What is Internet of Things and how it has been used in the Industrial growth (GE Case Study) and its current IT Strategy in the market.

1. 1
INTERNET OF THINGS
Presented By:
Piyush Srivastava
Swapnil Junjare
Siddharaj Deshmukh
Prannoy Pal
Archana Vasanthan
Sachin K Ranganathan

2. Introduction to IOT
In a 1999 article for the RFID Journal Ashton wrote: “If we had computers that
knew everything there was to know about things—using data they gathered
without any help from us -- we would be able to track and count everything,
and greatly reduce waste, loss and cost. We would know when things
needed replacing, repairing or recalling, and whether they were fresh or
past their best. We need to empower computers with their own means of
gathering information, so they can see, hear and smell the world for
themselves, in all its random glory. RFID and sensor technology enable
computers to observe, identify and understand the world—without the
limitations of human-entered data.”
What is IOT?
The Internet of Things is the interconnection of uniquely identifiable
embedded computing devices with the existing internet infrastructure.

3. Evolution of IOT through the ages

4. Why IOT? - Advantages
• Automation of Daily Tasks leads to better monitoring of devices
• machine to machine communication helps maintain transparency in the
process
• Efficient and Saves Time
• It is useful since tasks don't have to be repeated manually saving time for
other stuff
• Saves Money
• Better Quality of Life
• Better Decision Making

5. Disadvantages
• Loss of Privacy and Security
• All household devices being connected to the internet is a
risk
• Compatibility
• Not all devices are the same. Compatibility issues will persist
• Complexity
• Power failures can also cause problems
• Technology taking control of life
• Dependence on IOT

6. IOT Architecture

7. 7
Top IOT Vertical Markets
Agriculture :
• To grow from 30 million in 2015 to 75 million in 2020.
• Collection of data using sensors.
• Ex. John Deere Tractors and Phenonet Project
• Farmers get sense for best time to plant crop.
Manufacturing :
• Biggest industry being impacted by IoT.
• global manufacturers will invest $70 billion on IoT solutions in 2020
• factories to be more productive and efficient using sensors.
• Better tracking of assets in the factory.
HealthCare :
• Better Service for patients and efficient Business.
• Ex. MRI Machine and other medical devices using sensors.
• Predict Repair and behaviour
• Ex- Future Path Medical’s UroSense (Measures CBT)
Philips’ Medication Dispensing Service

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Top IOT Vertical Markets - cont.
Retail :
• Bluetooth Beacons paired with mobile apps to monitor customer behaviour.
• Customer Receives Information and personalized discount.
• Estimate of $44 Billion market through beacon triggered messages.
Transportation :
• From Supply Chain Logistics to public transit for better transportation.
• Ex. Sensors to monitor Temperature in Vehicles.
• Help Driver to save fuel.
• To monitor when Fleet vehicles need repair.
• To help reduce traffic and prevent accidents.
• 2 million connected cars on the road by 2020.
Energy :
• PG&E are beginning to use Smart meters.
• To track customer’s energy usage.
• Predict demand, Spot Outages and Schedule Repairs.
• 1 Billion Smart Meters by 2020.

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Innovative Applications of IOT
• Smart Homes / Home Automation: It is one where devices have the capability to
communicate with each other.
• Ex - Nest Learning Thermostat
Philips Hue-Smart Home Lighting – 600 to 800 lumes.
• Wearables:
• These devices broadly cover the fitness, health and entertainment requirements
Ex- Jawbone UP2 , Fitbit ChargeHR , Motorola Moto 360 Sport.
• Smart City :
• IOT solves traffic congestion problems, reduce noise and pollution and help make
cities safer.
• Ex - CitySense-Smart Street Lighting ( Adjusting Brightness of Street lights )
• Smart Parking to detect available parking spots.
• Security & Emergencies
• Smart Water: wireless sensor networks to detect floods and respond
• measure increased water levels and generate alerts
• Wireless Sensor Networks to Control Radiation Levels
• send the information in real time using wireless technologies

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About GE and its Industries
• GE traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in
1878.
• In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company
created General Electric Company.
• The GE conglomerate consists of eight subsidiaries in different industries.
These subsidiaries are:
• GE Aviation, GE Capital, GE Global Research, GE Healthcare, GE Home & Business Solutions,
GE Oil & Gas, GE Power & Water, and GE Transportation.
• GE is the world’s Digital Industrial Company, transforming industry with software-defined machines
and solutions that are connected, responsive and predictive.
• GE has Bet Big on the Industrial Internet as IIOT:
• IIoT has been referred to as the smart or connected factory.
• IIoT not only automates your operations but also brings transparency to every stage of the
supply chain.

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Impact of IOT on GE
• invested $1 billion to put sensors on gas turbines, jet engines, and other machines.
• The Software Behind GE’s Industrial Internet – Predix, a cloud-based platform for
creating Industrial Internet applications.
• Patterns of sensor data used to predict the schedule maintenance checks, improve
machine efficiency, and reduce downtime.
• single unproductive day on a platform can cost a $25 million.
• analyzing what differentiated one machine’s performance from another — what
made one more efficient.
• In 2014, GE generated $1.3 billion in Predictivity revenue from new software and
analytics offerings in the market
• GE believes Predix can help the oil and gas industry in –
• Improving Asset Productivity
• creating a real-time picture of the status of an entire operation
• Support for an Aging Workforce
• building an Industrial Internet platform that meets customer needs.

