I’ll Speak Twice at Internet of Things Global Summit Next Week

I always love the Internet of Things Global Summit in DC because it’s the only IoT conference I know of that places equal emphasis on both IoT technology and public policy, especially on issues such as security and privacy.

At this year’s conference, on the  26th and 27th, I’ll speak twice, on “Smart Aging” and on the IoT in retailing.

2015_IoT_SummitIn the past, the event was used to launch major IoT regulatory initiatives by the FTC, the only branch of the federal government that seems to really take the IoT seriously, and understand the need to protect personal privacy and security. My other fav component of last year’s summit was Camgian’s introduction of its Egburt, which combines “fog computing,” to analyze IoT data at “the edge,” and low power consumption. Camgian’s Gary Butler will be on the retail panel with me and with Rob van Kranenburg, one of the IoT’s real thought leaders.

This year’s program again combines a heady mix of IoT innovations and regulatory concerns. Some of the topics are:

  • The Internet of Things in Financial Services and the Insurance sector (panel includes my buddy Chris Rezendes of INEX).
  • Monetizing the Internet of Things and a look at what the new business models will be
  • The Connected Car
  • Connected living – at home and in the city
  • IoT as an enabler for industrial growth and competition
  • Privacy in a Connected World – a continuing balancing act

The speakers are a great cross-section of technology and policy leaders.

There’s still time to register.  Hope to see you there!

 

 

Claro’s IoT Strategy Creation Guide: important in own right & symbolically

IoT_strategy_cards

Claro IoT Service Diagram Cards — collect the whole set!

Some IoT advances are as important symbolically (especially as key steps in the IoT’s maturation) as in their own right.

I consider Claro Partners‘s new “A Guide to Succeeding in the Internet of Things” in that vein, both showing that it’s not just enough to create a whizbang IoT device or app — you need a methodical strategy to maximize the benefits– and providing a very practical tool to create such a strategy. Written as the IoT reaches the top of the Gartner Hype Cycle, it aims at helping readers identify and meet real user needs and create viable business models. Based on several conversations at last night’s Boston IoT Meetup, it couldn’t be more timely, as (for example) smart home device sales slump, as reflected in Quirky’s bankruptcy.

Claro, in case you haven’t heard about them before, is headquartered in my favorite “smart city,” Barcelona, and is known for its Clayton Christensen-style emphasis on the opportunities presented by disruptive change (hmm: wonder if they have wei ji ideograms on the wall, LOL?), particularly with the IoT.

The Guide is a quick read, but can inspire you for a long time to come.

It’s divided into four portions, which I’m guessing codify the process that Claro uses internally to brainstorm strategies for its own clients:

  1. Define the challenge. “Identify a user-centric challenge to solve.”
  2. Ideate* the solution. “Create a solution that provides new value to the user.”
  3. Develop the offer. “Map out the ecosystem and interactions of your product and service.”
  4. Plan for production. “Identify resources needed and conduct gap analysis.”

They suggest you follow these steps sequentially, even if you already have a solution in mind, because “the exercises will help you to refine, develop or rethink it.”

Now for the details, which include very specific steps and some very helpful graphic aids.

First, Define the challenge. They stress you need to avoid being seduced by the lure of doing something just because it’s technologically possible. Make sure it meets a real
human need. The initial categories they suggest include:

    • Human Needs FrameworkAgeing population (sweeeeet! My “smart aging” paradigm shift!)
    • Work-life balance
    • Urban life
    • Health and wellbeing
    • Local Communities
    • Education
    • Sustainability/Shopping
    • Tourism, Family.

Then Claro suggests that your team go through a 30-minute process where it uses the four questions in this “human needs framework,” such as “what do people want to control?” and decide which challenge you’re going to design for (assume you could think big and try for one that meets multiple questions).

Second, Ideate the solution.  Similar to my “What can you do now that you couldn’t do before” question, this one asks you to not just use the IoT to refine a current approach to the issue you identified, but to “reimagine entirely new capabilities and value that an IoT service can deliver.”

This 40-min. process includes defining the person facing the challenge and aspects of their life, then brainstorming solutions to meet their real needs and how the IoT could be used to enable that solution.

Third, Develop the offer. They share my concern about proprietary IoT solutions, (which they label “intranet of things, LOL), and instead remind your team to, IFTTT-like,

IoT Service Diagram

IoT Service Diagram

“take advantage of the ecosystem enabled by the IoT to create interconnected services, experiences and business models.” In this process, which they estimate takes 40 minutes, you print out the IoT Service Diagram Cards (see above — I imagine “flipping” them and trading with the other kids on the playground, until our Moms throw out our collections…) and use them to map out how your idea will work, including drawing the data flow (don’t forget my dictum that data flow must be cyclical with the IoT!).  The important questions to ask — make sure to ask all of them! — include:

  • Will the device just provide information to the user or will it act on that information?
  • What are the specific inputs/outputs of the service? (eg. sight, sounds, touch, taste, smell, temperature)
  • Could the device learn through its use over time and adapt its behaviour accordingly?
  • Could the service use existing devices, data streams or interfaces?

