// The Internet of Things can radically

change value propositions. It can enable

fast new entrants and totally re-shape a
sector. Do you know how it might affect
your organisation, your customers, your
suppliers, your industry?
March 2016

The Internet
of Things

VQ Insights, trends and opportunities for the Vistage community.

 VQ | The Internet of Things 3

Publishing Contents

18 The Internet of
Things EcoSystem
// RFID – What is it?
11
Similar in some ways to barcodes,
EDITOR but with RFID, each RFID tag can be
Steve Gilroy unique to identify a specific object –
CEO Vistage International (UK) Ltd
not just the type of object.
steve.gilroy@vistage.co.uk
Tel: 01489 770200

EDITORIAL PRODUCTION
Penny Dablin
Enterprise Marketing Solutions Ltd
penny.dablin@enterprisemarketing.co.uk
Tel: 01296 737823
17
ART DIRECTOR/GRAPHIC DESIGN
Karen Brain
Think Branding
karen.brain@thinkbranding.co.uk
// The NEST Learning
Tel: 0845 643 5311 Thermostat
A smart heating controller from
PUBLISHER the Google-owned company,
Vistage International (UK) Ltd Nest, developed to save energy on
Vanbrugh House heating or cooling the home.
Grange Drive
Hedge End
Hampshire
SO30 2AF
Tel: 01489 770200
Fax: 01489 770270

Vistage is... Main Features 34 // Think the IoT doesn’t apply to

06 // IoT Overview
A new ‘wave’ of technology that involves the
connection of billions of devices with the Internet.
your industry?
Think again…

37 // Implications for Business

What does the Internet of Things mean for you?
31
// Milton Keynes –

“A gym for your business, 09 // IoT Sensors 41 // Re-thinking your Strategy

SMART City
How information technology and
Sensors are the first step in the Internet of Things… data analytics can be used to drive
to get fit er and faster,
The Internet of Things is radically changing the
way we live... sustainable growth.
12 // Connectivity

or relax and refle t” Several different technologies are available with

different strengths and limitations.
42 // In Conclusion
The IoT... We just can’t afford to ignore it.

15 // Smart Products
Case Studies
Copyright © 2016 Vistage International Smart Products are in every area of life…
(UK) Ltd. All rights reserved.

Stephen Brown
MD, Euro Projects Recruitment
Vistage provides the information contained
in this document to stimulate thought and
discussion. We work hard to ensure that
the information presented is accurate at
the time of publishing, but you should take
independent advice before acting on any
information presented.
No part of this document can be
reproduced in any form without the
written permission of Vistage International
(UK) Ltd.
18 // The IoT Ecosystem
IoT Ecosystems open up a traditional application or
industry to create a much broader opportunity…
26 // Security and Privacy
What are the risks and how can you manage them?
30 // Big Data
The IoT is generating multiple terabytes of data
every day…
36
24 // Vistage: Ben Wales, 3gamma
25 // Ed Liversidge, Harmonic
// Apple iBeacon
28 // Vistage: Julian Ranger, Digi.me Since Apple introduced iBeacon
technology several companies
29 // Ashley Shone, AVNET have entered the beacon market,
developing transmitters and
40 // Roger Hazelden, Conekt
associated apps.
 VQ | The Internet of Things 5

//From

F
the
Vistage is the driving Editor
force behind all of my or most of us, our work and home

major decisions
life now revolves around a 24x7
connected world, enabled by
mobile phone technology and
WiFi. We’ve also moved beyond
email and websites to a world of

Vistage is my route to thousands of discrete apps that

deliver small chunks of information
on demand, and many also
business growth and interrupt us and tell us what is
going on, what we should be doing and what others are
that are affected – consumer products, the car industry,
home appliances etc. But look more deeply and you’ll find

innovation doing – whether we like it or not.

Over the past few years, a new range of smart products
have also entered our lives. From fitness trackers to intelligent
toothbrushes, smart TVs and connected cars, we’ve now
entered a new world, where it’s not just people who are
that all sectors are affected. The Internet of Things can
radically change value propositions. It can enable fast new
entrants and totally re-shape a sector. Do you know how
it might affect your organisation, your customers, your
suppliers, your industry?

Vistage is where I go connected. All around us the devices, the machines, the
equipment we interact with (and many that we don’t) are
This issue of VQ explores the Internet of Things from the
perspective of business. Whatever business or organisation you

to get my answers now also connected; to each other, to bigger systems, to the
world at large.
lead, the information we’ve compiled and presented should
enable you to consider how to protect your business and
exploit new opportunities provided by The Internet of Things.
questioned
From an entirely personal point of view, as someone
who is from the technology industry and whose family is
definitely a set of ‘early adopters’, I’m not really sure we’ve fully
grasped what is happening or what is coming. We buy the
Have you got a comment
products, connect them to our WiFi and phones. We click on Steve Gilroy | CEO, Vistage UK or suggestion for future VQ
license agreements, we share our profiles and data and we topics? I’d love to hear your
thoughts:
join all sorts of communities. Do we really
steve.gilroy@vistage.co.uk
understand how all of this connects, how
our data is actually being used across all of
the systems and platforms?
What about the information that the
devices and products collect without us p USEFUL WEBSITES
16 Business Leaders. 1 boardroom. Endless possibilities. being fully aware (of course the manufacturers
would point us to the license agreements and
X www.wired.com
X www.cisco.com
terms and conditions – it’s all in the small X www.theinternetofthings.eu
Since 1957, Vistage has been bringing together successful MDs, CEOs, executives and print)? If I buy a connected car, then I have
no choice in what it collects, what it shares.
X www.forbes.com
X www.theguardian.com/uk/
business owners into private advisory groups. Each group is purpose-built to help If I buy that shiny new toothbrush, I’m also technology
signing up for data being collected on my
members help each other improve the performance and outcomes of their business.
X www.telegraph.co.uk/technology
brushing habits. For individuals then, there X www.mckinsey.com/industries/
high-tech/our-insights/the-
are many hidden implications of this new
internet-of-things
connected world.
In our confidential roups, about a dozen executives meet once a month to solve For businesses, the implications are
X www.iofthings.org
X dupress.com/articles/iot-primer-
problems, evaluate opportunities and work on an assortment of strategic and operational even bigger. Traditional products, services iot-technologies-applications
and even entire sectors could be at risk by
issues. Our 20,000 members around the world represent a wide range of industries and a
X www.3gamma.com
the changes coming from the Internet of X www.digi.me

variety of backgrounds. Things. But equally, brand new products,

BIG Data Page 30
X www.avnet-embedded.eu
X www.harmonicss.co.uk
new services, new efficiencies, new business
Implications of IoT for Business Page 37 X www.conekt.co.uk
models, new markets can also be enabled.
To find out more about how you can develop and grow your business contact Tim
See the Internet of Things Infographic on pages 22-23
At fi rst glance it’s only the obvious sectors

Ponsford on 01489 770237, email tim.ponsford@vistage.co.uk or visit vistage.co.uk

6 March 2016 | VQ VQ | The Internet of Things 7

Smart Products

IoT Overview
During 2008 the number of devices PRODUCTS ARE NOT ONLY collecting and transmitting
connected to the Internet surpassed the data, they are becoming smart. This is creating fundamental

number of human beings on the planet. changes in the way businesses operate and how they can
communicate with their customers, suppliers and prospects.
Today’s smart products include a multitude of different
sensors with connectivity (see section on Smart Devices).
As an example, a car consists of various physical parts – the
engine, tyres, chassis, seats etc. At the same time it contains
The Internet of Things (IoT) is a term that describes a new ‘wave’ of technology that involves the connection
of millions (or billions) of devices with the Internet. These devices span many different industries and
Third Wave of sensors that relay information from fuel level, engine
warning lights that indicate that a service is necessary, and

applications, and they range from simple sensors/controls (e.g. the home thermostat) to more complex ‘smart
products’, software systems that collect and
exchange data, make decisions and take
action remotely – sometimes without the
intervention of human beings!
Information Technology
TAKING A BROAD VIEW, Information Technology (IT) has
actually established itself as a series of ‘waves’. The first
wave of IT was the development of the computer. Originally
developed to assist military mathematicians the early
computers used vacuum tubes that took up huge amounts
of space and power. With the development of transistors,
computers entered the business marketplace with larger
companies setting up air-conditioned, temperature
controlled computer rooms to house them. Banks of tape
drives, and later, disk drives allowed for data storage. Punched
card decks and dumb terminals enabled programmers to
interface with the machines.
While big and unwieldy these first computers revolutionised
Y First Wave –
Computing
Revolutionary for the
business marketplace, with
larger companies setting up
air-conditioned rooms to
house these large unwieldy
machines.
Y Second Wave –
Personal Computing
Technology became available
for everyone in their own
home, along with the Internet.
diagnostic information to the garage mechanic. The latest
models include connectivity so they can be monitored and
manipulated from a distance.
There is an enormous range of smart products already and
this is expanding rapidly. Already we have smartphones,
wearables to track exercise, smart toothbrushes that monitor
our brushing habits and smart washing machines that sense
the wash load and adjust as needed and there’s even a
smart high chair that tracks your child’s weight as he/she
grows! Of course, there are a multitude of smart sensors
across industry and our workplace, from intelligent
photocopiers to office entry/security systems that know who
you are and where you are. Devices are everywhere and the
number of them is simply staggering.
During 2008 the number of devices connected to the
Internet surpassed the number of human beings on the

History of the
data processing. Suddenly it was possible to handle more planet. Estimates suggest the number of connected devices
data, and perform complex calculations more quickly will reach 50 billion as soon as 20201. As devices fi nd their

...and the instruments through which we will
be able to do this will be amazingly simple
compared with our present telephone. A man
will be able to carry one in his vest pocket.
Nikola Tesla (1926)
Internet of Things
There have been various milestones on the way to a fully
connected world. In 1926 the genius and visionary Nikola
Tesla foresaw the development of IoT when he was quoted
in Collier Magazine:
When wireless is perfectly applied the whole earth will be
converted into a huge brain, which in fact it is, all things
being particles of a real and rhythmic whole...
...and the instruments through which we shall be able
to do this will be amazingly simple compared with our
present telephone. A man will be able to carry one in his
vest pocket.
Since that point technology has developed and expanded at
an ever-increasing rate to the point where the world is rapidly
becoming fully connected.
The term Internet of Things was first coined by Kevin Ashton
in 1999 as the title of a speech he gave at Proctor and Gamble
on technological advances and the idea of linking RFID with
the Internet. With the introduction of IPv4 (Internet Protocol
4) in 1981 and the proposition of the Worldwide Web in 1989,
the systems integration and connectivity that is referred to as
the Internet of Things became possible.
than ever before. This led to multiple uses within industry
and commerce including the automation of financial and
accounting functions. It also allowed for much greater and
more effective data management such as storing information
regarding pensions and insurance.
The second wave brought us the Internet and the personal
computer (PC). Within a very short time computing power
became available to everyone in their own home. The
technology was there for individuals to use as they wished.
From the calculating power of spreadsheets and word
processing, through to desktop publishing and games.
Within businesses the advent of PCs meant the end of the
typing pool as executives started to do their own typing. And
with the Internet there was much more co-ordination and
integration of processes across different locations. It became
possible to set up and monitor global supply chains, send
data and messages instantly and publish/share information
on a global basis.
We are now in the third wave of Information Technology,
where individual devices are becoming intelligent and
ubiquitous. Smartphones with software apps collect and
distribute data, sensors have become so small and cheap
that they can be used everywhere. The devices are in our
cars, in our home appliances (smart washing machines and
refrigerators), in our offices, factories and retail stores.
way into all aspects of our home and work life, it presents
Y Third Wave – both challenges and massive opportunities for those that are
Mobile Computing
Cheaper and accessible well prepared.
individual Smart devices
are utilised to collect and
Connectivity
distribute data.
IN ADDITION TO the smart devices that collect, transmit
and receive data, the IoT requires connectivity. The
Worldwide Web where everything is connected to everything
else is a massive network of linked devices, connected
together via the Internet and various methods of mobile
phone, radio and other forms of communication.
Connectivity enables communication of a product with
its environment, with its manufacturer, with other users
and with other products and systems. It also enables the
functionality and 'intelligence' to be separated from the
The number
sensor level, held in the cloud and used by other
of connected processes. All of which requires machine-to-machine
devices will communication, where no human intervention is needed or
reach 50
sought.
billion by Examples of Machine-to-Machine (M2M) communication
2020
cover many different industries including farming/
agriculture, transportation, retail and even the
entertainment industry.
In farming there are collars worn by cows that transmit up
to 2mb of data a day to the monitoring computer relaying
8 March 2016 | VQ

information about the cows’ behaviour patterns.

p The software can recognise abnormal patterns that
indicate a particular animal is sick or in season so the
The IoT Ecosystem
farmer can take the necessary action.
With transportation we already have ‘keyless’ cars that will unlock
and even start up simply because the car ‘knows’ that you have
the key on your person somewhere – you no longer have to insert
SECURITY SENSORS STANDARDS
INTERNET OF THINGS

SENSORS
it into the lock! We’re also paying for train and bus journeys with Action Create data
a fl ash of a mobile phone or ‘touchless’ credit card. The timing of instructions
traffi c lights can be automatically altered depending on traffic
fl ows that have been measured by tapping into drivers’ GPS
AUGMENTED NETWORKS
systems. And of course, there is the automatic tracking of parcels
BEHAVIOUR
and deliveries using radio-frequency identifi cation (RFID) tags.

