CSC 3304 IoT Architecture and Smart Applications

COURSE CONTENTS
Module 1 Introduction to Internet of Things (IOT)

Unit 1 Introduction to Internet of Things (IoT)

Unit 2 IoT Origin and Impact Contents
Unit 3 Overview of IoT-in Digital Transformation

Module 2 Building Blocks of IOT

Unit 1 Building Blocks of IoT

Unit 2 IoT Device Architecture
Unit 3 Platforms Supporting IoT

Module 3 Security Considerations Using IOT

Unit 1 Security Considerations Using IoT

Unit 2 IoT Security Considerations Solutions
Unit 3 IoT Use Cases

Module 4 Internet of Everything (IoE)

Unit 1 Opportunities with IoT

Unit 2 Internet of Everything (IoE)

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 UNIT 1 INTRODUCTION TO INTERNET OF THINGS (IoT)
Contents
1.1 Overview of Internet of Things
1.2 Definitions
1.3 Characteristics of IoT
1.4 Applications of IoT
1.5 Conclusion
1.6 References/Further Reading

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1.1 Overview of IoT

A thing, in the respect to the Internet of things (IoT), is a physical object with a
unique identifier, an embedded system, and the capability to transfer data over a
network and actuators that permit things to act (such as to open or close a door, to
switch on or off the light, to increase or decrease engine rotation speed and more).
Things are objects of the physical world (physical things) or of the information
world (virtual world) which are capable of being identified and integrated into
communication networks. Things have associated information, which can be static or
dynamic.

Physical things exist in the physical world and are capable of being sensed, actuated,
and connected. Examples of physical things include the surrounding environment,
industrial robots, goods, and electrical equipment.

Virtual things exist in the information world and are capable of being stored,
processed, and accessed. Examples of virtual things include multimedia content and
application software.

1.2 Definitions

The Internet of Things (IoT) is a reference to a collection of devices or objects that

are linked together using an Internet connection. The hub for the collection (the
“things” part) is what sends and collects data using the Internet, which helps the
devices to make decisions and remember particular patterns and routines for action to
be carried out without any manual involvement. IoT simply means the connection of
multiple devices to the internet.

ITU Definition:
“The IoT can be viewed as a global infrastructure for the information society,
enabling advanced services by interconnecting (physical and virtual) things based on
existing and evolving interoperable information and communication technologies
(ICT).”
These devices can include multiple appliances that need to be connected for reasons
including automation and real-time control of the device. As the IoT has both real-
time and historical data stored, it can provide effective decision-making instructions
to devices, and control certain actions and aspects of when and how they function.
This technology enables your systems and devices to be automated cost-effectively.
This concept includes buildings, vehicles, production machinery, fridges, street
lamps, rehabilitation equipment, and everything else imaginable. The sensors are not
in all cases physically attached to the things, sensors may necessitate monitoring, for
instance, what happens in the closest environment to a thing.

The Internet of Things (IoT) is an emerging paradigm that enables the communication
between electronic devices and sensors through the internet to facilitate our lives. IoT
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uses smart devices and the internet to provide innovative solutions to various
challenges and issues related to various business, governmental, and public/private
industries across the world. IoT is progressively becoming an important aspect of our
life that can be sensed everywhere around us. On whole, IoT is an innovation that
puts together an extensive variety of smart systems, frameworks, and intelligent
devices and sensors.

1.3 Characteristics of IoT:

 Interconnectivity: With respect to IoT make possible the interconnection of

anything with the global information and communication infrastructure.
 Unique Identity: Each IoT device has a unique identity and a
unique identifier (IP address)
 Heterogeneity/ Interoperability: The devices in the IoT are heterogeneous as
based on different hardware platforms and networks. They can interact with
other devices or service platforms through different networks. It supports
several interoperable communication protocols and can communicate with
other devices and also with infrastructure
 Enormous scale: The number of devices that need to be managed and that
communicate with each other will be at least an order of magnitude larger than
the devices connected to the current Internet. The ratio of communication
triggered by devices as compared to communication triggered by humans will
noticeably shift towards device triggered communication.
 Dynamic & Self Adapting: IoT devices and systems may have the capability
to dynamically adapt to the changing contexts and take actions based on their
operating conditions, users' context, or sensed environment. For instance, the
surveillance system is adapting itself based on context and changing
conditions.
Moreover, the number of devices can change dynamically.
 Self-Configuring: allowing a large number of devices to work together to
provide certain functionality.

1.4 Applications of IoT:

A great transformation can be observed in our daily routine life along with the
increasing involvement of IoT devices and technology. For instance, the concept of
i. Smart Home Systems (SHS) and appliances that consist of internet-based
devices, automation systems for homes, and reliable energy management
systems.
ii. Smart Health Sensing system (SHSS). SHSS incorporates small intelligent
equipment and devices to support the health of human beings. These devices

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 can be used both indoors and outdoors to check and monitor the different
health issues and fitness levels or the amounts of calories burned in the fitness
center etc. Also, it is being used to monitor critical health conditions in
hospitals and trauma centers as well. Hence, it has changed the entire scenario
of the medical domain by facilitating it with high technology and smart
devices. Moreover, IoT developers and researchers are actively involved to
uplift the lifestyle of the disabled and senior age group people.
iii. Smart Transportation. IoT has brought up some new advancements to make
it more efficient, comfortable, and reliable. Intelligent sensors, drone devices
are now controlling the traffic at different signalized intersections across major
cities. In addition, vehicles are being launched in markets with preinstalled
sensing devices that can sense the upcoming heavy traffic congestions on the
map and may suggest you another route with low traffic congestion.
iv. Smart Cities: Urban cities have now become enormous information gathering
centers with IoT sensors collecting data on infrastructure management, home
automation, building security, traffic management, and city parking systems
every day. All the gathered data is stored and analyzed so that city officials can
respond to problems in real-time. Eventually, the data collected from various
smart city components are massive. However, the flood of data is a challenge
that needs to be considered while planning for a sustainable smart city as it can
be very difficult as well as expensive to manage this vast amount of data. To
address this issue, smart city initiatives can implement edge analytics, which
collects the data and analyzes it.
v. Financial sector
Many banking institutions are implementing edge computing together with
smartphone apps to provide services to customers in a better manner. Also,
ATMs, banking apps, and kiosks work on similar principles – gathering and
processing data, making such utilities more responsive by providing users with
a broader suite of abilities. For high-volume trading and finance firms, even a
millisecond of delay in a trading algorithm computation can lead to huge
losses. The edge computing architecture is placed near the stock exchange data
servers to run resource-intensive algorithms which result in reduced latency
and localized data traffic. This provides such financial institutes with more
accurate as well as up-to-date information to keep their business running.
Apart from that, banks and other financial firms use edge analytics to derive
insights to understand their customers better and provide a seamless user
experience. Banks also use location based suggestions and customer
recommendations to cross-sell products in near real-time.
vi. Industrial manufacturing: Manufacturing is one of the industries that has
derived maximum value by deploying Industrial IoT. Manufacturers can
collect data to enable better predictive maintenance and energy efficiency by
incorporating data storage and computing into industrial equipment. Also, IoT
sensors can help to reduce costs and energy consumption by maintaining
consistency and productive uptime. The continuous data collection and
analysis facilitated by a smart manufacturing solution helps to customize

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 production operations to efficiently meet consumer demands. With edge
computing for an IoT setup, manufacturers that operate in low bandwidth or
no bandwidth can benefit phenomenally. For instance, oil rigs located in
remote areas can use edge computing architecture to collect, monitor and
process data on various environmental factors without having to rely on a data
center infrastructure that is remote.

