2018

Internet of Things (IOT)

Chetna Desai

6/27/2018
Contents
Internet of Things (IOT) ........................................................................................................................... 2
Birth of IOT ...................................................................................................................................... 2
Introduction to IoT .......................................................................................................................... 2
Benefits of IoT ......................................................................................................................................... 3
IoT Across Various Domains .................................................................................................................... 3
How Big is IoT? ........................................................................................................................................ 4
Key Global and India Market Trends....................................................................................................... 4
Real World Applications of IoT................................................................................................................ 7
Smart Home .................................................................................................................................... 7
Wearables ....................................................................................................................................... 7
Connected Cars ............................................................................................................................... 7
Industrial Internet ........................................................................................................................... 8
Smart Cities ..................................................................................................................................... 8
IoT in Agriculture............................................................................................................................. 8
Smart Retail ..................................................................................................................................... 8
Energy Engagement ........................................................................................................................ 9
IOT in Healthcare ............................................................................................................................ 9
IoT in Poultry and Farming .............................................................................................................. 9
Impact of IoT on technology services (IT, BPM & ER&D) ........................................................................ 9
NASSCOM Members ............................................................................................................................. 10
NASSCOM Reports ................................................................................................................................ 11
Internet of Things (IOT)

Birth of IOT
The term “The Internet of Things” (IoT) was coined by Kevin Ashton in a presentation
to Proctor & Gamble in 1999. He is a co-founder of MIT’s Auto-ID Lab. He pioneered RFID
(used in bar code detector) for the supply-chain management domain.

Introduction to IoT
The ‘Thing’ in IoT can be any device with any kind of built-in-sensors with the ability to collect
and transfer data over a network without manual intervention. The embedded technology in
the object helps them to interact with internal states and the external environment, which in
turn helps in decisions making process.

In a nutshell, IoT is a concept that connects all the devices to the internet and let them
communicate with each other over the internet. IoT is a giant network of connected devices
– all of which gather and share data about how they are used and the environments in which
they are operated.

A room temperature sensor gathers the data and send it across the network, which is then
used by multiple device sensors to adjust their temperatures accordingly. For example,
refrigerator’s sensor can gather the data regarding the outside temperature and accordingly
adjust the refrigerator’s temperature. Similarly, your air conditioners can also adjust its
temperature accordingly. This is how devices can interact, contribute & collaborate.
Benefits of IoT
The major benefits of IoT are:

 Improved Customer Engagement – IoT improves customer experience by automating the

action. For e.g. any issue in the car will be automatically detected by the sensors. The
driver, as well as the manufacturer, will be notified about it. Till the time driver reaches
the service station, the manufacturer will make sure that the faulty part is available at the
service station.
 Technical Optimization – IoT has helped a lot in improving technologies and making them
better. The manufacturer can collect data from different car sensors and analyze them to
improve their design and make them much more efficient.
 Reduced Waste – Our current insights are superficial, but IoT provides real-time
information leading to effective decision making & management of resources. For
example, if a manufacturer finds fault in multiple engines, he can track the manufacturing
plant of those engines and can rectify the issue with manufacturing belt.

IoT Across Various Domains

 Energy Applications: The energy rates have raised to a great instinct. Individuals and
organisations, both are searching ways to reduce and control the consumption. IoT
provides a way to not only monitor the energy usage at the appliance-level but also at the
house-level, grid level or could be at the distribution level. Smart Meters & Smart Grid are
used to monitor energy consumption. It also detects threats to the system performance
and stability, which protect appliances from downtime and damages.
 Healthcare Application: Smartwatches and fitness devices have changed the frequency
of health monitoring. People can monitor their own health at regular intervals. Not only
this, now if a patient is coming to the hospital by ambulance, by the time he or she reaches
the hospital his health report is diagnosed by doctors and the hospital quickly starts the
treatment. The data gathered from multiple healthcare applications are now collected
and used to analyze different disease and find its cure.
 Education: IoT provides education aids which helps in fulfilling the gaps in the education
industry. It not only improves the quality of education but also optimizes the cost and
improves the management by taking into consideration students response and
performance.
 Government: Governments are trying to build smart cities using IoT solutions. IoT
enhances armed force systems and services. It provides better security across the borders
through inexpensive & high-performance devices. IoT helps government agencies to
monitor data in real-time and improve their services like healthcare, transportation,
education etc.
 Air and Water Pollution: Through various sensors, we can detect the pollution in the air
and water by frequent sampling. This helps in preventing substantial contamination and
related disasters. IoT allows operations to minimize the human intervention in farming
analysis and monitoring. Systems automatically detect changes in crops, soil,
environment, and more.
 Transportation: IoT has changed the transportation sector. Now, we have self-driving cars
with sensors, traffic lights that can sense the traffic and switch automatically, parking
assistance, giving us the location of free parking space etc. Also, various sensors in your
vehicle indicate you about the current status of your vehicle, so that you don’t face any
issues while travelling.
  Marketing your product: Using IoT, organizations can better analyze & respond to
customer preferences by delivering relevant content and solutions. It helps in improving
business strategies in the real-time.

