internet of things innovations & megatrends update 12/14/16

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Internet of Things Innovations & Megatrends Update Wednesday, December 14, 2016 Mark Goldstein, International Research Center PO Box 825, Tempe, AZ 85280-0825, Phone: 602-470-0389, [email protected] , URL: http://www.researchedge.com/ Presentation Available at http://www.slideshare.net/markgirc © 2016 - International Research Center Arizona Chapter Phoenix Chapter

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Page 1: Internet of Things Innovations & Megatrends Update 12/14/16

Internet of Things

Innovations & Megatrends Update

Wednesday, December 14, 2016

Mark Goldstein, International Research Center

PO Box 825, Tempe, AZ 85280-0825, Phone: 602-470-0389,

[email protected], URL: http://www.researchedge.com/

Presentation Available at http://www.slideshare.net/markgirc

© 2016 - International Research Center

Arizona Chapter

Phoenix Chapter

Page 2: Internet of Things Innovations & Megatrends Update 12/14/16

Internet of Things (IoT) Presentation Outline

IoT Overview and Ecosystems

IoT Computing Platforms and Sensors

IoT Gateway and Network Connections

IoT Application Arenas

• Consumer and Home Automation

• Wearables

• Healthcare and Life Science

• Retail and Logistics

• Industrial

• Smart Buildings

• Smart Cities and Environment

• Transportation

IoT Security and Privacy

IoT Standards and Organizations

IoT Data Applications and Business Models

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IoT Overview and Ecosystems

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https://en.wikipedia.org/wiki/The_Third_Wave_(Toffler_book) (1980)

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Source: Teradata Corporation

Internet of Things Basics

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Source: Postscapes (http://postscapes.com/)

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Source: Postscapes (http://postscapes.com/)

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Source: Postscapes (http://postscapes.com/)

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Source: IDC & Peplink 2015

IoT Vision

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Source: TE Connectivity

IoT Adoption Landscape

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Source: IEEE Spectrum 10/16

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Typical End-to-End IoT Architecture Solutions

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Source:

CompTIA

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IoT Computing Platforms

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http://www.intel.com/content/www/us/en/

embedded/embedded-design-center.html

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Arduino Mega 2560

Raspberry Pi 2 Model B Nwazet Pi Media CenterNight Vision Camera Modules

MicroSD Card Adapter

BLE Mini Bluetooth 4.0 Interface

Arduino, Raspberry & Other Microcontrollers

Ultimate GPS BreakoutUDOO Quad Core w/SATA

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16GB NOOBS

SD Card

Raspberry Pi

Camera Board

PiFace Relay+

https://www.element14.com/community/community/raspberry-pi/

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Intel Galileo Microcontroller

http://www.intel.com/content/www/us/en/do-

it-yourself/galileo-maker-quark-board.html

Complements & extends the Arduino line of products

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https://www.raspberrypi.org/products/pi-zero/

The Raspberry Pi Zero is half the size of

a Model A+, with twice the utility. A tiny

Raspberry Pi that’s affordable enough

for any project!

• 1Ghz, Single-core CPU

• 512MB RAM

• Mini HDMI & USB On-The-Go ports

• Micro USB power

• HAT-compatible 40-pin header

• Composite video & reset headers

• Can utilize Raspbian Jessie OS Adafruit Raspberry Pi Zero Starter Packhttp://www.adafruit.com/products/2816

65 mm x 30 mm x 5 mm

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http://www.ti.com/product/cc2541

The Texas Instruments

CC2541 is a power-

optimized true system-on-

chip (SoC) solution for

both Bluetooth low energy

and proprietary 2.4-GHz

applications. It enables

robust network nodes to

be built with low total bill-

of-material costs. The

CC2541 combines the

excellent performance of a

leading RF transceiver

with an industry-standard

enhanced 8051 MCU, in-

system programmable

flash memory, 8-KB RAM,

and many other powerful

supporting features and

peripherals. The CC2541 is

highly suited for systems

where ultralow power

consumption is required.