SELF -ASSESSMENT EXERCISE(S)

i. What do you understand by Things in respect to IoT?

ii. Define IoT
iii. List the characteristics of IoT
iv. Explain the applications of IoT

1.5 CONCLUSION

The IoT can be viewed as a global infrastructure for the information society, enabling
advanced services by interconnecting (physical and virtual) things based on existing
and evolving interoperable information and communication technologies (ICT).
These devices can include multiple appliances that need to be connected for reasons
including automation and real-time control of the device. As the IoT has both realtime
and historical data stored, it can provide effective decision-making instructions to
devices, and control certain actions and aspects of when and how they function.

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1.6 REFERENCES/FURTHER READING

Obe O. O. and Abe O. (2018). Development of Wireless Home Automation System

for the Disabled People (Deaf, Dumb, and Alzheimer's). International Journal
of Scientific & Engineering Research 9(1):1-6.

Folasade Oluwayemisi Akinloye Seminar paper presented at the Faculty of

Communication and Information Technology, Igbajo
Polytechnic, Igbajo.

www.softwebsolutions.com/resources/edgecomputing-for-IoToperation.html

Kumar S, Tiwari P and Kumar et al. (2019), Internet of Things is a revolutionary

approach for future technology enhancement: a review J Big Data 6:111
https://doi.org/10.1186/s40537-0190268-2

“Overview of the Internet of Things.” ITU, June 15, 2012.

http://www.itu.int/ITU-T/
recommendations/rec.aspx?rec=Y.2060

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UNIT 2 IOT ORIGIN AND IMPACT

CONTENTS

2.1 IOT Origin and Impact

2.1.1 IoT Origin
2.1.1.1 Realizing the Concept
2.1.1.2 Connecting Devices in New Ways
2.1.1.3 Customer Privacy
2.1.1.4 Security
2.1.2 IoT Impacts
2.2 IoT Revolution in Industries
2.3 Use Case: Fleet Management Using IoT
2.4 Benefits of IoT in Fleet Management
2.5 Use Case: IoT for Financial Services
2.6 Benefits of IoT for Financial Services
2.7 IoT in Dairy Farming
2.7.1 Automatic Milking System (AMS)
2.7.2 Cow Monitoring
2.7.3 Feeding Automation
2.8 Benefits of IoT in Dairy Farming
2.9 Conclusion
2.10 Further Reading

2.1 IoT Origin and Impact

The Internet of Things, or IoT, is growing by leaps and bounds, with millions of new
sensors and devices going online every month. While it’s far from comprehensive, the
timeline below should give you a general idea of where IoT has come from and where
it’s headed in the future.

2.1.1 IoT Origin

The first telemetry system was rolled out in Chicago way back in 1912. It is said to
have used telephone lines to monitor data from power plants. Telemetry expanded to
weather monitoring in the 1930s, when a device known as a radiosonde became
widely used to monitor weather conditions from balloons. In 1957 the Soviet Union
launched Sputnik and with it the Space Race. This has been the entry of aerospace
telemetry that created the basis of our global satellite communications today. Broad
adoption of machine-to-machine (M2M) technology began in the 1980s with wired
connections for SCADA (supervisory control and data acquisition) on the factory
floor and in-home and business security systems.
In the 1990s, M2M began moving toward wireless technologies. ADEMCO built its
private radio network to address intrusion and smoke detection because budding

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cellular connectivity was too expensive. In 1995, Siemens introduced the first cellular
module built for M2M. The Internet of Things (IoT) has not been around for very
long. However, there have been visions of machines communicating with one another
since the early 1800s. Machines have been providing direct communications since the
telegraph (the first landline) was developed in the 1830s and 1840s. Described as
“wireless telegraphy,” the first radio voice transmission took place on June 3, 1900,
providing another necessary component for developing the Internet of Things. The
development of computers began in the 1950s.

The Internet, itself is a significant component of the IoT, started as part of DARPA
(Defense Advanced Research Projects Agency) in 1962, and evolved into ARPANET
in 1969. In the 1980s, commercial service providers began supporting public use of
ARPANET, allowing it to evolve into our modern Internet. Global Positioning
Satellites (GPS) became a reality in early 1993, with the Department of Defense
providing a stable, highly functional system of 24 satellites. This was quickly
followed by privately owned, commercial satellites being placed in orbit. Satellites
and landlines provide basic communications for much of the IoT.

One additional and important component in developing a functional IoT was IPV6’s
remarkably intelligent decision to increase address space. Steve Leibson, of the
Computer History Museum, states, “The address space expansion means that we
could assign an IPV6 address to every atom on the surface of the earth, and still have
enough addresses left to do another 100+ piles of earth.” Put another way, we are not
going to run out of internet addresses anytime soon.

2.1.1.1 Realizing the Concept

The Internet of Things, as a concept, wasn’t officially named until 1999. One of the
first examples of an Internet of Things is from the early 1980s and was a Coca-Cola
machine, located at the Carnegie Melon University. Local programmers would
connect by the Internet to the refrigerated appliance, and check to see if there was a
drink available and if it was cold, before making the trip.

By the year 2013, the Internet of Things had evolved into a system using multiple
technologies, ranging from the Internet to wireless communication and from micro-
electromechanical systems (MEMS) to embedded systems. The traditional fields of
automation (including the automation of buildings and homes), wireless sensor
networks, GPS, control systems, and others, all support the IoT.

Simply stated, the Internet of Things consists of any device with an on/off switch
connected to the Internet. This includes almost anything you can think of, ranging
from cellphones to building maintenance to the jet engine of an airplane. Medical
devices, such as a heart monitor implant or a biochip transponder in a farm animal,
can transfer data over a network and are members of the IoT. If it has an off/on the

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switch, then it can theoretically be part of the system. The IoT consists of a gigantic
network of internet-connected “things” and devices. Ring, a doorbell that links to a
smartphone, provides an excellent example of a recent addition to the Internet of
Things. Ring signals when the doorbell is pressed and lets the user see who it is and
to speak with them.

Kevin Ashton, the Executive Director of Auto-ID Labs at MIT, was the first to
describe the Internet of Things while making a presentation for Procter & Gamble.
During his 1999 speech, Mr. Ashton stated:

“Today computers, and, therefore, the Internet, is almost wholly dependent on human
beings for information. Nearly all of the roughly 50 petabytes (a petabyte is 1,024
terabytes) of data available on the Internet were first captured and created by human
beings by typing, pressing a record button, taking a digital picture, or scanning a bar
code. The problem is, people have limited time, attention, and accuracy. All of which
means they are not very good at capturing data about things in the real world. If we
had computers that knew everything there was to know about things, using data they
gathered without any help from us, we would be able to track and count everything
and greatly reduce waste, loss, and cost. We would know when things needed
replacing, repairing or recalling and whether they were fresh or past their best.”

Kevin Ashton believed Radio Frequency Identification (RFID) was a prerequisite for
the Internet of Things. He concluded if all devices were “tagged,” computers could
manage, track, and inventory them. To some extent, the tagging of things has been
achieved through technologies such as digital watermarking, barcodes, and QR codes.
Inventory control is one of the more obvious advantages of the Internet of Things.

2.1.1.2 Connecting Devices in New Ways

When thinking of the IoT, consider the idea, “any device capable, can be
interconnected with other devices.” The IoT is ripe for new and creative ideas to add
to the tasks already in use. Imagine an alarm waking you at 6 AM, and then
simultaneously signaling your coffee maker to turn on and start brewing coffee.
Imagine your printer knowing when you are running low on paper, and automatically
ordering more. Imagine the watch on your wrist telling you “where” you have been
the most productive, while at work. The IoT can be used to organize such things as
transportation networks. “Smart cities” can use it to reduce waste and maximize the
efficient use of energy.

