IoT business models in an industrial context

There is a broad consensus that the transformative power of the Internet of Things (IoT) will affect all kinds of industries; or, to put it in a more optimistic light, that almost no domain is excluded from the opportunities to leverage the IoT. But, what does this mean for the future of industrial processes? This article introduces the concept of high-resolution management (HRM). IoT enables the collection of high-resolution data for the physical world where, as in the digital world, every aspect of business operations can be measured in real-time. This capability facilitates high-resolution management, such as short optimization cycles in industrial production, logistics and equipment efficiency, comparable to methods like A/B-Testing or Search Engine Optimization, which are state of the art in digital business. We take the following two perspectives on leveraging high-resolution management. First, through greater insights into their industrial processes, companies that apply HRM in their operations are able to achieve higher efficiency, quality and flexibility. The example of vehicle fleet management illustrates this effect. Second, we build upon the St. Gallen Business Model Navigator in order to look in greater detail on how the IoT affects industrial processes. Gassmann et al. Gassmann, O., Frankenberger, K., and Csik, M. (2014). The business model navigator: 55 models that will revolutionise your business. Financial Times. introduce 55 generic business model patterns, of which our extended research identified 20 that could profit significantly from the IoT Fleisch, E., Weinberger, M., and Wortmann, F. (2014). Geschäftsmodelle im Internet der Dinge. HMD Praxis der Wirtschaftsinformatik, 51(6), 812-826; Gassmann, O., Frankenberger, K., and Csik, M. (2014). The business model navigator: 55 models that will revolutionise your business. Financial Times. . Analyzing these 20 patterns allowed for the identification of six key components: Remote Usage and Condition Monitoring, Object Self Service, Digital Add-on, Digital Lock-in, Product as a Point of Sales and Physical Freemium. These building blocks help companies to supply HRM-supported offerings. Finally, the example of remote monitoring of process parameters shows that these business model components can also be deployed to create offerings that enable others to apply HRM

Cognitive Hyperconnected Digital Transformation

Cognitive Hyperconnected Digital Transformation provides an overview of the current Internet of Things (IoT) landscape, ranging from research, innovation and development priorities to enabling technologies in a global context. It is intended as a standalone book in a series that covers the Internet of Things activities of the IERC-Internet of Things European Research Cluster, including both research and technological innovation, validation and deployment. The book builds on the ideas put forward by the European Research Cluster, the IoT European Platform Initiative (IoT-EPI) and the IoT European Large-Scale Pilots Programme, presenting global views and state-of-the-art results regarding the challenges facing IoT research, innovation, development and deployment in the next years. Hyperconnected environments integrating industrial/business/consumer IoT technologies and applications require new IoT open systems architectures integrated with network architecture (a knowledge-centric network for IoT), IoT system design and open, horizontal and interoperable platforms managing things that are digital, automated and connected and that function in real-time with remote access and control based on Internet-enabled tools. The IoT is bridging the physical world with the virtual world by combining augmented reality (AR), virtual reality (VR), machine learning and artificial intelligence (AI) to support the physical-digital integrations in the Internet of mobile things based on sensors/actuators, communication, analytics technologies, cyber-physical systems, software, cognitive systems and IoT platforms with multiple functionalities. These IoT systems have the potential to understand, learn, predict, adapt and operate autonomously. They can change future behaviour, while the combination of extensive parallel processing power, advanced algorithms and data sets feed the cognitive algorithms that allow the IoT systems to develop new services and propose new solutions. IoT technologies are moving into the industrial space and enhancing traditional industrial platforms with solutions that break free of device-, operating system- and protocol-dependency. Secure edge computing solutions replace local networks, web services replace software, and devices with networked programmable logic controllers (NPLCs) based on Internet protocols replace devices that use proprietary protocols. Information captured by edge devices on the factory floor is secure and accessible from any location in real time, opening the communication gateway both vertically (connecting machines across the factory and enabling the instant availability of data to stakeholders within operational silos) and horizontally (with one framework for the entire supply chain, across departments, business units, global factory locations and other markets). End-to-end security and privacy solutions in IoT space require agile, context-aware and scalable components with mechanisms that are both fluid and adaptive. The convergence of IT (information technology) and OT (operational technology) makes security and privacy by default a new important element where security is addressed at the architecture level, across applications and domains, using multi-layered distributed security measures. Blockchain is transforming industry operating models by adding trust to untrusted environments, providing distributed security mechanisms and transparent access to the information in the chain. Digital technology platforms are evolving, with IoT platforms integrating complex information systems, customer experience, analytics and intelligence to enable new capabilities and business models for digital business

