International Journal of Software Engineering and Its Applications

Vol. 9, No. 9 (2015), pp. 117-126

http://dx.doi.org/10.14257/ijseia.2015.9.9.10

A Study on the Internet of Things (IoT) Applications

Young-Mo Kang1, Mi-Ran Han2, Kyeong-Seok Han3 and Jong-Bae Kim4*

1,3
Dept. of IT Policy and Mgmt., Graduate School of Soongsil Univ.,
Seoul 156-743, Korea
2,4*
Graduate School of Software, Soongsil University, Sangdo-dong, Dongjak-gu,
Seoul, Korea
1
[email protected], [email protected], [email protected],
2
4*
[email protected]

Abstract
The government has adopted the field of Internet of Things as a national strategic
project, announcing the Internet of Things master plan to achieve a leading country of
hyper-connected digital revolution last May. The government has the promotional
strategy of reinforcing the competitiveness in software (SW) sensor components devices,
training specialists that will lead Internet of Things (IoT) services and products, and
internalizing security for Internet of Things products and services. Internet of Things, thus
expected to grow from 2 trillion and 300 billion last year to 30 trillion by 2020 in the
market, refers to the Internet environment where people, things around, data, etc. are all
connected to the wired and wireless network to mutually create, collect, share, and utilize
information. Internet of Things is the technology and service that includes generating
information (sensor) - acquisition (parts, devices) - sharing (Clyde) - utilization (Big
Data) - application software. Internet of Things is getting a lot of attention from the
public due to the effect of increasing export businesses and jobs and has become a
buzzword among businesses. The Internet of Things market has a tendency to grow in the
future as it is extended from social infrastructure (utilities, transportation, automation,
etc.) and safety management to the consumer sector centered on life services.
Sophisticated wireless communication technology is expected to form a huge network
connected to all object units as a communication function.

Keywords: IoT, M-Internet, RFID, B2C

1 Introduction
OECD has recognized the IoT as a new growth engine that will promote the innovation
of information and communication and of other sectors that will bring a new added
value. But the IoT is vague in definition and discussion has only been focused on its
description. In addition, it has been pointed out that general users did not easily accept the
IoT. This study attempted to introduce innovative practices using the latest IoT and to
view the new demand that can be used in other areas, such as the maximizing of the use of
data derived through the IoT. This study put an emphasis on the point that we need to
worry about how to use the IoT considering current situations, internal capabilities,
market environments, policy goals, etc. Our society is entering the hyper connected
society where all the things are connected to the Internet because of the rapid
development of information and communication technologies. In the hyper connected
society, adding communication functions to all the things, such as houses, cars, watches,
and cameras, connects new values. With the stream of times and as the key means of the

4*
Corresponding author. Tel. : +82-10-9027-3148.
Email address: [email protected](Jong-Bae Kim).

ISSN: 1738-9984 IJSEIA

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realization of a 'creative economy,' the government has adopted the sector of the IoT as a
national strategy and the basic plan of the IoT to realize a leading country of hyper-
connected digital revolution last May. The government has a plan of reinforcing the
competitiveness of software (SW), sensors, components, and devices. The strategy is to
promote the security internalization of IoT products and services from the planning phase
in the special enterprises that will lead the creation and innovation of the IoT services and
products. This study attempted to mention the concept, market environment, and main
applications of the IoT to identify the evolutionary process of the IoT quickly evolving at
an early stage and to make the proactive response. Based on this, the government plans to
allow the IoT market to grow from the current size of 2 trillion and 300 billion to the
size of 30 trillion by 2020, and expects the effect of increasing export enterprises and
creating jobs. Thus, this study tried to review the concept, market environment, and main
applications of the IoT to identify the evolution of the IoT evolving rapidly and to
proactive respond to it.

