INTERNET OF THINGS TECHNOLOGY - Indiana …lin/CPET581-InternetOfThings/1-Lectures/Final... · INTERNET OF THINGS TECHNOLOGY ... Home uses: Real time energy usage, ... Cloud platform,

2/27/2016

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INTERNET OF THINGS

TECHNOLOGY

AN INSIGHT FOR BUSINESS INTEGRATION

2/27/2016IPFW COLLEGE OF ENGINEERING, TECHNOLOGY AND COMPUTER SCIENCE

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By

Olubusayo Richard Adeyemo

Supervised by

Prof. Paul I. Lin

Executive Summary

The Internet of Things (IoT) is a new technology trend that is:

Rapidly re-shaping the world as we know need

Considered as the future Internet

Expected to improve efficiency and lower cost

Form of internetworking communication system

Expected to bring new market opportunity


2

Three major considerations are made:

IoT Technology overview

Market Size and potential business opportunities

Business Integration methods

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Executive Summary cont.

This project dissimilate the technology of Internet of Things by

exploring:

Its enabling technology

Its market value

Its Use cases

Its SWOT Analysis

Its available business model

Its Adoption and monetization challenges

And proposed :

A business integration approach model


3

Contents

Introduction

Literature review


Market Deployment

Recommendation and conclusion

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Introduction

Background

Foundation laid by ITU (1997)- 7th series of ITU Internet Report

“Challenges to the Network”

MIT auto-ID lab- First mention by Kevin Ashton (1999) RFID

Journal- Linked RFID to the Internet

The basic principle of IoT was stated in his journal where he

mentioned “THINGS” with ability to gather “DATA” autonomously

and “DATA INTERPRETATION” to give more accurate insight

He also mention RFID and Sensors for data collection


Basic Uses and Benefits IoT uses

Home uses: Real time energy usage, safety and security monitoring

Automotive Industry: Proactive Servicing for Automobiles

Retail: Intelligent Vending Machines

Energy: Smarter Distribution of energy

Healthcare: Better diagnosis and treatment through Intelligent

Device

Logistic: Tracking products, real-time monitoring of product

condition

Benefits

Cost savings

Improved asset utilization

Efficient processes

Real-time monitoring

Improved productivity

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Major Technology consideration

Sensor Technology

o Actuators (Physical attribute to digital signal)

oWireless sensor technology (eg microwave, Infra red)

oWireless communication technology

• Bluetooth (Low energy preferred)

• Near Field Communication (NFC)

• ZigBee

• Wi-Fi

Location Awareness

o Global Positioning System (GPS)

Wide Area connectivity

o GSM, GPRS, Edge, 3G, 4G LTE, 5G 2/27/2016

IPFW COLLEGE OF ENGINEERING, TECHNOLOGY AND COMPUTER SCIENCE

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waspmote and plug&senseSource: [2] LINKhttp://www.libelium.com/libelium-sensors-connect-with-cloud-platforms-axeda-esri-thingworx-for-the-internet-of-things/

Major Characteristics of an IoT

enabled devices

Ability to represent itself digitally and uniquely

o Tagging an object with a barcode

o RFID tag

o Bluetooth tag, Infra-red tag, ZigBee tag, NFC

o Internet Protocol (IPv6) (unique network representation)

Ability to capture data through sensors

Ability to process sensor data locally or via Cloud platform

Ability to be monitored and/or controlled from anywhere

Ability to communicate through Internet Network infrastructure (WSN – through a gateway or WAN – IPv6 capable)


http://www.libelium.com/libelium-sensors-connect-with-cloud-platforms-axeda-esri-thingworx-for-the-internet-of-things/

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Volume of Connected devices

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Connected Devices: Cisco estimates 50B connection by 2020 [3] http://share.cisco.com/internet-of-things.html

MIT Business review estimates approximately 26 billion objects will be

linked together in the internet

Source: MIT technology reviewhttp://www.siemens.com/innovation/en/home/pictures-of-the-future/digitalization-and-software/internet-of-things-facts-and-forecasts.html

Market Segments

• Internet of Things Market forcast:

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Source: http://www.icinsights.com/news/bulletins/SensorsActuators-Will-Break-Out-Of-Doldrums-In-2014/

Core market segment

http://share.cisco.com/internet-of-things.html

http://www.siemens.com/innovation/en/home/pictures-of-the-future/digitalization-and-software/internet-of-things-facts-and-forecasts.html

http://www.icinsights.com/news/bulletins/SensorsActuators-Will-Break-Out-Of-Doldrums-In-2014/

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Market Segment Cont.

