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INTERNET OF THINGS

Presented By:Piyush SrivastavaSwapnil JunjareSiddharaj DeshmukhPrannoy PalArchana VasanthanSachin K Ranganathan

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Introduction to IOT

In a 1999 article for the RFID Journal Ashton wrote: “If we had computers that knew everything there was to know about things—using data they gathered without any help from us -- we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. We need to empower computers with their own means of gathering information, so they can see, hear and smell the world for themselves, in all its random glory. RFID and sensor technology enable computers to observe, identify and understand the world—without the limitations of human-entered data.”

What is IOT?The Internet of Things is the interconnection of uniquely identifiable embedded computing devices with the existing internet infrastructure.

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Evolution of IOT through the ages

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Why IOT? - Advantages

• Automation of Daily Tasks leads to better monitoring of devices • machine to machine communication helps maintain transparency in the

process• Efficient and Saves Time

• It is useful since tasks don't have to be repeated manually saving time for other stuff

• Saves Money• Better Quality of Life• Better Decision Making

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Disadvantages

• Loss of Privacy and Security• All household devices being connected to the internet is a

risk• Compatibility

• Not all devices are the same. Compatibility issues will persist

• Complexity• Power failures can also cause problems• Technology taking control of life• Dependence on IOT

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IOT Architecture

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Top IOT Vertical Markets

Agriculture :• To grow from 30 million in 2015 to 75 million in 2020. • Collection of data using sensors.

• Ex. John Deere Tractors and Phenonet Project• Farmers get sense for best time to plant crop.

Manufacturing : • Biggest industry being impacted by IoT.

• global manufacturers will invest $70 billion on IoT solutions in 2020• factories to be more productive and efficient using sensors. • Better tracking of assets in the factory.

HealthCare :• Better Service for patients and efficient Business.

• Ex. MRI Machine and other medical devices using sensors.• Predict Repair and behaviour• Ex- Future Path Medical’s UroSense (Measures CBT)

Philips’ Medication Dispensing Service

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Top IOT Vertical Markets - cont.

Retail :• Bluetooth Beacons paired with mobile apps to monitor customer behaviour.

• Customer Receives Information and personalized discount.• Estimate of $44 Billion market through beacon triggered messages.

Transportation :• From Supply Chain Logistics to public transit for better transportation.• Ex. Sensors to monitor Temperature in Vehicles.

• Help Driver to save fuel.• To monitor when Fleet vehicles need repair.• To help reduce traffic and prevent accidents.

• 2 million connected cars on the road by 2020.

Energy :

• PG&E are beginning to use Smart meters.• To track customer’s energy usage.• Predict demand, Spot Outages and Schedule Repairs.

• 1 Billion Smart Meters by 2020.

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Innovative Applications

of IOT• Smart Homes / Home Automation: It is one where devices have the capability to

communicate with each other.• Ex - Nest Learning Thermostat

Philips Hue-Smart Home Lighting – 600 to 800 lumes.• Wearables:

• These devices broadly cover the fitness, health and entertainment requirementsEx- Jawbone UP2 , Fitbit ChargeHR , Motorola Moto 360 Sport.

• Smart City : • IOT solves traffic congestion problems, reduce noise and pollution and help make

cities safer.• Ex - CitySense-Smart Street Lighting ( Adjusting Brightness of Street lights )• Smart Parking to detect available parking spots.

• Security & Emergencies• Smart Water: wireless sensor networks to detect floods and respond

• measure increased water levels and generate alerts • Wireless Sensor Networks to Control Radiation Levels

• send the information in real time using wireless technologies

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About GE and its Industries• GE traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in

1878. • In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company

created General Electric Company.

• The GE conglomerate consists of eight subsidiaries in different industries. These subsidiaries are:

• GE Aviation, GE Capital, GE Global Research, GE Healthcare, GE Home & Business Solutions, GE Oil & Gas, GE Power & Water, and GE Transportation.

• GE is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive.

• GE has Bet Big on the Industrial Internet as IIOT:

• IIoT has been referred to as the smart or connected factory.• IIoT not only automates your operations but also brings transparency to every stage of the

supply chain.

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Impact of IOT on GE• invested $1 billion to put sensors on gas turbines, jet engines, and other machines.

• The Software Behind GE’s Industrial Internet – Predix, a cloud-based platform for creating Industrial Internet applications.

• Patterns of sensor data used to predict the schedule maintenance checks, improve machine efficiency, and reduce downtime.

• single unproductive day on a platform can cost a $25 million.• analyzing what differentiated one machine’s performance from another — what

made one more efficient.• In 2014, GE generated $1.3 billion in Predictivity revenue from new software and

analytics offerings in the market

• GE believes Predix can help the oil and gas industry in –• Improving Asset Productivity• creating a real-time picture of the status of an entire operation• Support for an Aging Workforce• building an Industrial Internet platform that meets customer needs.