Aggregate and Communicate data

Big Data
Another aspect of the IoT is the fact that all of the M2M
communications, and the billions of devices, are actually
collecting a massive amount of data – Big Data.
Some of this data collection is benign and useful – tracking the
wear and tear on your car engine enables you to have the car
serviced when needed and could avoid breakdown or accident.
Collecting data on how we heat our homes might not only help
us to manage our own energy uses, but on a street-wide or city-
wide basis it might also allow us to see ‘bigger pictures’ of our
habits, needs and behaviours.
For business, the opportunities presented by Big Data are
sometimes obvious, and sometimes absolutely not obvious.
Discovering what people do with your product may help you
to understand how your customers are using your product, how
analyse data
AUGMENTED
INTELLIGENCE
Figure: The IoT Ecosystem based on Deloitte’s Information Value Loop 3
As can be seen from the diagram, within the IoT, Sensors gather data and transmit
it over Networks to intelligent software (Augmented Intelligence) that can interpret
the data and determine what actions need to be taken (Augmented Behaviour).
That action is often to be performed by another machine, which in turn will have
sensors. And so the cycle repeats. Over the whole cycle are the Standards and
Security considerations. In addition, each sub-ecosystem within the Internet of
Things can potentially communicate with other sub-ecosystems to create a whole
system such as a Smart City.

j
the product is functioning and so you might be able to be more
effi cient, to sell more or to support your customers in a better way. WHAT DOES THIS
However, as economist Tim Harford warns in the 2014
Signifi cance Lecture – The Big Data Trap2 – we must beware
MEAN FOR BUSINESS?
confusing correlation with causation. Just because something
happens together with something else does not mean there is a THE IoT PRESENTS MASSIVE POTENTIAL AND POSSIBILITY.
connection. For example, if data tells you that people leave their Even small businesses can now leverage the IoT and create new
services, be more efficient, off er new products.

home at 7am (smart home security), and that they are in their car
moving away from their home (smart car and GPS) then maybe
we could automatically reduce the heat in their home (smart
thermostat and heating system). But what if they owned pets that
needed a certain temperature to be maintained at the home?
How you analyse the data and the conclusions drawn from it need
to be very carefully considered – the implications might be much
more serious than the above example.
1 http://readwrite.com/2011/07/17/cisco_50_billion_things_on_the_internet_by_2020
2 https://m.youtube.com/watch?v=0cizsKDn3TI
3 http://dupress.com/articles/iot-primer-iot-technologies-applications/
j
But there are also challenges and potential threats to businesses
of all sizes, in all industries.
It is now far easier for competitors to enter your space. They WHAT ARE THEY AND WHAT DO THEY DO?
can be remote, new, small, and may not come from your sector
at all. Your entire product/service could be threatened by what Sensors are the first step in the Internet of Things. They detect
the IoT enables. or monitor a specific condition or behaviour before collecting
There are lots of recent examples of hackers and scammers the data and transmitting it to other devices on the network.
trying endlessly to break into the systems that enable and
Sensors come in many different shapes and sizes for different
deliver the IoT. Your property may be at risk, your data
and personal identity, and your business itself could be uses. Examples include temperature sensing, noise, vibration,
threatened by a weakness in security. proximity, position, whether something is open or closed, they
The following sections explore the diff erent aspects of the IoT in can measure speed, pressure, direction and more.
greater detail, and should enable you to consider the likely impact
or opportunities for your business ■

Picture courtesy of news.silabs.com

10 March 2016 | VQ VQ | The Internet of Things 11

It all starts with the sensors... FOR AN OVERVIEW

RFID
OF THE RFID SECTOR
and the latest news see

A single generic
the RFID Journal online
at rfidjournal.com

temperature sensor
– WHAT IS IT?
RFID standards are

F
developed and issued

device can be used

by a number of different
bodies including EPC
or wearable products such as health monitors (e.g. Fitbit, Global, the International

Apple watch, Jawbone etc.), the device inside is generally for thermostats, Radio Frequency IDentification (RFID) is the term for
Electrotechnical
Commission (IEC),
measuring temperature, pulse rate etc. by emitting a
car climate control,
ISO (International

tiny light source and then measuring the interruptions technology that uses radio waves to uniquely identify Standards Organisation)
and the European
in light refl ected back from your wrist. The same function of baby monitors, people or objects. It’s similar in some ways to barcodes but Telecommunications
Standards Institute for
emitted light and measuring an interruption or strength of what is with RFID, each RFID tag can be unique and can therefore
printers, cooling
standards in Europe.
refl ected back can be used for many different applications.
identify a specific object (not just the type of object). The International RFID
For example, a single sensor (e.g. Silicon Labs Ambient Light/ fans, washing Business Association
(RFIDba)1 is a not-for-
Proximity Sensor) can be used in IoT applications for:
p Heart rate and pulse monitoring machines, profit, educational,
vendor neutral,
An RFID system comprises 2 parts technology and
p Touch-sensitive controls or displays refrigerators... frequency agnostic
p Smoke detectors – a tag and a reader. trade association
dedicated to educating
p Occupancy sensing the end user community
p Detecting the presence of an object, liquid etc. The tags consist of an integrated circuit (known as a chip) attached who may be interested
in implementing RFID
Another generic type of sensor is a temperature sensor. to an antenna printed, etched or stamped onto a mount. They are technologies in their
The sensor is tiny – 2mm x 2mm, consumes very little power (9 enterprise.
Temperature sensors are used in all sorts of applications. Apart extremely thin and can be sandwiched between a printed label
µA – that’s 9 micro-amps) and can transmit data at up to 3.4
from the obvious home heating thermostat applications, a and its adhesive backing. Each chip is pre-programmed with a Another avenue for
MBps. It can also detect light at ranges from under 1cm (e.g.
temperature sensor can be used in applications such as car tag identifier together with a memory bank to store the item’s information and
wearable wrist band) to up to 2m (e.g. occupancy detection). possible partnership
heating/climate control, laser or inkjet printers (some printers unique tracking ID. Other RFID tags look like small pills and can be is the RFID Advanced
need to maintain a certain temperature to print), baby monitors, X This RFID
bullet shaped or shaped like small coins. Some have their own tiny Research2 based at the
University of Derby. They
laptops (ever wondered what turns on the cooling fan in your tracking device battery so can power themselves for months or years. Others can are actively supporting
Y The Si705 for pets and farm companies in assessing
laptop?), washing machines, refrigerators and so-on. Again, one animals is no bigger
draw a tiny amount of power from radio waves.
Digital their operations for RFID
Temperature single generic temperature sensor device can be used for all of than a grain of rice
RFID readers transmit electromagnetic waves to ‘seek’ for tags. The adoption, together with
Sensor is only and can be easily enhancing economic
3mm square and
the above and more. A specific example is the Silicon Labs Si705 injected under the tags, in turn, can draw power from a field created by the reader to competitiveness in
it can measure Digital Temperature Sensor. skin of the animal
power the RFID microchip. The chip then modulates the waves and production and supply
temperatures without any irritation. chain operations.
from -40ºC to This sensor is only 3mm x 3mm, and it can measure temperatures the tag sends signals back to the reader where they are converted
+125ºC, with an
accuracy of 0.3
from -40ºC to +125ºC, with an accuracy of 0.3 degrees. It can into meaningful data about the RFID identity.
degrees. operate on a single watch battery for up to 10 years! RFID can be used over distances of a few inches to 30-50 metres
Another type of sensor is a humidity sensor. Humidity sensors are depending on the type of tag and type of reader. For the longer
...wearable health monitors used to ensure living, storage and manufacturing areas are kept range uses, the individual tags need to have their own battery

measure pulse rates and

in optimum conditions. Control of relative humidity is vital for power source.
the preservation of many different materials including medicines,
temperature by emi ing a tiny foods, fabric, paper and wood products. Too much humidity
can lead to mould and increased insect activity while too little
RFID is already in use in many different
applications including:
light source and measuring humidity can cause materials to become brittle and fragile.
p Tracking farm animals and pets (tags can be inserted under the
any interruptions or changes An example of a humidity sensor is the Si7005 from Silicon
Labs. This sensor is 3mm x 3mm and uses a polymide film to
skin or held within a plastic animal tag that is fixed to the animal).

in light strength. detect changes in humidity. The humidity sensor is paired with p Tracking products on a production line
a temperature sensor as relative humidity is dependent upon p Tracking high value assets such as tools
1 http://www.rfidba.org
ambient temperature. p Payment systems – to identify who is paying 2 http://www.therfid.com

p WHATEVER IOT ENABLED PROJECT YOU WANT TO

CREATE, it all starts with the sensors. Determine what data
you need to collect and which sensors will work best for you.
These sensor chips can then be included in your IoT product
p Security – controlling access to places or networks (staff door
entry cards or badges have RFID tags within them)
p Authentication of frequently counterfeited pharmaceuticals
p Entertainment
design along with the electronics for logic control and for p Sports training
relaying of information through connectivity – see next section.
12 March 2016 | VQ VQ | The Internet of Things 13

Connectivity
CONNECTIVITY RANGE POWER USAGE NETWORK SIZE DATA RATES
The second stage of the IoT value loop is Bluetooth up to 10m Low 1-20 devices 2 MBps
connectivity. Devices that simply monitor WiFi up to 100m High 250+ devices 100 MBps
if required
things and collect data are of no use
ZigBee Short range Low Can be thousands 250 KBps
unless they connect to other devices or (usually much lower)

within the IoT systems which can then make use of the
data in some way.
LoRaWAN
RFID
Cellphone technology
4G/5G
High
Medium
Fairly short
(has deadspots)
Very Low
Very Low
High
High
High
High
Low
Low
Medium/High

