In the last posting, we had a look at the new trend in the age of IoT (Internet of Things) war, where companies formed strategic alliances. Today we will learn about the prospects of IoT and preconditions for its future development.
The markets for mart devices, effective and reliable networks, and analytics service have been around for quite some time. Some IoT technologies like sensing and short range wireless network standards that are commonly used for smartphones have actually reached a level of maturity.
Yet the IoT service market combining various technological components is still in its early stages. To construct a service that creates consumer value for sustained growth, converging different IoT technological components and coming up with new value based on deep insight into the industry is important.
Although the IoT market revolves around products and services for individuals at the moment, the demand for companies will take up a much bigger part in the future.
What has to be done to revitalize the IoT service market is to come up with a policy and platform that connect companies with solutions and individuals with creativity.
The future service model is expected to adopt a charging system in which the sensor measures exactly how much of a service a client has used when calculating the service rate, as we see from Rolls Royce Power by the Hour (Reference: http://www.lgcnsblog.com/features/what-can-things-do-when-connected-to-the-internet-talk-service-oriented-iot2/)
There are a few things to consider for improving the IoT market in the future.
Firstly, security issues on data collected through IoT should be addressed and resolved.
Security is not something that just emerged with IoT. Instead, it has been discussed for a long time in the existing IT environments such as cloud computing. The reason security is even more emphasized in IoT service is because the amount of personal information increases exponentially as more ‘things’ are connected, and this can pose tremendous threats.
It is especially difficult to guarantee security and privacy in the service-oriented IoT environment, as there are multiple agents such as sensor device providers, telecommunication/network providers, service developers, API developers, platform providers and data holders..
However, despite the risk, the security of IoT is still mongering around its beginning level. According to an HP survey conducted in 2014, 70% of IoT devices are transmitted from unencrypted data.
If security issues expand into a nationwide scale such as a massive black out caused by grid hacking, the entire IT industry including IoT can become chained down.
The following efforts should be made for a more secure IoT environment.
Security related technologies must be used for all components of IoT. This includes network, protocol, device, sensor, service platform, and data.
IoT security should be implemented in every stage from encryption to end-to-end network security architecture managing the cross-certification and networks. Anticipatory security actions using machine learning such as real-time packet monitoring, logging and analytics as well as abnormality detection and behavioral analytics should also be considered, as the explosive increase in data can make a perfect security configuration simply impossible.
For businesses, personal data protection should be considered even in the beginning stage of an IoT business project. Regulations for data protection such as distinguishing personal data from anonymous data as well as a data collection cycle are necessary. The service providers must also have the means to keep their data secured.
As mentioned in the third posting of the series(http://www.lgcnsblog.com/features/what-we-need-to-implement-iot-talk-service-oriented-iot-3/), big data analytics is the field with the highest added value compared to other fields like smart devices, network, and cloud computing.
The first thing to keep in mind should always be ‘what economic effect comes by analyzing certain data’ when one considers adopting IoT with a sensor and network.
Let’s take a look at LG CNS’s smart poultry farm.
LG CNS started the smart farm service by first thinking about what analysis would result in positive economic effects.
The weight of a chicken differs throughout the day. Predicting the exact weight of a chicken at the time of shipment, thus, is extremely important to keep profitability, since even a 100g difference may change the price dramatically. In this case, the result of the analysis is directly connected to profits.
It’s also crucial to combine the external data shared by others to come up with better results compared to just using the data collected by their own smart devices.
At the smart poultry farm, the data they gathered with sensors can bring about much better results when combined with data from weather forecasts, since a chicken’s weight is easily affected by heat waves and severe cold.
If the cost for system construction is higher than the economic effect of the system, adopting IoT may not be the right call. Those who wonder if the system construction cost is higher than its economic cost can try prototyping in a small scale, and then expand it when the effect comes out to be higher.
There are lots of open hardware platforms these days such as Arduino and Raspberry, as well as available IoT development environments and service platforms, so you can prototype it in a small scale much more easily.
LG CNS IoT Reference Architecture(http://www.lgcnsblog.com/features/iot-is-all-about-platforms-now-lg-cnss-iot-platform/) will be helpful for those who are wondering about security threats in small scale prototyping or looking to adopt IoT for their business.
We have learned about the trend called service-oriented IoT with five postings in this series. I hope it helped you understand and predict the future of IoT.
Written by Hyunjung Lee, senior researcher at LG CNS Technology & Strategy Team
Link for previous article series
Answers to IoT, the Latest Trend in IT -Talk Service-Oriented IoT (1)-
What Can ‘Things’ do When Connected to ‘The Internet’?
-Talk Service-Oriented IoT(2)-
What We Need to Implement IoT -Talk Service-Oriented IoT (3)-
Survival Strategies in the IoT War -Talk Service-Oriented IoT (4)-