The Internet, known as the “Internet of People”, became a thundering success ever-since its rapid growth path through the 1990s.Though life was enjoyable enough even before the advent of Internet, but after becoming used to the web it did come tour mind once in a while, as to how drab the pre internet age was. But then Internet changed almost everything: In-formation exchange speed, Live information Share, distributing content. These quick to take place changes severely affected many business- as-usual industries (i.e. YouTube replacing TV) and moved on to create newer platforms for communicating (i.e. Skype, Twitter) which transformed into information chain utilization for business transactional efficiency (integrated end-to-end logistical systems), thereby making the Internet as a dynamic tool for live interactive information communication.
The Internet therefore established itself without doubt as the most sought for information gateway globally for communication available to whomsoever, wherever and whenever.
1616 The Internet of ‘People’ to ‘Things’ now trending to Internet of ‘Everything’
The Internet of Things is the networked connection of physical objects. The Internet of Things refers to products (i.e., things other than smart phones, tablets and computers) that are web-connected and often work with an app. They collect data about how you use them, learn your habits and give you feedback to improve your lifestyle (or your racquet swing). This includes everything from smart thermostats and garage doors to toothbrushes, tennis racquets and even your bed.
The net’s next phase taking ‘things’ in its fold has started to provide bigger opportunities, and transforming in a major way our lives, both at work & leisure.
First, we started experiencing the outcomes of a physical/digital Internet in terms of products. Nest came up with a thermostat that could connect to wi-fi and surprised us by learning peoples’ usage patterns of any ‘thing’ it was mounted on. The Nest Thermostat learned user’s schedule, accordingly programmed itself and could be controlled from user’s phone. This was the beginning of ‘things’ coming out of their dumbness. For people leaving their house at one temperature and forgetting to change it, smarter thermostats like Nest Thermostat help lowering heating and cooling bills up to 20%. Many other gadgets too enter the market for other activities as well.
SmartThings and DaisyWorks make sensors that can be attached to household things and send information to the network, improving your ability to manage your home and your schedule. Again, one’s smartphones can download apps that can then manage these objects or ‘things’ that are spread all round a household.
The SmartThings app and Hub instantly connect to different sensors, locks, light switches, outlets, thermostats, and other compatible devices in any home. These devices then communicate with you and each other thereby offering you a host of services to enhance quality of life in terms of home security, peace of mind, and many other nagging day-to-day chores.
The Internet of Everything is the networked connection of these very physical objects (& many newer ones) along with people, data, and process. Therefore, this term IoE (as coined by Cisco) seems more apt than IoT, for denoting in the larger context, a seamless interoperability for the management of city systems, power grid, road-rail-air-water traffic, security, water/ sewage & waste systems etc; especially keeping the citizen/user in the loop of interaction as also a more sophisticated ‘intelligent central brain’ that gives holistic corrective instructions to systems that manage your life at home or anywhere.
Thus, by comparison the IoT refers simply to the networked connection of physical objects (but not the ‘people & process’ components of IoE, rendering IoT as a single technology transition while IoE comprises of multitude of technology transitions (including IoT); IoT can be understood as a subset of the set, which is IoE.
Building the Internet of Things or Internet of Everything does not require a lot of extra work on the infrastructure of the internet over the Internet of People as the current IPv6 scheme itself has handling capability. This is a big plus when comparing with laying down fresh physical infrastructure!
Monetization is a welcome driving force, considering that The technology industry has been racing to instrument and connect a plethora of things and processes in the physical and digital worlds. Amazon, Cisco, Ericsson, GE, IBM, and Qualcomm, all believe that the Internet of Everything (or IoE) is about to totally revolutionize the world, much more than anyone would have thought the Internet could ever do.
The ultimate promise of the IoE is a system where machines talk to other machines to get complex tasks done on be-half of us humans. But this new movement is still to evolve from isolated operation to a total integration. That is the way one can cover ‘everything’ and not just a ‘list of few things’.
Thus the aim is to fully enter the instrumented world, where-in intelligence is widely distributed across the physical landscape, and enveloping it completely by turning everything into, in effect, a machine; And then making all machines talk to each other to manage each other efficiently and most cost effectively. The things that areand will be connected aren’t just traditional devices, such as computers,and phones, but mostly citizen affecting usages like electricity, parking spaces, railroad tracks, street lights, and even garbage cans, to components of jet engines. Being citizen centric it would give maximum user satisfaction in service and cost terms.
