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Advances in Internet of Things Research

Dr. Florian Michahelles Associate Director Auto-ID Labs ETH Zurich/St.Gallen Department of Management, Technology and Economics, ETH Zrich Beijing Normal University, September 20, 2011

What is the Internet of Things

Challenges

Chances

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Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Remote communication is an old dream

www.robida.info
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as well as access to information

light poetry

news

philosophy

novel of the day

melancholic poetry

fun novels

economy

www.robida.info
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anywhere

www.robida.info
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 5 ETH / HSG

Who has coined the term Internet of Things?

I'm fairly sure the phrase "Internet of Things" started life as the title of a presentation I made at Procter & Gamble (P&G) in 1999. (Kevin Ashton in RFID Journal, 2009)

Research Results Business Requirements


www.autoidlabs.org
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 6 ETH / HSG

Perspectives on the Internet of Things

The most profound technologies are those that disappear. Marc Weiser

information is moving out of traditional computers into the world around us Neil Gershenfeld

an enabling framework for the interaction between objects yielding a convergence of technologies

things and related information move efficiently and securely through the supply-chain for the benefit of businesses and consumers GS1

a global communications platform that can be used by billions of independent devices is required European Commission

the 50billion devices


The resulting information networks promise to create new business models, improve business processes, and reduce costs and risks McKinsey

(Cisco, Ericsson)
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Internet of Things

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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First the Internet itself had to be developed

in 1969

in 1972

in 1990 (Web)

[History of Internet and WWW: The Roads and Crossroads of Internet History by Gregory R. Gromov, http://netvalley.com/intval1.html

[How It All Started. Tim Berners-Lee. W3C Tenth Anniversary, Dec 2004, www.w3.org/2004/Talks/w3c10-HowItAllStarted/ ]

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Information and Real world are separated today

10000 bio

6.5 bio 4 bio

1 bio
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 10 ETH / HSG

The Internet of Things

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Bridging between physical and digital allow for more efficient processes

When you can measure what you are speaking about, and express it in numbers, you know something about it.
Lord Kelvin Real World + Information = Internet of Things

Desired Output

Control Decision

Final Control Element

Output

Process

Measured Output

Sensor

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Internet of

Goods
Gadgets Vehicles Homes Cities Environment Energy Industrial Infrastructure Logistics Healthcare People
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

McKinsey Quarterly 2010 Number 2

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Objects become Individuals

Communication

Identity

Perception

01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05

History
EPCIS Repository EPCIS Capture Interface EPCIS Capturing Application Filtering & Collection (ALE) Interface Filtering & Collection (RFID Middleware) EPCIS Query Interface EPCIS Accessing Application

Embodied entities

Source: nobelprize.org

Reader Protocol
EPCIS Reader Source: CoBIS

Observer
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 14 ETH / HSG

Actuator

Business Rationale: Manage the chaos more efficiently

Apply structure in real world processes


Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 15 ETH / HSG

RFID as a tool against Counterfeiting of Products

Less counterfeits sold Increased brand value Improved reputation Decreased risks and liabilities

Old mind-set New mind-set

Prevent counterfeit products from having valid labels

Detect counterfeit products with invalid labels or cloned labels

Respond by prosecuting counterfeiters and confiscating their assets

holograms, inks, taggants, crypto tags etc.

checks, checks, checks! (e.g. RFID, Auto-ID)

law enforcement

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Visibility of Products in a departement store


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Mobile applications for sales staff


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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RFID infrastructure at the Essen store


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Distribution Center
Freight Elevators

Department Store Front store


Transition Backstore/ Frontstore Label Printer Gates Elevators

Label Printer

Back store

Cluster 1

Transition BS/FS
Cluster 5
Goods Issue Goods Receipt Gates Escalators

Inventory

Storage

Readers Smart Shelves

Readers Fitting Rooms

Cluster 3

Readers Checkouts (POS)

Cluster 2

Advances of IoT / Dr. Florian Michahelles Goods Receipt Smart Fitting Room Beijing / 20.September 2011

