The Potential of the Internet of Things Graham Patterson

Abstract The Internet Of Things is taking over from Big Data as the current technology must have and needs to be considered when developing any Technology Strategy. The Internet Of Things, usually referred to as IoT, represents a culmination of various developments providing cheap processors, ubiquitous networks and the ability to crunch large amounts of data. IoT devices are appearing almost everywhere inside the home and the consumer world as well as inside industry where large engineering companies such as Roll Royce and Siemens are looking at their business model based on better information about how their products are performing. At the boundary of the consumer and industrial environments IoT is making an impact with areas such as healthcare and energy supply becoming increasingly connected and managed. Overall, the IoT presents an opportunity to improve many aspects of consumers’ and business’ life by collecting and collating data in real time to provide actionable insight. Security and privacy issues need to be addressed, but they are being worked on from a technical standpoint. The human side of information protection may take longer to right and there will be scare stories before people start to take personal information seriously. The estimates of the economic value of IoT are huge – between $1.1Trillion and $1.9Trillion over the next ten years. With this sort of opportunity, organisations will need to look at how they will use the IoT or risk being sidelined by new movers. Understanding how to exploit the market is essential, not just for consumers, not just for manufactures, but for every company and organisation that has anything to do with data, or processing.



What is the Internet of Things?

before they become failures. By connecting more together there is an

The IoT has replaced Big Data as the

Transport can become more efficient if there is better information about roads, or

current buzz phrase across the technology world and the volume seems set to increase. But what is the Internet Of Things? There are almost as many definitions as devices; Gartner say “The Internet of Things (IoT) is the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment.”1 . The important parts here are communication and interaction. The availability of cheap microprocessors, embedded in just about everything in the home, and of cheap general purpose computers, which can be linked to all sorts of sensors, has helped to drive the growth of IoT. Utilising the ubiquitous availability of high-speed internet connectivity these devices are free to interact in a way that makes communication worthwhile. Messages can be meaningful and provide data that can be acted upon in real time. The real power of IoT is the ability to connect and process sensor information from multiple sources and then to make decisions based on that information. Examples uses are widespread and include being able to use electricity for washing and drying clothes at the lowest cost electricity periods, even when those periods are dynamic, to managing the

opportunity to reduce energy needs.

trains, or weather, and they are brought together for the consumer and business to act on. The more things are interconnected, the more information is becoming available about how we live and the more opportunity there is to merge data to give information patterns. This is the other side to the seemingly unstoppable invasion of IoT devices. There are increasing number of reports of these devices being hacked. Added to the problems of devices being hacked there is an increased amount of information being sent to large organisations. Much of this data is limited and of itself insignificant, but a lot of small pieces can be brought together to provide more and potentially significant insight into how people or industry operates. Most of this data is being gathered without consumers realising the significance when it is used together.

Internet of Lots The IoT is mainly associated with sensors and actions and there are lots of applications and devices available. Any trip to a local electrical store will evidence the number of ‘Smart’ devices on sale. There are many burglar, fire and CO2 detectors that can be connected. Philips

maintenance of trains to repair faults

has a range of lights that are controlled through a central hub to provide just the



right lighting in just the right tones at just

1

http://www.gartner.com/it-

glossary/internet-of-things/



the right time2. Google bought the Nest heating control company for $3.2bn and

Internet of Smarts

have worked hard to increase the

Almost everybody that advertises their products as internet connected makes a

connectivity of devices and the use of Nest as a home hub3. However, it is not just the home that becoming more connected to the IoT. London busses are tracked using the iBus system that can monitor position to within about 10 meters and allow real time timetable reporting at bus stops. The Rolls Royce Engine Health Management system uses sensors and live satellite communications to track the health of aircraft engines worldwide4. There are numerous other examples from oil exploration to parking where the IoT technology is bringing change and benefits. Overall the number of connected devices and the amount of data being shipped will, without doubt, increase. As the items in the home become smarter, they increasingly rely on Internet interactions to carry out tasks. The number and diversity of things connected to the Internet have led Cisco to refer to the ‘Internet Of Everything’ and the ways that sensing and control can be applied is only just starting to become apparent.

big play on the fact that you can use a mobile phone app to drive it. A mobile phone may be an easy replacement for a remote control, but it does not make the actual thing Smart. You may end up with fewer remote controls, but combined controls for TV, Satellite, PVR and audio have been available for a long time. Using your phone as a combined control, especially when you can do it from the other side of the world may seem cool, but the novelty can soon wear off unless there are real time saving or functionality improvements. In a very good blog post “The Internet of Things You Don’t Really Need”5 Ian Bogost makes his point about what you need by discussing a remotely readable gauge for barbecue gas bottles. While it might be interesting to be able to read how much gas you have left in the bottle on your phone it is not really a Smart device? A Smart answer would be a service that looks at weather forecast, your social media chat and how much gas is left before deciding which retailer has the best deals and suggesting that you place an order for delivery before the weekend.