Finally, in the fourth step, (30 minutes? Dream on!) the rubber hits the road, and you

IoT Canvas

IoT Canvas

Plan for Production!  Claro warns, “Don’t underestimate the complexity of bringing to life an offer that spans both the physical and digital, Do map out all the elements you’ll need to successfully develop and deliver your IoT offer.”

On the IoT Canvas, you bring together all the crucial considerations, such as manufacturing and logistics, revenues and costs, that must be nailed down to make the product affordable and profitable.  Specifically, Claro says you need to specifically state the offer’s value proposition to the end user, use the questions in each box on the form as prompts, fill out the rest of the canvas with details of the product and service idea, and write down “which resources, capabilities and processes you have, and which you’d need to acquire (gap analysis).”

I agree with Claro that these four steps, especially the last one, are iterative, and you need to revisit each of them throughout the entire conceptual and production process.

I have no doubt that, as IoT technology (especially miniscule, low-energy sensors) and experience continues to evolve, this process will be refined, but Claro has done the entire IoT industry, especially makers and entrepreneurs, a real service by codifying this approach and being willing to share it — after all, the IoT’s all about collaboration! 


*we’ll let them off with a warning from the Grammar Police this time. However, please, no more management babble in the future, OK?

 

IoT for Gamechangers: Talkin’ Smart Cities

Pope Francis wasn’t the only one speaking truth to power at 10 AM this morning: I was a guest again on SAP’s “Coffee Break With Game Changers” (you can catch a rebroadcast in a few hours), talking with hostess Bonnie Graham and SAP’s Ira Berk about smart cities.

Having just read the great bio of Elon Musk, I contrasted the top-down, I-gotta-sign-off-on-every-purchase-over-$10,000 style of Musk (and Steve Jobs, for that matter) with the out-of-control (in the best sense of the term!), bottoms-up approach needed in gigantic, complex, ever-changing cities (blogged on this earlier this week) to make them “smart.” IMHO, smart cities will evolve from a wide range of small, incremental changes, both public and private.

One of my favorite examples that I mentioned was announced today by Mayor Marty Walsh here in the Home of the Bean and the Cod.  The city has already been partnering with Waze for months: it informs Waze of any planned road work and detours, and, in return, Waze gives the city its real-time data to respond to traffic jams. Today the mayor announced that bike-riding Traffic Enforcement Officers will be able to swoop in on double-parking miscreants using Waze data.  Oh yeah, there’s another party to this collaboration: you and I, who make Waze work by reporting traffic and obstacles that we encounter while driving the city’s streets. Perfect example of my IoT “Essential Truth” that we must share data.

There was a lot more on the show: hope you can tune in!

BTW: when Bonnie asked at the end of the show if we’d dust off our crystal balls and predict how the IoT will make smart cities by 2020 — I stuck my neck out and said it would much quicker for the reasons I cited in the above-mentioned post on smart cities, especially the free citywide IoT data network movement spearheaded by Amsterdam.  If you’re in Greater Boston and would like to be in the vanguard of this movement, meet us next Wednesday night at the kewl new InTeahouse space in Cambridge, to plan our strategy to launch the free, citywide (including neighborhoods!) Boston IoT Data Network!

 

Free Citywide IoT Data Networks Will Catapult IoT Spread to Hyperspeed!

One of the truly exciting things about viral digital phenomena is how rapidly they can take hold, outstripping the slow, methodical spread of innovations in the pre-digital era.  I suspect we may be on the verge of that happening again, with an unlikely impetus: the crowdsourced global movement to create free citywide IoT data networks.

We’re been there before, with the movement to open real-time public access to city data bases, beginning when CTO (and later US CIO) Vivek Kundra did it in DC in 2008, then sponsored the Apps for Democracy competition to spark creation of open-source apps using the data (bear in mind this was at a time when you had to explain to many people what an “app” was, since they, and smart phones, were so new).  From the beginning, Kundra insisted that the apps be open source, so that hackers in other cities could copy and improve on them, as they have — worldwide.

I was doing consulting for him at the time, and remember how incredibly electric the early days of the open data movement were — it inspired my book Data Dynamite, and led to similar efforts in cities worldwide, which in turn set the stage for the “smart city” movement as the IoT emerged.

As detailed in my last post, we’re now launching a crowdsourced campaign to make Boston the first US city, and second worldwide (following Amsterdam) to have a free citywide IoT data network — and plan to up the ante by setting of goal to cover the neighborhoods too — not just the downtown.

The Things Network guys plan to build on their accomplishments, announcing this week that they will advise similar crowdfunded networks on five continents (including our Boston project). They place a major emphasis on grassroots development, to avoid subscription-based infrastructures that could be controlled from above and which would limit l0w-cost innovations, especially on the neighborhood scale.  According to founder Wienke Giezeman:

““If we leave this task up to big telcos, a subscription model will be enforced and we will exclude 99% of the cool use cases. Instead, let’s make it a publicly owned and free network so businesses and use cases will flourish on top of it.”

