Features > IoT
Entrue World 2015, Keynote Speech by DaeHoon Kim, CEO of LG CNS

– Internet of Smart Things: Accelerating the Smart Business –

DaeHoon Kim, the CEO of LG CNS shared a new take on the current status and the future of IoT (Internet of Things), which is considered the most vital keyword in the recent digital infrastructure innovation, on the 21st of April at Entrue World 2015, Korea’s biggest IT conference.

Through this speech, he introduced the strategies for changing clients’ businesses by incorporating LG CNS IoT solutions and services where diverse smart technologies are combined.


LG CNS CEO DaeHoon Kim giving a keynote speech at Entrue World 2015

Attention on IoT: Google’s Taking over Nest

Though interest in IoT has gradually risen since its concept was first introduced in 1999, Google’s taking over of Nest in January of 2014 definitely brought explosive attention to it. Why did Google spend $3.2 billion to buy Nest?

Nest is an American thermostat provider which was founded in 2010. Their thermostat learns the right temperature when no one’s in and analyzes the data on humidity and the weather in order to automatically control the temperature. It also has a motion sensor to see if anyone’s inside by detecting movements and controls the temperature by itself. These functions are known to conserve 5% of energy expenditure, which saves about $5 per month at each home.

In other words, Nest’s thermostat is a type of device which helps you easily regulate temperature and save energy through its automatic control functions. When this device met an electric power service, its role became more significant. Nest entered into a partnership with an electric power company called Austin in 2013 and launched a power demand control service. This service switched the unit for the temperature control from households to districts, so that they can regulate the peak power usage during rush hour, save a much larger amount of energy, and in turn, bring new value to the industry.

When Google took over Nest, they applied this service in six different states in America, and ended up saving 15.7TW, which equals the electricity produced by a couple of nuclear power plants. They are now partnered with 17 different electric companies and have entered the Canadian and English market as well.

The Definition of Service-Oriented IoT

The story about Nest shows us that IoT’s center is moving from devices to services, and it can create new value through services. What’s the difference between device oriented IoT and service-oriented IoT, then?

Unlike device-oriented IoT which implements values through device functions and focuses on what to connect, service-oriented IoT can be connected and combined to devices based on the purpose of the service in order to implement values and create useful services.

Differences between device-oriented IoT and service oriented IoT


Device-oriented IoT has been in the spotlight so far and it will continue to grow in the future as well. What companies have to focus on, however, is service oriented IoT. As we see from the prospect reports in the media, service-oriented IoT, which is growing rapidly, currently has great potential, so it’s important for corporations to get ready for the shift in business environments toward IoT.

Materializing Service-Oriented IoT

There are a number of cases in which companies gained success by understanding the concept of ‘service-oriented IoT’

1. Manufacture: change in profit structure through tertiarization of products (Rolls-Royce)
2. Health care: change in market paradigm through wearable devices (from post facto care to prevention)
3. Distribution: innovation by combining online and offline markets (Amazon)
4. Smart homes: advancement in service by combining security and smart home service (ADT)
5. Smart factories: optimization of overseas factory management through smart technologies (overseas production facilities)

Service-oriented IoT you see in the cases above can be implemented as seen in the following table.

Successful change toward service-oriented IoT 


Service-Oriented IoT of LG CNS

With the accumulated experience from over 20 years in IT technology and other diverse industries, LG CNS has been establishing and developing the concept of IoT for five years. Since its adoption of the concept of ‘smart technology’ in 2010, it defined the notion of ‘smart technology 2.0’ which focuses on convergence among various industries in 2013, as well as establishing the concept of IoT in 2014 in order to apply the concept to their clients’ businesses.

According to LG CNS, IoT based on services “continuously collects meaningful information from sensors on various devices, stably transmits and receives information through wired/wireless network connected directly/indirectly, and provides intelligent and automated services through cloud computing and big data analysis.”

Under this notion of IoT, LG CNS is planning to create service oriented IoT in diverse fields of business as followed:

1. Transportation: smart transportation
2. Energy: smart grids
3. Health care: remote medical treatment
4. Smart homes: home IoT
5. Manufacture: integrated factory controls
6. Distribution: video based analysis
7. Finance: payment solutions
8. Shipping: vessel navigation optimization

Some of the areas listed above have been remarkably successful.


Service oriented IoT of LG CNS

  • LG CNS merging service IoT with industry
    – 2004: Service-oriented IoT – Smart transportation service in Seoul
    1. Device: 10,000 buses, 72,000 taxis, and 9 subway lines (about 42 million transactions per day)
    2. Network: RF, WiFi, etc.
    3. Service: Seoul public transportation operation service (transportation operation center)
    Since 2007: Transportation service expanding overseas (’07 Wellington in New Zealand, ’11 Bogota in Columbia, ’14 Athens in Greece)
  • LG CNS IoT in diverse industries
    – District based power demand control service: Mubarak Al-Kabeer in Kuwait
    – AMI (Advanced Metering Infrastructure) for smart grid: Tauron AMI in Poland
    – Prediction based vessel navigation optimization
    – Disaster prevention management for remote factories
    – Mobile payment solution(Fin tech): KakaoPay
    – Remote medical treatment solution: Trial medical service in Vietnam
    – IoT service in progress: Set-top box based total home IoT, visitor pattern analysis at exhibit halls (smart vision sensor), livestock breeding environment optimization, smart grid on Ulleung Island, etc.

Suggestions for the Success of IoT

There are a few conditions to be met for an IoT system to be implemented successfully. First, there needs to be the right devices ready and a network to connect devices and services. The system should also be able to realize intelligent services such as big data processing solutions. Last but most importantly, reliability and stability must be secured from end-to-end.

LG CNS aims to realize IoT with end-to-end reliability and stability. In order to achieve this goal, the company is equipped with the following technologyand skill for the implementation, as well as the ‘LG CNS IoT platform’ which supports all of these.

1. IoT sensing device development and securement
: (Developed by LG CNS)vision sensor, sensing device, smart metering, smart home gateway, IoT robot, etc.
: (Smart sensor selection and materialization) fiber sensor, laser based distance sensor, etc.
2. Implementation of various communication protocols/data standard: Bluetooth, WiFi, LTE, SFC, ZigBee, Z-wave, AllJoyn, etc.
3. Cloud/big data based advanced analytics
4. Device to cloud IoT security

By combining the company developed  IoT platforms and the accumulated experiences with know how in business for over twenty years, LG CNS is now fully prepared to open the new era of IoT for various industries and businesses looking to improve themselves through service-oriented IoT.

Written by LG CNS New Media Team

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