Today, only a tiny fraction of the products’ spectrum is ‘truly connected’ in IoE sense and therefore in real sense can be treated as largely ‘unconnected’ though may be physically connected in isolation. IoE actually calls for total(or near total) connectivity: people-to-people (P2P), Ma-chine-to-people (M2P) besides Machine-to-machine (M2M) ; [See Figures A & B]
Internet of Everything has emerged as the intelligent connection of people, processes, data, and things; and is now becoming a reality for businesses, governments, and academic institutions worldwide. [See Figures A & B]
The way that cities lead in their rating, increasingly depends on ICT ‘in-place’ to provide efficiency and innovation, in basically all areas of a city, from health care to transport to utilities.”
But becoming a digital business requires rethinking core business processes and implementing an agile information technology (IT) and operations technology (OT) foundation that embraces new security, cloud, mobile, social, and analytics technologies. These underpinnings set the stage for driving business innovation. Not a big deal if one looks at the rich dividends that this path could generate!
Today, half the world’s population has access to the Internet; by 2020, two-thirds will be connected. Likewise, some 13.5 billion devices are connected to the Internet today; by 2020, we expect that number to climb to 50 billion. Will it not be the most foolish lapse and unpardonable blunder, if this proliferation of internet is not be used to human advantage?
1515 The Value Creation (With Caveat): Epic Forecasts
Estimates project the value that IoE can rake-in to be of epic proportions. The next decade for the Internet of Every-
thing application into real world systems indicates a potential value creation of $19 Trillion.
The global private sector in this estimate pegs a 21 percent potential aggregate increase in corporate profits translating to $14.4 trillion, while the global public sector by using the Internet of Everything as the vehicle for the digitization of cities and countries is expected to yield nearly $4.6 trillion of total value from improved efficiency and cost cuts. To intelligently connect is vital and so is the speed of timely completion because the $14.4 trillion of value in a decade would come from IoE, only if we are able to connect the targeted unconnected.
1414 Five Key Areas of Value at Stake for the Private Sector
– $2.5 trillion: Increased employee productivity will reduce person-hours and free your knowledge workers to do more effective work.
– $2.7 trillion: Process inefficiencies will be eliminated through supply-chain improvements.
– $3.7 trillion: Improved customer experiences will build stronger relationships and bring more customers.
– $3 trillion: Tech innovations will in-crease return on R&D, reduce time to market, and create revenue from new business models.
1313 Five Key Areas of Value at Stake for the Public Sector
– Connected militarized defense ($1.5 trillion): IoE generates a fourfold force-multiplier effect through im-proved situational awareness and connected command centers, vehicles, and supplies.
– Cost reductions ($740 billion): IoE improves labor efficiency and capital-expense utilization, while also reducing operational costs.
– Citizen experience ($412 billion): IoE shortens search” times, improves the environment, and produces better health outcomes.
– Increased revenue ($125 billion): IoE improves the ability to match supply with demand while also enhancing monitoring and compliance.
1212 What is the Urgency, Anyway?
Today, 54 per cent of the world’s population lives in urban areas, a proportion that is expected to increase to 66 per cent by 2050. Projections show that urbanization combined with the overall growth of the world’s population could add another 2.5 billion people to urban populations by 2050, with close to 90 percent of the in-crease concentrated in Asia and Africa, according to United Nations (See Figure 1)
Whereas several decades ago most of the world’s largest urban agglomerations were found in the more developed regions, today’s large cities are concentrated in the global South, and the fastest-growing agglomerations are medium sized cities and cities with 500,000 to 1 million inhabitants located in Asia and Africa.
The 2014 revision of the World Urbanization Prospects by UN DESA’s Population Division notes that the largest urban growth will take place in India, China and Nigeria.
These three countries will account for 37 per cent of the projected growth of the world’s urban population between 2014 and 2050. By 2050, India is projected to add 404 million urban dwellers, China 292 million and Nigeria 212 million (See Figure 1).