TI CC2541 SOC

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Intel’s Edison computer is housed in an SD card form factor and comes with built-

in Linux and both Wi-Fi and Bluetooth wireless. The computer, which is based on

Intel's 22-nanometer Quark chips, can be the basis for a new wave of products

and will become available summer 2014. Source: eWeek

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Intel Curie Module Unleashing Wearable Device Innovation

http://www.intel.com/content/www/us/en

/wearables/wearable-soc.html

Intel’s Curie module is a complete low-

power solution for the wearable space

with compute, motion sensor, Bluetooth

Low Energy, and battery charging

capabilities.

Key Features:

• Low-power, 32-bit Intel Quark SE SoC

• 384kB Flash memory, 80kB SRAM

• Small and efficient open source real-

time operating system (RTOS)

• Low-power integrated DSP sensor hub

with a proprietary pattern matching

accelerator

• Bluetooth Low Energy

• 6-Axis combo sensor with

accelerometer and gyroscope

• Battery charging circuitry (PMIC)

• Released January, 2015

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Approximately 26 mm x 35 mm

https://software.intel.com/en-us/node/675623

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Netclearance Systems, Inc.’s (NCS) mBeaconSense hub embeds temperature, vibration,

accelerometer, magnetic, and light sensors into a 15mm x 20mm form factor making it the

industry's smallest beacon technology to incorporate multiple data sensors into one device.

Combined with the Netclearance Systems' Wi-Fi, Ethernet, and mesh gateways,

mBeaconSense enables multiple remote sensing capabilities in a single tag allowing for

streamlined, and cost-effective deployments. mBeaconSense includes everything necessary

to create next generation IoT sensing capabilities utilizing low power Bluetooth and Wi-Fi.

The mBeaconSense incorporates a near field communication (NFC) antenna and memory to

provide close proximity passive identification capabilities making the product both a hybrid

passive and active tag. http://www.netclearance.com/

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This summer, ASUS will launch a new type of Chrome device: the Chromebit.

Smaller than a candy bar, the Chromebit is a full computer that will be available

for less than $100. By simply plugging this device into any display, you can turn it

into a computer. It’s the perfect upgrade for an existing desktop and will be really

useful for schools and businesses.

Source: http://chrome.blogspot.com/2015/03/more-chromebooks-for-everyone.html

ASUS Chromebit Turns Any TV into a Chrome PC

• Rockchip RK3288 (with quad-core Mali 760 graphics)

• 2GB of RAM, 16GB of solid state storage

• Plugs into any HDMI-equipped display

• Dual-band 802.11ac Wi-Fi, Bluetooth 4.0, USB 2.0 port

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http://www.intel.com/content/www/us/en/compute-stick/intel-compute-stick.html

Intel Compute Stick

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IoT Sensors

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SunFounder 37 Modules Raspberry Pi B+ Sensor Kit

http://www.sunfounder.com/index.php?c=show&id=47&model=Sensor%20Kit%20for%20B+

Detailed tutorial, source code

& 32 lessons on project DVD

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“Horizon 2020: Sensors

Source: Telecom Italia

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Sensor Cluster Trends for Mobile Phones

(Inertial Measurement Units)

AMS AV-MLV-P2 is a volatile organic compounds (VOC) gas sensor which can detect

alcohols, aldehydes, ketones, organic acids, amines, aliphatic and aromatic hydrocarbons.

