Tuesday, April 10, 2018

Internet of Things - Connecting Devices to Human Value





We can define the Internet of Things as the next stage in the Internet as some do, whereby things and objects with sensors and actuators are connected to the Internet so they can gather, send and get data, leading to smarter solutions and in some cases also act upon data.

That’s how most of us see it. Wearable s are connected and enable us to send and receive data, vehicles get connected, home appliances, industrial assets, street lights, you name it. However, that’s just part of the story that looks at the what, rather than the why and how.

We define the Internet of Things as a network of connected devices with 
1) unique identifiers in the form of an IP address which 
2) have embedded technologies or are equipped with technologies that enable them to sense, 
gather data and communicate about the environment in which they reside and/or themselves.





The potential and reality of the Internet of Things does not lie in the ability to connect IoT-enabled objects nor in the embedded technologies and electronics such as sensors, actuators and connectivity capabilities. It resides in the ways the IoT is used to leverage the insights from data, automate, digitize, digitalize, optimize and in more mature stages transform processes, business models and even industries in a scope of digital transformation.

There are 7 crucial Internet of Things characteristics:
 
  1. Connectivity. This doesn’t need much further explanation. Devices, sensors, they need to be connected: to an item, to eachother, actuators, a process and to ‘the Internet’ or another network.
  2. Things. Anything that can be tagged or connected as such as it’s designed to be connected. From sensors and household appliances to tagged livestock. Devices can contain sensors or sensing materials can be attached to devices and items.
  3. Data. Data is the glue of the Internet of Things, the first step towards action and intelligence.
  4. Communication. Devices get connected so they can communicate data and this data can be analyzed.
  5. Intelligence. The aspect of intelligence as in the sensing capabilities in IoT devices and the intelligence gathered from data analytics (also artificial intelligence).
  6. Action. The consequence of intelligence. This can be manual action, action based upon debates regarding phenomena (for instance in climate change decisions) and automation, often the most important piece.
  7. Ecosystem. The place of the Internet of Things from a perspective of other technologies, communities, goals and the picture in which the Internet of Things fits. The Internet of Everything dimension, the platform dimension and the need for solid partnerships.

The Internet of Things (IoT) is growing rapidly, with 127 new devices connecting to the Internet every second. Although many new applications target consumers, including smart-home systems and connected cars, others help companies optimize operations ranging from manufacturing to customer segmentation. As IoT expands, companies’ connectivity expenditures will rise by about 15 percent annually through 2022. To capture this growth, connectivity providers will extend their coverage and investigate innovative technologies, including low-power, wide-area networks (LPWANs).
Such shifts could have major repercussions for companies that sell IoT devices or services. For many years, they relied on country leads to select connectivity providers, and the default choice was often the largest regional or local player. A few also asked systems integrators for provider recommendations, often with similar results. But as IoT becomes more important to the bottom line, companies must reassess their connectivity needs and make more nuanced decisions that consider global coverage, intelligent-switching capabilities, service delivery, pricing, security, and IoT expertise.

Strong intelligent-switching capabilities

Many providers are investigating two intelligent-switching technologies, both of which are relatively new. The first, intelligent mobile switching, enables IoT devices to shift seamlessly from one MNO or MVNO to another. It is still uncommon for IoT devices to have this ability. The second technology, intelligent platform switching, lets devices transition among unlicensed, cellular, and mobile platforms depending on their data-transmission requirements and other factors. No IoT devices are yet capable of platform switching, but some companies are increasing their investment in this area.

Mobile switching can take various forms. Some IoT players enable this capability through multiple international mobile subscriber identity (multi-IMSI) technology, which allows a single subscriber-identity module (SIM) card to be assigned numerous local numbers, including those for different countries (Exhibit 1). This tactic keeps roaming charges lower than those obtained through bilateral agreements with other providers. Since multi-IMSI networks are still not widely available, most companies cannot take advantage of them and still incur roaming charges.

Embedded universal integrated-circuit cards (eUICCs), an emerging SIM technology, may eventually represent a better solution than multi-IMSI for mobile switching in IoT. Each eUICC hosts profiles of multiple MNOs that users can remotely add or remove on demand, potentially giving them more control over roaming costs and quality than multi-ISMI technology.

Customized pricing

Most IoT connectivity providers offer multiple pricing plans with different data limits and other features—one plan might have low set-up fees and high overage charges while a second offers the opposite. When evaluating their options, most companies choose a standard plan, rather than requesting a customized offering, because they lack insight into their connectivity needs and usage patterns. Without this information, they often pay for unnecessary features, such as a data-volume allowance that far exceeds their requirements.
The creation of a customized pricing plan may seem daunting, but a simple approach can help. As a first step, companies should determine how employees are using IoT devices within their organization, as well as how customers are using their IoT-enabled products. During this analysis, they should focus on their most important use cases, which can relate to internal operations, customer needs, or both. Companies can then classify their organization into one of three categories based on data needs (low, medium, or high). Roaming and connectivity requirements, as well as the need for overage protection

Emphasis on security

As IoT implementation increases, so will threats from hackers. When companies are trying to determine how well connectivity providers can combat such intrusions, they should focus on three areas: infrastructure, endpoint security, and encryption techniques.

Infrastructure

Most providers offer strong network-design measures and process-design protection, including traffic separation and access management, but there may be important differentiators related to technology-design protection, including firewalls. Companies should also gauge how quickly providers can respond to hacker intrusions.

Endpoint security

Most IoT players are reluctant to require device authentication, a process in which a machine’s credentials are compared to those on an authorized list to determine if it has permission to access the system. But the cybersecurity threats to IoT may require them to reconsider this stance. For instance, they might decide to ask device users to enter passwords before connecting a device to IoT, and would thus need providers who can support this capability. IoT device manufacturers must also fortify their systems through signature detection (determining that a device is infected and communicating with hackers) or by looking for traffic anomalies. The ability to spot traffic aberrations in real time could give providers a great advantage.

Encryption standards

Cryptography—the process of transforming plain text into encrypted text—is essential to protecting the integrity of data transmitted over IoT and keeping them confidential. But companies should keep in mind that all encryption processes are not created equal when evaluating providers. For example, they should seek providers with encryption methods that allow for agility—in other words, those with base algorithms that can easily adapt and evolve in response to an attack. In addition, companies should ensure that providers follow best practices for cryptography. Consider issues related to crypto keys—the algorithms that encrypt text. If a provider uses a system-wide crypto key, hackers that unlock the code could breach its entire organization.
While many connectivity providers are strong in one or two of these areas, few offer comprehensive security solutions that incorporate all three defenses. Unless they step up their game, IoT players will need to contact cybersecurity specialists for additional protection.

IoT connectivity expertise

As IoT connectivity requirements increase in complexity, and as options continue to multiply, companies will need providers who can advise them about the best solutions and potential partnerships. These providers may include both start-ups specializing in IoT and established players in the mobile sphere.
As discussed, companies appreciate contracts that include tailored pricing based on data usage and roaming. But the best providers will take customization beyond that by looking at each customer’s top use cases and considering their specific requirements—for instance, the typical frequency of data transfer and reliability needs. With this information, they can identify the best connectivity solutions.

 

References:  https://www.youtube.com/watch?v=uEsKZGOxNKw  Internet of Things Simplified
https://www.mckinsey.com/industries/high-tech/our-insights/unlocking-value-from-iot-connectivity-six-considerations--for-choosing-a-provider
 Images Courtesy: Google Search

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