VQ8 - The Internet of Things April 2016

The Internet of Things

March 2016

// The Internet of Things can radically change value propositions. It can enable fast new entrants and totally re-shape a sector. Do you know how it might aff ect your organisation, your customers, your suppliers, your industry?

VQ Insights, trends and opportunities for the Vistage community.

VQ Mar16 IoT Issue FINAL.indd 1VQ Mar16 IoT Issue FINAL.indd 1 09/03/2016 17:0609/03/2016 17:06

VQ | The Internet of Things 3

Contents

18// RFID – What is it?Similar in some ways to barcodes, but with RFID, each RFID tag can be unique to identify a specifi c object – not just the type of object.

11

// The NEST Learning Thermostat

A smart heating controller from the Google-owned company, Nest, developed to save energy on heating or cooling the home.

17

The Internet of Things EcoSystem

Case Studies

06 // IoT Overview A new ‘wave’ of technology that involves the

connection of billions of devices with the Internet.

09 // IoT Sensors Sensors are the fi rst step in the Internet of Things…

12 // Connectivity Several diff erent technologies are available with

diff erent strengths and limitations.

15 // Smart Products Smart Products are in every area of life…

18 // The IoT Ecosystem IoT Ecosystems open up a traditional application or

industry to create a much broader opportunity…

26 // Security and Privacy What are the risks and how can you manage them?

30 // BIG Data The IoT is generating multiple terabytes of data

every day…

Main Features

EDITOR Steve GilroyCEO Vistage International (UK) [email protected]: 01489 770200 EDITORIAL PRODUCTIONPenny DablinEnterprise Marketing Solutions [email protected]: 01296 737823 ART DIRECTOR/GRAPHIC DESIGNKaren BrainThink [email protected]: 0845 643 5311 PUBLISHERVistage International (UK) LtdVanbrugh HouseGrange DriveHedge EndHampshireSO30 2AFTel: 01489 770200Fax: 01489 770270

Publishing

Copyright © 2016 Vistage International (UK) Ltd. All rights reserved.Vistage provides the information contained in this document to stimulate thought and discussion. We work hard to ensure that the information presented is accurate at the time of publishing, but you should take independent advice before acting on any information presented.

No part of this document can be reproduced in any form without the written permission of Vistage International (UK) Ltd.

34 // Think the IoT doesn’t apply to your industry?

Think again…

37 // Implications for Business What does the Internet of Things mean for you?

41 // Re-thinking your Strategy The Internet of Things is radically changing the

way we live...

42 // In Conclusion The IoT... We just can’t aff ord to ignore it.

24 // Vistage: Ben Wales, 3gamma

25 // Ed Liversidge, Harmonic

28 // Vistage: Julian Ranger, Digi.me

29 // Ashley Shone, AVNET

40 // Roger Hazelden, Conekt

// Milton Keynes – SMART City

How Information Technology and data analytics can be used to drive sustainable growth.

31

// Apple iBeaconSince Apple introduced iBeacon technology several companies have entered the beacon market, developing transmitters and associated apps.

36

Vistage is...“A gym for your business,to get fit er and faster,or relax and refle t”

Stephen BrownMD, Euro Projects Recruitment

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VQ | The Internet of Things 5

Xwww.wired.com

Xwww.cisco.com

Xwww.theinternetofthings.eu

Xwww.forbes.com

X www.theguardian.com/uk/technology

Xwww.telegraph.co.uk/technology

X www.mckinsey.com/industries/high-tech/our-insights/the-internet-of-things

Xwww.iofthings.org

X dupress.com/articles/iot-primer-iot-technologies-applications

Xwww.3gamma.com

Xwww.digi.me

Xwww.avnet-embedded.eu

Xwww.harmonicss.co.uk

Xwww.conekt.co.uk

F or most of us, our work and home life now revolves around a 24x7 connected world, enabled by mobile phone technology and WiFi. We’ve also moved beyond email and websites to a world of thousands of discrete apps that deliver small chunks of information on demand, and many also interrupt us and tell us what is

going on, what we should be doing and what others are doing – whether we like it or not.

Over the past few years, a new range of smart products have also entered our lives. From fi tness trackers to intelligent toothbrushes, smart TVs and connected cars, we’ve now entered a new world, where it’s not just people who are connected. All around us the devices, the machines, the equipment we interact with (and many that we don’t) are now also connected; to each other, to bigger systems, to the world at large.

From an entirely personal point of view, as someone who is from the technology industry and whose family is defi nitely a set of ‘early adopters’, I’m not really sure we’ve fully grasped what is happening or what is coming. We buy the products, connect them to our WiFi and phones. We click on license agreements, we share our profi les and data and we join all sorts of communities. Do we really understand how all of this connects, how our data is actually being used across all of the systems and platforms?

And what about the information that the devices and products collect without us being fully aware (of course the manufacturers would point us to the license agreements and terms and conditions – it’s all in the small print)? If I buy a connected car, then I have no choice in what it collects, what it shares. If I buy that shiny new toothbrush, I’m also signing up for data being collected on my brushing habits. For individuals then, there are many hidden implications of this new connected world.

For businesses, the implications are even bigger. Traditional products, services and even entire sectors could be at risk by the changes coming from the Internet of Things. But equally, brand new products, new services, new effi ciencies, new business models, new markets can also be enabled. At fi rst glance it’s only the obvious sectors

// From the Editor

Steve Gilroy | CEO, Vistage UK

Have you got a comment or suggestion for future VQ topics? I’d love to hear your thoughts: [email protected]

16 Business Leaders. 1 boardroom. Endless possibilities.

Since 1957, Vistage has been bringing together successful MDs, CEOs, executives and business owners into private advisory groups. Each group is purpose-built to help members help each other improve the performance and outcomes of their business.

In our confidential roups, about a dozen executives meet once a month to solve problems, evaluate opportunities and work on an assortment of strategic and operational issues. Our 20,000 members around the world represent a wide range of industries and a variety of backgrounds.

To find out more about how you can develop and grow your business contact Tim Ponsford on 01489 770237, email [email protected] or visit vistage.co.uk

Vistage is the driving force behind all of my major decisions

Vistage is my route to business growth and innovation

Vistage is where I go to get my answers questioned

p USEFUL WEBSITES

BIG Data 0

Implications of IoT for Business Page 37

See the Internet of Things Infographic on pages 22-23

that are aff ected – consumer products, the car industry, home appliances etc. But look more deeply and you’ll fi nd that all sectors are aff ected. The Internet of Things can radically change value propositions. It can enable fast new entrants and totally re-shape a sector. Do you know how it might aff ect your organisation, your customers, your suppliers, your industry?

This issue of VQ explores the Internet of Things from the perspective of business. Whatever business or organisation you lead, the information we’ve compiled and presented should enable you to consider how to protect your business and exploit new opportunities provided by The Internet of Things.


http://www.cisco.com

http://www.theinternetofthings.eu

http://www.forbes.com

http://www.theguardian.com/uk/technology

www.telegraph.co.uk/technology

http://www.mckinsey.com/industries/high-tech/our-insights/the-internet-of-things

http://www.iothings.org

http://www.dupress.com/articles/iot-primer-iot-technoligies-applications

http://www.3gamma.com

http://www.digi.me

http://www.avnet-embedded.eu

http://www.harmonicss.co.uk

http://www.conekt.co.uk

http://www.wired.com

VQ | The Internet of Things 76 March 2016 | VQ

IoT Overview

TAKING A BROAD VIEW, Information Technology (IT) has actually established itself as a series of ‘waves’. The fi rst wave of IT was the development of the computer. Originally developed to assist military mathematicians the early computers used vacuum tubes that took up huge amounts of space and power. With the development of transistors, computers entered the business marketplace with larger companies setting up air-conditioned, temperature controlled computer rooms to house them. Banks of tape drives, and later, disk drives allowed for data storage. Punched card decks and dumb terminals enabled programmers to interface with the machines.

While big and unwieldy these fi rst computers revolutionised data processing. Suddenly it was possible to handle more data, and perform complex calculations more quickly than ever before. This led to multiple uses within industry and commerce including the automation of fi nancial and accounting functions. It also allowed for much greater and more eff ective data management such as storing information regarding pensions and insurance.

The second wave brought us the Internet and the personal computer (PC). Within a very short time computing power became available to everyone in their own home. The technology was there for individuals to use as they wished. From the calculating power of spreadsheets and word processing, through to desktop publishing and games. Within businesses the advent of PCs meant the end of the typing pool as executives started to do their own typing. And with the Internet there was much more co-ordination and integration of processes across diff erent locations. It became possible to set up and monitor global supply chains, send data and messages instantly and publish/share information on a global basis.

We are now in the third wave of Information Technology, where individual devices are becoming intelligent and ubiquitous. Smartphones with software apps collect and distribute data, sensors have become so small and cheap that they can be used everywhere. The devices are in our cars, in our home appliances (smart washing machines and refrigerators), in our offi ces, factories and retail stores.

The Internet of Things (IoT) is a term that describes a new ‘wave’ of technology that involves the connection of millions (or billions) of devices with the Internet. These devices span many diff erent industries and applications, and they range from simple sensors/controls (e.g. the home thermostat) to more complex ‘smart

products’, software systems that collect and exchange data, make decisions and take action remotely – sometimes without the intervention of human beings!

When wireless is perfectly applied the whole earth will be

converted into a huge brain, which in fact it is, all things

being particles of a real and rhythmic whole...

...and the instruments through which we shall be able

to do this will be amazingly simple compared with our

present telephone. A man will be able to carry one in his

vest pocket.

There have been various milestones on the way to a fully connected world. In 1926 the genius and visionary Nikola Tesla foresaw the development of IoT when he was quoted in Collier Magazine:

Since that point technology has developed and expanded at an ever-increasing rate to the point where the world is rapidly becoming fully connected.

The term Internet of Things was fi rst coined by Kevin Ashton in 1999 as the title of a speech he gave at Proctor and Gamble on technological advances and the idea of linking RFID with the Internet. With the introduction of IPv4 (Internet Protocol 4) in 1981 and the proposition of the Worldwide Web in 1989, the systems integration and connectivity that is referred to as the Internet of Things became possible.

History of the Internet of Things

Smart ProductsPRODUCTS ARE NOT ONLY collecting and transmitting data, they are becoming smart. This is creating fundamental changes in the way businesses operate and how they can communicate with their customers, suppliers and prospects.

Today’s smart products include a multitude of diff erent sensors with connectivity (see section on Smart Devices). As an example, a car consists of various physical parts – the engine, tyres, chassis, seats etc. At the same time it contains sensors that relay information from fuel level, engine warning lights that indicate that a service is necessary, and diagnostic information to the garage mechanic. The latest models include connectivity so they can be monitored and manipulated from a distance.

There is an enormous range of smart products already and this is expanding rapidly. Already we have smartphones, wearables to track exercise, smart toothbrushes that monitor our brushing habits and smart washing machines that sense the wash load and adjust as needed and there’s even a smart high chair that tracks your child’s weight as he/she grows! And, of course, there are a multitude of smart sensors across industry and our workplace, from intelligent photocopiers to offi ce entry/security systems that know who you are and where you are. Devices are everywhere and the number of them is simply staggering.

During 2008 the number of devices connected to the Internet surpassed the number of human beings on the planet. Estimates suggest the number of connected devices will reach 50 billion as soon as 20201. As devices fi nd their way into all aspects of our home and work life, it presents both challenges and massive opportunities for those that are well prepared.

The number of connected

devices will reach 50

billion by

2020

Third Wave of Information Technology

Y First Wave – ComputingRevolutionary for the business marketplace, with larger companies setting up air-conditioned rooms to house these large unwieldy machines.