2

http://www.philips.co.uk/c-m-li/hue-personalwireless-lighting 3 4

https://nest.com/uk/

http://www.rolls-royce.com/about/ourtechnology/enabling-technologies/engine-healthmanagement.aspx#sense

5

http://www.theatlantic.com/technology/archive/ 2015/06/the-internet-of-things-you-dont-reallyneed/396485/?imm_mid=0d4868&cmp=em-IoTna-na-newsltr_20150702#disqus_thread



The point is that just being connected to an app is only part of what lets a device

digital health news reported, “Apple has

join the Internet of Smart Things. The

researchers to collect medical data

information needs to be something actionable without requiring a large amount of human intervention.

Internet of Health There are limits as to how much we want to happen automatically and the growth of health apps is starting to expose them. Having decisions about the servicing of jet engines made on information from a multitude of sensors is one thing, but what about medical decisions? Apple has spent a lot of money adding heath apps into new versions of IOS and adding health related interconnection to the Apple Watch6. Other companies such as Fitbit have been doing this for a while, but the Apple launch gives these devices the establishment’s seal of approval to being able to track your health and fitness with a wearable device. That is fine for people who are doing the monitoring themselves, but some app providers are taking it further. There are many apps that allow healthcare information, together with allergy and history information to be shared with a physician. This allows their data to be considered, along with any other information, in deciding on treatment. US Health Care company Cerner is looking to use Apple Watch to integrate patient generated data with online medical records. As 6

https://www.apple.com/watch/health-andfitness/

also developed ResearchKit, which allows directly from patients using an Apple device.”7 Once a medical treatment has been agreed, the monitoring of how well you are keeping to the regime can be managed by devices delivered by such initiatives as a strategic alliance between Philips and Salesforce8 to bring specific medical information into a Customer Relations Management service using cloud technology. This is designed to reduce the need for patients to attend clinics, reduce the number of visits from healthcare professionals and to provide a better service to the patient. It is possible to question if this growth in wearables and eHealthcare is really part of the Internet of Things or just a development of increased Digital working. Most eHealth devices being introduced into homes for patient monitoring, such as a smart medicine dispenser, match the Gartner definition for IoT. In reality this is the IoT and increased Digital working, the two go hand-in-hand, but running, not walking. With a move to treat more people in their homes, being able to monitor them all the time makes sound financial and medical sense.

7

http://www.digitalhealth.net/news/EHI/9971/cer ner-app-on-time-for-apple-watch/ 8

http://www.salesforce.com/company/newspress/press-releases/2014/06/140626.jsp



The moves have been generally welcomed by the Royal College of

Given the potential for major disruption that power outages could cause and the

Nurses, subject to the appropriate

reports about the hacking of Smart

controls on such things as sharing of information9.

Meters in Spain,12 even if these have not been attacks ‘in the wild’, it is good to see

Internet of Security

that the GB Smart Meter programme has taken the threats very seriously. Each

There are aspects of the IoT that give cause for concern. As homes and industry become more dependent on IoT, connectivity for operation and the security around these connections need to be solid, not open to attack from hackers and other groups. Nitesh Dhanjani has an interesting book, at time of writing in early release from O’Reilly, called “Abusing the Internet Of Things”10. This considers various hacks and attacks that can be made on common IoT devices such as Philips Hue light bulbs and baby

component of the equipment described in the Smart Metering Equipment Technical Specifications13 must implement a set of Security Characteristics. Development of the security architecture has involved CESG, the UK’s definitive voice on the technical aspects of Information Security in Government, in the design and specification of the Security Characteristics14 expected to be exhibited by security products of a certain category, based on their understanding of technology and threat.

alarms. Switching individual lights on and off might only cause annoyance, but

Looking at the technology and uses of the IoT, the need for sensors, systems and

hacking into computer controlled cars, or Smart Energy networks, or healthcare

actions to be integrated to get real

provision, has the potential for major disruption across whole sectors of the

benefit is clear. In the industrial IoT the security of devices and of their

economy and puts lives at risk. The

interconnections is approached with layers of countermeasures to attack, but

potential risk to life has been thrown into sharp relief by the recall of Fiat Chrysler

what about the IoT in the home and personal applications? Most people that

for a software upgrade following reports that hackers had taken control of cars

are using IoT devices will rely on the developers and service providers for

using off-the-shelf components11.

security.



