– FROM I.T. TO I.O.T.: how the best companies transition to the internet of things –
The theme of LG CNS Entrue World 2015, Korea’s largest innovative conference, was “The Internet of Things…Accelerating Smart Business” and the overseas keynote speaker was the founder of the concept of IoT (Internet of Things) also known as the father of IoT, Kevin Ashton. Ashton‘s keynote speech was titled ‘From I.T. to I.o.T. – How companies transition to the Internet of Things’. Ashton received attention for his lecture on how IT companies are responding and transitioning to the IoT era and how IoT will reshape the industry.
With the advent of the IoT era, how will businesses implement IoT?
And how can they turn IoT into an advantage?
Let’s take a look at what Kevin Ashiton said about IoT and some of examples of companies that are making the conversion to IoT.
IoT is like the human nervous system. This similarity is because an important function of the nervous system is to detect the world around it. Humans do not only detect the environment around the brain, but humans also use information collected and moved to the brain by the nervous system. A consistent and real-time picture of the surroundings is then made from this information. So to speak, the nervous system is a network and IoT is made by creating a network of sensors. IoT turns the Internet into one giant nervous system. This system can be seen as one nervous system for mankind.
You can find a paradigm similar to that of a brain from the 20th century technology. Humans entered information into computers using punch cards and keyboards. However, this method of data input was a fundamental limit because humans needed to make it work in person.
Global digital camera sales have seen a sharp increase over the past 10 years. The digital camera market, which did not exist in 2001, has grown over the past 10 years and approximately 1B units are sold each year. Of course a person still must be present to take the pictures, but once the pictures are posted on SNS like Facebook, the story becomes different. With Facebook facial recognition and other functions, even locations and expressions can be used for better detection of a situation in a picture. Universal technology is being combined with Ubiquitous automatic recognition technology to create a more complete example of IoT.
The number of RFID shipped each year is greater than the number of smartphones shipped. There are 1billion more RFIDs shipped each year than smartphones. This shows that IoT sensors have already shipped in the billions.
Only business with the successful transition from IT to IoT, calling it the 21st century’s paradigm, can survive. There are many tech firms that experienced decreases in enterprise value and this is because that they didn’t care about IoT or failed to keep pace with the transition to IoT.
On the other hand, there are successful examples.
In 2013, Belkin published WeMo, the home automation platform that connects electronic switches to the smartphone network. WeMo solution not only lets you control power supply on lightings and TV but its application to the slow cooker also enables the realization of smart home.
Also Zebra, the barcode label printing business in the US, attempted their IoT enterprise such as real-time motion tracking and locating system since 1998. If a player wears motion tracking sensor, it will gather data of moving speed, moving range and scores etc. by tracking player movements. This technology was adopted by Germany which was one of elements to win Brazil in the last World Cup.
Silicon Labs also developed a new product within their own experiences in IoT market based on sensors. The company making Mobile phone chips and TV receiver recognized the mature market in its corresponding market. Therefore they started to develop components for wearable devices and created a technology that detects both radio frequency and digital frequency at the same time.
The final example is Tesla Motors, started as an electric vehicle maker. This car company wasn’t satisfied with only making electric cars so it explored to find another way. The S model is an electronic car but it has a feature that it can be run by software. With the S model, Tesla entered to the network- based-sensor market. As you have seen in the film Batman, it can park and pick up automatically like the Batmobile.
Enterprise value of technology companies changes like a shark’s fin. Some of globally well-known technology companies have proved it. This happens when the technology enterprise experiences technology transition. What can be done in order for technology companies to avoid a drop of the enterprise value? It can be avoided by accepting the change converted from IT to IoT and by struggling for survival.
The examples shared on here are just direct ones of IoT. Human being is a great species considering communication, transaction, trade, innovation and creation that all came from when humankind was expanded. The challenge being conducted from our generation in the 21stcentury is to make the nervous system for the earth. And it is already getting over the earth.
[This article has been written and cited as part of Kevin Ashton’s Keynote Speech, the Keynote Speaker of Entrue World 2015.]