IoT Essential Truths: Just Because You Can Do It Doesn’t Mean You Should

Posted on 9th December 2013 in Essential Truths

Whilst (aren’t I the Anglophile?) walking the dog this morning, the “social sensing badges” that I’d slammed a while ago as crossing my personal line in terms of invasion of privacy popped into my head.

As I thought more about these monitors of your personal interactions in the workplace, I thought that one of my comments about them deserved elevation to the level of one of my “Essential Truths” about the IoT (i.e., such basic principles that they should be considered throughout the design and launch of any IoT service):

Just because you can do it doesn’t mean you should do it!

Primarily, it seems to me this adds a crucial ethical component to the IoT, which should never be far from our thoughts because of the omnipresent issues of privacy and security that pervade so many IoT services. In the case of the “social sensing badges,” Sociometric Solutions paints a strong case for how their badges can lead to a more productive workplace, but, IMHO, that fails to outweigh the omnipresent invasion of workers’ personal privacy that the badges represent, especially in today’s poisonous workplace environment (that’s my judgment: love the humane workplaces that prove me wrong!).

Medical solutions should particularly be subject to this test, because the information they gather and diffuse is so personal and potentially harmful. I am a huge fan of these solutions — many can literally save your life, while most will improve your quality of life — but I think they carry with them the need to place heavy emphasis on privacy and security protections if they are to be introduced.

And there’s a corollary to this Essential Truth that companies need to keep in mind:

Just because you can do it doesn’t mean I have to buy it!

That one comes to mind every time I read a breathless new update on the IoT’s Holy Grail. I speak, of course, of the “smart refrigerator!” I’ll grant you that each iteration does add more services, but suffice it to say that I ain’t making a down-payment on any of those on the market, and I doubt whether I ever will!  Why? I don’t buy a lot of prepared refrigerated foods, and I’m making at least a half-hearted effort to eat locally and farther down the food chain. Veggies and grains from the bulk bins at my store don’t come with bar codes, so I can’t personally see paying a premium for a fridge that really isn’t going to fulfill the promise of monitoring my food intake and generating my shopping list. If you’re contemplating a new IoT solution, make sure it’s really worthwhile, vs. just a gimmick.

I’m not sure where I stand on the issue of whether a new technology is essentially good or evil (except for the A-bomb…) or whether it’s ethically neutral.  However, I do think that the IoT, by virtue of its great strength of generating such high volumes of real-time data, does continually bump up against ethical questions, so it’s just smart policy to constantly think of whether you should do it just because you can.

What do you think? I’d love your thoughts on this important issue!

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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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Two good sites if you’re introducing the IoT

Posted on 13th November 2013 in agriculture, cities, energy, environmental, health, home automation, Internet of Things, M2M, manufacturing, marketing, transportation

Categorize this under “posts I’ve been meaning to write for a long time!”

For the current writing assignment I’m working on, I’m looking for as many good examples of practical Internet of Things applications that are available right now.

There are two sites that I repeatedly go to for those examples that deserve some praise.

postscapesOne is Postscapes, which I find to be an important all-around IoT news source. It features products (and links to their sites) in the “Body,” “Home,” “City” and “Industry” categories, as well as a DIY/Open Source grouping. The descriptions are well written and it’s attractive.

The other site is a corporate one, from Libelium, the Spanish open source sensor platform. A portion of its site is devoted to “50 Sensor Applications for a Smarter World,” grouped under “Smart Cities,” “Smart Environment,” “Smart Water,” “Smart Metering,” “Retail,” “Logistics,” “Industrial Control,” “Smart Agriculture,” “Smart Animal Farming,” “Security and Emergencies,” “Domotic and Home Automation,” and “eHealth.” There’s a wealth of accompanying information about — surprise! — the Libelium sensors that are matched to each of these applications. Of course it’s marketing for Libelium, but the range of applications does illustrate the wide range of ways that the IoT is already affecting industry, cities, and personal lives.

Check both sites out — and point your skeptical contacts who wonder if the IoT is just a laboratory curiosity to them!

 

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White House recognizes IoT with Smart America Challenge

Posted on 11th November 2013 in government, Internet of Things, M2M

I’ve been critical of the Obama Administration in the past (except for the FTC, which is increasingly active in the field) for ignoring the Internet of Things.

Now there’s news that things are changing — slightly.

The White House has announced the SmartAmerica Challenge to build several IoT “test beds” by next April. It will hold a workshop Dec. 12th to kick off the project.

The goal:

“The SmartAmerica Project is bringing together organizations with cyber-physical systems (CPS) technology, programs and test beds to demonstrate the potential to improve safety, sustainability, efficiency, mobility, and overall quality of life. The purpose is to elevate awareness of the exciting opportunities possible through CPS and demonstrate what can be done today with cutting edge communication technology.”

The White House asks groups that want to be considered for the program to send one-page descriptions of their r & d “and include possible scenarios for the proposed interconnected set of disparate test beds and identify the potential benefits …. Actual test beds will help demonstrate the benefits and practical operational requirements of these interconnected disparate systems on a smaller scale and in real time – creating valuable experience and protocols for full-scale operation of such systems” (we may be dealing with cutting-edge tech here, but it’s reassuring that the program can still be described in Washington-speak …).