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Source: EDN Magazine

Wikipedia on Smart Dust:http://en.wikipedia.org/wiki/SmartdustWikipedia on Wireless Sensor Network (WSN):http://en.wikipedia.org/wiki/Wireless_sensor_network

Smart Dust Motes forWireless SensorNetworks(WSN)

Multihop Wireless Sensor Network

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Source: Fujitsu

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Source: Cymbet

Energy Harvesting Sweet Spot

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IoT Gateway and

Network Connectons

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Source: Intel

https://www-ssl.intel.com/content/www/us/en/embedded/solutions/iot-gateway/overview.html

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The NetComm 3G-4G and Wi-Fi Wireless M2M Router utilizes the speed and performance

capabilities of a LTE/4G network to deliver seamless M2M connectivity for a broad range of

M2M applications. The NTC-140W features two Gigabit Ethernet ports and high speed Wi-Fi

connectivity making it an ideal device for high speed networking. The device also features

vehicle voltage support, GPS and Ignition input making it ideal for mobile assets and

transportation applications. The NTC-140W creates point-to-point and point-to-multi-point

communication enabling the secure collection and analysis of data from remote and

unmanned applications. The NTC-140W’s powerful processor delivers optimal performance

and its embedded NetComm Linux OS and Software Development Kit (SDK) offers the end

user the capability to install custom firmware to the on-board flash memory via the

programming interface. Built in VPN clients also ensure a secure connection over a public

mobile network. See http://www.netcommwireless.com/product/4g/ntc-140w

NetComm NTC-140W

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EPM2M-LORA Wireless Gateway

Source: Embedded Planet

http://www.embeddedplanet.com/

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Telit m2m AIR Mobile Core Service

http://www.telit.com/

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https://octoblu.com/ (Now part of Citrix)

Full-Stack IoT Messaging and Automation Platform

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AWS IoT Architecture

Source: VDC Research

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Azure IoT Suite Overview

Source: VDC Research

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IoT Technology Data Rate and Range Needs

Source: Rohde & Schwartz

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Wi-Fi Ecosystem is Undergoing Change

http://www.wirelessdesignmag.com/article/2016/05/now-80211ac-wave-1-rolled-out-whats-next-wi-fi

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Why the Present 802.11 Technology is Inadequate:

• Absence of power-saving mechanisms: The energy constraints of sensor networks are not considered in the current IEEE 802.11 standard.

• Unsuitable bands: Due to their short wireless range and high obstruction losses, existing Wi-Fi bands require the use of intermediate nodes, adding complexity to the network.

IEEE 802.11ah Requirements to Support M2M Communications:

• Up to 8,191 devices associated with an access point (AP) through a hierarchical identifier structure

• Carrier frequencies of approximately 900 MHz (license-exempt) that are less congested and guarantee a long range

• Transmission range up to 1 km in outdoor areas• Data rates of at least 100 kbps• One-hop network topologies• Short and infrequent data transmissions (data packet size approximately 100 bytes and

packet inter-arrival time greater than 30 s)• Very low energy consumption by adopting power saving strategies• Cost-effective solution for network device manufacturers

IEEE 802.11ah Wi-Fi Approach for M2M Communications

http://www.ieee802.org/11/Reports/tgah_update.htm

http://www.techrepublic.com/article/802-11ah-wi-fi-protocol-for-iot-solves-two-m2m-problems/

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M2M Unlicensed Wireless Communications Comparison

Source: IEEE 802.11ah: The Wi-Fi Approach for M2M Communications Paper 10/14

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https://www.bluetooth.com/specifications/bluetooth-core-specification/bluetooth5

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Source: Ingenuhttp://www.ingenu.com/

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Typical Cellular IoT Use Cases

Source: 4G Americas

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Potential 5G Services Bandwidth & Latency Requirements

Source: GMSA, Heavy Reading

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Consumer and Home Automation

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The Smart Home as a Service combines web intelligence, smart home sensors,

data centers, with intelligence living in the cloud – all administered by service

providers. Source: Qorvo Low Power Wireless

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https://nest.com/thermostat/life-with-nest-thermostat/

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LEDs can be engineered to produce practically any desired spectrum of visible

light. Blue or violet LEDs pump mixes of phosphors, which down-convert some of

the light and mix with the pump color to produce something humans perceive as

white light. Near-monochrome LEDs, whose spectrum amounts to a single sharp

peak, can be mixed at varying intensities to produce light of any apparent color in

a wide gamut. Hue is controlled over WiFi. The bulbs and router talk amongst

themselves using a wireless mesh network protocol called ZigBee, IEEE 802.15.4.