Cluster 4

Escalator Exits

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Smart Shelf

RFID Checkout

RFID raw data filtering and aggregation


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Data sources

Filtering and enrichment

Performance metrics

EPCIS data

RFID reader performance

Master data

Trace histories

Front store / back store inventory Lead times Process cycles

Smart shelf inventories

Misplaced merchandise Out-of-shelf situations

POS data

Try-ons

Merchandise performance

Utilization of fitting rooms Catchment area of fitting rooms Complements / substitutes Correlation between sales, try-on frequency and inventory Staff allocation

13 million RFID events collected between January and December 2008


Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 20 ETH / HSG

Example analysis of trace histories: Lead times between backroom and frontstore
O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

250 200 Anzahl Tage 150 100 50 0 Shorts, Bermudas Maentel Freizeithose Herrenartikel Calamar T-Shirts Accessoires Timberland Lederwesten Strick Shop Funktionswaesche Polo Sakkos Camel active Gesamtergebnis Hemden Jacken Hosen Guertel Combihose Slips Blousons Boxer Krawatten Schlafanzuege Sweat Anzuege Nachthemden Lederhosen Lederjacken Lederblousons Buggatti, G.Weber Westen Pelzvelours Ledermaentel Hauptgruppen (aggr.)
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Zeit Frontstore (MW Tage) Zeit Backstore (MW Tage)

Example analysis of inventory levels: Out-of-shelfs for "never out of shelf" (NOS) items
O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

100% 90% 5 80% 70% 60% 4 50%

4.31% 4.62%

29.54%

Bestand auf der Flche

Bestand auf der Flche

Abt. 221, HG7, NOS HO Black N3455/001 Esprit Collection, Groesse 48 Anzug DL; VK79, EK31 Auszeichnungsnummer: 4047458211592
3

23.38%

3
2 1 0

40% 30% 20% 10% 38.15%

0%
Esprit Anzug Schwarz, 48, DL

0 01.01.2008

01.02.2008

01.03.2008

01.04.2008

01.05.2008

01.06.2008

01.07.2008

01.08.2008

01.09.2008

01.10.2008

01.11.2008

01.12.2008

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Example analysis of try-ons: Try-ons, catchment areas, and room utilization


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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Example analysis of merchandise performance: Try-on / sales ratio over time


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Additional try-ons could not be transformed into sales in the evening hours. The conversion rate is underproportional compared to the afternoon.
250
230 230 214 214

30.00%

Number of Sales Number of Try-Ons

200

25.00%

20.00% 150
126
27.54%

135 135

145 145

146 146

134 134
23.83% 19.40% 15.65%

15.00%
108 108
23.15%

100
69
18.52% 15.87% 19.31% 17.12%

98 98
18.37%

10.00%
51 51

50

12.50%

16 2

19

20

25 25

28 28

25 25

18 18

26 26

36 36 25 25

5.00%

0.00% 10 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 Opening hours

09

All sales events of suits on all Mondays in the time period All try-on events of suits on all Mondays of the time period

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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RFID field experiments on the sales floor


O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010

Merchandise Density
High Low

Merchandise Presentation
By size By color

Statistical significance: high

Statistically significance: low

Display Dummy

Statistical significance: none


Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 25 ETH / HSG

Impacts of RFID
O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010
Macro environment Competitive environment Focal firm RFID Investment

Operational impacts Automational


RFID Capability

Goods Issue and Receipt Inventory-taking Checkout Returns management

Information Capability
Informational Effect

Process Capability

Transformational Effect

Management Process Performance

Operational Process Performance

?
Informational Effect

IT Capability

Informational
Automational Effect Substitutional Effect

Smart shelves Smart monitor Smart monitor MDE

Transformational
Shelf replenishment Misplacement prevention

Intermediate Outcomes
(e.g., identification errors, lead times, personnel costs, service level, capital commitment)

Firm Performance

Trading Partner Resources & Business Processes


(e.g., EDI integration, VMI processes, product-related content)

Industry Characteristics
(e.g., supply chain structure, demand patterns, product variants)

Managerial impacts Informational


Process management Category management Store layout design Purchasing / reordering HR planning

Country Characteristics
(e.g., data protection legislation, labour legislation, demographical change, privacy valuation)

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What is the Internet of Things

Challenges

Chances

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The main characteristic of IoT: Managing Heterogeneity

Interaction

Localizability Actuation Communication Identification Addressing

Compatibility

Perception

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What does it mean, to connect a thing? 1. Identification

Unique identification Addressing scheme Reference architecture


EPCglobal Root-level ONS
Operated by Verisign under contract to EPCglobal
EPC sgtin sscc Id.onsepc.com sgln grai giai gid

Company 1
Product A Operated in-house or by third party provider EPCIS
(Manufacturer)
Productspecific Web pages Product-level data Global Data Serial-level data Sync.