In truth, the IoT provides a nearly endless supply of opportunities to interconnect our
devices and equipment. In terms of creativity, this field is wide open, with an infinite
number of ways to “interconnect the devices.” It can be an exciting time for
innovative individuals, in part, because we don’t fully understand the impact of these
interconnections. The IoT offers both opportunities and potential security problems.

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At present, the Internet of Things is best viewed with an open mind, for purposes of
creativity, and a defensive posture for purposes of privacy and security.

2.1.1.3 Customer Privacy

As sensors and video cameras become more commonplace, especially in public

spaces, consumers have less and less knowledge about the information being
collected, and no way to avoid it. Many people are uncomfortable with the idea of
companies collecting information about them, and even more uncomfortable having
that information sold to anyone and everyone. Generally speaking, older people
dislike having information about themselves collected more than younger people, but
according to one survey, about 45% of “all” respondents did not trust companies to
use the data they collected to protect their privacy.

Currently, choices regarding privacy are very black and white, or on/off. The
customer is forced to give up all privacy, (often in an agreement so convoluted people
don’t bother to plow through it) or the customer simply cannot access the service.
This has led to continuing discussions about consumer privacy and how to best
educate consumers regarding privacy and the accessibility of data.

2.1.1.4 Security

While there are steps to take to help ensure security, it should come as no surprise this
issue has become a significant concern with the growth of the IoT. Literally, billions
of devices are being interconnected together, making it possible (eventually) for
someone to hack into your coffee maker, and then access your entire network. The
Internet of Things also makes businesses all around the world more open to security
threats. Additionally, data sharing and privacy become issues when using the Internet
of Things. Consider how concerns will grow when billions of devices are
interconnected. Some businesses will be faced with storing the massive amounts of
information these devices will be producing. They will need to find a method of
securely storing the data, while still being able to access, track, and analyze the huge
amounts of it being generated.

James Lewis, who is a cybersecurity researcher for the Center for Strategic and
International Studies, wrote a report describing how the Internet of Things’
interconnections will allow computer hackers to wreak havoc through interconnected
devices. The threat is so real, even the Federal Trade Commission has gotten
involved, wanting to know how to guarantee privacy, and how security safeguards are
being installed in new Internet-connected devices. For example, new cars can now be
hijacked by way of their Wi-Fi connections. Consider the threat of hackers when
automated driving becomes popular. Security and risk management should not be
taken lightly when creating new ways to use the Internet of Things.

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2.1.2 Impact of IoT

The technology services industry across IT Services, Business Process Management

(BPM), and Engineering, Research & Development (ER&D) will witness increased
opportunities related to IoT solutions.
Impact of IoT on technology services (IT, BPM & ER&D)

IT Services: Focus on the new architecture of IT systems and infrastructure based on

IoT expansion of the existing portfolio of services to include components such as data
collection and analytics. It also customized solutions for specific IoT use-cases

Engineering, Research & Development (ER&D): Availability of realtime data from

devices to get full product transparency. It enhances streamlining of the introduction
of new products or upgrade of existing ones, in response to changing consumer needs
and market scenarios

Business Process Management (BPM): Accelerated solution deployment,

streamlined operations, and continuous process improvements, and higher levels of
flexibility, efficiency, and responsiveness for businesses.

Various technological, economic, and behavioral factors are driving the uptake of IoT
globally:

• Low-cost sensors, declining cost of connectivity as well as reduced cost and

time of processing will play a key role in the rise and adoption of IoT
• Use of big data analytics and cloud computing will enable processing and
analysis of unstructured data to move from insights to foresight
• Consumer interest in IoT technologies is also rising due to increased reliance
on mobile devices

The vast majority of technology enthusiasts are also interested in connecting devices
to each other so that they exchange relevant information. For example, a connected
car could detect that its owner and their family are traveling, and automatically turn
off the home heating system. In the KRC Research, 89% of respondents said they are
interested “in having all their household devices communicate constantly and
seamlessly with one another to form a completely connected home or lifestyle.” There
is a clear need to establish standards and interoperability between different connected
products or services. As such the GSMA Connected Living programme is facilitating
interoperability between solutions from different vendors and service providers,
enabling industry collaboration, encouraging appropriate regulation, and helping
mobile operators to optimise their networks. The programme is also developing key
enablers, such as the GSMA Embedded SIM Specification, which enables the remote
provisioning of secure connectivity.

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2.2 IoT Revolution in Industries

The world is undergoing constant transformations that somehow change the trajectory
and history of humanity. We can illustrate with the first and second industrial
revolutions and the information revolution. The introduction of the Internet of Things
and Services into the manufacturing environment is ushering in a fourth industrial
revolution: Industry 4.0. The industrial revolution has evolved from the 1760s where
steam and coal are the major fuel in mechanical production. In the 1860s, the
electrification, oil in Mass production, and the late 1900s, IT and Automation which
is the third revolution. And now, we are in the 4 th revolution of the industry often refer
to as Industry 4.0, the era of the Internet of Things (IoT). The term Industry 4.0 was
first coined at Hanover Fair in 2011.

Across the world, forward-thinking manufacturers and industrial product companies

have made great strides in connecting their products and appliances to the Industrial
Internet of Things (IIoT). But succeeding in the IIoT era demands much more than
technology connectivity. The advent of the IIoT is a once-in-a-lifetime business
disruption—one that requires new capabilities in managing direct relationships with
customers, supported by transformed operating and business models designed
specifically for an IIoT-enabled world. And it’s a disruption that’s coming faster than
most companies think. Those manufacturers that move to tackle the necessary
transformation today will position themselves as future leaders in their markets.
Those that fail to act now risk being left behind—and will face a real struggle to catch
up.

IoT (Internet of Things) trends are connecting all business levels and promising
transformation. Companies are embracing various technologies and platforms to
implement IoT networks such as LTE-M, NB-IoT, LoRaWAN, Sigfox, Zigbee, etc.
Generally, IoT networks consist of many controlled intelligent devices, typically
deployed to improve the efficiency of the engineering process, enable automation and
reduce the wastage of resources. IoT networks are considered suitable candidates for
all field operations ranging from exploration to production and refining. This is due to
the IoT-enabled qualities, regularly decreased fabrication cost and device size, and
low deployment expense. Statistical figures show rapid growth in the number of IoT
devices and forecast (within a few years) their numbers to increase to the tune of
billions.

IoT applications will help optimize, innovate and transform consumer products as
well as business processes.

Optimization: IoT helps reduce costs by efficient product usage while increasing
efficient use of assets across business processes.
Innovation: IoT applications help create differentiated products/ services and
improved operations, eventually leading to better customer service.

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Transformation: IoT is blurring industry boundaries by enabling disruptive business
models. For example, telematics involves both the automotive and insurance
industries. IoT is expected to add value to business processes and take value creation
for industrial applications to the next level, specifically in the case of Manufacturing.
IoT is perhaps the most crucial element of Industry 4.0, which refers to the digital
transformation of the processes and systems in the manufacturing sector.

Various connected technologies such as high-quality sensors, more reliable and

powerful networks, high-performance computing, robotics, artificial intelligence, and
cognitive technologies, and augmented reality are changing Manufacturing in
profound ways. IoT market growth will be driven primarily by connected units in the
Manufacturing and Automotive industries, with Transportation & Logistics forming
the largest share of industry-specific IoT revenue. Among industries, Manufacturing
and Automotive are expected to drive the highest volumes in IoT adoption.

