5. 5
“The Internet of Things is the network of
physical objects that contain embedded
technology to communicate and sense or
interact with their internal states or the
external environment.” (Gartner)
“The Internet of Things (IoT) represents a new
construct in the information and
communications technology (ICT) world that is
occupying the minds of IT vendors, service
providers, and systems integrators as it
represents huge potential for new streams of
revenue and new customers.” (IDC)
“The Internet of Things (IoT) is emerging as the
third wave in the development of the
Internet.” (Goldman Sachs)
The Internet of Things (IoT) is the network of
physical objects or "things" embedded with
electronics, software, sensors and connectivity
to enable it to achieve greater value and
service by exchanging data with the
manufacturer, operator and/or other connected
devices. Each thing is uniquely identifiable
through its embedded computing system but
is able to interoperate within the existing
Internet infrastructure. (Wikipedia)
6. 6
Internet of Things
The Internet of Things connects inanimate devices (e.g.
consumer devices, industrial equipment) onto the network,
enabling information gathering and management of these
devices via software to increase efficiency, enable new
services, or achieve other health, safety, or environmental
benefits.
7. 7
Advanced Wireless
Networks
Proliferation of low cost,
smaller, mobile devices,
wearables, smarter sensors,
and chips that can be
embedded in anything and can
communicate over the Internet.
On going development of
smart cities, cars, and houses.
Enhanced connectivity
infrastructure.
An increasingly connected
culture.
TECHNOLOGY DRIVERS
What is the driving the adoption of
IoT?
8. 8
NFC
Cellular 4G / LTE
LTE Advanced
3G - GPS / GPRS
WEIGHTLESS
2G / GSM / EDGE, CDMA, EVDO
ZIGBEE
WiFi
UWB
WIMAX
TM
ETHERNET
PRINTED
DASH 7
POWERLINE
LICENSE-FREE SPECTRUM
ANT
6LoWPAN
Z-WAVE
WAN
Wide Area Network - 802.20
InterPlanetary Network
PAN
Personal Area Network - 802.15
LAN
Local Area Network - 802.11
MAN
Metropolitan Area Network -802.16
RFID
NFC
BLUETOOTH
IPv4 IPv6 UDP DTLS RPL Telnet MQTT DDS CoAP XMPP HTTP SOCKETS REST API
Location &
Tracking
Upgrades & Configurations
Financial
Control & Automation
Security / Energy
Supply Chain Management
Customer Relationship
& Support
Analytics & Cloud/API
Remote Monitoring / Maintenance
2000 2006 2012
10
20
30
40
50
60
0
Mobile Devices & Apps
People
Processes
2 CONNECTIVITY
These inputs are digitized and placed onto networks.
3 PEOPLE & PROCESSES
These networked inputs can then be combined into bi-directional systems that integrate data,
people, processes and systems for better decision making.
The interactions between these
entities are creating new types
SENSORS + CONNECTIVITY + PEOPLE + PROCESSES
FlowF orc e / Lo a d / Torq u e
Strain / Pressure
Chemical / Gas
Acoustic / Sound / Vibration
HOME
CONSUMER BODY
INFRASTRUCTURE
INDUSTRY
MOBILITY
TRANSPORT
HEALTH CITIES
BUILDINGS
NFC
ZIGBEE
UWB
ETHERNET
PRINTED
POWERLINE
ANT
6LoWPAN
Z-WAVE
WAN
Wide Area Network - 802.20
PAN
Personal Area Network - 802.15
LAN
Local Area Network - 802.11
MAN
Metropolitan Area Network -802.16
RFID
NFC
BLUETOOTH
IPv4 IPv6 UDP DTLS RPL Telnet MQTT DDS CoAP XMPP HTTP SOCKETS REST API
Location &
Tracking
Upgrades & Configurations
Financial
Control & Automation
Security / Energy
Supply Chain Management
Customer Relationship
& Support
Analytics & Cloud/API
Remote Monitoring / Maintenance
2000 2006 2012
10
20
30
40
50
60
0
Mobile Devices & Apps
People
Processes
3 PEOPLE & PROCESSES
These networked inputs can then be combined into bi-directional systems that integrate data,
people, processes and systems for better decision making.
