Media attention to the internet of things (IoT) -- along with its high-concept companions, the industrial internet of things (IIoT) and the artificial intelligence internet of things (AIIoT) -- has been extensive and well-deserved. Consumer spending on IoT-style devices, such as fitness trackers, thermostats, doorbells and security systems, contributes to the 30.73 billion (paywall) wirelessly connected devices that Statista projected would be in place by 2020.
In my experience as the president and CEO of a company that offers IoT services, manufacturing companies -- especially those with continuous process operations like chemicals, petroleum, and glass -- have focused on IoT as a key to their aspirations for digitally transforming and automating their plant-floor operations. Once in place, they anticipate IoT will yield improvements in safety and cycle times while reducing carbon footprints, improving decision-making and enabling companies to take advantage of opportunities as they arise. Those are lofty expectations, particularly for a system that has enjoyed limited success: 30% of respondents to a 2019 Microsoft survey (via VentureBeat) said their IoT projects failed in the proof-of-concept stage. But there are already some serious buyers. One 2018 study estimated that the global IoT sensors market will exceed $27 billion by 2021.
Illustrations of what IoT could mean to the transportation, health, utilities and manufacturing industries are little short of sensational. Here is how consulting firm Frost & Sullivan envisioned it transforming retail in their 2018 report, "The Internet of Things: Is Your Business Ready for the Productivity Revolution?"
“Smartphones and wearable tech such as smart watches, combined with always-on connectivity, are delivering IoT capabilities that make shopping a breeze. For instance, if customers download an app to their phones, watches or other wearable devices, they will ‘register’ with the system as soon as they enter a store. Immediately, they can receive notifications about merchandise they’ve expressed interest in, relevant sales and specials, or that an item ordered online is ready for pick-up. If the customer decides to make a purchase, all he has to do is walk it out the door -- the system enables secure payments from a digital wallet, a chip embedded in a rewards card, or a smart watch or other wearable device. It will automatically charge his account -- no authorization needed -- and send a receipt via text or email. Consumers may never have to stand in a checkout line again.”
If that sounds like Walt Disney World’s Magic Wrist Band program, there is a good reason. Like Magic Bands, the imagined retail IoT system accesses information from multiple sources and applies it, in real time, to devices close to the customer, precisely when it’s needed. But apart from the Magic Kingdom, I know of very few facilities of any type that have made comprehensive use of wireless technology and customer data.
There are several important reasons the pace of implementation among IoT systems can be restrained. One is its complexity. IoT is not one thing or one family of things. Instead, it is a vision of an always-connected world that collects and uses vast amounts of information to make decisions. And the technology associated with that vision can be highly fragmented. It ranges from legacy office equipment and communication tools to sensors, meters, cameras, scanners, vehicles, networks and other devices, along with the whole panoply of software applications that makes them work. Determining where to start and how to align those technologies with specific business goals can be a real challenge.
Another reason is that implementing an IoT system involves special skills that are in short supply at most companies. Technical skills are needed to install, maintain and repair many IoT devices, and those same employees’ work patterns are almost certain to change as a result. That can be disruptive and raise workplace concerns that sometimes are expressed as resistance to change. It's essential to reassure employees that they're not obsolete. Reengineering the plant’s workflow and redefining employee responsibilities should become essential parts of your education and training if the new system is to deliver what its proponents have promised.
Beyond that, the surge of information that an IIoT system can generate requires a more powerful and sophisticated approach to data analysis than many businesses are equipped for. And even then, the initial decision-making processes based on that information will likely be imperfect and require time to mature. Everyone could face an extended learning process; success will require patience.
Most of these constraints involve working through issues of human interaction with IoT networks. But I expect to see work focus on a handful of issues involving the technology itself. So, here are my candidates for the top five technical issues that companies will have to consider: the five C’s.
Connectivity: Reliable, low-latency, device-to-device, device-to-edge and device-to-cloud communication will be important. Requirements for wireless systems, such as those for radiofrequency devices, are emerging, and new device and infrastructure designs should consider these standards.
Continuity: Electric power should be reliable and uninterrupted. You should work to extend the battery life of critical devices, whether primary or backup, from days to months or years. Optimizing power consumption could be key to innovation.
Coexistence: Wireless signals in crowded radio bands can interfere with each other. Separation of information streams is important for creating stable communications in crowded wireless environments. Conduct coexistent design and testing for all IoT applications.
Compliance: Emerging industry and government standards from the FCC, European Commission (CE marking) and FDA require thorough testing and evaluation of IoT devices, which takes time. Lengthy compliance test processes can affect a product’s time to market.
Cybersecurity: Some early IoT devices were built with an emphasis on speed rather than security. Today, IoT data and device security are seen as increasingly vulnerable -- a challenge compounded by the number of devices in use. Designers should be proactive in addressing security at all entry points.
Work is currently underway in each of these areas, and I expect more in 2020. Progress made in the five C’s could enable the promise of IoT, with all its features and benefits, to truly become a reality.