Cognitive Hyperconnected Digital Transformation

Cognitive Hyperconnected Digital Transformation provides an overview of the current Internet of Things (IoT) landscape, ranging from research, innovation and development priorities to enabling technologies in a global context. It is intended as a standalone book in a series that covers the Internet of Things activities of the IERC-Internet of Things European Research Cluster, including both research and technological innovation, validation and deployment. The book builds on the ideas put forward by the European Research Cluster, the IoT European Platform Initiative (IoT-EPI) and the IoT European Large-Scale Pilots Programme, presenting global views and state-of-the-art results regarding the challenges facing IoT research, innovation, development and deployment in the next years. Hyperconnected environments integrating industrial/business/consumer IoT technologies and applications require new IoT open systems architectures integrated with network architecture (a knowledge-centric network for IoT), IoT system design and open, horizontal and interoperable platforms managing things that are digital, automated and connected and that function in real-time with remote access and control based on Internet-enabled tools. The IoT is bridging the physical world with the virtual world by combining augmented reality (AR), virtual reality (VR), machine learning and artificial intelligence (AI) to support the physical-digital integrations in the Internet of mobile things based on sensors/actuators, communication, analytics technologies, cyber-physical systems, software, cognitive systems and IoT platforms with multiple functionalities. These IoT systems have the potential to understand, learn, predict, adapt and operate autonomously. They can change future behaviour, while the combination of extensive parallel processing power, advanced algorithms and data sets feed the cognitive algorithms that allow the IoT systems to develop new services and propose new solutions. IoT technologies are moving into the industrial space and enhancing traditional industrial platforms with solutions that break free of device-, operating system- and protocol-dependency. Secure edge computing solutions replace local networks, web services replace software, and devices with networked programmable logic controllers (NPLCs) based on Internet protocols replace devices that use proprietary protocols. Information captured by edge devices on the factory floor is secure and accessible from any location in real time, opening the communication gateway both vertically (connecting machines across the factory and enabling the instant availability of data to stakeholders within operational silos) and horizontally (with one framework for the entire supply chain, across departments, business units, global factory locations and other markets). End-to-end security and privacy solutions in IoT space require agile, context-aware and scalable components with mechanisms that are both fluid and adaptive. The convergence of IT (information technology) and OT (operational technology) makes security and privacy by default a new important element where security is addressed at the architecture level, across applications and domains, using multi-layered distributed security measures. Blockchain is transforming industry operating models by adding trust to untrusted environments, providing distributed security mechanisms and transparent access to the information in the chain. Digital technology platforms are evolving, with IoT platforms integrating complex information systems, customer experience, analytics and intelligence to enable new capabilities and business models for digital business

Next Generation Internet of Things – Distributed Intelligence at the Edge and Human-Machine Interactions

