Demystifying Internet of Things

Presenter: Brian Pereira11 December, 2015

TopicsPART I

• IoT and M2M• The 3 waves of IT driven transformation• What makes things Smart? • The impact of smart products on business• The value proposition for smart devices

PART II• Examples of IoT in use today• Companies involved in IoT• The Industrial Internet and Industry 4.0• Where are we today?• What needs to be done?

What is IoT?

Things, people and cloud services getting connected via the Internet to enable new use cases and business models

IoT

Machine to Machine M2M• Machine-to-machine communications is the enabling technology for IoT. Machines have

the ability to exchange information and communicate, without human intervention.

• M2M focused on connecting machines – mainly proprietary closed systems

An everyday example:• When you withdraw money from the ATM machine, or swipe your credit card at a POS

terminal, you immediately get an SMS from the Bank. That’s M2M in action.

• Also: Credit card (OTP), Aadhar, I-T, SIP Mutual funds etc

The 3 waves of IT driven transformation• 1st wave – 1960s & 70s – Automation

• 2nd wave – 1980s & 90s – Rise of the Internet

• 3rd wave – Today – IT is an integral part of the product

What makes things smart?

Electrical + mechanical parts

Fixed function

Smart products• PC on a stick (USB pen drive)

• Intel’s Edison (PC on SD card)

• http://www.theregister.co.uk/2014/01/07/intel_demos_pconsd_tiny_computer_for_internet_of_things_and_wearables/

What makes products smart?• Today’s products include complex systems• Hardware• Embedded software (algorithms)• Embedded operating system• Storage• Processing power (processor)• Connectivity (on-board radios)• Sensors

• Moore’s law: The processing power doubles every 18 months

• Miniaturization – double the number of transistors on same area of chip

Very Large Scale Integration• SD card, Micro SD card• SIM card (Micro SIM, Nano Sim)• Computer RAM• Motherboards have shrunk

Glossary• Algorithms – rules that direct the product to respond to changes in its

function and in the environment.

• Make the product intelligent (the intelligence/logic is built in by way of the algorithms).

• Autonomous functioning.

Impact of smart products on business• Smart, connected products can do multiple things• Offer new functionality…• …with greater accuracy and reliability.• So, far greater product utilization.• Disrupting value chains, manufacturing models, processes.• Manufacturing companies need to retool and restructure assembly

lines.• Smart products are creating new industries, new opportunities, new

services (GE example later).

Value propositionThe value prop. is not “the Internet” but:

a. The data these devices capture/generate.

b. The revenue-generating services that can be created around this data (GE example).

c. The expanded capabilities/functionality/utility.

d. Their ability to communicate with each other.

e. Ability to work autonomously and take decisions without human intervention.

f. Self-learning, so improved efficiency

Organizations need to take advantage of all this and transform business models for advantage

PART II

Putting all this in perspective with the current scenario and examples of IoT in action

Examples of IoT in use today• GOQii makes a wearable band for personal wellness. The band monitors

your heart rate, activity patterns and sends that data to a server. A nutritionist checks this data periodically and calls you to advise you on diet, sleep, exercise etc. https://www.goqii.com/

• The wearable band is free. • But you pay a flat annual subscription fee for the service (3-month 3,999; six-month 6,999, 12-month 11,999 plan).

• The same can be applied for automobiles or other industries.

Examples of IoT in use today• Healthcare: Meditronics digital blood glucose meter, wellness band• Smart home: Philips Hue LED Smart Bulb, Doorbot Wi-Fi enabled smart

doorbell, Google Nest thermostat, smart TVs, home security, kitchen appliances• Schindler’s PORT technology for elevators• Automobiles sector: sensors mounted on

suspension system• Aviation: GE ACARS system (Industrial Internet)• Smart cities• Diebold ATM machines

IoT devices and smart products offer 4 functions• Real-time monitoring

• Control

• Autonomy/Autonomous function

• Optimize

What is driving IoT?

• Streamline experiences• Increase convenience• Better lifestyle• Reduce expenses

• Sell more products• Sell new services• Reduce expenses• With lower barriers

Users Business

Companies involved in IoT

• Cisco• Bosch• Honeywell• Ericsson• Freescale• GE• Texas Instruments• Google, IBM, Microsoft, Intel, Oracle, SAP, Qualcomm

Related topic: Industrial Internet• GE initiated the Industrial Internet in 2011, by adding sensors to its machines.

• Sensors capture data on all aspects and parameters of the functioning of its machines:

temperature, pressure, environmental conditions (dust, heat), rotational speed etc.

• This data is relayed back to a service centre, via the cloud.

• The engineers can use analytics software to forecast malfunction, overheating etc and relay

this back to the person using the machine.

• Can do preventive maintenance, send data in advance to third party spare part

manufacturers and order in advance.

• This can be offered as a service.

ACARS subscription model for airlinesAircraft Communications Addressing and Reporting system

Ground control, data centerCockpit

Related topic: Industry 4.0• It’s the fourth industrial revolution.

• A collective term embracing a number of contemporary automation, data exchange and manufacturing technologies.

• A collective term for technologies and concepts of value chain organization which draws together Cyber-Physical Systems, the Internet of Things and the Internet of Services.

• Industry 4.0 facilitates the vision and execution of a "Smart Factory“.

• Industry 4.0 will transform design, manufacture, operation and service of products.

Where are we today?• The price of sensors is still high (but is coming down).• ‘Siloed’ efforts (each company has its own IoT models, ecosystem)• Lack of universal standards• Adoption is yet to pick up• Power is critical for IoT devices• Security & Privacy – user data privacy • IoT application development is complex• Few cloud services• IoT is complex• Multiple connectivity options (W-Fi, Bluetooth, Zigbee etc)

It’s mainly about M2M today

What needs to be done?• Price of sensors needs to come down further• Connectivity needs to improve (spectrum allocation)• ‘Productization’ of the technology• Simpler interfaces• Ratification of IoT standards by international industry bodies• Adoption of IoT technology by Government• Government needs to encourage IoT innovation, particularly among

startups• Funding, tax breaks for IoT innovators• Interconnection of all ‘Internets’ • More cloud services needed – ‘Internet of Services’

End• Thank you!

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• Twitter: @brianp