Key Questions To Ask About The: Internet of Things

key
questions
to ask
about the
Internet of Things
The Internet of Things (IoT) has been
simmering for a while, but now
seems ready to boil over as
widespread transformation
seems likely.
Will your organization be ready?

2 Deloitte University Press | 5 key questions about
to ask the
about
Internet
the Internet
of Things
of Things
| @DU_Press
| @DU_Press
#DeloitteReview
#DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Want to know how many steps you
walked? Miles you drove? Watts you
consumed? The IoT can tell you all that
and more.
But how, exactly,

can the IoT bring
value to your
organization?
3 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
To obtain a foundational
understanding of how the
Internet of Things applies to your
business, begin by exploring the
answers to five key questions.
5
1 How does information generated from
the Internet of Things create value?
Deloitte University Press | 5 key questions to ask about
aboutthe
theInternet
Internetof
ofThings
Things| | @DU_Press
@DU_Press#DeloitteReview
#DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Information within the Internet of Things creates value in
a never-ending value loop consisting of 5 stages:
ANALYZE ACT
The discernment of patterns Initiating, maintaining, or
or relationships that leads to changing a physical event or state
descriptions, predictions,
or prescriptions for action
CREATE
The use of sensors to
generate information
about a physical event
or state
AGGREGATE
COMMUNICATE
The gathering together of
The transmission of
information created at
information across networks,
different times or from
from one place to another
different sources
It is crucial to look upon the IoT with both an open mind
and a certain level of skepticism.
value
Some changes enabled by the Internet of Things will be incremental, while others
will be transformative. Yet the need to capture value remains as acute as ever.
To learn more, read “The more things change: Value creation, value
capture, and the Internet of Things” from Deloitte Review 17
Download the article
8
2 Where do humans
fit into the equation?
Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
At first blush, the obvious implication of the IoT is that
everyday objects can and will become better, more
efficient versions of what they already are.
But if you look closer, the Internet of Things is not just
about “smart devices”; it is also about devices and
services that help people become smarter.
The IoT enables new products and services premised around the
creation of new forms of collective intelligence
Digital breadcrumbs, analyzed with computational social science

tools, will help measure hidden individual and organizational traits
Behavioral design thinking is indispensable when building the world

of complex systems of interactions between people and things
To learn more, check out “IoT’s about us: Emerging forms of innovation
in the Internet of Things” from Deloitte Review 17
3 Customers vs. companies: Who
benefits from the Internet of Things?
Information is a powerful value-creation tool. However,
the information value loop’s underlying structure tends to
pull IoT deployments in one of four directions:
Hobson’s choice All’s well

“Customers are free to decide “Sufficient value is created, and that
but only one option exists; value is shared between customers
thus, it is really no choice at all” and companies sufficiently equitably”
Gridlock Customer is king

“Both companies and customers are “Customers end up capturing a
pulled in opposite directions, unable disproportionate share of the new
to move toward an optimal outcome” value created”
Companies can employ three techniques to develop an
economically sustainable and mutually beneficial
result for both the company and its customers.
Take a hard look at who

benefits most from each
IoT-enabled transaction and
correct value allocations
Examine how a company Assess where IoT
is using IoT technologies investments may not have
using the Information an appreciable benefit and
Value Loop move away from them
To learn more, read “Power Struggle: Customers, companies, and the

Internet of Things” from Deloitte Review 17
14
4 How will companies
keep information safe?
The complex and rapidly changing landscape within
the Internet of Things demands a structured approach to
identifying risks and appropriate responses.
IoT solutions need to blend operational understanding
with multilayered cyber risk management techniques
Securing data is critical at every stage of the value loop, especially the
create and communicate stages
Remaining vigilant to new or unexpected challenges is crucial to

maintaining security
A system’s resilience defines how quickly a realized risk can be

addressed and normal operations restored
To learn more, read “Safeguarding the Internet of Things: Being secure,

vigilant, and resilient in the connected age” from Deloitte Review 17
17
5 How does the Internet of Things
create value for your supply chain?
Information from IoT deployments allows supply chains to
invest less in eliminating variation and instead use it as a
driver of innovation or competitive advantage
The transformations that the IoT can bring open up the
possibility for new improvements and allow companies to
find new paths to supply chain management
Making visible previously Holistic, end-to-end