I’ve been a fan of mesh networks back to my days doing disaster and terrorism because they’re self-organizing and aren’t vulnerable because there isn’t a single point of failure. But it’s as much philosophical as technological, because you don’t have to wait for some massive central authority to install the entire system: it evolves through the decisions of individuals (we’re already finding that in Boston: it turns out that our system will be able to tap a number of LoRaWAN gateways that several companies had already installed for their own uses!) The Amsterdam guys share that perspective. Tech lead Johan Stokking says:

“We make sure the network is always controlled by its users and it cannot break at a single point. This is embedded in our network architecture and in our governance.”

Takes me back to my callow youth in the 6o’s: let a thousand apps bloom! (and, BTW, the great Kevin Kelly made this point in his wonderful Out of Control, back in the mid 90’s, especially with his New Rules for the New Economy (I’m going to take the liberty of posting all the rules here, because they are so important, especially now that we have technology such as LoRaWAN that foster them!):

1) Embrace the Swarm. As power flows away from the center, the competitive advantage belongs to those who learn how to embrace decentralized points of control.

2) Increasing Returns. As the number of connections between people and things add up, the consequences of those connections multiply out even faster, so that initial successes aren’t self-limiting, but self-feeding.

3) Plentitude, Not Scarcity. As manufacturing techniques perfect the art of making copies plentiful, value is carried by abundance, rather than scarcity, inverting traditional business propositions.

4) Follow the Free. As resource scarcity gives way to abundance, generosity begets wealth. Following the free rehearses the inevitable fall of prices, and takes advantage of the only true scarcity: human attention.

5) Feed the Web First. As networks entangle all commerce, a firm’s primary focus shifts from maximizing the firm’s value to maximizing the network’s value. Unless the net survives, the firm perishes.

6) Let Go at the Top. As innovation accelerates, abandoning the highly successful in order to escape from its eventual obsolescence becomes the most difficult and yet most essential task.

7) From Places to Spaces. As physical proximity (place) is replaced by multiple interactions with anything, anytime, anywhere (space), the opportunities for intermediaries, middlemen, and mid-size niches expand greatly.

8) No Harmony, All Flux. As turbulence and instability become the norm in business, the most effective survival stance is a constant but highly selective disruption that we call innovation.

9) Relationship Tech. As the soft trumps the hard, the most powerful technologies are those that enhance, amplify, extend, augment, distill, recall, expand, and develop soft relationships of all types.

10) Opportunities Before Efficiencies. As fortunes are made by training machines to be ever more efficient, there is yet far greater wealth to be had by unleashing the inefficient discovery and creation of new opportunities.”

If you really want to exploit the IoT’s full potential, you gotta read the whole book.

Equally important, the Obama Administration announced it will boost smart city app development with a new $160 million smart cities initiative:

“Among the initiative’s goals are helping local communities tackle key challenge such as reducing traffic congestion, fighting crime, fostering economic growth, managing the effects of a changing climate, and improving the delivery of city services. As part of the initiative, the National Science Foundation will make more than $35 million in new grants and the National Institute of Standards and Technology will invest more than $10 million to help build a research infrastructure to develop applications and technology that ‘smart cities’ can use.”

The LoRaWan gateways used in the Amsterdam project are already low cost: only 10 of the $1,200 units covered the downtown area. However, The Things Network hopes to crowdsource an even cheaper, $200 version through a Kickstarter campaign.  If that happens, even small cities will be able to have their own free citywide IoT data networks, and when that happens, I’m confident the IoT will shift into hyperdrive worldwide!

Are you on board?


 

Oh yeah, did you say what about the risks of privacy and security violations with such a large and open system? The Amsterdam lads have thought of that as well, reaching out to Deloitte from the get-go to design in security:

“To make this initiative grow exponentially, we have to take cyber security and privacy into account from the start of the development. Therefore, we have partnered with Deloitte, who is not only contributing to the network with a Gateway, but will also be the advisor on the security and privacy of the network.

“’We translate technology developments in the field of Digital, Data and Cyber Security into opportunities and solutions for our clients. We are therefore happy to support the Things Network as Security & Privacy advisor’ Marko van Zwam, Head of Deloitte Cyber Risk Services.”

Boston Crowdsourced Campaign to Give City 1st Citywide Free IoT Data Network in US

You’ll remember I got quite excited while blogging the new citywide free IoT data network in Amsterdam, and decided on the spot to make Boston the first US city with such a network.  Here’s our release!

Crowdsourced Campaign to Create Free Citywide IoT-Data Network in Boston
would be first city in US to share Internet of Things’ benefits citywide

(Boston, September 21, 2018) — A crowdsourced campaign will make Boston the first US city with a free, citywide Internet of Things (IoT) data network, facilitating entrepreneurial, municipal, and neighborhood innovations in everything from traffic reduction to public health.