The urban population of the world has grown rapidly from 746 million in 1950 to 3.9 billion in 2014. Asia, despite its lower level of urbanization, is home to 53 per cent of the world’s urban population, followed by Europe with 14 per cent and Latin America and the Caribbean with 13 percent.
The world’s urban population is expected to surpass six billion by 2045. Much of the expected urban growth will take place in countries of the developing regions, particularly in Africa.
As a result, these countries will face a variety of challenges in meeting the needs of their growing urban populations, including for housing, infrastructure, transportation, energy and employment, as well as for basic services such as education and health care.
“Managing urban areas has become one of the most important development challenges of the 21st century. Our success or failure in building sustainable cities will be a major factor in the success of the post2015 UN development agenda,” said John Wilmoth, Director of UN DESA’s Population Division. The Trends projected towards 2050 are:
– Megacities with more than 10 million people are increasing in number
– Small cities are numerous and many are growing rapidly
– Rural populations expected to decrease as urban populations continue to grow
1111 Sustainable Urbanization is the Key to Successful Development
A successful urban planning agenda will require that attention be given to urban settlements of all sizes. If well managed, cities offer important opportunities for economic development and for expanding access to basic services, including health care and education, for large numbers of people. Providing public transportation, as well as housing, electricity, water and sanitation for a densely settled urban population is typically cheaper and less environmentally damaging than providing a similar level of services to a dispersed rural population.
1010 IoE Technology to Rescue
“Is the ‘Smart World’ actually Stupid? No, it’s us who think so, are Stupid!”It’s our ‘Adhyasa’ or Misunderstanding’ or lack of clarity!
“This is because most of us are confusing ‘connected’ with ‘smart’, Just be-cause a house, its devices and its systems are connected to each other and to the Internet, enabling the home owner to monitor and maybe even control what is happening in the home from a smart phone, does not make the house smart.” So is it for individual ‘things’ in the city.
The smart home is one that has “some intelligence of its ‘own’ and that is able to gather information from its network of sensors, review and analyze that data, and then take some kind of action – without a human person in the loop to make the decisions for it.
Such smart homes (and thereby cities) that have “intelligent systems installed within them that actually self regulate with corrective actions on any malfunction, make our lives smarter, easier and safer are very few in number or to say are not the norm. Therefore, people tend to get confused between ‘connected’ and ‘smart’, as they find ‘connected’ in abundance.
The smart technologies have enabled ‘things’ but integrated systems are yet to become the norm. The most common example is that of cars which as norm for quite some years include automatic door locking as you start to drive, anti-lock brakes, and a smart computer connected for within cabin management & also communicating externally including with your repair workshop, all of this making your car smart with it’s intelligence. For the home and city to be globally ‘smart as a norm’, we need to be patient; but its just round the corner!
99 Real World cities: What IoE has been Doing?
To collect and use information, we need to deploy sensors and to make the best interpretation of it, we surely need a centralized, electronic “brain”, which finds solution to the problems and reverts back ‘actionable instructions’ to the ‘thing’ or ‘people’ that need solutions. This thought process implemented on physical infrastructure by means of instrumentation run by software programs makes all things downstream ‘Smart’! Homes, Utilities, mobility, traffic, shopping, healthcare and in fact wrapping up, the City inside-out to be Smart!
Smart Cities save Energy, in every manner, including saving energy indoors (in ‘Smart homes’).’Buildings’ are outfitted with intelligent sensors and networked management systems collect and analyze energy-use data. Such technologies hold the potential to reduce energy consumption & cut costs by $100 billion globally over the next decade (See Figure 2).
Just imagine, one-third of the world’s streetlights use technology of 1960s. Cities that update aging systems with networked motion-detection lights save administrative and management time as well as electricity and costs as much as7080 percent, according to an independent, global trial of LED technology.
Providers generally bundle services – lighting, parking, security etc to fully exploit their core tech-potential maximizing return by ensuring large spectrum of activities under their umbrella and thereby large customer base (See Figure 3: Netsense – Integrated application for cities)
By using such energy-saving technologies, cities can drastically lower their municipal expenditures on electricity. Connected light poles can serve as wireless networking access points, enabling citizens and city managers to take advantage of pervasive connectivity. And networked sensors incorporated into utility lines could help reduce costs for both consumers and providers, with meters being “read” remotely, and much more accurately.
