Internet of Things - Integrating the Real World - MIS Lecture 8 Prof. Dr. Elgar Fleisch 1
Learning targets Understanding the technological vision of the Internet of Things Understanding its business impact, potential and limitations 2
Agenda 1. The technology developments towards the Internet of Things 2. An infrastructure example 3. The general business impact: High Resolution Management 4. Examples from industry and labs 5. Lessons learned 3
The technology developments towards the Internet of Things 4
Brief history of MIS phase 4 & 5 Phase 1 Phase 2 Phase 3 Phase 4 Computerization of individual functions (support of island functions such as invoicing) i i Computerization of functional areas (integrated functional areas, such as financial i accounting) Design of integrated processes (internally from customer to customer, such as e.g. order processing) Individual 1 : 1 integration of crossenterprise processes Supplier Supplier Supplier Supplier Customer Finance Finance Finance Finance Finance Sales Sales Sales Sales Sales Production Production Production Production Production............... Business unit / Enterprise Integration via computerization Function / process Output Network infrastructure Phase 5 Trust Transport Payment... Consistent m : n integration of crossenterprise processes with the establishment of a networking infrastructure 5
What is the next integration step?? 6
Recent advances in miniaturization, sensor & communication technology, and new materials drive for a new computing paradigm (4) Smart Things Miniaturizatio on and cost reduction (1) Mainframe (2) PCs (3) Mobiles / Smart Cards Time 7
The Internet networks billions of digital devices 6500 3300 1200 27 85 100 120 220 Data PDAs Web Cams Digial MP3 PCs Cell Phones Humans Servers Cameras Players Data Source: Wired 7/2008 8
The Internet of Things potentially adds 1000 times more things 10000000 p.a. 27 85 100 120 220 1200 3300 6500 Data PDAs Web Cams Digital MP3 PCs Cell Phones Humans Things Servers Cameras Players Data Source: Wired 7/2008 9
The mobile phone is the mass computer of the future Technology High power, low power Sensors (accelerometer, camera, GPS, NFC, etc.) Interface (youth-proof) Open standards (Apple, Google etc.) Impact 1985 Extend Ego Harry Potter-Effect Mind-Changer 10
Low cost minicomputers... 11
... with mobile communication capabilities... 12
link real world objects automatically with the Internet Virtual world Real world 13
Eventually every real world object can become part of the Internet Cost & number of min nicomputers Number Cost Time 14
The Internet of Things emerges. It expands the Internet to the real world Information systems & the Internet data entry Cost of d Punch card Keyboard Barcode Manual measuring Physical world 15
Yesterday's Computers Filled Rooms Source: Prof. F. Mattern, ETH Zürich 11/16/2008 Prof. Dr. Elgar Fleisch D-MTEC, Copyright ETH Zürich 2008 16
Yesterday Yesterday's s Computers Filled Rooms - So Will Tomorrow Tomorrow's s. 00:45 1 2 3 4 5 6 7 8 9 0 Source: Prof. F. Mattern, ETH Zürich 11/16/2008 Prof. Dr. Elgar Fleisch D-MTEC, Copyright ETH Zürich 2008 17
Today, the Internet is an isolated island of computers and mobile phones. It connects to the real world only via manual input, like in stone age of computing. 18
The next level of business innovation is driven by the automatic integration of real world items into the Internet. Smart items become nerve endings and report to anywhere 19
An infrastructure example 20
Many infrastructures and technical concepts implement the vision of the Internet of Things. One of it, the EPCglobal Network, ORGANIZATION A Internal Systems (ERP, WMS) EPC Reader Mgmt EPCIS EPC Middleware Readers Security Authentication Authorization Discovery Services (Search, ONS, Event Registry) EPCIS EPC Middleware Readers ORGANIZATION B Internal Systems (ERP, WMS) EPC Reader Mgmt Tagged Units Moving Through the Supply Chain Source and (c): EPCglobal, for further information please see also www.fosstrak.org 21
... has the adoption lead in industry 22
The general business impact: High Resolution Management 23
So what? You only can manage what you can measure! Florence by GPS, Source: OCTO Telematics 24
Today s computers have no eyes and ears and thus a rather blurred, low resolution mapping of the physical world they are supposed to manage 25
Better measuring instruments change the way we see, understand and influence the world 26
Just as X-Rays and ultrasound advanced medicine, and as microscopes changed physics, biology, material sciences etc 27
machine sensing advances ances the way... 28
we do business 01.23G3D00.8886A3.365000A03 01.23G3D00.8886A3.365000A03 01.23G3D00.8886A3.365000A04 365000A03 365000A04 01.23G3D00.8886A3.365000A03 01.23G3D00.8886A3.365000A04 01.23G3D00.8666A3.000000A04 01.23G3D00.8886A3.365000A04 01.23G3D00.8666A3.000000A04 01.23G3D00.8666A3.000000A05 01.23G3D00.8666A3.000000A04 01.23G3D00.8666A3.000000A05 000000A05 01.23G3D00.8666A3.000000A05 01.23G3D00.0111A3.000000A05 01.00555A2.8666A3.000000A05 01.23G3D00.8886A3.365000A03 01.23G3D00.8886A3.365000A03 01.23G3D00.8886A3.365000A04 365000A03 365000A04 01.23G3D00.8886A3.365000A03 01.23G3D00.8886A3.365000A04 01.23G3D00.8666A3.000000A04 01.23G3D00.8886A3.365000A04 01.23G3D00.8666A3.000000A04 01.23G3D00.8666A3.000000A05 01.00555A2.8346A3.000000A05 01.23G3D00.8666A3.000000A04 000000A04 01.23G3D00.8666A3.000000A05 000000A05 01.23G3D00.8666A3.000000A05 29