11Source: Microsoft MSDN: https://msdn.microsoft.com/en-

us/magazine/hh852591.aspx

Vertical Market ($Billion dollars market segment)

Introduction cont.

Statement Problem:

Slow adoption rate despite high market share

Insufficient knowledge about the technology and its integration

Several unknown application areas and potential benefits

Need for business transformation towards adoption of IoT

Significance of Problem:

To increase IoT adoption rate among businesses

To be among the early adopter of the technology (Businesses, Government and Individuals)

To gain competitive advantage over others (Higher ROI)

To enjoy robust integration and Return on Investment

To efficiently adopt and integrate IoT


https://msdn.microsoft.com/en-us/magazine/hh852591.aspx

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Contents

Introduction

Literature review


Market Deployment



Literature Review

IoT is viewed differently by different organizations

Sometimes known by different names (M2M, Industrial Internet,

Intelligent system, connected devices)

IoT largely connects to other fields of activities such as:

Cloud platform, Big data, Future internet, Cyber-physical system

and Smart technologies

It is the convergence of efficient wireless protocols,

improved sensors, cheaper processors, Nano technology

Becomes mainstream: Due to companies engaging in

development of management and application software


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Literature Review

IoT Research Community

Internet of Things World Forum (IoTWF): https://www.iotwf.com/:

Internet of Things International Forum: http://iotforum.org/

IEEE World forum on Internet of Things (WF-IoT): http://sites.ieee.org/wf-iot/

Internet of Things Conference: http://iotInternetofThingsconference.com/

Internet of Things architecture: IoT-A: http://www.iot-a.eu/public

Top players

ARM: http://www.arm.com/markets/internet-of-things-iot.php

ATMEL: http://www.atmel.com/Images/Atmel-Integrating-the-Internet-of-Things-Brochure.pdf

BOSCH: https://www.bosch-si.com/products/bosch-iot-suite/benefits.html

Cisco:http://www.cisco.com/web/solutions/trends/iot/overview.html

Ericsson: http://www.ericsson.com/spotlight/services/internet-of-things/infographic/transforming-industries/


Popular Top players

Microsoft IBM SAP Oracle Cisco

Vision Provides insight

and businesses

opportunities

available

Use of IBM cloud

and analytics

software in smart

planet campaign

To connect,

transform and

reimage

business

using insight

derived from

data

Provides an end

to end solution,

enable Hadoop,

NoSQL, and

SQL

technologies to

work together

and be deployed

securely in any

model

Maximize the

economic value of IoT

and help businesses

maximize the benefit

using IP-connected

devices for

collaboration and not

building smart devices

Focus Provide the best

approach to

harness IoT using

Microsoft

Technologies

Invention of IoT

products and

services and

optimization of

business

operation

Focuses on

Business

integration

Focus on

devices that are

Java enabled

Building powerful

infrastructure that will

support the network

need of IoT

Cloud

services

Microsoft Azure IBM insight with

other IBM Cloud

services

SAP HANA

Cloud

Oracle Big data

analytic products

and java

embedded

devices

Cisco connected

analytics

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https://www.iotwf.com/

http://iotforum.org/

http://sites.ieee.org/wf-iot/

http://iotinternetofthingsconference.com/

http://www.iot-a.eu/public

http://www.arm.com/markets/internet-of-things-iot.php

http://www.atmel.com/Images/Atmel-Integrating-the-Internet-of-Things-Brochure.pdf

https://www.bosch-si.com/products/bosch-iot-suite/benefits.html

http://www.cisco.com/web/solutions/trends/iot/overview.html

http://www.ericsson.com/spotlight/services/internet-of-things/infographic/transforming-industries/

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Contents

Introduction

Literature review


Market Deployment



IoT Technology Brief history

It has its roots in various networks and technologies

It is the convergence of the following technology areas:

o Radio-frequency identification (RFID)

o Machine-to-Machine (M2M) communication

o Wireless Sensor and Actuator Networks (WSAN)

o Ubiquitous computing

o Web-of-things (WoT)

Acceleration is due to advancement its supporting technologies:

