IoT Agenda

January 7, 2019  3:34 PM

Motion intelligence: Placing people at the heart of the mobility revolution

Dimitri Maex Profile: Dimitri Maex
Connected car, Connected Health, Internet of Things, iot, IoT analytics, IoT data, Mobility, motion data, motion intelligence, ride-sharing

Life is in constant motion. People move from place to place, from one moment to another, from one stage in their life to the next, changing personalities and needs along the way. When you can understand not just where people are going, but why and how — having high motion intelligence, if you will — you can unlock amazing new possibilities.

Motion data from smartphones has introduced a world of opportunity for companies to create one-on-one relationships with people that are truly personalized and always-on. Analysis of the physical movement of the mobile phone can help detect mobile events that can be translated into meaningful moments, reflecting real-life and real-time context and routines. And all of this can be done while safeguarding consumer privacy through combining first-party business models and advances in edge computing.

According to GSMA Intelligence, there will be over 25 billion connected devices by 2025. While IoT is rapidly becoming a mainstream technology in consumer markets, use cases for IoT are shifting from just connecting devices to addressing specific problems or needs with real solutions.

Let’s examine how enterprises across health, automotive and mobility are putting people at the center by translating motion data into actionable insights to help them better improve people’s lives.

By contextualizing data, healthcare companies are becoming more patient-centric

Wearables and connected health devices provide a treasure trove of data points for healthcare providers. Data such as number of steps taken, heart rate and calories burned from wearables, and nutrition intake, glucose levels or heart rate variability from connected devices can help healthcare providers derive better insights into patients’ health and lifestyles. If they also understand the context of their patients’ behavior, healthcare providers can develop highly personalized treatments for their patients. They can also learn when it’s best to engage individuals to steer them toward healthier outcomes. For example, Dutch medication adherence app MedApp is contextualizing smartphone sensor data to provide personalized smart alarms for medication intake. The app can detect if a consumer is stuck on the subway or driving home and adjust the medication alarm for when he is back home and able to take his medicine.

Another example of where healthcare providers are innovatively using smartphone sensor data to provide one-on-one, real-time patient care is in gait analysis. For patients who recently had back, knee or hip surgery, for example, through sensor data healthcare providers can monitor a patient’s movement post-surgery to see if he is getting back to a normal gait. Instead of taking patients through expensive and exhaustive outpatient care procedures, healthcare providers can inexpensively monitor a patient’s gait through the mobile phone, without the patient ever making a doctor’s appointment.

Car manufacturers are personalizing the in-car experience for drivers

For decades, car technology has traditionally focused on optimizing the vehicle’s internal functions, but attention is now turning to enhance the car’s ability to bring an in-car experience that is customized to fit the needs of drivers and passengers. By connecting smartphones to the car’s dashboard or infotainment system, and using behavioral data and real-time context awareness, car manufacturers can make the driver’s experience more personal, practical and enjoyable. For example, French car company Peugeot paired AI and smartphone sensor data when it built its Instinct concept vehicle. Peugeot then tailored presets and recommendations based on driver profiles and real-time context. With smartphone sensor data, car companies are creating personalized digital experiences during the car journey, as well as delivering relevant contextual assistance pre- and post-trip.

Enhanced driver coaching for ride-hailing companies

Some of the world’s largest ride-sharing platforms are using algorithms to score the behavior of their drivers based on the sensors in the drivers’ phones. By monitoring the movement of a driver’s mobile device, ride-hailing companies can determine how smoothly, anticipatively and legally their employees drive. Smartphone sensor data can also help them detect when their drivers handle their cellphones while they drive. These insights can better inform ride-hailing companies on how they need to coach their employees to become safer drivers.

Car insurance companies can also contextualize smartphone sensor data to get a more holistic profile of a driver’s behavior and essentially form a “driver DNA” for each of their customers. What are their customers doing while they drive? Are they using their cellphones while driving? Where are drivers coming from and where are they going? Do they spend too much time at work and not get enough sleep? Understanding the entire context of a driver is important for making more accurate predictions about risk profiles, and also allows insurers to coach their customers to become better drivers.

Today’s modern enterprises have no shortage of data to make conclusions about how people go throughout their daily lives, and mobile sensor data is increasingly becoming a more necessary component of this data mix. By contextualizing data from users’ smartphones, companies can get a more holistic view into how people move, which can arm them with the right systems to help make people’s lives easier. Be it through personalized health coaching, customized in-car experiences or driver coaching, sensor data from smartphones is at the heart of bringing more seamless lifestyles to users.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 7, 2019  1:40 PM

IoT and streaming data are revitalizing the brick-and-mortar shopping experience

Brent Biddulph Profile: Brent Biddulph
brick and mortar, Customer engagement, customer experience, CX, Enterprise IoT, Internet of Things, iot, IoT analytics, IoT data, IoT devices, IoT in retail, IoT products, IoT services, retail IoT, retailers, streaming analytics, streaming data

The cat, er, robot, is finally out of the bag: In-store retail is not only not dead, it’s in a position to revolutionize shopping in much the same way e-commerce did two decades ago. While e-commerce is growing rapidly, 91% of U.S. retail sales still occurred in-store in 2017 according to Statista, with 86% predicted by 2021.