Examples from industry and labs 30
Galleria Kaufhof of Metro taggs its Gardeur brand and wants to know: How would item tagging 31
change retail really? 32
How do consumers behave? 33
Libraries around the world are tagging media. 34
The vacuum cleaner and the telephone 35
Tanimura & Antle, Del Monte, A. Duda & Sons, and Tyson Foods track perishable goods Unbroken Broken for 9 hours 36 S J P E d U i it f Fl id
to increase shelf life time, enhance customer experience, reduce write-offs, and prevent non-safe food to enter the distribution chain Models predicting quality Source: J. P. Emond, University of Florida 37
Which one is a fake? 38
Who cares about handbags? ource: Pfizer So Source: Valerio Reggi, Organisation Mondiale de la Santé Source: Valerio Reggi Source: Tina Turdziladze 39
Communicating objects help to increase patient safety by preventing medical errors e.g. in surgeries by turning dabbers and sponges into smart objects Surgical objects are left in patients in 0.02 1% 02 of surgical procedures Status quo: the sponges are counted manually before and after operations and searched using X-ray ClearCount C Medical Solutions provides tagged surgical sponges Tagged sponges are easy to count before and after the operation Used sponges are discarded into a bucket that is connected to an RFID reader Tags of retained sponges can also be read, though this is not yet 100% reliable retained surgical sponge ClearCount Medical Solutions in RFID Journal, June 2007 Source: www.health.state.ny.us 40
It eases the collection of life signals and eventually the change of patient behavior http://www.sensatex.com Tumble Protection (e.g. by a Wobble Sensor) Medication Service Fitness Service Get-home Service (e.g. Sleep Monitor) Source: Courtesy of Hubert Österle 41
Wafer-Fab automation at Infineon: the production of logic chips is complex and semi-structured. A hard automation would not work Investment ~1 billion 24x365 production ~x000m2 clean room ~2000 employees ~10 billion chips per year, ~500 mio sales Source: Courtesy of Infineon and Intellion.com 42
Instead, Infineon went for smart automation 600 machine tools, 400 process steps per lot, loops, manual transport Source: Courtesy of Infineon 43
Spare parts replenishement re-invented for example at SFS Source: Courtesy of Intellion.com 44
Fraport uses smart things to manage service providers Facility Management Back Office Plan maintenance activities Distribute work assignments Synchronize data Settle payment Archive maintenance reports Service Technician (internal or contractor) Download maintenance orders to mobile device Perform authentication Locate maintenance object Maintenance feasible? Identify object and open maintenance order Perform maintenance activities Report maintenance activities Close maintenance order Obtain confirmation of activities Fire Shutter RFID tag Fire shutters Fire door Smoke alarms (tubes, rooms) Conveyor systems Escape routes Quality assurance cleaning services 45
The Internet of Things enables the direct bundling of any physical product with its digital information and services Product information is physical digital bundled d e.g. Packaging Internet t of Things unbundled with physical product e.g. Catalog e.g. eshop Internet 46
Product information becomes limitless Discovery Service PIM-System 3. Product information 2. ID, IP 1. ID 47
und finally useful Allergy Assistant Political shopping Product rating Source: Courtesy of Robert Adelmann, ETH Zurich 48
Source: Courtesy of Robert Adelmann, ETH 49 Zurich
Boost revenues via talking products ID Reader Shaves better with new blade Shows red, yellow, or green traffic light, or low energy display as impulse for changing / reordering blades, e.g. via Shaves Best With New Blade, or For New Blades Call 1-800-New-Blade 50
Generates tribe feelings 51
The smart doll 52
Self-counting, -cheating detection, and -training playing cards will kill or boost fun Smart playing cards 11/16/2008 Prof. Dr. Elgar Fleisch D-MTEC, Copyright ETH Zürich Source: 2008 Courtesy of Prof. F. Mattern, ETH Zurich 53
How to use ICT to enable energy efficient behaviour? DIY Kyoto Static! Landis+Gyr FRIDGE FREEZER M/WAVE OVEN W/WASH D/WASH KETTLE Start HEAT OTHER 1,65 EUR 12,76 kwh Back Bits to Energy Lab MIT Media Laboratory, Waterbot ambientdevices.com 54
Any impact on the insurance industry? 55
Any impact on the insurance industry? 56
Any impact on the insurance industry? 57
change of behavior 58
... Prevention, pricing, new services... 59
Lessons learned 60
Summary The physical and the digital world merge The mobile phone is the computer of the future The will be way more smart things and Natels linked to the Internet than computers Technology can be forecasted, applications not Over- and underestimation of developments can damage companies and economies significantly Go for open innovation 61
We are still at the very beginning Industrial robotic In production environment since 1960 Today 800.000 robots world wide; market 5.6 bio USD with 7% average growth rate Growth 2002 -> 2003: 26% Cost decline 2002:1990 -> 1:5 Home robotic 2006 home robotic market > industrial market Vacuum cleaner, lawn mower, surveillance, toys 62
Reading material Fleisch, E. and Dierkes, M.: "Ubiquitous Computing: Why Auto-ID is the Logical Next Step in Enterprise Automation", 2003 Thiesse, F. and Michahelles, F.: "An Overview of EPC Technology", 2006 www.autoidlabs.org www.i-lab.ch www.bitstoenergylab.ch 63