IoT (Internet of Things)-The Next Technological Revolution.

With the Internet of Things ( IoT), we are at the dawn of a new revolution, which could be compared with the digital wave that will going to create massive impact on every Industry and customer . With the adaptation of digitalization / IoT,?industry is witnessing??immense value addition for?consumers / business .?

As IoT devices?are becoming a part of the mainstream of?Human life / Industry?and?people / Industry?are adopting smart devices into their?Industry / homes faster than ever.

So, how can we generate value in this new game ?

In order to understand the impact / Game of IoT, we need analyze the historical data first.

The birth of IoT

The term Internet of Things is 16 years old. But the actual idea of connected devices had been around longer, since the 1970s. previously, the idea was often called “embedded internet” or “pervasive computing”. But the actual term “Internet of Things” was introduced by Kevin Ashton??in 1999 during his work at Procter&Gamble. Ashton who was working in supply chain optimization vertical, wanted to impress senior management’s with a new exciting technology called RFID (Radio frequency identification).As the internet was the popular trend in 1999 and because it somehow made sense, he presented his proposal work with “Internet of Things”.

The concept of IoT started to gaining popularity in 2010. Information was leaked that Google’s StreetView service had not only made 360 degree pictures but had also stored tons of data of people’s WiFi networks. People had started debating whether this was the start of a new Google strategy to not only index the internet but also index the physical world.

The same year (2010),?the Chinese government announced their Five-Years strategic priority on Internet of Things .

In 2011 the theme of Europe’s biggest Internet conference LeWeb was the “Internet of Things”. At the same time popular tech-focused magazines like Forbes, Wired starting using IoT as their vocabulary to describe the phenomenon.

IoT Statistics: What is the IoT Market Size?

-In October of 2013, IDC published a report stating that the Internet of Things would be a $8.9 trillion market in 2020.[^2]

-IDC Forecasts Worldwide Spending on the Internet of Things to Reach $745 Billion in 2019, Led by the Manufacturing, Consumer, Transportation, and Utilities Sectors )[^2]

-In 2015, the global wearable market had already increased 223% from the previous year (and data on Statista shows it increasing by another 243% between 2015 and 2022 )[^1]

-Bain predicts the combined markets of the Internet of Things (IoT) will grow to about $520B in 2021, more than double the $235B spent in 2017. [^3]

-McKinsey Global Institute estimates that the IoT could have the Total Economic Impact of IoT Could Range Between $3.9 and $11 Trillion per Year by 2025 [^4]

-The global?Internet of Things (IoT) in Energy reached USD 6.8 Billion in 2015 and is expected to reach USD 26.5 Billion by 2023 by expanding at a Compound annual growth rate (CAGR) of 15.5% during the period 2016-20233 [^5]

-IoT will add 15 trillion dollars to the global economy over the next 20 years.

IoT Statistics: How Many Internet-Connected Devices Are There?

-By 2020, it is estimated that there will be up to 21 billion connected devices to the internet. IoT devices will be an Integral part of our interaction with device how we interact with basic everyday objects.

-Every Second, Another 127 Devices Are Connected to The Internet

-Over 80 Percent of Industrial Manufacturing Companies Are Using or Planning to Use IoT Devices[^6]

-Industrial Internet of Things (IIoT) applications are relied on by 64% power and energy (utilities) companies to succeed with their digital transformation initiatives

-There Will Be 3.5 Billion Cellular IoT Connections by 2023

Sources / References :-

[^1]: Source: https://www.statista.com/statistics/437871/wearables-worldwide-shipments/

[^2]:Source: https://www.idc.com/getdoc.jsp?containerId=prUS44596319

[^3]:Source:https://www.bain.com/contentassets/5aa3a678438846289af59f62e62a3456/bain_brief_unlocking_opportunities_in_the_internet_of_things.pdf

[^4]:Source:https://www.mckinsey.com/industries/semiconductors/our-insights/whats-new-with-the-internet-of-things

[^5]:Source: https://www.researchnester.com/reports/global-internet-of-things-iot-in-energy-sector-market-global-demand-analysis-opportunity-outlook-2023/256

[^6]:Source: https://www.vxchnge.com/edge-computing

In just one year alone, we went from having 5 million IoT devices connected to the internet to billions. The future is happening now, and these devices are getting smarter every day through machine learning and artificial intelligence-In short span of one year ,number of devices connected to internet have surge of 5 million.These devices are shaping the future of technology .With the modication in core business/ Industrial technology , & support of Srnsors ,Machine learning,AI and Data analytics these the older technology is going to more smarter ,Powerful & Profit oriented.

So above analysis paints a pretty clear picture towards the Technological revolution :

How to Define the Internet of Things-

-The Internet of Things is the next industrial revolution.