Source: Phillips (http://meethue.com/en-us/)

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Sengled Pulse

AwoX StriimLIGHT

MiPow PlayBulb ColorKlipsch LightSpeakers

http://www.klipsch.com/lightspeaker-

in-ceiling-lighting-and-audio-systemhttp://www.playbulb.com/en/playbulb-color.html

http://www.awox.com/connected

-lighting/awox-striim-light/

http://www.sengled.com/product/pulse

LED Light Bulbs That Play Audio

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Japanese Super Toilet: This luxury toilet from Japan has controls for almost every

aspect of the bathroom experience. It can warm the seat, give a massage, play

music, adjust the height and temperature of the bidet stream (that plastic tube

allows the tester in the showroom to see the height of the stream without getting

water on the floor), and much more. It can even make flushing sounds -- without

actually flushing -- to cover up the sounds of embarrassing body functions.

Source: Contractor Magazine 4/15

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http://sandhill.com/article/the-empire-strikes-back-in-amazon-google-battle-royal-over-smarthome/

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Wearables

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Garmin vívofit

http://sites.garmin.com/vivo/

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Polar V800 GPS Sports Watch

http://www.polar.com/en/products/maximize_performance/running_multisport/V800

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https://www.apple.com/watch/

Shipping April, 2015

Apple Watch

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http://mimobaby.com/

Add Pacif-i

Bluetooth

Smart Pacifier

for Temperature

Mimo Smart Baby Monitor

http://bluemaestro.com/pacifi-smart-pacifier/

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Source: Beecham Research

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Source: Deloitte Tech Trends 2014

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“You can lie to me, you can lie to your trainer,

you can even lie to yourself, but you can’t lie to your Fitbit.”

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Healthcare and Life Sciences

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Source: The Atlantic Council & Intel Security

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http://internetofthingsagenda.techtarget.com/

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Micro-Systems Used in Healthcare Applications

Source: Yole Development

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Atomo Diagnostics is a medical technology company bringing next generation rapid diagnostic solutions to market and radically changing the way that we diagnose disease. AtomoRapid has launched in Africa and the UK, and USA market entry is underway. The AtomoRapid blood testing platform can accommodate test strips for a wide variety of conditions from celiac disease, allergy through to infectious diseases such as malaria and HIV. Also offering AtomoRapid to leading diagnostic companies interested in converting their rapid tests onto this revolutionary rapid test platform.

http://atomodiagnostics.com/

AtomoRapid Blood Testing Platform

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Source: IEEE Spectrum 11/14

Perspiration Biosensor Patches

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http://www.uh.edu/news-events/stories/2016/September/09272016-Researchers-Create-Glucose-Sensing-Contact-Lens.php

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A successful Kickstarter project with over $2.76 million in funding,

the SCiO pocket molecular sensor lets users scan and obtain

information about the chemical makeup of materials and physical

objects. Once an item is scanned, the chemical makeup is

compared against items in a cloud-based database, and the

information about the item is sent back to a smartphone. The device

is capable of scanning food (for nutritional information), medicines,

plants (for health purposes), oils, plastics, wood and more. The

device works by shining a light on an object and using a

spectrometer to analyze the properties of the light reflected back.

