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Chapter 13: The Internet of Things as a Platform for Intelligent Applications

Learning Objectives for Chapter 13

1. Describe the IoT and its characteristics

2. Discuss the benefits and drivers of IoT

3. Understand how IoT works

4. Describe sensors and explain their role in IoT applications

5. Describe typical IoT applications in a diversity of fields

6. Describe smart appliances and homes

7. Understand the concept of smart cities, their content, and their benefits

8. Describe the landscape of autonomous vehicles

9. Discuss the major issues of IoT implementation

CHAPTER OVERVIEW ( ( ( ( ( ( ( ( ( ( ( ( ( ( (

The Internet of Things (IoT) has been in the technology spotlight since 2014. Its applications are emerging rapidly across many fields in industry, services, government, and the military (Manyika et al., 2015). It is estimated that 20 to 50 billion “things” will be connected to the Internet by 2020–2025. The IoT connects large numbers of smart things and collects data that are processed by analytics and other intelligent systems. The technology is frequently combined with artificial intelligence (AI) tools for creating smart applications, notably autonomous cars, smart homes, and smart cities.

This chapter contains the following sections:

CHAPTER OUTLINE

13.1 Opening Vignette: CNH Industrial Uses the Internet of Things to Excel

13.2 Essentials of IoT

13.3 Major Benefits and Drivers of IoT

13.4 How IoT Works

13.5 Sensors and Their Role in IoT

13.6 Selected IoT Applications

13.7 Smart Homes and Appliances

13.8 Smart Cities and Factories

13.9 Autonomous (Self-driving) Vehicles

13.10 Implementing IoT and Managerial Considerations

ANSWERS TO END OF SECTION REVIEW QUESTIONS( ( ( ( ( (

Section 13.1 Review Questions

1. Why is the IoT the only viable solution to CNH’s problems?

The IoT provides the capability for CNH to monitor a large number of vehicles, with multiple types of data readings, across a large physical area.

2. List and discuss the major benefits of IoT.

From the case, the major benefits for CNH of IoT are:

· ability to monitor all vehicles

· ability to monitor vehicles across a large geographic area

· ability to receive information from a variety of sensors on each vehicle

· provides information on optimization of equipment

· predicts fuel supply

· alerts owners of preventative maintenance

· indicates when trucks are overloaded

· provides information on planning for deliveries or farming

· provides warnings of impending breakdowns

3. How can CNH’s product development benefit from the collected data about usage?

The product development group will have a wealth of information about actual usage of the products that they can then use when redesigning current products or developing new products. For example, the group will be able to better understand the climates and duration of use during harvest. Additionally, the group will be able to identify any part that appears to cause breakdowns more frequently.

4. It is said that the IoT enables telematics and connected vehicles. Explain.

The IoT allows for the collection of a wide variety of information about vehicle location, use and condition. These pieces of information can then be used to assist operators in planning routes, timelines and scheduled maintenance.

5. Why is IoT considered the “core of the future business strategy”?

Much of business is built on the ability to make effective decisions, and those decisions are based on data. The IoT provides the opportunity for a wealth of data in a variety of different areas to be collected, and this data can then be used to make appropriate business decisions.

6. It is said that the IoT will enable new services for CNH (e.g., for sales and collaboration with partners). Elaborate.

Student responses will vary, but some examples may include the ability to schedule both routine and nonroutine maintenance as indicated, the ability to recommend more appropriate products based on real-world use, assist in planning logistics services based on data received, and other potential services.

7. View Figure 13.3 (The process of IoT) and relate it to the use of IoT at CNH.

This figure provides information on how IoT functions, and examples from CNH can be drawn from it. In the CNH case, the vehicles have numerous sensors that provide data through wireless systems to the company servers. This information is collected stored and transferred. Data can then be analyzed to provide insights in real time (for example if a truck is overloaded) as well as more long-term analysis (types of conditions equipment is operated in).