India is a rapidly growing hub for IoT solutions with a market value expected to
be $9 billion, and an installed unit base of 1.9 billion by 2020
Although India began its IoT journey much later than developed economies, the
installed base of connected units is expected to grow at a rate much faster than theirs.
IoT units in India are expected to see a rapid growth of ~32X to reach 1.9 billion units
by 2020, from its current base of 60 million. As a result, the India IoT market is
expected to grow ~7X to move from $1.3 billion in 2016 to $9 billion by 2020.

Rise of the tech-savvy consumer along with increasing smartphone and mobile
internet penetration is driving consumer IoT applications in the Indian market.
However, consumer IoT adoption is expected to be slower than its industrial
counterpart due to the cost of IoT devices and security as well as privacy concerns of
consumers.

2.2.1 Opportunity of the IIoT

IIoT in Oil, Gas and Mining Application

IoT is rapidly evolving and growing in oil, gas, and mining applications. In the
operational field, detecting and reporting catastrophic failures and/or destructive
events in real-time reduces production downtime. The information delivery from the
end-user to the central processing unit is vital to streamlining production.
Organisations are adopting integration approaches to link multiple
telecommunications and control systems, such as Programmable Logic Controller
(PLC), Supervisory Control and Data Acquisition (SCADA), Fleet Management
System (FMS), Fatigue Detection System (FDS), etc.

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Figure 2: IoT applications in (a) mining (b) oil and gas environment.

Heating, Ventilation and Air Conditioning (HVAC) units for consumers

Illustration: As the CEO of Heating, Ventilation and Air Conditioning
(HVAC) units manufacturing company. You’ve seen and embraced the emergence of
the IIoT, and have invested accordingly in establishing Internet connectivity for the
HVAC systems you sell. As a result, you can monitor and maintain your HVAC
system’s performance remotely in people’s homes, detect imminent leaks or failures,
and alert your customers of possible problems. But your customers’ satisfaction with
your offerings seems to be falling rather than rising. Why? The answer lies in the
changing expectations and demands of today’s connected consumers— but also the
pervasive impacts of the IIoT on your operations and business model. Put simply,
connecting appliances and devices to the Internet is perhaps the easiest part of the
challenge of dealing with the IIoT disruption. Alongside the technology, it’s every bit
as important to address the behavioural, operational, and business model impacts it
brings with it.

On the customer front, there’s a growing trend for consumers—and also business
customers— to want direct links to the companies that manufacture the products and
services they use, cutting out the traditional ‘middlemen’. This profound behavioural
shift is evident across a host of industries, from energy to telecoms, and from
mainstream media to technology. It’s one of the key drivers of manufacturers’
industry-wide move into services—a change that increasingly involves progressing
from product-based to service-based offerings by building platforms, thus
simultaneously expanding revenues and building ‘stickiness’ (see Figure 1).
Meanwhile, on the operational front, the fact is that Internet connectivity—for an
HVAC system or any other piece of equipment, whether a brake pad or a turbine
engine—means much more than just linking it digitally to your business’ systems. It
also represents a way of getting closer to end-users than ever before, creating a degree

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of direct customer engagement and interaction that most manufacturing companies
have never experienced.

Figure 3 Companies moving from product-based offerings to service-based offerings

by building platforms, expanding revenues, and building stickiness (Source: PwC,
2016)

2.3 Use Case: Fleet Management Using IoT

In logistics, the supply chain is made up of various stakeholders including

manufacturers, transport companies, and retailers. Information sharing and
connectivity are essential for all of them. Therefore, IoT has an important role to play
in this industry. Internet of Things in fleet management currently works through 3
main technologies – RFID, GPS, and OBD II’s. RFID helps control and track
products while GPS and OBD II’s make it possible to obtain real-time information on
routes, vehicle maintenance, and driving conditions.

The automotive industry includes the use of smart things to monitor and report
various parameters to monitor surrounding conditions, ranging from tyre pressure to
the proximity of other vehicles. In one example, an IoT mesh network is used to
support communications between vehicles when cellular service becomes
unavailable. IoT assists autonomous vehicles to avoid obstacles by using sensory
devices and enables truck-to-truck communications to maintain a safe distance from
each other. In 2015, Rio Tinto’s Pilbara mines were the first in the world to use fully
automated driverless trucks to move iron ore, and other big producers such as BHP
and Fortescue are following the vision of automated mining. Automated and self-
correcting remote operations will allow to map metrics and deploy machine learning
and artificial intelligencebased models to act on events in real-time.

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2.4 Benefits of IoT in Fleet Management

Easier and Efficient Operations: Although logistics companies have had

connectivity options like mobile phones, GPS sensors, etc, IoT offers many new tools,
like in-vehicle streaming cameras, driver mobile apps, etc. making communication
easier and prompt. Scheduling, load management, driver and vehicle tracking, and
effective routing are some additional benefits offered by the Internet of Things.
Besides these GPS and RFID-based tools, IoT also covers advanced applications such
as weather APIs, traffic reporting, smart parking, maintenance monitoring, driving
behavior monitoring, etc.

Automated Processes: Another major benefit of IoT in fleet management is the

ability to automate various processes. As devices are interconnected and work as part
of an integrated process, companies can set up an automatic flow of daily logistics
processes and trip planning. Internet of Things also allows logistic companies to
move daily operations into the cloud and helps remote tracking of fleets at any time
from any place. Process automation through IoT is not restricted to the scheduled
system. It also helps automate scenarios like broken-down vehicles that send
automatic tickets to tow trucks; driver receives weather warning notifications,
automatic rerouting, etc.

Better Analytics: The Internet of Things can derive collectively data from various
sensors. This enables fleet management companies to get useful insights into driver
behavior, adherence to laws, vehicle speeding and idling, etc. These sensors don’t
just help in tracking data; they also play an important role in improving performance
and diagnostics of problems related to processes and equipment.

Competitive Advantage: Early adopters of the Internet of Things in fleet

management will enjoy a distinctive technological advantage over the competition.
Proper implementation of IoT reduces overall costs by optimum utilization of
resources and improved performance. Collecting, sharing, and acting on real-time
information helps a company make quick decisions and instant improvements. These
benefits will get any logistics industry excited about using of Internet of Things in
fleet management. But the technology is still evolving, and as companies find more
and more use cases, the Internet of Things will become the lifeline of the fleet
management industry.

Therefore, integrating information technology improves the performance of your fleet

business manifolds. It assures improvement in efficiency and compliance with road
security standards. IoT is making the adoption of these changes much easier than ever
for companies. They are equipped to strategize better and increase productivity by
automating routine tasks.

18
 2.5 Use Case: IoT for Financial Services
The emergence of the Internet of Things (IoT) has created quite a buzz in the business
world. The Internet of Things can be best defined as the interconnectivity of computer
devices in everyday objects via the internet. It is estimated that by 2025, there will be
64 billion IoT devices worldwide. This figure is a big leap from the 10 billion devices
in 2018. Further, according to McKinsey, 127 new devices globally are connected to
the internet each second.

2.6 Benefits of IoT for Financial Services

Prompt customer support: Fintech is merging with IoT and AI to challenge banks in
offering immediate support to customers. Smartphones can act as beacons by
notifying account managers in financial institutions when a customer arrives at their
branch. This way, Fintech firms can offer support quickly and save clients time.

Indoor client navigation: By adopting beacons in daily operations, Fintech

companies can assist customers in navigating while on the business premises. Instead
of clients finding their way manually in the bank, they can state their reason for the
visit. Then, they get matched with a suitable expert to resolve their issue. This simple
solution improves efficiency, service delivery, and customer experience.
On-site queue management: Queues are common in most banks and other financial
institutions. However, they can be managed using the Internet of Things. Added to
assisting customers to move around the business premises as well as locate the right
rep to talk to, IoT devices can also perform electronic ticketing. In this case, the
customer inputs their issue into a smart machine. They are then given a ticket with
details about the representative they should see and their number in the queue. The
device then notifies them when it’s their turn.

