4/9/2019 IoT for Consumer and Businesses | Examining the Business of IoT | DEV296x Courseware | edX

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IoT for Consumer and Businesses

In this topic, you'll learn:

The di erences between consumer and business IoT solutions

Ways that consumers are using IoT

The way data is treated in consumer and business scenarios

In the previous topic, we took a high-level view at how IoT solutions are being used in the near term to how
they might evolve in the long term. In this topic we'll take a closer look at business and consumer scenarios
and sort out the similarities and di erences between the two.

Consider how you might answer the following questions:

What makes one or more connected devices an IoT implementation?

What is the di erence between consumer devices and the devices used in an IoT business implementation?

Let's take a look a the rst question - what is the di erence between a connected device and an IoT device?
For example, a personal computer generally is connected to the Internet. Does that make it an IoT device? Is a
smartwatch or door lock that both have internet connectivity IoT devices? As we saw in a previous lesson,
de nitions can be hard to come by but its possible to put some boundaries around devices that should be
included under the umbrella of IoT and those that should not.

An IoT Device
Here are some criteria that a device should meet to be considered an IoT device. Many of these properties are
de ned in the IEEE white paper on IoT and con rmed from other sources.

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1. Connected to the Internet. The most obvious criterion is that the device has a connection to the internet
with a unique identi er, and two-way communication. Both of these properties are important for a device to
be considered a part of an IoT system. The device has to be unique to ensure secure communications with
both the server and with other devices and the device has to be able to consume and deliver data. A
primary value proposition for IoT is data collection as well as consumption.

2. Secure. Being able to uniquely identify a device on the internet or within an IoT ecosystem is one aspect of
security but making a device secure also means it's resistant to being hacked (both the hardware and
software), uses encrypted communication protocols, and is immune to mimicry either by an alternate
hardware device or a virtual device.

3. Smart Features. This simply means that the device must have sensors or hardware that enable it to collect
speci c data based on events (like smoke in the air or a light being switched on or a key being turned).
There is an implication that the device should be able to do this without user interaction so it has an
“embedded intelligence.”

4. Communication Capabilities. The device should have the capability to communicate not only with cloud-
based services but with other devices.

5. Con gurable. The device should be remotely con gurable or have the ability to self-adjust its con guration
based on changes in the ecosystem. This includes the ability to automatically install updates, modify sensor
receptivity, repair problems, and modify energy consumption among others.

6. Programmable. Like connectivity to the Internet, this should be a basic function of any connected device
but certainly is true of IoT devices. The main idea here is that the function of the device should be able to be
modi ed without having to make changes to its hardware. This may mean that a device has a number of
sensors that could be activated or deactivated by software or, if a single-purpose device, the features
should be able to be modi ed by software to accomplish a di erent task (for example, a thermostat that
can deliver outside temperature readings from a service vs. taking the internal temperature readings from a
sensor).

These probably wouldn't be considered “core” features but here are other properties to consider when
de ning a device as an "IoT device."

Replaceable. In many scenarios, when an IoT device fails (for example, a sensor on an airplane engine or
wind turbine), the device should be able to be replaced and it's entire rmware and software settings
loaded onto the device quickly and easily. This could mean that every programmable feature of the device
should be able to be stored in the cloud and downloaded to a replacement device.

Environmentally Flexible. Depending on the scenario, the device should be able to maintain power, collect
and store data, and smartly upload stored data in the event of a power outage, and/or loss of Internet
connectivity.

Consumer and Business Implementations

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Now let's consider the second question - what is the di erence between consumer devices and the devices
used in an IoT business implementation? The di erence between a consumer scenario and a business
scenario often comes down to how the devices are being used and why. Or viewed a bit di erently, the goals
of the implementation and the data being generated.

When we consider the features of IoT devices above, some may be more important in business scenarios and
others take more prominence in consumer scenarios. For example, designing a device so it can easily be
replaced may be more important in mission-critical business scenarios than it would be for a consumer device
that checks the weather or turns on your lights.

Let's take a look at a couple of scenarios and how they might di er. Microsoft created a case study for an IoT
implementation for BaxEnergy–a company that supplies analytic and optimization solutions for energy
companies. While this white paper largely is about data ingestion and processing, it illustrates features of an
IoT solution that is relevant for this business but may not be relevant for a consumer device. Microsoft
outlines the following bene ts of IoT in three distinct areas.