Company 2
Product B

Company 3
Product C

Second-tier ONS

EPCIS Discovery Services


Any companies on individual Supply Chain EPCIS EPCIS EPCIS

Serial-level Data (e.g. history of location, temperature)

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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RFID as a tool against Counterfeiting of Products

Financial & economical benefits ($)

Less counterfeits sold Increased brand value Improved reputation Decreased risks and liabilities

Old mind-set New mind-set

Security Process

Prevent counterfeit products from having valid labels

Detect counterfeit products with invalid labels or cloned labels

Respond by prosecuting counterfeiters and confiscating their assets

Real world

Holograms, inks, taggants, crypto tags etc.

Checks, checks, checks! (e.g. RFID, Auto-ID)

Law enforcement

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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What does it mean, to connect a thing? 2. Networking/Communication

Connect to each other

Connect to Internet
Energy efficient
Interoperable Wireless Protocols required (GSM/Wifi/Bluetooth/ 6LoWPan/RoLL) www.ipso-alliance.org

http://www.epcglobalinc. org/standards/architecture

www.webofthings.com

Distinguish between Internet of Things and Internet: Internet of Things will also consider objects not being connected to the Internet.

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Example: EPC Architecture Framework Cross company framework

Object Naming Service (ONS)

Discovery Service

Producer
EPC Information Services (EPCIS) Filtering & Collection Middleware RFID Reader

Distributor
EPC Information Services (EPCIS) Filtering & Collection Middleware RFID Reader

Retailer
EPC Information Services (EPCIS) Filtering & Collection Middleware RFID Reader

www.fosstrak.org

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What does it mean, to connect a thing? 3. Sensing/Location

Collect, forward, react to information of the surrounding Location-awareness

Passive RFID Tags Identifying product code

Active Tags Longer range

Sensor Tags Sensing & Control

Wireless Sensor Network Sensing & Control

Internet

Agriculture

Flood Monitoring

Fire Monitoring

Environmental Monitoring

Military

Supply Chain/ Cold Chain Mgmt.

Structural Health Monitoring

Smart Home

[Wired Magazin Feb 2009] Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 33 ETH / HSG

E.g. Pachube

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What does it mean, to connect a thing? 4. Data Storage and processing

Collect data Pre-processing on item Interpretate sensor data Store high-level data in Object memory

Application 1 Enterprise Application

Application 2

Application m Internal Database

Object Name Service EPCIS Discovery Service Provides URLs to authoritative Provides secure serial-level pointers Context provision information for a given EPC across the supply chain to trusted partners Relate to EPC data Context Calculation (e.g. biz step, location), Perception across all relevant sensors

EPC Information Service (networked database)

Application Level Events (ALE) (networked database) Low Level Reader Protocol

Collect data Process/store higher-level data

Feature Gen2 calculation Reader Sensor 1 Sensor 1

Feature IP-WSN ZigBee calculation Reader Reader Sensor 2 Sensor 2

Capture event data (tags and sensors)

Feature

Proprietary calculation WSN Reader

Sensor n Sensor n

EPC tag Schmidt, Context IP-WSN [Prof. Albrecht Aware Computing, 2011]

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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What does it mean, to connect a thing? 5. User Interface

Support user's mental models Tangible user interfaces Multi-modal


[Source: Patrick Baudisch, Tutorial Day at MobileHCI 2008, Amsterdam]

Mediators (e.g. mobile phones)

SwissPeaks, ETH Zurich

Collaborative business items (COBIS Project)

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What is the Internet of Things

Challenges

Chances

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1. Expectations Management

Offer Benefits!

