IoT – Internet of Things

A brief explanation
Everybody is talking about the Internet of Things. And it is growing –
market researchers believe that by 2023, our planet will be home
to 26.1 billion networked devices. But what exactly is the “IoT” and why
is there so much hype surrounding it? And how can companies and
people benefit from IoT applications? We will show you everything you
need to know from five different points of view.
Definition
IoT – what is it?

The Internet of Things, usually abbreviated to IoT, is gaining momentum.

So, what exactly does it mean? The Internet of Things Global Standards
Initiative, which is now a study group at the International Telecommunica­
tion Union (ITU), defines the Internet of Things 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”. It sounds complicated, but
what it essentially boils down to is:

Smart ­ Data integration

products
IoT connects “things” and devices, such as
industrial machines, fitness bracelets, traffic
lights, cars, medical devices, servomotors,
railway vehicles, streetlights, heat pumps
and endless others. Indeed, these are also
connected to one another and with computer
applications that give rise to a broad range
of services with the help of the data that is
being transferred back and forth.
and data storage
IoT does not just consist of networked
devices: the data produced must be stored
to enable them to be further processed
within IoT applications. This involves the use
of IoT management platforms and IoT
inte­gration platforms based on cloud
technologies. These establish secure
connections between devices, applications
and users.

Establishing networks

and data transmission
The connection of devices, sensors, actuators
and applications is also referred to as
“M2M communication” (machine-to-machine)
as, unlike with a telephone, it is not humans
that are at the receiving end, but machines
and algorithms. A range of different tech­
nologies can be used for this – wireless pro-
tocols for the local area, such as WiFi,
Bluetooth and Zigbee, as well as mobile com-
munications, LPN and, in the future, 5G.
Data analysis
IoT provides a huge quantity of sensor data,
from simple temperature measurements right
through to the anonymised dynamic data
from mobile phones. Support from algorithms
and analytical tools makes it possible to
create beneficial and value-creating applica-
tions that were simply inconceivable using
the resources previously available.
Limitless
IoT is a global infrastructure – it has
no geographic limitations and does not
belong to an individual organisation.
It is the sum total of all networked things,
the underlying communication channels
and the resulting applications.

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 Distinction
IoT is not the same as M2M

Alongside IoT, there is a whole range of other names for the global
infrastructure of things, services and applications. Cisco talks about
the “Internet of Everything”, Ericsson calls it the “Web of Things”,
GE (General Electric) uses the “Industrial Internet” to focus on industrial
applications and IBM aims to achieve the intelligent networking
of different industries using “Watson IoT”.

IoT and M2M (Machine-to-Machine)
are often used interchangeably; however
they are not the same. Machina Research,
a market research company specialising in
IoT, states the following:
> M2M is based on the connection of a device
via a network with a back-end system.
This serves to fulfil a single, specific task.
For example, measuring the fill level of
an oil tank, reading an electricity meter or
triggering an alarm. An M2M solution
can be provided in full by a particular pro­-
vider and works with data from a single
source.
> In the case of IoT applications, in the major-
ity of cases, data are collected from
a number of sensors, devices, systems,
services and other such assets and fed
into complex applications. These are often
created by third-party providers. Along­-
side networked devices and M2M applica-
tions, data sources include company IT
systems, data feeds from public sources,
crowdsourcing projects and social media
and other IoT applications. It is impossible
for one single company to provide
the entirety of IoT, and IoT projects always
involve several different stakeholders.

Machine-to-Machine

Sensor Transmission Visualisation

IoT

Collecting data Transmitting data Saving and Commercial benefit

analysing data

Additional sources of data

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 Drivers and areas of application
Why IoT and for what purpose?

There are three key driving forces that make > Thirdly, the pressure of competition
IoT possible: is increasingly forcing companies to adopt
new, innovative products and business
> First of all, technological development gave
models – all at breakneck speed. Time-to-
us reliable global mobile networks and,
market is the real clincher. Disruptive
thanks to cloud technology, a huge amount
approaches are turning the traditional
of processing power that is available inde-
economy on its head.
pendently of both time and location. At the
same time, the costs of communication In actual fact, there are always two different
services, processing power, memory and aspects to IoT solutions:
sensors were reduced significantly. > the customer benefit
> the interests of the providers
> 
Secondly, the progress made in the develop-
ment of software with efficient tools
However, both interests are served equally:
and programming language enabled the cre­-
IoT works end-to-end, B2B, B2C or B2B2C.
ation of increasingly complex IoT applica-
Customers benefit from attractive services,
tions. And the projects are running more
new products and improved quality of life.
quickly thanks to the use of more agile
Companies can strengthen their position on
methods. Add to that a new generation
the market or even open up new markets,
of developers, data scientists and other
increase efficiency and position themselves
specialists with innovative abilities.
as an attractive employer with modern job
profiles and a progressive corporate culture.

IoT areas of application

According to Machina Research, in 2013,

there were 3.6 billion networked devices
worldwide. Ten years later, so in 2023, this
Networked homes and workplaces will
number is expected to reach 26.1 billion.
account for the lion’s share with 21 billion
The market research company has defined
connections. This will include a number
five areas of application for IoT applications: of applications with very high volumes, such as
smart metering with intelligent electricity
meters, together with building automation and
security technology. With 1.7 billion connections, networked cars
take second place. This will include both IoT
connections integrated at the production plant and
additional devices installed at a later date to
fulfil a specific purpose, such as measurement
sensors for the UBI insurance model (usage-
based insurance), for which the premium is estab-
In the healthcare sector, Machina Research lished on the basis of the actual usage
predicts that there will be 1.1 billion connec- of the vehicle.
tions for a broad range of applications for
consumer-oriented devices, such as fitness
bracelets, right through to complex clinical
environments.

