INTERNET OF THINGS

SEPTEMBER 20, 2017

PLACEMENT PREPARATION COMMITTEE
IIM INDORE
 Internet OF Things | Placement Preparation Committee

IOT (Internet of things)

The term “Internet of Things” (IoT) was first used in 1999 by British technology pioneer Kevin Ashton to describe
a system in which objects in the physical world could be connected to the Internet by sensors. The goal of the
Internet of Things is to enable things to be connected anytime, anyplace, with anything and anyone ideally using
any path/network and any service. A world where the real, digital and the virtual are converging to create smart
environments that make energy, transport, cities and many other areas more intelligent. Internet of Things is a new
revolution of the Internet. Objects make themselves recognizable and they obtain intelligence by making or enabling
context related decisions thanks to the fact that they can communicate information about themselves.

The Impact on Daily Life?

For example, you are on your way to a meeting; your car could have access to your calendar and already know the
best route to take. If the traffic is heavy your car might send a text to the other party notifying them that you will be
late. What if your alarm clock wakes up you at 6 a.m. and then notifies your coffee maker to start brewing coffee
for you? What if your office equipment knew when it was running low on supplies and automatically re-ordered
more? What if the wearable device you used in the workplace could tell you when and where you were most active
and productive and shared that information with other devices that you used while working?

How does all this happen?

Functional view categorizes the components of an IoT system across the five value loop stages and five functional
layers—sensors, network, integration, augmented intelligence, and augmented behavior. It serves as a guide to the
functional considerations and technology choices of an IoT solution.

Components of IOT:

In the functional view of IoT, sensors create the data that are sent downstream to subsequent layers of the
architecture. Network is the connectivity layer that communicates data from the sensors and connects them to the
Internet.

IIM INDORE CONFIDENTIAL 1|PAGE

 Internet OF Things | Placement Preparation Committee

The integration layer manages the sensor and network elements, and aggregates data from various sources for
analysis. The augmented intelligence layer processes data into actionable insights. Finally, augmented behavior
encapsulates the actions or changes in human or machine behavior resulting from these insights. The augmented
behavior layer includes an edge computing sub-layer defined by local analysis (near the source of data) and action
without the need for human intervention. Aligned with these layers and the value loop stages are standards for
sensor management and data management and use, as well as security considerations including endpoint protection,
network security, intrusion prevention, and privacy and data protection.

Some IOT Critical Applications in different Sectors:

Agriculture: New innovative IoT applications are addressing these issues and increasing the quality, quantity,
sustainability and cost effectiveness of agricultural production. Today’s large and local farms can, for example,
leverage IoT to remotely monitor sensors that can detect soil moisture, crop growth and livestock feed levels,
remotely manage and control their smart connected harvesters and irrigation equipment, and utilize artificial
intelligence based analytics to quickly analyze operational data combined with 3rd party information, such as
weather services, to provide new insights and improve decision making.

Healthcare: Through monitoring, you can give adequate healthcare to people who are in dire need of help. Every
day, lots of people die because they do not get timely and prompt medical attention. With IoT, devices fitted with
sensors notify the concerned healthcare providers when there is any change in the vital functions of a person. These
devices would be capable of applying complex algorithms and analyzing them so the patient receives proper
attention and medical care. The collected patient information would be stored in cloud. Through remote monitoring,
patients can significantly reduce the length of hospital stay and perhaps, even hospital re-admission. This kind of
intervention is a boon to people living alone, especially seniors. If there is any interruption in the daily activity of a
person, alerts would be sent to family members and concerned health providers. These monitoring devices are
available in the form of “wearables” too.

Oil, Gas and Mining: Upstream companies (e.g., exploration and production) focused on optimization can gain
new operational insights by analyzing diverse sets of physics, non-physics, and cross-disciplinary data. Midstream
companies (e.g., transportation, such as pipelines and storage) eyeing higher network integrity and new commercial
opportunities will tend to find significant benefit by building a data-enabled infrastructure. Downstream players

IIM INDORE CONFIDENTIAL 2|PAGE

 Internet OF Things | Placement Preparation Committee

(e.g., petroleum products refiners and retailers) should see the most promising opportunities in revenue generation
by expanding their visibility into the hydrocarbon supply chain and targeting digital consumers through new forms
of connected marketing.

Environment: Much of commercial farming, like weather monitoring, suffers from a lack of precision and
requires human labour in the area of monitoring. Its automation also remains limited. IoT allows operations to
remove much of the human intervention in system function, farming analysis, and monitoring. Systems detect
changes to crops, soil, environment, and more. They optimize standard processes through analysis of large, rich
data collections. They also prevent health hazards from happening and allow better control. Current monitoring
technology for air and water safety primarily uses manual labour along with advanced instruments, and lab
processing. IoT improves on this technology by reducing the need for human labour, allowing frequent sampling,
increasing the range of sampling and monitoring, allowing sophisticated testing on-site, and binding response
efforts to detection systems. This allows us to prevent substantial contamination and related disasters. Though
powerful, advanced systems currently in use allow deep monitoring, they suffer from using broad instruments,
such as radar and satellites, rather than more granular solutions. Their instruments for smaller details lack the same
accurate targeting of stronger technology. New IoT advances promise more fine-grained data, better accuracy, and
flexibility. Effective forecasting requires high detail and flexibility in range, instrument type, and deployment.
This allows early detection and early responses to prevent loss of life and property.