Bluetooth and Bluetooth Low Energy

Connectivity Options and Considerations
Within the IoT, there are several different connectivity technologies that could be used – all with different
strengths and limitations. The type of connectivity used will generally depend on the following:
■ Power consumption
Some smart devices need to be
portable (e.g. smart toothbrush,
wearable health monitors etc.). So
their power source (generally a
rechargeable battery) needs to be
able to power the device itself and
its connectivity. A wearable device
generally needs to have a battery
life of 10+ hours to be practical.
■ Speed of data transfer
Some devices will collect tiny pieces
of data (e.g. room temperature), and so
will have very little data to collect and
share. Other devices may collect lots
of data that is updated frequently and
needs to be shared or transmitted
at high-speed (e.g. in-car sensors
monitoring speed, video systems
sending video etc.). These ‘data-
hungry’ devices need connectivity
that can transfer large amounts of
data at high-speeds.
■ Distance of range
If an IoT device only needs to
transmit over a few metres, to
a data collection point or other
device, then the connectivity
system can be simple. On the
other hand, if data needs to be
transmitted over some distance,
then a higher-strength system
such as the mobile phone network
might be needed.
■ The systems or
networks available
Although there are some IoT
connectivity technologies that
were developed primarily for the
IoT, many IoT systems make use of
existing platforms such as WiFi or
the mobile phone network. Even
with these, there are benefits and
limitations to be considered.
Bluetooth technology is a wireless technology using
short wavelength radio waves. It was originally developed
for mobile phone hands-free use transmitting signals
between the phone and the headset wirelessly. It has a
short range of up to 10 metres and fairly low power usage.
The connections tend to be one-to-one between paired
devices although up to 20 devices can be connected
together if required.
Bluetooth Low Energy was designed for lower data
throughput, this reduces the power consumption needs
of Bluetooth devices so they can run for years on one small
coin battery. This has enabled new applications in many
different arenas including health, fitness, toys, automotive
and more.
WiFi
WiFi was developed to replace wired systems and has
proved very popular as a way to access the Internet
remotely. WiFi systems are now found in most homes
and offices and the ease and inexpensiveness of use has
led to the proliferation of businesses offering free WiFi to
their customers including airports, cafés and even trains.
Although WiFi can reach for up to 100m it is easily blocked
by electronic equipment and some building materials so in
reality it tends to have a range of within the building and
immediate surrounds.
ZigBee
Zigbee uses high-frequency radio bands and is utilised
mainly in domestic and office environments with
applications such as smart energy, home automation and
lighting control. The Zigbee systems are self-contained
and need a further gateway to connect to the Internet. It
is a low-throughput, low power and low cost technology.
More information can be obtained from the Zigbee
Alliance (http://www.zigbee.org).
Select your network
connectivity carefully
LoRaWAN
LoRaWAN is a long range wide area network developed
to meet the requirements of Smart City communications.
It has been designed to utilise small amounts of data
infrequently to conserve battery life. In this way batteries
on the sensors in the field can last up to 10 years. Data
can be transmitted from 3km to 5km within cities and up
to 15km in rural areas where there are fewer buildings to
block the signals. Security has been built into the LoRaWAN
standards as double encryption. More information can be
obtained from the LoRa Alliance (www.lora-alliance.org).
RFID
RFID or radio-frequency identification is another wireless
technology that uses electromagnetic fields to transfer
data. An RFID chip is about the size of 2 rice grains so
it’s easy to attach to product tags and to clothing. RFID
is used extensively on assembly lines to track a product
throughout the production process. The chips are also
used widely in farming applications (animal tags to identify
a specific animal, track location, record treatments, etc.).
Several professional rugby teams now use RFID chips in the
pockets on the players’ shirts. During games the positional
data from every player is being continually transmitted
allowing for greater entertainment for the crowds during
the matches. After a match the same data can be used
by trainers and coaches to improve player positioning
and effectiveness.
 SMART
14 March 2016 | VQ VQ | The Internet of Things 15

IP ADDRESSES
PRODUCTS
4G
4G (Fourth generation mobile telecommunications) was

Making the Internet

a technological leap from the previous 3G mobile system.
In place of circuit-switched telephony, 4G is an Internet
Protocol based communications system based on an all-IP
packet switched network. It offers peak data rates of up to
100 Mbit/s for high mobility users (e.g. on moving trains and
of Things Possible
cars) and a peak data rate of around 1Gbit/s for low mobility Sensors are the first step in the Internet of Things. They detect or monitor a specific condition
users such as pedestrians. or behaviour before transmitting it to another device or network. Smart Products work by
The higher data rates and Internet connectivity mean you We’re used to using web addresses via our PCs, laptops and mobile devices; we simply incorporating one or more sensors into a device or product. The Smart Product may also store
type in a web address and the Internet responds with the appropriate website. Behind
can stream videos and live television direct to your mobile
the scenes, our web address is actually translated into a specifi c address number – the
or collect data over time, and may allow the transmission of the data to other devices or systems.
phone, engage in video conferences with ease, and access
the cloud for on the move connectivity and business. Internet Protocol (IP) address. When the Internet was fi rst conceived computing was Smart Products may also allow a user to interact with the product in some way – for normal use,
While this is a major step forward there are still issues that
limited to massive mainframe computers, then along came personal computers. When configuration, linking to other systems etc.
IP addressing was conceived, a coding system was developed (IPv4) that allowed for a
need to be addressed including poor signal strength in
possible 4 billion diff erent addresses – more than enough at the time!
remote areas, the overloaded bandwidth, and the need for
ever faster communications. However, as we started to collect mobile devices, the demand for IP addresses started
to grow. When IoT devices started to appear, each needed its own individual IP address,
and so the 4 billion-odd IP addresses allowed by IPv4 were nowhere near enough.

5G
5G or fifth generation mobile telecommunications, aims to
address these issues over the next few years. While still in its
conceptual state, some of the stated aims for 5G include:
■ Network system capacity up to 1000 times 4G capacity
■ Data rates of up to 10 times 4G rates (1Gbit/s for high
mobility users and 10Gbit/s for low mobility users
■ Spectral efficiency and energy improvements in the order
of 10 times 4G levels
5G should result in broadcast quality services and make lifeline
communications in times of disaster much more effective.
The ultimate aim is to connect the whole world and achieve
seamless communications between anybody and anything,
anywhere, at any time, anyhow.
In September 2015, the 5G Innovation Centre at the
University of Surrey was officially opened. This is the
world’s largest academic research centre dedicated to To address that problem a new IP address standard was developed – IPv6.
the next generation of mobile and wireless connectivity.
IPv6 uses hexadecimal representation of 8 groups of 4 hex digits. Each group represents
The Centre houses over 170 researchers and has attracted
16 bits and the whole allows for up to 2128 addresses. That’s approximately 340 x 1036
over £70 million of investment. It brings together leading
or 340,000,000,000,000,000,000,000,000,000,000,000,000. Hopefully that will be enough
academic expertise and major industry partners to define
addresses to enable the IoT!
and develop a global 5G network that will make a radical
difference across the world. Researchers at the Centre For those interested, the theoretical capacity for internet addresses is now:
have already developed a technology demonstrating 340,282,366,920,938,463,463,374,607,431,768,211,456
speeds of one terabit per second, more than 1000 times For those wondering how you actually say this number, it’s as follows:
faster than the highest 4G speed. The 5G Innovation 340 undecillion, 282 decillion, 366 nonillion, 920 octillion, 938 septillion, 463 sextillion,
Centre is at the forefront of 5G development and IoT 463 quintillion, 374 quadrillion, 607 trillion, 431 billion, 768 million, 211 thousand
expansion in the UK. and 456!

■ Take a few minutes

and think about
your home, your

While 4G and 5G are mobile technologies, WiFi is the short range wireless
office, your life.
■ How many

broadband technology favoured by mobile users. According to the WiFi

SMART products
can you identify?

Alliance, 71% of all mobile communications is over WiFi networks ■

16 March 2016 | VQ
Smart Products in
Every Area of Life
Smart Products in
the home
There are dozens of new smart
products coming to market to support life
at home including smart heating controls
from companies such as Nest (see panel),
smart security systems, baby monitors,
televisions and more.
You can water your plants remotely,
check the contents of your fridge while
out shopping; your home entertainment
system can switch your music to the
room you’ve just entered; and your smart
television can guess what you’d like to
watch. Even your toothbrush can now be
a ‘smart’ version, where it monitors your
use, and can help you implement a better
brushing regime!
IKEA are now selling a range of furniture
and accessories that enable wireless
mobile phone charging including a table
lamp and coffee table. Just leave your
mobile on the lampstand and it will charge
automatically and wirelessly.
Smart Cars
IoT technology has been used
within our cars for several years
now. Even low-end cars can now include
drive-by-wire systems that offer automatic
parking, and automatic braking. With
‘drive-by-wire’, sensors, together with
electronics and software, operate the
brakes, accelerator and steering through
cables rather than the physical linkages of
previous models. This enables the cars to
be lighter and safer, and to use less fuel.
The Audi RS7 has automatic parallel
parking where the sensors and software
take control of the vehicle and fit it neatly
into a space. In places where driverless cars
are permitted, it’s even possible to park it
remotely using an app from a mobile
phone and then get it to unpark and come
to pick you up where you’re waiting.
Automatic braking (collision avoidance)
uses sensors, ABS, lidar (light detection
and ranging) and cameras at the top of
the windscreen to triangulate speed and
distance. The system will warn the driver
and then operate the brakes for you to
avoid or lessen impact.
These new developments are hugely
exciting but they also bring their own
share of problems – not least the legal
ramifications. In the UK the driver is held
to be responsible for the behaviour of a car
and its passengers.
Sport
In the recent Rugby World Cup,
the England rugby team used
RFID and smart positioning sensors to
track every player in the squad, even when
training. Players wear a small smart device
in a pocket on their shirts (between their
shoulder blades). The devices accurately
track position, speed, acceleration and
deceleration. Data is uploaded to a coach’s
laptop where the entire training session or
game can be monitored and analysed.
Smart Products are making
life easier, safer and more
personally relevant.
Health
Smart products within the
health industry include trackers
and monitors that measure, record and
transmit information about a person. From
blood pressure and pulse rate to blood
glucose levels and pregnancy monitors.
Philips are developing devices and
systems that will monitor heart conditions,
diabetes, and chronic obstructive
pulmonary disease. Pilot projects are
showing very positive results in terms of
reducing re-admissions to hospital and in
operating costs.
There are also camera pills. The size of a
large vitamin pill, these can be swallowed
and the whole of the intestinal tract
photographed as it passes through. Much
less disruptive than endoscopies and
colonoscopies, the device from Given
Imaging, captures images at up to 36
frames per second. The Pill-Cam houses a
tiny battery, radio frequency transmitter,
two image sensors and circuit boards.
In addition an electronic patch that sticks
to the skin has been developed to monitor
pregnancies. It registers both maternal
and foetal heart rates and other subtle
condition changes including vital early
warning of premature births.
Using RFID tags on surgical instruments
and sponges means they are much less
likely to be left inside a patient during
an operation.
Transport
In Sweden IoT devices and
M2M (Machine to Machine)
communication are allowing bus
companies to monitor their vehicles,
number of passengers, maintenance
issues, location etc. This in turn allows
them to report exact expected times
direct to bus stop displays and mobile
phones. Using barcode readers and
electronic tickets speeds up boarding
times. Replacing on-board radios with
Internet protocols, and on-board CCTV
with IP-based CCTV, allows the vehicles
to be monitored in real time and video
footage of any incident is immediately
available. This helps with insurance claims
and also keeps travellers safer.
Retail
Several large retailers,
including Bloomingdale’s,
have set up smart changing rooms.
Customers can select and order
garments in different sizes and colours
from a tablet device in the changing
room. The goods are then selected from
the warehouse and delivered to the
changing room. Thus using IoT allows
the store to wow the customer with
exceptional customer service.
Other instances of the IoT becoming all
pervasive include the Hello Barbie doll
from Mattel. This Internet-linked toy can
hold a conversation with the child.
There are television sets that know
what you’re watching and can deliver
individually targeted advertisements.
We’re used to seeing targeted ads when
browsing the Internet as sites track where
you’ve been and what you’ve looked at,
now with the latest TV sets you can expect
to see targeted ads while watching repeats
of Morse, or the evening news. The same
TV sets will also monitor your watching
and suggest programmes you might like
to consider.
Agriculture
Cow collars have been in use
for several years now at the
most progressive farms. These collars
relay information wirelessly back to the
farmer’s central monitoring station and
the behaviour of each individual animal is
analysed by the software. In this way the
farmer can be alerted to a sick animal or
advised when an animal has come into
oestrus, or is ready to calve. All signalled by
subtle changes in behaviour that would
not necessarily be immediately obvious to
the naked eye.
Crop farmers are also using connected
technology to make their farms more
efficient. Soil samples can identify the
need for watering or fertilising and can
automatically turn on irrigation systems
or trigger the fertilisation routine. Being
able to respond more immediately to
these type of signals reduces crop failures,
increases yield and reduces the manpower
needed to run farms ■
VQ | The Internet of Things 17
NEST LEARNING THERMOSTAT
o THE NEST LEARNING THERMOSTAT
IS A SMART HEATING CONTROLLER
from the Google-owned company, Nest,
developed to save energy on heating or
cooling the home. The system is made up
of a well-designed, attractive thermostat
and the Heat Link which is fixed to the
boiler or air-conditioning system.
PHOTOGRAPH COURTESY OF NEST
The thermostat has its own display so you don’t have to use
an app to control it – though you can. A hidden sensor below
the display detects movement and automatically lights up the
screen when you walk past or wave your hand at it. The Heat
Link connects to your boiler and has built in WiFi to connect
the system to the Internet. An optional extra is the Nest Protect
Smoke/Carbon Monoxide detector which works together with
the heating system.
Nest call it a Learning Thermostat because it learns your
routines. For the first week or so you will turn the heat up or
down as you wish for your own comfort. The thermostat learns
when you get up, how warm you like it when you’re at home,
when you leave and turn it down, and when you go to bed.
Thereafter it will make the changes automatically for you. It also
recognises when the house is unoccupied and turns the heating
right down. You can always override the thermostat both from
the programmable display and remotely via the free app.
In the United States and other countries where temperatures
tend to be much more extreme than in the UK, the thermostat
controls both heating and air-conditioning to ensure you are
always comfortable.
The CO/smoke monitor, known as Nest Protect, can be linked
to the system so that if and when carbon monoxide levels rise
the system will automatically shut off the heating to stop it
generating more CO. At the same time it gives audible voice
warnings and alarms.
The system also incorporates knowledge of how long your
house takes to reach the desired temperature so it can switch
itself on at exactly the right time in advance of you returning.
Nest claim this close control means you use significantly less
energy heating your home. They quote independent studies
showing average savings of 10-12% on heating bills and
estimate the system will pay for itself within 2 years.
18 March 2016 | VQ VQ | The Internet of Things 19

