What is the Internet of Things?
The brief history of IoT
The term Internet of Things is 16 years old. It was first coined by Kevin Ashton in 1999. Back then he was working at Procter and Gamble responsible for supply chain management. At that time the internet was a brand-new buzzword.
"I could be wrong, but I'm fairly sure the phrase "Internet of Things" started life as the title of a presentation I made at Procter & Gamble (P&G) in 1999. Linking the new idea of RFID in P&G's supply chain to the then-red-hot topic of the Internet was more than just a good way to get executive attention. " – Kevin stated in an article in 2009."
Whereas the actual idea of connected devices was not completely new. It used to be called “pervasive computing” or “embedded internet”. The idea of adding sensor and intelligence to basic objects was discussed throughout the 1980s and 1990s, but apart from some early projects -- including an internet-connected vending machine -- progress was slow simply because the technology wasn't in place. The idea of connected devices including sensors and was discussed throughout the 1980s and 1990s (or even earlier), but back then technology was much simpler.
Although it took at least two decades for the technology to catch up with the vision.
In 2005 the UN's International Telecommunications Union ITU published its first report on the topic:
"A new dimension has been added to the world of information and communication technologies (ICTs): from any time, any place connectivity for anyone, we will now have connectivity for anything.” – they wrote. “Connections will multiply and create an entirely new dynamic network of networks – an Internet of Things"
According to Cisco Internet Business Solutions Group (IBSG), the Internet of Things was born in between 2008 and 2009 at simply the point in time when more “things or objects” were connected to the Internet than people. Citing the growth of smartphones, tablet PCs, etc the number of devices connected to the Internet was brought to 12.5 billion in 2010, while the world’s human population increased to 6.8 billion, making the number of connected devices per person more than 1 (1.84 to be exact) for the first time in history.
According to Gartner Inc., half of major new business processes and systems will incorporate some element of the Internet of Things (IoT) by 2020.
This means that it will be applied in basically every industrial segment.
Digitally connected devices are fast becoming essential elements of our daily lives. While the adoption of the Internet of Things (IoT) will be profound, it is likely to develop slowly. The first reason that explains this fact is the lack of standardization.
How IoT will help your business grow
There is no ultimate definiton for IoT at all, because it is a constantly changing and evolving set of technologies.
IoT 1.0 | DEVICES NETWORKING
At the beginning, it used to mean a device that includes sensors, networks and low-power MCUs.
IoT 2.0 | ANALYZING DATA
Seeing the bigger picture, it is more like a complete system of the data collector hardware, the data processing software, the cloud service and the analytics behind it.
IoT 3.0 | CONNECTED EXPERIENCE
The missing element in IoT 2.0 is the customer, partner, supplier, employee, and any other stakeholder involved in the end-to-end process and outcome. IoT 3.0 closes the loop by connecting a device IoT platform to a business-engagement engine to drive actions and measurable outcomes.
If you enrich device data in near real time with context data, you have a very powerful set of data from which you can build business rules to generate actions and measurable outcomes. I am sure you can think of many more examples of highly interesting rules that could be created with this new rich data set.
IoT 4.0, which is already emerging, will add machine learning and artificial capabilities to the connected-customer value chain to make customer experiences truly seamless and part of everyday life.
The challenge? According to surveys, 75 percent of IoT projects will take up to twice as long as planned.
The biggest concern against IoT is the lack of standardization. It makes the adoption and development process slower and holds several threats. An even bigger risk is sending sensor data directly to the cloud or datacenter because it can create latency, drive costs, and can open up security risks.
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