Improving customer service: According to a Microsoft report, 96% of customers

globally indicate that customer service is an essential factor in their brand choice.
Customer service is also crucial in Fintech. IoT applications in financial services can
also be used to improve customer care and service. Using smart devices that are
context-aware, the financial industry can optimize customer service by sending
personalized messages, welcoming customers as they arrive, etc.

Making wireless payments: The Internet of Things in the financial industry is also
transforming how people make payments. Wearable smart devices are replacing
smartphones and traditional credit cards in making wireless payments and cash
withdrawals. Statista predicts that the number of connected wearable gadgets will get
to over 1.1 billion by 2022 from 526 million in 2016. Thus, more people will be using
these devices for daily activities in the coming years.

Authentication and security: Besides IoT-based bank security systems, IoT

wearables have also come into active usage as a way of improving security in the

19
Fintech industry. A good example is the Nymi smart wristband which uses an
individual’s heartbeat for biometric authentication. This tech was tested and proved to
be secure in making wireless payments.

Increased business efficiency through automation: IoT applications enable

companies to boost efficiency using process automation. IoT use cases in financial
services will help to improve customer service and streamline daily functions. For
example, Citibank adopted beacons that allow customers to use their smartphones to
unlock doors at ATMs during off hours rather than using key cards.

Self-checkout services: IoT Fintech startups can use smart devices to offer wireless
self-checkout services on various domains. Already, Amazon is implementing such a
concept across its self-checkout stores.

2.7 IoT in Dairy Farming

Advances in sensing technology and agricultural software allow farmers to create

individual and demographic profiles for the dairy herd. Each cow is equipped with a
digital bracelet or pedometer which identifies the Holstein, measures how much milk
was produced at each milking, provides data about the cows’ activity by recording the
number of steps per hour, identifies conductivity levels of the milk which are
indicators of the presence of infections or possible ruptured cells in the udder and the
duration period for the udder to be drained. The subsequent data is managed by
software that allows each cow to be monitored for its overall health and levels of
production in ways that previously were impossible. Readings that signal changes in
Holstein’s normal patterns allow the farmer to accurately predict the needs of each
cow. Advances in genetic science and technology have made it possible for dairy
farmers to map the genome of a Holstein's calf as early as one day after its birth. A
sample of hair or blood can be used to isolate components of the calf’s
Deoxyribonucleic Acid (DNA). The process allows the farmer to predict with
certainty how a heifer will mature to adulthood. Previously a waiting period of two
years was necessary before a heifer could be assessed for its milk-producing and
breeding capacity. Applications of DNA testing provide firm indicators regarding the
cow’s future fertility, milk production levels, vulnerability to diseases and indicate the
components of its milk such as percentages of buttermilk fat, protein, and lactose
levels. The advent of the Internet and applications of smart farming technology allows
the herd to be digitally monitored for quality control within the broader context of the
dairy industry.

Automation enables dairy farmers to control and manage larger herds, saving time
and providing information. This latter aspect is a key factor in managing dairy farms
through a -proactive perspective rather than a reactive one, however depending on the
skills of each farmer. Indeed, automation and technology themselves do not solve a
problem but rather suggest where the problem is. Only within this perspective,
20
automation can leads to benefits as improved profitability, animal health, lifestyle,
and milk quality. Usually, on a dairy farm, automation concerns three main areas: (i)
automation of milking-related tasks; (ii) cow monitoring; (iii) feeding automation.
2.7.1 Automatic Milking System (AMS)

Automatic Milking System (AMS) refers to a system that automates all the aspects of
the milking process and cow management usually undertaken in conventional
milking. Automatic milking represents a revolutionary innovation in dairy farming
because the adoption of an AMS is not a simple replacement for a milking parlour but
rather a new way of managing a dairy farm. AMS does not simply change the way the
milking is carried out but also the farmer's schedule, the feeding, and the housing
management. With an AMS, milk information from individual cows is measured
continuously by using sensors.

2.7.2 Cow Monitoring

Automatic systems to monitor physiological or behavioural parameters, related to the

health or the oestrus, of an individual cow and to detect abnormalities of the animals
are commonly used in dairy cow farming. Sensors implemented in such systems can
be attached or non-attached to the cow. The attached sensors can be placed outside the
cow’s body (oncow sensor, e.g. pedometer) or inside (incow sensor, e.g. rumen
bolus). Non-attached sensors are off-cow sensors that can be classified as inline
sensors, taking measurements in a continuous flow of milk from a cow (e.g. milk
electric conductivity) or online sensors when automatically collecting and analysing
milk samples (e.g. somatic cell count sensor). The most widespread attached sensors
used in dairy cow farming are pedometers, activity meters, and 3-D accelerometers
for automatic detection of oestrus. These devices can either be fastened to the cow’s
neck or its foot. They are equipped with an internal battery and an electronic device
sensitive to the movements of the cow. The internal memory of the device increments
a single counter at each step taken by the cow and the final step count is transmitted
with the cow’s identification code to the control system when the animal is identified
by antennas placed in the milking parlour or directly in the barn. The control system
records the number of steps taken by the cow since the previous transmission. The
step count received is compared with the average step counts of the previous days and
all the animals that show an increase in activity level are signaled to the farmer, who
can evaluate if the cow is in heat and then proceed with the artificial insemination.
The advantages of automatic oestrus detection have been amply demonstrated, even if
this technology brings the greatest benefits to farms with large herds (> 100 cows),
where the direct observation of animals is particularly difficult and, sometimes,
inefficient.

2.7.3 Feeding Automation

21
Feeding is the largest single cost on a dairy farm (up to 50% of the total running cost)
and it is the most time-consuming activity after milking. Feeding automation has long
had a place in dairy farming, even if it has been limited to automatic concentrate
distributors or self-feeders for calves. Automatic feeder for concentrates dispense
concentrates to supplement nutritional requirements not supplied by the forages
according to animals’ needs, physiological condition, or productive capacity. Self-
feeders for calves are automatic milk dispensers that administer the feed ratio
supplementing, if necessary, each animal’s diet automatically. The adoption of this
technology has a strong impact on farm management, reducing drastically the time for
preparing and dispensing feed to the calves and enabling their health status on an
individual basis.

2.8 Benefits of IoT in Dairy Farming

i. The data profiles enable the farmer to supervise and monitor the
effectiveness of employees.

ii. Dairy production statics support research and quality control and are
accessible in both provincial and national databases that are both
current and comprehensive.

iii. Workers who operate the milking equipment and oversee the milking
process are responsible for the cleaning and stimulation of the udders as
preparation for milking. Changes to the readings over time identify
potential health risks to the cow such as the presence of udder
infections. Analysis of the data supports staff in addressing health risks
that potentially threaten the cow’s productivity. In some cases, training
needs that support staff performance can be identified and managed
easily so that the health of the cow is not compromised.

iv. Innovations in smart technology greatly support the quality assurance of

milk production and staff effectiveness because decisions are
implemented through the interpretation of data based upon input from
each cow.

2.9 CONCLUSION

The technology services industry across IT Services, Business Process

Management (BPM), and Engineering, Research & Development (ER&D) will
witness increased opportunities related to IoT solutions. IoT applications will
help optimize, innovate and transform consumer products as well as business
processes.