-The Internet of Things is a business revolution enabled by technology.

-The Internet of Things will impact everything and everyone, in our businesses and in our day-to-day lives.

“The Internet of Things is a network of Internet connected devices that communicate embedded sensor data to the cloud for centralized processing”

OR

“The Internet of Things is the network of physical devices that combine IP connectivity with software, sensors, actuators, and other electronics to directly integrate the physical world into our computer-based systems, resulting in efficiency improvements and economic benefits”.

if we browse the internet for the term IoT or Internet of Things, there are lot of definitions and there are a lot of people are trying to define exactly what IoT is.

Simply, IoT involves three essential components :-

1. A device-side (made up of individual devices) that acts as a data source.

2. A cloud-side that gathers data and provides resources for analyzing it.

3. Based on Data analysis effective solution can be achieved in order to Optimism the Opex (Operating cost).

Considering above three essential component of IoT,we can collect the data, we can analyze it, we can store it, we can apply a machine learning techniques to that data, and then we can run business intelligence programs to analyze the data and provide the meaningful information / Solution in order to reduce the operating cost for any business in effective manner keeping Quality & accuracy of desired work / Business output.

Basic work flow of IoT Business model.

With Effective IoT application what we will get in Business.-

1.Improved productivity from the automation of processes

2.Enhanced Asset Utilization

3.Improved Performance / Optimized operating Efficiency.

4.Create Innovative Service / Solution .

5.More informed strategic decision-making

6.Improved profitability with reduction in Operating Cost (Opex).

7. New Revenue Scheme .

Is IoT a Unique Solution or new Invention ?.

In some ways, the core value proposition?of IoT has been around us for centuries.

Even before the existence of the Internet (early as the 1960), people have been, out of necessity, using data to make decisions. A shop keeper keeps close observation on inventory to determine what people tend to buy and ensures her / his shop is well stocked with those items.

Engineers examine / do analysis of the?equipment for early sign of failure & use that information / data to anticipate upcoming maintenance and keep provision for budgets against it .

The best examples of IoT application are in energy,oil & gas sector & similar Industry, wherein some extent of IoT concept already exists.During the plant operation online Data are generated (with the help of Transmitter / Thermocouple/ Switch etc) on the DCS (distributed control system) & stored in local Drive / Remote Server . These on line process generated data are monitored in centralised control room (CCR)?by Desk operator & associates. If any troubleshooting / failure occurred during plant operation,based on the generated process data root cause analysis need to done for effective solution by competent?person iin Plant or same can be referred to industry expert (engineering centre) for further analysis & resolution. But the complete IoT implementation is expected in near future, through which the existing technology of energy sector will be more optimized & efficient.

For Industry application -?Based on scheduled / condition based maintenance Strategy analysis, it is found that only about 15% to 20% of?equipment failures being age related, and the other 80% to 85% being totally time-random events,Which effects the business largely.

Another fact is that due to human interference / Observation, there is probability of error / misjudgment, which effect the business result & ultimately loss of revenue.

So with help of IoT application hundreds of millions of individual pieces of hardware from cars, to bridge, to parts of big equipment data are collected , stored, and analyze?to give us real-time intelligence on the things we care about.

Industry verticals that have a high adoption rate of IoT application are

1) Telecommunication ,2) Automobile / Smart vehicle,3) Energy & Utility (Thermal , Solar ,Nuclear) ,Oil & Gas, 4) Agriculture, 5) Smart Building ,6) Smart City, 7) Healthcare, 8) Logistics /9) Inventory Management, 10) Retail ,11) Manufacturing.

So Is it IoT having simple technique to provide solution for any business model ?

Of course, once we?go in details of it.?We will find that both the device-side and the cloud-side involve complicated implementations that provide several of required features, and even the communication between the device and cloud requires secure communication protocol.

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Finally at the end of this atricle ,we have several curiosity regarding IoT ,you might be curious to know below:

Who are consumers of IoT business?, How is architecture of IoT .What are the devices required for IoT application ? , will digitization based on IoT concept will hit current Job Market? .What Type of device required for implementation of IoT application. Is it any security issue as data will be shared on large scale .Does these classified information /data of Industry or Individual sharing having any threat? How these threat are taken care while developing IoT solution against any business model.

What are the Technology / methodology used for development of IoT business model & their effective implementation?

If you are curious to know more about IoT than i can say objective of this article is achieved.

I will try to cover answer of these Questions in my upcoming articles & Try to cover as per my best knowledge & experience

Thanks & Regards

Ashish Kumar

[email protected]

+91-9899912011

#digitaltransformation #OpexandCapexOptimization