YSecond Wave – Personal Computing Technology became available for everyone in their own home, along with the Internet.

YThird Wave – Mobile Computing Cheaper and accessible individual Smart devices are utilised to collect and distribute data.

During 2008 the number of devices connected to the Internet surpassed the number of human beings on the planet.

IN ADDITION TO the smart devices that collect, transmit and receive data, the IoT requires connectivity. The Worldwide Web where everything is connected to everything else is a massive network of linked devices, connected together via the Internet and various methods of mobile phone, radio and other forms of communication.

Connectivity enables communication of a product with its environment, with its manufacturer, with other users and with other products and systems. It also enables the functionality and “intelligence” to be separated from the sensor level, held in the cloud and used by other processes. All of which requires machine-to-machine communication, where no human intervention is needed or sought.

Examples of Machine-to-Machine (M2M) communication cover many diff erent industries including farming/agriculture, transportation, retail and even the entertainment industry.

In farming there are collars worn by cows that transmit up to 2mb of data a day to the monitoring computer relaying

Connectivity

Nikola Tesla (1926)

...and the instruments through which we will be able to do this will be amazingly simple compared with our present telephone. A man will be able to carry one in his vest pocket.



Another aspect of the IoT is the fact that all of the M2M communications, and the billions of devices, are actually collecting a massive amount of data – BIG DATA.

Some of this data collection is benign and useful – tracking the wear and tear on your car engine enables you to have the car serviced when needed and could avoid breakdown or accident. Collecting data on how we heat our homes might not only help us to manage our own energy uses, but on a street-wide or city-wide basis it might also allow us to see ‘bigger pictures’ of our habits, needs and behaviours.

For business, the opportunities presented by BIG DATA are sometimes obvious, and sometimes absolutely not obvious. Discovering what people do with your product may help you to understand how your customers are using your product, how the product is functioning and so you might be able to be more effi cient, to sell more or to support your customers in a better way.

However, as economist Tim Harford warns in the 2014 Signifi cance Lecture – The Big Data Trap2 – we must beware confusing correlation with causation. Just because something happens together with something else does not mean there is a connection. For example, if data tells you that people leave their home at 7am (smart home security), and that they are in their car moving away from their home (smart car and GPS) then maybe we could automatically reduce the heat in their home (smart thermostat and heating system). But what if they owned pets that needed a certain temperature to be maintained at the home?

How you analyse the data and the conclusions drawn from it need to be very carefully considered – the implications might be much more serious than the above example.

WHAT DOES THIS MEAN FOR BUSINESS?THE IoT PRESENTS MASSIVE POTENTIAL AND POSSIBILITY. Even small businesses can now leverage the IoT and create new services, be more effi cient, off er new products.

But there are also challenges and potential threats to businesses of all sizes, in all industries.

It is now far easier for competitors to enter your space. They can be remote, new, small, and may not come from your sector at all. Your entire product/service could be threatened by what the IoT enables.

And there is the whole area of security. There are lots of recent examples of hackers and scammers trying endlessly to break into the systems that enable and deliver the IoT. Your property may be at risk, your data and personal identity, and your business itself could be threatened by a weakness in security.

The following sections explore the diff erent aspects of the IoT in greater detail, and should enable you to consider the likely impact or opportunities for your business■

As can be seen from the diagram, within the IoT, Sensors gather data and transmit it over Networks to intelligent software (Augmented Intelligence) that can interpret the data and determine what actions need to be taken (Augmented Behaviour). That action is often to be performed by another machine, which in turn will have sensors. And so the cycle repeats. Over the whole cycle are the Standards and Security considerations. In addition, each sub-ecosystem within the Internet of Things can potentially communicate with other sub-ecosystems to create a whole system such as a Smart City.

SECURITY STANDARDS

Action instructions

Create data

Aggregate and analyse data

Communicate data

AUGMENTEDBEHAVIOUR

NETWORKS

SENSORS

AUGMENTEDINTELLIGENCE

Figure: The IoT Ecosystem based on Deloitte’s Information Value Loop3

1 http://readwrite.com/2011/07/17/cisco_50_billion_things_on_the_internet_by_20202 https://m.youtube.com/watch?v=0cizsKDn3TI3 http://dupress.com/articles/iot-primer-iot-technologies-applications/

Big Data

The IoT Ecosysteminformation about the cows’ behaviour patterns. The software can recognise abnormal patterns that indicate a particular animal is sick or in season so the farmer can take the necessary action.

With transportation we already have ‘keyless’ cars that will unlock and even start up simply because the car ‘knows’ that you have the key on your person somewhere – you no longer have to insert it into the lock! We’re also paying for train and bus journeys with a fl ash of a mobile phone or ‘touchless’ credit card. The timing of traffi c lights can be automatically altered depending on traffi c fl ows that have been measured by tapping into drivers’ GPS systems. And of course, there is the automatic tracking of parcels and deliveries using radio-frequency identifi cation (RFID) tags.

p

j

p

SENSORS

WHAT ARE THEY AND WHAT DO THEY DO?Sensors are the fi rst step in the Internet of Things. They detect or monitor a specifi c condition or behaviour before collecting the data and transmitting it to other devices on the network. Sensors come in many diff erent shapes and sizes for diff erent uses. Examples include temperature sensing, noise, vibration, proximity, position, whether something is open or closed, they can measure speed, pressure, direction and more.

j

INTERNET OF THINGS

Picture courtesy of news.silabs.com



FOR AN OVERVIEW OF THE RFID SECTOR and the latest news see the RFID Journal online at rfi djournal.com

RFID standards are developed and issued by a number of diff erent bodies including EPC Global, the International Electrotechnical Commission (IEC), ISO (International Standards Organisation) and the European Telecommunications Standards Institute for standards in Europe.

The International RFID Business Association (RFIDba)1 is a not-for-profi t, educational, vendor neutral, technology and frequency agnostic trade association dedicated to educating the end user community who may be interested in implementing RFID technologies in their enterprise.

Another avenue for information and possible partnership is the RFID Advanced Research2 based at the University of Derby. They are actively supporting companies in assessing their operations for RFID adoption, together with enhancing economic competitiveness in production and supply chain operations.

Another generic type of sensor is a temperature sensor. Temperature sensors are used in all sorts of applications. Apart from the obvious home heating thermostat applications, a temperature sensor can be used in applications such as car heating/climate control, laser or inkjet printers (some printers need to maintain a certain temperature to print), baby monitors, laptops (ever wondered what turns on the cooling fan in your laptop?), washing machines, refrigerators and so-on. Again, one single generic temperature sensor device can be used for all of the above and more. A specifi c example is the Silicon Labs Si705 Digital Temperature Sensor.

This sensor is only 3mm x 3mm, and it can measure temperatures from -40ºC to +125ºC, with an accuracy of 0.3 degrees. It can operate on a single watch battery for up to 10 years!

Another type of sensor is a humidity sensor. Humidity sensors are used to ensure living, storage and manufacturing areas are kept in optimum conditions. Control of relative humidity is vital for the preservation of many diff erent materials including medicines, foods, fabric, paper and wood products. Too much humidity can lead to mould and increased insect activity while too little humidity can cause materials to become brittle and fragile.

An example of a humidity sensor is the Si7005 from Silicon Labs. This sensor is 3mm x 3mm and uses a polymide fi lm to detect changes in humidity. The humidity sensor is paired with a temperature sensor as relative humidity is dependent upon ambient temperature.

WHATEVER IOT ENABLED PROJECT YOU WANT TO CREATE, it all starts with the sensors. Determine what data you need to collect and which sensors will work best for you. These sensor chips can then be included in your IoT product design along with the electronics for logic control and for relaying of information through connectivity – see next section.

p

It all starts with the sensors...

F or wearable products such as health monitors (e.g. Fitbit, Apple watch, Jawbone etc.), the device inside is generally measuring temperature, pulse rate etc. by emitting a tiny light source and then measuring the interruptions

in light refl ected back from your wrist. The same function of emitted light and measuring an interruption or strength of what is refl ected back can be used for many diff erent applications.

For example, a single sensor (e.g. Silicon Labs Ambient Light/Proximity Sensor) can be used in IoT applications for:

p Heart rate and pulse monitoringp Touch-sensitive controls or displaysp Smoke detectorsp Occupancy sensingp Detecting the presence of an object, liquid etc.

The sensor is tiny – 2mm x 2mm, and consumes very little power (9 µA – that’s 9 micro-amps) and can transmit data at up to 3.4 MBps. It can also detect light at ranges from under 1cm (e.g. wearable wrist band) to up to 2m (e.g. occupancy detection).

X This RFID tracking device for pets and farm animals is no bigger than a grain of rice and can be easily injected under the skin of the animal without any irritation.

...wearable health monitors measure pulse rates and temperature by emitt ing a tiny light source and measuring any interruptions or changes in light strength.

Y The Si705 Digital Temperature Sensor is only 3mm square and it can measure temperatures from -40ºC to +125ºC, with an accuracy of 0.3 degrees.

The tags consist of an integrated circuit (known as a chip) attached to an antenna printed, etched or stamped onto a mount. They are extremely thin and can be sandwiched between a printed label and its adhesive backing. Each chip is pre-programmed with a tag identifi er together with a memory bank to store the item’s unique tracking ID. Other RFID tags look like small pills and can be bullet shaped or shaped like small coins. Some have their own tiny battery so can power themselves for months or years. Others can draw a tiny amount of power from radio waves.

RFID readers transmit electromagnetic waves to ‘seek’ for tags. The tags, in turn, can draw power from a fi eld created by the reader to power the RFID microchip. The chip then modulates the waves and the tag sends signals back to the reader where they are converted into meaningful data about the RFID identity.

RFID can be used over distances of a few inches to 30-50 metres depending on the type of tag and type of reader. For the longer range uses, the individual tags need to have their own battery power source.

– WHAT IS IT?Radio Frequency IDentifi cation (RFID) is the term for technology that uses radio waves to uniquely identify people or objects. It’s similar in some ways to barcodes but with RFID, each RFID tag can be unique and can therefore identify a specifi c object (not just the type of object).

RFID is already in use in many diff erent applications including:p Tracking farm animals and pets (tags can be inserted under the

skin or held within a plastic animal tag that is fi xed to the animal).

p Tracking products on a production line

p Tracking high value assets such as tools

p Payment systems – to identify who is paying

p Security – controlling access to places or networks (staff door

entry cards or badges have RFID tags within them)

p Authentication of frequently counterfeited pharmaceuticals

p Entertainment

p Sports training

RFID

An RFID system comprises 2 parts – a tag and a reader.

1 http://www.rfi dba.org2 http://www.therfi d.com

A single generic temperature sensor device can be used for thermostats, car climate control, baby monitors, printers, cooling fans, washing machines, refrigerators...



Within the IoT, there are several diff erent connectivity technologies that could be used – all with diff erent strengths and limitations. The type of connectivity used will generally depend on the following:

Connectivity Options and Considerations

■ Power consumptionSome smart devices need to be portable (e.g. smart toothbrush,

wearable health monitors etc.). So their power source (generally a rechargeable battery) needs to be able to power the device itself and its connectivity. A wearable device generally needs to have a battery life of 10+ hours to be practical.

■ Speed of data transferSome devices will collect tiny pieces of data (e.g. room temperature), and so will have very little data to collect and share. Other devices may collect lots of data that is updated frequently and needs to be shared or transmitted at high-speed (e.g. in-car sensors

monitoring speed, video systems

sending video etc.). These ‘data-hungry’ devices need connectivity that can transfer large amounts of data at high-speeds.