The Boston campaign is based on one in Amsterdam that built a similar network in a month (although not penetrating all neighborho0ds), and activists there are helping the Boston effort. While being built, the Amsterdam system already spawned uses such as a water detector to canal boat owner a text that a boat is filling with water and a system for the Port of Amsterdam using sensors to create real-time information to help manage boat traffic more efficiently. The campaign complements opening of the INEX IoT Impact Lab in New Bedford, President Obama’s $160 million fund for “smart cities” projects, and the Amsterdam group’s effort to spread the approach to 5 continents.

The network will use new LoRaWAN gateways, which  let things exchange data without 3G or Wi-Fi, and feature low battery usage and a range of up to 7 miles.  Several companies have already donated units to the Boston campaign before the launch.

According to IoT thought leader W. David Stephenson of Stephenson Strategies, who also founded the 1,500 member Boston IoT Meetup (which will form the core of the crowd-sourced campaign), “We hope to gain wide public and private support because this will not only spark profitable innovation, but also other efforts that will make Boston, especially the neighborhoods, a better place to live. Think of what your companies — and the city as a whole — could do if we had such a network: the entire city of Boston would become an IoT lab/sandbox, encouraging incredible innovation in use of IoT. But we must move quickly if we are to be the first US city with such a network.”

IoT entrepreneur Chris Rezendes of INEX Advisors, co-chair of the IoT Meetup and creator of the New Bedford IoT Impact Lab, said “the IoT will prove its real value when people and companies can see the tangible results improving their daily lives and corporate efficiency. From New Bedford to Boston, we’re a world leader in making the IoT a tangible reality for companies and cities alike.”

Wish us luck: if we’re successful, look forward to working with The Things Network to spread the concept worldwide — the sooner the better!

Share It (Data) and They Will Come: Crowdsourced Citywide IoT Network

I haven’t been as excited about anything for a long time as I am about a global revolution that began last week in Amsterdam!

Cities are rapidly becoming the very visible and innovative laboratories for IoT innovation, which is logical, because they’ve been in the forefront of open data — as I saw first-hand when I was consulting for Vivek Kundra when he opened up vast amounts of real-time data as CTO for the District of Columbia as part of its Apps for Democracy initiative in 2008 that was part of the larger democratizing data movement.

Now there’s an exciting new development in Amsterdam, that really is bringing power to the people: The Things Network, the first crowdsourced free citywide IoT district. Astonishingly, volunteers brought the whole system to launch in only four weeks!

So far, the creators are visualizing a wide range of uses, but I particularly liked a particularly local one for a city synonymous with canals:

“A pilot project to demonstrate the Things Network’s potential will see boat owners in the city (there are many, thanks to its network of canals) able to place a small bowl in the base of their vessel. If the boat develops a leak and starts taking on water, the bowl will use the network to send an SMS alert to a boat maintenance company that will come along and fix the problem.”

How cool is that?  It also illustrates what I think is one of the key intangibles about the IoT: when you empower everyone (and I mean that literally!) by opening up data, people will find more and more innovative IoT devices and services, stimulated by their own particular needs, desires — and sometimes, even pain (that’s why I think even the most optimistic views of the IoT’s impact will be dwarfed as it becomes ubiquitous!).

Even more exciting, the group’s goal is to bring the technology to every city in the world! That, my friends, will be an incredible global game-changer. Think of it: EVERY city will become an open laboratory for change.

The Things Network uses low-power, low-bandwidth LoRaWAN technology to create the network: ten $1,200 hubs covered the whole city!  Having been hiding under a rock, I must admit I’d never heard of LoRaWan. Here are the benefits:

  • don’t need 3G or WiFi to connect with the Internet — no WiFi passwords, mobile subscriptions
  • no setup costs
  • low battery usage
  • long range
  • low bandwidth.

The whole scheme reminds me of the old Andy-Hardy-it’s-crazy-enough-it-might-work thinking:

“Dutch entrepreneur Wienke Giezeman came up with the idea for the Things Network just six weeks ago when he came across a €1,000 ($1,100) LoRaWAN gateway device and realized that with 10 such devices, the whole of Amsterdam could be covered. He pitched his idea at an Internet of Things meetup in the city and received a positive response.

“Work then began to create a community-owned data network that developers could build on top of without any proprietary restrictions. Companies including The Next Web and accountancy giant KPMG have agreed to host gateway devices at their premises, and the City of Amsterdam local authority is enthusiastic about the idea.”

How’s this for a vision?

“Because the costs are very low, we do not have to rely on large telco corporations to build such a network. Instead, we can crowdsource the network and make it public without any form of subscription. Our mission is to enable a network by the users for the users.” (my emphasis)

Most important from a democratizing data standpoint, it will all be open source:

“Our goal is to make the network architecture as decentralized as possible. And avoid any points of failure or control. We already have a community of 10 developers writing network software and equipment firmware.”

