Internet of Things
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What is Internet of Things and how it has been used in the Industrial growth (GE Case Study) and its current IT Strategy in the market.
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Internet of Things
- 1. 1 INTERNET OF THINGS Presented By: Piyush Srivastava Swapnil Junjare Siddharaj Deshmukh Prannoy Pal Archana Vasanthan Sachin K Ranganathan
- 2. Introduction to IOT In a 1999 article for the RFID Journal Ashton wrote: “If we had computers that knew everything there was to know about things—using data they gathered without any help from us -- we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. We need to empower computers with their own means of gathering information, so they can see, hear and smell the world for themselves, in all its random glory. RFID and sensor technology enable computers to observe, identify and understand the world—without the limitations of human-entered data.” What is IOT? The Internet of Things is the interconnection of uniquely identifiable embedded computing devices with the existing internet infrastructure.
- 3. Evolution of IOT through the ages
- 4. Why IOT? - Advantages • Automation of Daily Tasks leads to better monitoring of devices • machine to machine communication helps maintain transparency in the process • Efficient and Saves Time • It is useful since tasks don't have to be repeated manually saving time for other stuff • Saves Money • Better Quality of Life • Better Decision Making
- 5. Disadvantages • Loss of Privacy and Security • All household devices being connected to the internet is a risk • Compatibility • Not all devices are the same. Compatibility issues will persist • Complexity • Power failures can also cause problems • Technology taking control of life • Dependence on IOT
- 7. 7 Top IOT Vertical Markets Agriculture : • To grow from 30 million in 2015 to 75 million in 2020. • Collection of data using sensors. • Ex. John Deere Tractors and Phenonet Project • Farmers get sense for best time to plant crop. Manufacturing : • Biggest industry being impacted by IoT. • global manufacturers will invest $70 billion on IoT solutions in 2020 • factories to be more productive and efficient using sensors. • Better tracking of assets in the factory. HealthCare : • Better Service for patients and efficient Business. • Ex. MRI Machine and other medical devices using sensors. • Predict Repair and behaviour • Ex- Future Path Medical’s UroSense (Measures CBT) Philips’ Medication Dispensing Service
- 8. 8 Top IOT Vertical Markets - cont. Retail : • Bluetooth Beacons paired with mobile apps to monitor customer behaviour. • Customer Receives Information and personalized discount. • Estimate of $44 Billion market through beacon triggered messages. Transportation : • From Supply Chain Logistics to public transit for better transportation. • Ex. Sensors to monitor Temperature in Vehicles. • Help Driver to save fuel. • To monitor when Fleet vehicles need repair. • To help reduce traffic and prevent accidents. • 2 million connected cars on the road by 2020. Energy : • PG&E are beginning to use Smart meters. • To track customer’s energy usage. • Predict demand, Spot Outages and Schedule Repairs. • 1 Billion Smart Meters by 2020.
- 9. 9 Innovative Applications of IOT • Smart Homes / Home Automation: It is one where devices have the capability to communicate with each other. • Ex - Nest Learning Thermostat Philips Hue-Smart Home Lighting – 600 to 800 lumes. • Wearables: • These devices broadly cover the fitness, health and entertainment requirements Ex- Jawbone UP2 , Fitbit ChargeHR , Motorola Moto 360 Sport. • Smart City : • IOT solves traffic congestion problems, reduce noise and pollution and help make cities safer. • Ex - CitySense-Smart Street Lighting ( Adjusting Brightness of Street lights ) • Smart Parking to detect available parking spots. • Security & Emergencies • Smart Water: wireless sensor networks to detect floods and respond • measure increased water levels and generate alerts • Wireless Sensor Networks to Control Radiation Levels • send the information in real time using wireless technologies
- 10. 10 About GE and its Industries • GE traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in 1878. • In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. • The GE conglomerate consists of eight subsidiaries in different industries. These subsidiaries are: • GE Aviation, GE Capital, GE Global Research, GE Healthcare, GE Home & Business Solutions, GE Oil & Gas, GE Power & Water, and GE Transportation. • GE is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. • GE has Bet Big on the Industrial Internet as IIOT: • IIoT has been referred to as the smart or connected factory. • IIoT not only automates your operations but also brings transparency to every stage of the supply chain.
- 11. 11 Impact of IOT on GE • invested $1 billion to put sensors on gas turbines, jet engines, and other machines. • The Software Behind GE’s Industrial Internet – Predix, a cloud-based platform for creating Industrial Internet applications. • Patterns of sensor data used to predict the schedule maintenance checks, improve machine efficiency, and reduce downtime. • single unproductive day on a platform can cost a $25 million. • analyzing what differentiated one machine’s performance from another — what made one more efficient. • In 2014, GE generated $1.3 billion in Predictivity revenue from new software and analytics offerings in the market • GE believes Predix can help the oil and gas industry in – • Improving Asset Productivity • creating a real-time picture of the status of an entire operation • Support for an Aging Workforce • building an Industrial Internet platform that meets customer needs.