■ Distance of rangeIf an IoT device only needs to transmit over a few metres, to a data collection point or other device, then the connectivity system can be simple. On the other hand, if data needs to be transmitted over some distance, then a higher-strength system such as the mobile phone network might be needed.

■ The systems or networks availableAlthough there are some IoT connectivity technologies that were developed primarily for the IoT, many IoT systems make use of existing platforms such as WiFi or the mobile phone network. Even with these, there are benefi ts and limitations to be considered.

Select your network connectivity carefully

Connectivity within the IoT

CONNECTIVITY RANGE POWER USAGE NETWORK SIZE DATA RATESBluetooth up to 10m Low 1-20 devices 2 MBpsWiFi up to 100m High 250+ devices

if required100 MBps

ZigBee Short range Low Can be thousands 250 KBps (usually much lower)

LoRaWAN High Very Low High LowRFID Medium Very Low High LowCellphone technology 4G/5G

Fairly short(has deadspots)

High High Medium/High

The second stage of the IoT value loop is Connectivity. Devices that simply monitor things and collect data are of no use unless they connect to other devices or systems which can then make use of the data in some way.

LoRaWANLoRaWAN is a long range wide area network developed to meet the requirements of Smart City communications. It has been designed to utilise small amounts of data infrequently to conserve battery life. In this way batteries on the sensors in the fi eld can last up to 10 years. Data can be transmitted from 3km to 5km within cities and up to 15km in rural areas where there are fewer buildings to block the signals. Security has been built into the LoRaWAN standards as double encryption. More information can be obtained from the LoRa Alliance (www.lora-alliance.org).

RFIDRFID or radio-frequency identifi cation is another wireless technology that uses electromagnetic fi elds to transfer data. An RFID chip is about the size of 2 rice grains so it’s easy to attach to product tags and to clothing. RFID is used extensively on assembly lines to track a product throughout the production process. The chips are also used widely in farming applications (animal tags to identify a specifi c animal, track location, record treatments, etc.).

Several professional rugby teams now use RFID chips in the pockets on the players’ shirts. During games the positional data from every player is being continually transmitted allowing for greater entertainment for the crowds during the matches. After a match the same data can be used by trainers and coaches to improve player positioning and eff ectiveness.

Bluetooth and Bluetooth Low EnergyBluetooth technology is a wireless technology using short wavelength radio waves. It was originally developed for mobile phone hands-free use transmitting signals between the phone and the headset wirelessly. It has a short range of up to 10 metres and fairly low power usage. The connections tend to be one-to-one between paired devices although up to 20 devices can be connected together if required.

Bluetooth Low Energy was designed for lower data throughput, this reduces the power consumption needs of Bluetooth devices so they can run for years on one small coin battery. This has enabled new applications in many diff erent arenas including health, fi tness, toys, automotive and more.

WiFiWiFi was developed to replace wired systems and has proved very popular as a way to access the Internet remotely. WiFi systems are now found in most homes and offi ces and the ease and inexpensiveness of use has led to the proliferation of businesses off ering free WiFi to their customers including airports, cafés and even trains. Although WiFi can reach for up to 100m it is easily blocked by electronic equipment and some building materials so in reality it tends to have a range of within the building and immediate surrounds.

ZigBeeZigbee uses high-frequency radio bands and is utilised mainly in domestic and offi ce environments with applications such as smart energy, home automation and lighting control. The Zigbee systems are self-contained and need a further gateway to connect to the Internet. It is a low-throughput, low power and low cost technology. More information can be obtained from the Zigbee Alliance (http://www.zigbee.org).



4G4G (Fourth generation mobile telecommunications) was a technological leap from the previous 3G mobile system. In place of circuit-switched telephony, 4G is an Internet Protocol based communications system based on an all-IP packet switched network. It off ers peak data rates of up to 100 Mbit/s for high mobility users (e.g. on moving trains and cars) and a peak data rate of around 1Gbit/s for low mobility users such as pedestrians.

The higher data rates and Internet connectivity mean you can stream videos and live television direct to your mobile phone, engage in video conferences with ease, and access the cloud for on the move connectivity and business.

While this is a major step forward there are still issues that need to be addressed including poor signal strength in remote areas, the overloaded bandwidth, and the need for ever faster communications.

5G5G or fi fth generation mobile telecommunications, aims to address these issues over the next few years. While still in its conceptual state, some of the stated aims for 5G include:

■ Network system capacity up to 1000 times 4G capacity

■ Data rates of up to 10 times 4G rates (1Gbit/s for high mobility users and 10Gbit/s for low mobility users

■ Spectral effi ciency and energy improvements in the order of 10 times 4G levels

5G should result in broadcast quality services and make lifeline communications in times of disaster much more eff ective.

The ultimate aim is to connect the whole world and achieve seamless communications between anybody and anything, anywhere, at any time, anyhow.

In September 2015, the 5G Innovation Centre at the University of Surrey was offi cially opened. This is the world’s largest academic research centre dedicated to the next generation of mobile and wireless connectivity. The Centre houses over 170 researchers and has attracted over £70 million of investment. It brings together leading academic expertise and major industry partners to defi ne and develop a global 5G network that will make a radical diff erence across the world. Researchers at the Centre have already developed a technology demonstrating speeds of one terabit per second, more than 1000 times faster than the highest 4G speed. The 5G Innovation Centre is at the forefront of 5G development and IoT expansion in the UK.

We’re used to using web addresses via our PCs, Laptops and Mobile devices; we simply type in a web address and the Internet responds with the appropriate website. Behind the scenes, our web address is actually translated into a specifi c address number – the Internet Protocol (IP) address. When the Internet was fi rst conceived computing was limited to massive mainframe computers, then along came personal computers. When IP addressing was conceived, a coding system was developed (IPv4) that allowed for a possible 4 billion diff erent addresses – more than enough at the time!

However, as we started to collect mobile devices, the demand for IP addresses started to grow. When IoT devices started to appear, each needed its own individual IP address, and so the 4 billion-odd IP addresses allowed by IPv4 were nowhere near enough.

IP ADDRESSESMaking the Internet of Things Possible

To address that problem a new IP address standard was developed – IPv6.

IPv6 uses hexadecimal representation of 8 groups of 4 hex digits. Each group represents 16 bits and the whole allows for up to 2128 addresses. That’s approximately 340 x 1036 or 340,000,000,000,000,000,000,000,000,000,000,000,000. Hopefully that will be enough addresses to enable the IoT!

For those interested, the theoretical capacity for internet addresses is now:340,282,366,920,938,463,463,374,607,431,768,211,456

For those wondering how you actually say this number, it’s as follows:340 undecillion, 282 decillion, 366 nonillion, 920 octillion, 938 septillion, 463 sextillion, 463 quintillion, 374 quadrillion, 607 trillion, 431 billion, 768 million, 211 thousand and 456!

While 4G and 5G are mobile technologies, WiFi is the short range wireless broadband technology favoured by mobile users. According to the WiFi Alliance, 71% of all mobile communications is over WiFi networks ■

■ Take a few minutes and think about your home, your offi ce, your life.

■ How many SMART products can you identify?

SMART PRODUCTS

Sensors are the fi rst step in the Internet of Things. They detect or monitor a specifi c condition or behaviour before transmitting it to another device or network. Smart Products work by incorporating one or more sensors into a device or product. The Smart Product may also store or collect data over time, and may allow the transmission of the data to other devices or systems. Smart Products may also allow a user to interact with the product in some way – for normal use, confi guration, linking to other systems etc.



RetailSeveral large retailers, including Bloomingdale’s,

have set up smart changing rooms. Customers can select and order garments in diff erent sizes and colours from a tablet device in the changing room. The goods are then selected from the warehouse and delivered to the changing room. Thus using IoT allows the store to wow the customer with exceptional customer service.Other instances of the IoT becoming all pervasive include the Hello Barbie doll from Mattel. This Internet-linked toy can hold a conversation with the child.There are television sets that know what you’re watching and can deliver individually targeted advertisements. We’re used to seeing targeted ads when browsing the Internet as sites track where you’ve been and what you’ve looked at, now with the latest TV sets you can expect to see targeted ads while watching repeats of Morse, or the evening news. The same TV sets will also monitor your watching and suggest programmes you might like to consider.

AgricultureCow collars have been in use for several years now at the

most progressive farms. These collars relay information wirelessly back to the farmer’s central monitoring station and the behaviour of each individual animal is analysed by the software. In this way the farmer can be alerted to a sick animal or advised when an animal has come into oestrus, or is ready to calve. All signalled by subtle changes in behaviour that would not necessarily be immediately obvious to the naked eye. Crop farmers are also using connected technology to make their farms more effi cient. Soil samples can identify the need for watering or fertilising and can automatically turn on irrigation systems or trigger the fertilisation routine. Being able to respond more immediately to these type of signals reduces crop failures, increases yield and reduces the manpower needed to run farms ■

NEST LEARNING THERMOSTAT

THE NEST LEARNING THERMOSTAT IS A SMART HEATING CONTROLLER from the Google-owned company, Nest, developed to save energy on heating or cooling the home. The system is made up of a well-designed, attractive thermostat and the Heat Link which is fi xed to the boiler or air-conditioning system.

The thermostat has its own display so you don’t have to use an app to control it – though you can. A hidden sensor below the display detects movement and automatically lights up the screen when you walk past or wave your hand at it. The Heat Link connects to your boiler and has built in WiFi to connect the system to the Internet. An optional extra is the Nest Protect Smoke/Carbon Monoxide detector which works together with the heating system.Nest call it a Learning Thermostat because it learns your routines. For the fi rst week or so you will turn the heat up or down as you wish for your own comfort. The thermostat learns when you get up, how warm you like it when you’re at home, when you leave and turn it down, and when you go to bed. Thereafter it will make the changes automatically for you. It also recognises when the house is unoccupied and turns the heating right down. You can always override the thermostat both from the programmable display and remotely via the free app.In the United States and other countries where temperatures tend to be much more extreme than in the UK, the thermostat controls both heating and air-conditioning to ensure you are always comfortable.The CO/smoke monitor, known as Nest Protect, can be linked to the system so that if and when carbon monoxide levels rise the system will automatically shut off the heating to stop it generating more CO. At the same time it gives audible voice warnings and alarms.The system also incorporates knowledge of how long your house takes to reach the desired temperature so it can switch itself on at exactly the right time in advance of you returning. Nest claim this close control means you use signifi cantly less energy heating your home. They quote independent studies showing average savings of 10-12% on heating bills and estimate the system will pay for itself within 2 years.

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Smart Products in the HomeThere are dozens of new smart

products coming to market to support life at home including smart heating controls from companies such as Nest (see panel), smart security systems, baby monitors, televisions and more.You can water your plants remotely, check the contents of your fridge while out shopping; your home entertainment system can switch your music to the room you’ve just entered; and your smart television can guess what you’d like to watch. Even your toothbrush can now be a ‘smart’ version, where it monitors your use, and can help you implement a better brushing regime!IKEA are now selling a range of furniture and accessories that enable wireless mobile phone charging including a table lamp and coff ee table. Just leave your mobile on the lampstand and it will charge automatically and wirelessly.

