TellSpec: IoT device that can be a life-saver — and the killer app!

Posted on 10th December 2013 in design, environmental, health, Internet of Things, M2M

Whenever someone tries to dismiss the Internet of Things as a nice future vision, I love to rebut them with an example — such as the bassinettes in the Toronto Hospital for  Sick Children that allow doctors to diagnose a life-threatening infection a day before there are visible symptoms — that shows the IoT’s not only a reality, but is also saving lives!   That usually stops them in their tracks.   .

Now there’s a great new example on the horizon: the TellSpec food inspector.

In fact, because of the service’s three components, I’d say it’s a near-perfect example if you want to introduce the IoT to someone! Once in widespread use, it might well be the “killer app” that finally makes the IoT a household phrase — extremely useful (and easy to use), affordable, and allowing you to do something that couldn’t be done before.

For a variety of reasons, the rate of food allergies is increasing alarmingly, and adults with gluten allergies or parents whose kids are allergic to peanuts can’t always depend on package labels or appearances to warn them of when a given food may trigger a deadly attack of anaphylaxis. Then there’s the rest of us, who are increasingly dubious about whether our foods include pesticides, transfats or other unwanted substances. Or, we may just want to track our calorie consumption. TaDa! The TellSpec!

The crowd-sourced (yea! The people know best) system is a a classic IoT service, because it combines:

  • a device: the TellSpec scanner, which is small enough to go on a key chain — and would have been impossible without the revolution in sensors and nanotechnology (specifically, nanophotonics): its guts are a low-power laser and a spectrometer on a chip that measures the reflected light, analyzing any food’s chemical composition in less than 20 seconds. This kind of analysis used to require a bulky, stationary spectrometer.
  • analysis in the cloud: the data is transmitted to the cloud, where an algorithm analyzes the spectrum information. As you can imagine, doing this kind of analysis on a large scale and in real time was impossible until the cloud.
  • the app: within seconds, you get an easy-to-understand message that details the food’s components, such as transfats, caloric content, allergens, etc.

How cool is that?

The system is in prototype right now. They’re taking pre-orders now, for delivery in August. The scanner plus a year of the analysis support will be $320, and after that, it will cost $7.99 per month or $69.99 yearly. My normally acceptable range of cost for an app is $.00 or less, LOL, but even a cheapskate like me realizes that this is well worth the price.

What a marvelous invention, and what a proof of concept!

As always, I’m indebted to Postscapes for the tip on this one.

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Calculating Internet of Things ROI — important tool

Posted on 3rd December 2013 in design, Internet of Things, M2M, maintenance, management, marketing, Uncategorized

Just came across this video while researching how to calculate ROI on Internet of Things investments for the e-book I’m writing, and felt compelled to share it.

That’s because it may be hard to calculate ROI fully and accurately for IoT investments if you aren’t thinking in terms of what my friend/patron Eric Bonabeau always pounds into my head: what can you do now that you couldn’t do before?

In the case of the IoT, there are  several things, such as “predictive maintenance,” that weren’t possible before and thus we don’t automatically think of calculating these benefits. It will require a conscious change in figuring ROI to account for them.

According to Axeda CMO Bill Zujewski, there are 6 levels of M2M/IoT implementation, and there are both cost savings and revenue enhancements as you move up the curve:

  1. Unconnected: this is where most firms are today. No M2M/IoT investments.
  2. Connected, pulling data for future use: No return yet.
  3. Service: the investment begins to pay off, primarily because of lower service costs.
    1. Cost reductions:
      1. fewer repair visits  Now that you’re harvesting real-time information about products’ condition, you may be able to optimize operating conditions remotely.
      2. first-time fix rate increases: Now you may know what the problem is before you leave, and can also take the proper replacement parts.
      3. reduced call length: You may know the problem in advance, rather than having to tinker once you’re there to discover it.
    2. Higher Revenues:
      1. Greater customer satisfaction. Customer doesn’t have to pay as much for repairs, down-time is reduced.
  4. Analyze: Putting data into BI and other analysis tools to get greater insights. For example, understand what are bad parts, when they’re failing.
    1. Cost reductions:
      1. fewer service visits: instead of monthly service you may be able to switch to quarterly.
      2. lowering returns
      3. improve product design
    2. Higher Revenues:
      1. Increase product up-time: due to better design and more effective maintenance, longer mean-time-to-failure.
  5. Data integration: begin to integrate data with business processes.
    1. Cost reductions:
      1. warrantees (especially for industrial equipment): fewer claims if you can monitor equipment’s operations, warn owner if they’re using it improperly.
      2. recalls: reduced.
    2. Higher revenues:
      1. pay-as-you-go leases: as we’ve discussed earlier, you may be able to increase revenues by leasing products based on how much the customer actually uses them (which you can now document), rather than selling them.
      2. increased sales of consumables: you’ll be able to know exactly when the customer needs them.
  6. Reinvent the customer experience: According to Zujewski, this is where you “put machine data into the end users’ hands” through a smartphone app, for example, that gives them access to the information.
    1. Cost reductions:
      1. reduced calls to call center: the end user will be able to initiate service and troubleshoot themselves.
    2. Higher revenues:
      1. increases sales: your product will be enhanced, leading to more successful sales calls. You also may be able to charge for some of the new data access services that make the product better.

Zujewski concludes by saying that all of these changes combine into 4 major benefits:

  1. world-class service
  2. business insights (such as better understanding of how your customers are using your products) from all the data and analysis
  3. improve business processes: integrating data allows you to improve the way you perform current processes
  4. highly-differentiated offering due to to the apps and information you can provide users. “You end up demo-ing your apps vs. just the machines”

I was really impressed with this presentation, and it makes sense to me as a framework for calculating ROI on Internet of Things investments (I want to think about other benefits of the IoT that were impossible before to see if there are any other factors that should also be calculated).

I’d be really interested in your reaction: is this a valid methodology? what other factors would you also include?

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Best quick intro to the IoT that I’ve seen!

Posted on 18th November 2013 in agriculture, automotive, design, energy, environmental, government, health, home automation, Internet of Things, M2M, mobile, transportation

Following up on my last post, I’ve found what I think is the best quick intro to the Internet of Things!

“Internet of Things,” released today by the Center for Data Innovation (hadn’t heard of them! BTW, they also get points in my book for covering XBRL, the magic potion for data…) is a quick read: it has short intros to most of the major consumer-oriented areas affected by the IoT, from healthcare to home automation, combined with two examples for each of those topics. I hadn’t heard of some of the examples (thanks, authors Daniel Castro and Jordan Misra!), although most are frequently cited ones ranging from the Nest thermostat to the Vitality GlowCap.  All in all, they’ll show almost any skeptic that the IoT is already a reality and that it will change their life!

The report concludes with brief policy recommendations for government and business alike:

  • (for government agencies) lead by example, i.e., include funding for sensors in bridge projects, etc. Yea (you listening, Obama Administration?).
  • reduce barriers to data sharing (this harkens back to my Data Dynamite book: data gains value by being shared!).
  • give consumers access to their data (again, something I wrote about in Data Dynamite).
  • avoid inundating consumers with notices (a fine line, since they need to be informed, in plain English, about how their data will be used).
  • regulate the use of data, not the collection (in line with Mercatus Center’s advice)

All in all, a nice intro to the IoT!

BTW: Thanx to ol’ friend Pete O’Dell for turning me on to this report!

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IoT Essential Truths: Coordination

Posted on 1st November 2013 in design, Essential Truths, Internet of Things, M2M, maintenance, management

Just as I’ve written repeatedly about one of the “Essential Truths” of the Internet of Things is that we have to learn how to collaborate, there’s another “co- word” that’s crucial to realize its full potential: coordinate!