8. Identify decision support possibilities.

Both operators and the company can use information provided by the system to make decisions about the use of the equipment as well as gain insight about how the equipment is used. Operators can use information about fuel economy to make decisions about when to refuel. The company can use information about the average temperature in which the equipment is used to make determinations on product design for better longevity and function in individual parts.

9. Which decisions made by the company and its customers are supported by IoT?

The case indicates that delivery trucks can be connected to planners with delivery sources and destinations. Additionally, the performance of people who drive the vehicles can be analyzed and recommendations made on methods to improve the vehicles efficiency.

Section 13.2 Review Questions

1. What is IoT?

The IoT is a network of connected computing devices including different types of objects (e.g., digital machines). Each object in the network has a unique identifier (UID), and it is capable of collecting and transferring data automatically across the network. 2. List the major characteristics of IoT.

3. Why is IoT important?

The IoT is important because it represents a major disruptive technology that has the ability to cut costs create new business models and improve quality of products and services.

4. List some changes introduced by IoT.

Several examples are given, but some include the ability to know where an individual is within a secure location, the ability to track vehicles to optimize routing, and the ability to monitor machines to predict needed maintenance.

5. What is the IoT ecosystem?

The IoT ecosystem describes all of the potential applications of IoT. This includes applications (also referred to as verticals) platforms and enablement (also referred to as horizontals) and building blocks. Figure 13.1 displays this is a graphic

6. What are the major components of an IoT technology?

IoT technology can be divided into four major blocks

· Hardware

· Connectivity

· software backend

· applications

Section 13.3 Review Questions

1. List the benefits of IoT for enterprises.

The chapter identifies the following benefits for enterprises:

· Reduces cost by automating processes.

· Improves workers’ productivity.

· Creates new revenue streams.

· Optimizes asset utilization (e.g., see the opening vignette).

· Improves sustainability.

· Changes and improves everything.

· May anticipate our needs (predictions).

· Enables insights into broad environments (sensors collect data).

· Enables smarter decisions/purchases.

· Provides increased accuracy of predictions.

· Identifies problems quickly (even before they occur).

· Provides instant information generation and dissemination.

· Offers quick and inexpensive tracking of activities.

· Makes business processes more efficient.

· Enables communication between consumers and financial institutions.

· Facilitates growth strategy.

· Fundamentally improves the use of analytics (see the opening vignette).

· Enables better decision making based on real-time information.

· Expedites problem resolution and malfunction recovery.

· Supports facility integration.

· Provides better knowledge about customers for personalized services and marketing.

2. List the benefits of IoT for consumers.

The chapter identifies many benefits for enterprises, and some of these are also of direct benefit to consumers:

· Reduces cost by automating processes.

· Optimizes asset utilization (e.g., see the opening vignette).

· Improves sustainability.

· Changes and improves everything.

· May anticipate our needs (predictions).

· Provides increased accuracy of predictions.

· Identifies problems quickly (even before they occur).

· Provides instant information generation and dissemination.

· Offers quick and inexpensive tracking of activities.

· Enables communication between consumers and financial institutions.

· Enables better decision making based on real-time information.

· Expedites problem resolution and malfunction recovery.

· Supports facility integration.

3. List the benefits of IoT for decision making.

The chapter identifies the following benefits for enterprises that are directly related to improved decision-making:

· Optimizes asset utilization (e.g., see the opening vignette).

· May anticipate our needs (predictions).

· Enables insights into broad environments (sensors collect data).

· Enables smarter decisions/purchases.

· Provides increased accuracy of predictions.

· Identifies problems quickly (even before they occur).

· Provides instant information generation and dissemination.

· Fundamentally improves the use of analytics (see the opening vignette).

· Enables better decision making based on real-time information.

4. List the major drivers of IoT.

The following are the major drivers of the IoT according to the section:

· The number of “things”—20 to 50 billion—may be connected to the Internet by 2020–2025.

· Connected autonomous “things”/systems (e.g., robots, cars) create new IoT applications.