The interactions between these
entities are creating new types
of smart applications and services.
SMART THERMOSTATS
SENSORS + CONNECTIVITY + PEOPLE + PROCESSES
CONNECTED CARS PARKING SENSORSSMART OUTLETSACTIVITY TRACKERS
Save resources and
money on your heating
bills by adapting to
your usage patterns
and turning the
temperature down
when you’re away from
home.
Tracked and rented
using a smartphone.
Car2Go also handles
billing, parking and
insurance automatically.
Continuously capture
heart rate patterns,
activity levels, calorie
expenditure and skin
temperature on your
wrist 24/7.
Remotely turn any
device or appliance on
or off. Track a device’s
energy usage and
receive personalized
notifications from your
smartphone.
Using embedded
street sensors, users
can identify real-time
availability of parking
spaces on their phone.
City officials can
manage and price
their resources based
on actual use.
Starting with popular connected devices already on the market
And quickly advancing
TO DIVERSE APPLICATIONS
Sensors & Actuators Connectivity People & Processes
Credit: Harbor Research, a16z, Postscapes, IBM,
IoT is driven by convergence
Explosive Smartphone GrowthCloud Computing Big Data & Analytics
9. Why Now?
Started Making Economic Sense
9
$1.30
.60
Avg. Cost
Over the past 10 years
Cost of Sensors
60x
Cost of Processing
Over the past 10 years
40x
Cost of Bandwidth
Over the past 10 years
11. 11
HOME
CONSUMER BODY
INFRASTRUCTURE
INDUSTRY
MOBILITY
TRANSPORT
HEALTH CITIES
BUILDINGS
SMART THERMOSTATS CONNECTED CARS PARKING SENSORSSMART OUTLETSACTIVITY TRACKERS
Save resources and
money on your heating
bills by adapting to
your usage patterns
and turning the
temperature down
when you’re away from
home.
Tracked and rented
using a smartphone.
Car2Go also handles
billing, parking and
insurance automatically.
Continuously capture
heart rate patterns,
activity levels, calorie
expenditure and skin
temperature on your
wrist 24/7.
Remotely turn any
device or appliance on
or off. Track a device’s
energy usage and
receive personalized
notifications from your
smartphone.
Using embedded
street sensors, users
can identify real-time
availability of parking
spaces on their phone.
City officials can
manage and price
their resources based
on actual use.
Starting with popular connected devices already on the market
And quickly advancing
TO DIVERSE APPLICATIONS
Start with simple one to one applications…
Build on them using workflows, by tying them together….
+ GPS & Geo-fencing
Turns on your Thermostat
when you get closer to
your home
+ Weather APIs
Turn on the lamp when it
gets dark
12. Compounded IoT Workflow
12
more tightly coupled across
time, location & services.
R Hotel Denver,
Industrial Washer #GHS40-2608
The request lays out: - Pricing parameters
- Timing requirements
- Machine history
- Part specs
- Predictive sensor
measurements & alerts
Tom from IA Appliances bids on the service request and receives a
notification a few moments later that his bid was accepted.
Within 1.5 hours, a service technician from IA Appliances is on site
(Using a temporary facility access code for the wireless door lock) to replace
the water pump. Connor sends a brief note on the service
quality and IA Appliances releases a bid request for the part’s raw
materials to local recycling centers.
Location: ID: FC-RM #00243
Manufacturer: Appliance Park
Louisville, KY ID: #45205343
Materials: FC / SUS
Sensor: Vibration
Connectivity: Wireless LAN
REAL-TIME
SERVICE NETWORKS
Appliance Monitoring
Service Technician /CRM
Waste Management /
Recycling
Predictive Maintenance
Connor, the Lead Maintenance Manager at the R Hotel in Denver
receives a sensor notification that the pump body O-ring #6 on
washing machine #230243 is starting to fail in the housekeeping
laundry room.