Data Ingestion
This area de nes how sensors collect and queue data for deliver to the database. Speci cally, the Microsoft
solution:

No complex setup for data acquisition via VPN

Workload reduced to read/write operations by establishing queues

Data ow divided into hot and cold paths

Asynchronous model allows for temporary storage of the data without putting more pressure on the
already busy databases

Data in Motion
This category de nes how the solution improves real-time monitoring of the energy plant. The article notes
the following improvements:

Visualizing real-time monitoring without accessing the database

Presenting the data in nearly real time

Portal still allowing for execution of queries on historical data

Immediate noti cation as soon as the device is not sending any data

Messaging and Analytics

This category describes how incoming data is analyzed work ows are triggered based on certain event
parameters.

Creation of automatic work ows and additional services

Instantaneous noti cation to wind farm operators so they can take immediate action

Cost-e ective feature

Real-time data analytics

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The advantages provided to BaxEnergy from this particular IoT implementation may be true of many business
scenarios. Real time monitoring and reporting, real-time analytics, problem reporting, and asynchronous data
communication are essential in many business contexts. These probably wouldn't be true in most consumer
contexts.

For example, taking the paradigm case of a connected thermostat, getting real-time information about energy
usage may not be that important. A customer may only need (and actually prefer) weekly or monthly reports
so the data the device is collecting doesn't need to be analyzed in real time or available immediately after it's
collected. Similarly, the home thermostat may not need to be able to initiate additional work ows when
speci c events occur or queue data if the power goes out.

Consumer versus Business Goals for IoT

Consumer Products and IoT

Individual consumers implement cloud connected devices (such as doorbells, thermostats, and even
refrigerators) in order to make their life easier, more comfortable, or more secure. Consumer devices in the
home are not typically being used for the same purpose as an IoT device implemented in a business scenario.

While IoT in the consumer space is still fairly nascent, there regularly are new examples of the technology
being used to improve customer experiences and expand product features. Here are a few scenarios (some
with which you may already be familar):

Connected Refrigerators. The Samsung “Family Hub” line of refrigerators includes a large, touch screen
that enables customers to more easily track their food inventory through the use of interior, web-enabled
cameras, an easy-to-use shopping list, calendaring and TV mirroring features. While the element of data
collection and analysis isn't central to this IoT solution, the refrigerator is an early look at the potential for
connected appliances.

Connected Doorbells and Cameras. Many companies have gotten into the consumer doorbell and camera
business. The Ring system and Google's Nest Hello device are examples. These doorbells record and store
video and enable two-way voice and one-way video calling for people at the door. The Nest device will do
facial recognition and use AI to determine which type of object it detects (car, person, animal).

Connected Thermostats. As we mentioned earlier, the connected thermostat is probably the most widely-
used example of an IoT consumer device most likely because it was one of the rst connected devices to
check all the boxes in terms of using an IoT architecture. The most famous device is the Nest Thermostat
but there are others. Microsoft recently released its GLAS thermostat in partnership with Johnson Controls
and Honeywell has a line of connected thermostats. These devices enable customers to view and control
their indoor temperature anywhere using a mobile device and an internet connection, set a heating and
cooling schedule, view historical data on their home's temperature and energy consumption, and even get
alerts when their heater's lter needs to be changed.

There are many other connected devices coming to market, that range from practical to weird. But the
possibilities are nearly endless. Consumers are moving from a mindset of experimentation to anticipation that
will soon evolve into expectation as connected devices enable customers to do more.

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Business Goals and IoT

In a way, business goals for IoT are simple compared with consumer goals. Businesses tend to implement IoT
solutions in order to be more pro table, to increase safety for their work force, and to more easily comply
with government regulations in order to create a better business environment. Pro tability can be realized
either directly through cost reductions or indirectly through competitive advantage. For example, businesses
can use IoT to reduce their manufacturing or operating costs, which increase pro ts directly. Or, a business
could use IoT to provide customers with improved service, resulting in increased market share (and overall
pro ts). In most cases both the business and their customer bene t.

Business goals for IoT focus on improvement in one or more of the following areas:

Product Quality and Extended Product Lifetime

Service Reliability and Uptime

Operating E ciency

Workforce safety

Governmental compliance

We've been looking at speci c business-focused scenarios for IoT solutions but you can read more at the
Microsoft IoT site to see examples of how industry and vertical lines of business are using the technology.

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