Does your house have a smart thermostat? Or do you wear a fitness tracker to help you stay physically active? If you do, you are part of the Internet of Things, or IoT. It’s become embedded in our lives, as well as in the way organizations operate.
IoT uses a variety of technologies to connect the digital and physical worlds. Physical objects are embedded with sensors—which can monitor things like temperature or motion, or really any change in the environment—and actuators—which receive signals from sensors and then respond to those changes. The sensors and actuators communicate via wired or wireless networks with computing systems that can monitor or manage the health and actions of connected objects and machines.
The constant connectivity that IoT enables, combined with data and analytics, provides new opportunities for companies to innovate products and services, as well as to increase the efficiency of operations. Indeed, IoT has emerged as one of the most significant trends in the digital transformation of business and the economy since the 2010s.
What are some IoT applications?
Looking at IoT applications, which are sometimes described as use cases, can help ground the discussion about what IoT is. Broadly, IoT applications occur in one of nine settings.
- Human health. Devices can be attached to or inserted inside the human body, including wearable or ingestible devices that monitor or maintain health and wellness.
- Home. Homeowners can install devices such as home voice assistants, automated vacuums, or security systems.
- Retail environments. Devices can be installed in stores, banks, restaurants, and arenas to facilitate self-checkout, extend in-store offers, or help optimize inventory.
- Offices. IoT applications in offices could entail energy management or building security.
- Standardized production environments. In manufacturing plants, hospitals, or farms, IoT applications often aim to gain operating efficiencies or optimize equipment use and inventory.
- Custom production environments. In customized settings like mining, construction, or oil and gas exploration, IoT applications might be used in predictive maintenance or health and safety efforts.
- Vehicles. IoT can help with condition-based maintenance, usage-based design, or presales analytics for cars, trucks, ships, airplanes, and trains.
- Cities. IoT applications can be used for adaptive traffic control, smart meters, environmental monitoring, or managing resources.
- Outside. In urban environments or other outdoor settings, IoT applications could involve real-time routing, connected navigation, or shipment tracking.
Other real-world examples abound. IoT solutions are being used in numerous settings: in refrigerators to help restaurants optimize their food-compliance processes; in fields to track livestock; in offices to track how many and how often meeting rooms are used; and beyond.
What is the economic impact of IoT?
The potential value of IoT is large and growing. By 2030, it is estimated that it could amount to up to $12.5 trillion globally. That includes the value captured by consumers and customers of IoT products and services.
The potential economic value of IoT differs based on settings and usages, with factory settings and human health applications representing significant shares of this total. Factory settings could generate $1.4 trillion to $3.3 trillion by 2030, or just over a quarter of the total value potential. IoT economic impact in human health settings could reach around 14 percent of the total estimated value.
What are IoT platforms?
To get value from IoT, it helps to have a platform to create and manage applications, run analytics, and store and secure your data. These platforms handle issues like connecting and extracting data from different endpoints, which might be in inconvenient locations with spotty connectivity.
If you are trying to choose an IoT platform, here are five characteristics to consider when evaluating IoT platforms:
- Applications environment. Can the platform develop, test, and maintain multiple applications? Can it connect easily to the applications your company already uses?
- Data management. Can the platform structure and join multiple unfamiliar data sets?
- Ownership of cloud infrastructure. Does the infrastructure provider own and operate its own data centers?
- Security. What commercial-grade authentication, encryption, and monitoring capability does the platform have?
- Edge processing and control. Can the platform do edge analytics without bringing data into the cloud? Can it be easily configured to control local assets without human intervention?
What should I know about IoT security?
The billions of IoT devices in use have created new vulnerabilities for companies. Promoting cybersecurity is crucial in the IoT era. It’s important to address customer privacy concerns vis-à-vis connected devices. But managing IoT cybersecurity is also about protecting critical equipment, such as pacemakers or entire manufacturing plants.
Six recommendations or actions could help CEOs and other leaders tackle IoT cybersecurity:
- Understand what IoT security will mean for your industry and business model.
- Set clear roles and responsibilities for IoT security in your supply chain.