Mention about a particular sector effected by IOT(We were discussing about the effect of IOT in the manufacturing sector)

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Internet Of Things – AS-IS / TO-BE AnalysisBusiness Strategy – (Part 1 / 3)Strategy 6 C

Framework to measure Value Network

AS-IS TO-BE

Business

(Transforming from business model of a corporation to Ecosystem Business Model)

Without IOT With IOTContext Dimension

Cooperation Dimension

ConstructDimension

• Concentrated perspective on only core business.

• Only supplier-customer relationship maintained.

• Traditional lifecycle stages.• Return on investment (value

creation) is concentrated.

• Every sector has access to their own platform in the vertical.

• Less/No engagement of partners to work together.

• Structure: In-house software development for vertical specific needs.

• Infrastructure: Technologies cater to only business needs in the vertical.

• Expand perspective beyond core business.• Key Mission is each subsidiary functions in

an integrated manner.• Interdependent organizations share their

ideas for future developments• Change in lifecycle stages• Return on investment (value creation) will

be expanded.

• Due to the integrated nature of the ecosystem across horizontal communication and access to platform becomes easy.

• Open interface encourages partners to work together.

• Structure: Almost all industrial users/actors at various level are a part of the platform.

• Infrastructure: IoT technology caters to business, operational as well as predictive needs of the business.

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Internet Of Things – AS-IS / TO-BE AnalysisBusiness Strategy – (Part 2 / 3)

Strategy 6 C Framework to measure Value Network

AS-IS TO-BE

Business

(Transforming from business model of a corporation to Ecosystem Business Model)

Without IOT With IOTConfiguration Dimension

Capability Dimension

• Pattern: Focal firm dominance of verticals across the corporation.

• External relationship: Various customer communities for different verticals or separate customers.

• Vertical communication and accessibility of resources & information.

• Limited Innovation & learning ability.• Less adaption & mobility beyond the

vertical.• Selected partners contributing to the

focal firm.• Less integration & synergizing ability

across the corporation.

• Pattern: One focal firm with other relevant stakeholders as a corporation.

• External relationship: Flexible connection, thereby can target customers across horizontal.

• Horizontal communication by opening access to the platform across the corporation.

• Expanded learning ability to develop apps and increased innovation horizons.

• Customized services for customers promising more adaption & mobility.

• Diversified partners opened.• Integration & synergizing ability

embedded in the platform.

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Internet Of Things – AS-IS / TO-BE AnalysisBusiness Strategy – (Part 3 / 3)

Strategy 6 C Framework to measure Value Network

AS-IS TO-BE

Business

(Transforming from business model of a corporation to Ecosystem Business Model)

Without IOT With IOTChangeDimension

• Addition of more features (business & IT) following the traditional business/IT approach in the vertical.

• The way interaction takes place among the customers and the stakeholders is mostly in feedback format.

• Platform pattern shift from closed to open, as IoT platform would demand change in business approach across the corporation for complete value creation.

• Interaction pattern shift between focal firm and stakeholders.

• Co-evolve with the customers.

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Internet Of Things – AS-IS / TO-BE AnalysisIT StrategyStrategy AS – IS

(without IOT)To-BE(With IOT)

IT

1. Equipment to enable the exchange of information between sensors, the cloud and devices.

2. Applications that facilitate the transmission, storage and analytics of sensor-collected data.

InfrastructureCurrently the IT infrastructure is limited to its department or sector for which it is used.

InfrastructureOverall IT infrastructure will be needed to be expanded/integrated to include IT resources from various sectors of the corporation. Solutions such as IaaS,PaaS and SaaS

Data AnalyticsData Analytics is done on a smaller scale just to support the business, finance or support data, most solutions are in-house infrastructure BI applications.

Data AnalyticsData Analytics will be used extensively as there will be vast data due to influx of sensors in the system. Solutions of moving towards a cloud-based data center or analytics-cloud/analytics-as-a-service will have to be explored, device-based apps development.

NetworkingMost of the enterprises have software-defined networking wherein the underlying network is abstracted just for applications and network services.

NetworkingNetworks would needed to be upgraded to become more agile to capture real-time analysis from sensors. Data will have a huge impact on networks, one solution can be distributed data centers.

SecurityDue to low connectivity among different applications/services the security threat is lowered and only traditional ways are implemented when it comes to IT/data security

SecurityHyper-connectivity between machine-to-machines posses the need to think of various security steps for IT. Integration layer of operations technology and IT would demand security.

