Features > IoT
What Can ‘Things’ do When Connected to ‘The Internet’? -Talk Service-Oriented IoT(2)-

In the first chapter of the ‘Talk Service-Oriented IoT’ series, we have talked about the concept of IoT and its prospects in the market. Today, we will take a look at some different implementations of IoT to see how it’s being used in our daily lives and how it can change the industrial outlook.

Connecting ‘Things’ to ‘The Internet’

As mentioned in the previous post, IoT (Internet of Things) refers to various objects that are being connected to each other over the internet[1]. The various objects that we are talking about here includes not only physical objects such as vehicles, containers, street lamps, and electronics, but also environments like the weather, temperature, humidity, and CO2 level, as well as people and data. Accordingly, it means the objects that were existed separately at offline, now they can possibly be connected to each other through online[2].

Evolution of IoT (Source: Charith Perera et al(2014), context aware computing for the IoT_A Survey, IEEE)

Evolution of IoT (Source: Charith Perera et al(2014), context aware computing for the IoT_A Survey, IEEE)

As these objects are connected to the internet, we can measure and control their status whenever and wherever we want. Moreover, various objects can easily be connected to one another.

IoT in Our Daily Lives

How is IoT being used in our daily lives then?[3]

1) Customized services that suited for context using location information

Recommend Good Restaurant Information Service

Recommend Good Restaurant Information Service

When you use your smartphone to find a good restaurant in a given neighborhood, your mobile map application puts your location and your preference online using its GPS function. Your location is then combined with the data about good restaurants that were already available online, and the map service provider can notify you with restaurants nearby that have received great reviews.

2) Services eliminating space constraints

With space constraint elimination services, you can receive services that were used to be done by having someone visit you in person. U-City, preventive maintenance system, and remote electronics control service are some examples of this.

  • U-City(Ubiquitous City, also known as a smart city)

The integrated CCTV control center established by LG CNS at Eunpyeong U-City in Seoul monitors 1,200 different locations with CCTVs[4] instead of having someone on patrol. If there has been a crime, the system predicts and analyzes the suspect’s expected escape routes and sends the information to the police’s mobile devices via the internet so they can block them and minimize additional damages[5].

  • Preventive maintenance system

Engine failures in aircrafts lead flight delays due to repairs, which result in customer complaints in the end, and may even cause major accidents with casualties. For this reason, Rolls-Royce adopted a remote monitoring service by attaching sensors to their aircraft engines.

It combines real-time data about temperature, air pressure, speed, and vibration with its intelligent service to evaluate the engine’s performance. Rolls-Royce also provides the preventive maintenance service which eliminates potential threats based on its evaluations.

Roll-Royce’s increase in sales and market share since adopting service business (Source: Entrue World 2015 presentation)

Roll-Royce’s increase in sales and market share since adopting service business (Source: Entrue World 2015 presentation)

Since all of the relative data is recorded through IoT, Rolls-Royce could lead the aircraft engine market by switching from a ‘sales business’, selling engines and supporting A/S, to a ‘service business’, charging the rates on service used.

  • Remote electronics control service

LG Electronics HomeChat (Source: LG Electronics)

LG electronics provides a remote monitoring and controlling service called HomeChat. Electronics and mobile devices are combined by SNS platforms to remotely monitor and control the status of home appliances. Thanks to this service, we no longer have to worry about if the stove is still on or the valve is closed, and we can have the air-conditioner or boiler running before getting home.

3) Optimized management systems with data-based automation

As big data from diverse devices is being analyzed, we can now commercially utilize the results of their automatic analysis.

Let’s take a look at railroad management for instance. In managing railroads, it’s important to make sure all trains run smoothly under an organized system. This is important in reducing extra operational costs because it takes more energy and time to decelerate abruptly to keep a safe distance from other trains and to regain its speed again. A subway train stopping to wait for the train ahead of it to re-move is one example of this operational issue.


GERail Network Optimization Solution(Source: http://www.gereports.kr/ge-trip-optimizer-for-smart-train-solution)

To tackle this issue, GE began monitoring all trains’ operational status and locations to automatically determine the right speed for the schedule, with their Rail Network Optimization Solution and Movement Planner System. This change improved their train speeds by 15 to 20% compared to the average[6].

