Internet of Things – Tipping Point and Opportunities

internet_of_things_overviewAs wrote in my previous article “Internet of Things – Risks”  (http://tinyurl.com/jp4hjg9), IoT will have a huge impact in our life and, besides risks, it has also benefit. IoT helps companies increase productivity, deploy new business models, reduce costs and support the development of new products and services.

Everyday more devices are getting connected to the Internet, for example: cars, thermostats, home appliances, medical equipments, vending machines, water meters and building security. All these devices, and many other under current developments, will transfer information between each other to facilitate our life (in theory).

IoT hardware infrastructure is based on cloud storage, data sensors, networks and this environment works with Apps and programs.

Let’s see some useful applications of this technology in daily life, considering for example two important locations: workplace and home.

In a smart factory, IoT improves the inventory management because the system manages independently the lack of supplies by sending an electronic purchase order to the supplier. Furthermore, it can determine quicker the level of production based on the sales at POS (Point of Sale). A smart device sends inputs to the drones for pickup and delivery of goods. In case of breakdown, the smart machine analyzes the issue and sends a request for maintenance (with an accurate report of problem) to the technician .

In a smart home, a central computer determines the actions for a “welcome home”  based on the settings. For example, it communicates with thermostat for the heating, switch on the oven or microwave with pre-made food in it and switch on the lights on the porch. It recognizes your car and opens the garage for you, raises the window blinds and deactivates the alarm system. The sensors installed in rooms notice the person presence and acts on the lighting. A facility panel can summarize, for instance, the consumption status of water, electricity, gas and it shows the level of security.

These progresses were possible due to different reasons, such as:  progress in computing, storage and analytics; increase of mobile devices usage and technology cost reduction.

I expect more usage of  IoT in coming years and it will be part of our daily life. This means that now the game to become leader in the sector is open. The market value was $655.8 billion in 2014 with a projection of $1.7 trillion in 2020 and a compound annual growth rate (CAGR) of 16.9% (souce IDC, http://www.idc.com/getdoc.jsp?containerId=prUS25658015).

More players will join this table, for example ones which build and sell appliances because now they have the opportunity to expand their business with IoT solutions.

Consumers will appreciate other benefit, for example improvement of energy efficiency, costs reduction (E.g. automation of work place), service improvement and management (e.g. healthcare system, transportation and purchase of goods and services).

I conclude saying that we are only at the beginning of this technology but IoT implementations are quite promising.

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