Microcontroller prices and performance

Sensor advancements

Wireless connectivity pricing and ubiquitous coverage

Application development

Cloud support2/27/2016


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IoT Technology

Internet protocols

IPv4 Address capacity 232 (4.3 billion)

o Originally connecting various organizations and people

IPv6 Address capacity 2128

o New connectivity: connecting remote and mobile “things” or “machines” or “assets” to the Internet

Transition from a network of computers to a network of things

Market adoption rate is accelerating due to:

Growth in analytics and cloud computing ( such as Hadoop, No SQL)

Increasing interconnectivity of machines and personal smart devices

The proliferation of applications connecting supply chains, partners, and customers


IoT Roadmap

20

RFID Tag for facilitating , inventory and loss

prevention

Surveillance, Security, Healthcare, Transport,

Food safety

Locating People and everyday Object

Ability to monitor and control distance object

Demand for Expedited logistics

Supply Chain Helper

Vertical Market Application

Ubiquitous Positioning

Physical Web

Ability of devices to receive geolocation signals

Miniaturization, Power electronics and Available

spectrum

Software agent. Advance sensor and fusion

Cost reduction leading to diffusion in 2nd application

Te

chn

olo

gy

reac

h

20202000 2010 TIMESource: SRI Consulting Adopted [5] (http://trumpiot.com/2014/03/14/sri-

consulting-business-intelligence-the-internet-of-things-roadmap/)

http://trumpiot.com/2014/03/14/sri-consulting-business-intelligence-the-internet-of-things-roadmap/

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IoT TodayStill in its early stage –Two solutions available

• HTTP-based and proprietary solutions (Present)

• Internet Engineering Task Fund (IETF)-based solutions (new/future)

Characterized By :

A multitude of co-existing and competing products and platforms

Various standardized and proprietary communication protocols

A barely compatible solutions

High prices of solutions and lack of interoperability between vendors

Present day tags: Tags are electronic chips or code which uniquely identifies a device and make their presence known through communications (active or passive)

A Near Field Communication Tag (NFC) (Active)

Quick Response code (QR code)(Passive)

A Bluetooth Low Energy Tag (BLE) (Active)

RFID Tag LINK TO DIAGRAM

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IoT Connectivity

Device configuration–Two solutions available

• Direct connectivity: IP enabled devices

• Indirect Connectivity: Connect via a gateway device

Link to diagram

• Other connectivity ( form of Indirect – e.g google watch)

o Use of Smart phone as gateway device

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IoT Classification Based on different criteria

o Network scale

• Internet of Nano-things

• Internet of Wi-Fi based things

• Internet of things for smart society

• Global scale based Internet of things

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IoT Classification

Taxonomies


Dimension Characteristic

Mobility Moveable vs Fix

Size From tiny microchip to large vessels

Complexity Dumb vs Smart

Dispersion Concentrated Vs Dispersed

Power Supply Externally powered to autonomous

Placement Attached Vs Embedded

Connectivity Patterns Sporadic Vs Continuous, Narrow Vs Broadband

Life status Non-animate Vs Animate

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Driver for IoT

Main driver - “add value” to product and services

o Increased revenues

o Decreased cost

Expected $613 billion of additional profits annually due to the

connection of devices to the Internet (Computers/mobile devices)-

50% of Internet potential (took 15years)

Expected $14.4 trillion with IoT adoption over next decade

o http://sitic.org/wp-content/uploads/The-Internet-of-Things-A-Study-in-

Hype-Reality-Disruption-and-Growth.pdf

o http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf

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Enabling and Synergistic Technology

Enabling Technologies: It builds up the foundation of IoT

Synergistic Technologies: Play supporting roles in the

operation of IoT

Enabling technologies can be grouped into 5 categories:

Technologies that enable “things:

• To be uniquely identified: RFID tag or IPv6

• To acquire contextual information: Wireless Sensors or transducers

• To process contextual information: Smart technologies

• To communicate contextual information: Wi-Fi capability

• To improve security and privacy: Encryption and authentication

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http://sitic.org/wp-content/uploads/The-Internet-of-Things-A-Study-in-Hype-Reality-Disruption-and-Growth.pdf

http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf

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Enabling and Synergistic Technology

Enabling Technologies Synergistic Technologies

Machine-to-machine Interfaces Geotagging/geocaching

Protocols of electronic communication Biometrics

Micro-controllers Machine vision

Wireless communication Robotics

RFID Augmented reality

Energy harvesting technologies Telepresence and adjustable autonomy

Sensors and sensor networks Life recorders and personal black boxes

Actuators Tangible user interfaces

Positioning or location technology

(GPS)

