INTERNET OF

THINGS (IoT)
THE FUTURE AND CHALLENGES OF IoT FOR
INDIA
 2

Confidential

5/21/17
 3

PART A: ‘EXPLORING IoT-

WHAT & HOW?’
 4
What is IoT?

IoT Users
 IoT is a system of devices and Co
sensors connected to the internet ns
u
to perform activities useful to m
er
humans. s
 IoT solutions are now widely Governme
nts
being used in the automotive,
energy, healthcare, retail,
transportation industry amongst Businesses
others.
 Companies like Apple, Cisco,
Google, Samsung, GE and IBM
 5
Potential of IoT: Facts &
Figures

$6 will be Total investments

There will be 24 invested in IoT in IoT solutions
billion IoT solutions over the over the next five
devices installed years will
next five years.
by 2020.[1] generate $13
[2]
trillion by 2025.
[3]
By 2020, a In the next five
quarter of a years, the
billion vehicles Government of
will become India plans to
internet enabled create a $15
and giving a push billion IoT
to automated market in the
driving. [4] country. [5]
 Constituents of IoT 6

SENSORS: IoT devices work with sensors that can

register changes in temperature, light, pressure, sound
and motion etc. They are like eyes and ears to what's
going on in the world.

APPLICATIONS: These sensors can be paired with an

integrated circuit with a limited degree of programming
capability and designed to perform a specific function.

ANALYSIS OF DATA: In IoT setups, the data collected

through various sensors installed, can all be integrated over
common accessible cloud platforms. This can help in analysis
of data received and aid in predicting future patterns of
behavior, preferences of customers etc.
 7
Working Models of IoT
Device to Device Device to Cloud

 Two or more devices  Involves an IoT device

directly communicating connecting directly to an
with each other through internet cloud service like an
IP networks, bluetooth application service provider
etc. to exchange data and control
message traffic.
 Security: Due to one to
one relationship  Security: More complicated
between the two than device to device model
devices, the security because it involves two
concerns are lesser as different types of credentials:
compared to other the network credentials & the
working models of IoT. credentials for cloud access.
 Commonly used in home  This model supports pushing
automation systems and software updates to the

Device to Gateway
 IoT devices connect to an
intermediary device to
access a cloud service.
 Involves application
software operating on a
local gateway device (like a
smartphone) that acts as an
intermediary between an
IoT device and a cloud
service.
 Finds application in fitness
devices that connect to the
cloud through a fitness data from various
smartphone app like Nike+.
8
Back End Data
 Sharing
Back-End Data-Sharing
essentially extends the
single device-to-cloud
communication model so
that IoT devices and sensor
data can be accessed by
authorized third parties.
 Users can export and
analyze object data from a
cloud service in
combination with data from
other sources, and send it
to other services for
aggregation and analysis
like Mapmyfitness compiles
devices ranging from the
 9

PART B: INDUSTRIAL IoT

 10
What is Industrial IOT (IIoT)?

Devices &
 IIoT may simply be understood as the internet
use of IoT technologies in IIoT
manufacturing, processing and
IoT
equipment inspection.

 IIoT solutions aim at improving

connectivity, efficiency, scalability, time
and cost savings. IIoT is a sub-set of IoT

 Security of the systems remains an

important concern.
 11
The Airbus Factory of the
Future

 The French manufacturer, Airbus

has undertaken a project titled
the Airbus Factory of the Future.
 Airbus seeks to direct research
for automating the assembly
process of aircrafts.
 The project’s focus is on
developing smart tool facilities for
different processes involved in Two arm humanoid robot at
work at the Puerto Real plant
aircraft manufacturing such as in Cadiz.
data logging and equipment
inspection.
 12
General Electric’s Predix

 General Electric’s Predix is a cloud based PaaS (platform

as a service) for the collection and analysis of data from
industrial machines.
 GE in collaboration with Intel, AT&T and Cisco has rolled
out 40 apps for industrial companies to analyze data
collected from equipments to optimize performance and
extend life.
 For instance, previously, for inspection of oil pipelines,
either workers in helicopters were sent to sites to
undertake the inspection manually.
 13

 If the application enses any kind of irregularity in the

environment, it automatically sends out a signal to the
relevant data base to send out a repair crew.
 Another application using Predix is ‘Field Vision’ which
can be installed on mobile devices. This application is
loaded with the entire historical information about the
concerned machine.
 Through the readings of the previously collected data
regarding the specific equipment, it automatically
generates an alert to the inspection team for maintenance
checks and may even place orders for parts, automatically
when required.
 14