Giezeman wants to cut the cost before launching his plan of making the concept worldwide. He will soon launch a Kickstarter campaign to fund production of a smaller, €200 ($220) LoRaWan (vs. the $1,200 current ones). He may offer consulting services to capitalize on the idea, but that’s not the current priority.

That kind of openness and lack of strings attached, IMHO, is going to really lead to incredible innovation!  We’re holding a Boston IoT MeetUp hackathon next month to try to bring similar innovation to The Hub, and wouldn’t it be wonderful if cities everywhere launched a virtuous competition to speed smart cities’ adoption (and, don’t forget: this has huge implications for companies as well: there’s nothing to stop smart companies from creating new products and services to capitalize on the shared data!).

I note Amsterdam is 84 square miles, and The Hub of the Universe is 89 sq. miles, so I suspect the costs would be similar here.  I’m throwing down the gauntlet: let’s make Boston the second IoT city!

Let a thousand neighborhoods bloom!

 

LOL: The Boston Olympics that Will Not Be: How the IoT MIGHT Have Pulled It Off!

Well, there go the billions my wife and I were going to make from renting our house through Airbnb for the Boston 2024 Olympics….   The US Olympic Committee pulled their support for the bid several hours ago based on the lack of public support for the proposal, which comes as NO surprise to those of us who know and (sometimes) love the local sport of choice in Boston: not the modern pentathalon, but debating any issue ad nauseum and eating our own.

Oh well!  I’d been planning a special meeting of our Boston IoT MeetUp for September about how the IoT really might make it possible that we could both build the Olympic infrastructure on time and on budget through creative use of the IoT AND also build a positive legacy that would endure after the games were over.

I’d also just written an op-ed on the subject. Since the chances of getting one of the local rags to publish that now are also zero, I thought I’d post it here, in hopes that it may inspire the other cities still bidding for the Games to adopt this approach, and that Boston and Massachusetts will also make the IoT a critical part of any major construction projects and smart city strategies.


 

What if a single approach could meet both of Boston 2024’s main challenges: building the venues on-time and under budget, AND assuring a positive legacy for the city, region and state?

There is: the Internet of Things (IoT), the concept of linking not just people, but also devices, via the Internet so they can be coordinated and activated automatically and in real time.  The IoT is already a reality, as demonstrated by examples ranging from “smart” thermostats you can adjust from your smartphone to fitness devices that let you track your vital signs.

While most are still unaware of the IoT, Boston was recently ranked as the world’s fourth-leading city in terms of numbers of IoT companies, and the Boston IoT MeetUp that I co-chair has grown to 1400 members in less than two years.

Every Olympics faces serious questions because of the history of cost overruns and construction delays, but our bid faces the extra burden of the botched Big Dig.

Construction sites are inherently chaotic because of so much equipment and so many subcontractors, resulting in an astounding 70-80% idle time, but the IoT changes that.  My client, SAP, and SK Solutions have collaborated in Dubai (which is on a construction binge dwarfing anything the Olympics might bring), putting sensors on all of the construction equipment, trucks, etc., so that the managers can visualize, in real-time, who is where, and make sure the right ones are in place and ready to go exactly when needed. Everyone who needs it, from operators to maintenance, shares the same data at the same time, building collaboration and efficiency.

The IoT can also make the games run smoothly and efficiently. After last Winter, we know how poorly the MBTA operates currently. The IoT can dramatically improve operations because sensors will report real-time data about the condition of every piece of rolling stock, so issues can be dealt with quickly and cheaply ( “predictive maintenance”) before they become critical. Ports and airports, such as Logan, are also inherently chaotic, but the Port of Hamburg has increased its operating efficiency through IoT coordination of every vehicle.  Clever IoT transportation projects already underway by the Mayor’s Office of the New Urban Mechanics can also help the games operate efficiently.

Believe it or not, even the most prosaic parts of our urban landscape can and must be reinvented to make the games run smoothly.  You’ve already seen the ultra-modern Big Belly Solar trash compactors (from Needham) that now dot downtown, which compact trash and collect recycling to make our streets cleaner. But did you know that each of them also houses a wireless system that creates a free “mesh network” that gives us free wi-fi access on the streets as well (and, in a post-Olympics disaster, could provide real-time response information)? Why not deploy them region-wide? Or, why have conventional streetlights when there are ones that not only cut electric use with LED bulbs, but also have banner-like LED panels that could have constantly-changing panels about that day’s events and would switch instantly to showing real-time detours because of data about traffic jams just ahead?

The Olympics will also stress our electricity infrastructure, and the IoT can help there as well. Two-way real-time data flow will allow a electric “smart grid” to dispatch power exactly when, where, and in the amount needed. What if we also had the world’s best network of neighborhood electric car chargers, and if Zip Car, one of our home-bred IoT innovations, became the preferred way of getting around not just downtown, but also the whole region?