· Broadband Internet is more widely available, increasing with time. • The cost of devices and sensors is continuously declining.

· The cost of connecting the devices is decreasing.

· Additional devices are created (via innovations) and are interconnected easily (e.g., see Fenwick, 2016).

· More sensors are built into devices.

· Smartphones’ penetration is skyrocketing.

· The availability of wearable devices is increasing.

· The speed of moving data is increasing to 60 THz. • Protocols are developing for IoT (e.g., WiGig).

· Customer expectations are rising; innovative customer services are becoming a necessity.

· The availability of IoT tools and platforms is increasing.

· The availability of powerful analytics that are used with IoT is increasing.

Section 13.4 Review Questions

1. Describe the major components of IoT.

According to figure 13.2, the major components include:

· Hardware - this includes the physical devices, sensors and actuators were data are produced and recorded.

· Connectivity - this provides a hub that collects data from sensors and transmits it to the cloud for analysis.

· Software - this allows for the connected data to be managed.

· Applications - this allows for the data to be turned into meaningful information through analysis.

2. Explain how the IoT works following the process illustrated in Figure 13.3.

Figure 13.3 illustrates the process through which the IoT operates.

· Things communicate data to the Internet ecosystem through sensors and wireless systems

· Information flows to the cloud where it is collected stored and transferred. In this step analysis, mining and processing may also be performed.

· This can result in intelligent knowledge which can then be subject to decision-making (possibly using machine learning) that may generate innovations and possibly actions

· These actions may also be informed by people, machines or other systems

· The results of these actions may then be said back in to the original Things to improve performance, usability, information gathering, etc.

3. How does IoT support decision making?

The IoT supports decision-making by providing a large amount of readily available data for analysis. This data can provide a real perspective on multiple situations and decision-making can then focus on the best outcome without concern for the quantity, accuracy, availability or quality of data.

Section 13.5 Review Questions

1. Define sensor.

A sensor is an electronic device that automatically collects data about events or changes in its environment.

2. Describe the role of sensors in IoT.

In many IoT applications single or multiple sensors are present. They serve to collect data to send to other electronic devices for processing.

3. What is RFID? What is a RFID sensor?

RFID is a generic technology that refers to the use of radio-frequency waves to identify objects. An RFID sensor is an upgraded RFID tag that wirelessly communicates with readers providing additional information.

4. What role does the RFID perform in IoT?

RFID provides another source of data to IOT systems as well as providing an additional technology that can be used for sensors to wirelessly transmit information.

5. Define smart sensor and describe its role in IoT.

A smart sensor is one that senses the environment and processes the input it collects by using its built-in computing capabilities

Section 13.6 Review Questions

1. Describe several enterprise applications.

Student selections will vary but may include a discussion of the French national railway system, Hilton hotel, Ford, Tesla, Johnny Walker, Apple and Starbucks.

2. Describe several marketing and sales applications.

Student selections will vary but may include discussions related to systems that disruptively collect data, provide real-time personalization, provide environmental attribution, and complete conversation paths.

3. Describe several customer service applications.

Student selections will vary but may include applications such as smart homes and appliances, smart cities and autonomous vehicles.

Section 13.7 Review Questions

1. Describe a smart home.

A smart home is a home with automated components that are interconnected (frequently wirelessly), such as appliances, security, lights, and entertainment, and are centrally controlled and able to communicate with each other.

2. What are the benefits of a smart home?

Smart homes are designed to provide their dwellers with comfort, security, low energy cost, and convenience. They can communicate via smartphones or the Internet. The control can be in real time or at any desired intervals.

3. List the major smart appliances.

Some examples of smart home appliances included in the chapter are:

· lighting

· television

· energy management

· water control

· speakers and chat bots

· home entertainment

· alarm clocks

· vacuum cleaners

· cameras

· refrigerators

· home security

4. Describe how Nest works.

Nest is a popular smart home set of applications that includes a number of programmable self-learning, sensor driven, Wi-Fi enabled products. This includes a learning thermostat, a smoke detector and security system. These applications can be integrated together and programmed to support the needs of the consumer and controlled centrally through nest.com.