Smart CarsIoT technology has been used within our cars for several years

now. Even low-end cars can now include drive-by-wire systems that off er automatic parking, and automatic braking. With ‘drive-by-wire’, sensors, together with electronics and software, operate the brakes, accelerator and steering through cables rather than the physical linkages of previous models. This enables the cars to be lighter and safer, and to use less fuel.The Audi RS7 has automatic parallel parking where the sensors and software take control of the vehicle and fi t it neatly into a space. In places where driverless cars are permitted, it’s even possible to park it remotely using an app from a mobile phone and then get it to unpark and come to pick you up where you’re waiting.Automatic braking (collision avoidance) uses sensors, ABS, lidar (light detection and ranging) and cameras at the top of the windscreen to triangulate speed and distance. The system will warn the driver and then operate the brakes for you to avoid or lessen impact.These new developments are hugely exciting but they also bring their own

photographed as it passes through. Much less disruptive than endoscopies and colonoscopies, the device from Given Imaging, captures images at up to 36 frames per second. The Pill-Cam houses a tiny battery, radio frequency transmitter, two image sensors and circuit boards. In addition an electronic patch that sticks to the skin has been developed to monitor pregnancies. It registers both maternal and foetal heart rates and other subtle condition changes including vital early warning of premature births.Using RFID tags on surgical instruments and sponges means they are much less likely to be left inside a patient during an operation.

TransportIn Sweden IoT devices and M2M (Machine to Machine)

communication are allowing bus companies to monitor their vehicles, number of passengers, maintenance issues, location etc. This in turn allows them to report exact expected times direct to bus stop displays and mobile phones. Using barcode readers and electronic tickets speeds up boarding times. Replacing on-board radios with Internet protocols, and on-board CCTV with IP-based CCTV, allows the vehicles to be monitored in real time and video footage of any incident is immediately available. This helps with insurance claims and also keeps travellers safer.

share of problems – not least the legal ramifi cations. In the UK the driver is held to be responsible for the behaviour of a car and its passengers.

SportIn the recent Rugby World Cup, the England rugby team used

RFID and smart positioning sensors to track every player in the squad, even when training. Players wear a small smart device in a pocket on their shirts (between their shoulder blades). The devices accurately track position, speed, acceleration and deceleration. Data is uploaded to a coach’s laptop where the entire training session or game can be monitored and analysed.

HealthSmart products within the health industry include trackers

and monitors that measure, record and transmit information about a person. From blood pressure and pulse rate to blood glucose levels and pregnancy monitors.Philips are developing devices and systems that will monitor heart conditions, diabetes, and chronic obstructive pulmonary disease. Pilot projects are showing very positive results in terms of reducing re-admissions to hospital and in operating costs. There are also camera pills. The size of a large vitamin pill, these can be swallowed and the whole of the intestinal tract

Smart Products in Every Area of Life

Smart Products are making life easier, safer and more personally relevant.



The IoTEcosystemSmart products are fi ne in themselves, and may enhance a traditional product, add value or diff erentiate one supplier from another, but when they are part of an overall solution, system or ‘ecosystem’, it can open up a traditional application or industry to create a much broader market opportunity.

Individual systems could be integrated into an overall city ecosystem, allowing local services to make more eff ective use of power, ease traffi c fl ow and manage public services more effi ciently.An obvious example of an IoT

Ecosystem is that of the ‘smart city’. Individual smart products or

smart devices in the city might include:

■ Smart rubbish bins that detect when they need emptying (and some can even detect what has been put into them).

■ Smart bus stops that monitor bus movements and tell you accurately when the next bus will arrive.

■ Smart traffi c lights that can detect traffi c fl ows, queues and traffi c jams.

■ Smart street lights or lights in public buildings/spaces that turn on when they detect people.

Within a smart city ecosystem, these individual systems (and many more) could be integrated into an overall city ecosystem which could allow local services to make much more eff ective use of power, ease traffi c fl ows and manage public services more effi ciently. They could also allow citizens to have access to information to enhance their lifestyles, their journeys and their work.

More sub-systems can be added as needed so that the smart city ecosystem grows and becomes even more effi cient and all-encompassing. There are already smart cars that are technically able to take advantage of the smart traffi c systems; how far we integrate systems together is currently governed mostly by legal, business and ethical issues, not by technical limitations.



An example of another potential IoT ecosystem is in the farming/agriculture industry. The agricultural IoT ecosystem starts with farm machinery that contains

sensors to monitor functions of the machine. Examples include:

■ Today’s tractors can monitor location (GPS), speed, direction, fuel consumption, distance travelled etc.

■ Combine harvesters and other harvesting machines can monitor the same functions, plus volume or weights of materials harvested, moisture content etc.

■ Weather monitoring systems can monitor temperature, humidity, wind speed and direction, pressure etc. and can also link to weather maps and forecasting systems.

■ Seed drilling and fertiliser machines can monitor position, speed, distance, fl ow of fertilisers, mix of fertilisers, area covered, strength of product used etc.

■ Livestock tags can now include RFID and GPS trackers, so farmers can track movement of their animals around the farm. When farmers or vets administer drugs, nutrients or other treatments to individual animals, all of the data can be collected and linked to that animal.

Agricultural IoT EcosystemT r a d i t i o n a l l y , i n d i v i d u a l manufacturers add smart functions to their specifi c products and so they enhance their product and service to the

farmer. But increasingly, the manufacturers must also ensure that their products/systems can integrate to an overall farming ecosystem, where all products and systems can be exploited together.

So manufacturers such as John Deere may fi nd themselves going beyond the functions of their individual machines and adding capability to integrate with weather systems, climate systems etc. This might not only give them a competitive edge over others, but it might actually open up brand new business services that go far beyond the sale of the traditional machine.

One of the areas that presents a massive opportunity is the ecosystem that is currently being developed in the health and wellbeing industry.

The health industry has of course been using devices to monitor health for many decades. From the simple temperature, pulse and blood pressure measurements to the more complex heart and blood chemistry monitoring, various forms of scanning etc. – the applications for individual smart products are vast.

Add to that a wide range of new smart products for the consumer, the local GP, individual health specialists etc. and the range of health-related products is vast. Some examples include:

■ Consumer health monitors: Quell Relief is a pain relief band worn just below the knee. Electronic stimulation of the nerves in the calf send signals to the brain that triggers the natural pain relief response. The monitor tracks therapy applied and sleep quality to an associated app. Another consumer health monitor is Valedo Therapy – gamifi ed back therapy for home use. A small sensor is worn on the chest and a second sensor in the small of the back. The associated app directs you through a series of bends and stretches to achieve success in a computer game while gently exercising your back and relieving your pain.

■ Consumer lifestyle/activity monitors: These are the fi tness wearables such as Fitbit, Jawbone and Garmin devices. The devices monitor physical activity, heart rate, distance and speed travelled, calories burned and more. Your exercise history is stored so you can see your progress over time.

■ Private practices/clinics: The Vital Connect patch monitors a range of vital signs such as the Oxygen and CO2 levels in your blood, your temperature and your blood pressure. Your carer, who could be a close family member or a medical support team, is alerted when any of the readings are signifi cantly unusual. Another recent device is the iTBra from Cyrcadia Health. This is an insert to be worn for 12-24 hours within the bra. It is equipped with several temperature sensors that measure the heat output from diff erent areas of the breast and measures any changes in temperature. Using this information it is possible to detect breast cancer much sooner, and much less invasively than by the traditional mammograms.

Currently in the UK, there is no single health ecosystem. Individual health authorities or GP practices may have their own systems but because of the complexity of our health service, the technical challenges involved, the security and ethical issues surrounding the use of our private health data, and many other issues, we have no single health ecosystem. But of course many

organisations are working on it. It’s probably the ‘holy grail’ of IoT ecosystems in that the opportunities it presents are truly massive and potentially life-changing. And of course any health ecosystem can extend into lifestyle, diet, behaviour, work, stress etc. – where would this ecosystem actually end?

The Health Ecosystem

Due to the complexity of our health service, technical challenges, and security and ethical issues, there is no single health ecosystem in the UK.

Increasingly manufacturers need to ensure that their products and systems can integrate to an overall farming ecosystem

Manchester’s Health Ecosystem brings together providers and commissioners of health and social care, world-class academic research, city-region government, patients and citizens, major international companies and innovative SMEs, in a long-term partnership committ ed to: ‘making Connected Health Happen’.

More details from: www.informatics.manchester.ac.uk/mhealthecosystem

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The IoTEcosystem

Data capture and real time monitoring

■ Effi cient, intelligent operations■ Global reach and presence■ New business models■ Diversifi cation of revenue

Implications for Business

A system of systems. Interconnected networks of products, data, services, standards, communities, providers.

■ Smart cities■ Agriculture■ Health

Ecosystems

Tiny devices that can be built into a vast range of products.

The sensors can detect/monitor:■ Light■ Heat■ Movement■ Position■ Pressure■ Proximity...and many more

Sensors

Data capture and real time monitoring

■ Effi cient, intelligent operations■ Global reach and presence■ New business models■ Diversifi cation of revenue

Connectivity

Technologies, infrastructure, structured databases, analytics, data as a service, business intelligence, analytics, visualisation.

■ Transparency■ Experimentation■ Optimisation■ Segmentation■ Decision algorithms■ New business models

Big Data

A new age of complexity, threat, potential impact

■ Data security■ Data privacy■ Device protection■ System protection■ Standards■ Legal framework■ Policy

Security

Vast range of new business opportunities:■ Sensing as a service■ Smart products■ Connectivity■ Big Data■ Ecosystems

Re-thinking your Strategy

Threats to existing:■ Business models■ Products■ Services■ Industries

Products from all sectors that have been modifi ed/developed to include IoT sensors and IoT connectivity:

■ Smart home■ Smart car■ Smart offi ceMonitorOptimiseControlAutonomy

Smart Products

Internet of Things NetworksNetwork Type Network name Who’s behind it? Is it IoT specifi c? Average range Power consumption Data rate

Mesh Network Zigbee The Zigbee Alliance Yes 30-60 feet Low 40-250 kbps

Z-Wave Z-Wave Alliance Yes 100 feet Low 9.6-100 kbps

Thread The Thread Group Yes 100 feet Low 250 kbps

Bluetooth The Bluetooth Special No 20 feet Low Varies from 0.5 -3 mbps Interest Group

Internet Network WiFi WiFi Alliance No 100 feet High 54-600 mbps

Ethernet Institute of Electrical No N/A High Up to100 gbps and Electronic Engineers

Long-range 3G/4G International No 1 mile High 3G averages 1-4mbpsNetwork Telecommunications Union 4G averages 4-8mbps

2G International No 1 mile Low 500 kbps Telecommunications Union

LPWAN Various Yes Up to 30 miles Low Varies from 100bs to 50kbs

Source: Business Intelligence

Picture courtesy of news.silabs.com



providing more effi cient

cleaning services. This

will enable them to off er

more eff ective versions

of their services and

to add new services of

value to their clients.

Much of 3gamma’s work

involves working closely

with clients to ensure

their IT organisations

have the maturity,

fl exibility and ability to

successfully deploy and

integrate IoT and other

disruptive technologies

alongside traditional

IT. For example, new

sourcing approaches

are needed to ensure

the client always has the

right mix of internal and

external competencies, access to a fl exible resource pool,

cost effi ciency and scalability.

3gamma’s client Husqvarna, well known in the UK for its Flymo

and Gardena brands, has successfully applied IoT innovation

in its range of connected robotic lawnmowers. Alongside

a host of intelligent features (themselves built on disruptive

technologies), each mower can be controlled from anywhere

and constantly communicates its activity and any problem

such as an approaching need for spares and maintenance.

VISTAGE MEMBER, Ben Wales, MD of 3gamma UK, shares his views on the Internet of Things and what business

leaders need to be considering to be at the forefront of

these changes.

He suggests that IoT and related technologies will have a big

impact on all businesses and a company’s ability to manage,

develop and operate these new technologies could be the

diff erence that allows for survival, competitive advantage

and, potentially, huge success.

“IoT creates new

markets and new routes

into existing markets

– the opportunity is

huge. For established

businesses, an early

challenge is to cut

through the rhetoric to understand what the IoT means for your

organisation and its products, services and customers.” he said.

