IoT: The Introduction
The Internet of Things (IoT) is a technology concept that is currently transforming and redefining virtually all markets and industries in fundamental ways.
The term “Internet of things” was coined by Kevin Ashton of Procter & Gamble, later MIT’s Auto-ID Center, in 1999, though he prefers the phrase “Internet for things”. At that point, he viewed radio-frequency identification (RFID) as essential to the Internet of things, which would allow computers to manage all individual things.
The past five years have seen an inflection point in which fragmented efforts to connect machines and sensors in industry-specific ways are now coalescing into a comprehensive vision of connectivity permeating the global physical environment.
The impacts of IoT on industry Three of the most important means by which the pervasive connectivity of the IoT will affect the economy as well as society are in the areas of automation, integration and servitization, “The primary drive for automation IoT is to significantly reduce operating expenditures when automation devices, sensors and actuators become Internet-enabled devices. It’s the next huge leap in productivity because there are major advantages to be derived from the acquisition and organization of previously unthinkable amounts of data”. (Pinto, 2012)
These features are interrelated in the sense that automation and integration are often employed in tandem to enable servitization. These three factors are explained in more detail below:
Automation: Connecting machines, sensors, and actuators to computing systems enables a large degree of process automation. For example, fleet management systems enable automatic logging of driving parameters such as hours in motion, removing the need for drivers to manually submit this information. Automation facilitates dramatically larger scales of data utilization as well. For example, jet aircraft engines typically produce several terabytes of data per flight on operating parameters.
Proactively monitoring this data feed enables faster resolution times in instances of performance faults and minimizes unnecessary maintenance services.
Integration: There are more benefits than simply connecting a machine and automating its performance. Integrating the data from a machine with data from other sources, such as the aforementioned ERP systems, open government databases, and social media feeds, greatly enhances the value derived from connecting the machine.
Servitization: Together, automation and integration help organizations move from primarily productcentered business models to service-oriented business models, also known as “servitization”.
Many traditionally product-centered companies are realizing the revenue opportunities offered by developing an ongoing, service-oriented relationship with customers, for example organizing a customer relationship on the basis of a service contract whereby the customer is paying for a negotiated business outcome rather than a piece of equipment.
In fact, automakers are increasingly talking about “mobility as a service” as a result of connected, and increasingly autonomous, vehicles as opposed to the traditional vehicle sales model.
Security Data and Privacy in IoT
Data security and privacy As IoT applications permeate industry and society, these applications create increasingly critical dependencies. For example, smart electric grids, connected cars, smart homes, and many other “smart” and “connected” IoT applications expose consumers and businesses to malicious attack and exploitation. The hostile parties posing this risk range from adolescents seeking a thrill to highly sophisticated and well-resourced state actors perpetrating cyberespionage.
The risks posed by inadequate IoT security are generally as follows:
Theft of data from the systems or theft of material items as a result of information gained illicitly from compromised systems.
Danger to health and safety from compromised systems not operating in the intended manner.
Loss of productivity from compromised systems not operating in the intended manner.
Loss of privacy from information gained from a compromised system or illicit access to information about a system’s operation.
Noncompliance with laws or regulations as a result of loss of data from a compromised system.
Damaged reputation as a result of losing customers’ sensitive data or harm to customers from compromised systems.
IoT security must be implemented at the device level and in the network, cloud, and enterprise back-end systems. Security must be ensured for data at rest (stored data), data in use (on a device), and data in motion (data transported across a network)
IoT Platforms Saving The Future:
What exactly is an “IoT platform”? This is a complex question due to the ambiguity of the varied uses of the term by the multitude of players in the IoT market. IHS defines an IoT platform as cloud-based and on premise software packages and related services that enable and support sophisticated IoT services. In some instances,we posit an end-to-end IoT technology architecture to guide “IoT solution development. This architecture links strategy decisions to implementation activities. It can serve as a playbook for establishing the vision for an IoT solution and for converting that vision into tangible reality”. (Holdowsky, Mahto, Raynor & Cotteleer, 2015)
IoT platforms enable application developers to streamline and automate common features that would otherwise require considerable additional time, effort and expense. In other instances, IoT platforms enable enterprises to manage thousands, millions, and even billions of devices and connections across multiple technologies and protocols. Finally, in some cases, IoT software enables developers to combine device and connection data with enterprise-specific customer and ERP data as well as data from third-party sources like social and weather data to create more valuable IoT applications.
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