The path to the “store of the future” — which we’ve been envisioning for years — is well underway with industry leaders. At the very least, predictions of an all-online shopping world should be put to rest for a long, long time.

And everybody will win: consumers, employees, consumer goods partners and the retailers themselves.

We can thank the burgeoning IoT industry; specifically, sensors, beacons, robotics and video — all powered by streaming data analytics. Exemplar retailers have taken the lead in this and are actively testing once “futuristic” applications to further streamline operations and deliver better customer experiences today.

Walmart recently reported that it is actively recruiting top-level computer scientists to develop its initiatives, which include the recent news that it will deploy hundreds of autonomous robots to clean the floors at some of its stores in January 2019. The world’s largest retailer is also testing automated (robotic) scanning of shelves to improve in-store merchandising execution and out-of-stock response.

Other soon-to-be-unveiled IoT-based advancements include using computer vision and data analytics within shopping areas to improve inventory tracking, implement dynamic pricing and better understand consumer behavior.

Today, the goals of IoT and streaming data analytic initiatives can generally be divided into three categories:

  1. Driving greater operational excellence;
  2. Delivering personalized customer engagement; and
  3. Offering relevant and localized products and services.

Driving operational excellence through IoT and streaming analytics

Consider one use case already occurring: robots armed with streaming data analytic capabilities that can scan shelves to identify out-of-stock items, shelf schematic compliance and display execution in real time. In fact, Walmart recently announced it has experienced as much as a 50% improvement in out-of-stock labor costs after deploying them. Kroger has also announced experimentation with this technology for similar purposes.

One of the biggest revenue opportunities for bricks and mortar remains mitigation of lost sales through quick replenishment of out of stocks. Keep in mind that out-of-stock items are often not in a distant warehouse, but somewhere else in the store. Also keep in mind that stores will not only frustrate shoppers, miss out on the immediate sale and perhaps leave a negative impression, but also risk losing longer-term business to competitors because of out of stocks. In fact, a recent IHL survey suggested that over 24% of Amazon’s retail revenue comes from consumers who first tried to buy the product at their local stores.

Computer vision insights (using streaming video) are also beneficial for the purposes of informing corporate merchandising teams of in-store compliance (pricing, promotions and placement) in real time, including conditions that may be impacting seasonal sell-through and markdowns. Incremental benefits include data monetization (and disruption of syndicated data providers) by sharing these insights with their supplier partners.

Additionally, connected data and devices within the four walls of brick-and-mortar stores are creating greater operational and cost efficiencies. Just think about refrigeration and freezer units in thousands of grocery stores. There’s not just one big refrigerator; there are several large units in each store (across thousands of locations) to store products such as produce, dairy, deli and meat that may need to be kept at different temperatures. Temperature fluctuations can significantly impact product shelf life and go completely unnoticed by in-store personnel.

IoT and streaming analytics can alert stores to take action in order to ensure freshness and reduce waste. These new technologies can automatically push notifications to in-store associates to inform them that, for example, they lost a half-day’s life on specific dairy products overnight, based upon predetermined business rules contemplating the temperature fluctuation impact on product lifecycles. This advisory can simply instruct the store associate to reduce the price for the day or take other actions to protect freshness and quality.

Delivering personalized customer engagement and improved shopper experiences

IoT and streaming analytics hold great promise to assist merchandising and store operations teams with new insights. These include better understanding of traffic patterns, paths and hot spots within a store. It can look at dwell times: How long are customers spending in the women’s shoes department? How much time are they looking at a display? What is the associated conversion rate after checkout? How long are they waiting to check out?

These technologies and their uses will supply new metrics, insights and actions that retailers have never been able to measure or respond to at this granularity. This is especially meaningful considering tight labor constraints and a desperate need for “actionable intelligence” versus more dashboards or reports.

Emerging technologies such as computer vision (using existing in-store video cameras) are even providing new capabilities to move from prediction to intervention to help mitigate fraud and shrink — a multibillion dollar issue in retail yet today. Whether at the back door, self-checkout lanes, kiosks or in-aisle, IoT and streaming analytics hold much promise to help curtail this bottom-line challenge for all retailers.

Finally, proximity marketing and personalized engagement using mobile applications, Wi-Fi, beacons and RFID technology in-store continue to hold much promise, but remain experimental for most retailers still looking to find the right balance between privacy concerns and the type of customer insights that can be gleaned from in-store technology deployment. North American retailers such as Macy’s, McDonald’s, Kroger and Walmart have been experimenting with this, as is Carrefour, one of the world’s largest hypermarket chains in Europe.

Providing relevant and localized products and services

While the initial benefits of IoT and streaming analytics may have been focused primarily on customer engagement and customer experiential use cases, it seems the use cases for in-store merchandising are also demonstrating solid early results.

Dynamic pricing is yet another nascent e-commerce analytic capability that can be carried over to brick-and-mortar stores. While electronic shelf labels (ESLs) have been around for a couple of decades, the high cost to implement digital shelf tags has limited widespread adoption. However, the transparency of competitive pricing and the growing use of new analytic capabilities to instantly change prices on hundreds (or thousands) of items on e-commerce platforms also provides an opportunity for retailers to push this capability to individual stores using ESLs.