He continues by explaining that IoT can have an impact on

all businesses especially companies that are product based or

which operate physical assets in the provision of their services.

For example, 3gamma works closely with COOR, a leading

facilities management company in the Nordics, who are

investigating how they can use intelligent sensors to track

and manage energy use in buildings, waste management and

Wales recognises the data privacy

challenge of IoT enabled devices and

also suggests a further major challenge

is how companies will manage the

volumes of data being collected.

Analytics and smart information are

increasingly important. Companies

need to understand how their IT will be

able to generate the insights needed to

enable business decisions.

“It is not just product companies that

will be impacted by IoT, all companies

have the ability to utilise IoT technologies

to gain a competitive advantage and

be a disruptor to their industry. IoT will

make products smarter but it will also

enable smarter business operations and

decisions and create the potential for new

business models.” he states.

He off ers this fi nal advice: “We must be

ready to disrupt our own businesses. If

we don’t then competitors and start-ups

likely will. New connected services and

products will replace what we have today.

Companies that sold products in the

past will be able to add smart sensors,

gain access to data and be able to use

this to sell new services to customers, not

just products.” ■

Ben Wales3gamma

VISTAGE CASE STUDY

3gamma is a leading IT management consulting fi rm operating globally from offi ces across the Nordics and the UK, providing independent advisory and consultancy services to many industry-leading companies.

Analytics and smart information are increasingly important. Companies need to understand how their IT will be able to generate the Insights needed to enable business decisions.

Harmonic Software Systems is an embedded services company providing software development for embedded devices in multiple industries particularly avionics and automotive where security and robustness are paramount.

p

Having answered those questions and determined there is a business case you need to fi gure out all the diff erent pieces of data you will need and where and how you will collect those pieces of data.

The key to successfully utilising the IoT will be what you do with the data. Will you be predicting behaviour based on past experience, or identifying what is happening right now and deciding what to do about it? For example, when there’s an accident on a motorway there’s an immediate problem, traffi c needs to be slowed and re-routed. Alternatively, if you know that motorway is always very busy at a particular time of day then a percentage of the traffi c can be re-routed to even out the load on all the roads making everyone’s journey easier.

What data do you have? What data can you collect? And what can you do with that data?

MANAGING DIRECTOR, Ed Liversidge, explained that embedded systems can be included in any product from photocopiers to helicopters through to fridges and power stations. He described an embedded system as where a computer chip is included inside a product and there is often no input device. You may not even realise the chip is there, however, it is part of the smooth functioning of the item and can give you extra functionality.

One example of this is an aircraft where the embedded system helps the pilot fl y the plane. These systems need to be very robust as the freezing or crashing we’ve become used to on our PCs would imperil the aircraft and everyone on it.

When asked what he saw as the future of the Internet of Things, Mr Liversidge explained that IoT is still in its infancy. At present one of the big issues is a lack of interoperability.

Company A’s devices can’t talk to Company B’s devices or Gateways. He sees the immediate future as a jockeying for position amongst the industry leaders similar to the VHS/Betamax clash in the early days of video. In due course standards will be set and communication protocols developed so that the IoT can be fully integrated and connected and not become the Internet of Diff erent Things.

Liversidge sees the greatest opportunities within IoT as being security and data analysis.

When you come to design your own IoT systems his advice is to start with security. Once you start connecting diff erent systems into an interconnected system the potential for destruction and damage mushrooms exponentially ■

ED’S ADVICE to companies looking to embrace IoT is to address a series of questions:

■ What is our product?■ What space does it fi t into?■ What do we want from IoT?■ What will be the advantages and benefi ts for the

end customer?

We must be ready to disrupt our own businesses. If we don’t then competitors and start-ups likely will.



Have you ever looked at a typical license agreement?p Anyone who uses an Apple iphone has automatically consented to

a wide range of data being collected and used by Apple (see http://www.apple.com/legal/sla/docs/ios6.pdf ).

p Anyone who uses Facebook has consented to Facebook not only collecting data about you and what you do through Facebook, but also to Facebook collecting copies of the data, images, messages etc. that you post through Facebook (see https://www.facebook.com/about/privacy/).

p Similar agreements exist for all smart products – by using the product you are agreeing to the collection and possible use of data related to your use of the product.

This might be OK and of very limited risk if that was it, but the whole point of the IoT is that once data is collected by a sensor or smart device, it is then transmitted or shared within some form of IoT ecosystem. That may then in turn be part of a larger ecosystem and so on. Even that might be OK if you’re not really bothered about who knows your tooth-brushing regime! But what if your mobile phone tracked the fact that you visited a McDonalds restaurant fi ve times a week? What if data collected indicated that you were drinking too much or that your pulse rate or blood pressure indicated an underlying problem? The information might be very useful to you, but it could also be used by others against you. Insurance companies could suddenly

increase premiums or withdraw cover altogether. And of course in the IoT it’s not just people that could exploit your data, it’s about machine-to-machine communication; it could be about systems making their own decisions based on data they have access to.

So with the IoT it’s not just about security, it’s about privacy and who gets to use or leverage data that you generated.

It’s also about the ‘not-so-obvious’. Hacking or phishing are attempts to break into computer-based or physical/social systems – usually focused on breaking into business or personal systems. The IoT brings new security risks, from equipment that most of us assume presents no risks at all, for example:

p Many of us now have printers at home or in the offi ce that operate via WiFi. They’re also digital printers, in that every page, word, image, photo is printed (or scanned) from a digital form. With the right equipment, your WiFi printer could be hacked directly, and others might be able to copy and download every page you have printed or scanned – scary?

p Many of the latest cars are also WiFi enabled. Many also have various forms of driver assist (eg. parking assist, lane assist, collision avoidance etc.). All of these involve IoT technologies – sensors, digital data, software and digital motors or pumps to move things, control the steering, brake etc. So your car is now vulnerable to hacking not only so someone can steal your car but they could actually drive it remotely (see ‘Hacking a Jeep’ story).

Security and Privacy Concerns in the Internet of Things

T here have been high profi le cases reported in the media of cars being hacked and remotely controlled, and of baby alarms being hacked so would-be burglars could monitor the home and

discover when the family were away. At the same time we’ve become used to receiving phishing emails and other scams in our inboxes on a daily basis.

So threats from potential hackers, intruders, criminals and so on, threaten all aspects of our technological life. But the security and privacy risks are not limited to situations that involve criminals.

It has become a de facto standard for software providers, manufacturers of mobile phones, wearable devices and all other types of technology, to give you access to their systems only if you acknowledge and accept some form of license agreement – usually involving pages of small print.

With estimates suggesting there will be 50 billion Internet of Things devices by the year 2020, and almost daily news bulletins covering hacking, the security and privacy issues surrounding our world of technology are becoming a matter of ever greater concern.

Hacking a JeepA FRIGHTENING, and potentially lethal, security breach was demonstrated by two computer-security researchers in July 2015, when they were able to take control of a Jeep Cherokee as it was being driven on an American highway (it was a managed hacking demonstration, so the driver was fully aware of what was going on).

Charlie Miller and Chris Valasek, were able to hack the car’s systems through a loophole in the Chrysler’s Uconnect system to access the car’s controls remotely and take over all the car’s functions.

The Uconnect system has been installed in hundreds of thousands

INFORMATION SPECIALIST Andrew Rose outlines the evolution of the IoT and describes how security risks could increase at each level.

STAGE 1 is the personifi cation of dumb objects. Each object is uniquely identifi able and able to interact with intelligent systems such as an app on your Smartphone or a web based system. One example is BMW’s ‘smart’ car keys that don’t have to be taken out of the pocket to allow the car to start. These devices have been subverted and vehicles stolen.

STAGE 2 is partially autonomous sensor networks. In this stage the objects are able to sense their surroundings and other devices. The devices can then take limited action based on the information. An example of this type of system is a home thermostat that adjusts itself via an app or by being aware of the homeowner’s location and proximity. If these systems are compromised then it could theoretically be possible for hackers to switch off a whole country’s electricity supply with catastrophic consequences.

STAGE 3 is autonomous independent devices. At this stage the devices will not require an app or web service to function. They will be able to autonomously interact with other sensors and services without any human intervention. An example would be drug dispensers that automatically dispense medication in response to conditions sensed within the human body. Malicious tampering with that kind of system could easily lead to overdosing and death.

How are the IoT privacy and security issues being regulated?Technology is outstripping our ability to legislate for security and privacy. In the EU current privacy rules were drafted from the position that one single provider of a service collects data from users for a particular purpose. Increasingly Big Data is upsetting that standpoint. Big Data is collating information from multiple diff erent sources for multiple diff erent purposes, many of which have not been determined at the point of data collection. The interpretation of collated data could easily lead to unintended privacy breaches.

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The EU institutions are attempting to create a General Data Protection Regulation to give a harmonised framework across the EU in tackling the areas of concern. This is expected to come into force by mid-2017.

The initial recommendations to be considered include:p Performance of Privacy Impact Assessments prior to the launch of any

new IoT application. This will require standardisation bodies to develop encryption and communication protocols.

p Privacy by design and by default principles should be applied. This would include the device automatically disabling wireless interfaces when not in use, minimise the amount of data collected, and ensure default settings keep data private unless specifi cally altered by the user.

p Users should be in control of the data so users should have user-friendly ways to opt out and to modify data before it is transmitted with no penalisation or service degradation for those who so choose.

p Transparency – consent information clearly available not hidden in Policies and Procedures pages, clear communications by design and clear information to users when in the presence of IoT devices that collect data.

p Portability – clear and self-explanatory data formats for portability and interoperability with raw and aggregated data in a standard usable format.

p Minimisation – raw data to be deleted once required data has been extracted, as few strong identifi ers as possible to facilitate anonymisation.

So what should business leaders being doing?If only there was a simple answer! This area changes so quickly. The key thing is to get involved; put security at the centre of your strategy. You can join organisations involved in developing policies, strategies and solutions at the IoT Security foundation, a not-for-profi t organisation set up specifi cally to explore this area: https://iotsecurityfoundation.org

www.wired.com/2013/01/securing-the-internet-of-things

So what are the key risks and what can you do to manage the risks?

of cars made by the Fiat Chrysler Automobile group since late 2013. The system allows owners to carry out functions such as remote starting of the vehicle, unlocking the doors and fl ashing the headlights using an app.

Using a laptop and a mobile phone, the hackers were able to blast the air-conditioning, turn on the radio at full volume and operate the windscreen washers. Meanwhile the driver was unable to exercise any control over those functions. Having had a little fun, the hackers then cut the engine leaving the driver (Wired reporter, Andy Greenberg) coasting along unable

to accelerate. To regain control of the vehicle he had to switch the car off completely and restart it. Later in a deserted car park the hackers demonstrated taking over the steering and driving the car remotely.

While the US FCA have released a security update, the wider implications are extremely disturbing. If two cyber-security researchers can hack into the vehicle what could cyber-attackers do in the future by exploiting security breaches to cause traffi c chaos or fatal ‘accidents’?

www.wired.com/2015/07/hackers-remotely-kill-jeep-highway

■ The economic impact of the Internet of Things will be measured in $trillions.

■ The number of connected devices will be measured in billions.

■ The resultant benefi ts of a connected society are signifi cant, disruptive and transformational.

■ Yet, along with the opportunity, there are fears and concerns about the security of IoT systems.

■ The international IoT Security Foundation (IoTSF) has been established as a response to those concerns. See htt ps://iotsecurityfoundation.org/



In addition, the information that is currently being gathered by tracking software and input forms tends to be of poor quality, may be out-of-date, and may be irrelevant to the person being tracked. For example, a journalist might research many diff erent areas during the course of his work but not be interested in making any purchases in any of those areas himself. The data is expensive to gather and not hugely eff ective to use and using it can alienate the desired prospects.