Source: Network World

SCiO Pocket Molecular Sensor

https://www.consumerphysics.com/myscio/

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http://tellspec.com/en/

Handheld Spectrometer for

Food and Environmental Sensing

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Medtronic Micra Pacemaker

http://newsroom.medtronic.com/phoenix.zhtml

?c=251324&p=irol-newsarticle&id=1883208 Ron Wilson

World's Smallest,

Minimally Invasive

Cardiac Pacemaker

Delivered directly

into the heart

through a catheter

inserted in the

femoral vein

at AZBio

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http://www.qualcommtricorderxprize.org/

DMI Tricorder Project

MESI Modular

Tricorder Concept

Cloud DX Bio

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Continua Health Alliance Enables the

Personal Health Information Network (PHIN)

Source: Continua Health Alliance (http://www.continuaalliance.org/)

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National Health Information Network (NHIN)

http://healthit.hhs.gov/portal/server.pt?open=512&mode=2&cached=true&objID=1142

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Arable's Pulsepod Collects Hyperlocal Weather & Crop Data

http://www.arable.com/

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Retail and Logistics

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Source: Cisco

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Beacon Enabled Local Retail Offer Service

Source: GSA

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Swirl iBeacon Platform and Ecosystem

http://www.swirl.com/

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Industrial

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Source: Intel

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Source: LNS Research

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Source: LNS Research

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Source: LNS Research

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Source: LNS Research

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Wireless Connection Technologies for Industrial IoT

Source: Texas Instruments

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Source: LNS Research

Flattening of the Industrial Networking Architecture

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Smart Buildings

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Creating an Intelligent Building Starts with Sensors and LED Lighting

Source: EEWeb Sensor Technology

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Enterprise Internet of Things (EIoT)

Source: Cisco

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Source: Memoori 2014

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Intelligent Buildings Value Chain

Source: Frost & Sullivan

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Smart Cities and Environments

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Source: FutureStructure Water, Waste & Energy Systems 6/14

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http://www.forbes.com/sites/jacobmorgan/2014/09/04/cities-of-the-future-what-do-they-look-

like-how-do-we-build-them-and-whats-their-impact/

Cities of the Future: What Do They Look Like, How

Do We Build Them and What's Their Impact?

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The Intel Intelligent Systems Framework provides a consistent framework for

connectivity, security, and manageability. Flexible developer ‘recipes’ use

scalable, off-the-shelf elements that in turn, shift resource investments from

interoperability to extracting value from data.

http://www.intel.com/content/www/us/en/embedded/intelligent-systems.html

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Source: Ayushi Agrawal/Apple 2015

https://www.linkedin.com/pulse/big-data-analytics-internet-things-ayushi-agrawal

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The Array of Things (AoT) is an NSF grant

funded urban sensing project to implement a

network of interactive, modular sensor boxes

that will be installed around Chicago to

collect real-time data on the city’s

environment, infrastructure, and activity for

research and public use. The nodes will

initially measure temperature, barometric

pressure, light, vibration, carbon monoxide,

nitrogen dioxide, sulfur dioxide, ozone,

ambient sound intensity, pedestrian and

vehicle traffic, and surface temperature.

Continued research and development will

help create sensors to monitor other urban

factors of interest such as flooding and

standing water, precipitation, wind, and

pollutants. See: http://arrayofthings.github.io/

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In a study of air pollution, a small pollution sensor was used to measure black carbon level

continuously, combined with an Android smartphone with CalFit software for recording GPS

information on user location. The indoor/outdoor study of 54 Barcelona schoolchildren was

associated with BREATHE, an epidemiological study of the relation between air pollution

and brain development. The researchers conclude that mobile technologies could contribute

valuable new insights into air pollution exposure. Source: Kurzweil AIhttp://www.kurzweilai.net/turning-smartphones-into-personal-real-time-pollution-location-monitors

Smartphones as Personal, Real-Time Pollution-Location Monitors

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Source: GSMA

Mobile Operators Can Enable Smart City Services

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Smart City Multidimensional Factors

Source: Beecham Research

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1) A growing adoption and awareness of the smart city concept by an expanding set of

government leaders. Not only does IDC see more demand for strategy development and

implementation road maps, but the requests come from cities, counties, states and central/federal

government agencies. We predict that by 2017, at least 20 of the world’s largest countries will

create national smart city policies to prioritize funding and document technical and business

guidelines.

