Realizing the full potential of the Internet of Things

Realizing the full potential of the

Internet of Things

2 Deloitte University Press | Realizing the full potential of the Internet of Things | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.

The “Internet of Things” (IoT) is often described as a collection of connected sensors, but it is actually a much more complex concept.

It involves not only the connection and integration of devices that monitor the physical, but also the aggregation, relationship, and analysis of the information those devices create.

In order to be successful with the IoT, firms need to focus not only within their own products and services, but outward to a complex ecosystem of partnerships and collaborations

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To better understand the IoT, let’s take for an illustrative example: the wearable activity tracker and the emerging industry of tracking physical and health activities. These devices are one of the most prominent offerings in the IoT pantheon.

Their potential benefits are revolutionary in that they promise to accurately monitor and analyze health and fitness activity on a continuous, real-time basis.




There are several layers of activity mixed up in conversations about the Internet of Things.

The bottom layer of connected sensors dominates the discussion among technologists. However, it is these upper layers of IoT activity that, if not done well, can cause most IoT initiatives or products to struggle or ultimately fail.




Local sensingThe lowest layer of the IoT is the ability to sense some aspect of the physical environment. An individual sensor typically measures a few components of a narrow reality.

But the Internet of Things is not just—or even primarily—about the sensors.

steps taken

sleep quality

stairs climbed

distance traveled




Data integrationHealth activity trackers increasingly supply data not just to you, but to your social network, your physician, your hospital, and your health insurance company. Since activity trackers collect different types of data on different functions using different formats, the integration layer is a substantial challenge.

Developing the standards to aggregate data and control sensors remotely across different types of sensors and devices.

smartphone

hospital

social media

physician




Analytics of thingsIt has been said that “data without meaning, without soul, will not move people to change their behaviors over the long term.” Much of the benefit of the IoT lies in our ability to leverage the useful data we collect with it.

Hit 10,000 steps today?

anomaly detection

optimization

comparative usage

prescriptionWhen in your sleep cycle to wake up

Time to get off the couch!

Your calories burned vs. others




Cognitive actionJust as the brain needs hands, feet, and speech to carry out its decisions, IoTnetworks need mechanisms of cognitive action if it’s going to accomplish much. Consider, for example, what it would take to develop a widespread program of cognitive action in health and fitness. Imagine what that future state might look like:

updated electronichealth records

patient compliance

doctor monitoring

new health insurancepricing models

new reimbursement models

improved securityand safeguards




As a society we are very good at developing new sensor technologies. But when it comes to integrating data across diverse systems and sensors from multiple organizations, we still have room to improve.




What does this mean for your IOT application?

To find your place in the IoT, you first need to envision a broad end-state. This vision should address business problems the IoT will solve for you and your customers. The end-state vision should also address the implications of the IoTfor your company’s competitive position and ecosystem relationships.

Through the IoT, technological change may make it possible to do without wires, but we can’t escape the necessity of creating connections via planned organizational and inter-organizational changes.




Realizing the full potential of the IoT lies in collecting, connecting, analyzing and acting on data. Execution is everything.

Collecting

Connecting

Analyzing

Acting




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How the Internet of Things may reshape consumer and industrial environments

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Meet the authors

JOHN LUCKERprincipal with Deloitte Consulting LLP, Global Advanced Analytics & Modeling market leader, and a US leader of Deloitte Analytics.

TOM DAVENPORTworld-renowned thought leader and author, the President’s Distinguished Professor of Information Technology and Management at Babson College, a Fellow of the MIT Center for Digital Business, and an independent senior advisor to Deloitte Analytics.



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Realizing the full potential of the Internet of Things

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