2. Concepts and Coverage of the IoT

Recently, the term Internet of Things (IoT) has been appearing frequently in the
media. The IoT has been highlighted as a new growth engine of the ICT industry.
However, it was 15 years ago that the term things of Internet was first used, when
Kevin Ashton of P&G mentioned that the IoT mounted with RFID and sensors
would be e built in 1999. It was 150 years ago when the communication between
men was done via telephone. To the exclusion of communication other than the
Internet and simple communication, network devices have made a direction long
ago for the Internet to go smoothly and to allow men to communicate with each
other through various routing protocols. The IoT means the Internet environment of
generating, mutually collecting, sharing, and using information by allowing all the
things, such as people, around things, data, etc., to be connected to wired and
wireless networks. The IoT is the technologies and services, including information
generation (sensors), information collection (parts, devices), information sharing
(Clyde), information literacy (Big Data), and application software (SW). Through
this, consumers have extended the scope of connection to the virtual world by
communicating with each other about things networked. In the machine to machine
(M2M: Machine to Machine) period, in the initial phase of things of internet, the
IoT has been used for the management of transportation cards, bar codes with
pricing information when purchasing goods, courier delivery tracking systems,
navigation, ATM machines, and plants/ facilities. Then, the recent advance in high-
speed wireless technologies has accelerated along with the supply of connected
devices based on networks, such as smartphones, tablet PCs, e-book devices, etc.
and the implementation of communication in day-to-day things has become
possible. Thus, the scale of the IoT market is rapidly increasing. Currently, the IoT
tends to show the commercialization of smart grid, smart home, healthcare, and
intelligent vehicle services through the convergence between various industries. For
example, previously, when you entered your house after returning home late,
automatic sensors were turned on as you took off your shoes. In addition, you may
have adjusted the temperature of the house through a heating and cooling control
system. Now, it has become possible to adjust interior lights, temperature, and
humidity via remote control using a smartphone before returning home. Even each
of the intelligent devices in the house informs you of the optimum temperature and
humidity and the time tailored to you as the devise comes to learn the existing data
automatically. As seen above, the IoT is the one where the scope of connection has
been expanded by connecting communications networks through computers and

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connected devices in the connection (M-Internet) of the network via the existing
computer, and furthermore adding communication functions to all the units around.

Figure 1. Changes in Things of Internet Depending on Changes in the

Communication Environment [1]

Thus, all the devices are provided with the service that the consumer can check
anytime, anywhere, and whatever. This explains the concept of the IoT.

3. Environment of the Market of Internet of Things

The market of Internet of things around the world is expected to grow highly centered
around equipment and services. Thus, major economies of the world have published
subsequent promotion policies by selecting the IoT as a means to realize industrial
innovation for economy and industry innovation. A review of the growth rate of the IoT
by sector found that the service market is expected to grow significantly focused on smart
energy-related areas, intelligent transport services, industrial automation, and industrial
infrastructures. In addition, the expansion of the service market is expected to be centered
around public safety, distribution, and logistics through the convergence of various
industries in the future. The Korean market of the IoT is in the initial step and limited to
inter-company services. In addition, the activation is also rated to be low compared to
developed countries. The domestic market of the IoT mainly consists of small sensor
network services led by mobile operators, for example, logistics tracking, telemetry
services, public services, etc. However, it has not been significantly expanded into the
consumer market. In the consumer area, high-pass systems have been activated and the
services where the recent technologies have been applied are being commercialized, such
as simple payment and security services provided by mobile operators as well as
telematics, healthcare, smart farm, etc.

3.1. Market of Things of Internet in Korea

The Korean market of the IoT increased by about 24% on an annual average in the
number of M2M-lines since 2008. Currently, the number exceeds 2.1 million. Most
importantly, the proportion of billing, security, smart meters, telematics, mobile POS
(point of sales), etc. based on 3G communication networks has been found to be high.

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The M2M lines accounts for a low proportion in the entire wired and wireless
communication market. However, the M2M service shows a high growth compared to
other communication services of late. According to Machina Research (2013), the Korean
market of the IoT showed 29.2% of growth rate on an average rate from 2 trillion and
80 billion, and is expected to exceed 22 trillion and 800 billion in 2020. By category,
the service and application market is expected to sharply grow by 98% annually until
2022, and to account for a high proportion of 33% of the total.
A review of the domestic market of the IoT by category in 2012 found that the
automotive sector showed a relatively high prevalence proportion, followed by intelligent
buildings, home appliances, and so on. More importantly, the security sector including
high-pass systems (7.73 million units) and CCTVs (2.74 million units) showed a
relatively high prevalence proportion, followed by AV devices, mobile POS, smart
meters, etc. The domestic market of the IoT in the future is expected to be expanded
significantly into the consumer area, such as health care, living convenience, etc. and the
automotive and smart meter sectors are expected to grow rapidly.