- Hold strategic conversations with regulators and collaborate with other industry players.
- View cybersecurity as a priority for the entire product life cycle and develop skills to achieve it.
- Transform mindsets and skills rigorously.
- Create a point-of-contact system for external security researchers and implement a post-breach response plan.
What is IIoT?
The Industrial Internet of Things, or IIoT, is among the advanced manufacturing technologies collectively referred to as Industry 4.0, or the Fourth Industrial Revolution.
IIoT can drastically reduce downtime, open up new business models, improve customer experience, and make organizations more resilient. In the COVID-19 era, for example, digital management tools and constant connectivity allowed some companies to react to market changes swiftly and efficiently by adjusting production capacity and simultaneously supporting remote operations.
Companies using IIoT for digital transformation can follow seven guideposts to align their business, organization, and technology spheres and help leaders successfully position their organizations to reap the full benefits from IIoT.
What do I need to know about Internet of Things B2B uses?
Internet of Things B2B solutions account for the majority of economic value created from IoT to date. Marrying IoT and AI can improve the predictive maintenance capabilities of machines and empower service providers to monitor their assets’ health in real-time.
B2C applications have grown faster than expected, particularly given the adoption of home-automation solutions. However, through 2030, B2B applications are projected to nonetheless account for 62 to 65 percent of the total IoT value.
What dynamics could affect IoT adoption?
When it comes to getting more value from IoT, there are factors that could accelerate or constrain adoption.
Factors that could accelerate adoption include the perceived value proposition, affordable technology, and higher-performing networks. Conversely, factors that could constrain adoption include change management, interoperability issues, installation challenges, and concerns about cybersecurity and individual privacy.
To accelerate enterprise IoT journeys, it can be helpful to consider what can drive action, such as creativity, pushing for simplicity, and a focus on value.
FAQs
Q: What is the Internet of Things (IoT)?
A: The Internet of Things (IoT) refers to the network of physical objects embedded with sensors and actuators that communicate via wired or wireless networks. These objects can include everyday things like thermostats, wearables, and appliances.
Q: What are some examples of IoT applications?
A: IoT applications can be found in various settings, including human health, homes, retail environments, offices, production environments, vehicles, cities, and outdoor environments. Examples include wearable devices that monitor health, smart home devices, and adaptive traffic control systems.
Q: What is the economic impact of IoT?
A: The potential economic value of IoT is estimated to reach up to $12.5 trillion globally by 2030. This value is generated from various settings and applications, such as factory settings and human health.
Q: What are IoT platforms?
A: IoT platforms are systems that help create and manage IoT applications, run analytics, and store and secure data. These platforms enable connectivity and data extraction from different endpoints, facilitating the development of IoT solutions.
Q: Why is IoT security important?
A: With the increasing number of IoT devices, cybersecurity has become crucial. Protecting customer privacy, critical equipment, and the integrity of data is essential to mitigate vulnerabilities in the IoT ecosystem.
Q: What is IIoT?
A: The Industrial Internet of Things (IIoT) is a subset of IoT that focuses on advanced manufacturing technologies. IIoT can bring benefits such as reduced downtime, new business models, improved customer experience, and increased resilience for organizations.
Q: What are B2B uses of IoT?
A: B2B (business-to-business) applications of IoT account for the majority of economic value created. IoT and AI integration can enhance predictive maintenance capabilities and enable real-time monitoring of assets for service providers.
Q: What dynamics could affect IoT adoption?
A: Factors that could accelerate IoT adoption include the perceived value proposition, affordable technology, and improved networks. On the other hand, challenges such as change management, interoperability issues, and cybersecurity concerns could constrain adoption.
Conclusion
The Internet of Things has become a transformative force, connecting the digital and physical worlds in various settings and applications. From improving human health to optimizing production processes, IoT offers immense opportunities for innovation and efficiency. As organizations navigate the IoT landscape, addressing security, scaling efforts, and understanding the economic impact will be crucial for success in this rapidly evolving technological landscape.
This article was written by Virtual Tech Vision. For more insightful analysis and information on technology trends, visit Virtual Tech Vision.
