Internet of
Things (IoT)
UNIT = II
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin & Sys), BCA)
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Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
2
Definition
The Internet of Things (IoT) describes the network of physical objects—“things”—
that are embedded with sensors, software, and other technologies for the purpose
of connecting and exchanging data with other devices and systems over the
internet.
According to the definition, IoT means implementing functionality in everyday
objects through interconnection so that they can send and receive data.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Things can be us (humans), animals, buildings, energy stations,
smartphones, tablets, bicycles, sensors, cameras, vehicles, health
monitoring devices and so on.
• A thing in the internet of things can be
a person with a heart monitor implant,
• a farm animal
transponder,
with
a
biochip
• an automobile that has builtin sensors to alert the driver when tire
pressure is low or
• any other natural or man-made
object that can be assigned an
Internet Protocol (IP) address and
is able to transfer data over a
network.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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• The Internet of things refers to a set of capabilities emerging because of physical things being connected to the Internet or
net- worked via sensors.
• Networks link data from products or operations, which can generate better information and analysis
• . These networks capture huge volumes of data that flow to computers for analysis.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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IoT Architecture-How Does it work???
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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How does IoT work?
• An IoT ecosystem consists of web-enabled smart devices that use embedded
systems, such as processors, sensors and communication hardware, to collect,
send and act on data they acquire from their environments.
• IoT devices share the sensor data they collect by connecting to an IoT
gateway or other edge device where data is either sent to the cloud to be
analyzed or analyzed locally.
• Sometimes, these devices communicate with other related devices and act on
the information they get from one another.
• The devices do most of the work without human intervention, although people
can interact with the devices -- for instance, to set them up, give them instructions
or access the data.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Characteristics of IoT
• The "things" in IoT are also called applications that need to have
some specific characteristics to make this technology work
smoothly and in order to be called a full-fledged IoT system or
application. These characteristics are:
1.The things should have a unique identification so that each of
them can be distinguished from various objects in the network.
2.Things should be able to detect the presence of other objects,
following a rule of autonomy. If they can do so then they can
further interact with each other and work accordingly.
3.Things should be able to capture data autonomously.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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1.Since there are various communication protocols and technologies
that IoT devices will work with, things should be interoperable among
various communication technologies.
2.Things should have a service-based operation, such that if any two or
more objects are in the vicinity or in contact then they should be able
to communicate directly with each other and exchange information
and data if necessary.
3.Things should be able to operate at low power.
4.Things should be contextual in nature.
5.Things should be programmable by the user.
6.Things should have a fail-safe operation and most importantly secure.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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What are the benefits of IoT to
organizations?
• The internet of things offers several benefits to organizations. Some benefits are
industry-specific, and some are applicable across multiple industries. Some of the
common benefits of IoT enable businesses to:
• monitor their overall business processes;
• improve the customer experience (CX);
• save time and money;
• enhance employee productivity;
• integrate and adapt business models;
• make better business decisions; and
• generate more revenue.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Why is IoT important?
• The internet of things helps people live and work smarter, as well as gain complete
control over their lives.
• In addition to offering smart devices to automate homes, IoT is essential to business.
• IoT provides businesses with a real-time look into how their systems really work,
delivering insights into everything from the performance of machines to supply chain
and logistics operations.
• IoT enables companies to automate processes and reduce labor costs.
• It also cuts down on waste and improves service delivery, making it less expensive to
manufacture and deliver goods, as well as offering transparency into customer
transactions.
• As such, IoT is one of the most important technologies of everyday life, and it will
continue to pick up steam as more businesses realize the potential of connected
devices to keep them competitive.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Home
With the use of IoT network protocols, devices in the home are connected to the home network and are
accessible directly, over the home network and even remotely from across the world.
These connected home devices are able to coordinate energy usage, consumer convenience and possibly
accurately and consistently anticipate the needs of the people dwelling in the homes.
Mobile app-controlled thermostats and lighting solutions can already be found on retail store shelves.
There is also a noticeable range of safety devices, that include remote system failure indicators, virtual tracking,
etc.
• Home security and Access control
• Lighting control
• Home health care
• Fire detection including leak detection
• Energy efficiency
• Solar panel monitoring and control
• Temperature monitoring and HVAC control
• Automated meter reading
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Clinical Care:
•
Healthcare
IoT-driven monitoring systems are used for
hospitalized patients whose physiological status
requires constant close attention.
• These monitoring systems employ sensors to
collect physiological information that is analyzed
and stored using gateways and the cloud.
• This information is then sent wirelessly
caregivers for further analysis and review.
to
• It provides a continuous automated flow of
information.
Remote monitoring:
• Small, powerful, wireless solutions connected
through the IoT are making it possible for remote
monitoring of those patients who require
immediate attention.
• Patient’s health data are captured using various
sensors and are analyzed and sent to the medical
professional for proper medical assistance
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
remotely.
& Sys), BCA)
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Agriculture
• It is a huge success in terms of productivity, pest control, water conservation and continuous
production based on improved technology and methods. Crop monitoring: Sensors can be
used to monitor crops and the health of plants using the data collected. Sensors can also be
used for the early monitoring of pests and disease.
• Food safety: The entire supply chain, the Farm, logistics and retails, are all becoming
connected. Farm products can be connected with RFID tags, increasing customer confidence.
• Climate monitoring: Sensors can be used to monitor temperature, humidity, light intensity,
and soil moisture. These data can be sent to the central system to trigger alerts and automate
water, air and crop control.