Kroger, America’s largest grocery chain, has just begun to roll out Kroger Edge (Enhanced Display for Grocery Environment), which connects IoT sensors to the retailer’s cloud-based storage, beams real-time data from every aisle and digitally displays pricing, nutritional information, video ads and coupons. This allows corporate and store managers to instantly change prices and initiate flash sales events on individual items. It also saves labor costs, because employees on the floor don’t have to change prices on hundreds of item tags by hand.

Light — and profit — at the end of the tunnel

If it works as designed, Kroger Edge will also be environmentally friendly and cost-efficient. That’s because Edge uses low-voltage LED lighting and will eventually run on renewable energy sources. The need for extremely bright and costly fluorescent or incandescent lighting is basically for customers to read paper tags, but with next-generation ESLs, stores can decrease the brightness of the bulbs.

Suffice to say (and to borrow from Mark Twain), reports of the death of brick-and-mortar shopping was an exaggeration. More than a few “experts” have predicted that Alibaba and Amazon would end the in-store retail experience for good. And while it’s true that e-commerce has had a deleterious effect on bricks and mortar, the retail industry is nothing if not resilient and competitive. Retail executives will always search for innovative ways to increase revenue — even if it means reimagining the in-store shopping experience. IoT and streaming analytics are driving that new imagination.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 7, 2019  11:46 AM

IoT markets are growing at 20%, despite tempered enthusiasm

Ann Bosche Profile: Ann Bosche
Cloud service providers, Consumer IoT, CSP, Enterprise IoT, Industrial IoT, Internet of Things, iot, IoT market, IoT strategy

Enterprise customers are still bullish on the internet of things, but their enthusiasm has been tempered by the realization that complete systems may take longer to implement and yield a return than they had originally expected. Bain & Company’s research found that, despite these readjusted expectations, the market for IoT hardware, software, systems integration, and data and telecom services could grow to $520 billion in 2021, more than double the $235 billion spent in 2017 (see Figure 1).

Since our last extensive survey on the internet of things and analytics two years ago, customers believe that vendors have made little progress on lowering the most significant barriers to IoT adoption –including security, ease of integration with existing IT and operational technology systems, and uncertain returns on investment. These customers have extended their expectations about when those use cases will reach scale. On average, they are planning less extensive IoT implementations by 2020 than they were just a couple of years ago (see Figure 2).

Figure 1

In spite of these concerns, enterprise and industrial customers still see success within their reach. They are still running more proofs of concept than they were two years ago, and more customers are considering trying out new use cases — 60% in 2018 compared with fewer than 40% in 2016.

Over the past few years, cloud service providers (CSPs) have emerged as more prominent and influential vendors in the space, particularly AWS and Microsoft Azure. CSPs are lowering barriers to IoT adoption, allowing for simpler implementations and making it easier to try out new use cases and scale up quickly. In our survey, customers told us that CSPs and analytics and infrastructure software vendors have the most influence over the IoT systems they are buying. Many customers see CSPs as leaders in providing easy access to IoT tools that collect, aggregate, curate and analyze data.

CSPs are using their deep expertise in analytics to expand across the IoT market and to strengthen their position in analytics and cloud services for enterprise and industrial customers. But their broad horizontal services provide little optimization for industry-specific applications, leaving a significant opportunity for vertical offerings from systems integrators, enterprise app developers, device makers and telecommunications companies.

This pent-up demand represents a huge opportunity for technology providers that can meet customer needs. Meeting those needs will require a solid understanding of customers’ concerns. Our survey found that vendors are aligned with customers on some barriers (security, returns on investment), but less so on others (integration, interoperability and data portability).

Based on the experience of previous technology cycles, the key to addressing these concerns lies in focusing on fewer industries in order to learn what customers really want and need. Gaining deep experience in a few use cases helps vendors anticipate customer needs in those industries and allows them to create a repeatable playbook and end-to-end systems.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 4, 2019  1:12 PM

The manifold dangers of IoT devices and their foreign platforms

Scott Ford Profile: Scott Ford
Consumer IoT, Data privacy, Enterprise IoT, Internet of Things, iot, IoT cybersecurity, IoT devices, IoT platforms, iot privacy, iot security

The number of consumer IoT devices entering the U.S. market is staggering. Gartner said a typical family home could contain more than 500 smart devices by 2022. These devices represent internet endpoints that will penetrate every household before we know it, and those endpoints will rapidly multiply from there. This trend is fueled by insatiable user demand and substantially enabled by retail distributors that see the windfall economic benefit.

The threat associated with a potential enemy-state’s role in consumer IoT is massive, but the U.S. continues to enable it. Before our very eyes, China is gaining direct access and insight (literally) into our homes through digital access from the connected devices we put in our homes, as researchers from Dark Cubed recently discovered.

An everyday cybersecurity scenario

Let’s imagine a simple scenario. You walk in to a major retailer and see an LED lightbulb for less than $10 that you can control from an app. You think, “Great! I can program this bulb to come on automatically when the sun goes down and turn it off from my phone when I go to bed. $10? It’s a no-brainer.”

You go home, open the box and are instructed to download an app to your phone. You do so, and by selecting “download,” you don’t know it, but you give this app legal permission to access many things on your phone and to do things you’ll never understand.

Once the app opens, you set up an account. You wonder for a second why the lightbulb app is asking for your location and access to your contacts, but you allow it. To be safe, you set your typical password but change one number.

