The Internet of Things

It’s a term that has been used often in recent years, but what we do know now is that The Internet of Things will beckon companies to revise business models, integrate evolving technology, use analytics to create insight, manage security and privacy, and

The Internet of Things concept involves connecting machines, facilities, fleets, networks, and even people to sensors and controls; feeding sensor data into advanced analytics applications and predictive algorithms; automating and improving the maintenance and operation of machines and entire systems; and even enhancing human health. Cisco believes the “Internet of Everything” will have an economic impact of over $14 trillion by 2022. General Electric says the “Industrial Internet” could add $15 trillion to the world economy over the next 20 years. Companies are already spending billions to create new business models powered by the Internet of Things in sectors ranging from automotive (for example, invehicle information and entertainment) to health care (for example, remote patient monitoring).

The term “Internet of Things” is not new

The term Internet of Things (IoT) has been in use at least since 1999 when it was employed to promote RFID, the technology that uses lowcost radio tags to identify objects such as individual products, cases, or shipping pallets. Today, though it is widely deployed in warehousing, distribution, and retail, RFID accounts for a relatively narrow set of applications of IoT.

In recent years, diverse applications of sensors and wireless communications, forerunners of today’s IoT, have been implemented in a wide range of industries. Examples include tracking the location and condition of valuable equipment such as construction and mining machinery, managing the deployment and maintenance of commercial trucking fleets, coordinating the maintenance of vending machines and ATMs, supporting roadside assistance programs such as General Motor’s OnStar, controlling and monitoring manufacturing and processing operations, and managing electric power distribution networks to accelerate outage detection and response.

Smaller, cheaper sensors and better analytics are driving the market

As sensors and communications electronics continue to decline in size and cost and improve in performance, the economics of sensorbased applications improve. Today’s applications include the use of sensors so small they can be worn or even ingested, and others so rugged that they can monitor the performance of high-speed rotating machinery such as jet engines and generator turbines. At the same time, big data tools for managing and analysing the vast data sets generated by swarms of sensors are rapidly maturing. We are seeing new applications across a wide range of sectors:

Automotive:

Reducing crashes; enabling driverless vehicles, smart parking, and dynamic pricing for bridges, tunnels, and urban centres.

Health care and life sciences:

Monitoring patients at home, improving drug compliance. Sports and fitness: Monitoring athletic performance. Smart buildings: Improving security, comfort, and operating efficiency.

Heavy industry and manufacturing: Predicting equipment

failures, minimising downtime, and managing preventive maintenance schedules.

Municipal infrastructure:

Monitoring and managing infrastructure such as storm water management systems. These are just a few examples of the many emerging applications of IoT. IoT has the potential to revolutionise the way we lead our lives and run our businesses. Across many industries we are likely to see new ventures formed, some incumbents disrupted, and others attempting to disrupt or adapt to the new environment.

Companies have broad needs

As companies seek to build new businesses based on the IoT, they face an array of challenges:

Developing strategies and business models: Companies

need help working through strategic and business model questions