Clean Technologies

Software engineering Mirror worlds

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Source: Cisco IBSG 2012

Basic IoT ARCHITECTURE

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Source: ITU and IERC [7]

DEVICE LAYER

SENSOR LAYER

DEVICES

GateWay

Routing & Addressing

Energy Optimization

QoSError Detection

& Correction

Flow Control &Reliability

Network & Communication Networking Capabilities

Transport Capabilities

IoT ServiceIoT Service Resolution

Service Support & Application Layer

VE & IoT Service Monitoring

VE Resolution

VE Service

Virtual Entity

Business Process Modeling

Business Process Execution

IoT Business Process Management

Serv

ice

Org

aniz

atio

n

Serv

ice

Com

post

ion

Serv

ice

Orc

hest

rati

on

QoS Manager

Device Manager

Application Layer

Internet of Things Application

Management Capabilities

Generic M

anagement

CapabilitiesSpecific M

anagement

Capabilities

Secure Management

Authorization

Key Exchange &Management

Trust &Reputation

Identity Management

Authentication

Generic

Security Capabilities

Specific security

Capabilities

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ARCHITECTURE EXPLANATION

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Layers Components Functions

Sensor Layer Actuators, RFID tags,

Transducers sensors,

etc

Perceive the environment and translate

result to digital forms

Device Layer Tools, Equipment, Embedded

devices, product

Controls and makes real-time analysis

with the aid of sensor.

Network Layer Gateway All networking capabilities, transport

capabilities, flow control, error detection

Service support

and Application

support layer

Virtual entity, Service

organization, IoT business

process management, IoT

services.

This layer takes care of the service

organization

Security layer Network layer, Service

support and Application

support layer

Security is implemented on all the layers

besides the sensor layer. The security

focuses on data transfer and

communication

IoT Protocols Overview

Most evolved from protocols used in M2M communication

IPv6 not effective for device to device communication

Inefficient use of low power and low bandwidth in devices

Extensive overhead against memory

Computational limitation of devices

Internet Engineering Task Force (IETF) proposal

IPv6 over Low Power WPAN (6LoWPAN) group: developed 6LoWPAN

Routing Protocol for Low Power and Lossy Networks (ROLL) group:

developed the IPv6 route-over Routing Protocol for LLNs known as RPL

Constrained Restful Environments (CORE) group: developed the

Constrained Application Proto-col (CoAP)

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IETF IoT Protocols

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Source: IETF [8]

Other IoT Protocols

Continua – Personal Health Devices (IEEE 11073)

Data Distribution Service (DDS)

Devices Profile for Web Services (DPWS)

Message Queue Telemetry Transport (MQTT)

Advance Message Queuing Protocol (AMQP)

Universal Plug and Play (UPnP)

Extensible Messaging and Presence Protocol (XMPP)

Zero Message Queuing (ZeroMQ)

Operates in different functional area

Access layer: XMPP

Process layer: AMQP

Data aggregation layer: MQTT/ CoAP

Control and distribute: DDS2/27/2016


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IoT Protocols Comparison

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Big Data in IoT

Source: Machina Research2/27/2016


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Big Data arises as a result of data complexity and large data

volume being generated and dumped from many different

sources.

Structured and Unstructured data streams

Ability to normalized these data

Ability to analyze these complex data

Ability to interpret the complex data

Comparison between M2M and IoT in relation to Big

[Link to Diagram]

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IoT Application

IoT Application Areas

Personal Needs • Increases house hold safety

• Simply certain activity

• Improve lifestyle

• Decreases cost of living

Community Needs • Ensure public safety

• Create employment and ensure existing ones

are sustainable

• To protect the environment by reducing

pollution, waste and energy management

Enterprise Needs • Increased productivity

• Market differentiation

• Cost efficiency

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IoT Application Areas

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SMART

PLANET

SMART ENERGY

SMART TRANSPORT

SMART LIVING

SMART HEALTH

SMART BUILDINGS

SMART

CITIES

Green Environment

Environmental sensor

Water ,Power leak detection

Pollution, water monitoring

Connected communities

FUTURE INTERNET( Ubiquitous and High speed connection)