The app tells you to screw the bulb into the lamp and asks for your Wi-Fi password and, like magic, the app is connected to the lightbulb, which is connected to your Wi-Fi router that is likely several years old. You set the schedule for the light and think, “How does it know when the sun goes down at my house? Oh, that’s why it needed my location, makes sense.”

A few days in, you think, “This cheap bulb is awesome.” You get three more. You see a Wi-Fi camera at the store and realize you can add this to your app. You can check from work to see if the kids are doing their homework. Best of all, it’s less than $25. No-brainer!

You receive a notification that you can record video and store it to watch it later. You can get a notification when the front door opens and a 20-second video is captured and sent to your phone. For $5 a month, you can see when your kids get home. So, you enter your credit card number into the app.

The most prominent foreign country that is home to the companies that control the communications from these devices and the apps that control them is China. In the scenario above, this company and its governing nation now have the access and the means to create and maintain an up-to-date profile of this home and its occupants.

Perhaps more frightening is the fact that this company can easily access these devices to find holes in your Wi-Fi network to access computers, hard drives and other devices or data repositories. And remember, you supplied this company with your log-in information; hopefully those credentials are substantially different than your online banking credentials. Password-guessing attacks thrive on clues contained in alternative passwords. This is a reasonably common situation in millions of households right now, and growing rapidly due to the continued distribution of these devices by trusted U.S. retailers.

How your home is spying on you

A significant number of these devices, virally spreading to and inside our homes, are in fact controlled by Chinese communications platforms. Consumer demand for connected things in the U.S. has caused device manufacturers to rapidly produce connected devices to meet this demand, but they have to use communications platforms to connect and allow these devices to converse with us over the internet. This has created a challenge for the manufacturers to find platforms that can enable the communications and supply the software that consumers need to control their devices.

A huge new industry has been created in China to solve this challenge, creating a grave problem for the U.S. while enabling a massive opportunity for the Chinese government. What could they do with direct access to and control of hundreds of millions of connected devices in millions of U.S. households? Every single day, data goes from your home to China or to servers in the U.S. owned and accessed by China.

This data becomes more informative every day, and new data is created when new features are added or new devices installed. China leads the world in analytical technologies like machine learning, AI, augmented reality and computer vision. Not only will it have the raw data to know everything about you — your behavior, where you are, where you go, who you know — with its data analysis prowess, it can begin to anticipate your future behavior and locations. Could there be a greater cyberthreat?

Three steps to mitigate the damage

If you didn’t know, China censors everything internet-related domestically — there is no chance that the U.S. or any other state could accumulate this level of insight on China’s citizens. Shrewdly, China clearly understands the impact of the cyberthreat and uses its censorship policies to remove the risks of foreign access. It also realizes that there is no regulation, enforcement or even a level of awareness that might cause friction to its effort to access our population. It sees the demand of these devices, it is eating the cost of hosting and software to make these devices work, and it is catering to the wishes of the U.S. retail community by keeping the pricing of these devices very low. It’s a perfect storm.

The good news is that it is not too late. Massive damage has been done and much cannot be undone, but we can reduce the damage done and prevent further impact. Here’s how:

  1. Retailers must stop selling connected devices whose software and communications are managed by off-shore communications platforms. These platforms will do everything to obscure their role and function to satisfy non-technical decision-makers, so retailers must align with U.S.-owned and -operated platform providers to protect users.
  2. Many devices can and should be sourced from China, but the communications function should be American. And manufacturers need to ensure that the devices themselves have an adequate level of cybersecurity protections and are easily patchable.
  3. Stop the unnatural race to the bottom on device pricing. IoT is made of living objects that require support over time. Like a car that needs gas and maintenance, these devices and their user software must be managed, updated, maintained and hosted for the life of the device. The $10 connected LED lightbulb requires support for the life of the bulb — perhaps 20 years. What happens when it runs out of gas in a couple of years?

Focus on the platform and take a stand for data privacy

Much of the narrative on how to protect ourselves from IoT security risks has focused on the connected device. Sure, without proper engineering in the device itself, it can be vulnerable to a cybersecurity breach. California has taken a bold step in focusing on device protections. The bigger unaddressed problem is the platform governing these data communications. Think of it as similar to your wireless carrier. You have a smartphone likely built somewhere in Asia, but you use a regulated and trusted U.S.-based wireless communications carrier to manage your voice and data activities. The greater problem is that we are allowing unregulated, unknown, foreign entities into our homes with the permission to do and take what they want.

As the number of IoT devices skyrockets, so does the risk to consumer, corporate and nation-state information if a foreign nation is able to use such unprecedented access to individuals’ data. Indeed, industry observers like Om Malik have called for a constitutional amendment addressing digital privacy to help protect against these trends.

Consumers can’t tell the difference between a secure and unsafe IoT device — and they shouldn’t have to. Retailers must take up a bold position along this cybersecurity and privacy frontline to protect their customers from these real risks today.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 3, 2019  5:44 PM

Bridge the gap between security and IT to support an overall IoT strategy

Brandon Reich Profile: Brandon Reich
connected camera, digital video, Internet of Things, iot, IoT compliance, IoT devices, iot security, IoT strategy, Shodan, Video surveillance

Networked surveillance cameras fit the definition of IoT devices. They’re an evolution of formerly closed-circuit analog products that have been upgraded with advanced computing and networking capabilities, so they may be connected over a standard LAN/WAN or even via the cloud. So why don’t the security teams that use them or the IT departments that eventually have to support the data they create see them as IoT deployments? And how can we bridge this gap between the security and IT teams?