A smart grid and efficient, reliable mass transit wouldn’t be the only positive legacy from the IoT.  If the Olympic Village to house the athletes was made up of “smart buildings” with built-in sensors, after the Olympics they would become economical, user-friendly and affordable apartments.

You may not have heard much about the Internet of Things so far, but the technology is already here, and the cost is plummeting.  Major orders for sensors, operating software and other components for the Olympics would create more jobs in our local IoT industry and further drive down the IoT’s cost.

Experts agree that the IoT will bring about as radical a transformation in our lives and economy as the Internet did, and making it the centerpiece of Boston’s Olympics construction, operations and legacy planning could make us again the Hub of the (Internet of Things) Universe.


 

Oh well!

The IoT Can Improve Safety and Profitability of Inherently Dangerous Job Sites

You may remember I wrote several months ago about a collaboration between SAP and SK Solutions in Dubai (interesting factoid: Dubai is home to almost 25% of the world’s cranes [assume most of the rest nest at Sand Hill, LOL], and they are increasingly huge, and that makes them difficult to choreograph.

I’m returning to the subject today, with a slightly broader emphasis on how the IoT might manage a range of dangerous job sites, such as mining and off-shore oil rigs, allowing us to do now that we couldn’t do before, one of my IoT Essential Truths.

I’m driven in part by home-town preoccupation with Boston’s bid for the 2024 Olympics, and the inevitable questions that raises on the part of those still smarting from our totally-botched handling of the last big construction project in these parts, the infamous “Big Dig” tunnel and highway project.

I’m one of those incurable optimists who think that part of ensuring that the Olympics would have a positive “legacy” (another big pre-occupation in these parts) would be to transform the city and state into the leading example of large-scale Internet of Things implementation.

There are a couple of lessons from SAP and SK Solutions’ collaboration in Dubai that would be relevant here:

    • The system is real-time: the only way the Boston Olympic sites could be finished in time would be through maximizing efficiency every day. Think how hard that is with a major construction project: as with “for want of a nail the kingdom was lost,” the sensitive interdependence between every truck and subcontractor on the site — many of which might be too small to invest in automation themselves — is critical. If information about one sub being late isn’t shared, in real-time, with all the other players, the delays — and potential collisions — will only pile up. The system includes an auto-pilot that makes immediate adjustments to eliminate operator errors. By contrast, historical data that’s only analyzed after the fact won’t be helpful, because there’s no do-overs, no 2025 Olympics!
    • The data is shared: that’s another key IoT Essential Truth.  “Decision-makers using SK Solutions on a daily basis span the entire organization. Besides health and safety officers, people responsible for logistics, human resources, operations and maintenance are among the typical users.”  The more former information silos share the data, the more likely they are to find synergistic solutions.
    • The system is inclusive, both in terms of data collection and benefits: SK Solutions’ Founder and Inventor Séverin Kezeu, came up with his collision-avoidance software pre-IoT, but when the IoT became practical he partnered with SAP, Cisco, and Honeywell to integrate and slice and dice the data yielded by the sensors they installed on cranes and vehicles and other sources.  For example, the height of these cranes makes them vulnerable to sudden weather changes, so weather data such as wind speed and direction must be factored in, as well as the “machinery’s position, movement, weight, and inertia…. The information is delivered on dashboards and mobile devices, visualized with live 3-D images with customizable views. It’s also incredibly precise.”As a result, by using SAP’s HANA platform, a system developed to reduce construction accidents also makes predictive maintenance of the cranes and other equipment, and lets the construction companies monitor Key Performance Indicators (KPIs) such as asset saturation, usage rates, and collisions avoided.  McKinsey reports that construction site efficiency could improve dramatically due to better coordination: “One study found that buffers built into construction project schedules allowed for unexpected delays resulting in 70 to 80 percent idle time at the worksite.Visibility alone can allow for shorter buffers to be built into the construction process.”

Several other great IoT solutions come to mind at the same time, both relating to dangerous industries. Off-shore oil rigs and mining were treated at length in the recent McKinsey omnibus IoT forecast, “The Internet of Things: Mapping the Value Beyond the Hype:”