22
2.10 REFERENCES/FURTHER READING

PwC, 2016 The Industrial Internet of Things. industrial-internet-ofthings.pdf

(pwc.com). Please see www. pwc.com/structure for further details

Sabti H. (2018), IoT REVOLUTION IN OIL, GAS AND MINING INDUSTRIES: A

REVIEW. A white paper White-Paper-IoT-
revolution-in-oil-gas-and-mining-industries.pdf (titanict.com.au)

Hoglund A. et al., (2018), “Overview of 3GPP Release 14 Further

Enhanced MTC,” IEEE Communications Standards Magazine, vol. 2, no. 2,
pp. 84-89

Oh S. and Shin J., (2017), “An Efficient Small Data Transmission

Scheme in the 3GPP NB-IoT System,” IEEE Communications
Letters, vol. 21, no. 3, pp. 660-663

Reynders B., Wang Q., Tuset-Peiro P., Vilajosana X, and Pollin S.,
(2018), “Improving Reliability and Scalability of LoRaWANs
Through Lightweight Scheduling,” IEEE Internet of Things Journal, vol. 5, no.
3, pp. 1830-1842

Sandoval R., Garcia-Sanchez A., Garcia-Haro J., and Chen T., (2018), “Optimal
Policy Derivation for Transmission Duty-Cycle Constrained LPWAN,” IEEE
Internet of Things Journal, vol. 5, no. 4, pp. 3114-3125

https://sumatosoft.com/solutions/internet-of-things-softwaredevelopment.

Gao M., Wang P., Wang Y., and Yao L., “Self-Powered ZigBee Wireless Sensor Nodes
for Railway Condition Monitoring,” IEEE Transactions on Intelligent
Transportation Systems, vol. 19, no. 3, pp. 900-909

History of IoT: A Timeline of Development - IoT Tech Trends

Xu L., He W., and Li S., (2014), “Internet of Things in Industries: A

Survey,” IEEE Transactions on Industrial Informatics, vol. 10, no. 4, pp. 2233-
2243

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 UNIT 3 OVERVIEW OF IOT-IN DIGITAL TRANSFORMATION

CONTENTS

3.1 Evolution of IoT

3.2 Transforming Digital World
3.3 Differences Between M2m and IoT
3.4 Use Case: IoT in Autonomous Vehicles
3.4.1 Five Use Cases
3.5 Conclusion
3.6 Summary
3.7 References/Further Reading

3.1 Evolution of IoT

In 1982, a graduate student in Carnegie Mellon University’s computer science

department, David Nichols, wanted to know if the department’s coke vending
machine had cold soda bottles. He was tired of going to the machine only to find there
was no cold bottle available; the vending machine was quite some distance from his
classrooms. So, he wanted to have information beforehand. He was helped in this
endeavor by Mike Kazar and Ivor Durham, two fellow students, and John Zsarnay, a
research engineer at the university. The code they wrote could check if coke was
available in the vending machine, and if yes, whether it was cold or not. Anyone on
the university ARPANET could monitor the status of the coke vending machine.

In 1989 Tim Berners Lee proposed the framework of the worldwide web, which laid
the foundation of the Internet. In 1990 John Romkey developed a toaster that could be
turned on and off over the Internet. It was a toaster wired to the computer as there was
no Wi-Fi then!! This toaster is considered to be the first IoT device – the first “thing”
that began the Internet of Things. Researchers and scientists seem to have a thing for
caffeine – cold or hot. In 1993, the Trojan Room Coffee Pot was built in the computer
laboratory of the University of Cambridge by Quentin Stafford-Fraser and Paul
Jardetzky 1993. An image of the interior of the pot was uploaded to the building
server thrice every minute. Later on, when browsers began displaying images, these
images could be viewed online. The next milestone in the development of IoT came
in 1999 when Kevin Ashton, current Executive Director of the Auto-ID Labs, coined
the term internet of things. It was the title of a presentation he made at Procter and
Gamble (where he was working then) about linking RFID in P&G’s supply chain to
the Internet.

The term IoT began to be used in mainstream publications like The Guardian and
Scientific American by 2003-2004. In the same period, RFID was deployed by the US
Department of Defence and by Walmart in its stores. The United Nations International

24
Telecommunications Union acknowledged the impact of IoT in its report in 2005. It is
predicted that IoT will help create an entirely new dynamic network of networks.
In March 2008, the first IoT conference was held in Zurich. It brought together
researchers and practitioners from both academia and industry to facilitate sharing of
knowledge. In the same year, the US National Intelligence Council included the
internet of things as one of the six disruptive civil technologies. In its 2011 white
paper, Cisco Internet Business Solutions Group (CIBSG) said that the internet of
things can truly be said to be born between 2008 and 2009 when the number of things
connected to the internet exceeded the number of people connected to it. CIBSG
calculated that the things to people ratio grew from approximately 0.8 in 2003 to 1.84
in 2010. Together with the white paper, Cisco released many educational materials on
the topic and started marketing initiatives to attract clients looking to adopt IoT. IBM
and Ericsson joined the race soon after. In 2011 Gartner included IoT in its Hype
Cycle for emerging technologies that were on the rise. In 2013 IDC released a report
that predicted the IoT market to grow at a CAGR of 7.9% and reach USD 8.9 trillion
by 2020.

By comparison, the Internet has been on a steady path of development and

improvement but arguably hasn’t changed much. It essentially does the same thing
that it was designed to do during the ARPANET era. For example, in the early days,
there were several communication protocols, including AppleTalk, Token Ring, and
IP. Today, the Internet is largely standardized on IP. In this context, IoT becomes
immensely important because it is the first real evolution of the Internet—a leap that
will lead to revolutionary applications that have the potential to dramatically improve
the way people live, learn, work, and entertain themselves. Already, IoT has made the
Internet sensory (temperature, pressure, vibration, light, moisture, stress), allowing us
to become more proactive and less reactive. Internet Business Solutions Group
(IBSG). In addition, the Internet is expanding into places that until now have been
unreachable. Patients are ingesting Internet devices into their bodies to help doctors
diagnose and determine the causes of certain diseases. 10 Extremely small sensors
can be placed on plants, animals, and geologic features, and connected to the Internet.
11 At the other end of the spectrum, the Internet is going into space through Cisco’s
Internet Routing in Space (IRIS) program

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Figure 4: Evolution of IoT

3.2 Transforming Digital World

The Internet of Things or IoT is one of the key digital transformation technologies.
It’s not just one technology as many keep saying but a series of technological and
other components that is vast. The sheer number of devices and connections which
are projected to join the Internet of Things is staggering. Yet, it’s not that much about
the devices of course, although they are an indicator and the larger IoT projects get,
including the number of devices, the more mature digital transformation benefits of
IoT become, making it the Internet of Transformation in correlation with other
technologies and the transformational goals per use case.

With the addition of sensing and data transmitting devices to networks of connectivity
and value comes an avalanche of data on top of our big data universe. With the
growth of the Internet of Things, we already have more data in specific industries and
applications (e.g. life sciences) than we can humanly handle. While devices and
connectivity are of course all important, whether it’s in the Industrial Internet of
Things or the Consumer Internet of Things where the device has an additional
dimension, in the end, the Internet of Things is an umbrella term. It covers many
things, and at the same time is part of a bigger ecosystem of technologies and value.
Data, why we capture it using IoT, and how we turn it into knowledge (DIKW),
matters a lot, especially as the Data Age study shows IoT data volumes grow fastest.

26
It’s how we analyze and use this data to enhance what we do across all areas of
society that makes the Internet of Things so powerful and truly the Internet of
Transformation. It’s the way we combine data and intelligence to power innovative
and transformational smart services with data exchange models and business model
innovation. Big data analysis, the cloud and other related technologies to enable this
move from data to knowledge to outcome are all key digital transformation
technologies. While concerns in several areas are tackled and increasingly will,
companies across the globe are investing in the Internet of Things and have already
achieved considerable benefits. Others move slower, while consumer adoption of the
Internet of Things also picks up. Even though connecting devices is not new and that
with the Internet of Things we have entered a new dimension in many areas, we are
still at the beginning of an era of accelerating Internet of Things adoption. And it will
be a key pillar in the digital transformation economy.

