the Internet of Things

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By Maciej Kranz, Contributor, Network World JAN 3, 2018 4:30 AM PT

Opinions expressed by ICN authors are their own.

The Internet of Things (IoT) has started to move to the mainstream in enterprises across all

industries. With IoT spending set to increase by 15 percent to reach $772.5 billion by the end of

2018, the coming year will undoubtedly bring further growth in the number of connected devices

and enterprise IoT projects. More importantly, I believe that in 2018 enterprise IoT projects will

finally move beyond merely automating existing business processes, to truly transforming

industries by creating entirely new revenue streams and business models. This will be due in part

to the concurrent rise of synergistic technologies such as artificial intelligence (AI) and fog

computing, as well as an industry-wide move toward greater interoperability, standards and

collaboration.

Here are my top five predictions for enterprise IoT in 2018, which will drive these transformational

changes:

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IoT by itself is not truly transformational. It needs to be combined with key technologies such as AI,

fog computing and blockchain to make the business impacts it has long-promised. In 2018 we will

see such convergence begin to take place. Using these technologies together, companies will

obtain greater value from their IoT investments and overcome the barriers that previously hindered

adoption, including security, bandwidth and data analytics challenges.

INSIDER: 5 ways to prepare for Internet of Things security threats

For example, AI and machine learning (ML), will enable deeper analysis of real-time IoT data

streams to drive more powerful decision making. Fog computing will make such systems scalable

by extending cloud capabilities to the edge of the network. By processing and analyzing data flows

close to the data sources, fog computing will help address latency, bandwidth and reliability, and

cost issues. And blockchain will provide secure, audit-level tracking of IoT data transactions,

eliminating the need for a central, trusted intermediary between communicating devices.

IoT is not only connecting many previously unconnected “things” in enterprises, it is also causing IT

and operational technology (OT) systems to merge. As a result, cybercriminals are increasingly

focusing their efforts on sabotaging or commandeering devices and OT systems that control critical

equipment and infrastructure. Cyberattacks on industrial control systems increased 110 percent in

2016 and are sure to further increase as more systems become connected to the IoT.

Fortunately, 2018 will be the year when businesses and technology providers intensify their focus

on IoT security. Organizations will also invest more in their workforces (in the form of education,

training, certifications, etc.) to make them more capable of addressing IoT security concerns.

Additionally, businesses will increasingly take a unified, policy-based architectural approach to IoT

security by involving security and cyber teams from the start of an IoT deployment to implement a

comprehensive strategy across the enterprise.

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Throughout the coming year, IoT will continue to drive the “co-economy,” or what I like to call the

“co-everything” model, with companies large and small co-innovating and co-developing IoT

solutions. A new ecosystem of partners is emerging with a combination of horizontal, vertical and

regional specialists combining their expertise and resources for large-scale IoT projects. The

resulting solutions built on best-in-class technologies and based on open architectures and

standards, will be repeatable, future-proofed and cost effective. As more organizations realize the

importance of forming these types of partner ecosystems, we will see a shi� away from single

vendor solutions, which will accelerate IoT innovations.

In addition, the new co-everything model also means that the customer becomes a co-innovator.

Across industries, customers no longer want to be passive recipients of products, occasionally

consulted by a product manager. Rather, they want to be actively involved in the creation process,

contributing their own expertise and requirements. In 2018, the customer will move to the very

center of the IoT development efforts, delivering solutions that are better aligned with business

and technology needs.

Across markets, technology and solution providers will increasingly reach across the traditional

market structures and collaborate on open standards and interoperability. We will see further

convergence and consolidation of consortia and standard bodies fueling the co-everything

ecosystem mentioned previously. Additionally, we’ll see more aggressive government guidelines

and regulations around not only IoT security, privacy, and interoperability, but also autonomous

vehicles, drones and even AI-based systems, all related to IoT. Governments as regulators, agenda

setters and customers have already played a pivotal role in driving IoT adoption from smart grids

to food safety tracking. In 2018, as in the past, governments and their agencies will need to work

closely with the industry for the new laws and actions to be effective.

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Until now, enterprise IoT projects have primarily focused on automating existing business

processes and achieving incremental improvements to efficiency. However, in 2018, as the IoT

converges with other synergistic technologies, we will witness its ability to transform industries by

driving new value propositions and enabling new business models.

For example, by combining the IoT with AI and real-time data analytics, manufacturers can predict

equipment problems before they occur and conduct preventative maintenance, eliminating costly

down-time on the production line. These IoT-powered capabilities can even be turned into

profitable new revenue streams, with businesses able to provide their customers new service-

oriented offerings such as equipment health monitoring. In another example, the combination of

IoT data with 3D printing is enabling mass customization, with manufacturers able to profitably run

“batches of one” and personalize products to their customers’ specific needs and desires.  

The IoT is reaching a tipping point where businesses will begin to experience its full potential,

moving from incremental to monumental improvements. From the convergence of IoT with AI, fog

computing and other new technologies, to stronger IoT security and improved interoperability, the

future of IoT and its ability to drive business transformation looks brighter than ever in 2018 and

beyond.

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