Industrial applications will use

950 million connections. Here too, we should
expect to see a plethora of IoT applications
Networked cities or “Smart Cities” will account for
across the entire value chain: in production, fleet
750 million connections. The areas of application include
management, logistics and trading.
public transport, street lighting, video surveillance
and traffic management.

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 Significance
Why is IoT so important?

How should companies deal with the Internet of Things and the oppor-
tunities it offers? What are the benefits of IoT applications for companies
and their customers? IoT provides added value at three different levels:

Improved When should companies get involved with

customer experience IoT? The answer is simple: as soon as possible.
Although technology is continuing to develop,
IoT applications make it possible to interact it has reached a high level of maturity and is
with customers in new ways and can contrib- robust enough to be used in day-to-day busi-
ute to creating a closer relationship between ness. And the competition will not be caught
providers and customers. napping: the speed with which disruptive
new products, services and solutions are en­-
More tering the market is extremely high. Now is
the time to get on board – before you are over-
efficient processes
taken by the competition.
IoT solutions can be used to create more
However, that does not mean that you could
efficient in-house and intercompany processes.
or should bring your entire company into
The time required to communicate with
the IoT era at the same time. It is recommended
customers and partners is reducing. It is
that you begin with individual projects that
possible to create cross-industry eco­systems.
provide clear added value, making use of agile
and iterative methods. Over time, a success­-
New ful pilot project can be used to comprehensively
business models transform various departments within the
company – each application will provide you
IoT makes it possible to open up brand new with inspiration for the next.
business scenarios. Companies can offer
services with added value and achieve addi-
tional revenue rather than simply selling
products. There is as an especially high degree
of potential in “Industrial IoT”, as today,
90 percent of machines are not yet networked
– from production lines in factories to de­-
vices that are installed at sites belonging to
end users.

Increasing importance
72
45
72 percent of companies are working on
the assumption that IoT will become important
percent
or very important to them during the next percent
three years. The current figure is 45 percent.

Already highly Relevant within 3 years

relevant

Source: https://www.cio.de/g/iot-studie-2016,116845,2#galleryHeadline

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Application examples
IoT in practice

Switzerland has joined the IoT race. Numerous successful projects

from different industries and from public authorities have demonstrated
its potential. There are three examples that highlight just how diverse
IoT can be and what impact IoT applications can have on business models
and corporate culture.

Catering industry
Traditionally, persons operating restaurants
and bars have to perform regular checks
of their beer containers and manually order
new stock. Thanks to an M2M application,
Feldschlösschen has completely revolutionised
this logistical process: two sensors positioned
within the beer containers ensure optimal
temperature and pressure on the one hand
and monitor the fill level on the other hand.
The restaurateur can see what is happening
within the beer container on the basis of
real-time data provided by the sensors using
the “myBeer” app on their smartphone or
tablet and can therefore take prompt action.
Or they can allow the app to reorder by it­self,
fully automatically. This also allows Feld-
schlösschen to better plan beer deliveries and
serve the catering industry more efficiently.
Public
administration
Anyone wanting to park their car in one
of the two parking areas at Lenzburg Castle
no longer needs to undertake a laborious
search for a parking space; instead, a space
will be conveniently found for them. The
approximately 80 parking spaces are equipped
with long-lasting battery-powered wireless
sensors, which transmit the occupation status
to a central car park management system
in real time. Networking takes place via
Swisscom’s Low Power Network. There is no
need for costly wired networks. The spaces
available in both castle car parks are displayed
on a screen in the car park at the Berufsschule
[vocational school] in Lenzburg, as well as on a
website, and, in the future, it will also be
possible to view them via an app. Further
“Smart City” applications are already being
discussed, such as networked parking me-
ters offering the possibility of paying via
smartphone or the networking of containers
in order to optimise waste collection services.

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 Industry
As a provider of heating systems, Walter Meier A tip from the Swisscom IoT experts
(Klima Schweiz) AG is faced with a problem: IoT is not witchcraft
in many new builds, heat pumps are now being
installed instead of fossil fuel-powered Don’t fear IoT: start with a clearly defined
heating. As a result, the need for lucrative oil project – it is not necessary to catapult
heating services is no longer present. Never- your entire company into the IoT era in
­f igured and continually adjusted in order to one fell swoop. A specific, focused IoT
ensure that it achieves maximum efficiency. project is quick and easy to implement,
However, this can also be performed remotely, will not cost you an arm and a leg and
as modern heat pumps are equipped with will very quickly begin producing added
sensors and a control unit. Walter Meier is now value. However, you must not wait
offering a new “smart-guard” full service for too long: have the courage to get started
heat pumps, which includes remote mainte- today. Find a partner who will compe­
nance. An IoT solution forms the basis for this: tently guide you through the entire project.
the sensor data are forwarded to an analysis This is the key to successfully entering
platform via mobile telecommunications and the IoT era.
an IoT cloud platform, where they are pre-
pared. The technicians at Walter Meier are
able to access up-to-date and historic oper­
ating data via a dashboard, identify problems
before they become severe and optimise
the heat pumps. To that end, Walter Meier has
created its own new job profile (Remote
Maintenance Technician) and is on the verge
of a radical cultural shift, as there are al-
ready plans in place to introduce further IoT-
based services and business models.

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 Act now!
To ensure that an IoT solution brings the greatest possible added value, the data from
the networked devices must be prepared in a meaningful manner and used effectively
within applications and processes. Swisscom has developed the “Triple A” model in
this regard: To begin with, data are collected from networked devices and systems and
forwarded to the cloud (Acquire); following that, the data are analysed and prepared:
the data collected are combined with additional information to create “Smart Data”
(Analyse). During the final step, those data can be used to develop new applications,
boost product innovations or optimise processes (Act).

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