Lightning, water management

Monitoring and security Traffic control ELECTRIC GRID

Voltage and Power sensors

Meters and Breakers Fault detection

ITS,HEVs,EVs

Electric Mobility, Evs, HEVs

High Speed trains Infrastructures,V2I,

V2V,V2I+1

Entertainment,Leisure

Independence through technology

On demand Information

On demand connection

SMART INDUSTRY

HealthCare System

People Monitoring Bio sensor, Probes Remote Health

Industrial Environment

Lightning, security, Actuators Production control Robotics

Buildings/Smart Homes

Thermostat, HVAC, Lightning

Presence sensor,Lockers, actuators

Meters, Smart plugs,HEC

INTERNET OF THINGS

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IoT Challenges

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Robustness in connectivity

Interoperability and

standardization

Naming and Identity

management

Safety and Security of devices

Data confidentiality and encryption

Big Data consideration

Business ModelWireless SpectrumSmart

embedded technology

Interfaces

Source: http://www.internet-of-things-

research.eu/pdf/IERC_Cluster_Book_2014_Ch.3_SRIA_WEB.pdf

Contents

Introduction

Literature review


Market Deployment



http://www.internet-of-things-research.eu/pdf/IERC_Cluster_Book_2014_Ch.3_SRIA_WEB.pdf

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IoT Market Size14.4 Trillion expected in the next 10 years (Cisco research)

“Industrial Internet” has the potential to add $10 to $15 trillion to global GDP over the next 20 years (GE Research)

IoT product and service suppliers will generate incremental revenue exceeding $300 billion in 2020 (Gartner Research)

Worldwide market for IoT solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020 (IDC Forecasts)

Other research include:

• IHS Automotive: The number of cars connected to the Internet worldwide will grow more than six-fold to 152 million in 2020 from 23 million in 2013.

• Navigant Research: The worldwide installed base of smart meters will grow from 313 million in 2013 to nearly 1.1 billion in 2022.

• Morgan Stanley: Driverless cars will generate $1.3 trillion in annual savings in the United States, with over $5.6 trillions of savings worldwide.

• Machina Research: Consumer Electronics M2M connections will top 7 billion in 2023, generating $700 billion in annual revenue.

• On World: By 2020, there will be over 100 million Internet connected wireless light bulbs and lamps worldwide up from 2.4 million in 2013

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IoT Market Areas

• Core business: Technology providers

• Extended enterprise: Consultant

• Businesses: Adopter of IoT

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http://www.autonews.com/article/20140110/OEM06/301109910/the-race-to-market-the-connected-car

http://www.navigantresearch.com/newsroom/the-installed-base-of-smart-meters-will-surpass-1-billion-by-2022

http://robotenomics.com/2014/02/26/morgan-stanley-the-economic-benefits-of-driverless-cars/?imm_mid=0b9b54&cmp=em-na-na-na-newsltr_solid_20140327_elist

https://machinaresearch.com/news/press-release-consumer-electronics-m2m-connections-will-top-7-billion-in-2023-generating-usd700-billion-in-annual-revenue/

http://onworld.com/news/100-Million-Internet-Connected-LED-Lights-by-2020.html

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IMPACTS

Business Impact Societal Impact

Continuous Care (Health

Care)

Smart Events (Emergency)

Remote Factory Management

(Smart Factory)

Continuous Care (Health

Care)

Smart Product Management

(Retail)

Aging population –

Alzheimer’s disease (Health

Care)

Smart Events (Emergency) Mine Sensor Chat (Smart

Factory)

Aging population –

Alzheimer’s disease (Health

Care)

Sustainable Urban Planning

(Environment)

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TOP FIVE IMPACT:

Direct Market productsProduct Description

Radios Communications

chips

Chips that provide connectivity based on various radio

protocols

Sensors Chips that can measure various

environmental/electrical variables

Microcontrollers Processors/Storage that allow low-cost intelligence on

a chip

Modules Combine radios, sensors, microcontrollers in a single

package

Platform Software Software that activates, monitors, analyzes device

network

Application Software Presents information in usable/analyzable format for

end user

Device Integrates modules with app software into a usable

form factor

Airtime Use of licensed or unlicensed spectrum for

communications

Service Deploying/Managing/Supporting IoT solution


42

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IoT Products

Products Components Features

Mimo baby Lily pad (Wi-Fi )

Turtle (low Bluetooth

sensor)

Prevents the sudden

death syndrome and

reliable monitoring

Glowcaps Glowcap (Wi-Fi),

Nightlife (Wi-Fi and

WAN)