Lack of coordination leads to unsupported devices

Part of the problem may be something as simple as shifting definitions: The security professionals who use networked surveillance cameras don’t recognize them as IoT devices because they haven’t traditionally been thought of that way. But advancements in technology, new use cases and declining prices have caused an explosion in demand for these devices. This is also what’s causing video security to move into the data center and put new pressures on IT.

In the end, it comes down to competing priorities — security’s focus on risk management and IT’s focus on managing complexity.

Without some level of coordination, you get scenarios like this: Security professionals purchase a large number of networked security cameras, alarm sensors and card readers. This equipment comes with a full rack of servers designed to serve as compute and storage devices, and it’s often bought and installed without consulting IT staff.

There are only so many IT staff members in this organization, and they already spend most of their time maintaining what they consider to be core systems. They don’t have time to maintain these new systems, and they don’t think it’s their responsibility anyway. As a result, these cameras turn into a security hole — a huge number of them sit unprotected on the internet, in plain view of anyone who knows how to use Shodan.

Shodan is a search engine for unprotected IoT devices. Assuming that you know an organization’s IP address, you can plug it into Shodan and see if there are any undefended IoT devices attached to it. If those devices are cameras, you can actually tap into the camera feed and see what it’s seeing. An attacker can even see the version number of the camera’s firmware. If it hasn’t been patched, an attacker can convert it into part of a botnet such as Mirai, which brought down the internet in much of the United States back in 2016.

When IT admins and security professionals don’t collaborate, in other words, they can end up in a nightmare where strangers have a view onto their premises and can use their own devices for use in criminal acts. Not good. How can we avoid this?

Turning vulnerabilities into an IoT roadmap

Let’s take another approach to this problem. Instead of working separately, security professionals and IT administrators would work collaboratively to support an overall IoT strategy, one that would eventually encompass more than just video surveillance. How would that work?

It starts with security and compliance — if an organization is subject to regulations such as ITAR or FSMA, they are required to keep records of everyone entering or leaving their facility. Deploying digital video surveillance and creating an archive of its data output is a central pillar of these requirements.

The next step is technically supporting the digital video implementation. This won’t be easy — digital video surveillance creates a large amount of unstructured data. Administrators need to work with security to categorize this data, store it — no easy feat, as this could mean terabytes of video per day — and then be able to retrieve it at will.

Once this data is under some kind of structure, however, administrators can use it for things other than security. Digital video is a huge storehouse of data about the organization — for some organizations, it may be the largest data storage application there is. Being able to use this data for purposes other than security — to increase productivity, optimize customer conversion rates and mitigate unplanned downtime — is a huge win. Some potential use-cases include:

  • Allowing retailers to monitor their foot traffic and use this data to reorient their shelves and displays in order to maximize engagement;
  • Providing targeted advertisements to consumers based on their location within a store, mall or stadium;
  • Pinpointing the source of equipment failures within industrial facilities; or
  • Enabling smart cities to improve safety in areas like pedestrian crosswalks.

As administrators push a digital surveillance strategy to maturity, they can begin piloting other IoT technologies using the same model. Eventually, IT can use the digital video strategy to build a highly instrumented organization that sees the IoT as a central underpinning, not an afterthought.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 3, 2019  5:42 PM

Making industrial IoT smarter with a platform strategy

Emanuel Bertolin Profile: Emanuel Bertolin
Digital economy, IIoT, IIoT platform, Industrial IoT, Internet of Things, iot, IoT devices, IoT monetization, IoT platform, smart manufacturing

As an industry, manufacturing is often seen as risk averse and slow to change. When it comes to IoT, however, manufacturers are anything but. According to IDC, the manufacturing sector spends more than twice as much — $178 billion — on IoT than the next closest industry, transportation. Not only that, but 84% of manufacturers report that they already have digital factory initiatives.

Enthusiasm and optimism for IoT are high, but manufacturers face unprecedented complexity in implementing IoT strategies and systems. They not only have to deploy connected devices, but also create and manage value-added software for those devices.

Increasingly, companies in the manufacturing sector are turning to platforms to overcome these challenges. With a platform, companies can centralize everything they need to be successful: device management, software, developer onboarding, ecosystem commerce and more.

Companies can do all of these things with a platform, but not all will. To be successful, manufacturers must be sure that their IoT platform strategy includes these three essential elements:

Commerce capabilities
Up until recently, manufacturers were used to making one-time sales, usually physical products and perpetual licensing for the software that might go along with it. In the world of IoT, manufacturers must think beyond traditional ways of doing business. A platform strategy allows manufacturing companies to monetize the customer relationship long after the initial sale, but to do this they need powerful commerce functionalities, such as the ability to charge customers for subscriptions, single downloads and more, as well as the flexibility to change pricing as needed.

Ecosystem support
Ecosystems of software around core products are increasingly seen as vital to success, since they can provide a steady stream of new, innovative digital offerings to meet customer demand. For this reason, platforms that offer a robust developer portal are well-positioned to succeed. A portal should make developer onboarding as easy as possible, with streamlined integration and testing environments, as well as a CMS-like interface for uploading marketing content, such as product descriptions, data sheets, videos and more.