  • off-shore rigs: “Much of the data collected by these sensors [30,000 on some rigs] today is used to monitor discrete machines or systems. Individual equipment manufacturers collect performance data from their own machines and the data can be used to schedule maintenance. Interoperability would significantly improve performance by combining sensor data from different machines and systems to provide decision makers with an integrated view of performance across an entire factory or oil rig. Our research shows that more than half of the potential issues that can be identified by predictive analysis in such environments require data from multiple IoT systems. Oil and gas experts interviewed for this research estimate that interoperability could improve the effectiveness of equipment maintenance in their industry by 100 to 200 percent.” (my emphasis). 
  • mining: “In one mining case study, using automated equipment in an underground mine increased productivity by 25 percent. A breakdown of underground mining activity indicates that teleremote hauling can increase active production time in mines by as much as nine hours every day by eliminating the need for shift changes of car operators and reducing the downtime for the blasting process. Another source of operating efficiency is the use of real-time data to manage IoT systems across different worksites, an example of the need for interoperability. In the most advanced implementations, dashboards optimized for smartphones are used to present output from sophisticated algorithms that perform complex, real-time optimizations. In one case study from the Canadian tar sands, advanced analytics raised daily production by 5 to 8 percent, by allowing managers to schedule and allocate staff and equipment more effectively. In another example, when Rio Tinto’s (one mine) crews are preparing a new site for blasting, they are collecting information on the geological formation where they are working. Operations managers can provide blasting crews with detailed information to calibrate their use of explosives better, allowing them to adjust for the characteristics of the ore in different parts of the pit.”
 In all of these cases, the safety and productivity problems — and solutions are intertwined.  As McKinsey puts it:
“Downtime, whether from repairs, breakdowns, or maintenance, can keep machinery out of use 40 percent of the time or more. The unique requirements of each job make it difficult to streamline work with simple, repeatable steps, which is how processes are optimized in other industries. Finally, worksite operations involve complex supply chains, which in mining and oil and gas often extend to remote and harsh locations.”
Could it be that the IoT will finally tame these most extreme work situations, and bring order, safety, and increased profitability?  I’m betting on it.

McKinsey IoT Report Nails It: Interoperability is Key!

I’ll be posting on various aspects of McKinsey’s new “The Internet of Things: Mapping the Value Beyond the Hype” report for quite some time.

First of all, it’s big: 148 pages in the online edition, making it the longest IoT analysis I’ve seen! Second, it’s exhaustive and insightful. Third, as with several other IoT landmarks, such as Google’s purchase of Nest and GE’s divestiture of its non-industrial internet division, the fact that a leading consulting firm would put such an emphasis on the IoT has tremendous symbolic importance.

McKinsey report — The IoT: Mapping the Value Beyond the Hype

My favorite finding:

“Interoperability is critical to maximizing the value of the Internet of Things. On average, 40 percent of the total value that can be unlocked requires different IoT systems to work together. Without these benefits, the maximum value of the applications we size would be only about $7 trillion per year in 2025, rather than $11.1 trillion.” (my emphasis)

This goes along with my most basic IoT Essential Truth, “share data.”  I’ve been preaching this mantra since my 2011 book, Data Dynamite (which, if I may toot my own horn, I believe remains the only book to focus on the sweeping benefits of a paradigm shift from hoarding data to sharing it).

I was excited to see that the specific example they zeroed in on was offshore oil rigs, which I focused on in my op-ed on “real-time regulations,” because sharing the data from the rig’s sensors could both boost operating efficiency and reduce the chance of catastrophic failure. The paper points out that there can be 30,000 sensors on an rig, but most of them function in isolation, to monitor a single machine or system:

“Interoperability would significantly improve performance by combining sensor data from different machines and systems to provide decision makers with an integrated view of performance across an entire factory or oil rig. Our research shows that more than half of the potential issues that can be identified by predictive analysis in such environments require data from multiple IoT systems. Oil and gas experts interviewed for this research estimate that interoperability could improve the effectiveness of equipment maintenance in their industry by 100 to 200 percent.”

Yet, the researchers found that only about 1% of the rig data was being used, because it rarely was shared off the rig with other in the company and its ecosystem!

The section on interoperability goes on to talk about the benefits — and challenges — of linking sensor systems in examples such as urban traffic regulation, that could link not only data from stationary sensors and cameras, but also thousands of real-time feeds from individual cars and trucks, parking meters — and even non-traffic data that could have a huge impact on performance, such as weather forecasts.  

While more work needs to be done on the technical side to increase the ease of interoperability, either through the growing number of interface standards or middleware, it seems to me that a shift in management mindset is as critical as sensor and analysis technology to take advantage of this huge increase in data:

“A critical challenge is to use the flood of big data generated by IoT devices for prediction and optimization. Where IoT data are being used, they are often used only for anomaly detection or real-time control, rather than for optimization or prediction, which we know from our study of big data is where much additional value can be derived. For example, in manufacturing, an increasing number of machines are ‘wired,’ but this instrumentation is used primarily to control the tools or to send alarms when it detects something out of tolerance. The data from these tools are often not analyzed (or even collected in a place where they could be analyzed), even though the data could be used to optimize processes and head off disruptions.”

I urge you to download the whole report. I’ll blog more about it in coming weeks.

Incredible example of rethinking “things” with Internet of Things

Ladies and gentlemen, I give you the epitome of the IoT-enabled product: the trash can!

My reader statistics do not indicate this blog has a heavy readership among trash cans, but let me apologize in advance to them for what I’m about to write: it’s not personal, just factual.

I’m sorry, but you municipal trash cans are pathetic!

Dented. Chipping paint. Trash overflowing. Smelly. Pests (ever seen any of those prize city rats? Big!!!) Sometime even knocked over. And, worst of all, you are so…. DUMB. You just sit there and don’t do anything.