The Digi.me solution to these problems is what Julian refers to as the Internet of Me. Using a small app downloaded to your PC or mobile (coming shortly) an individual can collate all their own data, securely, on to their own device or into their own secure cloud area. The individual is then in control of who they share that data with, and how much of the data they share. Companies wanting to market to individuals have to present a compelling value proposition in exchange for the data they request. The individual can then choose to accept that value proposition and share the data, or not.

The Digi.Me software also “normalises” the data from diff erent sources making it easily available to any other device. In eff ect the translation has been done for you getting over the interoperability problem. Any external app or device only needs to understand the Digi.Me formats.

This has several benefi ts for both the end users and the companies trying to market to them. Individuals are happier because they are in control of their data, how it is used and how much is used for how long. The data itself is much richer than data scraped from tracking software and input forms. It will be up-to-date and relevant to that individual. In addition, where someone has voluntarily shared their data with an organisation they have signalled an interest in the value proposition – these people are much better prospects than someone who has just been targeted as a result of their Internet browsing history.

Ranger’s advice for businesses wanting to get into the Internet of Things space and sell to end consumers is to start thinking of those

ACCORDING TO VISTAGE MEMBER, Julian Ranger, Founder and Chairman of Digi.Me (and supported by other independent sources such as McKinsey Global Institute), two major problems are standing in the way of wholesale acceptance of the Internet of Things in the consumer space.

The fi rst is personal privacy. People are unhappy with the way they are spied on and tracked and then blasted with adverts wherever they go on the Internet. To fi ght back many users are installing ad-blocking software. Added to that are the high profi le cases of data being hacked such as the recent security breaches at TalkTalk and Ashley Madison. Individuals are getting more and more concerned about what companies know about them and what those companies are doing with the data. Consequently they are less and less happy about sharing anything and without data sharing there will be no IoT in the consumer arena.

The second problem standing in the way of the Internet of Things truly taking off is the issue of interoperability. Manufacturers all have their own way of communicating with their own devices and those devices don’t use the same formatting or data protocols as other manufacturers use so they cannot communicate with each other. Eff ectively they speak diff erent languages and don’t understand one another, yet the whole premise of the IoT is the ability of devices to communicate with each other to improve the end user experience.

AVNet Embedded is a small business unit within AVNet the global technology company. AVNet Embedded was created to serve leading industrial equipment and device manufacturers who need to develop smarter devices for their end customers.

consumers in a new way. Consumers are not someone you sell to, but someone you engage with. While you are in the product development stage consider how can you ensure the consumer has understanding and control, because both are vital to a successful relationship between a business and its customers. At the same time you will also need to consider the latest EU legislation regarding data minimisation, right to be forgotten, informed consent to use the data, and more.

According to Ranger, personal control and storage of an individual’s data by the individual has to be the way forward – it’s better for the individual, and it’s better for the companies that are trying to sell to those individuals. And while it may take a few more years to get there, Digi.Me is at the forefront of development in this area. You can fi nd out more and download the Digi.Me app to store your own social media data today from the digi.me website ■

p

What success looks like is the ultimate goal and will diff er depending on your business. The goal will probably be to make savings in some area of your business so you’ll need to consider where your costs are coming from. For example, a logistics company might see success as saving 5% on fuel bills, where a lorry manufacturer would see success as reducing maintenance costs.

You need to have a business case, an end result, and know what you have to connect to achieve that result.

Shone described how the basic technology for the IoT has been around for 20+ years but what’s diff erent now is that the costs have come down massively. Where previously systems and devices had to be developed from scratch for each project, there is now a base of open-source software that will accomplish 60%-70% of the requirements. At the same time the cost of sensors has come right down to just a few pennies each. The development of the individually tailored portion of the project is still complex so it’s important to partner with the right companies. Consider whether your partner companies have the infrastructure to support you for the next 5-10 years so you’re not left on your own once the system is completed.

The keys to success for an IoT project are to be clear about the desired outcome and to choose the right partner companies to assist with the design and implementation.

ASHLEY SHONE, Computer Solutions Engineering Manager for the UK and Europe, explained the company works with their customers to develop technology solutions and smart products. At one end of the spectrum they are a supplier of components, displays, software and related items with the customer building their own devices. At the other end of the spectrum are customers who have an idea, they come to AVNet Embedded with a concept and the company will then design and manufacture the devices from scratch.

An example he cited was a forklift truck company. Before IoT the main control unit within the forklift knows what’s going on with the machinery but that’s where

it stops. When a forklift breaks down an engineer comes out and runs diagnostic tests to determine the fault, orders parts, and makes a second visit to fi t them and repair the forklift.

Once the equipment is IoT enabled, the information from the main control unit is sent through a gateway to the cloud and interpreted by intelligent software. The software recognises the machine is running too hot, or is vibrating outside of the optimal range and can fl ag up the need for an engineer visit and exactly what the problem is so the engineer can attend with the correct replacement parts. This saves down time and results in fewer maintenance visits that can be scheduled to be least disruptive, saving costs at every stage.

SHONE’S ADVICE to companies considering entering the IoT space is to ask a series of questions:

■ How do I connect up?■ Why do I connect up?■ What does not connecting cost me?■ What does success look like?

Julian Ranger Digi.Me

VISTAGE CASE STUDY

Digi.me are tackling the Internet of Things in a diff erent way to most other companies. Looking at the major problems standing in the way of the wholesale application of the IoT they have determined a solution.

Consumers are not someone you sell to, but someone you engage with. While you are in the product development stage consider how you can ensure the consumer has understanding and control.

Collate your own data and choose who you share it with – it’s bett er for you and bett er for the companies marketing to you.



The Internet of Things with its billions of connected devices is generating multiple terabytes (1012 bytes) of data every day. According to IBM1, Big Data is characterised by the ‘Four Vs’ – volume, variety, velocity and veracity.

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“This exciting project will not only directly

benefi t Milton Keynes, but will also demonstrate

ways forward for other cities right around

the world.” Martin Bean, during his role as Vice-Chancellor, The Open University.

The £16 million MK:Smart project will use ‘big data’ to develop new and smart ways to manage key infrastructure elements such as water, transport and energy supplies. A smart city is one which is able to provide sustainable solutions to core issues including transport, health care, governance, economic development and quality of life. Typically these solutions rely on intelligent use of information and communication technologies.

The MK consortium plan to use data from various diff erent sources including satellites, local authority, and even crowd sourced from social media and apps collected together in a central hub where they will be analysed to fi nd smart solutions.

Milton Keynes is a city where mobility is a big problem for those without their own transport. The project is focusing initially on providing better transport information, for example, when the next bus will arrive and how full it is.

Another issue for Milton Keynes is water use. Situated in one of the driest regions of the UK and growing rapidly, water consumption needs to be closely controlled. Analysing the data can identify patterns of consumption which then allow for provision of tailored advice for saving water, or data regarding soil moisture status and long range weather forecasts can trigger a local hosepipe ban.

At the same time, as part of a separate project, driverless pods are being trialled in Milton Keynes using pavement routes. Initially three electrically powered pods are being tested within the pedestrian areas of the city.

Pete Marland, leader of Milton Keynes Council was very enthusiastic, “It is fantastic

that Milton Keynes is at the forefront of this global technology race. Our aim is to

show that they can work as a means of public transport with people able to use their

Smartphones to order a pod. These trials are bringing us one step closer to having the

pods as part of everyday life in Milton Keynes.”

www.telegraph.co.uk/technology/news/11866132/First-self-driving-pod-unleashed-on-Britains-roads.html

A consortium led by the Open University and including Milton Keynes Council and a number of technology companies is aiming to transform Milton Keynes into one of the world’s ‘smart cities’ – a model for how Information Technology and data analytics can be used to drive sustainable growth.

Milton Keynes to Become a ‘Smart City’

The vehicles are equipped with 22 sensors including cameras, radar and laser detection sensors to enable them to recognise and avoid hazards such as pedestrians, bicycles, traffi c and kerbs. Each pod can seat 2 people and has a maximum speed of 15mph. During the trial period the tester must be in the vehicle and able to take control at all times.

VERACITYThat is the uncertainty of the data. 30% or more of business leaders questioned said they don’t trust the information they use to make decisions. If you are relying on data to make decisions you want to be sure it is as certain as possible.

BIG DATA

VOLUMEThe volume of data is incomprehensible, with 2.5 quintillion bytes being created every single day – that’s approximately 2.5 x 1018 bytes. According to Cisco, the number of connected devices is set to grow from today’s 14 billion to 50 billion by 2020 which will have generated an estimated 40 zettabytes (40 x 1021 bytes) by that time. The scale is simply staggering.

VARIETYThe data being generated comes in a mixture of structured and unstructured forms including 400 million Tweets sent each day and over 4 billion hours of video watched on YouTube every month. Some of this data lends itself more easily to machine analysis than other types of data.

VELOCITYThe data arrives at speed and is often real-time data. Modern cars have almost 100 diff erent sensors that monitor fuel level, tyre pressure, engine temperature and more reporting back to the driver. To avoid us being overwhelmed, most of the information that is collected is only highlighted to the driver when there is a problem.

One of the outcomes of the growth of the IoT is the massive growth of collections of data. Think about it. Everything from your toothbrush, to your car, to every printer/copier etc. is collecting and probably transmitting data – 24x7. A year’s supply of data from your own personal toothbrush might not be that useful on its own, but if you had that data from over a million toothbrush users you might be able to see some signifi cant trends, behaviours and other insights from looking at the ‘big picture’. Combine that with other data sets (eg. lifestyle, diet, fi tness activity etc.) and you then have an even ‘bigger picture’ of the lifestyles and habits of people. This is an example of Big Data.

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DIFFERENT INDUSTRIES and diff erent organisations will use Big Data in diff erent ways. For some it will be clinical readings from sensors, for others it will be social media conversations. As you can see there can never be a “one-size fi ts all” way to process, analyse and make use of all this data, but without being able to aggregate and analyse the data eff ectively, it is of limited value.

Data analysis can lead business to discover patterns and knowledge that were not visible previously and this in turn can lead to new business models to exploit the Big Data opportunity. To take a simple example, think about the smart toothbrush. It seems trivial to collect and store the brushing habits of an individual. The immediate business value the data brings is knowledge about how often the person brushes, for how long etc. Some smart toothbrushes also monitor how you brush, whether you have spent enough time on certain teeth, whether you have pressed too hard etc. So you could certainly use this data to educate the user, and improve their brushing habits. You could even predict when they would run out of toothpaste, when a new brush head would be needed etc. and so you could go on to supply these products, making life easier for the user.

But now collect the same data from a million users. Combine that with data about where they live, what type of life they lead. Suddenly you might be able to see trends in the data that tell you about habits of certain types of people, habits that vary depending on where they live, whether they are in a hard water area etc. Now you could market or sell to those people certain products or services, because you have data which confi rms or predicts what they would need/use. It might sound scary, but it opens up all sorts of business opportunities – and that’s just from a smart tootbrush!

Demand for Big Data staff is expected to grow by 92% over the next 5 years.(e-skills UK: Big Data Analytics: An assessment of demand and labour skills, 2012-2017)

So we have a lot of data – so what?



Big Data will help companies create new value streams, reduce time to market and respond more quickly to customer needs. It will also radically improve market agility and enable the

monetisation of additional services. Access to data at all points along a supply chain will allow companies to make on-the-fl y decisions regarding logistics, pricing, support and deployment.

Businesses will need to rethink the function/value creation through IoT and Big Data.