How Big is IoT?

According to Gartner report, by 2020 connected devices across all technologies will reach to 20.6
billion.

Source: HP

Key Global Market Trends

IoT is poised for exponential growth globally, with the number of connected devices expected to
grow 5.5X to 20.8 billion and revenue expected to grow over 3X to $3 trillion by 2020

Global IoT revenue is expected to grow from $0.9 trillion in 2014 to $3 trillion in 2020. Similarly, the
installed base of IoT units worldwide is expected to grow from 3.8 billion in 2014 to 20.8 billion by
2020.
Installed based growth by 2020 across Industrial and Consumer categories.
Industry wise bifurcations
Real World Applications of IoT

Smart Home
With IoT creating the buzz, ‘Smart Home’ is the most searched IoT associated feature on Google. But,
what is a Smart Home?

Wouldn’t you love if you could switch on air conditioning before reaching home or switch off lights
even after you have left home? Or unlock the doors to friends for temporary access even when you
are not at home. Don’t be surprised with IoT taking shape companies are building products to make
your life simpler and convenient.

Smart Home has become the revolutionary ladder of success in the residential spaces and it is
predicted Smart homes will become as common as smartphones.

The cost of owning a house is the biggest expense in a homeowner’s life. Smart Home products are
promised to save time, energy and money. With Smart home companies like Nest, Ecobee, Ring and
August, to name a few, will become household brands and are planning to deliver a never seen before
experience.

Wearables
Wearables have experienced an explosive demand in markets all over the world. Companies like
Google, Samsung have invested heavily in building such devices. But, how do they work?

Wearable devices are installed with sensors and software which collect data and information about
the users. This data is later pre-processed to extract essential insights about user.

These devices broadly cover fitness, health and entertainment requirements. The pre-requisite from
internet of things technology for wearable applications is to be highly energy efficient or ultra-low
power and small sized.

Connected Cars
The automotive digital technology has focused on optimizing vehicles internal functions. But now, this
attention is growing towards enhancing the in-car experience.

A connected car is a vehicle which is able to optimize its own operation, maintenance as well as
comfort of passengers using on-board sensors and internet connectivity.

Most large auto makers as well as some brave start-ups are working on connected car solutions.
Major brands like Tesla, BMW, Apple, and Google are working on bringing the next revolution in
automobiles.
Industrial Internet
Industrial Internet is the new buzz in the industrial sector, also termed as Industrial Internet of Things
(IIoT). It is empowering industrial engineering with sensors, software and big data analytics to create
brilliant machines.

According to Jeff Immelt, CEO, GE Electric, IIoT is a “beautiful, desirable and investable” asset. The
driving philosophy behind IIoT is that, smart machines are more accurate and consistent than humans
in communicating through data. And, this data can help companies pick inefficiencies and problems
sooner.

IIoT holds great potential for quality control and sustainability. Applications for tracking goods, real
time information exchange about inventory among suppliers and retailers and automated delivery will
increase the supply chain efficiency. According to GE the improvement industry productivity will
generate $10 trillion to $15 trillion in GDP worldwide over next 15 years.

Smart Cities
Smart city is another powerful application of IoT generating curiosity among world’s population. Smart
surveillance, automated transportation, smarter energy management systems, water distribution,
urban security and environmental monitoring all are examples of internet of things applications for
smart cities.

