I've been involved in hooking up things like light bulbs, refrigerators, HVAC, security, etc. to the internet ever since Ken Oshman came up with the bright idea for a company called, Echelon. (That would turn the dial back to a breath-taking 1989, dear.)
Anyhow, the McKinsey Quarterly has now had sufficient time to ruminate on the topic and brings their thoughts forward to us.
Here are some of their pearls of wisdom:
But the predictable pathways of information are changing: the physical world itself is becoming a type of information system. In what’s called the Internet of Things, sensors and actuators embedded in physical objects—from roadways to pacemakers—are linked through wired and wireless networks, often using the same Internet Protocol (IP) that connects the Internet. These networks churn out huge volumes of data that flow to computers for analysis. When objects can both sense the environment and communicate, they become tools for understanding complexity and responding to it swiftly. What’s revolutionary in all this is that these physical information systems are now beginning to be deployed, and some of them even work largely without human intervention.
...
The widespread adoption of the Internet of Things will take time, but the time line is advancing thanks to improvements in underlying technologies. Advances in wireless networking technology and the greater standardization of communications protocols make it possible to collect data from these sensors almost anywhere at any time. Ever-smaller silicon chips for this purpose are gaining new capabilities, while costs, following the pattern of Moore’s Law, are falling. Massive increases in storage and computing power, some of it available via cloud computing, make number crunching possible at very large scale and at declining cost.....
Companies can begin taking steps now to position themselves for these changes by using the new technologies to optimize business processes in which traditional approaches have not brought satisfactory returns. Energy consumption efficiency and process optimization are good early targets. Experiments with the emerging technologies should be conducted in development labs and in small-scale pilot trials, and established companies can seek partnerships with innovative technology suppliers creating Internet-of-Things capabilities for target industries.[more]