The IoT
Ecosystem
Smart products are fine in themselves, and may enhance a traditional Individual systems could
product, add value or differentiate one supplier from another, but when be integrated into an
they are part of an overall solution, system or ‘ecosystem’, it can open overall city ecosystem,
up a traditional application or industry to create a much broader allowing local services
market opportunity. to make more effective

A
n obvious example of an IoT
Ecosystem is that of the ‘smart
city’. Individual smart products or
smart devices in the city might include:
■ Smart rubbish bins that detect when
they need emptying (and some can
even detect what has been put into
them).
■ Smart bus stops that monitor bus
movements and tell you accurately
when the next bus will arrive.
use of power, ease traffic
More sub-systems can be added flow and manage public
as needed so that the smart city
ecosystem grows and becomes even
services more efficiently.
more efficient and all-encompassing.
There are already smart cars that are
technically able to take advantage
of the smart traffic systems; how far
we integrate systems together is
currently governed mostly by legal,
business and ethical issues, not by
technical limitations.

■ Smart traffic lights that can detect traffic

flows, queues and traffic jams.

■ Smart street lights or lights in public

buildings/spaces that turn on when
they detect people.

Within a smart city ecosystem, these

individual systems (and many more) could
be integrated into an overall city ecosystem
which could allow local services to make
much more effective use of power, ease
traffic flows and manage public services
more efficiently. They could also allow
citizens to have access to information to
enhance their lifestyles, their journeys and
their work.
20 March 2016 | VQ
Agricultural IoT Ecosystem
A
n example of another potential IoT ecosystem is in
the farming/agriculture industry. The agricultural IoT
ecosystem starts with farm machinery that contains
sensors to monitor functions of the machine. Examples include:
■ Today’s tractors can monitor location (GPS), speed, direction,
fuel consumption, distance travelled etc.
■ Combine harvesters and other harvesting machines can
monitor the same functions, plus volume or weights of
materials harvested, moisture content etc.
■ Weather monitoring systems can monitor temperature,
humidity, wind speed and direction, pressure etc. and can also
link to weather maps and forecasting systems.
■ Seed drilling and fertiliser machines can monitor position,
speed, distance, flow of fertilisers, mix of fertilisers, area covered,
strength of product used etc.
■ Livestock tags can now include RFID and GPS trackers, so
farmers can track movement of their animals around the farm.
When farmers or vets administer drugs, nutrients or other
treatments to individual animals, all of the data can be collected
and linked to that animal.
VQ | The Internet of Things 21
IMAGE COURTESY OF JOHN DEERE
The Health
Ecosystem
O
ne of the areas that presents a massive opportunity is the
ecosystem that is currently being developed in the health
and wellbeing industry.
The health industry has of course been using devices to monitor
health for many decades. From the simple temperature, pulse and
blood pressure measurements to the more complex heart and
blood chemistry monitoring, various forms of scanning etc. – the
applications for individual smart products are vast.
Add to that a wide range of new smart products for the consumer, Due to the
the local GP, individual health specialists etc. and the range of complexity of our
health-related products is vast. Some examples include:
health service,
■ Consumer health monitors: Quell Relief is a pain relief band Currently in the UK, there is no single
worn just below the knee. Electronic stimulation of the nerves technical challenges,
health ecosystem. Individual health
in the calf send signals to the brain that triggers the natural pain and security and authorities or GP practices may have
Increasingly manufacturers Traditionally, relief response. The monitor tracks therapy applied and sleep their own systems but because of the
ethical issues, there
individual quality to an associated app. Another consumer health monitor complexity of our health service, the
need to ensure that their manufacturers add is no single health
is Valedo Therapy – gamified back therapy for home use. A small technical challenges involved, the
products and systems can smart functions sensor is worn on the chest and a second sensor in the small ecosystem in the UK. security and ethical issues surrounding
integrate to an overall to their specific of the back. The associated app directs you through a series of the use of our private health data, and
products and so bends and stretches to achieve success in a computer game many other issues, we have no single
farming ecosystem they enhance while gently exercising your back and relieving your pain. health ecosystem. But of course many
their product and organisations are working on it. It’s probably the ‘holy grail’ of IoT
■ Consumer lifestyle/activity monitors: These are the fitness
service to the ecosystems in that the opportunities it presents are truly massive
wearables such as Fitbit, Jawbone and Garmin devices. The
farmer. But increasingly, the manufacturers and potentially life-changing. And of course any health ecosystem
devices monitor physical activity, heart rate, distance and speed
must also ensure that their products/ can extend into lifestyle, diet, behaviour, work, stress etc. – where
travelled, calories burned and more. Your exercise history is
systems can integrate to an overall farming would this ecosystem actually end?
stored so you can see your progress over time.
ecosystem, where all products and systems
■ Private practices/clinics: The Vital Connect patch monitors a
can be exploited together.
range of vital signs such as the Oxygen and CO2 levels in your
Manufacturers such as John Deere may fi blood, your temperature and your blood pressure. Your carer,
nd themselves going beyond the who could be a close family member or a medical support Manchester’s Health Ecosystem brings together providers and
functions of their individual machines team, is alerted when any of the readings are significantly commissioners of health and social care, world-class academic research,
and adding capability to integrate with unusual. Another recent device is the iTBra from Cyrcadia city-region government, patients and citizens, major international
weather systems, climate systems etc. This Health. This is an insert to be worn for 12-24 hours within companies and innovative SMEs, in a long-term partnership committed
might not only give them a competitive the bra. It is equipped with several temperature sensors that to: ‘making Connected Health Happen’.
edge over others, but it might actually measure the heat output from different areas of the breast and
open up brand new business services measures any changes in temperature. Using this information it More details from:
that go far beyond the sale of the is possible to detect breast cancer much sooner, and much less www.informatics.manchester.ac.uk/mhealthecosystem
traditional machine. invasively than by the traditional mammograms.
Implications for Business Sensors
Data capture and real time monitoring Tiny devices that can be built
■ Efficient, intelligent operations into a vast range of products.
■ Global reach and presence The sensors can detect/monitor:
■ New business models ■ Light
■ Diversification of revenue ■ Heat
■ Movement
■ Position
Picture courtesy of news.silabs.com ■ Pressure
■ Proximity
...and many more

Security
A new age of complexity,
threat, potential impact Re-thinking
■ Data security
■ Data privacy
your Strategy
■ Device protection
■ System protection Vast range of new business Threats to existing:
■ Standards opportunities: ■ Business models
■ Legal framework ■ Sensing as a service ■ Products
■ Policy ■ Smart products ■ Services
■ Connectivity ■ Industries
■ Big Data
■ Ecosystems

Big Data
Technologies, infrastructure,
Smart Products
structured databases, analytics,
Products from all sectors that have
data as a service, business
been modified/developed to include
intelligence, analytics, visualisation.
IoT sensors and IoT connectivity:
■ Transparency
■ Smarthome
■ Experimentation
■ Smartcar
■ Optimisation
■ Smartoffice
■ Segmentation
■ Decision algorithms
■ New business models

The IoT
Ecosystems
Internet of Things Networks Connectivity
A system of systems. Interconnected Network Type Network name Who’s behind it? Is it IoT specific? Average range Power consumption Data rate

Ecosystem
networks of products, data, services, Mesh Network Zigbee The Zigbee Alliance Yes 30-60 feet Low 40-250 kbps
Z-Wave Z-Wave Alliance Yes 100 feet Low 9.6-100 kbps
standards, communities, providers. Thread The Thread Group Yes 100 feet Low 250 kbps
Data capture and
Bluetooth The Bluetooth Special No 20 feet Low Varies from 0.5 -3 mbps real time monitoring
■ Smart cities Interest Group

■ Agriculture Internet Network WiFi WiFi Alliance No 100 feet High 54-600 mbps
■ Efficient, intelligent operations

■ Health
Ethernet Institute of Electrical No N/A High Up to100 gbps ■ Global reach and presence
and Electronic Engineers
■ New business models
Long-range 3G/4G International No 1 mile High 3G averages 1-4mbps
Network Telecommunications Union 4G averages 4-8mbps ■ Diversification of revenue
2G International No 1 mile Low 500 kbps
Telecommunications Union
LPWAN Various Yes Up to 30 miles Low Varies from 100bs to 50kbs

Source: Business Intelligence

24 March 2016 | VQ VQ | The Internet of Things 25

Harmonic Software Systems is

an embedded services company
providing software development
for embedded devices in multiple
industries particularly avionics
and automotive where security
and robustness are paramount.