• Logistics monitoring: Location-based sensors can be used to track vegetables and other Farm
products during transport and storage. This enhances scheduling and automates the supply
chain.
• Livestock farming monitoring: The monitoring of Farm animals can be monitored via sensors
to detect potential signs of disease. The data can be analyzed from the central system and
relevant information can be sent to the farmers.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
18
Environment
• Another significant implementation of
IoT is in the field of environmental care.
• Global warming is an issue, IoT is being
used to tackle this critical problem.
• Also, IoT allows quicker notification of
natural disasters, thus saving crucial
time.
• It also promotes better analysis and
reporting.
• Also, this technology helps in pollution
and waste management using warning
sensors.
• Much of commercial farming, like
weather monitoring, suffers from a lack
of precision and requires human labor in
the area of monitoring.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Business
• When devices or products are embedded with sensors, companies can track their movements or
monitor interactions with them.
• Business models can be fine-tuned to take advantage of this behavioral data.
• How a company generates revenue from its assets is determined by its business model.
• A business model describes how a company actually operates—how work is done, the degree of
automation, the pricing and design of products or services, and how the company generates sales
revenue and profit to sustain itself.
•
For example, an insurance company offers to install location- sensors in customers’ cars.
By doing so, the company develops the ability to price the drivers’ policies on how a car is
driven and where it travels. Pricing is customized to match the actual risks of operating a
vehicle rather than based on general proxies—driver’s age, gender, or place of residence.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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• Objects are becoming embedded with sensors and gaining the ability to communicate.
• The resulting information networks promise to create new business models, improve business
processes, and reduce costs and risks.
For example, sensors and network connections can be embedded in rental cars. Zipcar has pioneered
this business model, which includes renting cars by the hour. Cars are leased for short time spans to
reg- istered members making rental centers unnecessary. Traditional car rental agencies are starting
to experiment with sensors so that each car’s use can be optimized for higher revenues.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Figure 1.9
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)DC
A Zipcar reserved parking sign in Washington,
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Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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Government
• Using connected government, government
sectors can keep a track of its local governing
bodies like a municipal corporation.
• It can also keep track of its employee
productivity.
• Common people can request their needs and
the government can deliver the service
quickly.
• Also, with the massive amount of data
collected from IoT sensors, it can lead to
new innovations.
• And not to forget, citizens can also gain a
piece of knowledge about the working of
their respective government.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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IoT − Advantages
• Improved Customer Engagement – Current analytics suffer from blind-spots and significant flaws in accuracy; and as
noted, engagement remains passive. IoT completely transforms this to achieve richer and more effective engagement with
audiences.
• Technology Optimization – The same technologies and data which improve the customer experience also improve device
use, and aid in more potent improvements to technology. IoT unlocks a world of critical functional and field data.
• Reduced Waste – IoT makes areas of improvement clear. Current analytics give us superficial insight, but IoT provides
real-world information leading to more effective management of resources.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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• Enhanced Data Collection – Modern data collection suffers from its limitations and its design for passive use.
• IoT breaks it out of those spaces, and places it exactly where humans really want to go to analyze our world.
• It allows an accurate picture of everything.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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IoT − Disadvantages
• Security – IoT creates an ecosystem of constantly connected devices communicating over networks. The system offers little control
despite any security measures. This leaves users exposed to various kinds of attackers.
•
Privacy – The sophistication of IoT provides substantial personal data in extreme detail without the user's active participation.
• Complexity – Some find IoT systems complicated in terms of design, deployment, and maintenance given their use of multiple
technologies and a large set of new enabling technologies.
• Flexibility – Many are concerned about the flexibility of an IoT system to integrate easily with another. They worry about finding
themselves with several conflicting or locked systems.
•
Compliance – IoT, like any other technology in the realm of business, must comply with regulations. Its complexity makes the
issue of compliance seem incredibly challenging when many consider standard software compliance a battle
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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OPPORTUNITIES FOR IMPROVEMENT
• Other applications of embedded physical things are:
••
In the oil and gas industry, exploration and development can rely on extensive sensor networks placed in the
earth’s crust to produce more accurate readings of the location, structure, and dimensions of potential fields. The payoff
would be lower development costs and improved oil flows.
••
In health care, sensors and data links can monitor patient’s behavior and symptoms in real time and at low cost,
allowing physicians to better diagnose disease and prescribe tailored treatment regimens. Sensors have been embedded in
patients with heart or chronic illnesses so that their conditions can be monitored continuously as they go about their daily
activities. Sensors placed on congestive heart patients can now monitor
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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• many of these signs remotely and continuously, giving practitioners early warning of conditions that could lead to expensive emergency care.
• Better management of congestive heart failure alone could reduce hospitalization and treatment costs by $1 billion per year
in the U.S.
••
In retail, sensors can capture shoppers’ profile data stored in their membership cards to help close purchases by
providing additional information or offering discounts at the point of sale.
••
Farm equipment with ground sensors can take into account crop and field conditions, and adjust the amount of
fertilizer that is spread on areas that need more nutrients.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
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•
•
•
•
Billboards in Japan scan passersby, assessing how they fit consumer
profiles, and instantly change the displayed messages based on
those assessments.
The automobile industry is developing systems that can detect
imminent collisions and take evasive action.
Certain basic applications, such as automatic braking systems, are
available in high-end autos.
The potential accident reduction savings resulting from wider
deployment of these sensor systems could exceed $100 billion
annually.
Dr Syeda Rukhsana Khalid ( CFFB(IIM-Indore), PhD. in Finance from UOHYD, MBA(Fin
& Sys), BCA)
30