What’s driving the changes to business models?p Digital signals can be transmitted perfectly without any

loss of information.

p Digital signals can be replicated indefi nitely.

p All this can be done at virtually no cost.

As an example of how the IoT and Big Data can transform a business, look at the GE Wind Turbine division. GE sold wind turbines and associated equipment to energy supply companies. When demand for power increased the old business model suggested GE should try to sell more turbines. The new business model was to invest much less money in equipment that connects all the turbines through software which delivers real-time analytics and allows for dynamic control. GE creates value by using the data generated by the turbines to optimise performance. It derives revenue by charging a percentage of the energy supplier’s increased revenue. So GE now derives more value, with less eff ort from simply exploiting the Big Data it has access to.

Analysis of the data is key to utilising it eff ectively. Economist, Tim Harford2, writing in the Financial Times, highlights a fundamental fl aw in much Big Data analysis – Correlation does not equal Causation. He cites the example of Google tracking fl u outbreaks across the US by analysing search terms. Initially Google was able to identify the spread of the disease more quickly than the Center for Disease Control and Prevention. After a few years Google started to get it wrong – there were false positives because people were researching fl u symptoms when they didn’t have the disease. How you analyse the data and the conclusions drawn from it need to be very carefully considered.

p

Businesses will need to rethink the function/value creation through IoT and Big Data

Potential problems of Big Data■ StorageThe multiple zettabytes of data need to be stored somewhere. Often this is ‘in the cloud’ however, the cloud is made up of banks of real computers that are based in data centres across the world. The hardware has to physically exist, be secure and be maintained.

■ SpeedWhen there is a necessity to move fast as a result of the information being received then the analysis and reporting must be fast. And the systems must also be able to cope with real-time input at speed.

■ SecurityData must be kept secure from cyber attacks and misuse. Personal privacy needs to be considered. And not just in the way the data is stored but also in how it is used.

Review your business to take advantage of IoT and Big DataLeveraging the opportunities presented by Big Data involves going back to basic principles and being open to thinking outside of your normal constraints or business/industry limits. Some key things business leaders should consider/explore:

Big Data then is perhaps the biggest IoT opportunity of all, because it opens up all sorts of opportunities to sell products, service, know-how, and value.

The possibilities that Big Data brings us are enormous. We can understand our customers better. We can discover what they do with our products. We can look for patterns. All this will help us to market our existing products more eff ectively and help us plan future developments to fi ll the perceived gaps in our current off erings.

In order to utilise the data eff ectively is must be gathered and analysed with decisions being made on the basis of that analysis. To do that requires the analyser to recognise what is interesting and useful and what is just ‘noise’. Once the data has been thoroughly analysed (and combined with other data) it can be exploited. Business models can be changed, diff erent avenues explored and even diff erent products developed.

1 http://www-01.ibm.com/software/data/guardium/secure-big-data/2 http://www.ft.com/cms/s/2/21a6e7d8-b479-11e3-a09a-00144feabdc0.html

Big Data: The next frontier for innovation, competition and productivity.McKinsey Global Institute.

4 Go back to fundamentals. What would your customers do if only they could? What diff erent decisions would they make if they were better

informed? How could you capture or identify issues, trends, behaviours? How would you present that information, how would you convert it into a new product/service?

5 Who else would stand to benefi t if they had access to information that is currently hidden or not available? How could you leverage

the IoT and Big Data to make the impossible possible?

6 Think about specifi c Big Data opportunities and threats.

7 Build up your capability to build a data-driven organisation.

1 Look at your existing products, services and procedures. What processes could be digitised in some way so that all sorts of data could

be collected? Consider how Uber has transformed taxi services by digitising everything – reservations, tracking, billing, customer service, driver performance, and ratings. Which of your processes are most problematic to either you or your customers? Can they be digitised to iron out the problems?

2 View data (yours, your suppliers’, your customers’, your market etc.) as an asset. Start to think about its value, its use, its protection, its life span.

3 Look across companies and across industries to see if there is synergy and where you can add value, or where you

could combine your own data with other data. For example, Nest not only controls the in-house thermostat, it also connects with public utility companies to share data and optimise energy use. What IoT ecosystems could you build, join or leverage to collect and leverage the Big Data?



Think the IoT doesn’t apply to your industry? Many businesses think that the IoT may not aff ect them. Think again. Here is just a small selection of IoT applications in diff erent industries.

Agriculture In 2050, the world will need to produce 70% more food than it did in 2006 to feed the growing population (according

to the UN Food and Agriculture Organisation). To meet growing demand, agricultural companies are turning to the analytics and increased production capabilities the IoT can provide. Applications include sensors to monitor soil acidity, temperature and other variables to improve yield, connected farm machinery and satellite and drone images to track progress and yields.

Connected home Connected devices within

the home are expected to more than double over the next fi ve years with connected devices expected to outnumber non-connected devices by 2030. This growth is driven by the manufacturers wanting all their devices to be connected, and by the youngest generations who are growing up with connectivity and will demand that connectivity as they become adult consumers. Applications include connected light bulbs, heating thermostats, home entertainment and home security.

DefenceConnected devices are set to transform warfare with drones

replacing human pilots and smart weapons with laser guidance and satellite systems able to pinpoint exact targets. This should greatly reduce casualties on the fi eld of battle. The US military are testing remote controlled robots and drones that can communicate with each other to accomplish complex military manoeuvres.Financial services

Retail banks are looking at beacon technology to improve the in-branch customer experience and cut costs. Applications will include sending

customers personalised off ers as they enter a branch and sending information about the customers to the tellers for a better customer service. Some Automated Teller Machines (ATMs) already provide a live-stream video of a teller for additional customer support.

Food services Companies throughout the food supply chain are using IoT to reduce food waste, cut back on employees and improve the quality of food.

Sensors and connected testing kits can check on food quality and refrigeration temperatures throughout the food journey. Tracking tags in the packaging identify where the food is in the supply chain and ensure all food is as fresh as possible. In addition restaurants and supermarkets are using digital signage to change prices and make special off ers in real time.Healthcare

Connected devices can collect data and automate processes in the health arena. The data can be aggregated and used for research and on-going

patient care. At the same time individual users can be monitored in real-time with diagnostic information being fed back to their medical support team. Fitness trackers also have a vital role to play in data collection and health monitoring in the population at large.

Infrastructure The growing population and increased urbanisation is leading cities to connect their public infrastructures to deploy services more

effi ciently and improve the quality of life of the inhabitants. Applications include connected cameras monitoring high crime areas, connected traffi c lights to smooth out the traffi c fl ow, and connected streetlights helping to save energy and associated costs.

Hospitality The hotel industry is at the forefront ofIoT adoption with

smart-card room keys and room control devices such as heating thermostats and internet-enabled televisions. Many hotels are beginning to utilise beacon technology to smooth the check-in experience for their preferred customers.

Insurance The insurance industry is leveraging IoT devices to reduce their risks.

For example, off ering usage-based car insurance policies that assess risk based on level of activity. Some health insurance companies such as Vitality Life off er incentives for participation in healthy activities – measured by fi tness trackers. It is expected that with more IoT car safety technology in new vehicles there will be fewer accidents and claims.

Logistics IoT can enable massive savings in logistics costs both in transportation and within warehouses. Fleets of connected vehicles cut travel time and costs by using real-time traffi c updates and plotting the most

effi cient routes. Tracking sensors on parcels and shipping containers reduce costs related to lost or damaged goods. And increased automation (e.g. Amazon) reduces labour costs and increases productivity in warehouses.

Retail Retailers are using IoT devices in multiple ways including monitoring supply levels, targeting off ers to customers and collecting data to

improve business practices. Applications include beacons and accompanying apps to push adverts and off ers at customers, smart mirrors in fi tting rooms allow the customer to try on garments virtually, and smart shelving alerts the shop when it’s time to reorder.

Oil, gas, and mining IoT sensors deliver data on

how effi ciently oil wells are running and identify areas for improvement. In the fi ve years between 2010 and 2015 US oil wells are delivering nearly four times as much oil as a result. IoT is making mining safer where sensors can test air quality and robots can be employed in dangerous situations.

Smart buildings New buildings are being designed and built to include IoT devices particularly in the heating, ventilation and air-conditioning systems

in order to reduce energy consumption. Connected light bulbs also save energy and thus costs as do smart lifts. Smart buildings may also include IoT security systems.

Manufacturing IoT opens up new possibilities for analysing and automating manufacturing processes. At

the same time the cost of sensors is continuing to fall making it much more cost eff ective to include sensors throughout the manufacturing processes.

Transportation Trains and aeroplanes are being fi tted with sensors to enable preventative maintenance by detecting wear and tear before failure. Internet availability on fl ights and train journeys gives improved

customer service. Another use for connectedness is to deliver messages to bus stops about when the next vehicle is due to arrive, and on board real-time cctv monitoring for accidents or incidents.

Utilities Global energy demand is forecast to increase by 37% by 2040 so it is imperative

that utility companies fi nd solutions. Use of smart meters connected to smart energy grids can cut energy usage. Water can also be monitored and utilised more effi ciently.

Connected carsIt’s been estimated

that 75% of new cars in 2020 will be connected; it will no longer only be the luxury end of the market. Connected cars feed back huge amounts of data enabling car manufacturers to understand how their vehicles are used and thus how they can be improved in future. IoT will also save on recall costs when software patches can be pushed out to all the vehicles and not require a physical recall. In car entertainment and in-transit Internet access will also be popular applications.



What is iBeacon?

iBeacon is technology that enables location awareness possibilities for apps. The apps recognise when an iOS7 or later device is near a wireless sensor called a beacon. The beacon transmits data to the iPhone using Bluetooth Low Energy (BLE) and can also receive data from the iPhone or other device. Using BLE means the system uses very little energy and the beacons have a range of up to 50 metres.

How can iBeacon be used?The iBeacon is Apple’s proprietary beacon technology designed to communicate with Apple devices such as iPhones and iPads. The iBeacon transmits its unique identity out into the surrounding area. This signal is picked up by the app on your device. The app calculates the proximity of the iBeacon and is programmed to do something as a result, e.g. display a special off er.

The beacon and the app work together, without the app, the beacon is just broadcasting. The usefulness is when it is paired with an app. For example, the At the Ballpark app – this app identifi es the stadium you are entering and populates itself with that stadium’s information. It can then direct you to your seat via a map, it can highlight nearby points of interest and it can off er directions to the shortest queue both at the entrance and at concession lines.

Retail shops have also been among the fi rst users of the technology alerting customers to special off ers as they come through the door or browse a particular section of the shop.

The iBeacon also features micro-location geofencing which is

iBeacon Technology –Product Promotion in your Pocket

Apple introduced iBeacon technology as part of iOS7 in 2013 with very little fanfare. Since then several companies have entered the beacon market developing transmitters and associated apps including Estimote and Blue Sense.

ideal for indoor mapping. Where standard GPS has diffi culty penetrating inside buildings, the iBeacon can enable indoor mapping apps so you could then navigate an airport terminal or other large building with ease.

In schools iBeacon can be used to distribute content to all students as they enter the classroom, downloaded directly to their school iPads.

iBeacon also accepts payments so you can pay for your goods without having to swipe your phone at an NFC (near-fi eld communication) point.

What are the benefi ts of iBeacon?p Accuracy – proximity technology senses the device and can

take immediate action.

p Privacy – iBeacons only track while the device is within proximity, you are not being tracked after you leave the premises.

p Aff ordability – even an iPad can be confi gured as an iBeacon via free apps and, unlike NFC, there is no need for an additional chip in the device to work with the beacons.

p Usability – because the iBeacons use BLE there is very little impact on a user’s device and battery life. The functionality is built into the operating system.