That’s brought to mind by news from this week’s Internet of Things World Forum in Barcelona, where SAP (full disclosure: I’m working on a project for them), and SK Solutions, the global leader in anti­-collision software (heck, I didn’t even know there was such a thing as anti-collision software, let alone that SK was the leader!) have teamed to create a system helping engineering and construction companies increase collision avoidance and protect workers through real-time information sharing.

I’d never thought of it, but modern construction sites are a nightmare in terms of the need for coordination, with huge cranes, a multitude of construction vehicles, and many workers on the site.

The system, being tested at a construction site in Dubai, is gathering actionable, real-time data (historical data is pointless when so many players are interacting right now!) from mobile field workers, equipment and operational processes.

When you think of it, it’s difficult to maximize productivity and cut costs on a job site because so many operations have to be coordinated.

Here’s how it works:

“SK Solutions deploys sensors on cranes and construction vehicles to pull data such as 3­D motion control via inertial motion unit, location via GPS and load weight, equipment usage and wind speed and direction. This data is loaded first into the Navigator real­time operating system and its on­board set of applications, including collision avoidance. The data is then fed through the SK Navigator Anywhere Agent, which uses SAP technology. Site and project managers monitor the equipment via a dashboard built with SK Asteroid, which uses the SAP HANA platform, SAP® 3­D Visual Enterprise applications and SAP LumiraTM software. SK Asteroid 360 Middleware is a cloud­based platform that provides connectivity to SAP® Business Suite software.”

That leads me to another “Essential Truth” of the Internet of Things:

We have to start asking, where are there situations where real-time data from a variety of sources could help coordinate inter-related activities to improve safety & efficiency and reduce costs?

Whether it’s coordinating hospital rooms, integrating supply chains or assembly lines — even traffic flow — there are situations everywhere in which the Internet of Things can improve productivity, reduce operating costs — and even save lives.

N.B. For those who are interested in what the prefix co- really means, it’s from a Latin prefix of the same name, and means together; mutually; jointly. Class dismissed..

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First survey of C-level execs’ view of the IoT

Posted on 30th October 2013 in 3-D printing, design, Internet of Things, M2M, management, manufacturing, marketing

For a big project I’m working on, I’ve fruitlessly combed the Web for surveys of C-level executives’ view of the Internet of Things — until now!

ARM has just released results of a worldwide June survey, “The Internet of Things Business Index: a quiet revolution gathers pace,” that included many C-level executives, which the Economist‘s Intelligence Unit did for ARM about respondents’ attitudes toward the IoT.

I’d strongly advise you to read the entire report for a reality check on the current state of the IoT (provided, of course, that the sample population really reflects corporate attitudes as a whole — in my mind, that’s a big if, because most companies just haven’t been disclosing much information about IoT initiatives. Of course that might be because they view IoT initiatives as a real strategic advantage!).

I was happily surprised, given the low level of business media coverage of the IoT until recent months, to see how many of those surveyed knew about the IoT and were actively involved in planning for corporate initiatives, although most of those initiatives were only in the early research stages and most companies weren’t convinced the IoT would be of major near-term benefit.

The report concluded that companies are taking the IoT seriously, although without a lot of public notice:

“The Internet of Things (IoT) is an idea whose time has finally come. Falling technology costs, developments in complementary fields like mobile and cloud, together with support from governments have all contributed to the dawning of an IoT ‘quiet revolution’. Now, after more than a decade of slow progress, the business community is beginning to look seriously at the IoT—to the extent that a mere 6% of business leaders believe that the idea of IoT is simply hype…”

Here are the major findings:

  • “over three-quarters of companies are either actively exploring or using the IoT. The vast majority of business leaders believe that it will have a meaningful impact on how their companies conduct business, yet there is some divergence about the wider effect it will have”
  • “optimism about the IoT is not yet matched by investment.” 96% expect to use the IoT in some way within 3 years, but they aren’t spending much on it: only 30% have increased their IoT spending by double-digits since 2012.
  • 61% think “companies that are slow to integrate the IoT into their business will fall behind the competition.” Consider yourself forewarned!
  • only 24% felt that the IoT would be “very relevant, used by the majority of the business” within the next 3 years.
  • “A lack of IoT skills and knowledge among employees and management is viewed as the biggest obstacle to using the IoT more extensively. To address these gaps, organisations are training staff and recruiting IoT talent, raising the potential for IoT talent wars. Others are hiring consultants and third-party experts, seeking to build knowledge and identify successful IoT business models.” (sounds like a lot of opportunity for our ilk!)
  • Here’s one that particularly resonated with me because of my relentless emphasis on collaboration as one of the “Essential Truths” of the IoT: “Companies must learn to co-operate with players across industries, including competitors…. businesses must be willing to adopt a different mindset. Successful IoT rollouts require interconnected networks of products and services, but few senior executives currently expect their business to become more co-operative with competitors as a result of the IoT. ” Oops: too bad for you — it ain’t just a technological shift, but an attitudinal one as well!
  • It’s going to lead to a data explosion. While companies think they’re up to this challenge, “….prior experience of storing and analysing large amounts of “big data” may lead them to underestimate the additional talent and skills needed to spot new uses and revenue steams emerging from it.” It will also increase needs for security and privacy. 

The Economist chose the ARM report as the setting to announce a new IoT Business Index, which will be updated to track progress toward actualizing the IoT. In the benchmark edition of the index, most businesses are in the “research” stage (at  point 4 on a scale of 1 to 10). They are more likely to use the IoT at this point for internal operations and processes instead of external products or services. As I’d expected, European companies are in the lead, and, among industries, manufacturing is the leading one. Hmm: wonder if that means a growing number are installing sensors on the assembly line?

The survey included 779 senior business leaders, among whom almost half (49%), were C-level executives or board members. The sample included:

  • 29% from Europe, 29% from North America, 30% from Asia-Pacific, and  12% from Latin America, the Middle East and Africa.
  • 19 industries. About 10% each from financial services, manufacturing, healthcare, pharmaceuticals and biotechnology, IT and technology, energy and natural resources, and construction and real estate.
  • The sample is evenly split between large firms, with an annual revenue of more than US$500m, and small and mid-sized firms.

All in all, I think this is an important reality check in terms of commercialization of the IoT. It seems that it’s increasingly on the corporate radar, but that hasn’t translated into a lot of concrete action. It will be interesting to track annual updates of The Economist‘s IoT Business Index to see if analysis turns into action.

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Dr. Joe Cafazzo — neat stuff on biomedical design!

Posted on 25th October 2013 in design, health

Empathy by design:

  • he’s a biomedical engineer. 
  • thinks we’ve lost empathy in design of medical devices
  • reminds me of “Design of Everyday Things” — what are engineers thinking???
  • talks about device to calculate location of Taliban — batteries went dead! Defaults to current position when you change batteries — called in bomb strike on themselves! Official explanation blamed the soldiers, not the engineer!
  • example of the butterfly ballot that threw the election to Bush
  • home hemodialysis turned out to help a lot of people lead better lives.
  • Asks: “What else can patients do????”
  • talks about Bant app for diabetics — more than 10,000 active daily users!!  Allows them to do self-monitoring. Private social media app lets the kids interact with their friends. The kids can get bonus points for iTune redemptions if they perform self-monitoring!! New version in beta, with more features. Gamification — kids are very competitive. VERY COOL!
  • did another app for adults, significant increase in compliance, health improved.
  • 30 days for a better heart app — you’d get a daily challenge that you could choose whether to do or not — 6,000 people did the whole 30 days.
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GigaOM’s Mobilize conference full of IoT insights!

Posted on 17th October 2013 in design, health, Internet of Things, M2M, management, manufacturing, marketing

I’ve been busy for the last two days, so I’ve only been able to view a couple of them, but from what I have seen (I’ll blog about specifics later), the GigaOM Mobilize conference has been an absolute goldmine of insights, especially into the nuts and bolts of the IoT. As soon as the livestream video is archived, don’t miss them!