Internet of Things 2.0: moving to integration and outcomes on the Internet of

Transformation. All components and layers of an Internet of Things project or
solution are important. Today most people focus on the devices, the connections, and
the volumes. Enter what we could call the Internet of Things 2.0 and where we see all
digital transformation technologies meet each other, depending on the use case,
scope, etc. on the road to an Internet of Transformation. The Internet of Things
is such a vast reality that it has become an umbrella term for many underlying
use cases, technologies, and other aspects. It’s why we started to distinguish
between the Consumer Internet of Things and the Industrial Internet of Things. It’s
also why some prefer terms such as the Internet of Everything, and in an industrial
context, simply the Industrial Internet. Regardless of how we call it, the Internet of
Things 2.0 reality is about an Internet of Transformation that is put in the context of
related technologies, processes, people, benefits, outcomes, and massive real-life
opportunities, rather than just the technology and device aspect. It’s about how we
move to a hyperconnected world with goals in mind and roadmaps to achieve these
goals clearly defined. And in that roadmap will be several digital transformation
technologies. The hyper-connected world: leveraging connected knowledge at scale
for optimization, innovation, and human purpose.

Internet of Things 2.0 in the end leads to an even more hyper-connected world where
eventually the term Internet of Things will disappear or be used like we use the term
Internet today: as a given, a new normal, a bit like electricity. That’s when it will be
the Internet of Transformation although no one will call it like that.

27
Figure 5: Connected knowledge for optimization and innovation at scale Internet of
Things 2.0 moves from devices and data to actionable intelligence and purposeful
action and transformation. The focus will be on the possibilities of hyper-
connectivity, less from the connectedness perspective as such but more about how we
can improve business, life, and society, using the insights gained, thanks to the
hyperconnectedness of which the Internet of Things is a crucial additional
component. IoT is not just transforming technologies, industries, and the various
digital transformation goals, it is also radically transforming and – yes – disrupting
existing channels in IT and IOT with far-reaching consequences in traditional go-to-
market approaches. It is also transforming the nature of work, changing the role or
even the existence of the middleman, the list is endless.

In order to connect the dots and realize the benefits of this hyperconnected world, it’s
important to see the Internet of Things puzzle, the various pieces of that puzzle, why
we want to complete it to start with, and what is needed to put the puzzle in a safe,
valuable and broader perspective. Usually, this requires a high-level understanding, an
understanding of how the Internet of Things fits in the scope of digital transformation
and various related digital transformation technologies, insights regarding the Internet
of Things beyond the “number of connected devices level” and a holistic view of
people, purpose, process, and actionable information.

The Internet of Things is about to change entire industries (look at what’s happening
with Industry 4.0) and already transforms organizations in the true
sense of the word and on all levels, ranging from customer experience to the
transformation of business models and real innovation is becoming the state-of-the-art.

28
Figure 6: Internet of Things maturity and evolutions in the transformation to a hyper-
connected world

3.3 Differences Between M2M and IoT

M2M or Machine to Machine –

M2M concept refers to two or more machines that can communicate with each other
and carry out certain functions without human intervention. It is direct
communication between devices using wired or wireless communication channels.
M2M refers to the interaction of two or more devices/machines that are connected.
These devices capture data and share it with other connected devices, creating an
intelligent network of things or systems. Devices could be sensors, actuators,
embedded systems, or other connected elements. M2M technology could be present
in our homes, offices, shopping malls, and other places. Controlling electrical
appliances like bulbs and fans using RF or Bluetooth from your smartphone is a
simple example of M2M applications at home. Some degree of intelligence can be
observed in the M2M model. Some of the key applications which leverage M2M
technology to provide services are –

 Warehouse Management Systems (WMS)

 Supply Chain Management (SCM)
 Harvesting energy like oil and gas
 Customer billing like smart meters
 Traffic control
 telemedicine

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 Remote monitoring
IoT or Internet of Things –
IoT refers is an ecosystem of connected devices (via the Internet) where the devices
have the ability to collect and transfer data over a network automatically
without human intervention. It is the network of physical devices embedded
with sensors, software, and electronics, enabling these devices to communicate
with each other and exchange data over a computer network. The things in the
IoT refer to hardware devices uniquely identifiable through a network platform
within the Internet infrastructure. Some of the applications and services of IoT
Technology are –
 Smart Home
 Connected cars
 Agriculture and Retail
 Smart cities
 Healthcare
 Poultry and Farming
However, there is a lot of confusion between the IoT and M2M, as both refer to
communicating and sharing data. M2M is about machines, smartphones, and
appliances, whereas the IoT helps objects to interact with internal and/or
external environments which in turn control the decision making. IoT is about
sensors, cyber-based physical systems, the Internet, and so on.

IoT vs M2M: The Difference

M2M solutions contain a linear communication channel between various machines
that enables them to form a work cycle. It’s more of a cause and effect relation where
one action triggers the other machinery into activity. Conversely, in the case of IoT,
multiple devices communicate with each other through sensors and digital
connectivity.

While M2M (machine to machine) is commonly associated with isolated solutions

like a solution of Wi-Fi thermostats, a vehicle location system, or home automation,
IoT (Internet of Things) works by stretching its boundaries and integrating multiple
disparate systems into outputs beneficial for Business goals.

Another key differentiator is that M2M’s key focus is on direct point-topoint

connectivity across mobile networks or fixed-line while IoT communication involves
IP networks and will usually employ cloud or middleware platforms.

When we consider the scalability in M2M vs IoT, clearly IOT wins the race since it
works on Cloud-based architecture and as we know Cloud can expand substantially.

Also, IoT makes use of Open APIs for communication across distinct systems while
M2M mostly has limited or no open APIs. Some of the differences between M2M and
the IoT are listed in the table below:

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Table 1: Difference between M2M and IoT

PARAMETERS M2M IoT

Abbreviation Machine to Machine Internet of Things

for
Philosophy M2M is a Concept IoT is an ecosystem of
where two or more connected devices (via the
machines can Internet) where the devices
communicate with each can collect and transfer
other and carry out data over a network
certain functions automatically without
without human human intervention. IoT
intervention. Some helps objects to interact
degree of intelligence with the internal and/or
can be observed in external environment

PARAMETERS M2M IoT

M2M model. which in turn controls the
decision-making.

Connection Type Point to Point Through IP Network using

various Communication
types
Communication Old proprietary Internet protocols
protocols protocols and used commonly
communication
techniques

Value Chain Linear Multi-sided

Focus Area For monitoring and To address the everyday
control of 1 or few needs of humans.
infrastructure/assets.

Sharing of Data collected is not Data is shared with other

collected data shared with other
applications (like weather
applications
forecasts, social media,
etc.) to improve end-user

31
 experience
Device Devices usually don’t Devices usually rely on an
dependency rely on an Internet Internet connection
connection

Device in scope Limited devices A large number of devices

in scope in scope
Scalability Less scalable than IOT More scalable due to
cloud-based architecture

Example Remote monitoring, Smart Cities, smart

fleet control agriculture, etc.
Business Type B2B B2B and B2C

Technology Vertical Vertical and Horizontal

Integration
Open APIs Not supported Supported

Related terms Sensors, Data and End users, devices,

Information wearables, Cloud and Big
PARAMETERS M2M IoT

Data

3.4 Use Cases: IoT in Autonomous Vehicles

Finding out where a vehicle is, taking numerous phone calls to provide location
updates to customers, or figuring out which driver is closest to an urgent job is
consuming a lot of valuable time that can be spent on processing new orders,
invoicing, improving logistics, and delivering better service to your client base.