BigBelly trash compactor and recycling center

But that was then, and this is now.

I have seen the future of trash cans, and, equally important, perhaps the best example I’ve seen of how smart designers and company strategists can –and must — totally rethink products’ design and how they are used because of the Internet of Things! 

At last week’s Re-Work Internet of Things Summit there were many exciting new IoT examples (I’ll blog others in coming weeks) but perhaps the one that got more people talking was the BigBelly trash compactor & recycling system, high-tech successor to the lowly trash can.

The company’s motto is that they are “transforming waste management practices and contributing to the Smart Cities of tomorrow.” Indeed!

I was first attracted to the BigBelly systems because of my alternative energy and environmental passions: they featured PV-powered trash compactors, which can quintuple the amount a trash container can hold, eliminating overflowing containers and the need to send trucks to empty them as frequently. Because the containers are closed, there’s no more ugly banana peels and McDonald’s wrappers assaulting your delicate eyes — or noses! Equally important, each is paired with a recycling container, which are almost never seen on city streets, dramatically reducing the amount of recyclables that go into regular trash simply because no recycling containers are accessible downtown.  These features alone would be a noteworthy advance compared to conventional trash cans.

But BigBelly wasn’t content to just improve the efficiency of trash and recyclable collection: they decided to make the containers smart.

The company worked with Digi to add wireless communications to the bins. This is a critical part of BigBelly’s broader significance: when the IoT first started to creep into corporate consciousness, of course designers thought about smart versions of high-value products such as cars, but lowly trash cans? That deserves real praise, because they fundamentally re-examined not only the product as it existed, but also realized that an IoT-based version that could also communicate real-time data would become much more versatile and much more valuable.

Here’s what has resulted so far (and I suspect that as the BigBellys are more widely deployed and both city administrators and others become aware of their increased functionality, other features will be added: I see them as “Smart City Hubs!”):

  • heatmap of trash generation in Lower Manhattan using real-time data from BigBellys and CLEAN dashboard

    instead of traditional pickup routes and schedules that were probably based on sheer proximity (or, as BigBelly puts it a little more colorfully, “muscle memory and gut instincts”), they now offer a real-time way to monitor actual waste generation, through the “CLEAN Management Console,” which allows DPW personnel to monitor and evaluate bins’ fullness, trends and historical analysis, for perspective. Collections can now be dynamic and driven by current needs, not historical patterns.

  • For those cities that opt for it, the company offers a Managed Services option where it does the analysis and management of the devices — not unlike the way jet turbine manufacturers now offer their customers value-added data that allows them to optimize performance — and generates new revenue streams for the manufacturers.
  • You may remember that I blogged a while ago about the “Collective Blindness” analogy: that, until the IoT, we humans simply couldn’t visualize much about the inner workings of the material world, so we were forced to do klugy work-arounds.  That’s not, strictly speaking, the case here, since trash in a conventional can is obviously visible, but the actual volume of trash was certainly invisible to those at headquarters. Now they can see — and really manage it.
  •  They can dramatically increase recycling programs’ participation rate and efficiency. As BigBelly says, the system provides “intelligent infrastructure to support ongoing operations and free up staffing and resources to support new and expanded recycling programs. Monitoring each separate stream volumes, days to fullness, and other activities in CLEAN enables you to make changes where needed to create a more effective public recycling program. Leverage the stations’ valuable sidewalk real estate to add messaging of encouraging words to change your users’ recycling behaviors.”Philadelphia is perhaps the best example of how effective the system can be. The city bought 210 of the recycling containers in 2009. On average, each collected 225 pounds of recyclables monthly, resulting in 23.5 tons of material diverted from landfills. Philly gets $50 per ton from the recycling — and avoiding $63 in landfill tipping fees, with a total benefit to the city of $113 per ton, or $2599 per month.

Here’s where it really gets neat, in my estimation.

Because the BigBellys are connected in real time, the devices can serve a number of real-time communication functions as well (enabled by an open API and an emphasis by BigBelly on finding collaborative uses). That includes making them hubs for a “mesh network” municipal wi-fi system (which, by the way, means that your local trash container/communications hub could actually save your life in a disaster or terror attack, when stationary networks may be disrupted, as I explained years ago in this YouTube video).

The list of benefits goes on (BigBelly lists all of them, right down to “Happy Cities,” on its web site). Trust me: if my premise is right that we can’t predict all of the benefits of the IoT at this point because we simply aren’t accustomed to thinking expansively about all the ways connected devices can be used, there will be more!

So here’s my take-away from the BigBelly:

If something as humble and ubiquitous as a municipal trashcan can  be transformed into a waste-reduction, recycling collection, municipal communication hub, then to fully exploit the Internet of Things’ full potential, we need to take a new, creative look at every material thing we interact with, no longer making assumptions about its limited role, and instead looking at it creatively as part of an interconnected network whose utility grows the more things (and people!) it’s connected with!

Let me know your ideas on how to capitalize on this new world of possibilities!