MANAGING DIRECTOR, Ed Liversidge,

explained that embedded systems

VISTAGE CASE STUDY can be included in any product from

photocopiers to helicopters through to Company A’s devices can’t talk to Company

Ben Wales
fridges and power stations. He described B’s devices or Gateways. He sees the
an embedded system as where a computer immediate future as a jockeying for position
chip is included inside a product and there amongst the industry leaders similar to

3gamma
3gamma is a leading IT management consulting firm providing more efficient
cleaning services. This
operating globally from offices across the Nordics and
will enable them to offer
the UK, providing independent advisory and consultancy
more effective versions
services to many industry-leading companies. of their services and
to add new services of
VISTAGE MEMBER, Ben Wales, MD of 3gamma UK, shares
value to their clients.
his views on the Internet of Things and what business
Much of 3gamma’s work
leaders need to be considering to be at the forefront of
these changes. involves working closely
Analytics and Wales recognises the data privacy
challenge of IoT enabled devices and
smart information
also suggests a further major challenge
are increasingly
is how companies will manage the
important.
volumes of data being collected.
Companies need to Analytics and smart information are
understand how increasingly important. Companies
is often no input device. You may not even
realise the chip is there, however, it is part of
the smooth functioning of the item and can
give you extra functionality.
One example of this is an aircraft where the
embedded system helps the pilot fly the
plane. These systems need to be very robust
as the freezing or crashing we’ve become
used to on our PCs would imperil the aircraft
and everyone on it.
When asked what he saw as the future of the
Internet of Things, Mr Liversidge explained
that IoT is still in its infancy. At present one
of the big issues is a lack of interoperability.
the VHS/Betamax clash in the early days of
video. In due course standards will be set
and communication protocols developed
so that the IoT can be fully integrated and
connected and not become the Internet of
Different Things.
Liversidge sees the greatest opportunities
within IoT as being security and data analysis.
When you come to design your own
IoT systems his advice is to start with
security. Once you start connecting different
systems into an interconnected system
the potential for destruction and damage
mushrooms exponentially ■

He suggests that IoT and related technologies will have a big

impact on all businesses and a company’s ability to manage,
develop and operate these new technologies could be the
difference that allows for survival, competitive advantage
and, potentially, huge success.
“IoT creates new
markets and new routes We must be ready to disrupt our own
into existing markets businesses. If we don’t then competitors
– the opportunity is and start-ups likely will.
huge. For established
businesses, an early
challenge is to cut
through the rhetoric to understand what the IoT means for your
organisation and its products, services and customers.” he said.
He continues by explaining that IoT can have an impact on
all businesses especially companies that are product based or
which operate physical assets in the provision of their services.
For example, 3gamma works closely with COOR, a leading
facilities management company in the Nordics, who are
investigating how they can use intelligent sensors to track
and manage energy use in buildings, waste management and
with clients to ensure
their IT organisations
their IT will be able
to generate the
need to understand how their IT will be
able to generate the insights needed to
p
enable business decisions. ED’S ADVICE to companies looking to embrace IoT is
have the maturity, Insights needed to to address a series of questions:
flexibility and ability to “It is not just product companies that
enable business
successfully deploy and will be impacted by IoT, all companies
decisions. ■ What is our product?
integrate IoT and other have the ability to utilise IoT technologies
to gain a competitive advantage and ■ What space does it fit into?
disruptive technologies
alongside traditional be a disruptor to their industry. IoT will ■ What do we want from IoT?
IT. For example, new make products smarter but it will also ■ What will be the advantages and benefits for the
sourcing approaches enable smarter business operations and end customer?
are needed to ensure decisions and create the potential for new
the client always has the business models.” he states. Having answered those questions and determined there is a business case you
need to figure out all the different pieces of data you will need and where and how
right mix of internal and He offers this final advice: “We must be
you will collect those pieces of data.
external competencies, access to a flexible resource pool, ready to disrupt our own businesses. If
cost efficiency and scalability. The key to successfully utilising the IoT will be what you do with the data. Will
we don’t then competitors and start-ups
you be predicting behaviour based on past experience, or identifying what is
3gamma’s client Husqvarna, well known in the UK for its Flymo likely will. New connected services and
happening right now and deciding what to do about it? For example, when there’s
and Gardena brands, has successfully applied IoT innovation products will replace what we have today.
an accident on a motorway there’s an immediate problem, traffic needs to be
in its range of connected robotic lawnmowers. Alongside Companies that sold products in the slowed and re-routed. Alternatively, if you know that motorway is always very busy
a host of intelligent features (themselves built on disruptive past will be able to add smart sensors, at a particular time of day then a percentage of the traffic can be re-routed to even
technologies), each mower can be controlled from anywhere gain access to data and be able to use out the load on all the roads making everyone’s journey easier.
and constantly communicates its activity and any problem this to sell new services to customers, not What data do you have? What data can you collect? And what can you do with
such as an approaching need for spares and maintenance. just products.” ■ that data?
26 March 2016 | VQ VQ | The Internet of Things 27

Hacking a Jeep

Security and Privacy Concerns A FRIGHTENING, and potentially

lethal, security breach
was
of cars made by the Fiat Chrysler
Automobile group since late 2013.
to accelerate. To regain control of
the vehicle he had to switch the car

in the Internet of Things

With estimates suggesting there will be 50 billion
demonstrated by two computer-
security researchers in July 2015, when
they were able to take control of a Jeep
Cherokee as it was being driven on an
American highway (it was a managed
hacking demonstration, so the driver
Have you ever looked at a typical license agreement? was fully aware of what was going on).
The system allows owners to carry
out functions such as remote
starting of the vehicle, unlocking the
doors and flashing the headlights
using an app.
Using a laptop and a mobile phone,
the hackers were able to blast the air-
off completely and restart it. Later
in a deserted car park the hackers
demonstrated taking over the steering
and driving the car remotely.
While the US FCA have released
a security update, the wider
implications are extremely disturbing.

PHOTOGRAPHS COURTESY OF ANDY GREENBERG/WIRED

Internet of Things devices by the year 2020, and almost
daily news bulletins covering hacking, the security and
privacy issues surrounding our world of technology are
becoming a matter of ever greater concern.
p Anyone who uses an Apple iphone has automatically consented to Charlie Miller and Chris Valasek, conditioning, turn on the radio at full If two cyber-security researchers can
a wide range of data being collected and used by Apple (see http:// were able to hack the car’s systems
volume and operate the windscreen hack into the vehicle what could
www.apple.com/legal/sla/docs/ios6.pdf ). through a loophole in the Chrysler’s washers. Meanwhile the driver was cyber-attackers do in the future by
p Anyone who uses Facebook has consented to Facebook not only Uconnect system to access the car’s exploiting security breaches to cause
unable to exercise any control over
collecting data about you and what you do through Facebook, but controls remotely and take over all

T
here have been high profile cases reported in
the media of cars being hacked and remotely
controlled, and of baby alarms being hacked so
would-be burglars could monitor the home and
discover when the family were away. At the same time we’ve
become used to receiving phishing emails and other scams
in our inboxes on a daily basis.
Threats from potential hackers, intruders, criminals and
so on, threaten all aspects of our technological life. But
the security and privacy risks are not limited to situations
that involve criminals.
It has become a de facto standard for software providers,
manufacturers of mobile phones, wearable devices and all
other types of technology, to give you access to their systems
only if you acknowledge and accept some form of license
agreement – usually involving pages of small print.
■ The economic impact of the Internet of Things
will be measured in $trillions.
■ The number of connected devices
will be measured in billions.
■ The resultant benefits of a connected society are
significant, disruptive and transformational.
■ Yet, along with the opportunity, there are fears and
concerns about the security of IoT systems.
■ The international IoT Security Foundation (IoTSF)
has been established as a response to those concerns.
See h ps://iotsecurityfoundation.org/
also to Facebook collecting copies of the data, images, messages etc.
that you post through Facebook (see https://www.facebook.com/
about/privacy/).
p Similar agreements exist for all smart products – by using the
product you are agreeing to the collection and possible use of data
related to your use of the product.
This might be OK and of very limited risk if that was it, but the whole
point of the IoT is that once data is collected by a sensor or smart
device, it is then transmitted or shared within some form of IoT
ecosystem. That may then in turn be part of a larger ecosystem and
so on. Even that might be OK if you’re not really bothered about who
knows your tooth-brushing regime! But what if your mobile phone
tracked the fact that you visited a McDonalds restaurant five times
a week? What if data collected indicated that you were drinking too
much or that your pulse rate or blood pressure indicated an underlying
problem? The information might be very useful to you, but it could also
be used by others against you. Insurance companies could suddenly
increase premiums or withdraw cover altogether. And of course
in the IoT it’s not just people that could exploit your data, it’s
about machine-to-machine communication; it could be about
systems making their own decisions based on data they have
access to.
So with the IoT it’s not just about security, it’s about privacy and
who gets to use or leverage data that you generated.
It’s also about the ‘not-so-obvious’. Hacking or phishing are
attempts to break into computer-based or physical/social
systems – usually focused on breaking into business or personal
systems. The IoT brings new security risks, from equipment that
most of us assume presents no risks at all, for example:
p Many of us now have printers at home or in the office that
operate via WiFi. They’re also digital printers, in that every page,
word, image, photo is printed (or scanned) from a digital form.
With the right equipment, your WiFi printer could be hacked
directly, and others might be able to copy and download every
page you have printed or scanned – scary?
p Many of the latest cars are also WiFi enabled. Many also have
various forms of driver assist (eg. parking assist, lane assist,
collision avoidance etc.). All of these involve IoT technologies
– sensors, digital data, software and digital motors or pumps
to move things, control the steering, brake etc. So your car
is now vulnerable to hacking not only so someone can
steal your car but they could actually drive it remotely (see
‘Hacking a Jeep’ story).
those functions. Having had a little
the car’s functions. fun, the hackers then cut the engine
leaving the driver (Wired reporter, Andy
The Uconnect system has been
Greenberg) coasting along unable
installed in hundreds of thousands
So what are the key risks and what can you do to manage the risks?
INFORMATION SPECIALIST Andrew Rose outlines the evolution of
the IoT and describes how security risks could increase at each level.
STAGE 1 is the personification of dumb objects. Each object is uniquely
identifiable and able to interact with intelligent systems such as an app on
your Smartphone or a web based system. One example is BMW’s ‘smart’
car keys that don’t have to be taken out of the pocket to allow the car to
start. These devices have been subverted and vehicles stolen.
STAGE 2 is partially autonomous sensor networks. In this stage the objects
are able to sense their surroundings and other devices. The devices can
then take limited action based on the information. An example of this type
of system is a home thermostat that adjusts itself via an app or by being
aware of the homeowner’s location and proximity. If these systems are
compromised then it could theoretically be possible for hackers to switch
off a whole country’s electricity supply with catastrophic consequences.
STAGE 3 is autonomous independent devices. At this stage the devices
will not require an app or web service to function. They will be able to
autonomously interact with other sensors and services without any human
intervention. An example would be drug dispensers that automatically
dispense medication in response to conditions sensed within the human
body. Malicious tampering with that kind of system could easily lead to
overdosing and death.
How are the IoT privacy and
security issues being regulated?
Technology is outstripping our ability to legislate for security and privacy.
In the EU current privacy rules were drafted from the position that one
single provider of a service collects data from users for a particular
purpose. Increasingly Big Data is upsetting that standpoint. Big Data is
collating information from multiple different sources for multiple different
purposes, many of which have not been determined at the point of
data collection. The interpretation of collated data could easily lead to
unintended privacy breaches.
traffic chaos or fatal ‘accidents’?
www.wired.com/2015/07/hackers-
remotely-kill-jeep-highway
The EU institutions are attempting to create a General Data Protection
Regulation to give a harmonised framework across the EU in tackling the
areas of concern. This is expected to come into force by mid-2017.
The initial recommendations to be considered include:
p Performance of Privacy Impact Assessments prior to the launch of any
new IoT application. This will require standardisation bodies to develop
encryption and communication protocols.
p Privacy by design and by default principles should be applied. This
would include the device automatically disabling wireless interfaces
when not in use, minimise the amount of data collected, and ensure
default settings keep data private unless specifically altered by the user.
p Users should be in control of the data so users should have user-friendly
ways to opt out and to modify data before it is transmitted with no
penalisation or service degradation for those who so choose.
p Transparency – consent information clearly available not hidden in
Policies and Procedures pages, clear communications by design and
clear information to users when in the presence of IoT devices that
collect data.
p Portability – clear and self-explanatory data formats for portability and
interoperability with raw and aggregated data in a standard usable
format.
p Minimisation – raw data to be deleted once required data has been
extracted, as few strong identifiers as possible to facilitate anonymisation.
So what should business leaders being doing?
If only there was a simple answer! This area changes so quickly. The key
thing is to get involved; put security at the centre of your strategy. You
can join organisations involved in developing policies, strategies and
solutions at the IoT Security foundation, a not-for-profit organisation set
up specifically to explore this area: https://iotsecurityfoundation.org
www.wired.com/2013/01/securing-the-internet-of-things
28 March 2016 | VQ VQ | The Internet of Things 29

AVNet Embedded is a small business unit within AVNet the global

technology company. AVNet Embedded was created to serve leading
industrial equipment and device manufacturers who need to develop
smarter devices for their end customers.