Evaluation criteria include: “Successfully interconnecting different test beds requires a high confidence network, seamless connectivity on many levels, robust security in any communication mode, and the use of open easy-to-use data architecture.”

“‘Our goal is to come out at the end of the day with two or more, but less than five, real substantial scenarios and commitments from the participants to build them,’ says Geoff Mulligan, an IoT veteran and one of two [White House Innovation] fellows working on the project.

“‘We want companies and researchers to roll up their sleeves, look at the various pieces of technology, and see what we can build out of it — like a stone soup,’ Mulligan told us [EE Times] in an email exchange.”

Oh, and they’re doing it on the cheap: the White House won’t provide any funding for the program.

Contrast that to China, which spends billions on IoT projects.

Oh well: it’s a (modest) start.

 

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Here’s where I draw the IoT privacy line! social sensing badges

Posted on 5th November 2013 in Internet of Things, management, privacy

Yikes!

I had the same reaction to this story by the Boston Globe‘s Scott Kirsner (“Is this a management breakthrough, or Big Brother in the workplace?” — sorry, no linkie: it only appears to be available through the subscribers’ archive) that a lot of people did to the story about the hacked, un-encrypted baby monitor: this is the Internet of Things run amok.

Sociometric Badge

It seems that a local firm, Sociometric Solutions,  has come up with a “social sensing badge” that employees would wear around their necks. According to the firm’s CEO, Ben Waber, before long “every employee ID badge will have sensors in it.” Holy George Orwell!

As Kirsner said, “You might call it the NSA style of management.” My thoughts exactly.

Here’s how this demonic gizmo works:

“…the badges rely on infrared sensors to know when you are clustered with other people in a meeting or conversation. While they don’t record conversations, they capture data about how often you talk versus listen, how frequently you interrupt people, and your tone of voice.” (my emphasis)

This is supposed to lead to a more humane workplace, that “.. will enable companies to try different approaches to office design, corporate hierarchies, and perhaps even work schedules.”

Baloney!

I’m reminded of a story a friend tells. He had a very talented employee who was anti-social, and frequently would work in the middle of the night, even sleep at his desk. Unconventional, but absolutely essential to the department. How long do you think he’d last after wearing one of these badges? Turn in your sociometric badge as you pick up your last check, anyone with ADHD or Aspergers — and probably a lot of others who wouldn’t fit some manager’s pre-conception of the ideal employee!

According to workplace consultant Alexandra LaMaster, of OrgSpeed:

“When there’s trust between an employer and employee, and they see that you’re moving people around because you want more communication across departments, or to achieve some kind of business result, that’s one thing. If there’s a lack of trust, people might feel they’re being policed.”

I’ve seen far too many dysfunctional workplaces — particularly in low-status companies such as retailers — to subscribe to the idealized view of how this device could be used. As far as I’m concerned, the sociometric badge is one example of technologists (IMHO, shame on MIT Prof. Sandy Pentland, who is a co-founder and chairman of the company’s board, and who I’d always counted among the IoT Good Guys) who get the idea that because you can do something, you should do it.

You shouldn’t.

What do you think?

 

 

 

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Smart water grid — as important as smart energy grid

Posted on 5th November 2013 in environmental, Internet of Things, M2M

Environmental efficiency is one of my passions, and there’s compelling evidence that shortages of clean water are almost as much a threat to life on Earth as global warming is.

That’s why I was so excited to learn that Spain — already an exemplar of “smarter cities” thinking (due in large part to Libelium using it as a test site for its devices) — is launching a “smart water grid” program in the city of  Cáceres.

According to Jesse Berst (you really should subscribe to his Smart Grid News!), ACCIONA Agua, the water services division of ACCIONA, a global renewable energy, infrastructure and water services group, will build the system “as part of a European project that aims to apply new technologies to the management of drinking water networks.”

Its benefits will parallel those for “smart grid” electricity projects, including real-time detection of underwater leaks (so they can be repaired more quickly) and real-time control of water distribution and use, and remote meter reading that will allow the utility to alert homeowners to possible leaks in the home or other problems.

Note the critical benefits of real-time data: “Real time data is expected to optimize investment plans according to real needs, as well as hone the management of water services.”

Components will include:

  • remote meter readers
  • GIS
  • remote control information
  • water quality monitoring sensors
  • mathematical model to predicting the system’s behavior.

The project is part of ” SmartWater4Europe, an EU research project that brings together 21 participants, including water utilities, technology companies, universities and research centers. The project has a budget of more than €10 million, of which €2.5 million has been assigned to Cáceres.” Results will be monitored over a 4 year period.

I’ve been noodling for a while about what it will take to get mainstream companies that may not even know about the IoT, let alone have a strategy to capitalize on it, to test the waters. I’ve concluded that since water and energy utility bills are such a big issue for most companies that launching “smart grid” projects that capitalize on utilities’ investments in this area and can lead to quick savings in utility bills might be the ideal entry point. What do you think?

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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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The 2013 World Series Champs: Boston Strong!

Posted on 31st October 2013 in et. al., Uncategorized

 

Three basic facts to remember:

  1. “All literary men are Red Sox fans.” — John Cheever
  2. The Boston Red Sox are the World’s Champions.
  3. The Hub of the Universe is the best city in the world. Boston Strong!

Now back to our regularly scheduled programming!

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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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