Cities such as Nice, France are already implementing smart lighting, which monitors lamp intensity and traffic sensors to reduce car theft, assaults, and even home burglary. These lighting initiatives are also expected to reduce the city’s energy bill by more than $8 million.
As traffic growth chokes with jams, cities land up spewing more than 67 percent of greenhouse gases into the atmosphere (74 percent by 2030).
In the United States alone, traffic congestion costs $121 billion a year in wasted time and fuel, drivers groping for parking spaces leads to 30 percent of urban congestion besides pollution. The city of San Carlos, California counters by embedding networked sensors into parking spaces that relay to drivers real-time information about and directions to available spots.
The result: reduced congestion, pollution, and fuel consumption on one hand, while generating substantial revenue for cities from parking fees that are dynamically adjusted for peak times.
Cities by integrating sensors can collect and share real-time data about public transportation systems to improve traffic flow and better monitor the use of buses and trains, giving them the ability to adjust route times and frequency of stops based on changing needs. This will cut costs and improve on efficiencies. Mobile apps that aggregate the information, meanwhile, can help citizens track delays or check pick-up times for a more seamless commute.
Barcelona, Spain (See Figure 5) with a population of about 1.6 million people, is Spain’s second largest city and declared 2015’s smartest city in the world. It has changed the typical experience of waiting for a bus by deploying smart bus stops, where citizens can use touch-screen monitors to view up-to-date bus schedules, maps, locations for borrowing city-owned bikes, and local businesses and entertainment. For an Improved the quality of life of its citizens, it has deployed free Wi-Fi and created a rich assortment of citizen and government apps. An example is of ‘Car parking’ being addressed by having network’s sensors located on the ground directly in the middle of the car park space. The sensors detect whether the space is occupied or not and send information via internet to a central station (see Figure 4).
The server processes this information and sends it to indication panels located in the street which display the information in real time. Advanced communication techniques are used to send guidance data to the network. Also there are network of private parking spaces that use sensor to transmit their status occupied or available and on a smartphone app that allows customers to book them when they are free.
By embracing the Internet of Everything in a big way, Barcelona, is already reaping the rewards with expected $3.6 billion in value over the next decade. It is important to note here that close to $1 billion of this will come from productivity improvements. In essence, IoE improves the city’s water-management system (generating $58 million in savings annually), install smart street lighting ($47 million), and embed sensors in parking spaces to let drivers know where open spaces exist ($67 million).
Barcelona is perhaps the most advanced European example, but many others are following its trail. A must mention here is, Copenhagen (See Figure 6) which is well-known for its smartness especially sustainable mobility solutions and is all set in its ambition of becoming the first carbon neutral capital by 2025.
88 The Songdo Phenomenon
On the other end is, Songdo, South Korea (see Figure 7&8), the world’s first truly green field city developed from the ground up with sustainability metrics economic, social, and environmental in mind. Through the city’s network, citizens can access a host of urban services health-care, government, transportation, utilities, safety and security, healthcare, and education from the convenience of their living rooms or within a 12-minute walk. Real-time traffic information helps them plan their commutes. Remote healthcare services and information reduce expenses and travel time. Remotely automated building security improves safety and lowers costs.
Through a unique public private partnership, the city is evolving as a living lab for urban management and service delivery. It can serve as a model for other communities built from the ground up. The aim is not only to develop urban services that enhance citizens’ daily lives and reduce the city’s resource footprint, but also to deliver economic value to the city by attracting new citizens and companies. These initiatives have the potential to create true economic value over the next 15 years, including as many as 300,000 jobs and $26.4 billion in gross regional domestic product (GRDP) growth. What’s more, Booz Allen & Company has estimated that the city will be able to reduce carbon dioxide emissions by up to 4.5 million tons.
Songdo is due for final completion in 2015. It is sustainable, green and full of technological innovations
The Big Question is: How can the world (and we in India) make ‘a Barcelona’ and ‘a Songdo’ the norm rather than the exception? The Answer is: First Introspect and then adapt! Do not ape. Wherever possible Leapfrog to get best technology, save time, resource and avoid failure due to inexperience & knowledge deficit!