ASHLEY SHONE, Computer Solutions it stops. When a forklift breaks down an

Engineering Manager for the UK and
Europe, explained the company works
with their customers to develop
technology solutions and smart products.
VISTAGE CASE STUDY At one end of the spectrum they are
engineer comes out and runs diagnostic
tests to determine the fault, orders parts,
and makes a second visit to fit them and
repair the forklift.
Once the equipment is IoT enabled, the

Julian Ranger
a supplier of components, displays, information from the main control unit is
software and related items with the sent through a gateway to the cloud and
Consumers are not customer building their own devices. interpreted by intelligent software. The
someone you sell to,

Digi.Me
Digi.M e are tackling the Internet of Things in a
different way to most other companies. Looking at the
major problems standing in the way of the wholesale
application of the IoT they have determined a solution.
ACCORDING TO VISTAGE MEMBER, Julian Ranger, Founder
and Chairman of Digi.Me (and supported by other independent
sources such as McKinsey Global Institute), two major problems are
standing in the way of wholesale acceptance of the Internet of
Things in the consumer space.
The first is personal privacy. People are unhappy with the way they
are spied on and tracked and then blasted with adverts wherever
they go on the Internet. To fight back many users are installing ad-
blocking software. Added to that are the high profile cases of data
being hacked such as the recent security breaches at TalkTalk and
Ashley Madison.
Individuals are Collate your own data and choose who you
getting more and
share it with – it’s better for you and better
more concerned
for the companies marketing to you.
about what
companies know
about them and
what those companies are doing with the data. Consequently they
are less and less happy about sharing anything and without data
sharing there will be no IoT in the consumer arena.
The second problem standing in the way of the Internet of Things
truly taking off is the issue of interoperability. Manufacturers all have
their own way of communicating with their own devices and those
devices don’t use the same formatting or data protocols as other
manufacturers use so they cannot communicate with each other.
Effectively they speak different languages and don’t understand one
another, yet the whole premise of the IoT is the ability of devices to
communicate with each other to improve the end user experience.
In addition, the information that is currently being gathered by
tracking software and input forms tends to be of poor quality, may
be out-of-date, and may be irrelevant to the person being tracked.
For example, a journalist might research many different areas
during the course of his work but not be interested in making any
purchases in any of those areas himself. The data is expensive to
gather and not hugely effective to use and using it can alienate the
desired prospects.
The Digi.me solution to these problems is what Julian refers to as
the Internet of Me. Using a small app downloaded to your PC or
mobile (coming shortly) an individual can collate all their own data,
securely, on to their own device or into their own secure cloud area.
The individual is then in control of who they share that data with,
and how much of the data they share. Companies wanting to market
to individuals have to present a compelling value proposition in
exchange for the data they request. The individual can then choose
to accept that value proposition and share the data, or not.
The Digi.Me software also “normalises” the data from different
sources making it easily available to any other device. In effect the
translation has been done for you getting over the interoperability
problem. Any external app or device only needs to understand the
Digi.Me formats.
This has several benefits for both the end users and the companies
trying to market to them. Individuals are happier because they are
in control of their data, how it is used and how much is used for how
long. The data itself is much richer than data scraped from tracking
software and input forms. It will be up-to-date and relevant to that
individual. In addition, where someone has voluntarily shared their
data with an organisation they have signalled an interest in the
value proposition – these people are much better prospects than
someone who has just been targeted as a result of their Internet
browsing history.
Ranger’s advice for businesses wanting to get into the Internet of
Things space and sell to end consumers is to start thinking of those
but someone you
engage with. While
you are in the product
development stage
consider how you can
ensure the consumer
has understanding
and control.
consumers in a new way. Consumers are
not someone you sell to, but someone you
engage with. While you are in the product
development stage consider how can you
ensure the consumer has understanding
and control, because both are vital to a
successful relationship between a business
and its customers. At the same time you
will also need to consider the latest EU
legislation regarding data minimisation,
right to be forgotten, informed consent to
use the data, and more.
According to Ranger, personal control
and storage of an individual’s data by the
individual has to be the way forward – it’s
better for the individual, and it’s better for
the companies that are trying to sell to
those individuals. And while it may take a
few more years to get there, Digi.Me is at
the forefront of development in this area.
You can find out more and download the
Digi.Me app to store your own social media
data today from the digi.me website ■
At the other end of the spectrum are software recognises the machine is running
customers who have an idea, they come too hot, or is vibrating outside of the optimal
to AVNet Embedded with a concept range and can flag up the need for an
and the company will then design and engineer visit and exactly what the problem
manufacture the devices from scratch. is so the engineer can attend with the
An example he cited was a forklift truck correct replacement parts. This saves down
company. Before IoT the main control time and results in fewer maintenance visits
unit within the forklift knows what’s going that can be scheduled to be least disruptive,
on with the machinery but that’s where saving costs at every stage.
p
SHONE’S ADVICE to companies considering entering
the IoT space is to ask a series of questions:
■ How do I connect up?
■ Why do I connect up?
■ What does not connecting cost me?
■ What does success look like?
What success looks like is the ultimate goal and will differ depending on your
business. The goal will probably be to make savings in some area of your business
so you’ll need to consider where your costs are coming from. For example, a logistics
company might see success as saving 5% on fuel bills, where a lorry manufacturer
would see success as reducing maintenance costs.
You need to have a business case, an end result, and know what you have to
connect to achieve that result.
Shone described how the basic technology for the IoT has been around for 20+
years but what’s different now is that the costs have come down massively. Where
previously systems and devices had to be developed from scratch for each project,
there is now a base of open-source software that will accomplish 60%-70% of
the requirements. At the same time the cost of sensors has come right down to
just a few pennies each. The development of the individually tailored portion of
the project is still complex so it’s important to partner with the right companies.
Consider whether your partner companies have the infrastructure to support you
for the next 5-10 years so you’re not left on your own once the system is completed.
The keys to success for an IoT project are to be clear about the desired outcome and
to choose the right partner companies to assist with the design and implementation.
30 March 2016 | VQ VQ | The Internet of Things 31

BIG DATA Milton Keynes to

Demand for Big Data staff is
expected to grow by 92% over
the next 5 years.
(e-skills UK: Big Data Analytics: An assessment
of demand and labour skills, 2012-2017)
So we have a lot of data
– so what?
DIFFERENT INDUSTRIES and different organisations will
use Big Data in different ways. For some it will be clinical
readings from sensors, for others it will be social media
conversations. As you can see there can never be a “one-size
fits all” way to process, analyse and make use of all this data,
but without being able to aggregate and analyse the data
effectively, it is of limited value.
Data analysis can lead business to discover patterns and
One of the outcomes of the growth of the IoT is the massive growth of collections of data. Think
knowledge that were not visible previously and this in turn
about it. Everything from your toothbrush, to your car, to every printer/copier etc. is collecting and
Become a ‘Smart City’
A consortium led by the Open University and including Milton
Keynes Council and a number of technology companies is
aiming to transform Milton Keynes into one of the world’s
‘smart cities’ – a model for how Information Technology and
data analytics can be used to drive sustainable growth.
“This exciting project will not only directly
benefit Milton Keynes, but will also demonstrate
ways forward for other cities right around
the world.” Martin Bean, during his role as
Vice-Chancellor, The Open University.
The £16 million MK:Smart project will use
‘big data’ to develop new and smart ways
to manage key infrastructure elements
such as water, transport and energy
supplies. A smart city is one which is able
to provide sustainable solutions to core
issues including transport, health care,
governance, economic development and
quality of life. Typically these solutions
rely on intelligent use of information and
communication technologies.
The MK consortium plan to use data from various different sources including satellites,
local authority, and even crowd sourced from social media and apps collected
together in a central hub where they will be analysed to find smart solutions.
Milton Keynes is a city where mobility is a big problem for those without their own
transport. The project is focusing initially on providing better transport information,
for example, when the next bus will arrive and how full it is.