This book provides an overview of the next generation Internet of Things (IoT), ranging from research, innovation, development priorities, to enabling technologies in a global context. It is intended as a standalone in a series covering the activities of the Internet of Things European Research Cluster (IERC), including research, technological innovation, validation, and deployment.The following chapters build on the ideas put forward by the European Research Cluster, the IoT European Platform Initiative (IoT–EPI), the IoT European Large-Scale Pilots Programme and the IoT European Security and Privacy Projects, presenting global views and state-of-the-art results regarding the next generation of IoT research, innovation, development, and deployment.The IoT and Industrial Internet of Things (IIoT) are evolving towards the next generation of Tactile IoT/IIoT, bringing together hyperconnectivity (5G and beyond), edge computing, Distributed Ledger Technologies (DLTs), virtual/ andaugmented reality (VR/AR), and artificial intelligence (AI) transformation.Following the wider adoption of consumer IoT, the next generation of IoT/IIoT innovation for business is driven by industries, addressing interoperability issues and providing new end-to-end security solutions to face continuous treats.The advances of AI technology in vision, speech recognition, natural language processing and dialog are enabling the development of end-to-end intelligent systems encapsulating multiple technologies, delivering services in real-time using limited resources. These developments are focusing on designing and delivering embedded and hierarchical AI solutions in IoT/IIoT, edge computing, using distributed architectures, DLTs platforms and distributed end-to-end security, which provide real-time decisions using less data and computational resources, while accessing each type of resource in a way that enhances the accuracy and performance of models in the various IoT/IIoT applications.The convergence and combination of IoT, AI and other related technologies to derive insights, decisions and revenue from sensor data provide new business models and sources of monetization. Meanwhile, scalable, IoT-enabled applications have become part of larger business objectives, enabling digital transformation with a focus on new services and applications.Serving the next generation of Tactile IoT/IIoT real-time use cases over 5G and Network Slicing technology is essential for consumer and industrial applications and support reducing operational costs, increasing efficiency and leveraging additional capabilities for real-time autonomous systems.New IoT distributed architectures, combined with system-level architectures for edge/fog computing, are evolving IoT platforms, including AI and DLTs, with embedded intelligence into the hyperconnectivity infrastructure.The next generation of IoT/IIoT technologies are highly transformational, enabling innovation at scale, and autonomous decision-making in various application domains such as healthcare, smart homes, smart buildings, smart cities, energy, agriculture, transportation and autonomous vehicles, the military, logistics and supply chain, retail and wholesale, manufacturing, mining and oil and gas

Methodology for Designing Decision Support Systems for Visualising and Mitigating Supply Chain Cyber Risk from IoT Technologies

This paper proposes a methodology for designing decision support systems for visualising and mitigating the Internet of Things cyber risks. Digital technologies present new cyber risk in the supply chain which are often not visible to companies participating in the supply chains. This study investigates how the Internet of Things cyber risks can be visualised and mitigated in the process of designing business and supply chain strategies. The emerging DSS methodology present new findings on how digital technologies affect business and supply chain systems. Through epistemological analysis, the article derives with a decision support system for visualising supply chain cyber risk from Internet of Things digital technologies. Such methods do not exist at present and this represents the first attempt to devise a decision support system that would enable practitioners to develop a step by step process for visualising, assessing and mitigating the emerging cyber risk from IoT technologies on shared infrastructure in legacy supply chain systems

Big Data and the Internet of Things

Advances in sensing and computing capabilities are making it possible to embed increasing computing power in small devices. This has enabled the sensing devices not just to passively capture data at very high resolution but also to take sophisticated actions in response. Combined with advances in communication, this is resulting in an ecosystem of highly interconnected devices referred to as the Internet of Things - IoT. In conjunction, the advances in machine learning have allowed building models on this ever increasing amounts of data. Consequently, devices all the way from heavy assets such as aircraft engines to wearables such as health monitors can all now not only generate massive amounts of data but can draw back on aggregate analytics to "improve" their performance over time. Big data analytics has been identified as a key enabler for the IoT. In this chapter, we discuss various avenues of the IoT where big data analytics either is already making a significant impact or is on the cusp of doing so. We also discuss social implications and areas of concern.Comment: 33 pages. draft of upcoming book chapter in Japkowicz and Stefanowski (eds.) Big Data Analysis: New algorithms for a new society, Springer Series on Studies in Big Data, to appea

The Emerging Internet of Things Marketplace From an Industrial Perspective: A Survey