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General Electric Keeps on Practicing What They Preach!

Posted on 9th October 2013 in collaboration, design, energy, environmental, health, Internet of Things, M2M, maintenance, management, manufacturing, marketing, services, strategy, transportation

I’m beginning to sound like a schill (no, not a typo, just a bad joke: short for [Curt] Schilling, the former Red Sox pitcher — sorry, I can’t get those guys out of my head today…) for GE, but it’s hard to argue with their impressive record of walking their talk about the “Industrial Internet,” their marketing term for the subset of the Internet of Things dealing with the industrial sector.

The latest evidence? A report today in the NYTimes‘ “Bits” blog that GE has just announced “14 more products that combine industrial equipment, Internet-linked sensors and software to monitor performance and analyze big streams of data. G.E. had previously announced 10 similar industrial products.”

Equally impressive, the Industrial Age behemoth turned nimble IoT leader said that by next year, almost all industrial products it makes will have built-in sensors and Big Data software to analyze the huge data streams those sensors will create.

Right now I’m writing an e-book on IoT strategy for C-level executives (not sure if I can disclose the customer — it’s a big one!) and GE VP of Global Software William Ruh, used the news to fire a shot across the bow at companies that are slow to realize a fundamental paradigm shift in manufacturing, product design and maintenance is well underway:

““Everyone wants prediction about performance, and better asset management… The ideas of speed, of information velocity, is what will differentiate the winners from the losers.”

You in the corner office: got your attention?

Equally important, given my insistence that the IoT is all about collaboration, GE simultaneously announced partnerships with Cisco, AT&T and Intel. It had already inked deals with Accenture and Amazon’s cloud subsidiary and has also invested in  Pivotal, an Industrial Internet app creator.

Smart companies will follow GE’s lead in radically reforming the product design process to capitalize on the rapid feedback on performance that the Industrial Internet products’ built-in sensors yield. According to Ruh, they’re switching to an iterative design process, with rapid changes based on data from the field:

“… G.E. is adopting practices like releasing stripped-down products quickly, monitoring usage and rapidly changing designs depending on how things are used by customers. These approaches follow the ‘lean start-up’ style at many software-intensive Internet companies.

“’We’re getting these offerings done in three, six, nine months,’ he said. ‘It used to take three years.’” (my emphasis)

That change is definitely going to make it into my e-book! Brilliant example of how the IoT, by allowing companies to think in terms of systems dynamics, especially feedback loops, will have profound impacts on the design and manufacturing processes, integrating them as never before (oh, and don’t forget, the data from the built-in sensors will also allow companies to start marketing services — such as leasing jet turbines, with the lease cost based on the actual amount of thrust the engines create)!

Combined, that’s definitely a paradigm shift!

Oh, I almost forgot. Here’s a brief rundown of the products themselves and the industries served. They are clustered under the Predictivity name, and are powered by Predix, a new IoT platform:

  • The Drilling iBox System (oil and gas)
  • Reliability Max (oil and gas
  • Field 360 (oil and gas)
  • System 1 Evolution (oil and gas)
  • Non-destructive Testing Remote collaboration (oil and gas)
  • LifeMax Advantage (power and water)
  • Rail Connect 360 Monitoring and Diagnostics (transportation)
  • ShipperConnect (transportation)
  • Flight Efficiency Services (aviation)
  • Hot SimSuite (healthcare)
  • Cloud Imaging (healthcare)
  • Grid IQ Insight (energy management)
  • Proficy MaxxMine (energy management)

Given the diversity of industries the Predictivity products serve and GE’s global clout, I predict this level of commitment will radically accelerate the IoT’s adoption by big business, as well as accelerating the payback in terms of lower operating, energy and maintenance costs, and reduced environmental impacts.

Will GE’s competitors in these sectors get on board, or will they be left in the dust?

 

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