p
can lead to new business models to exploit the Big Data Another issue for Milton Keynes is water use. Situated in one of the driest regions
probably transmitting data – 24/7. A year’s supply of data from your own personal toothbrush opportunity. To take a simple example, think about the smart of the UK and growing rapidly, water consumption needs to be closely controlled.
might not be that useful on its own, but if you had that data from over a million toothbrush users toothbrush. It seems trivial to collect and store the brushing Analysing the data can identify patterns of consumption which then allow for
you might be able to see some signifi cant trends, behaviours and other insights from looking at habits of an individual. The immediate business value the data provision of tailored advice for saving water, or data regarding soil moisture status
brings is knowledge about how often the person brushes, for and long range weather forecasts can trigger a local hosepipe ban.
the ‘big picture’. Combine that with other data sets (eg. lifestyle, diet, fi tness activity etc.) and you then
how long etc. Some smart toothbrushes also monitor how At the same time, as part of a separate project, driverless pods are being trialled in
have an even ‘bigger picture’ of the lifestyles and habits of people. This is an example of Big Data. you brush, whether you have spent enough time on certain Milton Keynes using pavement routes. Initially three electrically powered pods are
teeth, whether you have pressed too hard etc. So you could being tested within the pedestrian areas of the city.
certainly use this data to educate the user, and improve their
The Internet of Things with its billions of connected devices is generating multiple terabytes (1012 bytes) of data every brushing habits. You could even predict when they would The vehicles are equipped with 22 sensors including cameras,
day. According to IBM1, Big Data is characterised by the ‘Four Vs’ – volume, variety, velocity and veracity. run out of toothpaste, when a new brush head would be radar and laser detection sensors to enable them to recognise and
needed etc. and so you could go on to supply these products, avoid hazards such as pedestrians, bicycles, traffic and kerbs. Each
making life easier for the user.
VOLUME VARIETY VELOCITY VERACITY pod can seat 2 people and has a maximum speed of 15mph. During
But now collect the same data from a million users. Combine
The volume of ddata is The data being generated comes in a The data arrives at speeded and is often That is the uncertainty of the data.
that with data about where they live, what type of life they
the trial period the tester must be in the vehicle and able to take
incomprehensible, with 2.5 quintillion
incomprehens mixture of structured and unstructured real-time data. Modern cars have 30% or more of business leaders
bytes
ytes being created
c every single forms including 400 million Tweets almost 100 different sensorsors that questioned said they don’t trust the lead. Suddenly you might be able to see trends in the data control at all times.
dayy – that’s approximately 2.5 x 1018 sent each day and over 4 billion hours monitor fuel level, tyre pressure,
ssure, engine
en information they use to make decisions. that tell you about habits of certain types of people, habits Pete Marland, leader of Milton Keynes Council was very enthusiastic, “It is fantastic
bytes. According to Cisco, the number of of video watched
tched on YouTube every temperature and more reporting If you are relying onn data to m
make that vary depending on where they live, whether they are that Milton Keynes is at the forefront of this global technology race. Our aim is to
connected devices is set to grow from month. Some
me of this data lends itself back to the driver. To avoid us being decisions you want to be sure it is as in a hard water area etc. Now you could market or sell to
today’s 14 billion to 50 billion by 2020 more easily to mac
machine analysis than overwhelmed, most of the information certain as possible. show that they can work as a means of public transport with people able to use their
those people certain products or services, because you have Smartphones to order a pod. These trials are bringing us one step closer to having the
which will have generated an estimated ther types of da
other data. that is collected is only highlighted to
data which confirms or predicts what they would need/use.
40 zettabytes (40 x 1021 bytes) by that the driver when there is a problem. pods as part of everyday life in Milton Keynes.”
time. The scale is simply staggering. It might sound scary, but it opens up all sorts of business
opportunities – and that’s just from a smart tootbrush! www.telegraph.co.uk/technology/news/11866132/First-self-driving-pod-unleashed-on-Britains-roads.html
32 March 2016 | VQ
Big Data then is perhaps the
biggest IoT opportunity of all,
because it opens up all sorts of
opportunities to sell products,
service, know-how, and value.
p
Big Data will help companies create new value
streams, reduce time to market and respond
more quickly to customer needs. It will also
radically improve market agility and enable the
monetisation of additional services. Access to data at all
points along a supply chain will allow companies to make
on-the-fly decisions regarding logistics, pricing, support
and deployment.
Businesses will need to rethink the function/value creation
through IoT and Big Data.
What’s driving the changes
to business models?
p Digital signals can be transmitted perfectly without any
loss of information.
p Digital signals can be replicated indefinitely.
p All this can be done at virtually no cost.
As an example of how the IoT and Big Data can transform
a business, look at the GE Wind Turbine division. GE sold
wind turbines and associated equipment to energy supply
companies. When demand for power increased the old
business model suggested GE should try to sell more turbines.
The new business model was to invest much less money in
equipment that connects all the turbines through software
which delivers real-time analytics and allows for dynamic
control. GE creates value by using the data generated by
the turbines to optimise performance. It derives revenue
by charging a percentage of the energy supplier’s increased
revenue. So GE now derives more value, with less effort from
simply exploiting the Big Data it has access to.
Analysis of the data is key to utilising it effectively. Economist,
Tim Harford 2, writing in the Financial Times, highlights a
fundamental flaw in much Big Data analysis – Correlation
does not equal Causation. He cites the example of Google
tracking flu outbreaks across the US by analysing search
terms. Initially Google was able to identify the spread of the
disease more quickly than the Center for Disease Control and
Prevention. After a few years Google started to get it wrong –
there were false positives because people were researching flu
symptoms when they didn’t have the disease. How you
analyse the data and the conclusions drawn from it need to be
very carefully considered.
The possibilities that Big Data brings us are enormous. We can
understand our customers better. We can discover what they
do with our products. We can look for patterns. All this will
help us to market our existing products more effectively and
help us plan future developments to fi ll the perceived gaps in
our current offerings.
In order to utilise the data effectively is must be gathered and
analysed with decisions being made on the basis of that
analysis. To do that requires the analyst to recognise what is
interesting and useful and what is just ‘noise’. Once the data
has been thoroughly analysed (and combined with other data)
it can be exploited. Business models can be changed, different
avenues explored and even different products developed.
Potential problems
of Big Data
■ Storage
The multiple zettabytes of data need to be stored somewhere.
Often this is ‘in the cloud’ however, the cloud is made up of
banks of real computers that are based in data centres across
the world. The hardware has to physically exist, be secure and
be maintained.
■ Speed
When there is a necessity to move fast as a result of the
information being received then the analysis and reporting
must be fast. And the systems must also be able to cope with
real-time input at speed.
■ Security
Data must be kept secure from cyber attacks and misuse.
Personal privacy needs to be considered. And not just in the
way the data is stored but also in how it is used.
1 http://www-01.ibm.com/software/data/guardium/secure-big-data/
2 http://www.ft.com/cms/s/2/21a6e7d8-b479-11e3-a09a-00144feabdc0.html
Businesses will need to rethink the
function/value creation through
IoT and Big Data
VQ | The Internet of Things 33
Review your business to take
advantage of IoT and Big Data
Leveraging the opportunities presented by Big Data involves going back to basic principles and
being open to thinking outside of your normal constraints or business/industry limits. Some key
things business leaders should consider/explore:
4
1 Look at your existing products, services
and procedures. What processes could be
digitised in some way so that all sorts of data could
be collected? Consider how Uber has transformed taxi services
by digitising everything – reservations, tracking, billing,
Go back to fundamentals. What would your
customers do if only they could? What different
decisions would they make if they were better
informed? How could you capture or identify issues, trends,
behaviours? How would you present that information, how
customer service, driver performance, and ratings. Which of would you convert it into a new product/service?
your processes are most problematic to either you or your
5
customers? Can they be digitised to iron out the problems?
Who else would stand to benefit if
they had access to information that is currently
2
View data (yours, your suppliers’, your customers’, hidden or not available? How could you leverage
your market etc.) as an asset. Start to think
about its value, its use, its protection, its life span.
the IoT and Big Data to make the impossible possible?
3 Look across companies and across
industries to see if there is synergy and
where you can add value, or where you
could combine your own data with other data. For example,
6 Think about specific Big Data opportunities
and threats.
Nest not only controls the in-house thermostat, it also
connects with public utility companies to share data and
optimise energy use. What IoT ecosystems could you build,
join or leverage to collect and leverage the Big Data?
7 Build up your capability to build a data-
driven organisation.
Big Data: The next frontier for
innovation, competition and productivity.
McKinsey Global Institute.
34 March 2016 | VQ
Think the IoT doesn’t apply to your industry?
Many businesses think that the IoT may not affect them.
Here is just a small selection of IoT applications in different industries.
Agriculture
In 2050, the world will need to produce
70% more food than it did in 2006 to
feed the growing population (according
to the UN Food and Agriculture Organisation). To meet
growing demand, agricultural companies are turning to the
analytics and increased production capabilities the IoT can
provide. Applications include sensors to monitor soil acidity,
temperature and other variables to improve yield, connected
farm machinery and satellite and drone images to track
progress and yields.
Financial services
Retail banks are looking at beacon technology
to improve the in-branch customer experience
and cut costs. Applications will include sending
customers personalised offers as they enter a branch and
sending information about the customers to the tellers for a
better customer service. Some Automated Teller Machines
(ATMs) already provide a live-stream video of a teller for
additional customer support.
Healthcare
Connected devices can collect data and automate
processes in the health arena. The data can be
aggregated and used for research and on-going
patient care. At the same time individual users can be monitored
in real-time with diagnostic information being fed back to their
medical support team. Fitness trackers also have a vital role to play
in data collection and health monitoring in the population at large.
Infrastructure
The growing population and increased
urbanisation is leading cities to connect their
public infrastructures to deploy services more
efficiently and improve the quality of life of the inhabitants.
Applications include connected cameras monitoring high
crime areas, connected traffic lights to smooth out the traffic
flow, and connected streetlights helping to save energy and
associated costs.
Think again.
Connected
home
Connected devices within
the home are expected to more than double
over the next five years with connected
devices expected to outnumber non-
connected devices by 2030. This growth
is driven by the manufacturers wanting all
their devices to be connected, and by the
youngest generations who are growing
up with connectivity and will demand
that connectivity as they become adult
consumers. Applications include connected
light bulbs, heating thermostats, home
entertainment and home security.
Food services
Companies throughout the food supply chain are using IoT to reduce
food waste, cut back on employees and improve the quality of food.
Sensors and connected testing kits can check on food quality and refrigeration
temperatures throughout the food journey. Tracking tags in the packaging identify
where the food is in the supply chain and ensure all food is as fresh as possible. In
addition restaurants and supermarkets are using digital signage to change prices and
make special offers in real time.
Hospitality
The hotel industry
is at the forefront of
IoT adoption with
smart-card room keys and room
control devices such as heating
thermostats and internet-enabled
televisions. Many hotels are beginning
to utilise beacon technology to
smooth the check-in experience for
their preferred customers.
VQ | The Internet of Things 35
Defence Logistics Manufacturing
Connected devices IoT can enable massive savings in logistics costs both in transportation IoT opens up new possibilities for analysing
are set to transform and within warehouses. Fleets of connected vehicles cut travel time and automating manufacturing processes. At
warfare with drones and costs by using real-time traffic updates and plotting the most the same time the cost of sensors is continuing to fall making
replacing human pilots and smart efficient routes. Tracking sensors on parcels and shipping containers reduce costs it much more cost effective to include sensors throughout the
weapons with laser guidance and related to lost or damaged goods. And increased automation (e.g. Amazon) reduces manufacturing processes.
satellite systems able to pinpoint labour costs and increases productivity in warehouses.
exact targets. This should greatly
reduce casualties on the field of
battle. The US military are testing
remote controlled robots and drones Connected
that can communicate with each cars
other to accomplish complex military
It’s been estimated
manoeuvres.
Oil, gas, Retail that 75% of new cars in 2020 will
be connected; it will no longer only
and mining Retailers are using IoT devices in multiple ways be the luxury end of the market.
IoT sensors deliver data on including monitoring supply levels, targeting Connected cars feed back huge
how efficiently oil wells are running and offers to customers and collecting data to amounts of data enabling car
identify areas for improvement. In the five improve business practices. Applications include beacons and manufacturers to understand how
years between 2010 and 2015 US oil wells accompanying apps to push adverts and offers at customers, their vehicles are used and thus how
are delivering nearly four times as much oil smart mirrors in fitting rooms allow the customer to try on they can be improved in future. IoT
as a result. IoT is making mining safer where garments virtually, and smart shelving alerts the shop when will also save on recall costs when
sensors can test air quality and robots can it’s time to reorder. software patches can be pushed out
be employed in dangerous situations. to all the vehicles and not require a
physical recall. In car entertainment
and in-transit Internet access will also
be popular applications.
Smart buildings
New buildings are being designed and built to
include IoT devices particularly in the heating, Utilities
ventilation and air-conditioning systems
Global energy demand is
in order to reduce energy consumption. Connected light
Insurance bulbs also save energy and thus costs as do smart lifts. Smart
forecast to increase by 37%
by 2040 so it is imperative
buildings may also include IoT security systems.
The insurance industry that utility companies find solutions. Use of
is leveraging IoT devices smart meters connected to smart energy
to reduce their risks. grids can cut energy usage. Water can also
For example, offering usage-based car
insurance policies that assess risk based Transportation be monitored and utilised more efficiently.
on level of activity. Some health insurance Trains and aeroplanes are being fitted with sensors to enable
companies such as Vitality Life offer preventative maintenance by detecting wear and tear before failure.
incentives for participation in healthy Internet availability on flights and train journeys gives improved
activities – measured by fitness trackers. It customer service. Another use for connectedness is to deliver messages to bus stops
is expected that with more IoT car safety about when the next vehicle is due to arrive, and on board real-time cctv monitoring
technology in new vehicles there will be for accidents or incidents.
fewer accidents and claims.