4. Main Applications of Things of Internet in the United States

Freestyle Soda Machine, supplied by the world's largest beverage maker Coca-Cola,
is a typical case where the technology of things of Internet has been applied. The vending
machine allows consumers to mix 147 kinds of tasty drinks according to their tastes.
Consumers will select their desired taste in advance through an app.
Then, the vending machine will automatically prepare and provide the drink through
the recognition of the QR code. Wireless Internet chips are mounted on each vending
machine. Thus, the information on beverage consumption, sales statistics by time, and
popular beverages will be transmitted to the main office in real time. The Coca-Cola
Company can exactly identify popular beverages and additive kinds for particular regions.
Then, it will reflect the information on the establishment of marketing strategies
considering regional tastes. In addition, it becomes possible to check the inventory of
beverages and additives by mounting RFID tags on each cartridge for additives within
each vending machine. In addition, Deconstruction, a start-up of the IoT in the United
States, is in the spotlight as it developed a monitoring support solution in dissolving the
construction site using sensor data. Deconstruction developed an mBulider sensor where
the software that monitors and analyzes the temperature, humidity, noise, and vibration of
the construction site in real time has been combined. Deconstruction provides the service
of informing you of a certain degree of damage with an analysis engine designed to
predict the perceived noise and vibration level of the surrounding area by analyzing the
data measured via an mBulider sensor. The services also allow you to identify whether
fines or protests are likely to occur or not by comparing the regulatory situation
corresponding to the construction area and the situation in the field through the
dashboard. Thus, it supports the decision-making of the contractor and the proactive
prevention of unnecessary costs.

Table 1. IoT Market of the World (20132020, unit: % 1 bil.)

Segment 13 14 15 16 17 18 19 20 CAGR
%
Market 2,347 2,704 3,349 4,448 505 9,635 12,863 17,076 26.2

Growth - 15.2% 23.8% 32.8% 54.9% 39.8% 33.5% 32.8%

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5. Costs of Things of Internet

In the IoT, most basic step is RFID. The main causes for costs are tags or sensors
and readers. In the case of the retail sector that started to introduce RFID, it is
difficult to recover tags. Thus, the price drop of tags will play an important role in
the adoption decision. As the RFID costs fall, the reduction of labor and labor costs
is expected after the introduction. With the decline of a rate failure and the
improvement of quality, the effectiveness, such as customer satisfaction, etc., will
increase. In the first 3 or 4 steps in the IoT presented by Fleisch (2010), the price
drop after introduction of equipment due to the improvement of sensor technology
seems to be the main factor of the spread of the IoT. In the current moment when
the IoT receives attention from the public and becomes a topic of management
among enterprises, an enterprises attitude toward the IoT appears to be a bit
conservative. Given the decline of the overall sensor price and the low network
costs, the main cost factors that the enterprises taking advantage of the IoT may
recognize seems to included manpower costs to make the use of the IoT , and costs
to build up a data management system. The amount of information with the number
of sensors increasing is believed to grow exponentially. A method of building up a
closed system in SMs or on individual groups may cause high social inefficiency
and is very likely to delay the formation of the IoT ecosystem.