PART C: CREATING AN
ECOSYSTEM BUSINESS
MODEL
 15
Identifying the IoT Model

 With IoT entering several industries and creating an

increasingly interconnected network, causing the inevitable
interaction between primary participants (manufacturers) and
secondary participants (suppliers, ancillary industries, app
builders), the need for a new kind of business model is felt.
 ‘Ecosystem business model’ – a new business model supported
by the interaction amongst manufacturers, customers, suppliers
and with those otherwise unrelated entities getting connected
to each other due to the wider interconnectivity provided by IoT.
 16
Challenges to Creating an
Ecosystem Business Model
• Due to multitude of connecting devices, developing
standardized interfaces for connections is
Diversity of challenging
Things • Each ‘thing’ connected is diverse and increases the
burden of arranging specific business logistics

Immaturity •IoT innovations are at its infancy stage, yet to be

of transformed into full fledged products & services.
Innovation •Limits the scope for ‘scaling up’ of business on an
immediate basis.
• IoT being a new phenomenon, requires interaction
Unstructur between manufacturers, app developers, ancillary
ed suppliers etc. identifying all these units accurately is
Ecosystems challenging
• Analysis of relevant ecosystem concerning the
business is time consuming and delays progress
 17
Possible Solutions to Building an
Ecosystem IoT Business Model

 Identify and increase alliance between the primary

participants and secondary participants.
 Traditional industries (agriculture, transportation), having
limited interaction with technology have to be developed in
a manner that ensures that they can fit in the increasingly
interconnected economic framework through IoT.
 Companies must aim to create products which are
adaptable to the future technological changes & focus on
policies allowing for technological advancements at feasible
costs.
 18

PART D: THE
CHALLENGES & LEGAL
ISSUES
 19
Challenges to IoT Development

 Security & Privacy

 Interoperability &Standards
 Legal Issues
 20
Security

 Poorly secured IoT devices are prone to cyber attacks

causing either re-programming of a device or malfunctioning
 IoT products/services often are designed in a manner,
making them unsuitable for them to be equipped with
regular security updates
 Very few security apps are available, which can alert users
about potential security threats/compromises arising in their
IoT enabled offices or homes.
 21

 Physical safety of the concerned individual may be

compromised due to security vulnerabilities in IoT
devices.
 For instance, hacking remotely into two separate insulin pumps and
thereby manipulating the quantity of the medicine supplied.

 Data Encryption needs to be encouraged.

 Recently, a tech start up ‘Luma’ created routers
possessing an intrusion detection system, which helps
identify and isolate any compromised device or network,
ensuring that the entire network is not exposed to the
same security threat.
 22
Privacy

Privacy in IoT primarily concerns the following issues:

 IoT allows interaction of previously disconnected platforms,
leading to massive information exchange of personal data. This
can potentially lead to unauthorized access to personal data.
 The extent of control provided to the individual from whom
data is collected with respect to its processing, analysis and
usage, especially by unauthorized third parties.
 The awareness and control over usage of such personal data
collected, by subjects outside the personal sphere of the data
subject.
 23

 IoT devices potentially capture more information than is

necessary:
 For instance, the voice recognition feature in Samsung’s
Smart TV Devices captures all conversations occurring
before it. This data is then directed back to the
manufacturer.
 Companies need to be required to constantly work
towards improving data collection practices, and assess
and revamp privacy protection mechanisms.
 24
Interoperability & Standards

 Interoperability may be simply understood as

“ The ability of computer systems or software to exchange and make use

of information.”
 Allowing interoperability across diverse IoT platforms simplifies the
process of developing new technologies/platforms as sharing and
accessing resources is made possible.
 Due to a lack of uniform standards facilitating interoperability, the
true potential of most IoT devices are not realized.
 Companies make available data or technologies in a proprietary form
as a means of ensuring a monopolistic presence in the concerned
industry. This is a major cause for resistance against interoperability.
 25

 OneM2M, a global standards initiative for Machine to Machine

(M2M) communications & IoT has recently issued a set of
specifications for seamless connectivity along with further security
measures based on a checklist generated by two hundred companies.
 This is a mutually agreed upon set of guidelines, not mandated for by
any statute.
 The EU is currently funding an ‘InterIoT’ project targeted toward
achieving standardization across diverse IoT platforms Singapore is
also working towards creating an interoperable network to facilitate
IoT.
 26
Legal Issues

1. Jurisdictional Issues:
 Incompatibility of laws between place where the device
and subject matter are located and the place where data
is processed and analyzed.
2. Usage of IoT for Law Enforcement Purposes over
Individual’s Right to Privacy:
 The pervasiveness of data monitoring activities including
surveillance, usage of data for evidentiary purposes,
requires due consideration from a legal standpoint
 27