On his mobile, Connor prompts the machine to order a new part.
This action triggers a bidding opportunity for local service
technicians within the product’s authorized maintenance network.
14. How to categorize IoT Companies?
14
Infrastructure
Subsystems
IoT-enabled Products & Services
Companies providing infrastructure to enable IoT - hardware, software,
platforms companies such as Amazon, Cisco, Bosch, ABB, Zebra, RTI,
IoT Customers / Consumers
These companies are customers to the Infrastructure companies - and they
build complete solutions, products, and services around IoT such as Nest,
These companies build accessories, parts, subsystems to enable IoT -
software, hardware, mechanical, electrical etc. Semiconductor companies fall
These are companies that leverage IoT products to improve their daily lives or
manufacturing or operations etc. These are the “consumers” of IoT technology
15. Vertical Segmentation
“In our view, it (IoT) can be broken
up into five key verticals of
adoption: Connected Wearable
Devices, Connected Cars,
Connected Homes, Connected
Cities, and the Industrial
Internet.” (Goldman Sachs)
17. Changing Business Models, Capturing Value
17
Traditional Product
Mindset
IoT Mindset
Value Creation Customer Needs
Solve for existing needs and lifestyle in a reactive
manner
Address real-time and emergent needs in a
predictive manner
Offering
Stand alone product that becomes obsolete over
time
Product refreshes through OTA updates and has
synergy value
Role of Data
Single point data is used for future product
requirements
Information convergence creates the experience
for current products and enables services
Value Capture Path to Profit Sell the next product or device Enable recurring revenue
Control Points
Potentially includes commodity advantages, IP
ownership, & brand
Adds personalization and context; network effects
between products
Capability
Development
Leverage core competencies, existing resources &
processes
Understand how other ecosystem partners make
money
19. 19
Making Things Smart
Do an IoT-related web search, and you’ll quickly notice the overuse of the term “smart.”
So, what does it really mean when something is smart, and what makes an object smart?
For example, how would a refrigerator or a toaster oven that hasn’t been considered smart
become a smart appliance?
Today, we are seeing the electrification of the world around us. Almost any manufactured
good now includes an embedded processor (typically a microcontroller, or MCU), along with
user interfaces, that can add programmability and deterministic “command and control”
functionality. The electrification of the world and the pervasiveness of embedded processing
are the keys to making objects “smart.”
Your old toaster that mechanically controlled the color of your toast now has an MCU
plications
oftware
Smart
Lighting
Smart
Cars
Smart
Tags
Smart
Health
Smart
Energy
Supply Chain
Automation
Air Quality
Control
BLDG
Automation
Remote Appliance
Avoidance
Pedestrian
Navigation
M2M
Auto
Safety
Smart
Parking
Smart
Homes
Smart
Grid
Technology
Innovations
Sensing Embedded
Processing ConnectivitySensing Embedded
Processing Connectivity
Accelerometer
Mognetometer
Gyroscope
Pressure
Altimeter
Temperature etc.
MCU
MPU
Hybrid MCU/MPU
Network Processor
NFC
6LoPAN
Sub-Gig
ZigBee®
GPS
BT/BTLE
Wi-Fi®
RFID
Cellular
• Miniaturization and advances
in packaging technologies
• Advances in flash
• New class of powerful, but
low-cost and low-power MCUs
• Cloud-based services
Connecting sensors/actuators to
“Things/Devices”, Local Processing
and communicating to the Cloud
Domain specific applications &
services - DISTRIBUTED across
Gateway, Cloud and Smartphones
Non IP Connectivity and/or the Need
for Edge/Local decision making
requires a Gateway or an Aggregator
IoT apps & solutions are distributed,
across things, edges, networks and clouds
End Node
Device, Thing
Gateways
FOG
Edge Processing
Cloud
20. 20
“CEOs are moving from leading companies
that make cars, toasters, elevators,
construction equipment, washing machines
and more to companies that are, basically,
producing Internet-connected devices.” (Forrester)