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Competitive RivalryThreat : High

•New avenues for product differentiation and value-added services•Capture existing customer segments by provided specific customized solution

Porter’s Five Forces

Buyers

Suppliers Threat : Medium

Threat : Low

Substitute Products Threat: Medium

Threat: Medium

New Entrants

Bargaining Power of Buyers• Product Differentiation• Storage and analysis of

products data• After-sales service • Supply chain management

Threat of New Entrants• New Entrants could provide

better products/services with implementation of IoT.

• Demand for IoT products increases when it is cross-sectional

Bargaining Power of Suppliers• Limited suppliers for customer

specific solutions• New technology/skills are

invested to build IoT solutions

Substitute Products• Superior products• Capture existing customer

segments• Product-as-a-Service business

model could substitute traditional products

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SWOT Analysis(As-Is)

Strengths• No data security risks• Less complex systems• No radical change in organizational

structure, processes, physical infrastructure

Weakness• No centralized management of

systems across organization• Labor costs• Inefficient tracking/monitoring

of inventory/assets• No diagnostic, predictive

maintenance

Opportunities• Focus more on brand-awareness

Threats• No edge over competition• Customer Dissatisfaction• Lack of demand for existing

products• Limitations in achieving

Operational Excellence

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SWOT Analysis(To-Be)

Strengths• System interoperability• Monitoring, Control, Optimization

and Autonomy• Productivity gains, operational

excellence, reduced labor costs• Cross-functional collaboration, data

resourcing

Weakness• Data Security and Privacy• Compatibility among products of

different standards• Data sharing among companies a

sensitive issue

Opportunities• Integrating Data analytics

provides deeper insights• Focus on Customer Intimacy• Capture new market and customer

segments• Reshape value chain of

organization/eliminate silos

Threats• Vulnerability to hacking• Huge Investments as

organization processes, technical infrastructure needs to be changed

• Government regulations on Data Usage

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ANS-OFF MatrixExisting Products New Products

Existi

ng

Mar

kets

New

Mar

kets

Product Development• Quality Products at competitive

prices • Analysis of customer’s historical

data identifies new requirements• Product as a Service • Low-Cost variability

Diversification• Join forces with torch-bearers of

other industries to gain new segments

• Customized products to serve different customer segments

• Provide After-Sales services

Market Penetration• Identify customer requirements,

provide customized incentives• Operational Excellence provides

competitive advantage• Increased market share

Market Development• Identify new customer and market segments• Expand geographically • Identify new distribution channels to supply products

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STROBE-STROIS Matrix

Business Strategy Led Organization Led

Conservative Technology Led

STROBE Strategic Operation of Business Enterprise

STROIS Strategic Orientation of ISLOW

HIGH

HIGH

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Fish-Bone Matrix (As-Is)Cost Privacy &

Security

Efficiency System Maintenance

Labor Force Cost

Operating Cost

Time Cost

No Network Risk

Lack Of Connection

More Processing Cycles Decentral

ized Management

Expensive Maintenance

Less Efficient

Time Consuming

WITHOUT IOT

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Fish-Bone Matrix (To-Be)Cost Privacy &

Security

Efficiency System Maintenance

Reduced Labor Force Cost

Reduced Time Cost

Focussed Risk

Well Connected SystemsMore

Efficient

Centralized Management

Periodic Maintenance

Professionally maintained

USING IOTVirtual Operation

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Gartner Hype Cycle for Emerging Technologies

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Gartner Hype Cycle for Internet of Things

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Risks & Challenges with IOT

• Lack of Security

• Lack of Privacy

• Storage Issues

• Energy demands• Industrial IOT must Be Built for Maintenance and Updates

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Alternatives

• No alternatives have been in the market since IOT is making organization, efficient.

• Few organizations want to stick around with the manual tasks which has less efficiency and higher manual cost.

• Small scale organizations don’t want to implement because of high complexity and high investment.

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Future Scope (Recommendation)

• IoT and wearables create a higher level of personalization

• Consumer-facing industries will be changed by IoT

• IoT gets accountable

• The “Edge” will become a huge growth market

• “Big Data” IoT analytics will generate “Big Revenue”

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Conclusion

• Closer to being implemented

• Manufacturers and agencies are building small scale versions

• Legal and security issues are present so yet to make a greater

impact.

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References[1]http://www.datamation.com/data-center/the-internet-of-things-7-challenges.html [2]Harvard Business Review Article:How Smart Connected Products Are Transforming Competition[3]Harvard Business Review Article:How Smart Connected Products Are Transforming Companies[4] http://theiotportal.com/2016/10/10/10-innovative-applications-of-iot-3/[5] http://www.intelligenthq.com/technology/guide-internet-things-part-1-definition-concept/[6]https://hbr.org/2014/10/the-sectors-where-the-internet-of-things-really-matters[7]http://www.plasmacomp.com/blogs/top-iot-vertical-markets[8]http://www.gartner.com/newsroom/id/3412017

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