The services which connect thermostats and boilers to automatically control the interior temperature according to the outside temperature and weather[7], and the energy consumption optimization system which supervises an area’s brightness based on human movement by connecting CCTVs and street lamps are also examples of this.

4) Creating new values by connecting objects

Many of you must have heard of a service called Uber, which quickly became a major issue in the taxi industry. Their service is similar to the usual call taxis in its basic idea, as the passenger requests a taxi from the company.

Uber, however, created new values by connecting objects and is starting to destroy the existing market rapidly. One of the biggest differences in their service is ‘transparency’ in the request process. As all Uber taxis are connected online, a passenger can see whether there’s an available taxi and when it will arrive whenever and wherever they want. The system assigns the service request automatically to the nearest available car right away, and the driver cannot refuse to provide service[8] once it has been selected.

Once the taxi’s arranged, Uber provides the personal information of the driver and reviews from previous passengers. Passengers can reject to have the driver and ask for a new one based on those reviews. Drivers also evaluate their passengers, and those with negative reviews can be restricted from the Uber service.

Because the location of taxis is shown online in real-time, passengers are able to notify their friends about where they are and their estimated arrival time. The payment is made automatically from a pre-registered credit card, and passengers can also split the bill using their Uber app.


Uber Service (Source:wikimedia.org)

As we see here, by connecting passengers (location and reviews), drivers (information, reviews), and vehicles (locations and route), Uber is providing new values to passengers such as zero service refusal from drivers, an evaluation platform, shared taxi information, and the easy payment system, which changes the global taxi service industry.

Why Is IoT So Important?

Why do people say IoT is important enough to change the world?

1) IoT replacing jobs

Thanks to remote monitoring and control services, dangerous and repetitive work can be replaced by IoT services. Automation in data processing also made it possible for IoT to take over data analysis. Gartner, an IT research company, expects the demand for human resources to be reduced50% by 2018. They also predict that digital business related jobs will grow 500% due to developments in IoT and its job creation effect.

2) IoT switching the industrial structure

Uber became the destroyer of the transportation service sector by connecting passengers and drivers/vehicles. Many cities including Seoul have deemed their services illegal, while similar services like KakaoTaxi are emerging within the boundaries of the law.

Nevertheless, Uber is growing strongly. The enterprise value of Uber was $45 billion in December of 2014 and the Wall Street Journal has evaluated it to be $50 billion in May of 2015, which is a steep growth for just five months. Development in IoT can alter the entire structure of existing industries.

Today, we looked into a few examples of IoT implementation. Various objects are connected or can be easily connected these days. Expenses in services can also be accurately measured and paid for since everything is connected. This means the market entry barrier is getting lower for new businesses.

The possibility that new innovators with outstanding ideas could threaten the existing dominators is getting higher. This all became possible since objects connected to the internet. I look forward to seeing more advanced IoT and innovators who will change the world.

In the third post, we’ll go over IoT implementation technology trends.

Written by Yeonjeong Jeong, Research & Development Specialist atLG CNS Technology Strategy Team

[1] In this post, a dedicated or closed network is being described as the internet for security reasons.[back to the article]

[2] ITU-T (Y.2060), ‘Overview of the Internet of Things’ [back to the article]

[3] This posting reconstructed the criteria in the report “Change toward Hyper-connectivity” published by the National IT Industry Promotion Agency for the categorization.
[back to the article]

[4] http://www.cctvnews.co.kr/atl/view.asp?a_id=16216 [back to the article]

[5] Federation of Korean Information Industries (2015). Top 7 Mega IT Trends in 2015
[back to the article]

[6] http://www.gereports.kr/ge-trip-optimizer-for-smart-train-solution [back to the article]

[7] Choi, Minseok and Wongyu Ha. 2013. Shift to Hyperconnectivity [back to the article]

[8] http://biz.chosun.com/site/data/html_dir/2015/02/17/2015021702492.html [back to the article]

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