- 12. 12 Internet Of Things – AS-IS / TO-BE Analysis Business Strategy – (Part 1 / 3) Strategy 6 C Framework to measure Value Network AS-IS TO-BE Business (Transforming from business model of a corporation to Ecosystem Business Model) Without IOT With IOT Context Dimension Cooperation Dimension Construct Dimension • Concentrated perspective on only core business. • Only supplier-customer relationship maintained. • Traditional lifecycle stages. • Return on investment (value creation) is concentrated. • Every sector has access to their own platform in the vertical. • Less/No engagement of partners to work together. • Structure: In-house software development for vertical specific needs. • Infrastructure: Technologies cater to only business needs in the vertical. • Expand perspective beyond core business. • Key Mission is each subsidiary functions in an integrated manner. • Interdependent organizations share their ideas for future developments • Change in lifecycle stages • Return on investment (value creation) will be expanded. • Due to the integrated nature of the ecosystem across horizontal communication and access to platform becomes easy. • Open interface encourages partners to work together. • Structure: Almost all industrial users/actors at various level are a part of the platform. • Infrastructure: IoT technology caters to business, operational as well as predictive needs of the business.
- 13. 13 Internet Of Things – AS-IS / TO-BE Analysis Business Strategy – (Part 2 / 3) Strategy 6 C Framework to measure Value Network AS-IS TO-BE Business (Transforming from business model of a corporation to Ecosystem Business Model) Without IOT With IOT Configuration Dimension Capability Dimension • Pattern: Focal firm dominance of verticals across the corporation. • External relationship: Various customer communities for different verticals or separate customers. • Vertical communication and accessibility of resources & information. • Limited Innovation & learning ability. • Less adaption & mobility beyond the vertical. • Selected partners contributing to the focal firm. • Less integration & synergizing ability across the corporation. • Pattern: One focal firm with other relevant stakeholders as a corporation. • External relationship: Flexible connection, thereby can target customers across horizontal. • Horizontal communication by opening access to the platform across the corporation. • Expanded learning ability to develop apps and increased innovation horizons. • Customized services for customers promising more adaption & mobility. • Diversified partners opened. • Integration & synergizing ability embedded in the platform.
- 14. 14 Internet Of Things – AS-IS / TO-BE Analysis Business Strategy – (Part 3 / 3) Strategy 6 C Framework to measure Value Network AS-IS TO-BE Business (Transforming from business model of a corporation to Ecosystem Business Model) Without IOT With IOT Change Dimension • Addition of more features (business & IT) following the traditional business/IT approach in the vertical. • The way interaction takes place among the customers and the stakeholders is mostly in feedback format. • Platform pattern shift from closed to open, as IoT platform would demand change in business approach across the corporation for complete value creation. • Interaction pattern shift between focal firm and stakeholders. • Co-evolve with the customers.
- 15. 15 Internet Of Things – AS-IS / TO-BE Analysis IT Strategy Strategy AS – IS (without IOT) To-BE (With IOT) IT 1. Equipment to enable the exchange of information between sensors, the cloud and devices. 2. Applications that facilitate the transmission, storage and analytics of sensor-collected data. Infrastructure Currently the IT infrastructure is limited to its department or sector for which it is used. Infrastructure Overall IT infrastructure will be needed to be expanded/integrated to include IT resources from various sectors of the corporation. Solutions such as IaaS,PaaS and SaaS Data Analytics Data Analytics is done on a smaller scale just to support the business, finance or support data, most solutions are in-house infrastructure BI applications. Data Analytics Data Analytics will be used extensively as there will be vast data due to influx of sensors in the system. Solutions of moving towards a cloud-based data center or analytics-cloud/analytics-as-a-service will have to be explored, device-based apps development. Networking Most of the enterprises have software-defined networking wherein the underlying network is abstracted just for applications and network services. Networking Networks would needed to be upgraded to become more agile to capture real-time analysis from sensors. Data will have a huge impact on networks, one solution can be distributed data centers. Security Due to low connectivity among different applications/services the security threat is lowered and only traditional ways are implemented when it comes to IT/data security Security Hyper-connectivity between machine-to-machines posses the need to think of various security steps for IT. Integration layer of operations technology and IT would demand security.