unseen information allows ecosystems can give
for greater efficiency rise to new, innovative
than process controls business models
Companies can transform

push-driven order
systems to differentiated
pull-driven systems
To learn more, read “Forging links into loops: The Internet of Things’
potential to recast supply chain management” from Deloitte Review 17
The Internet of Things can fundamentally
transform how organizations create value
The Information Value Loop gives
rise to increasingly complex
business ecosystems Big data analytics take
on additional levels of
complexity
Profound insights
await discovery
across the
supply chain
Organizations must
determine how to share
Security and privacy take on value with customers
heightened importance appropriately
Read more from our special “Internet of Things” section in
Deloitte Review Issue 17
Download Download
Download
Download Download
Share your thoughts with the hashtag #DeloitteReview

Follow @DU_Press on Twitter
Meet the authors
MICHAEL E. RAYNOR MARK J. COTTELEER
director with Deloitte Services, research director with Deloitte
LP and the director of the Services LP, affiliated with
Center for Integrated Research Deloitte’s Center for Integrated
which designs, executes, and Research, focused on
supports research into important operational and financial
issues facing companies today performance improvement
JAMES GUSZCZA HARVEY LEWIS

US chief data scientist for UK lead for analytics research at
Deloitte Consulting LLP Deloitte LLP
JOHN LUCKER JOE MARIANI

principal with Deloitte lead Market Insights analyst with
Consulting LLP, Global Advanced Deloitte Services LP focusing on
Analytics & Modeling market technologies and trends that cut
leader, and a US leader of across industries
Deloitte Analytics
Meet the authors
SEAN PEASLEY ARUN PERINKOLAM
principal with the Cyber Risk senior manager with the Cyber
Services practice at Deloitte & Risk Services practice at Deloitte
Touche LLP and the US & Touche LLP focusing on cyber
Consumer Business & Industrial risk strategy and program
Products leader for cyber risk development
services
EVAN QUASNEY IFRAN SAIF

manager with Deloitte LLP, with principal with the Cyber Risk
extensive experience designing Services practice at Deloitte &
and implementing IoT Touche LLP, US Advisory
applications for high-tech Technology leader, and a leader
manufacturers of Deloitte’s CIO Program
BRENNA SNIDERMAN
manager with Deloitte LLP, with
extensive experience designing
and implementing IoT
applications for high-tech
manufacturers
Sign up for Deloitte University Press updates at http://www.dupress.com
@DU_Press
About Deloitte University Press

Deloitte University Press publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. Our goal is to draw upon
research and experience from throughout our professional services organization, and that of coauthors in academia and business, to advance the conversation on a
broad spectrum of topics of interest to executives and government leaders.
Deloitte University Press is an imprint of Deloitte Development LLC.
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this
publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such
professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or
taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person
who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a
legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and
its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not
be available to attest clients under the rules and regulations of public accounting.
Copyright © 2015 Deloitte Development LLC. All rights reserved.

Member of Deloitte Touche Tohmatsu Limited

Key Questions To Ask About The: Internet of Things

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Key Questions To Ask About The: Internet of Things

Uploaded by

Copyright:

Available Formats

key

Will your organization be ready?

But how, exactly,

Digital breadcrumbs, analyzed with computational social science

Behavioral design thinking is indispensable when building the world

Hobson’s choice All’s well

Gridlock Customer is king

Take a hard look at who

To learn more, read “Power Struggle: Customers, companies, and the

Remaining vigilant to new or unexpected challenges is crucial to

A system’s resilience defines how quickly a realized risk can be

To learn more, read “Safeguarding the Internet of Things: Being secure,

Making visible previously Holistic, end-to-end

Companies can transform

Share your thoughts with the hashtag #DeloitteReview

JAMES GUSZCZA HARVEY LEWIS

JOHN LUCKER JOE MARIANI

EVAN QUASNEY IFRAN SAIF

About Deloitte University Press

Deloitte University Press is an imprint of Deloitte Development LLC.

Copyright © 2015 Deloitte Development LLC. All rights reserved.

You might also like