Reminder, drug

usage management,

ability to call

SmartThings

products

Several sensors and

devices (depending

on the solution)

Hub

Provides Smart

home solution for

security, energy

management and

home management

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Mimo Baby

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Smarthings/GlowCaps

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IoT use cases

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Cases AIM Solution

Company name: Dundee

Precious Metals

Industry: Mining

Consultant: Cisco

• Increase production

quality by 30% and out-

put without increasing

headcount and re-

sources

• Improve miner safety

• Minimize cost

• Implementation of Cisco

Unified Wireless network

• Improves communication

using cisco devices

• Connect other

things(equipment) for

Monitoring and control

• Improves safety

Company: KUKA

Industry: Manufacturing

Consultant: Microsoft

• Production of multiple

car models on the

same assembly line

while meeting a

rigorous production

schedule

• Increased co-ordination

on the factory floor

• Increased production

rate

• Implemented an

intelligent system

anchored by Windows

Embedded and Microsoft

SQL Server which

connects all units to a

central backend system

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IoT use cases contd.

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Cases AIM Solution

Company name: Shaspa

Industry: Information

Technology

Consultant: IBM

• Autonomous solution to

capture and analyze

sensor data in homes,

offices and

environment.

• Improving

communication links

connecting Shaspa

Bridge to the cloud

platform

• Better analytic cloud

platform and dataset

aggregation

IBM provided Informix which

is an embedded database

that supports both ARM and

Intel architectures

Company name : Ventana

Medical Systems

Industry : Healthcare

Consultant: Axeda

• Provision of remote

service solution

• Reduction of instrument

• Remotely diagnosing

and repairing issues,

• Integration of a remote

service capability (Axeda)

• 24/7 real-time instrument

monitoring connected

through Axeda cloud

services

• Provision of remote

customer support

Key changes and Benefit

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INDUSTRY KEY CHANGE POTENTIAL BENEFIT

Automotive and

Transformation

• Real-time driving behavior

• Traffic and vehicle diagnostic

• Improved customer experience

• Reduced pollution,

• Increased safety

• Additional revenue streams

Healthcare • Remote monitoring of patient’s

vitals

• prescription reminder and

diagnosis

• Saves more lives

• Improves staff’s productivity

Manufacturing • Real –time monitoring leads to

open manufacturing

• Maximized operational efficiency

• Safety and reliability

• Using smart sensors and digital

control system

• Enhanced agility and flexibility

• Efficient decision making

• Efficient use of equipment and

machinery

Source: Cognizant research (Santhosh 2014 [9] )

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Key changes and Benefit cont.

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INDUSTRY KEY CHANGE POTENTIAL BENEFIT

Retail • Stock out prevention through

connected and intelligent supply chain

system

• Aisle automation and open store

• Ability to predict customer

behavior and trends, using

data from video surveillance

cameras social media,

internet and mobile device

usage

Supply chain • Real-time tracking of parts and raw

materials which helps organization

preempt problems, address

fluctuating in demand problems and

manages all stages of the supply

chain

• Reduces working capital

• Improves work efficiency

• Eliminates delays

Infrastructure • Smart lightning, Water, power, fire,

cooling, alarms and structural health

systems

• Environmental benefits

• Significant cost savings with

better utilization of resources

• Preventive maintenance of

critical system

Source: Cognizant research (Santhosh 2014)

Business Integration

Focus: Information that will aid adoption and integration IoT technology into business plan

Integration consideration:

• IoT monetization techniques

• Business SWOT analysis

• Monetization challenges

• Prerequisites for the development and rollout of IoT solutions

• Business model

• Business plan

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Business Integration

Important information for business leaders: Survey of 779 senior

business leaders sponsored by ARM

http://www.arm.com/files/pdf/eiu_internet_business_index_web.pdf

75% of companies from across industries are already exploring the IoT.

Only 4% do not expect to be using any form of IoT 3years

There are new IoT product for all kind of businesses not just in

manufacturing e.g. insurance companies pricing premiums based on

driver behavior

A lack of IoT-related talent is considered the top obstacle to businesses

using the IoT

There is need for business cooperation through interconnectivity and

data sharing for 100% successful IoT

Unknowns should not be feared, exploration of new business model

will bring more profitability

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IoT Monetization

Business Questions?

• Why are there still a small number of organizations adopting the

technology?