- 16. 16 Competitive Rivalry Threat : High •New avenues for product differentiation and value- added services •Capture existing customer segments by provided specific customized solution Porter’s Five Forces Buyers Suppliers Threat : Medium Threat : Low Substitute Products Threat: Medium Threat: Medium New Entrants Bargaining Power of Buyers • Product Differentiation • Storage and analysis of products data • After-sales service • Supply chain management Threat of New Entrants • New Entrants could provide better products/services with implementation of IoT. • Demand for IoT products increases when it is cross- sectional Bargaining Power of Suppliers • Limited suppliers for customer specific solutions • New technology/skills are invested to build IoT solutions Substitute Products • Superior products • Capture existing customer segments • Product-as-a-Service business model could substitute traditional products
- 17. 17 SWOT Analysis(As-Is) Strengths • No data security risks • Less complex systems • No radical change in organizational structure, processes, physical infrastructure Weakness • No centralized management of systems across organization • Labor costs • Inefficient tracking/monitoring of inventory/assets • No diagnostic, predictive maintenance Opportunities • Focus more on brand-awareness Threats • No edge over competition • Customer Dissatisfaction • Lack of demand for existing products • Limitations in achieving Operational Excellence
- 18. 18 SWOT Analysis(To-Be) Strengths • System interoperability • Monitoring, Control, Optimization and Autonomy • Productivity gains, operational excellence, reduced labor costs • Cross-functional collaboration, data resourcing Weakness • Data Security and Privacy • Compatibility among products of different standards • Data sharing among companies a sensitive issue Opportunities • Integrating Data analytics provides deeper insights • Focus on Customer Intimacy • Capture new market and customer segments • Reshape value chain of organization/eliminate silos Threats • Vulnerability to hacking • Huge Investments as organization processes, technical infrastructure needs to be changed • Government regulations on Data Usage
- 19. 19 ANS-OFF Matrix Existing Products New Products Existing MarketsNewMarkets Product Development • Quality Products at competitive prices • Analysis of customer’s historical data identifies new requirements • Product as a Service • Low-Cost variability Diversification • Join forces with torch-bearers of other industries to gain new segments • Customized products to serve different customer segments • Provide After-Sales services Market Penetration • Identify customer requirements, provide customized incentives • Operational Excellence provides competitive advantage • Increased market share Market Development • Identify new customer and market segments • Expand geographically • Identify new distribution channels to supply products
- 20. 20 STROBE-STROIS Matrix Business Strategy Led Organization Led Conservative Technology Led STROBE Strategic Operation of Business Enterprise STROIS Strategic Orientation of ISLOW HIGH HIGH
- 21. 21 Fish-Bone Matrix (As-Is) Cost Privacy & Security Efficiency System Maintenance Labor Force Cost Operating Cost Time Cost No Network Risk Lack Of Connection More Processing Cycles Decentraliz ed Management Expensive Maintenance Less Efficient Time Consumin g WITHOUT IOT
- 22. 22 Fish-Bone Matrix (To-Be) Cost Privacy & Security Efficiency System Maintenance Reduced Labor Force Cost Reduce dTime Cost Focussed Risk Well Connected Systems More Efficient Centralized Management Periodic Maintenance Professionall y maintained USING IOT Virtual Operation
- 23. 23 Gartner Hype Cycle for Emerging Technologies
- 24. Gartner Hype Cycle for Internet of Things
- 25. 25 Risks & Challenges with IOT • Lack of Security • Lack of Privacy • Storage Issues • Energy demands • Industrial IOT must Be Built for Maintenance and Updates
- 26. Alternatives • No alternatives have been in the market since IOT is making organization, efficient. • Few organizations want to stick around with the manual tasks which has less efficiency and higher manual cost. • Small scale organizations don’t want to implement because of high complexity and high investment.
- 27. 27 Future Scope (Recommendation) • IoT and wearables create a higher level of personalization • Consumer-facing industries will be changed by IoT • IoT gets accountable • The “Edge” will become a huge growth market • “Big Data” IoT analytics will generate “Big Revenue”
- 28. Conclusion • Closer to being implemented • Manufacturers and agencies are building small scale versions • Legal and security issues are present so yet to make a greater impact.
- 29. 29 References [1]http://www.datamation.com/data-center/the-internet-of-things-7- challenges.html [2]Harvard Business Review Article:How Smart Connected Products Are Transforming Competition [3]Harvard Business Review Article:How Smart Connected Products Are Transforming Companies [4] http://theiotportal.com/2016/10/10/10-innovative-applications-of-iot-3/ [5] http://www.intelligenthq.com/technology/guide-internet-things-part-1- definition-concept/ [6]https://hbr.org/2014/10/the-sectors-where-the-internet-of-things-really-matters [7]http://www.plasmacomp.com/blogs/top-iot-vertical-markets [8]http://www.gartner.com/newsroom/id/3412017
Editor's Notes
- Notes: IoT can enable local and commercial farming to be more environmental friendly, cost effective and production efficient. Phenonet Project is designed to help farmers monitor crucial vitals like humidity, air temperature and soil quality using remote sensors to improve the yield, plan irrigation as well as make harvest forecasts. In Healthcare medical devices connect up to the internet, and hospital staff can get alerts for when repairs are needed. In Manufacturing use of sensors in the machines can collect data off the machines and the behavior of how that machine is being used.
