One of the most important applications of the IoT is smart grid system

Bulk impact comes from reduction of peak usageo Requires utility companies to buy electricity at highest rates and invest in extra capacity

IoT would allow utility companies to power down high-use systems during peak demand or Consumers can power down their own systems based on real-time data from the utility

companies

Smart grids help – get real time information about state of the grid instead of using peopleo Reduce outage times and decrease electrical waste

Another application is the use of sensors to monitor and optimize traffic

1. Adjust traffic light timing 2. Change routes for public transport 3. Issue alerts 4. Enable the imposition of congestion charges

o Stockholm – tax levied on vehicles entering and exiting central part of cityo Highly effective in reducing congestion and turned some motorists to public transporto Public attitude has changed from opposed to in favor

Waste Management optimization

Best examples are Cincinatti and Cleveland Both cities put RFID codes on their waste bins to track weight, time, and GPS coordinates Enabled pay as you go program by measuring weight – led to big decrease in waste and increase

in recycling

Another application cities can use as a result of IoT is smart water infrastructure

Sensors allow companies to track conditions, manage water pressure and leakageso Citiies like Beijing have reduced leaks by 40-50% using this technology

Consumer side - Smart meters allow consumers to track their usage and monitor leakages of their own

o Cities like indianpolis and new delhi have employed this technology and have seen water usage decline by 5-10%

Huge economic impact

Smart electrical grid system would create 200-500 billion in value according to McKo Reduce peak demand by 2-4% and overall demand by 1-2%

Traffic, waste management, and smart water applications would create 100-300 billion in value annually by 2025

Barriers to adoption

Fdsaf Political will – some policies that may be beneficial in the long run may be initially unpopular

o Tough to pitch such high cost projects when benefits may take a long time to realize

o Coordination – installing a smart grid system takes not just local approval but probably regional and national approval – more important in places like EU

Conclusion

Birds eye view of IoT but it’s tough to envision all the different ways it will change how business and society interact

Environmentallyo Good in that it limits waste, increases efficiency and lower our potential dependence on

fossil fuels o Smart grid system will enable the integration of renewable energy sources and could be

a real game changer for the industry Privacy

o One of the biggest issues today and will ocntinue to be o Trove of information about our lives are being handed over to companies and

governmentso Big Brother?o Security and network reliability will be key in the face of potential hackers

Social impacto Potentially Displace workerso Effectively robots and objects will replace many workers in a number of industries and

it’s unclear if new jobs and industries will be able to absorb that impact Economic impact

o Huge economic impact between 2.7 trillion to 6.2 annually according to McK Overall it’s going to be one of the defining trends over the next decade and will have a

tremendous impact