We are currently living in times of great transformation. We have over the last couple of decade seen the Internet become the most powerful disrupting force in the world, connecting everyone and transforming businesses. Now everyday objects - things we use are getting smart with sensors and software. And they are connecting. What does this mean? In this lecture we explore the Internet of Things, IoT

1. Lecture L23
INTERNET OF THINGS

3. “Some have suggested that the internet of things
“changes everything,” but that is a dangerous
oversimplification.”
- Michael E. Porter & James E. Heppelmann

4. The next revolution has started
Everyday object get sensors and software and
connect to the internet

5. The Third Wave of IT

6. Waves of IT - Information Technology
1960s and 70s - first wave automated processing
1980s and 90s - powerful networked computers and
the Internet
Both waves cause jobs to be eliminated and
productivity to be dramatically increased

7. The Third Wave of IT
IT is now integral part of the product themselves
Embedded sensors, processors, software, and connectivity in
products, coupled with a product cloud in which product data
is stored and analyzed and some applications are run, are
driving dramatic improvements in product functionality and
performance.
Source: HBR

11. Adjacent Possible

12. The Impact of the Smartphone
Smartphone revolution starts 2007
Contains multiple of sensors
Barometer to sense air pressure and relative elevation
Accelerometer to measure distance by walking or running
Gyroscope to measure orientation
Information spillover

13. Processors and sensors
Processors and sensors are now widely available and
cheap
Examples Raspberry pi computer, Arduino

15. By 2020 a cumulative 100 billion processors
will have been shipped, each capable of
processing information and communicating
(Source: Ericsson)

16. Things get connected

17. Physical components comprise the product’s mechanical and
electrical parts
Smart components comprise the sensors, microprocessors,
data storage, controls, software, and, typically, an embedded
operating system and enhanced user interface
Connectivity components comprise the ports, antennae, and
protocols enabling wired or wireless connections with the
product
Smart Connected Things

18. Connectivity takes three forms, which can be present together:
One-to-one: An individual product connects to the user, the
manufacturer, or another product through a port or other
interface
One-to-many: A central system is continuously or intermittently
connected to many products simultaneously
Many-to-many: Multiple products connect to many other types
of products and often also to external data sources
Connectivity

19. Product
Things can be anything
Source: HBR

20. 1. Product
Source: HBR

21. 1. Product
2. Smart product
Processors
Sensors
Software
Source: HBR

22. 1. Product
2. Smart product
Processors
Sensors
Software
3. Smart connected product
Processors
Sensors
Software
Source: HBR

23. 1. Product
2. Smart product
Processors
Sensors
Software
3. Smart connected product
Processors
Sensors
Software
Source: HBR
Farm
equipment
system
Planters
Tillers
Trackors
Combine
harvesters
4. Ecosystem

24. Source: HBR
System of systems
Products become
part of large
ecosystems

26. Between 2013 and 2022, $14.4 trillion of value (net profit)
will be “up for grabs” for enterprises globally
(Source: Cisco)

27. The New Technology Stack
Smart, connected
products require
companies to build
and support an
entirely new
technology
infrastructure
Source: HBR

28. What Can Smart, Connected Products Do?

29. What Can Smart, Connected Products Do?
Monitoring
Smart, connected products enable the comprehensive
monitoring of a product’s condition, operation, and
external environment through sensors and external
data sources
Source: HBR
Example: Glucose Monitor
that connects to your smartphone

30. What Can Smart, Connected Products Do?
Control
Smart, connected products can be controlled through
remote commands or algorithms that are built into the
device or reside in the product cloud
Source: HBR
Example: Lockitron door lock

31. What Can Smart, Connected Products Do?
Optimization
The rich flow of monitoring data from smart, connected
products, coupled with the capacity to control product
operation, allows companies to optimize product
performance in numerous ways, many of which have
not been previously possible
Source: HBRExample: Diebold self-repairing AMTs

32. What Can Smart, Connected Products Do?
Autonomy
Monitoring, control, and optimization capabilities
combine to allow smart, connected products to
achieve a previously unattainable level of autonomy.
Source: HBR
Example: iRobot’s Roomba vacuum cleaner

33. Examples

35. Nike +
Fuelband
activity
monitor

37. Jawbone UP
activity
and sleep
monitor

39. Lockitron
Lock
system

41. Phillips Hue
Lighting
System

43. NEST
Thermostat

45. iGrill
Grilling
Thermometer

47. SONOS
Sound
system

49. Samsung
Smart
washer

51. Babolat
Tennis
racket

53. Ralph Lauren
The Tech Polo
Shirt

55. Scanadu
Health
Monitoring

56. Smart Homes

58. NEXT: THE FUTURE