IoT is the Internet of Things. We are in the midst of a major transformation on how are things will be done in the future. Devices, sensors and chips will be able to communicate via the Internet. This will result in a radical change of how business is conducted, how information is used and how our lives will be changed. Goldman Sacs states that “The Internet of Things (IoT) is emerging as the third wave in the development of the internet.” According to the Gartner Group the IoT will grow to 26 billion units in 2020 and will generate $1.9 trillion in economic value.
So what is the Internet of Things (IoT)? The capabilities of sensors and chips to capture store and send information over the internet to a cloud infrastructure is happening. By collecting and storing the information, data can be analyzed which results in better decision making in real time. The cloud will play a major role as information is collected from the sensors and analyzed. Predictive analytics will be implemented to trouble shoot and resolve problems. As in any technology solution, it must solve a particular business problem or provide business value. Our opinion is that high value items will be enabled first.
The areas in which IoT will make a significant impact are manufacturing, healthcare, insurance, energy, consumers, logistics and transportation.
Manufacturing plants that are connected to the internet will become more productive and more cost efficient compared to their non-connected counter parts. Waste will be reduced and energy costs reduced. Automation and robotics that are integrated with sensors will improve quality.
Healthcare will see an explosion of connected devices and apps in the areas of labs, hospitals and doctors offices. In the home, preventative care will change to remote monitoring through wearables. Drugs will be able to be developed quicker and cheaper by better monitoring of trials and labs. Patient monitoring will give Doctors and PA’s reliable accurate information as opposed to relying on the patient’s memory.
Insurance companies will evaluate risk by capturing information. Auto insurance will based upon on individuals driving patterns (excessive speeding, dangerous driving, etc.). Life insurance risk will be quantified by measuring the life style and health characteristics of an individual through a wearable app. Hard physical assets buildings and vehicles that are insured will be monitored and premiums calculated based on the care, condition and expected useful remaining life.
Energy whether it is gas, oil, electric, solar or wind will be a major user of connected sensors to monitor and manage production and consumption. Data analytics will be used to analyze failure rates and look for patterns of potential failures in field operations and with end consumers.
Consumers will see major changes in their daily lives in their electronic cottage. Appliances will monitor themselves and notify the manufacturer if problems arise. Food in the refrigerator will be monitored for expiration dates and when near expiration an order could be placed for additional food. Your refrigerator will sense that the water filter needs replaced and will notify the manufacturer that a replacement is required. This will also apply to heating, air conditioning and security systems.
Logistics is an area where major changes are going to occur. In the warehouse, sensors will keep track of the temperature and light and adjust accordingly. Forklifts will have sensors to avoid collisions. Products will have RFID or sensors to decrease picking and put away time.
Transportation will see massive changes with sensors monitoring the vehicle and driver. Drivers will become passengers to enjoy the ride while vehicles take control on the least traveled route. Vehicle components will be monitored for potential failures and spare parts will be ready when the vehicle arrives at its next destination.
Check back with Logistics Trends Inc. as we are writing additional articles and providing our insights on the IoT (Internet of Things). If your firm needs assistance with developing an IoT strategy, Logistics Trends can assist your firm.