5. Describe the role of bots in smart homes

B’s ots may be used in smart homes to meet and anticipate needs of consumers. In the future, AI based smart home systems may also be able to perform household tasks and manage processes for individuals.

Section 13.8 Review Questions

1. Describe smart city.

In smart cities, digital technologies (mostly mobile based) facilitate better public services for citizens, better utilization of resources, and less negative environmental impact.

2. List some benefits of a smart city to the residents.

In general, smart cities will provide residents better access to public services and better utilization of resources. Specific examples could include free access to citywide Wi-Fi, use of bike shares, checking out materials from a library and paying for bus rides.

3. What is the role of IoT in smart city initiatives?

IoT can provide fundamental data gathering functions in a smart city by tracking condition availability and use of items and providing a framework through which they can be provided to residents.

4. How are analytics combined with IoT? Why?

The IoT can provide a wealth of data for improved decision-making. Analytic applications are typically combined in an IoT system to provide insight and actionable information to improve processes, services, and other functions.

5. Describe smart and cognitive buildings.

Smart or cognitive buildings are able to learn the behavior of various building systems in order to optimize their use. This has the advantage of being able to diagnose abnormal situations and propose remedies, provide better customer personalization and more efficiently use energy.

6. What is a smart factory?

A smart factory is a flexible system that can self-optimize performance across a broader network, self-adapt to and learn from new conditions in real or near real time, and autonomously run entire production processes.

7. Describe technology support to smart cities

A variety of technologies exist to support smart cities. These technologies include systems that provide access to public benefits (Wi-Fi and libraries), transportation, e-commerce payments, infrastructure monitoring and analytics systems.

Section 13.9 Review Questions

1. What are self-driving vehicles? How are they related to the IoT?

Self-driving vehicles are personal and commercial vehicles that are driven by technology systems that eliminate the need for human control of the vehicle. These vehicles rely on a large number of sensors to perform these complicated driving activities and this use of sensors is a natural portion of the IoT.

2. What are the benefits of self-driving vehicles to drivers, society, and companies?

A large number of potential benefits exist and can include convenience, safety, reduced costs, information sharing, better understanding of resource use, reduction of waste etc.

3. Why are Uber and similar companies interested in self-driving vehicles?

Self-driving cars may allow these companies to extend their existing business model to incorporate the use of driverless vehicles when human driven vehicles are unavailable, too far away or not economically feasible.

4. What AI technologies are needed to support autonomous vehicles?

A variety of AI technologies are necessary to support autonomous vehicles. These technologies can include but are not limited to vehicle awareness, mapping, driving and collision avoidance and occupant comfort.

5. What are flying cars?

Flying cars are consumer level vehicles designed to fly as opposed to operate on established roadways.

6. List some implementation issues of autonomous vehicles.

Some implementation issues that exist include the cost of 3D map technologies, the capabilities of AI software, customer and insurance acceptance, technology research expenses the overall structure of the IoT to support these initiatives.

ANSWERS TO APPLICATION CASE QUESTIONS FOR DISCUSSION( (

Application Case 13.1: Using Sensors, IoT, and AI for Environmental Control at the Athens, Greece, International Airport

1. What is the role of IoT in the project?

IoT system provides environmental monitoring analysis and reporting of background information related to air pollution.

2. What is the role of sensors?

The sensors provide background information relating to a number of environmental factors including temperature, humidity, atmosphere pressure, ozone level, particulate matter and aircraft location.

3. What are the benefits of the project?

The project enables the airport to better understand environmental and pollution conditions so that improvements in systems, infrastructure and design can help reduce pollution overall.

Application Case 13.2: Rockwell Automation Monitors Expensive Oil and Gas Exploration Assets to Predict Failures

1. What type of information would likely be collected by an oil and gas drilling platform?

Many types of data could be collected, but some would include pressure, temperature, flow rate and many others.

