One of the most important applications of the IoT is smart grid system

Bulk impact comes from reduction of peak usage

o Requires utility companies to buy electricity at highest rates and invest
in extra capacity
IoT would allow utility companies to power down high-use systems during
peak demand or
Consumers can power down their own systems based on real-time data from
the utility companies
Smart grids help get real time information about state of the grid instead of
using people
o Reduce outage times and decrease electrical waste

Another application is the use of sensors to monitor and optimize traffic

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Adjust traffic light timing

Change routes for public transport
Issue alerts
Enable the imposition of congestion charges
o Stockholm tax levied on vehicles entering and exiting central part of
city
o Highly effective in reducing congestion and turned some motorists to
public transport
o Public attitude has changed from opposed to in favor

Waste Management optimization

Best examples are Cincinatti and Cleveland

Both cities put RFID codes on their waste bins to track weight, time, and GPS
coordinates
Enabled pay as you go program by measuring weight led to big decrease in
waste and increase in recycling

Another application cities can use as a result of IoT is smart water infrastructure

Sensors allow companies to track conditions, manage water pressure and

leakages
o Citiies like Beijing have reduced leaks by 40-50% using this technology
Consumer side - Smart meters allow consumers to track their usage and
monitor leakages of their own
o Cities like indianpolis and new delhi have employed this technology
and have seen water usage decline by 5-10%

Huge economic impact

Smart electrical grid system would create 200-500 billion in value according
to McK
o Reduce peak demand by 2-4% and overall demand by 1-2%

Traffic, waste management, and smart water applications would create 100300 billion in value annually by 2025

Barriers to adoption

Fdsaf
Political will some policies that may be beneficial in the long run may be
initially unpopular
o Tough to pitch such high cost projects when benefits may take a long
time to realize
o Coordination installing a smart grid system takes not just local
approval but probably regional and national approval more important
in places like EU

Conclusion

Birds eye view of IoT but its tough to envision all the different ways it will
change how business and society interact
Environmentally
o Good in that it limits waste, increases efficiency and lower our
potential dependence on fossil fuels
o Smart grid system will enable the integration of renewable energy
sources and could be a real game changer for the industry
Privacy
o One of the biggest issues today and will ocntinue to be
o Trove of information about our lives are being handed over to
companies and governments
o Big Brother?
o Security and network reliability will be key in the face of potential
hackers
Social impact
o Potentially Displace workers
o Effectively robots and objects will replace many workers in a number of
industries and its unclear if new jobs and industries will be able to
absorb that impact
Economic impact
o Huge economic impact between 2.7 trillion to 6.2 annually according to
McK
Overall its going to be one of the defining trends over the next decade and
will have a tremendous impact