6. Things of Internet in the Automotive and Consumer Sectors

RFaxia and CSR, a semiconductor specialist in the next-generation RF solution for
wireless communication, promotes a strong partnership for the IoT in the automotive and
consumer sectors. A fabless semiconductor company, RFaxis, Inc. (www.rfaxis.com),
announced that it would partner with CSR plc (http://csr.com) for the reference design
aimed at a plurality of wireless connectivity markets.
CSR provides a variety of portfolios of the chipset connected to ensure end-users
experience high quality, high reliability Wi-Fi/Bluetooth, including the seamless, high-
performance wireless audio and whole - home coverage. For the reference designs,
RFaxis single-chip, single-die CMOS RF Front-end Integrated Circuit Circuit (RFeIC
)) technology formed in pairs with CSRs UniFi CSR6030 2.4GHz 802.11n Wi-Fi
solution, CSR8811, and CSR8311 (CSR8811 and CSR8311 ) Bluetooth
(Bluetooth) Low Energy radio chipset. These reference platforms are aimed at vehicle
infotainment, consumer electronics, IoT, M2M (machine-to-machine, intelligent objects)
communications markets being equipped with a variety of goods such as entertainment
(ICE) systems built-in a car, car connection kits, wireless speakers, health and fitness -
related wearable computers, personal navigation devices (PDN), cameras, scanners, and
printers.
The integrated level of RFaxis RFeIC reduces the time-to-design and the time-to-
market, and provides a very simple solution that allows device manufacturers to run the
same as a plug-and-play. Thus, RFaxis technology reduces the product development cycle
scheme within a few weeks, which takes several months for competitors. It also meets
standards of all the performances that component manufacturers and producers have
proposed.
Thomas Carmody expects that the company can raise attach rates of goods in a
strategic focus area in an integrated, low-cost RF front-end approach of the company
saying I am, happy to offer high-performance, low-cost platform solutions so that
customer can differentiate end products no matter what sector they are engaged in.

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7. Things of Internet in the Automotive and Consumer Sectors

In October 2009, Korea Communication Commission released a basic plan for the
build-up of M2M Communication Infrastructures to enhance national competitiveness and
promote services in the IoT filed. Through this plan, the committee also promoted the
excavation of a service model leading the public sector, development of M2M
communication infrastructures, and promotion of national and international
standardization, improvement of the legal system, etc. In the Korean situation when the
era of IoT began to be visualized due to the development and 3 key technologies, such as
high-speed mobile communication, high-sensitivity sensors, big data processing, etc. and
to the low price of the services, the IoT technology is collectively referred to as the ICBM
with (IoT, Cloud, Big Data, Mobile) technology, which can act as a driving force to be
developed into a platform of the hyper- connected network industry. Since 2012, the IoT
technology has been considered as the 3rd, 4th as one of the 10 strategic technologies that
Gartner has selected. The technology is growing along with the existing M2M
communication technology. For the IoT, it is expected to take time more than 10 years to
enter the maturity period.

Figure 2. Development of IoT and M2M Technologies

In this situation, the Korean government has promoted the manufacturing innovation
3.0 strategy with a plan of securing the competitive advantage of only manufacturers by
creating the new convergence industry through the convergence of IT and SW, creating a
new-added value and switching an advanced chase-type strategy to a leading-type strategy.
More importantly, the government made a detailed plan to promote a smart system of 10,
000 plants by 2020 after the intelligence and optimization of the entire process of
production through the convergence of IT SW, IoT, etc. Thus, it is necessary to respond to
this. The principles of promoting the spread of smart plants were set as follows
(customized application): For the scope (network between individual enterprises and
enterprises) and technologies (general purpose (bar, etc.)), the latest ones (IoT, etc.) have
been applied. The technologic application has been initially introduced to the business and
item highly demanding (bridgehead strategy) smart plants and has been spreading
thoroughly in the industry.
In the initial stage of business (gradual advancement), smart plants are being
implemented using the S/W H/W already developed, and more advanced technologies are
being developed and applied. Therefore, it is necessary to seek a way of enhancing the
competitiveness of the entire manufacturing sector and to actively foster new industries
along with the promotion of a smart system of the manufacturing industry. To this end, it

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is required to conduct a study on how to raise productivity and efficiency utilizing the IoT
into the manufacturing process. Preferentially, it is needed to converse thinking into a
creative way to give communication capabilities to everything. It is also required to
develop technologies. Manufacturers will then enhance corporate competitiveness and
will be able to offer value-added services through the appropriate utilization of the IoT.
Recently, the Ministry of Science, ICT, and Future Planning selected the IoT as the key
technology of the new industry and announced a long-term plan containing the 'New
Industrial Internet Development Plan (June 5, 2013).
The IoT is a creative engine for upbringing Internet access businesses, enlarging the
new industrial Internet market, and creating creative jobs. In line with this, the
government plans to pursue a policy issue to create a market as a leading business, to
enhance technological competitiveness of enterprises, to support overseas expansion of
enterprises and to create the foundation, such as R&D.