2. Does this application fit the three V’s (volume, variety, velocity) of Big Data? Why or why not?

This project does that these parameters because of the large number of potential types of data to be captured and analyzed, the wide variety of those types of information and the fact that these systems are continuously running and processing large quantities of oil or natural gas.

3. Which other industries (list five) could use similar operational measurements and dashboards?

Student responses will vary, but may include pipelines, water wells, oil refineries, water purification plants, and waste management facilities.

Application Case 13.3: Amsterdam on the Road to Become a Smart City

1. Watch the video at youtube.com/watch?v= FinLi65Xtik/ and comment on the technologies used.

Student perceptions and comments on the video will vary.

2. Get a copy of the MIT case study at sloanreview. mit.edu/case-study/data-driven-city- management/. List the steps in the process and the applications that were likely used in IoT.

Student evaluations of the case study will vary.

3. Identify the smart components used in this project.

The smart components identified in the case include smart mobility, smart living, smart society, smart areas, smart economy, big and open data, infrastructure, and living labs.

Application Case 13.4: How IBM Is Making Cities Smarter Worldwide

1. List the various services that are improved by IoT in a smart city.

Examples from the case include resource allocation, water management, transportation, decision-making, traffic management, utilities management, emergency management, and forecasting crime.

2. How do the technologies support decision making?

The technologies provide accurate, real-time data that can be analyzed to make better decisions.

3. Comment on the global nature of the examples.

Student responses will vary, but it may be noted that these systems are being adopted worldwide which indicates a large amount of interest and recognition of the possible benefits.

Application Case 13.5: Waymo and Autonomous Vehicles

1. Why did Waymo first use simulation?

The use of the simulation was a part of him a DARPA and US Department of Defense grant.

2. Why was legislation needed?

Legislation was needed because this type of activity on public roads had not been envisioned and was not included in current law.

3. What is the Early Rider Program?

In 2018 passengers volunteered to participate in the service and were picked up by self driving bands.

4. Why will it take years before regular car owners will be able to enjoy a ride in the back seat of their self-driving cars?

There are a variety of reasons why implementation of the technology may take a while, examples include technical reasons (improvements in the technology, AI and sensors), acceptance (by individuals and government) and legislation (making driverless cars acceptable everywhere).

5. Why are Lyft, Uber, and Avis interested in self-driving cars

Driverless cars would allow these companies to expand their current business models by providing a different transportation alternatives when others are unavailable, too expensive or inconvenient.

ANSWERS TO END OF CHAPTER QUESTIONS FOR DISCUSSION( ( (

1. Compare the IoT with regular Internet.

In contrast with the regular Internet that connects people to each other using computing technology, the IoT connects “things” (physical devices and people) to each other and to sensors that collect data.

2. Discuss the potential impact of autonomous vehicles on our lives.

Student perspectives will vary, but may focus on an increase in convenience, a reduction in accidents and a reduction in costs.

3. Why must a truly smart home have a bot?

Student perceptions will vary, but many will argue that the addition of bots to a smart home provide an extra level of convenience for customers by reducing time and effort needed to perform household tasks.

4. Why is the IoT considered a disruptive technology?

The IoT is a disruptive technology because it has the ability to radically change the way that decisions are made, products and services are delivered, and the type of products, services and experiences that can be provided to customers and businesses.

5. Research Apple Home Pod. How does it interact with smart home devices?

Student responses will vary based on the date of research. Students may find that Apple products integrate with other Apple home products as well as third-party products to create smart home systems across multiple applications.

6. Alexa is now connected to smart home devices such as thermostats and microwaves. Find examples of other appliances that are connected to Alexa and write a report.

Student reports will vary based on the date the report is researched, current information can be found at www.amazon.com/smart-home-devices/.

7. Discuss the objective of smart cities to conserve the earth’s limited resources.

Smart cities have the ability to optimize the use of several resources required by residents these resources can include applications related to water use, energy use and pollution. By using these resources efficiently (and minimizing pollution) smart cities can have an impact on the environment.