2) A high variability in understanding the impact of the Internet of Things (IoT) and the

benefits and challenges that must be considered from new types of mobile and connected

things (drones, wearables, connected cars). We continue to see many of the same cities

investing in the smart city IoT, but even for cities with pilot projects, there is a lack of citywide

strategy at the level of guidelines for implementations. As such, we predict that in 2016, 90 percent

of cities worldwide will lack a comprehensive set of policies on the public and private use of drones,

sensors and devices. This will result in increased privacy and security risks. Similarly, we see a

more acute and faster adoption of public safety and transportation IoT investment, often without a

strategic framework, which IDC believes will lead to more project risk and wasted spending, such

as spending on duplicative systems or devices.

3) Information from social media, crowdsourcing and sharing economy companies will have

a greater impact on cities. Cities are grappling with how to ingest this data into systems and put it

to use. Not only is this data unstructured in the form of text, video, images and audio, but it also

comes from a variety of sources that exist independent of government. This presents a challenge

since data from these sources can be highly relevant and useful for improving government services.

The Waze traffic app is a great example of this — crowdsourced traffic information for commuters, if

integrated with systems in the transportation management center, would help operators update

digital signs more quickly, potentially adjust traffic signals and dispatch responders more quickly.

But getting this information into existing systems is not a simple task. Source: IDC

3 Smart City Trends to Expect in 2016

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Transportation

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Intel In-Vehicle Solutions on YouTube: http://www.youtube.com/watch?v=Lk2XNc7qyJ0

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Source: KPMG

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Source: Parks Associates

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Imaging Technologies for Automotive

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Vehicle Terminal Software Architecture

Source: Intel

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Intelligent Transportation with IoT

Source: Intel

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Intel’s Road to Autonomous Driving

Intel In-Vehicle Solutions on YouTube:

http://www.youtube.com/watch?v=Lk2XNc7qyJ0

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Plug-in Electric Vehicle (PEV) and Smart Grid Ecosystem

Source: Electronic Design Magazine 6/10

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IoT Security and Privacy

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Current technologies on the “privacy panic cycle”. (Adapted from Castro, D., & McQuinn, A.

(2015). The privacy panic cycle: a guide to public fears about new technologies.

Washington, D. C. Source: Information Technology & Innovation Foundation ITIF)

Privacy Panic Cycle

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Source: PubNub

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Internet of Things Security Attributes

Source: Hewlett Packard Enterprise

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Source: Atmel

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Internet of Things (IoT)

“Smart” devices incorporated into

the electric grid, vehicles including

autonomous vehicles, and

household appliances are improving

efficiency, energy conservation, and

convenience. However, security

industry analysts have demonstrated

that many of these new systems can

threaten data privacy, data integrity,

or continuity of services. In the

future, intelligence services might

use the IoT for identification,

surveillance, monitoring, location

tracking, and targeting for

recruitment, or to gain access to

networks or user credentials.

http://content.govdelivery.com/attachments/USODN

I/2016/02/09/file_attachments/496870/SASC%2B201

6%2BWWTA%2BSFR%2B-%2B9%2BFeb%2B16.pdf

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Source: Auth0 (https://auth0.com/)

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IoT Standards and Organizations

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Source: IEEE Computer - Imagineering an Internet of Everything 6/14

Information Flow Between the Cyber and Physical Worlds

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http://openinterconnect.org/

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http://www.upnp.org/

Universal Plug and Play Forum

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IoT Groups Merge Efforts

OIC taps UPnP, eschewing rival AllSeen

The Open Interconnect Consortium will acquire assets of and combine its

technologies with those of the Universal Plug and Play Forum, a fifteen-year old

group focused on automating links between PCs and peripherals typically over

Wi-Fi. By adopting the UPnP’s widely used service discovery software and likely

many of its members, OIC will bolster its position as an applications-layer

software stack for the Internet of Things.