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Internet Of Things – AS-IS / TO-BE Analysis
Business Strategy – (Part 1 / 3)
Strategy 6 C
Framework to
measure
Value
Network
AS-IS TO-BE
Business
(Transforming
from business
model of a
corporation to
Ecosystem
Business
Model)
Without IOT With IOT
Context
Dimension
Cooperation
Dimension
Construct
Dimension
• Concentrated perspective on only
core business.
• Only supplier-customer relationship
maintained.
• Traditional lifecycle stages.
• Return on investment (value
creation) is concentrated.
• Every sector has access to their own
platform in the vertical.
• Less/No engagement of partners to
work together.
• Structure: In-house software
development for vertical specific
needs.
• Infrastructure: Technologies cater to
only business needs in the vertical.
• Expand perspective beyond core business.
• Key Mission is each subsidiary functions in
an integrated manner.
• Interdependent organizations share their
ideas for future developments
• Change in lifecycle stages
• Return on investment (value creation) will
be expanded.
• Due to the integrated nature of the
ecosystem across horizontal
communication and access to platform
becomes easy.
• Open interface encourages partners to
work together.
• Structure: Almost all industrial
users/actors at various level are a part of
the platform.
• Infrastructure: IoT technology caters to
business, operational as well as predictive
needs of the business.

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Internet Of Things – AS-IS / TO-BE Analysis
Business Strategy – (Part 2 / 3)
Strategy 6 C
Framework to
measure
Value
Network
AS-IS TO-BE
Business
(Transforming
from business
model of a
corporation to
Ecosystem
Business
Model)
Without IOT With IOT
Configuration
Dimension
Capability
Dimension
• Pattern: Focal firm dominance of
verticals across the corporation.
• External relationship: Various
customer communities for different
verticals or separate customers.
• Vertical communication and
accessibility of resources &
information.
• Limited Innovation & learning ability.
• Less adaption & mobility beyond the
vertical.
• Selected partners contributing to the
focal firm.
• Less integration & synergizing ability
across the corporation.
• Pattern: One focal firm with other
relevant stakeholders as a corporation.
• External relationship: Flexible connection,
thereby can target customers across
horizontal.
• Horizontal communication by opening
access to the platform across the
corporation.
• Expanded learning ability to develop apps
and increased innovation horizons.
• Customized services for customers
promising more adaption & mobility.
• Diversified partners opened.
• Integration & synergizing ability
embedded in the platform.

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Internet Of Things – AS-IS / TO-BE Analysis
Business Strategy – (Part 3 / 3)
Strategy 6 C
Framework to
measure
Value
Network
AS-IS TO-BE
Business
(Transforming
from business
model of a
corporation to
Ecosystem
Business
Model)
Without IOT With IOT
Change
Dimension
• Addition of more features (business
& IT) following the traditional
business/IT approach in the vertical.
• The way interaction takes place
among the customers and the
stakeholders is mostly in feedback
format.
• Platform pattern shift from closed to
open, as IoT platform would demand
change in business approach across the
corporation for complete value creation.
• Interaction pattern shift between focal
firm and stakeholders.
• Co-evolve with the customers.

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Internet Of Things – AS-IS / TO-BE Analysis
IT Strategy
Strategy AS – IS
(without IOT)
To-BE
(With IOT)
IT
1. Equipment to
enable the
exchange of
information
between sensors,
the cloud and
devices.
2. Applications
that facilitate the
transmission,
storage and
analytics of
sensor-collected
data.
Infrastructure
Currently the IT infrastructure is limited to its
department or sector for which it is used.
Infrastructure
Overall IT infrastructure will be needed to be
expanded/integrated to include IT resources from
various sectors of the corporation. Solutions such as
IaaS,PaaS and SaaS
Data Analytics
Data Analytics is done on a smaller scale just to
support the business, finance or support data,
most solutions are in-house infrastructure BI
applications.
Data Analytics
Data Analytics will be used extensively as there will be
vast data due to influx of sensors in the system.
Solutions of moving towards a cloud-based data center
or analytics-cloud/analytics-as-a-service will have to be
explored, device-based apps development.
Networking
Most of the enterprises have software-defined
networking wherein the underlying network is
abstracted just for applications and network
services.
Networking
Networks would needed to be upgraded to become
more agile to capture real-time analysis from sensors.
Data will have a huge impact on networks, one solution
can be distributed data centers.
Security
Due to low connectivity among different
applications/services the security threat is
lowered and only traditional ways are
implemented when it comes to IT/data security
Security
Hyper-connectivity between machine-to-machines
posses the need to think of various security steps for IT.
Integration layer of operations technology and IT would
demand security.

