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The Advantages of the Internet of Things (IoT)

The Advantages of the Internet of Things (IoT)

As objects of the Internet of Things are embedded with sensors and gain the ability to communicate, new information networks pledge to develop new business standards, enhance business operations, and decrease costs and threats.

In most organizations, information moves in familiar directions. Specific information is recorded in databases and analyzed in reports, and then the management chain is enhanced. Information also comes from outside – collected from public sources, the Internet, or purchased from information providers.

But the predictable paths of information are changing: the physical world itself is becoming an information system. In the Internet of Things, sensors and stimuli embedded in physical objects – from roads to pacemakers – are connected via wired and wireless networks, often using the same Internet Protocol (IP). ) That connects to the Internet.

For example, Billboards in Japan look at passers-by to assess how they fit consumer profiles. And instantly change the messages displayed based on those ratings.

In some of these cases, there are traces of foresight and early warnings for companies. Business models based on today’s largely fixed information architectures face challenges with the advent of new value creation methods.

Dynamic pricing may increase the chances of buying when the customer’s shopping preferences are felt instantly in a particular location. Knowing how often or how often a product is used can create additional options – for example, usage costs instead of full sales. Manufacturing processes with many sensors can be more precisely controlled, and efficiency increased.

And risks and costs are reduced when operating environments are constantly monitored for hazards. Or when objects can take remedial action to prevent damage. Companies that use these capabilities will benefit from competitors that do not.

Widespread acceptance of the Internet of Things takes time, but thanks to advances in basic technologies, the timeline is evolving. Advances in wireless networking technology and the standardization of most communication protocols make it possible to collect data from these sensors almost anywhere, anytime.

Image: Six different applications emerge in two general categories: information and analysis and automation and control.

Information and analysis

Because new networks link data from products, corporate assets, or the operating environment, they produce better information and analysis that can significantly increase decision-making power. Some organizations have begun deploying these programs in target areas, while more radical and difficult uses are still in the conceptual or experimental stages.

  • Behavior tracking
  • Increase situational awareness
  • Sensor-based decision analysis

Behavior tracking

Once products are embedded with sensors, companies can track the movements of these products and even monitor their interaction. Business models can be fine-tuned to use this behavioral data.

For example, some insurance companies offer the installation of location sensors in customers’ cars. This allows companies to set policy prices based on how the car is driven and where it travels. Pricing can be adjusted based on the actual hazards of the vehicle.  And not on indicators such as the driver’s age, gender, or place of residence.

Or, when sensors and network connections are built into a rental car, consider the possibility: it can be rented out to registered members of a car service for short periods, rental centers become redundant, and any car can be used for revenue—optimized higher.

Zipcar has been a pioneer in this model, and car rental companies with more experience have begun to follow it.

Sensors record buyers’ profile data (stored on their membership cards) in retail. Can you help purchase by providing additional information or discounts at the point of sale? Market leaders like Tesco are at the forefront of these applications.

In the business-to-business market, one of the well-known applications of the Internet of Things is sensors to track RFID (radio-frequency identification) tags placed on moving products from It is through the supply chain.

Therefore enhancing inventory control while decreasing working capital and logistics expenses. The scope of potential uses for tracking is growing. In the aviation industry, sensor technologies are

creating new business models. Jet engine manufacturers retain ownership of their products. Hitler is paying for the amount of thrust used by the airlines.

Increase situational awareness

Large-scale sensor data, located on infrastructure (such as roads and buildings) or to report environmental conditions (including soil moisture, ocean currents, or weather), can give decision-makers more awareness of real-time events, especially when sensors Used with advanced display or visualization technologies.

For example, security personnel can use sensor networks that use video, audio, and vibration detectors to identify unauthorized persons entering restricted areas. Some advanced security systems now use elements of these technologies. Still, wider applications are running as sensors become smaller and more powerful and more skills in analyzing and displaying recorded information.

Airline and truck logistics managers are now taking advantage of some basic features to stay updated on weather conditions, traffic patterns, and vehicle locations. In this way, these managers increase their ability to perform fixed routing settings that reduce congestion costs and increase effective network capacity.

In another program, law enforcement officers can receive instant data from sound sensors that can accurately detect the location of a shooting.

Sensor-based decision analysis

The IoT can also support longer and more complex human planning and decision-making. Technology requirements – huge storage and computing resources associated with advanced software systems that produce various graphical displays for data analysis – are increasing accordingly.

For example, in the oil and gas industry, the next stage of exploration and development could rely on extensive sensor networks. They are embedded in the Earth’s crust to produce more accurate readings of potential location, structure, and dimensions than current data-driven methods. The result: reduced development costs and improved oil flow.

In the case of retail, some companies are looking at ways to collect. And process data from thousands of shoppers while traveling to stores. The sensors’ readings and videos record the length of time they remain on separate monitors. And record what they ultimately purchase. Simulations based on this data help increase revenue by optimizing retail plans.

Automation and control

Establishing data as a basis for automation and control means transforming data. And analysis collected through the Internet of Things into instructions. That provides feedback over the network to stimuli that modify processes.

Closing the data loop to automated applications can increase productivity because of systems. That is automatically set up in complex situations makes many human interventions unnecessary.

Early adopters are using relatively basic programs that offer relatively immediate returns. With the further development of these technologies, advanced automation systems will be adopted by organizations.

  • Process optimization
  • Optimal use of resources
  • Complex independent systems

Process optimization

The Internet of Things opens up new frontiers for improving processes. Some industries, such as chemicals, install masses of sensors to monitor much more granulation. These sensors feed data to computers, which in Turn analyze it. And then send signals to stimuli that regulate processes – for example, by changing material mixtures, temperature or pressure.

Sensors and actuators can also be used to change the position of a physical object as it moves down the assembly line. Ensuring that it reaches the machine tool in the optimal position. (Small deviations in the working position of the process can cause the tool to get stuck or even damage the machine.) Provides human intervention.

Optimal use of resources

Network sensors and automated feedback mechanisms can change patterns in the use of scarce resources, including energy and water, often by enabling more dynamic pricing. For example, companies such as Enel in Italy and Pacific Gas and Electric (PG&E) in the United States use smart meters that provide visual displays to residential and industrial customers that show their energy consumption and immediate costs.

(The traditional fixed-price residential bill per kilowatt-hour hides the fact. That the cost of generating energy varies considerably throughout the day.) .

Based on usage time and better information, residential consumers can ventilate Turn off the air conditioner or delay the operation of the dishwasher during peak hours. Commercial customers can switch energy and production processes from costly periods of peak energy demand to off-peak hours at low prices.

Complex independent systems

The most sought-after uses of the Internet of Things include the rapid detection of unpredictable situations and instantaneous responses driven by automated systems. This machine decision mimics human reactions, although it has greatly increased performance levels. The automotive industry, for example, is developing systems that can detect impending collisions and take evasive actions.

Some basic applications, such as automatic braking systems, are available in advanced vehicles. The potential savings in reducing accidents due to wider deployment could exceed $ 100 billion a year.

Some companies and research organizations are testing a kind of autopilot for network vehicles. That is driven by patterns that are consistent with highway speeds.