36 March 2016 | VQ
iBeacon Technology –
Product Promotion in
your Pocket
Apple introduced iBeacon technology as part of iOS7 in
2013 with very little fanfare. Since then several companies
have entered the beacon market developing transmitters
and associated apps including Estimote and Blue Sense.
What is iBeacon?
iBeacon is technology that enables location awareness possibilities
for apps. The apps recognise when an iOS7 or later device is near a
wireless sensor called a beacon. The beacon transmits data to the
iPhone using Bluetooth Low Energy (BLE) and can also receive data
from the iPhone or other device. Using BLE means the system uses
very little energy and the beacons have a range of up to 50 metres.
How can iBeacon be used?
The iBeacon is Apple’s proprietary beacon technology designed
to communicate with Apple devices such as iPhones and iPads.
The iBeacon transmits its unique identity out into the surrounding
area. This signal is picked up by the app on your device. The app
calculates the proximity of the iBeacon and is programmed to do
something as a result, e.g. display a special offer.
The beacon and the app work together, without the app, the
beacon is just broadcasting. The usefulness is when it is paired
with an app. For example, the At the Ballpark app – this app
identifies the stadium you are entering and populates itself with
that stadium’s information. It can then direct you to your seat via
a map, it can highlight nearby points of interest and it can offer
directions to the shortest queue both at the entrance and at
concession lines.
Retail shops have also been among the first users of the
technology alerting customers to special offers as they come
through the door or browse a particular section of the shop.
The iBeacon also features micro-location geofencing which is
Implications of IoT
for Business
The Internet of Things is set to have major implications
for business – both positive and negative.
Possible challenges to Benefits of embracing
your business/industry: the Internet of Things:
p Security – data and systems; how do you ensure security? p You could extend or renew a product life by making it
p Privacy – people’s personal information and transactions should ‘smart’ or IoT-ready.
be kept private; what policies will you operate, and how will you p You could leverage the work of others by working within
ideal for indoor mapping. Where standard GPS has difficulty assess the threats posed by the external eco-systems that you multiple IoT ecosystems.
penetrating inside buildings, the iBeacon can enable indoor operate in?
mapping apps so you could then navigate an airport terminal or
p You could gain greater efficiencies and develop new
p Data ownership – who actually owns the data you collect about services by exploiting Big Data.
other large building with ease.
people and their behaviour? p You could introduce more automation to support and
In schools iBeacon can be used to distribute content to all
p Your business model, product or industry itself may be rendered maintenance operations by adding IoT sensors to
students as they enter the classroom, downloaded directly to their
inefficient or even obsolete by IoT developments; how are you existing products.
school iPads.
safeguarding or developing your current value proposition?
iBeacon also accepts payments so you can pay for your goods
without having to swipe your phone at an NFC (near-field p If you don’t develop a link to the IoT, or enable your products/
communication) point. services to operate within the IoT, will you be left behind?
What are the benefits of iBeacon?
p Accuracy – proximity technology senses the device and can
take immediate action.
p Privacy – iBeacons only track while the device is within proximity,
you are not being tracked after you leave the premises.
p Affordability – even an iPad can be configured as an iBeacon
via free apps and, unlike NFC, there is no need for an additional
chip in the device to work with the beacons.
p Usability – because the iBeacons use BLE there is very little
Y Retail shops impact on a user’s device and battery life. The functionality is
have been
built into the operating system.
among the first
users of the
technology
Who makes iBeacon transmitters?
alerting
customers to A number of companies have already developed iBeacons. This is
special offers
as they come a partial list of suppliers and prices are correct as of Autumn 2015.
through the door
or as they browse
■ Estimote – 3 beacons $99, battery is non-rechargeable,
a particular estimated to last 2-3 years.
section of the
shop. ■ Blue Sense – a range of beacons from £17.99 to £29.99 each
■ Gelo – 3 beacons $105
■ Kontakt – 3 beacons for $81 or $99 depending on exact
specification
■ Sensorberg – 3 beacons 69 Euros
38 March 2016 | VQ
Although now a little out
of date, the key findings in
a comprehensive report
by the McKinsey Global
Institute still remain valid.
(Big Data: The next frontier for innovation, competition and productivity, 2011)
Some industry sectors
probably stand to gain
more (or have bigger,
faster opportunities)
than others:
Healthcare
From smart consumer/lifestyle products to GP and
NHS services, the growth of IoT devices, health-
based Ecosystems and health-related Big Data all
present massive change and opportunity for this industry:
p The growth of health/lifestyle related devices for consumers
and health professionals will fuel greater awareness and new
health-related products and services.
p People will be more aware of health issues and their own
health data.
p Health monitoring and other services will be more distributed,
local and personal, all enabled by IoT technology.
p Big data will show new trends, new patterns and new
opportunities for prevention and treatments.
Public Sector
The pressure to do more with less public funds will
drive a greater use of technology. Basic infrastructure
(eg. traffic and transport) and the provision of
public services (eg. waste management) will all be optimised using
a combination of IoT technology and Big Data. This presents
significant challenges for existing public sector organisations, but
will introduce new opportunities for the private sector.
VQ | The Internet of Things 39
Internal Implications for all Business
In addition to challenges and opportunities in each industry sector, within a business the IoT can present challenges and opportunities
in each part of the value-chain:
■ R&D ■ SALES & MARKETING ■ DELIVERY, AFTER SALES
& SUPPORT
■ RESOURCE MANAGEMENT
Organisations need to widen their scope The IoT and Big Data can enable new As IoT sensors get smaller and cheaper,
of ideas to allow them to think ‘IoT’:
p What things could be sensed, monitored?
customer profiles and much more
detailed customer behaviour analysis
Similar to Sales and Marketing, in the area
of after-sales and support, the IoT can
and their use becomes wide-spread
and common, they will find their way
to be captured and optimised. Patterns allow data collection on delivery, usage, into parts, assets, vehicles, equipment,
p What data could be collected?
p What ecosystems could be leveraged?
and trends will point to new sales
opportunities and new eco-systems
associated behaviour, complementary
products and services. A wide range of
tools, clothing and of course be
linked to individuals. A wide range
can be exploited beyond the traditional cross-sell and up-sell opportunities will be of tracking, optimisation, utilisation
p What new business models, products
or services could be developed? market boundaries. New up-sell and
cross-sell opportunities can be identified
enabled, and new added-value services
will be created.
and pattern analysis services will be
created, and services sold on the back
and new, stronger value propositions can
be presented to customers.
of such advances.
Retail term. These developments will eventually make their way into
commercial transport – lorries, vans and buses will gradually
A retail revolution is already underway in terms
incorporate these technologies. Big Data will enable brand
of multiple-channel retail (eg. ‘click and collect’).
IoT technology will enable new buyer patterns to
new business models for car retailers, car rentals, car service,
commuting and lifestyle/leisure services.
be identified (and exploited), optimisation of the supply/delivery
chain as well as more personal shopping experiences, whether
in-store or on-line. Big high-street brands will seek to boost and Consumer Products
speed up the integration of their physical stores with digital
purchasing – Sainsbury’s interest in Argos is one current example.
The smartphone, apps and smart products
such as wearables and domestic appliances will
But the developments of IoT technology and eco-systems will continue to develop and this market will grow at
actually benefit the smaller retailers – at least those open to
leveraging the new capabilities of the IoT.
high-speed. Developments in both IoT sensor hardware and app
software will allow smaller businesses to exploit this area, and new
products will be launched at an even faster pace. Many business
Manufacturing sectors will be able to exploit this area – in terms of hardware,
apps, Big Data and new business models.
The manufacturing sector will be boosted in a
number of ways. Machines involved in the creation
Big Data will identify new
of products will incorporate IoT sensors to optimise
their functions, their maintenance and their performance. Better
markets and new opportunities
tracking of products through the manufacturing and supply chain
will allow better optimisation. The growth of 3D printing and the
‘Maker Economy’ will allow new businesses to exploit state-of-
the-art manufacturing techniques, and Big Data will identify new
that can be exploited
markets and new opportunities that can be exploited to deliver
more personal, build-to-order, small-run products with a much
faster design-to-market cycle.
Auto
p WHAT ARE THE IoT IMPLICATIONS
FOR YOUR ORGANISATION?
The car industry is already well down the IoT road
To consider how the IoT could affect your organisation,
in terms of sensors built into core functions and
digital services inside and outside of the actual
add the following questions to your strategic planning or
business reviews:
car (eg. automatic parking and remote start/diagnostics). The car
p How could our current value proposition be affected
industry will move even faster into IoT ecosystems with the rapid
(positively or negatively) by developments in the IoT?
development of self-driving cars, new business models that focus
more on renting than buying, and wider traffic and city eco- p How could our organisation leverage the IoT?
systems that optimise both traffic and the use of individual cars. p How could the IoT threaten what we do?
Developments in battery technology, when combined with the
IoT developments will transform the car industry in the longer-
40 March 2016 | VQ
Conekt is a business unit of ZF TRW and provides its
customers with a complete engineering service from
product development through to product validation and
low volume product supply. The company works primarily
at the sensor end of the Internet of Things advising clients
on a range of issues focusing on sensors, electronics and
wireless connectivity rather than big data analytics.
ROGER HAZELDEN, Technical Specialist
for Sensors and Optoelectronics,
explained how Conekt is independent
of any sensor manufacturer and can offer
impartial advice not tied to any particular
technology or supplier.
He is sceptical of the suggestions of a
future with billions of interconnected
devices across the whole world and
believes that we will see discrete IoT
systems rather than world-wide
connectivity. His advice to any company
considering expanding their offerings into
the Internet of Things is to be wary of being
seduced by the latest buzz around IoT.
“The first thing to do is determine what
problem IoT will solve. Is this a real problem
that people will pay to have solved? Is there
a real need? Is there a business case to be
made?” he asks.
Once you have determined that there
really is a business case then you are best
served by seeking independent advice.
Hazelden recommends the Knowledge
INDEPENDENT ADVICE
FOR IOT PROJECTS
Roger Hazelden
Conekt
Transfer Network (www.ktn-uk.co.uk)
as a good place to start. The KTN is part
of Innovate UK and is funded by the
government to connect needs with
answers in multiple technology areas
including IoT. The KTN advisors will be
able to offer impartial advice on the
best way forward and connect you to
companies and people who can help
make it all happen.
Conekt have found that the most
important factor for IoT project success
is a rigorous definition of requirements
right at the start of the project. To create
this they use a number of proprietary
and public domain tools working with
technical, marketing and commercial
representatives of your business so that
everyone’s viewpoint is considered.
Security needs to be considered right
from the outset. Hazelden suggests
asking the question: What are the
consequences of the system being broken in
to, either deliberately and maliciously or even
Rethinking
your Strategy for
an IoT World
Security needs to
be considered right
from the outset.
Bolt-on security as
an afterthought
will never be as
robust as security
included from the
outset.
accidentally? Determine the level of security
needed and then build that level of security
into the design of the devices and systems
right from the start. Bolt-on security as an
afterthought will never be as robust as
security included from the outset.
Future-proofing of your design is also an
important consideration in Hazelden’s
view. Will your system continue to
function or be easily modified if one of
your suppliers goes bust? This is another
area where initial thought, planning and
investment will save you money in the
long run.
In short, build a business case, seek
independent advice, include security and
future-proofing from the outset and only
then budget to develop your IoT enabled
devices and systems ■
VQ | The Internet of Things 41
Technology has been a ‘game-changer’ since its inception; it has accelerated
businesses, reduced cost, allowed rapid scaling, allowed global reach and so-on.
So why is the IoT different?
4    Multiple Ecosystems
A single manufacturer can develop a range of products
and services to leverage the IoT. They can even build their
own ecosystem based on their products or their brand. But they
1    Digital sensors generating ‘perfect’ data.
Within the IoT, tiny sensors monitor all sorts of things, from
temperature to speed, to vibration etc. That data is digital,
so can be stored and transmitted perfectly, every time. It can also
be transmitted instantly, on a global basis, at almost zero cost. This
can also integrate with other ecosystems to widen the scope, to
leverage more value, to generate new value propositions. New
businesses will be created that simply exploit data and ecosystems
that others take part in but don’t leverage.
So the IoT will actually create some fundamental changes to the
means that business can now generate, store or access data on a
way things work; the way we live. It doesn’t matter what sector you
scale and speed never before realised. This transforms the speed
operate in, or what size your business is. The IoT could potentially
and efficiency of the business. It also enables brand new services
make what you do obsolete. It could allow you to enter a totally
never before available and allows new entrants to every sector.
new space that far exceeds what you have done to date.
2    
Machine-to-Machine Communication
It’s radically changing
Within the IoT, smart devices can ‘talk’ to other smart
devices. They can make decisions, initiate actions, take
the way we live...
control. So entire functions within traditional businesses can be
automated or eliminated. This will provide opportunity for some
and will sound the death knell for others.
3     Big Data
Collections of devices can generate trillions and trillions
Time to
of bytes of data. Single data sets from a single device
might not generate that much value in themselves, but data
from multiple devices, millions of users/machines and different
ecosystems can provide access to a ‘bigger picture’, where trends,
behaviours, patterns, risks and probabilities become clear. New
business services and value propositions can be built around
re-think?
these, and the IoT itself can be used to monetise data patterns
and pictures.
42 March 2016 | VQ
We just can’t afford
to ignore it...
r In conclusion IT’S A BIG TOPIC. It’s moving fast and
changing on a daily basis. Some of the
issues and challenges present problems to
which we don’t yet have all of the answers
(eg. security and the use/ownership of data).
But because it’s moving fast, because it
has the ability to radically change the way
we live, the way we work, the way that
businesses operate, we just can’t afford to
ignore it.
The Internet of Things presents all sorts
of challenges and opportunities – to all
industry sectors and organisations of
all types and sizes. As business leaders,
owners or entrepreneurs we need
to ask ourselves some basic questions.
We need to re-evaluate our basic
operations and value propositions. We
need to think outside of the box and look
at what we can re-invent.
How to get started?
AT YOUR NEXT BOARD MEETING,
business review or strategic offsite,
you might want to add the following key
questions to your agenda:
■ How will the Internet of Things affect
our customers, our business and our
industry in the next 3-5 years?
■ What are we doing as an organisation
to protect our business, and to leverage
the opportunities it presents?
■ As a business, are we doing enough or
are we ignoring The Internet of Things?
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