The Internet of Things (IoT) is a dynamic global information network consisting of internet-connected objects, such as Radio-frequency identification (RFIDs), sensors, actuators, as well as other instruments and smart appliances that are becoming an integral component of the future internet. Over the last decade, we have seen a large number of the IoT solutions developed by start-ups, small and medium enterprises, large corporations, academic research institutes (such as universities), and private and public research organisations making their way into the market. In this paper, we survey over one hundred IoT smart solutions in the marketplace and examine them closely in order to identify the technologies used, functionalities, and applications. More importantly, we identify the trends, opportunities and open challenges in the industry-based the IoT solutions. Based on the application domain, we classify and discuss these solutions under five different categories: smart wearable, smart home, smart, city, smart environment, and smart enterprise. This survey is intended to serve as a guideline and conceptual framework for future research in the IoT and to motivate and inspire further developments. It also provides a systematic exploration of existing research and suggests a number of potentially significant research directions.Comment: IEEE Transactions on Emerging Topics in Computing 201

Next Generation Internet of Things – Distributed Intelligence at the Edge and Human-Machine Interactions

This book provides an overview of the next generation Internet of Things (IoT), ranging from research, innovation, development priorities, to enabling technologies in a global context. It is intended as a standalone in a series covering the activities of the Internet of Things European Research Cluster (IERC), including research, technological innovation, validation, and deployment.The following chapters build on the ideas put forward by the European Research Cluster, the IoT European Platform Initiative (IoT–EPI), the IoT European Large-Scale Pilots Programme and the IoT European Security and Privacy Projects, presenting global views and state-of-the-art results regarding the next generation of IoT research, innovation, development, and deployment.The IoT and Industrial Internet of Things (IIoT) are evolving towards the next generation of Tactile IoT/IIoT, bringing together hyperconnectivity (5G and beyond), edge computing, Distributed Ledger Technologies (DLTs), virtual/ andaugmented reality (VR/AR), and artificial intelligence (AI) transformation.Following the wider adoption of consumer IoT, the next generation of IoT/IIoT innovation for business is driven by industries, addressing interoperability issues and providing new end-to-end security solutions to face continuous treats.The advances of AI technology in vision, speech recognition, natural language processing and dialog are enabling the development of end-to-end intelligent systems encapsulating multiple technologies, delivering services in real-time using limited resources. These developments are focusing on designing and delivering embedded and hierarchical AI solutions in IoT/IIoT, edge computing, using distributed architectures, DLTs platforms and distributed end-to-end security, which provide real-time decisions using less data and computational resources, while accessing each type of resource in a way that enhances the accuracy and performance of models in the various IoT/IIoT applications.The convergence and combination of IoT, AI and other related technologies to derive insights, decisions and revenue from sensor data provide new business models and sources of monetization. Meanwhile, scalable, IoT-enabled applications have become part of larger business objectives, enabling digital transformation with a focus on new services and applications.Serving the next generation of Tactile IoT/IIoT real-time use cases over 5G and Network Slicing technology is essential for consumer and industrial applications and support reducing operational costs, increasing efficiency and leveraging additional capabilities for real-time autonomous systems.New IoT distributed architectures, combined with system-level architectures for edge/fog computing, are evolving IoT platforms, including AI and DLTs, with embedded intelligence into the hyperconnectivity infrastructure.The next generation of IoT/IIoT technologies are highly transformational, enabling innovation at scale, and autonomous decision-making in various application domains such as healthcare, smart homes, smart buildings, smart cities, energy, agriculture, transportation and autonomous vehicles, the military, logistics and supply chain, retail and wholesale, manufacturing, mining and oil and gas

Business Case and Technology Analysis for 5G Low Latency Applications

A large number of new consumer and industrial applications are likely to change the classic operator's business models and provide a wide range of new markets to enter. This article analyses the most relevant 5G use cases that require ultra-low latency, from both technical and business perspectives. Low latency services pose challenging requirements to the network, and to fulfill them operators need to invest in costly changes in their network. In this sense, it is not clear whether such investments are going to be amortized with these new business models. In light of this, specific applications and requirements are described and the potential market benefits for operators are analysed. Conclusions show that operators have clear opportunities to add value and position themselves strongly with the increasing number of services to be provided by 5G.Comment: 18 pages, 5 figure