• Do organizations recognize the scale of the opportunity?

• Are they prepared to take advantage of the growing wave of

sensor data?

• Do they know the right approach necessary to harness the

technology?

According to Capgemini-Consulting report, two-third do

not monetize their solution http://www.capgemini-

consulting.com/video/the-internet-of-things-are-organizations-ready-for-a-

multi-trillion-dollar-prize

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http://www.arm.com/files/pdf/eiu_internet_business_index_web.pdf

http://www.capgemini-consulting.com/video/the-internet-of-things-are-organizations-ready-for-a-multi-trillion-dollar-prize

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IoT Solution Categories

Present adoption falls into the following:

Performance improvement based on predictability of system e.g KUKA

case studies (Common in industry 4.0)

Remote configuration or remote operation and support e.g Onstar on

GM

Basic information support based on notification or alert system e.g

“SmartThing” solutions

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Performance Improvement Support

Remote Operability Support

Basic Information Support Delivery of alert and notifications

Ability to be controlled and

configured remotely

Predictive maintenance and

productive enhancement and insight based on

sensor data

Solution by Industry

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Industrial Manufacturing

Medical Devices

Utilities

Auto Manufacturing

Insurance

Home Appliances

Pharmaceuticals

Low maturity: <40% of firms provide IoT solutions that support the feature

Medium Maturity: 40-60% of firms provide IoT solutions that support the feature

High maturity: >60% of firms provide IoT solutions that support the feature

INDUSTRY GROUP

Basic Information Support

(Alert and Notification)

Remote Operability Support(Remote control and

Configuration)

Performance Improvement Support

(Predictive Maintenance/Productivity Enhancement

Insights)

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IoT Monetization Model

Present models are:

Eco system building: The involves third party selling products or

solution that creates an avenue for other IoT vendors to sell

services that works with their product (Intel Galileo IoT device)

Hardware premium: Organizations charge a price-premium for

the connected products or devices (SmartThings products)

Service revenue: Upgrading tradition product to IoT product and

tying a recurring pricing model for the new feature (GM OnStar

technology)

Data revenue: Revenue is generated by selling packaged data

gathered from sensors, it involves data analysis and interpretation

(business of selling and buying Big data e.g Big Data exchange -

http://www.bigdataexchange.com/

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Business Opportunity

Business opportunities are created in five major

ways:

New business model

Real- time information on mission critical systems

Diversification of revenue streams

Global Visibility/ presence

Efficient and intelligent operations

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http://www.bigdataexchange.com/

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IoT Business SWAT Analysis

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Built upon exiting IP infrastructure

Driver for new source of revenue

Optimizes resource usage

Improves work efficiency

Enhances proactive decision making

Saves total operational cost

Connected devices are growing

rapidly

Involvement of many different

technology platform requires various

technology support

IoT solution can be expensive

Expanded attack behavior (e.g

Sensor, data)

Potential introduction of uncertainty

due to high volumes of data

A very large market segment

lots of solutions tailored towards

individual business needs

Real-time operational efficiency can

be expanded to any vertical market

Revenue improvement can be

harness from different segment

Expanded situational awareness with

interoperable systems

IoT is gaining popularity

Weaknesses

Opportunities

Privacy and Security issues

associated with the internet usage

Immature knowledge base related to

IoT security

High disruptive behavior

IoT traffic not currently included in

national security priority

telecommunication service

Unclear business model

Threats

Strengths

Monetization challenges

Security and privacy concerns hinder consumer adoption

Lack of standards limits revenue potential

Successful monetization demands significant investments in acquiring new capabilities, often without clear returns

Interoperability Limitation

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Integration Framework

Source: http://ijsr.umcs.lublin.pl/wp-

content/uploads/2013/07/vol_1_no_1_pap_4_Sctures_of_Strategic.pdf2/27/2016


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Value Creation

Competitive Strategy

Capabilities

Product Offering

Value Creation system

Revenue logic

Strategic,operative management

Organizational Structures

People Resources, Processes

Product Technology

Production Technology

Information Technology

Strategic Management of Technology

Strategy view

Organizational view

Business Model View

Technological view

Interaction between different business views

Technology Integration Process

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IDENTIFY THE IMPORTANT TECHNOLOGY NEEDS

Research and Evaluate the solutions

Develop the technology plans

Build Or Source the technology

Facilitate trials and Deployment

Observe, share knowledge and lesson learnt

Refine project and standardize

http://ijsr.umcs.lublin.pl/wp-content/uploads/2013/07/vol_1_no_1_pap_4_Sctures_of_Strategic.pdf

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Building a successful IoT solution

Important questions and consideration to build a successful IoT:

• Which set of smart, connected product capabilities and features should the company pursue?

