Lecture L23 INTERNET OF THINGS

“Some have suggested that the internet of things “changes everything,” but that is a dangerous

oversimplification.”

- Michael E. Porter & James E. Heppelmann

The next revolution has started

Everyday object get sensors and software and connect to the internet

The Third Wave of IT

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

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

Adjacent Possible

The Impact of the Smartphone

Smartphone revolution starts 2007

Contains multiple of sensors

Barometer to sense air pressure and relative elevationAccelerometer to measure distance by walking or runningGyroscope to measure orientation

Information spillover

Processors and sensors

Processors and sensors are now widely available and cheap

Examples Raspberry pi computer, Arduino

By 2020 a cumulative 100 billion processorswill have been shipped, each capable of processing information and communicating

(Source: Ericsson)

Things get connected

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

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

Product

Things can be anything

Source: HBR

1. Product

Source: HBR

1. Product

2. Smart product

ProcessorsSensorsSoftware

Source: HBR

1. Product

2. Smart product

ProcessorsSensorsSoftware

3. Smart connected product

ProcessorsSensorsSoftware

Source: HBR

1. Product

2. Smart product

ProcessorsSensorsSoftware

3. Smart connected product

ProcessorsSensorsSoftware

Source: HBR

Farmequipment

system

Planters

Tillers

Trackors

Combineharvesters

4. Ecosystem

Source: HBR

System of systems

Products become part of large ecosystems

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

(Source: Cisco)

The New Technology Stack

Smart, connected products require companies to build and support an entirely new technology infrastructure

Source: HBR

What Can Smart, Connected Products Do?

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

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

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

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: HBRExample: iRobot’s Roomba vacuum cleaner

Examples

Nike + Fuelband

activity monitor

Jawbone UPactivity

and sleep monitor

LockitronLock

system

Phillips HueLightingSystem

NESTThermostat

iGrillGrilling

Thermometer

SONOSSound

system

SamsungSmart

washer

BabolatTennisracket

Ralph LaurenThe Tech Polo

Shirt

ScanaduHealth

Monitoring

Smart Homes

NEXT: THE FUTURE