7.1. Things of Internet based on TRFID-based Sensors, Wearable and Mobile

Terminals, etc.
The IoT enables consumers to save medical services expenditures and to create quality
improvement effects as it is combined with the personal care services sector, such as
remote patients monitoring, home care of the elderly, and treatment and management of
chronic diseases. Hospitals are introducing the IoT to build up a smart hospital system,
such as a telehealth system to monitor positions, lines of flows, and movements of
patients, medical staff, and facilities, to generally manage an access to medical data, and
to provide video call services. Recently, the medical industry all over the world has been
introduced to the IoT-based system. This introduction is demonstrated through cases of
efforts to improve the effect of the medical environment.

7.2. The Latest Technology of Things of Internet

In the Korean case, the IoT is gradually being commercialized from the services of the
early stage, such as simple payment services (POS, Point of Sale), security services, etc.
around mobile operators, to the latest services, such as healthcare and Smart Farm.
However, the environment is still insufficient to create innovative new services through
the cooperation among terminal vendors, platforms, networks, and service providers. Last
September, SK Telecom provided its open-typed M2M platform to partners free of charge
for win-win growth with SMs and industrial activation. The company provides various
supports for the partners wishing overseas expansion to export the applications and
devices that it developed through the platform. KT also plans to enter platform hosting
business while expanding its business extension stayed in B2Bi into the B2C, showing a
high average revenue per subscriber (ARPU), such as healthcare, etc. In addition, LG U +
completed the build-up of M2M-based platform plans to build an application platform on
three areas this year: connected car, smart retails including vending machines and etc.,
and video services, respectively.

8. Conclusions
The IoT market in the future trends to grow as its scope is expanded into the consumer
sector centered on life style services from the social infrastructure (utilities,
transportation, automation, etc.,) and safety management sector. Sophisticated wireless
communication technologies are expected to make a huge network as communication
functions are connected to all object units. From the prospect of the electrical construction
industry, we have entered the era of connecting all things via communication through the
era of connecting all the things using electricity.
This market of the IoT can be used as the power of the new market in the new industry.
However, in contrast, various convergences also may imply threat factors that may cause

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inter-industry areas to be vague. Therefore, the electrical engineering industry should

respond to and adapt to the era of the IoT as follows: First, it is necessary to converge
thinking into one where communication functions can be granted to electric engineering.
Second, as communication functions are attached to a variety of electrical equipment such
as intelligent lighting, smart meters, distributed generation power, etc., it is expected to be
necessary to provide continuous education and training on the properties of these devices
and construction methods. There is a need to foster creative, converged human resources
based on communication functions on the basis of electricity. Third, as the main functions
of electricity and communication works can be vague, there is a need to carry out the
standardization to overcome the problem, to establish regulations, and to solidify the
partnership between the construction industry and the lighting industry.

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Authors
Young-Mo Kang was a CEO at A/GE. He is studying his doctor's
degree of software engineering in Graduated Soongsil University,
Seoul. His research interests are in areas of Policy of Information
Technology, IT Convergence and AI.

Mi-Ran Han received her bachelor's degree of Statistics in

Dongguk University, Seoul (2002). She is studying her master's
degree of software engineering in Graduated Soongsil University,
Seoul. Her current research interests include open source
development and security.

Kyeong-Seok Han received his bachelor's degree of Education

(1979) and master's degree of Management (1984) in Seoul National
University, and doctors degree of MIS in Purdue University, USA
(1989). Now, he is a professor in the Dept. of Management, Soongsil
University, Seoul, Korea. His research interests focus on Technical
MIS, Digital Economy, Agent-Eased Simulation, Web Programming,
ERP.

Jong-Bae Kim received his bachelor's degree of Business

Administration in University of Seoul, Seoul (1995) and master's
degree (2002), doctors degree of Computer Science in Soongsil
University, Seoul (2006). Now, he is a professor in the Graduate
School of Software, Soongsil University, Seoul, Korea. His research
interests focus on Software Engineering, and Open Source Software.

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