India needs to really focus on these aspects if we intend to ‘be smart’ in a sustainable way. The urban growth forecast on to 2050 is clear testimony to the need for urbanization shift along with all infrastructure development in this context. (see figure10 on India’s pace of urbanization along with Figure 11 on UN 2014 India populations’ profile).
The Indian Government has cleared in current parliament session it’s ambitious ‘smart city’ plan of 100 cities plus 500 city combo, though not much has taken off except various MOUs with countries and providers. The matter has been in air right since assumption of office and the status is this: Intent & MOUs. But, providers are just waiting for the green signal and of course clear direction in terms of policy, agreements and facilitations required.
The GMI Cisco surveys (see Figure 12) on IoE demark regions based on potential, inclination and existing Assets of all categories. These along with data of other providers, state and UN works should, ‘grosso modo’ enable the country to chalk out calibrated roadmap for embarking on the journey to a ‘smart ‘Indian’ city journey. The specific data chosen here is indicative of what the PPP ( Providers- Planners-Politicians) need to look in, to translate the ‘Answer to the Big Question’ into Realistic Actionable Delivery on Ground. I have considered 3Ps and excused the 4th ‘P’ optionally (People) which at times is eased out on reasons of expediency. However, the subject being 4th P centric it would be advantageous to include it even if done for perception & transparency viewpoint.
The inferences drawn based on the data and a look into overall nature and extent of the prevalent Indian scene vis-à-vis development clearly points to need for realistic view of a need based development plan that thrashes out unambiguously clearly defined deliverables qualitatively and quantitatively. This could put to rest any and all doubts on present needs fulfilment and in built future margins’ availability in plan, design, implementation and O&M. And this by far, will avoid unpleasant surprises for the stakeholders.
66 The Internet of Everything – A Lifetime Opportunity Not to be Foregone
Private Industries will be Most to Gain: Though the IoE Value Index study, may point the high-tech, telecom, and financial services industries ranked highest in potential IoE value, the same needs to be examined on customized basis for quantum. Similarly Retail, energy, and manufacturing were near the bottom and have the highest potential and this in general may be valid for India though relative juggling between heads may be there. The whole lot can be treated as qualifying for upward mobility in terms of future growth.
55 Retailers Connect Better by Getting Customer-Specific
– Enhance customer service and merchandising strategies by tracking in-store behavior.
– Customize offerings, marketing, and advertising by analyzing customer behavior data.
– Help shoppers explore products and increase sales with in-aisle interactive displays.
44 Smarter Factories Get higher profits
– Machine-to-machine (M2M) connections essential for “smart factories” and the largest source of IoE value for manufacturers.
– M2P connections is a future focus, with analytics and “big data” will be huge opportunity.
Energy Companies Get Proactive
IoE Value Index, reveals that all five of best IoE enablers were M2M technologies for energy companies.
– Utility companies can use M2M connections to implement smart grid technologies that manage energy transmission with real-time data and predictive analytics; and to match energy supply with demand more accurately using smart meters installed in customer premises.
– Also a critical IoE value source for the energy industry is person-to-person (P2P) connections enabled by collaboration technologies, such as the ability to locate experts quickly and to access expertise where and when it is needed via video.
33 IoE Global Acceptance
– In the private sector, organizations in developed countries such as Germany, Japan, France,and the United States are currently realizing the most benefit from IoE.
– Cisco’s IoE Value Index shows that in emerging markets such as India, China, and Brazil are confident in their ability to capture IoE value.
– Emerging markets that take advantage of IoE are quickly gaining in the marketplace.
22 The Success Mantra: Albeit a Persistent One!
1. Innovation, Decisive action, Clear programs and seamless application en-suring implementation with outcomes monitoring – control.
2. Absoluteness of collaborative partnerships between the public and private sectors entities;
3. Foolproof ICT master plans (information communications technology) and
4. Workshops defining & developing holistic / specific projects; and
5. Zero Tolerance in respect to ‘Respecting Deadlines’
11 A Parting Note
We need to work on sharing & merging multiple resources and providers will have to share technology. We should be able to say: You have your secret sauce? Great, I have mine too. Monetization by providers is natural but we need to ensure right technology at right price.
We need to remember that our aspiration is for ‘The truly connected environment’, which needs to include enterprise, livelihoods, and profits thereof to flourish.
I sign out for now by saying there is a lot more than what’s in here!