12 http://www.bbc.co.uk/news/technology29643276

9

http://www.rcn.org.uk/development/practice/ehealth 10

http://shop.oreilly.com/product/063692003354 7.do 11

http://www.wired.com/2015/07/hackersremotely-kill-jeep-highway/

13

https://www.gov.uk/government/uploads/syst em/uploads/attachment_data/file/381535/SMI P_E2E_SMETS2.pdf 14

http://www.cesg.gov.uk/servicecatalogue/Pro duct-Assurance/CPA/Pages/SecurityCharacteristics.aspx



We can expect to see more reports of home controls being hacked. We can

text based information, even though

probably also expect to start receiving

private pictures on Facebook. The

reports of data misuse where large datasets are combined to find out more about the person or organisation and their habits. For some time it has been worrying how much your credit card, store loyalty card, or phone, knows about you. Those concerns may soon need to be extended to wristbands, watches and any of the other IoT devices we choose to use.

Internet of Consent Smart televisions are Internet connected,

millions of people are happy to post their knowledge about who is doing it, and when, seems important. People are concerned that they are being spied on in their own homes without their knowledge and the New Experience research found that users wanted a kill switch to be able to switch off all camera broadcasting. Individual consumers as well as large corporations need to consider what information is being transmitted and what it could be used for. The development of

with Samsung15 and LG16 using powerful

Big Data functionality has made it possible for large quantities of data to be

central computing facilities to carry out

mined for patterns, information and

functions such as voice recognition. This

vulnerabilities. The IoT means that production of large amounts of data from

raises the prospect of everything said in the room being transmitted over the Internet, just in case it includes a command for the television. But are people really worried about this exchange of personal information in return for convenience? Research by New Experience17 indicates that people are more concerned about some forms of

sensors and devices is becoming the norm rather than the exception. By putting these together much more subtle insights than just when we are away on holiday, or what TV we are watching, is possible. Perhaps we should consider a kill switch to stop all data leaving the home, not just pictures and sound.

data. Their studies show that we regard photos or videos as more sensitive than

Internet of Potential



In a way the IoT is a convenient label for a

15

http://www.theguardian.com/technology/2015 /feb/19/samsung-smart-tvs-send-unencryptedvoice-recognition-data-across-internet 16

http://www.consumerreports.org/cro/news/20 15/02/who-s-the-third-party-that-samsung-andlg-smart-tvs-are-sharing-your-voice-datawith/index.htm 17

http://www.newexperience.com/_downloads/Smart%20devices_th e%20emerging%20user%20experience_HCID%20O pen%20Day_City%20Ineraction%20Lab_30.4.pdf

movement that has been happening for some years. The cheapness of microprocessors has long seen them replace mechanical devices for all sorts of forms of control, from washing machines to airplanes.



What has changed is the ability to connect easily and the ready availability of processing in the cloud. Connectivity in homes, coffee shops, offices, factories and increasingly anywhere with WiFi and phones means that it makes more sense to send information to be processed, analysed and acted upon rather than to try and carry out that computation locally.



Summary Though there is a need to look at the security, the consent and the potential for misuse, the economic potential is vast. Estimates vary between $1.2T and $1.9T over the next decade depending on which research and what exactly is included. At this sort of value the draw for venture capital to back start-ups is inexorable. Though the big technology players are flexing their muscles with purchases, there are still many innovative well-funded companies coming into the market. IoT is going to affect nearly all areas and types of technology in the coming decade.

This means all organisations need to think about the potential impact of IoT and plan how they will make current Digital initiatives ready, not just for mobile, but also for sensors and everything that comes with IoT implementation. Excluding the IoT in any business or technology strategy risks one’s organisation becoming out of date very quickly.

Any

existing strategy and architecture needs to be reviewed to ensure that it will still be agile enough to support the changes that will be needed in response to an increasing interconnection of small things, sensors, gauges and controls. Since it was founded in 1987, ASE Consulting has been working with organisations to define and develop Technology Strategies and Architectures to meet the challenge of new and innovative developments. We have a history of helping business to evolve and embrace change. We believe that organisations will require this type of experience and knowledge in order to meet the challenges and opportunities presented by the Internet Of Things.

About the Author Graham Patterson is a Managing Consultant at ASE Consulting specialising in Strategy Development, Enterprise Architecture and Architecture driven delivery. Graham has worked with various government departments covering Justice, Health and Benefits. He is a Fellow of the BCS.