Flexibility to meet changing demands
In the digital economy, the speed of innovation and change is faster than ever before, which means that a platform strategy — and its underlying technology — must be flexible. A system that is API-addressable, modular and able to bridge the gap between new and legacy systems is critical. As Fujitsu explained in a recent report on digital transformation, “Businesses need to fail fast, fail forwards and make it cost efficient to do so. This means creating agile digital strategies and indeed business plans that can be easily and quickly adapted if a project is not progressing as expected.”

IoT is a multibillion-dollar industry that is changing the face of the entire manufacturing industry. To succeed, manufacturers must embrace this new digital reality and provide the connected devices, software, management tools and support that customers demand. A platform strategy is one of the most cost-effective ways to get there, and to get there quickly.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 3, 2019  5:35 PM

The future of IoT: Where do we go in 2019?

Guy Courtin Profile: Guy Courtin
connected healthcare, Consumer IoT, healthcare IoT, Internet of Things, iot, IoT connectivity, IoT devices, iot security, IoT wireless

It seems as though 2018 is ending as soon as it began. But, upon reflection on the past 12 months, the year was quite eventful. We have seen the accelerated implementation of new technologies, including machine learning, AI and, of course, the internet of things. From consumers’ mass adoption of voice assistants and connected home devices to increased use of robotics and advanced sensors in the supply chain, it seems as though we are on the verge of a dramatic shift in the way we interact with technology.

As we look forward to 2019, it is once again time to look into the crystal ball and determine what the near future brings for IoT.

Connectivity will continue to march along

IDC estimated that IoT spending will experience a compound annual growth rate of 13.6% over the 2017-2022 time frame, resulting in a $1.2 trillion total spend in 2022. What does this mean? An increased amount of connectivity of digital signals will feed into all aspects of our businesses and supply chains. Look for our homes to continue to become more connected. We already have seen a proliferation of home assistants such as Apple’s HomePod, Google Home and Amazon Echo, to name a few. Not to be outdone, Facebook is pushing its Portal device to try and get some of its dedicated, connected hardware into our homes. Home connectivity is not limited to these devices; some companies are aiming to bring greater connectivity to more traditional home durables, as Samsung is doing with refrigerators. This is also prevalent in the connected car arena. As Apple and Android continue to jockey to make their connected hubs the standard entertainment center in vehicles, one thing is clear: No matter where we are, or what we are doing, we will never be not connected again.

IoT will get closer to our heart

IoT will not look to woo our love, but rather get closer to our physical being — literally touching our hearts. Just look at the latest version of Apple products, especially the new watches. These devices integrate technology that can monitor our health. 2019 will see a continued rise of consumer product companies seeking to bring greater connectivity to our physical being. Whether it is through smarter watches, connected fabrics in our clothing or digital pills, companies will seek to use the ability to connect what is happening with our bodies 24/7 into a market for well-being and health, expedited by the FDA’s approval of the first digital pill last year. Companies from Merck and Johnson & Johnson to Apple and Google will all be embarking on greater projects to bring greater connectivity closer to, and inside of, our bodies.

Major data breaches will stoke fears of a more connected world

We all have lived through major data breaches: Yahoo, Sony, Target, Equifax and most recently the Marriott Hotel chain. Some of these hacks, such as Target, can be traced to IoT as the hackers, in this case, accessed the data via the connected HVAC system. However, the public’s outrage did not focus on the “how,” but rather the “what.” As consumers become savvier about their connected world, look for 2019 to mark a pivot where a consumer’s data breach will be traced to all those connected devices and systems that permeate our world. The general media and consumers will realize how much of our world is already connected, likely inciting a knee-jerk reaction of how this connectivity makes us more vulnerable to hacks. This will prompt governments and the public to call for a greater emphasis on how we can harden these hacker targets.

Awareness of greater connectivity will also drive consumer expectations

As consumers, we are all accustomed to tracking our packages from point of origin to delivery. But that is simply the tip of the expectation iceberg. As consumers become more aware of the greater connectivity we have, with IoT they will start asking and demanding increased visibility. Can we see where that product came from? How was it manufactured? What journey did it take to get to me? In addition, an increased sensitivity to such factors as the items’ carbon footprint will incite questions about supply chains, asking for more information and increasing visibility via greater connectivity services. Brands and supply chains can no longer hide and must prioritize having the capability to provide this clarity.

We live in a digital world — that is no news bulletin. However, look for 2019 to be a pivotal year as consumers become savvier to what that connectivity actually means. This will result in increased pressure on the brands and global supply chains to use this digital connectivity to provide greater insights and understanding of products.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 2, 2019  5:22 PM

Manufacturing firms can combat the skills shortage with AR and IoT

David Gustovich Profile: David Gustovich
AR, AR hardware, AR software, augmented reality, Internet of Things, iot, IoT applications, IoT software, skills gap, skills shortage, smart manufacturing, wearable, Wearable devices, Wearables

By all indicators, the talent shortage in the manufacturing space is at critical levels. Job openings continue to grow at double-digit rates, and it’s expected that nearly 2.6 million baby boomers will retire over the next 10 years, according to the fourth annual skills survey by Deloitte and The Manufacturing Institute.