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Competitive Rivalry
Threat : High
•New avenues for product
differentiation and value-
added services
•Capture existing customer
segments by provided
specific customized solution
Porter’s Five Forces
Buyers
Suppliers
Threat : Medium
Threat : Low
Substitute Products
Threat: Medium
Threat: Medium
New
Entrants
Bargaining Power of Buyers
• Product Differentiation
• Storage and analysis of
products data
• After-sales service
• Supply chain management
Threat of New Entrants
• New Entrants could provide
better products/services with
implementation of IoT.
• Demand for IoT products
increases when it is cross-
sectional
Bargaining Power of Suppliers
• Limited suppliers for customer
specific solutions
• New technology/skills are
invested to build IoT solutions
Substitute Products
• Superior products
• Capture existing customer
segments
• Product-as-a-Service business
model could substitute
traditional products

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SWOT Analysis(As-Is)
Strengths
• No data security risks
• Less complex systems
• No radical change in organizational
structure, processes, physical
infrastructure
Weakness
• No centralized management of
systems across organization
• Labor costs
• Inefficient tracking/monitoring
of inventory/assets
• No diagnostic, predictive
maintenance
Opportunities
• Focus more on brand-awareness
Threats
• No edge over competition
• Customer Dissatisfaction
• Lack of demand for existing
products
• Limitations in achieving
Operational Excellence

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SWOT Analysis(To-Be)
Strengths
• System interoperability
• Monitoring, Control, Optimization
and Autonomy
• Productivity gains, operational
excellence, reduced labor costs
• Cross-functional collaboration, data
resourcing
Weakness
• Data Security and Privacy
• Compatibility among products of
different standards
• Data sharing among companies a
sensitive issue
Opportunities
• Integrating Data analytics
provides deeper insights
• Focus on Customer Intimacy
• Capture new market and customer
segments
• Reshape value chain of
organization/eliminate
silos
Threats
• Vulnerability to hacking
• Huge Investments as
organization processes, technical
infrastructure needs to be
changed
• Government regulations on Data
Usage

19. 19
ANS-OFF Matrix
Existing Products New Products
Existing
MarketsNewMarkets
Product Development
• Quality Products at competitive
prices
• Analysis of customer’s historical
data identifies new requirements
• Product as a Service
• Low-Cost variability
Diversification
• Join forces with torch-bearers of
other industries to gain new
segments
• Customized products to serve
different customer segments
• Provide After-Sales services
Market Penetration
• Identify customer requirements,
provide customized incentives
• Operational Excellence provides
competitive advantage
• Increased market share
Market Development
• Identify new customer and
market segments
• Expand geographically
• Identify new distribution
channels to supply products

20. 20
STROBE-STROIS Matrix
Business Strategy Led Organization Led
Conservative Technology Led
STROBE
Strategic
Operation
of Business
Enterprise
STROIS Strategic Orientation of ISLOW
HIGH
HIGH

21. 21
Fish-Bone Matrix (As-Is)
Cost Privacy & Security
Efficiency
System Maintenance
Labor Force
Cost
Operating Cost
Time
Cost
No Network Risk
Lack Of
Connection
More
Processing
Cycles
Decentraliz
ed
Management
Expensive
Maintenance
Less
Efficient
Time
Consumin
g
WITHOUT IOT

22. 22
Fish-Bone Matrix (To-Be)
Cost
Privacy & Security
Efficiency System Maintenance
Reduced
Labor Force
Cost
Reduce
dTime
Cost
Focussed Risk
Well Connected
Systems
More Efficient
Centralized
Management
Periodic
Maintenance
Professionall
y maintained
USING IOT
Virtual
Operation

23. 23
Gartner Hype Cycle for Emerging
Technologies

24. Gartner Hype Cycle for Internet of
Things

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Risks & Challenges with IOT
• Lack of Security
• Lack of Privacy
• Storage Issues
• Energy demands
• Industrial IOT must Be Built for Maintenance and Updates

26. Alternatives
• No alternatives have been in the market since IOT is making
organization, efficient.
• Few organizations want to stick around with the manual tasks which has
less efficiency and higher manual cost.
• Small scale organizations don’t want to implement because of high
complexity and high investment.

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Future Scope (Recommendation)
• IoT and wearables create a higher level of personalization
• Consumer-facing industries will be changed by IoT
• IoT gets accountable
• The “Edge” will become a huge growth market
• “Big Data” IoT analytics will generate “Big Revenue”

28. Conclusion
• Closer to being implemented
• Manufacturers and agencies are building small scale versions
• Legal and security issues are present so yet to make a greater impact.

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References
[1]http://www.datamation.com/data-center/the-internet-of-things-7-
challenges.html
[2]Harvard Business Review Article:How Smart Connected Products Are
Transforming Competition
[3]Harvard Business Review Article:How Smart Connected Products Are
Transforming Companies
[4] http://theiotportal.com/2016/10/10/10-innovative-applications-of-iot-3/
[5] http://www.intelligenthq.com/technology/guide-internet-things-part-1-
definition-concept/
[6]https://hbr.org/2014/10/the-sectors-where-the-internet-of-things-really-matters
[7]http://www.plasmacomp.com/blogs/top-iot-vertical-markets
[8]http://www.gartner.com/newsroom/id/3412017