3. Device Liability – Who is to be held responsible?

 It is challenging to determine who should be liable in case an
IoT system involving various parties malfunctions.
 If a system malfunctions due to a security attack would the
manufacturer or the software developer be liable?
 Who will own data, especially concerning individuals?
 28

5. Net Neutrality & its Impact on IoT

 Net neutrality would facilitate IoT to function seamlessly.
 Argument against net neutrality is that it will diminish
incentives internet service providers (ISP) would have in
prioritizing connections to critical systems such as
traffic, and healthcare.
 Net neutrality is also believed to lead to an eventual
overload on the ISP slowing down connectivity.
 Attention is required toward discretionary power ISP’s
will possess if net neutrality isn’t implemented.
 29

PART E: ‘GLOBAL
INITIATIVES- WHAT IS
THE WORLD DOING?’
 30
Global & National Initiatives
toward developing IoT
1. Singapore
 Singapore has consistently recognized the potential of IoT.
 The current strategy called iN2015 Masterplan has incorporated
achieving IoT development as a focus area over the next decade.
 Singapore’s Smart Nation Platform, a government initiative,
seeks to create technical support by providing avenues wherein
sensor data can be stored and managed securely.
 The government has also initiated various pilot projects, involving
the use of sensors by private companies as well as other sensor-
oriented projects with a special focus to measure climate change.
 31

2. Australia:
 The Australian Government Interoperability Framework
(AGIF) aims to create a seamless network of information
accessibility spread across various government platforms which
may be accessed by a single entry point.
 It works on 3 main components:
a. Business Process Interoperability Framework (BPIF)
[Harmonize common service delivery processes]
b. Information Interoperability Framework (IIF)
[Seek to improve accessibility, sharing & re-use of information]
c. Technical Interoperability Framework
[Developing technical standards needed to share info & data]
 32

 Frameworks are designed to initiate a process involving

cross-agency communication i.e. the interaction and access
of information by those, seeking government services from
their preferred domain of interaction usually a single entry
point.
 Allows for a collaborative action on part of the government
helping to understand policy changes required to be made,
across different levels of the government.
 Seeks to bring these various platforms under the usage of a
common set of standards for its functioning, to achieve true
interoperability.
 33

3. European Union (EU):

 The EU has initiated research projects through European
Research Cluster on IoT. These initiatives focus on
strengthening interoperability networks, building low-
power computing to facilitate IoT.
4. Germany:
 The High-Tech Strategy 2020 Action Plan generates
targeted funding of 200 million euros for a project aiming
to progress in areas of internet-based manufacturing,
automation & embedded systems.
 34

5. USA:
 The US, in September 2016 passed the IoT Resolution, H.RES 847 calling
for a national strategy for government-industry collaboration, developing
IoT to enhance economic growth and consumer empowerment.
 In November 2016, the US Department of Homeland Security and National
Institute of Standards & Technology (NSIT) released guidance documents
on IoT security
 The report lays down six strategic principles which promote design
practices especially focusing on security and transparency for IoT enabled
devices to build a secure IoT network.
 The six principles include focusing on building security at the design stage
of the products, developing security practices and improving transparency.
 35

6. India: The Draft Policy on IoT by the Ministry of Information &

Technology bases its strategy for development of IoT is based on five
pillars
i. Demonstration Centers:
Identification of strategic areas for promoting development of IoT
(Smart cities, smart waste management)
ii. Capacity Building & Incubation:
Promotion of institutional capacity building
Creation of experimental facilities enabling communities to experiment
with IoT devices & applications
iii. Standards:
Allow participation of research bodies in national & international
initiatives to develop standards for IoT technologies ( includes
interoperability)
 36

iv. R&D, Innovation:

Fund for R&D in IoT for specific applications
Start developing ‘cloud based open source’ projects; create
test labs for Hardware to Hardware (H)
v. Incentives & Engagement:
Promote venture funds supporting companies in IoT
( Sensors, memory)
 The Indian Government is also working toward
implementing IoT solutions through the PPP model. State
governments have also implemented policies on similar
 37
IoT: The Future

 While IoT is projected to grow further in the coming years, it

is necessary to overcome challenges obstructing its growth.
 It needs to be ensures that from the initial stages of
production of sensors and other IoT enabled programmes,
security systems are built in a resilient manner
 Focus on building systems which are compatible to
accommodate security upgrades in a timely fashion.
 Governments and Standards Development Organizations
must collaborate and chalk out guidelines to promote
interoperability
38