In this landscape, finding the right talent is the number one competitive driver for manufacturing companies, according to the manufacturing executives surveyed for the report. Executives said for those with digital talent, skilled production and operational manager experience, skills shortages were “very high.” What’s more, the Deloitte report said that this difficulty will triple over the next three years.

But while the stakes and challenges are great, manufacturing is one of the industries leading the charge in adopting cutting-edge technologies to meet them.

It’s in the manufacturing space, in fact, that we are witnessing some of the most exciting and mature applications of IoT technologies, where phrases like edge computing, digital twins and augmented reality (AR) are out of the vaporware stage and into live deployments where they are delivering value. They’re being applied to everything from increasing overall equipment effectiveness to enhancing the roles of the people who work on the shop floor.

And one of the most exciting applications of these technologies is how manufacturing firms are combining them to deal with this skills shortage. They are using these technologies to evolve training strategies to fit both the needs of current workers and the way the next generation of workers will access relevant education and training.

Manufacturing firms are already using IoT and AR hardware to allow experienced manufacturing professionals to essentially document their processes as they conduct them, and new staff to consume that information through augmented reality. In this scenario, an experienced worker clad with an intelligent wearable collects the information about the process as she goes about it, without disruption to her daily routine. That rich knowledge is then visualized in an AR headset for the new worker, as he is led step by step through the process, with the instructions overlaid on the machine itself to guide work or maintenance.

The value of this combination of IoT and AR extends beyond strictly completing the process correctly to include all of the many factors that require years of experience to know how to complete it safely. IoT-enabled equipment can relay information on things like temperature through the AR experience, showing when a part is too hot to touch, or lending the worker crucial insight and indicators on failure points to provide predictive maintenance. AR headsets can even overlay caution tape around equipment, showing the worker areas in which it is safe to step and complete the process, and those that are not.

Thus, training and competency are imparted by experienced workers in a way that doesn’t take time away from their crucial work and, at the same time, is delivered in a relevant manner for the next generation of those who want to both learn and work. This builds competency faster, increases efficiency and further positions the plant to use this IoT and AR base for additional innovation.

This foundation lends itself to interesting integrations with data in the ERP systems. It enables the power of integrating bill of materials information in a way that is easily consumable in the augmented reality experience, or integrating information on inventory to show a worker that a certain part is not available. As a result, manufacturing facilities will drive even more efficiencies into their supply chain processes by optimizing the assets and the processes themselves.

In all, it’s an exciting time to be in the manufacturing space, where the challenges of growth and skills development are driving cutting-edge deployments of these cutting-edge technologies.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

January 2, 2019  5:22 PM

Editor’s picks: Thought-provoking IoT blogs from 2018

Sharon Shea Sharon Shea Profile: Sharon Shea
5G, ai, Blockchain, digital enterprise, Digital transformation, GDPR, Internet of Things, iot, IoT monetization, iot security, IoT strategy, revenue models, SaaS, TEE, trusted execution environment

As 2018 draws to a close after another year of IoT adoption, deployment and management becomes history, it’s time to reflect on the last 12 months and how far the IoT market, which is still in its infancy, has come.

In analyzing some of the most thought-provoking posts from our IoT Agenda guest contributor network in 2018, it’s interesting to see how the IoT conversation is swiftly transitioning from why organizations should adopt IoT to how to build a successful IoT strategy, how to tackle one of IoT’s biggest challenges (security) and what other technologies can be used in conjunction with IoT to boost its effects and accomplishments.

Without further ado, here is what you were most interested in learning about IoT in 2018 and how the views of our guest contributors are creating the building blocks of IoT in 2019 and beyond.

IoT strategy: Building blocks to success

Imagine walking into a store and being offered a custom-tailored overcoat that will be ready in four weeks for $1,000, or a one-size-fits-all hoody that you can walk out of the store with at that moment for $10. Now translate that to IoT. You can settle for the easy, readily available off-the-shelf IoT platform that may or may not meet your enterprise’s needs, or you can wait a few months (or longer) and pay a higher price to get the perfect platform. This was the scenario Deloitte Digital’s Robert Schmid presented in Turnkey IoT: Balancing customizability and ease of implementation — but, he said, it fortunately doesn’t have to be this way.

An IDC survey reported that while 38% of IoT producers currently make revenue from hardware, that number will slip to 33% over the next two years, while in contrast, the number of producers making money from IoT services will increase from 32% to 38% in the same time period. As IoT revenue streams transition from static hardware to as-a-service offerings, it’s time to rethink monetization strategies. Flexera’s Eric Free discusses this — and the challenges of using SaaS to monetize IoT — in his post, Subscription and pay-per-use IoT revenue models.

It’s no secret IoT devices create data — and a lot of it. For that data to be useful enough to improve business processes, it’s critical that it can be shared across the entire business and not get stuck in technological or organizational siloes. Tata Consultancy Services’ Regu Ayyaswamy outlined the importance of a connected digital enterprise to put IoT data to work and gave real-world examples of CDEs in action, as well as tips to compete in the business 4.0 world, in his post, Get more answers from your IoT data in a connected digital enterprise.