- Notes: Retailers are beginning to use Bluetooth beacons in their stores to better reach their customers. Sensors and smart software can also be used in a semi-truck or public bus to collect data that can be used to help the driver operate the vehicle in a manner that helps save fuel. Smart meters are basically electronic devices that keep track of a customer’s energy usage and are able to communicate with the utility company’s central system.
- Notes: In simple words a smart home is the one in which the devices have the capability to communicate with each other as well as to their intangible environment. Wearables are one of the hottest trends in IoT currently. These devices broadly cover the fitness, health and entertainment requirements. Smart surveillance, safer and automated transportation, smarter energy management systems and environmental monitoring all are examples of internet of things applications for smart cities. Be it a natural disaster like flood, tsunami, earthquake or an environmental change or precaution to control Radiation Levels, Ultraviolet solar radiation, innovative IoT applications could be a boon for the people.
- Notes: The use of Industrial Internet of Things(IIOT) has been referred to as the smart or connected factory. IIoT not only automates your operations but also brings transparency to every stage of the supply chain, unlocking new opportunities for competitiveness and economic growth. IIoT adoption enables companies to exploit intelligent technologies, foster innovation, increase production, and transform the workforce.
- Notes: A major component of a connected factory are sensors, which can improve plant connectivity and visibility. As equipment becomes more connected and intelligent, visibility and optimizations can extend from manufacturing processes into every stage of the supply chain.
- For the As-Is/To-Be Analysis, I have take the business value creation approach, saying without IOT how the value creation of the business is for the organisation and with IOT how the value creation of the business will be and accordingly what changes business has to make. For this help of 6C framework is been take to analyze the business strategy for IOT. This talk about how the 6C of a business would be affected with the emergence of IOT.
- Here we talk about the configuration and the capabilities of the business in the current organization structure how that would need to be changed.
- This slide talks about the last C of the 6C framework, that how the changes are handled in the current business organization structure and once IOT is implemented how this change managment would evolve.
- Implementation or development of IOT platform across the corporation is business led rather than technology led, so we have just discussed the major areas where IT of an organization would have to make/enhance/upgrade changes to support IOT platform, business and customers. There are also possibilities of huge infrastructure enhancements of IT needed for IOT which we have not discussed here in detail, only the major changes are mentioned.
- Porter’s 5 forces focusses on the external aspects of an organization.
- This slide talks about the Strengths, Opportunities, Weaknesses and Threats of the AS-IS(Without IoT) scenario.
- This slide talks about the Strengths, Opportunities, Weaknesses and Threats of the To-Be (IoT) scenario. Strengths focus of the benefits obtained from connectivity among systems to form a system. Weaknesses focusses on the data sharing, security and privacy issues encountered during storage of data. Opportunities focus on the value generated by implementing IoT. Data Analytics provides deeper insight of Business and Customer. Which harnessed to its full potential can help in identifying new avenues for the organization.
- This slide talks about how the marketing strategy of the products when IoT is implemented in the company. For existing markets, the organization would need to understand what more features could be added to their existing products. This could be understood by performing analytics on customer’s rich history to provide efficient customer services and incentives/promotions to retain customers. For entering new markets, we would need to join forces with torch-bearers in other industries, by emphasizing on the benefits that company would provide thorough IoT implementation.
- Strobe- Strois Matrix is used for Strategic Alignment. -> Technology (IOT) in great accordance with Business Strategy -> Driven with long term goals -> Greatly led by technology
- A Fishbone Diagram is often used to identify and organize the potential causes of a business problem in an easy and understandable format. We have analysed our issue on the basis of 4 parameters: Cost, Privacy & Security, Efficiency and System Maintenance
- This shows how the 4 parameters are affected with the integration of technology.
- Gartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications, and how they are potentially relevant to solving real business problems and exploiting new opportunities.
- This gartner hype cycle is specific to internet of things and explains the current trends of various IOT related services.
- Basic devices like Satellites, routers, network devices are easy to hack In 2015, first car was cracked while being operated Smart devices are getting tracked and government agencies are supplying a wealth of information. Storage of resources will increase the energy demands. Industrial systems need to be continually modified and maintained to meet changing requirements.
- Wearables are poised to become important participants in the IOT, interacting seamlessly with other screens and devices and creating ever-more personalized experiences for their owners In 2017, the IoT and connectivity will continue to drive a fundamental shift in the way consumer-facing industries engage with their customers. The focus will be on the operationalization of IoT – how to monitor, manage and secure the IoT infrastructure