IoT will solve major problems faced by the people living in cities like pollution, traffic congestion and
shortage of energy supplies etc. Products like cellular communication enabled Smart Belly trash will
send alerts to municipal services when a bin needs to be emptied.

By installing sensors and using web applications, citizens can find free available parking slots across
the city. Also, the sensors can detect meter tampering issues, general malfunctions and any
installation issues in the electricity system.

IoT in Agriculture
With the continuous increase in world’s population, demand for food supply is extremely raised.
Governments are helping farmers to use advanced techniques and research to increase food
production. Smart farming is one of the fastest growing field in IoT.

Farmers are using meaningful insights from the data to yield better return on investment. Sensing for
soil moisture and nutrients, controlling water usage for plant growth and determining custom fertilizer
are some simple uses of IoT.

Smart Retail
The potential of IoT in the retail sector is enormous. IoT provides an opportunity to retailers to connect
with the customers to enhance the in-store experience.

Smartphones will be the way for retailers to remain connected with their consumers even out of store.
Interacting through Smartphones and using Beacon technology can help retailers serve their
consumers better. They can also track consumer path through a store and improve store layout and
place premium products in high traffic areas.
Energy Engagement
Power grids of the future will not only be smart enough but also highly reliable. Smart grid concept is
becoming very popular all over world.

The basic idea behind the smart grids is to collect data in an automated fashion and analyse the
behaviour or electricity consumers and suppliers for improving efficiency as well as economics of
electricity use.

Smart Grids will also be able to detect sources of power outages more quickly and at individual
household levels like nearby solar panel, making possible distributed energy system.

IOT in Healthcare
Connected healthcare yet remains the sleeping giant of the Internet of Things applications. The
concept of connected healthcare system and smart medical devices bears enormous potential not just
for companies, but also for the well-being of people in general.

Research shows IoT in healthcare will be massive in coming years. IoT in healthcare is aimed at
empowering people to live healthier life by wearing connected devices.

The collected data will help in personalized analysis of an individual’s health and provide tailor made
strategies to combat illness.

IoT in Poultry and Farming

Livestock monitoring is about animal husbandry and cost saving. Using IoT applications to gather data
about the health and wellbeing of the cattle, ranchers knowing early about the sick animal can pull
out and help prevent large number of sick cattle.

Impact of IoT on technology services (IT, BPM & ER&D)

NASSCOM Members

Industry Member Organization IoT Application/case studies

Manufacturing Airbus Smart tools being used to
perform manufacturing
processes such as drilling,
measuring, tightening, etc.
leading to improvement in
production efficiency, by
regular monitoring of results
Intel Smart factories enabling
visibility into production issues
for an integrated view, thereby
increasing efficiency and
utilization of equipment
GE Sensors installed on engines to
reduce downtime via
predictive maintenance
Automotive BMW Connected cars to integrate
vehicle-related services
Daimler Software installed in truck
fleet to send alerts and guide
drivers to local dealers stocked
with replacement parts
Agriculture John Deere Sensors installed on farm
equipment to assist farmers to
manage fleet of tractors
Retail Disney RFID tags to provide access to
a variety of services, and track
them later
Amazon WiFi enabled Amazon Dash
Button for consumables to flag
low volumes
Target Target corporation leverages
beacons to make hyperlocal
content accessible to shoppers
Healthcare Pfizer Solutions to conduct IoT
enabled clinical trials in order
to evaluate specific outcomes
Transport and DHL Sensors to detect whether
Logistics mailboxes are empty to
optimize collection during last-
mile Delivery
FedEx Tracking devices to keep tabs
on temperature, location,
condition of packages
Source: Deloitte Analysis, Deloitte University Press
NASSCOM Reports

http://www.wfeo.org/wp-content/uploads/stc-information/L3-IoT_Landscape-by-S_Malhotra.pdf

http://www.nasscom.in/sites/default/files/media_pdf/indian-iot-market-set-grow-upto-usd-15-
billion-2020.pdf

http://www.nasscom.in/natc2017/images/white-papers/internet-of-things.pdf