IoT security

The General Data Protection Regulation landed on May 25 — the EU law on data protection and privacy that affects organizations worldwide. Companies interacting with users and businesses in the EU must adhere to this regulation that mandates how companies collect, process and store the personal data of their customers. In What does the GDPR mean for IoT?, Openwave’s Aman Brar took a deep dive into how the GDPR would affect the internet of things and explained why the IoT community should address privacy and security from the get-go.

2018 was also the year of discussing which specific technologies can help enterprises tackle the ever-present IoT security issue. In Is blockchain the answer to IoT security?, Portnox’s Ofer Amitai outlined the challenges of securing device-to-device communication and providing authorization for IoT devices, and explored why blockchain is one of the most promising technologies to provide a tamper-evident record of everything that happens in an IoT environment.

In Trusted execution environments: What, how and why?, Trustonic’s Richard Hayton wrote that TEE is one technology that can help manufacturers, service providers and consumers alike ensure trusted identification to the ever-growing proliferation of IoT devices. Read his post to find out what trusted execution environments are, how they work and why TEEs can provide the trust and scalability IoT systems require.

IoT’s plus one

Just as IoT isn’t one single technology, readers this year learned why it was important to combine it with other technologies to be successful. Progress’ Mark Troester’s Key considerations of AI, IoT and digital transformation took a look at the convergence of IoT with artificial intelligence and digital transformation and why it will be critical to the future of your business, if it isn’t already. Read on to learn why, if applied correctly, AI and IoT can drive the digital transformation movement.

AI and IoT was a popular duo this year. Aricent’s Ben Pietrabella discusses the promise of 5G and what it holds for IoT, but said it will remain just that, a promise, without all-in commitment from smart mobile operators to use AI in conjunction with 5G. Check out his post, Why smart operators are turning to AI to prepare for 5G, to learn the role AI has to play in 5G and IoT, and why the success of a 5G network depends on the operators’ ability to harness AI in an IoT network.

Another hot topic over the past year was digital twins. It wasn’t that long ago that digital twin use was an out-of-reach goal, said Wipro Limited’s K.R. Sanjiv in his post, Digital twins: The final frontier of VR? But thanks to IoT, he wrote, augmenting the physical with virtual is rapidly becoming a reality. Read on to learn why digital twins are only going to grow in both prominence and power, and get help building a new virtual ecosystem for your enterprise.

January 2, 2019  5:20 PM

What to expect from smart cities in 2019

Matt Caywood Matt Caywood Profile: Matt Caywood
IoT applications, IoT apps, location services, micromobility, smart apps, Smart Building, smart buildings, Smart cities, smart city, Smart transit

As 2018 comes to a close, there are going to be plenty of lists rounding up the trends from the past year. Autonomous vehicles are obvious candidates, but after the non-story of Waymo One’s launch, I expect to be nonplussed in 2019 as well. Here are some big themes we expect will really come to the forefront this year.

Micromobility platforms

The past year was huge for micromobility, a term which barely existed in any significant way before now. Dockless bikes and then electric scooters rained down upon the streets of cities everywhere around the world, presenting both opportunities and challenges. The biggest challenge for cities was how to regulate these new mini-vehicles, which can be parked almost anywhere. Some cities, like Washington DC, established quotas for each company to control the number of vehicles on the road.

In 2019, we’re going to see cities start using open and proprietary data for performance monitoring and to implement performance-based quotas. The number of scooters allocated could be based on how often each is used, how many car trips these electric vehicles are taking off the road or other goals such as equity.

We’re also going to see the continued development of mobility platforms integrating multiple types of transportation — and more experimentation with pricing mobility “as a service,” like how we pay for mobile plans or Netflix. In 2018, Uber and Lyft began piloting new modes (including micromobility and transit) in some of their U.S. markets, but this will expand nationally and globally in 2019.

As mobility platforms expand and adopt service pricing, these are two key steps toward universal basic mobility, the point at which every person has equal access to getting around affordably with ease.

Precise location services

We’ve seen plenty of location-based services already, but 2019 will take them to a new level of precision. If you’ve been in an airport lately, you may have seen a great example of this with table-delivery technology. In Washington’s Reagan National Airport, travelers in Terminal A can sit down, order food from a kiosk and have it delivered to their exact seat.

The way restaurants, retailers and the cities that house them approach pickup and delivery will change dramatically in the coming year, whether it’s brick-and-mortar retail deploying proximity systems such as Radius Networks’ FlyBuy or Amazon delivering orders directly to your car with Amazon Key. Taking this a step further, restaurants will be able to deliver food directly to a customer’s location using only mobile location services — so you can even take a scooter to instantly grab your tacos.

Commercial buildings get smart

The smart building trend has been growing for a while, and the number of building-specific smart apps has grown along with it. This year, we’ll hit a tipping point where it will be more unusual for a major urban commercial office or apartment building to not have an app.

From controlling the temperature of the exact space around your desk at work to making sure your apartment door is locked even after you’ve left the house, apps have been making a splash. Some of these apps also include transportation information to increase the ease of getting around with so many micromobility options available. For property managers and owners, the advantage is clear — your location and the amenities associated with it are as likely to be digital as physical. For renters and tenants, the plus side is having the same level of comfort and productivity at your office that you do at your home.

All of these trends have one thing in common: using smart city technology to increase efficiency and convenience for the end user. A city is only as smart as its citizens, and 2019 will be all about using information to make individuals as smart (and happy) as possible.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

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