All sides agree the IoT is encumbered with too many competing and overlapping

platforms, networks, protocols and frameworks as the result of a land grab for

what is seen as the next big thing. With the deal, OIC gets an edge over its closest

rival, the AllSeen Alliance. However it’s not clear whether it gets the heft it will

need to stand out against the two giants in this space – Google’s Thread/Weave

and Apple’s HomeKit.

Currently, AllSeen has a lead in the market with more than 185 members and

shipping products using its specifications. OIC, which has about 100 members,

expects first products using its recently ratified spec to appear at CES in January.

Both OIC and AllSeen are hosted by the Linux Foundation.

Source: EE Times 11/23/15

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http://www.eweek.com/networking/iot-standards-groups-ocf-allseen-alliance-merge.html

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http://www.iiconsortium.org/test-beds.htm

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http://www.w3.org/WoT/

http://www.w3.org/WoT/IG/

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https://www.shodan.io/

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IoT Data Applications

and Business Models

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Source:

Gartner

Top 10

Strategic IT

Technology

Trends for

2016

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Future X Network Enabling a New Digital Era

Source: Bell Labs Consulting

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https://www.abiresearch.com/pages/what-is-internet-everything/

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Internet of Things Data Value Chain

Source: Navigant Research

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Source: HP

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Why the Internet of Things Matters

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Source: LNS Research

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Source: HP

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Big Data and Analytics MaturityScape

Source: IDC 2015

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IoT Success Requires an Ecosystem of

Internal and External Partnerships

Source: Cisco

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https://cbi-blog.s3.amazonaws.com/blog/wp-

content/uploads/2016/10/Final-Graphic-2.png

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Internet of Things Playbook

Source: Navigant Research

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Internet of Things (IoT) Maturity Mode

Source: TDWI

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Internet of Things (IoT) Roadblocks Those making their first foray into connected products can improve the success of their IoT programs by

understanding the following hazards.

• Too many inputs and too much data – Having too much data is nearly as bad as not having enough.

It’s easy to get excited about the promise of new technology. But overdoing it on early programs can

result in data explosion that overwhelms IT systems as well as stakeholders.

• Too many alarms – Nothing guarantees organizational disengagement from a supposedly smart

system than many “false positive” errors. False alarms are the spam of the IIoT world. They drown out

the actual errors and condition stakeholders to ignore system feedback.

• Missed critical alarms – If false positives are frustrating, a false negative can be catastrophically

damaging depending upon the system. No notification or late notification of a potential safety concern

can cause product, personnel, environmental or secondary damage, and can bring the program into

question.

• Unclear guidance – Feedback must be actionable, correct, and timely to the multiple stakeholders

involved. Feedback that is unclear or requires time-consuming offline analysis substantially reduces

system value.

• Unprepared Organization – connected products often require “connected organizations”.

Organizations may need to work together in new and different ways to realize revenue and margin

projections.

• Customer Backlash – Even in cases where the customer clearly has the most to gain through a newly

connected product, there is a risk of customer backlash. Consumer privacy and security risks are

substantial concerns carrying the specter of legal action. Additionally, there is a risk of Government

charges. This US Federal Trade Commission Report provides a good overview of possible risks as

well as the FTC’s recommendations.

• Perceived cost versus benefit – Ideally, the success of an IIoT-enabled product would be easily

quantified. Cost for a connected product can be high, once infrastructure costs are considered. Costs

are often easier to measure than success, particularly if success is tied to lagging and less correlated

metrics such as customer satisfaction. Subjective comparison of cost versus success puts a program

at risk. Without positive proof of value and clearly defined and accepted targets, a single large adverse

event can undermine the program. Source: LNS Research

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Megatrends Driving Significant Profile Shifts

Source: Gartner 8/15

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Hype Cycle for Emerging Technologies

Source: Gartner 7/16

Internet of Things (IoT)

Note: Added by MG-IRC

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