8. What are the major uses of IoT?

McKinsey’s Global Institute (Bughin et al., 2015) identifies the following issues:

· organizational alignment

· interoperability challenges

· security

· privacy

· connection of data silos

· preparation of existing IT architectures

· management

· connected customers

9. Accidents involving driverless cars slow down the implementation of the technology. Yet, the technology can save hundreds of thousands of lives. Is the slowdown (usually driven by politicians) justifiable? Discuss.

Student opinions and perceptions will vary.

ANSWERS TO END OF CHAPTER Excercises( (

1. Go to theinternetofthings.eu and find information about the IoT Council. Write a summary of it.

Student reports will vary.

2. Go to https://www.ptc.com/en/resource-center or other sources, and select three IoT implemented cases. Write a summary of each.

Student selection of cases and their summaries will vary.

3. AT&T is active in smart city projects. Investigate their activities (solutions). Write a summary.

Student reports will vary based on the date of research.

4. It is said that the IoT will enable new customer service and B2B interactions. Explain how.

One of the major benefits of the IOT is the ability for businesses to gather and analyze large amounts of data relating to customer use of products. Analysis of this information will lead to insights into customer needs and preferences. This information can then be used to enrich customer service with assistance in using existing products better or additional products and services that could meet their needs more fully.

5. The IoT has a growing impact on business and e-commerce. Find evidence. Also read Jamthe (2016).

Student research and summaries will vary.

6. Find information about Sophia, a robot from Hanson Robotics. Summarize her capabilities.

Student perceptions and reports will vary based on the date of research. Current information is available at https://www.hansonrobotics.com/sophia/.

7. Examine the Ecobee thermostat and its integration with Alexa. What are the benefits of the integration? Write a report.

Student reports will vary based on the date of research and their perceptions. Current information is available at https://www.ecobee.com.

8. Enter smartcitiescouncil.com. Write a summary of the major concept found there; list the major enablers and the type of available resources.

Student research, reports and perceptions will vary.

9. Find the status of Bill Gates’s futuristic smart city. What are some of its specific plans?

Reports on this smart city will vary based on the date and types of research gathered.

10. City Brain is the name of Alibaba’s platform for smart cities. One project has been adopted in China and Malaysia. Find information and write a report.

Student research and the content of their reports will vary.

11. Find the status of delivering pizza by self-driving cars. Check Domino’s Pizza news.

Current status information will vary based on the date of student research.

12. India has many IoT applications, including projects for 100 smart cities. Read the 2016 status report atenterpriseinnovation.net/article/internet-thingsnext-big-wave-india-1270947471/ and find more recent information about it. Why do you think IoT is so widespread in India? Write a report.

Student reports will vary.

13. Read the Blue Hill report (Park, 2017) and summarize all the issues related to IoT.

Student analysis and reflections on this report will vary.

14. Find the status of smart cities as it is related to IoT and Cisco. Write a report.

Student reports and perceptions will vary based on the type of information researched and the date of that research.

15. Watch the video atyoutube.com/ watch?v=ZJr0X3XBMmA (14:36 min.). Write a summary about the five smart devices.

Student perceptions and reports on devices will vary.

16. Watch the video “Smart Manufacturing” (22 min.) at youtube.com/watch?v=SfVUkGoCA7s and summarize the lessons learned.

Student perceptions and reports will vary.

17. The competition for creating and using autonomous cars is intensifying globally. Find 12 companies that are competing in this field.

Reports will vary greatly based on the type of information researched and the date of that research.

18. Enter McKinsey Global Institute mckinsey.com/mgi/ overview and find recent studies on IoT. Prepare the summary.

Student selection of cases, and the case is available will vary based on the date of research.

19. AT&T is trying to connect autonomous vehicles to smart cities. Find information on the progress of this project. Identify the benefits and the difficulties.

Progress on this initiative will vary over time and student reports will reflect this.