access to equipment manufacturers and application developers.

Through the Telstra Mobility Partner program, we’ve teamed with leading suppliers of IoT hardware and systems integrators to enable us to provide you with an IoT solution that minimises the number of stakeholders you need to deal with, and reduces complexities and integration challenges.

5. In-house depth and breadth of experience to ensure your needs are met

At Telstra we have the expertise to help you design, build and deploy an IoT solution. Telstra has industry leading, professional capabilities that can make your IoT journey a smooth and productive one:

• We provide a wide range of connectivity options to allow you to choose the most appropriate combination to connect to your IoT service and the cloud.

• We understand the importance of not being locked-in to a specific vendor or technology capability, which is why we strive to have open, flexible solutions to ensure your IoT capability can always keep you innovative, even as the market evolves.

• We have a range of partnerships to meet all your IoT needs: Jasper for SIM management platform, Cumulocity for IoT platform capability (current exclusivity in Australian market) and Pivotal for big data solutions.

• We have proven capability in sourcing key strategic partnerships globally and bringing best-of-breed partners to solution design and implementation.

We offer consultancy services that can identify where and how IoT solutions can be used to address your business needs and aspirations. Our understanding and experience with the critical IoT technologies (including devices, security, wireless networks, cloud and big data) combines perfectly with our consultancy services to assist you to automate and streamline your business operations, help drive business efficiencies through near real-time connectivity and bring a ‘smarter’ focus to you, your business and your customers. We start with a discovery session where we look with the fresh eyes of outsiders at your operations and make recommendations on how your business can incorporate the latest IoT technology. We can then facilitate deployment, from concept to rollout, hardware provision and application management, solution partners and experience spanning over 10 years in proven M2M capability.

“Telstra has demonstrated a high level of commitment, and passion, to the project through the provision of expert advice and access to its consultants to assist in scoping and development. I’ve not worked with a third party (Telstra) to such a great degree like this before.”

Director of Governance & Strategy, City of Joondalup

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6. In-depth testing and device certification

Telstra performs in-depth testing on all cellular devices that we sell. You can be confident that our IoT devices will work under various conditions because of our comprehensive test scope including lab and real-life scenarios in the live network.

We also provide accreditation for qualified devices that meet Telstra standards. If the device works properly on Telstra’s network, you can be assured of an exceptional user experience. Your business can operate smoothly with fewer dropouts and more stable device performance.

You can also enjoy the following benefits from a Telstra certified device:

• Devices are able to have an effortless software update with no need to pull hardware from the field;

• Better ROI on the devices, with Telstra working hard to ensure optimal efficiency, performance and battery life when operated on the Telstra network.

Note: We do not currently offer IoT devices. Testing and certification is work in progress. We anticipate that IoT devices will be available for purchase from Telstra in the later part of 2016 or early 2017.

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7.0 References

1. http://www.dpdhl.com/content/dam/dpdhl/presse/pdf/2015/DHLTrendReport_Internet_of_things.pdf A collaborative report by DHL and Cisco on implications and use cases for the logistics industry, 2015 Pg.8

2. Formerly available at: http://www.comqi.com/internet-things-reinventing-retail/ How the Internet of Things is Reinventing Retail; Position Paper, July 2015

3. http://www.philips.com/a-w/innovationmatters/blog/how-the-internet-of-things-is-revolutionizing-healthcare.html Homepage: Innovation that matters to you

4. McKinsey & Co. (2015, June). Insights & Publications. Retrieved from Unlocking the potential of the Internet of Things: http://www.mckinsey.com/insights/business_technology/The_Internet_of_Things_The_value_of_digitizing_the_physical_world?cid=other-eml-alt-mgi-mck-oth-1506

5. Telsyte. (2015, August 10). Telsyte News. Retrieved from www.telsyte.com.au: http://www.telsyte.com.au/announcements/2015/8/10/australian-iot-home-market-to-reach-32-billion-by-2019-embedding-smart-technology-into-everyday-life-1

6. Australian Communications Alliance. (2015, October ). Retrieved from http://www.commsalliance.com.au/_data/assets/pdf_file/0009/50967/Enabling-the-Internet-of-Things-for-Australia.pdf

7. Deloitte. (2015). Technology, Media and Telecommunication Predictions 2015. Retrieved from www.deloitte.com/: http://www2.deloitte.com/au/en/pages/technology-media-and-telecommunications/articles/tmt-pred-the-iot-is-things-not-people.html

8. International Data Corporation. (2015, September 22). Retrieved from https://www.idc.com/getdoc.jsp?containerId=prUS25923515

9. Accenture. (2015). Accenture and Economist Intelligence Unit CEO Briefing. Retrieved from https://www.accenture.com/t20150527T211103__w__/fr-fr/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Local/fr-fr/PDF_5/Accenture-CEO-Briefing-2015-Productivity-Outcomes-Internet-Things.pdf

10. Tech Research Asia. (2015). IoT and Enterprise Views in Australia. Oct.

11. Machina Research. (2015, July 16). LinkedIn. Retrieved from https://www.linkedin.com/pulse/enterprise-iot-journey-busy-road-ahead-emil-berthelsen

12. CIO (2015, May 25). Retrieved from http://www.cio.com.au/article/575718/5-tech-trends-will-impact-data-centres-future/ 5 tech trends that will impact data centres in the future

13. IndiaTechonline (2014, May 24). Retrieved from http://www.indiatechonline.com/special-feature.php?id=228.php

14. Security Newsdesk. (2015, September 11). Retrieved from http://www.securitynewsdesk.com/iot-security-you-are-in-control/

15. Cisco. (2014). Cisco. Retrieved from https://www.cisco.com/web/solutions/trends/iot/docs/iot-data-analytics-white-paper.PDF

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8.0 Abbreviations/Acronyms

ADP: Application Development Platform

AEP: Application Enablement Platform

API: Application Programming Interface

CDP: Connected Device Platform

DSRC: Dedicated Short Range Communication

EFTPOS: Electronic Funds Transfer at Point of Sale

IoE: Internet of Everything – a term defined by CISCO for the Internet of Things. It is meant to highlight data from people and device being intertwined

IoT: Internet of Things – a class of services involving specialised devices connected to the Internet

ITS: Intelligent Transport Systems – includes vehicle to vehicle and vehicle to infrastructure communication

LPWAN: Low Power Wide Area Network

MEMS: Micro-Electro-Mechanical Systems

M2M: Machine to Machine – a class of services where machines communicate without directly involving people

NB-IoT: Narrowband Internet of Things

RF: Radio Frequency

RFID: Radio Frequency Identification – a system for reading tags wirelessly

SIM (or SIM Card): Subscriber Identity Module – a card-based mechanism for identifying a mobile subscriber

SMS: Short Message Service

SOC: System on a Chip

T&L: Transport and Logistics

V2I: Vehicle to Infrastructure communication

V2V: Vehicle to Vehicle communication

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