All RFID is the same Embedded/hidden RFID tags

Education Transparency

RFID is infringing privacy


RFID is invisible
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Allow to read data


Deployment of Reader

1. Managing Heterogeneity

Interaction

Localizability Actuation Communication Identification Addressing

Compatibility

Perception

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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2. Serve users: Understand daily activities

What to do with all these things: products use, search, combine, borrow, buy, sell, describe

Breakfast, Chat, news

Start work

Break Meetings

Entertainment, Sports, Dinner

07:30

08:00

08:30

09:00

12:00

15:00

18:30

19:30

22:30

Wake up, get ready

Get to work

Lunch, Socialize

End work, Grocery shopping

Go to bed

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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2. Serve users: e.g. From business intelligence to personal intelligence

Quantified self
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2. Serve users: e.g. Develop new personalized services

Retail
www.i-lab.ch

Insurance

Brand

Customer

Insurance

Utility

www.i-lab.ch

www.bitstoenergy.ch

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3. Incorporate wisdom of the crowd e.g. crowd-sourced translation

Liu, Y., Lehdonvirta, V. Kleppe, M., Alexandrova, T., Kimura, H., & Nakajima, T. (2010) A Crowdsourcing Based Mobile Image Translation and Knowledge Sharing Service. In: Proceedings of the 9th International Conference on Mobile and Ubiquitous Multimedia (MUM 2010), Limassol, Cyprus, December 1-3.

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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3. Incorporate wisdom of the crowd e.g. AppAware.org Users Share and Find Mobile Apps

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3. Incorporate wisdom of the crowd Enable for DiY Creation in the Internet of Things

Architecting the Internet of Things, Uckelmann, Dieter; Harrison, Mark; Michahelles, Florian; Springer, 2011
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 45 ETH / HSG

3. Incorporate wisdom of the crowd e.g. Embedding Social Networks on the Sales Floor

Social Media: Facebook Product Fan Page

Public Display Field Experiment

5'000 4'000 3'000 2'000 1'000 0

Facebook comments updated daily

Impact on Sales
Digital signage w/social network comments increase sales. Product comments are stronger than brand comments.

Impact on Customers
Text-based messages are harder to read than classical advertising. Digital natives like seeing themselves or friends on screen.

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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4. Establishment of new business models e.g. Pay-as-you-risk

Smoke detector

Water detector

Weather sensor

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

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The ultimate promise of the Internet-of-Things: Bring it all together

Financial and non-financial Incentives for information sharing

Content provided by
Companies

Internet of Things
Business Innovation

Benefits
Companies Smart business applications

Company ethics Usage Object and location data New Services enabled by the Internet of Things Front-end Web of Things Architecture

Real-time analytics & business intelligence Supply-chain visibility Public Institutions Public services & offerings

Public Institutions Public services & offerings

People Social Platforms Buying behaviour

Edge devices and management Back-end Internet of Things Core Architecture

People Smart public applications Empowerment of end-users

Architecting the Internet of Things, Uckelmann, Dieter; Harrison, Mark; Michahelles, Florian; Springer 2011 Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 48 ETH / HSG

Outlook

There won't be one IoT architecture

The IoT will be driven by applications

Standards emerge as an evolution From isolated to networked From proprietary to open standards

The Internet of Things has no governance

Things will be networked for multi-purpose Successful systems will be designed by people around the world Systems should allow for local repair and configuration
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 49 ETH / HSG

The real benefits emerge from mashing applications

Thank you very much!

"The Internet of Things is not synonymous with ubiquitous/pervasive computing, the Internet Protocol (IP), communication technology, embedded devices, its applications, the Internet of People or the Intranet/Extranet of Things, yet it combines aspects and technologies of all of these approaches."
Uckelmann, Dieter; Harrisson, Mark; Michahelles, Florian, eds (2011). "An Architectural Approach Towards the Future Internet of Things". Architecting the Internet of Things. Berlin, Germany: Springer.

Florian Michahelles ETH Zurich http://florian-michahelles.blogspot.com http//www.im.ethz.ch/people/fmichahelles fmichahelles@ethz.ch

+41 (44) 632 7477


Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 50 ETH / HSG

Readings

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