Who makes iBeacon transmitters?A number of companies have already developed iBeacons. This is a partial list of suppliers and prices are correct as of Autumn 2015.

■ Estimote – 3 beacons $99, battery is non-rechargeable, estimated to last 2-3 years.

■ Blue Sense – a range of beacons from £17.99 to £29.99 each

■ Gelo – 3 beacons $105

■ Kontakt – 3 beacons for $81 or $99 depending on exact specifi cation

■ Sensorberg – 3 beacons 69 Euros

YRetail shops have been among the fi rst users of the technology alerting customers to special off ers as they come through the door or as they browse a particular section of the shop.

Possible challenges to your business/industry:p Security – data and systems; how do you ensure security?

p Privacy – people’s personal information and transactions should be kept private; what policies will you operate, and how will you assess the threats posed by the external eco-systems that you operate in?

p Data ownership – who actually owns the data you collect about people and their behaviour?

p Your business model, product or industry itself may be rendered ineffi cient or even obsolete by IoT developments; how are you safeguarding or developing your current value proposition?

p If you don’t develop a link to the IoT, or enable your products/services to operate within the IoT, will you be left behind?

Benefi ts of embracing the Internet of Things:p You could extend or renew a product life by making it

‘smart’ or IoT-ready.

p You could leverage the work of others by working within multiple IoT ecosystems.

p You could gain greater effi ciencies and develop new services by exploiting Big Data.

p You could introduce more automation to support and maintenance operations by adding IoT sensors to existing products.

The Internet of Things is set to have major implications for business – both positive and negative.

Implications of IoTfor Business



term. These developments will eventually make their way into commercial transport – lorries, vans and buses will gradually incorporate these technologies. Big Data will enable brand new business models for car retailers, car rentals, car service, commuting and lifestyle/leisure services.

Consumer ProductsThe smartphone, apps and smart products such as wearables and domestic appliances will continue to develop and this market will grow at

high-speed. Developments in both IoT sensor hardware and app software will allow smaller businesses to exploit this area, and new products will be launched at an even faster pace. Many business sectors will be able to exploit this area – in terms of hardware, apps, Big Data and new business models.

Although now a litt le out of date, the key fi ndings in a comprehensive report by the McKinsey Global Institute still remain valid.

Some industry sectors probably stand to gain more (or have bigger, faster opportunities) than others:

(Big Data: The next frontier for innovation, competition and productivity, 2011)

Big Data will identify new markets and new opportunities that can be exploited

HealthcareFrom smart consumer/lifestyle products to GP and NHS services, the growth of IoT devices, health-based Ecosystems and health-related Big Data all

present massive change and opportunity for this industry:

p The growth of health/lifestyle related devices for consumers and health professionals will fuel greater awareness and new health-related products and services.

p People will be more aware of health issues and their own health data.

p Health monitoring and other services will be more distributed, local and personal, all enabled by IoT technology.

p Big data will show new trends, new patterns and new opportunities for prevention and treatments.

Public SectorThe pressure to do more with less public funds will drive a greater use of technology. Basic infrastructure (eg. traffi c and transport) and the provision of

public services (eg. waste management) will all be optimised using a combination of IoT technology and Big Data. This presents signifi cant challenges for existing public sector organisations, but will introduce new opportunities for the private sector.

RetailA retail revolution is already underway in terms of multiple-channel retail (eg. ‘click and collect’). IoT technology will enable new buyer patterns to

be identifi ed (and exploited), optimisation of the supply/delivery chain as well as more personal shopping experiences, whether in-store or on-line. Big high-street brands will seek to boost and speed up the integration of their physical stores with digital purchasing – Sainsbury’s interest in Argos is one current example. But the developments of IoT technology and eco-systems will actually benefi t the smaller retailers – at least those open to leveraging the new capabilities of the IoT.

ManufacturingThe manufacturing sector will be boosted in a number of ways. Machines involved in the creation of products will incorporate IoT sensors to optimise

their functions, their maintenance and their performance. Better tracking of products through the manufacturing and supply chain will allow better optimisation. The growth of 3D printing and the ‘Maker Economy’ will allow new businesses to exploit state-of-the-art manufacturing techniques, and Big Data will identify new markets and new opportunities that can be exploited to deliver more personal, build-to-order, small-run products with a much faster design-to-market cycle.

AutoThe car industry is already well down the IoT road in terms of sensors built into core functions and digital services inside and outside of the actual

car (eg. automatic parking and remote start/diagnostics). The car industry will move even faster into IoT ecosystems with the rapid development of self-driving cars, new business models that focus more on renting than buying, and wider traffi c and city eco-systems that optimise both traffi c and the use of individual cars. Developments in battery technology, when combined with the IoT developments will transform the car industry in the longer-

Internal Implications for all Business

■ R&DOrganisations need to widen their scope of ideas to allow them to think ‘IoT’:

p What things could be sensed, monitored?

p What data could be collected?

p What ecosystems could be leveraged?

p What new business models, products or services could be developed?

■ SALES & MARKETINGThe IoT and Big Data can enable new customer profi les and much more detailed customer behaviour analysis to be captured and optimised. Patterns and trends will point to new sales opportunities and new eco-systems can be exploited beyond the traditional market boundaries. New up-sell and cross-sell opportunities can be identifi ed and new, stronger value propositions can be presented to customers.

■ DELIVERY, AFTER SALES & SUPPORT

Similar to Sales and Marketing, in the area of after-sales and support, the IoT can allow data collection on delivery, usage, associated behaviour, complementary products and services. A wide range of cross-sell and up-sell opportunities will be enabled, and new added-value services will be created.

■ RESOURCE MANAGEMENTAs IoT sensors get smaller and cheaper, and their use becomes wide-spread and common, they will find their way into parts, assets, vehicles, equipment, tools, clothing and of course be linked to individuals. A wide range of tracking, optimisation, utilisation and pattern analysis services will be created, and services sold on the back of such advances.

In addition to challenges and opportunities in each industry sector, within a business the IoT can present challenges and opportunities in each part of the value-chain:

WHAT ARE THE IoT IMPLICATIONS FOR YOUR ORGANISATION?To consider how the IoT could aff ect your organisation, add the following questions to your strategic planning or business reviews:

p How could our current value proposition be aff ected (positively or negatively) by developments in the IoT?

p How could our organisation leverage the IoT?

p How could the IoT threaten what we do?

p



ROGER HAZELDEN, Technical Specialist for Sensors and Optoelectronics, explained how Conekt is independent of any sensor manufacturer and can off er impartial advice not tied to any particular technology or supplier.

He is sceptical of the suggestions of a future with billions of interconnected devices across the whole world and believes that we will see discrete IoT systems rather than world-wide connectivity. His advice to any company considering expanding their off erings into the Internet of Things is to be wary of being seduced by the latest buzz around IoT.

“The fi rst thing to do is determine what problem IoT will solve. Is this a real problem that people will pay to have solved? Is there a real need? Is there a business case to be made?” he asks.

Once you have determined that there really is a business case then you are best served by seeking independent advice. Hazelden recommends the Knowledge

accidentally? Determine the level of security needed and then build that level of security into the design of the devices and systems right from the start. Bolt-on security as an afterthought will never be as robust as security included from the outset.

Future-proofi ng of your design is also an important consideration in Hazelden’s view. Will your system continue to function or be easily modifi ed if one of your suppliers goes bust? This is another area where initial thought, planning and investment will save you money in the long run.

In short, build a business case, seek independent advice, include security and future-proofi ng from the outset and only then budget to develop your IoT enabled devices and systems ■

Transfer Network (www.ktn-uk.co.uk) as a good place to start. The KTN is part of Innovate UK and is funded by the government to connect needs with answers in multiple technology areas including IoT. The KTN advisors will be able to off er impartial advice on the best way forward and connect you to companies and people who can help make it all happen.

Conekt have found that the most important factor for IoT project success is a rigorous defi nition of requirements right at the start of the project. To create this they use a number of proprietary and public domain tools working with technical, marketing and commercial representatives of your business so that everyone’s viewpoint is considered.

Security needs to be considered right from the outset. Hazelden suggests asking the question: What are the consequences of the system being broken in to, either deliberately and maliciously or even

Roger Hazelden Conekt

INDEPENDENT ADVICEFOR IOT PROJECTS

Security needs to be considered right from the outset. Bolt-on security as an afterthought will never be as robust as security included from the outset.

Conekt is a business unit of ZF TRW and provides its customers with a complete engineering service from product development through to product validation and low volume product supply. The company works primarily at the sensor end of the Internet of Things advising clients on a range of issues focusing on sensors, electronics and wireless connectivity rather than big data analytics.

It’s radically changing the way we live...

1 Digital sensors generating ‘perfect’ data.Within the IoT, tiny sensors monitor all sorts of things, from temperature to speed, to vibration etc. That data is digital,

so can be stored and transmitted perfectly, every time. It can also be transmitted instantly, on a global basis, at almost zero cost. This means that business can now generate, store or access data on a scale and speed never before realised. This transforms the speed and effi ciency of the business. It also enables brand new services never before available and allows new entrants to every sector.

2 Machine-to-Machine CommunicationWithin the IoT, smart devices can ‘talk’ to other smart devices. They can make decisions, initiate actions, take

control. So entire functions within traditional businesses can be automated or eliminated. This will provide opportunity for some and will sound the death knell for others.

3 Big DataCollections of devices can generate trillions and trillions of bytes of data. Single data sets from a single device

might not generate that much value in themselves, but data from multiple devices, millions of users/machines and diff erent ecosystems can provide access to a ‘bigger picture’, where trends, behaviours, patterns, risks and probabilities become clear. New business services and value propositions can be built around these, and the IoT itself can be used to monetise data patterns and pictures.

4 Multiple EcosystemsA single manufacturer can develop a range of products and services to leverage the IoT. They can even build their

own ecosystem based on their products or their brand. But they can also integrate with other ecosystems to widen the scope, to leverage more value, to generate new value propositions. New businesses will be created that simply exploit data and ecosystems that others take part in but don’t leverage.

So the IoT will actually create some fundamental changes to the way things work; the way we live. It doesn’t matter what sector you operate in, or what size your business is. The IoT could potentially make what you do obsolete. It could allow you to enter a totally new space that far exceeds what you have done to date.

Technology has been a ‘game-changer’ since its inception; it has accelerated businesses, reduced cost, allowed rapid scaling, allowed global reach and so-on.

Rethinking your Strategy for an IoT World

So why is the IoT diff erent?

Time to re-think?


42 March 2016 | VQ

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r In conclusionHow to get started?AT YOUR NEXT BOARD MEETING, business review or strategic off site, you might want to add the following key questions to your agenda:

■ How will the Internet of Things aff ect our customers, our business and our industry in the next 3-5 years?

■ What are we doing as an organisation to protect our business, and to leverage the opportunities it presents?

■ As a business, are we doing enough or are we ignoring The Internet of Things?

We just can’t aff ord to ignore it...

IT’S A BIG TOPIC. It’s moving fast and changing on a daily basis. Some of the issues and challenges present problems to which we don’t yet have all of the answers (eg. security and the use/ownership of data). But because it’s moving fast, because it has the ability to radically change the way we live, the way we work, the way that businesses operate, we just can’t aff ord to ignore it.The Internet of Things presents all sorts of challenges and opportunities – to all industry sectors and organisations of all types and sizes. As business leaders, owners or entrepreneurs we need to ask ourselves some basic questions. We need to re-evaluate our basic operations and value propositions. We need to think outside of the box and look at what we can re-invent.


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VQ8 - The Internet of Things April 2016

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