An IoT-enabled fleet management solution helps businesses gain competitive

advantages by automating processes in a cloud-based platform and providing real-
time visibility into everything that goes on in the field. Connecting to your fleet
vehicles through installed telematics devices, you get their current GPS location and
activity status on one web map, together with other reports and analytics that help
improve your dispatch, route planning, and business logistics. This real-time visibility
is what helps you gain flexibility in your resource allocation, better planning, and
quick adaptability to changes in the situation.

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With real-time GPS location, businesses can provide customers with the exact times
of arrival or instantly update the route for a customer emergency. Using fleet tracking
software also helps reduce wait times at destinations and monitor driver behaviour on
the road to ensure safety and compliance, as well as minimize the risk of crashes and
liability. IoT telematics can collect data on vehicle diagnostics, such as speed, idling
time, harsh acceleration or braking, fuel consumption, vehicle faults, tire pressure,
and more.

In case of a crash, the hardware, connected to the vehicle’s engine module, will send
an alert to the head office indicating a collision, so you can dispatch help to your
driver without delay. You can also incorporate a better maintenance and vehicle health
program for your fleet with better scheduling and routine checkups that will help
avoid downtime and breakdown costs on the roadside.
This way, using IoT-enabled fleet management solutions can boost performance
through better asset visibility and vehicle utilization, reduced wait times at
destinations, and proactive maintenance for cost savings. For autonomous vehicle
technology to properly function, it must work in conjunction with other areas. The
five most relevant are listed below.

3.4.1 Five Use Cases

5G
An autonomous vehicle is expected to generate 2 Petabytes (2 million GB) of data
every year. It would take the best Wi-Fi available months to be able to transfer that
amount of information. The nearly real-time speeds of 5G are 10 times faster than 4G.
With its infrastructure and dense network, 5G makes the future of autonomous
vehicles possible.

Latency
Decreased latency, another characteristic of 5G, can also benefit autonomous vehicles.
4G currently has a latency of 50 milliseconds, which can be seen as a large delay
when it comes to passenger safety.

Smart Cities and the Internet of Things (IoT)

For an autonomous vehicle to make smart decisions, it requires information about its
environment. Smart cities, which are IoT-ready, allow for that. A city that can report
on traffic, signals, etc., can help a self-driving car move smarter and more easily
navigate its way around town.

Data Management
Analyzing the amount of data a self-driving car produces takes time. With the
potential of nearly 10 million cars hitting the road, edge computing can help
streamline this analysis by examining it closer to the source.

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V2X
Vehicle-to-everything (V2X) allows the information from autonomous vehicle sensors
and other sources to travel through high-bandwidth, high-reliability, and low-latency
channels. It creates an ecosystem that enables cars to communicate both with each
other and with infrastructures including parking lots and traffic lights.

Not only can this improve vehicle safety, but it also gives drivers or passengers
information about road conditions ahead, so that they can appropriately respond.
When combined with Artificial Intelligence (AI), a self-driving car will be able to
make that decision itself.

Roadblocks
A study from NAMIC found that 42% of surveyed consumers said that no matter how
long the technology was available, they would refuse to ride in fully automated
vehicles. Similarly, 46% of respondents were skeptical about using fully automated
vehicles for ride-sharing services.
To gain public trust, the right infrastructure needs to be in place.
Data management challenges, safety concerns, and high manufacturing costs are
roadblocks that can prevent widespread autonomous vehicle adoption. However, as
large manufacturers and automotive organizations continue to enhance and improve
the technology, the potential for an autonomous future continues to grow.

3.5 CONCLUSION

IoT technologies offer immense value and support the enhancement of a business
model in operational fields. Research has shown that mining and gas companies,
Diary Farm, Vehicle Automation, and Fleet Managements that have made IoT
investments are reporting positive results. IoT technologies are used to enable
automation, streamline engineering processes, reduce downtime and provide
transparency at every layer of the operation. IoT data enables solution architects to
upgrade designs and prevent historical irregularities. In addition to the design and
implantation challenges of IoT networks, the overwhelming IoT market increases the
difficulty of making a strategic business decision.

3.6 SUMMARY

In this unit, we have considered the evolution of IoT, the Digital World
Transformation with respect to industry 4.0 and we have been able to discuss the
difference between M2M and IoT. Also, use cases of Autonomous Vehicles were
explained.

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 3.7 REFERENCES/FURTHER READING

Overview of IoT-in Digital Transformation - Bing

Alavi A., Jiao P., Buttlar W., and Lajnef N., (2018), “Internet of Thingsenabled smart
cities: State-of-the-art and future trends,” Measurement, vol. 129, pp. 589-606
Paraszczak J., (2014), “Maximization of productivity of autonomous equipment in
underground mines,”, Mining Engineering, vol. 66, no. 6, pp. 24- 34,40-41

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Oraibi I., Otero C. E., and Olasupo T. O., (2017), “Empirical path loss model for
vehicle-to-vehicle IoT device communication in fleet management,”
Mediterranean Ad Hoc Networking Workshop,
pp. 1-4
Leonardi S. (2014), Internet of Things (IoT) and Dairy Farm Automation Università
Degli Studi Di Milano Graduate School of Veterinary Sciences for Animal
Health and Food Safety

Microsoft Word - IoT_IBSG_0411FINAL.doc (cisco.com)

Evolution of Internet of Things (IoT): Past, present, and future

(techaheadcorp.com)

Penna M., Shivashankar, Arjun B., Goutham K., Madhaw L., and Sanjay K., (2017),
“Smart fleet monitoring system using Internet of Things (IoT),” IEEE
International Conference on Recent Trends in Electronics, Information &
Communication
Technology, pp. 1232-1236

White-Paper-IoT-revolution-in-oil-gas-and-mining-industries.pdf
(titanict.com.au)

Deloitte Touche Tohmatsu India LLP. Member of Deloitte Touche Tohmatsu Limited,
2017.

Vate-U-Lan, P., Quigley, & Masouras, P. (2016). Smart dairy farming through the
Internet of Things (IoT). Asian International Journal of Social Sciences,
17(3), 23 – 36. Retrieved from
http://aijss.org/index.php/aijss20170302/

Yeong Y.W., IoT: The 4th Industrial Revolution. Analytics Innovation Forum 2017.
Filler slides (sas.com)

IEEE Innovation at work (2021) Use Cases for Autonomous Vehicle Technology

https://innovationatwork.ieee.org/use-cases-for-autonomous-vehicletechnology/

Pareteum (2021), How Can IoT and M2M Connectivity Improve Your Business?
https://www.pareteum.com/IoT-use-cases/ i-scoop (2021), Digital
transformation technologies: the Internet of Transformation https://www.i-
scoop.eu/digital-transformation/digital-transformationtechnologies-IoT/

Krasniqi X., and Hajrizi E. (2016) Use of IoT Technology to Drive the Automotive
Industry from Connected to Full. IFAC-

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Okano M. T., (2017), IoT and Industry 4.0: The Industrial New Revolution.
International Conference on Management and
Information Systems September 25-26

Foote K. D., (2016), A Brief History of the Internet of Things. A Brief History of the
Internet of Things - DATAVERSITY

What are the Differences Between M2M and the IoT (2019)
https://www.electronicsforu.com/technology-trends/learnelectronics/
difference-between-m2m-and-IoT?

Ipwithease (2021), IoT vs M2M – Difference between M2M and IoT Explained

https://ipwithease.com/internet-of-things-vs-machine-to-machine-IoTvs-m2m/

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