Logistics: By putting an RFID chip in a pallet, for example, and a combined integrated device in the shipment
vehicle, data is transferred into the cloud, and the devices can identify the pallet and not only share its position
using GPS coordinates, but also bring in other data like weather conditions, traffic conditions, and driver-specific
data (i.e., driving pattern, average speed). Combining real-time sensor data with environmental data can provide
intelligence of higher order to all the stakeholders in the ecosystem. This allows the stakeholders to be socially
aware and make efficient decisions that drive overall productivity. This moves the supply chain process from a
reactive mode to a proactive one by offering information well before any activity happens. For example, providing
information about a traffic jam and potential delay before the trip starts has much higher value than getting that
alert when one is already stuck in the traffic. This context-aware intelligence can enhance the supply chain visibility
by implementing IoT. Clearly this scenario can be applied to others in the supply chain – from the manufacturer
to the end user, the Internet of Things means richer data and deeper intelligence for all parties in a supply network.

Key IOT Issues: Major issue areas which present to us some of the most pressing challenges and questions
related to the technology.

• Security: While security considerations are not new in the context of information technology, the attributes of
many IoT implementations present new and unique security challenges. Addressing these challenges and ensuring
security in IoT products and services must be a fundamental priority. Users need to trust that IoT devices and related
data services are secure from vulnerabilities, especially as this technology become more pervasive and integrated
into our daily lives. Poorly secured IoT devices and services can serve as potential entry points for cyber-attack and
expose user data to theft by leaving data streams inadequately protected.

• Privacy: The full potential of the Internet of Things depends on strategies that respect individual privacy choices
across a broad spectrum of expectations. The data streams and user specificity afforded by IoT devices can unlock
incredible and unique value to IoT users, but concerns about privacy and potential harms might hold back full
adoption of the Internet of Things. This means that privacy rights and respect for user privacy expectations are
integral to ensuring user trust and confidence in the Internet, connected devices, and related services. For example,
IoT amplifies concerns about the potential for increased surveillance and tracking, difficulty in being able to opt

IIM INDORE CONFIDENTIAL 3|PAGE

 Internet OF Things | Placement Preparation Committee

out of certain data collection, and the strength of aggregating IoT data streams to paint detailed digital portraits of
users. While these are important challenges, they are not insurmountable.

• Interoperability / Standards: A fragmented environment of proprietary IoT technical implementations will

inhibit value for users and industry. While full interoperability across products and services is not always feasible
or necessary, purchasers may be hesitant to buy IoT products and services if there is integration inflexibility, high
ownership complexity, and concern over vendor lock-in. The use of generic, open, and widely available standards
as technical building blocks for IoT devices and services (such as the Internet Protocol) will support greater user
benefits, innovation, and economic opportunity.

• Legal, Regulatory and Rights: The use of IoT devices raises many new regulatory and legal questions as well
as amplifies existing legal issues around the Internet. The questions are wide in scope, and the rapid rate of change
in IoT technology frequently outpaces the ability of the associated policy, legal, and regulatory structures to adapt.
One set of issues surrounds cross border data flows, which occur when IoT devices collect data about people in one
jurisdiction and transmit it to another jurisdiction with different data protection laws for processing. Further, data
collected by IoT devices is sometimes susceptible to misuse, potentially causing discriminatory outcomes for some
users. Other legal issues with IoT devices include the conflict between law enforcement surveillance and civil rights;
data retention and destruction policies; and legal liability for unintended uses, security breaches or privacy lapses.

• Emerging Economy and Development Issues: The Internet of Things holds significant promise for
delivering social and economic benefits to emerging and developing economies. This includes areas such as
sustainable agriculture, water quality and use, healthcare, industrialization, and environmental management, among
others. As such, IoT holds promise as a tool in achieving the United Nations Sustainable Development Goals. The
broad scope of IoT challenges will not be unique to industrialized countries. Developing regions also will need to
respond to realize the potential benefits of IoT. In addition, the unique needs and challenges of implementation in
less-developed regions will need to be addressed, including infrastructure readiness, market and investment
incentives, technical skill requirements, and policy resources.

Big Players in IOT:

• Amazon • Dell • Huawei • Oracle

• AT&T • GE • IBM • Siemens
• Bosch • Google • Intel • Salesforce
• Cisco • Hitachi • Microsoft • Samsung

IIM INDORE CONFIDENTIAL 4|PAGE