• How much functionality should be embedded in the product and how much in the cloud?

• Should the company pursue an open or closed system?

• Should the company develop the full set of smart, connected product capabilities and infrastructure internally or outsource to vendors and partners?

• What data must the company capture, secure, and analyze to maximize the value of its offering?

• How does the company manage ownership and access rights to its product data?

• Should the company fully or partially disintermediate distribution channels or service networks?

• Should the company change its business model which business model will be most appropriate?

• Should the company enter new businesses by monetizing its product data through selling it to outside parties?

• Should the company expand its scope?

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Conclusions

Cloud computing, Big Data/Analytics, the Internet of Things (IoT),

mobile computing and even social media are the core disruptive

technologies that are now converging at the cross roads of the

emergence of a third generation of computing platforms

IoT should be a strong consideration for every COO

Despite some challenges present, its future benefits out-weights it

challenges

Research work are being carried out to solve the related

challenges associated with the technology

Business model and business integration model are important

considerations

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Recommendation

• Experiments with the emerging technologies should be conducted in

development labs and in small scale pilot trials

• Established companies can seek partnerships with innovative technology

suppliers creating Internet-of-Things capabilities for a small niche (initial

implementation)

• Speedy development of edge devices (Smart devices with capability to

analyze data )

• Vendors should collaborate to develop a solution that can interoperate

• Security should be the IoT integration consideration; not an after thought

• There should be development of different business model targeted at

different vertical sectors

• Integration should be a gradual process stating from the lowest capability of

IoT ( Basic information support) to remote operability support then to

performance improvement support)

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REFERENCES1. H. Leggat. (2015, 2/18/2015). 96% of businesses ready to adopt Internet of Things - Trends &

Ideas - BizReport. Available: http://www.bizreport.com/2015/01/96-of-businesses-ready-to-adopt-internet-of-things.html

2. (2015). Urban Resilience in the Smart City: River Flood and Forest Fire Early Detection | Libelium. Available: http://www.libelium.com/smart-city-urban-resilience-smart-environment/

3. (2011, 1/24/2015). The Internet of Things -Visualizations. Available: http://share.cisco.com/internet-of-things.html

4. J. Morrish. (2013). The Connected Life-25 Billion connections by 2020. Available: http://www.gsma.com/connectedliving/wp-content/uploads/2013/03/JimMorrish_GSMA-Connected-Life-20130624-v4.pdf

5. Taso. (2014). SRI Consulting Business Intelligence – The Internet of Things Roadmap. Available: http://trumpiot.com/2014/03/14/sri-consulting-business-intelligence-the-internet-of-things-roadmap/

6. D. Evans. (2012). The Internet of Everything: How more relevent and Valuable connections will change the world. Available: https://www.cisco.com/web/about/ac79/docs/innov/IoE.pdf

7. P. F. Ovidiu Vermesan, Ed., Internet of Things- From Research and Innovation to Market deployment. The Rivers Publishers series, 2014, p.^pp. Pages.

8. I. Ishaq, D. Carels, G. Teklemariam, J. Hoebeke, F. Abeele, E. Poorter, et al. (2013, 2). IETF Standardization in the Field of the Internet of Things (IoT): A Survey [Review]. Available: http://www.mdpi.com/2224-2708/2/2/235

9. Santhosh, A. (2014). "Cognizant White paper Research- Reaping the Benefits of the Internet of Things." from http://www.cognizant.com/InsightsWhitepapers/Reaping-the-Benefits-of-the-Internet-of-Things.pdf. January 2013.

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QUESTIONS????

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THANK YOU

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2/27/2016

34

Waspmote and Plug&Sense nodes


BACK

Introduction


WAN connectivity

SENSOR GATEWAY

Standard Wi-Fi Router

Cloud Services

WAN Access

ZigBee/Bluetooth nodes

Wi-Fi enabled nodes

Return

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IoT Tags

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NFC tag Barcode Bluetooth tag

(d) RFID tag

BACK

Big Data in IoT

Source: Machina Research2/27/2016


70

RETURN

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