Does the Internet of things need a killer app?

Cisco System’s search for an Internet of Everthing killer app may not be necessary.

Today was the opening of Cisco System’s Internet of Things conference in Barcelona, Spain and in the morning sessions there was constant question of what will be the killer app for this range of technologies.

A killer app is the application that drives adoption of a new technology – for the Personal Computer, it was spreadsheet programs that made systems attractive to company accountants and from there the PC made its way into the workplace.

Right now, you’d have to say parking systems are the great hope for the industry and this makes sense in that it’s an easy to explain to the general public and it helps solve an ongoing problem for local governments.

But does the Internet of Everything really need a killer app?

The Internet of everything is the coming together of various different technologies — cheap processors, pervasive internet, cloud computing and big data are all reasons why the concept has taken off.

In fact, many of the applications aren’t new, telemetry systems have been around since the early days of networks and even parking technologies like number plate recognition and space meters have become common over the last decade.

Across industries like logistics, mining and agriculture the Internet of Things or Machine to Machine (M2M) communications has been steadily growing with each new generation of connected equipment.

The difference with the next wave of technology is that devices are smarter and able to talk to each other which is where companies like Cisco see the opportunity of tapping into what they believe will be a 14 trillion dollar market by the end of the decade.

What concerns many in the industry is the risk of the technologies become proprietary islands where each major company has its own standards that don’t talk to the others.

The risk of vendor lock in is probably greater than the search for a killer app, indeed there’s no particular reason why anyone should be waiting for a compelling application to come along.

Instead of waiting for a killer app it’s probably better for industries to find their own uses for these technologies and steadily implement them.

While Cisco are almost certainly right about the impact of the Internet of Everything, it’s one of these pervasive technologies that changes everything in ways that aren’t immediately apparent like the motor car or the internet itself.

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Lessons in crowdfunding from an unsuccessful Kickstarter campaign

Crowdfunding is in its early days and Moore’s Cloud founder Mark Pesce explains some of the lessons we have to learn about this new way of raising capital.

“I’d rather eat a bullet than do a Kickstarter campaign again,” says Moore’s Cloud founder Mark Pesce in the latest Decoding The New Economy video when asked about crowdfunding his project.

Moore’s cloud is an internet of things company that focuses on lighting, “we think it’s interesting and something that expresses emotion” Mark says.

With their first project, Moore’s Cloud looked to raise $700,000 to build their first project but fell well short of their target.

Falling short lead to Mark and his team executing a classic business pivot from a static lights to Holiday, a system of intelligent fairy lights.

“We took exactly the same technology and put it into a different form factor,” said Mark. “It’s as if we took the light and unwound it.”

The failure of the Kickstarter campaign gave the Moore’s Cloud founders an education on how crowdfunding works.

Customer focused from day one

An important aspect of crowdfunding is it’s very customer focused. From day one of the campaign, the venture has to devote resources on relations with those who’ve pledged a contribution.

Most startups don’t have those resources, or the time and skills, to deal with those relations.

“People say it’s a better way of getting investors. I would have to say ‘it’s not better, it’s different.'” Mark says about crowdfunding.

The psychology of investors

One of the differences is the psychology of investors. Mark was urged by the CEO of Indiegogo, Slava Rubin, to set a low target as participants like to back successful campaigns.

“There’s a whole bunch of psychology I didn’t understand going in,” says Mark. “If we’d had a goal of $200,000 we probably would have filled it in the first two weeks.”

“Once a campaign is fully funded, it tends to get overfunded.”

A truism of business is that banks will only lend to you when you don’t need the money and it strangely appears the same thing applies to crowdfunding.

We’re in the early days of crowdfunding and there’s more to be learned about the way it works and for which ventures the fund raising technique works best.

The experience of campaigns like Moore’s Cloud are part of how we’ll discover the nuances of crowdfunding and the psychology of the crowds that contribute.

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Breaking the break-fix business model

Fixing broken products was a profitable business for many companies, the Internet of Everything is changing that industry model.

One of the most profitable areas for many companies has been in fixing broken products, now the internet of everything promises to put an end to that business model.

‘Break-fix’ has always been a good profit earner with business ranging from construction companies to washing machine manufacturers making good money from fixing failed products.

Speaking at a lunch in Sydney earlier today GE’s CEO of Global Growth and Operations, John Rice, described how the Internet of Everything is changing in the industrial landscape.

One of the big business changes Rice sees is in the ‘break-fix’ model of many industrial suppliers.

“We grew up in companies with a break fix mentality,” Rice says. “We sold you equipment and if it broke, you paid us more money to come and fix it.”

“Your dilemma was our profit opportunity,” Rice pointed out. Now, he says engineering industry shares risks with their customers and the break-fix business is no longer the profit centre it was.

Goodbye to the TV mechanic

This is true in many other industries as products become both more reliable and less economical to repair – the local TV repairman has largely vanished and the backyard computer support businesses are going the same way.

For many businesses, this means a change to how they service their customers and the nature of their operations. For many, it means close monitoring of their products will be essential to manage risk.

Rice also flagged how grid computing will improve the reliability of equipment and networks citing how giant wind turbine talk to each other.

“Every wind turbine has an anemometer on top that’s used to judge wind speed and direction,” says Rice. “If you had a problem with the anemometer the wind turbine shut down until someone could come out – maybe a week later – to climb to the top of the turbine, diagnose the problem and start the thing back up.”

“Today the technology is such that the wind turbines talk to each other so if you’re in a wind field of thirty turbines you don’t rely on one anemometer,” points out Rice. “This is a very simple example of machine to machine interface.”

Wind turbines and the road toll

Rice’s example of wind turbines talking to each other is similar to Cisco’s scenario of using the internet of everything to reduce the road toll where cars communicate with road signs, traffic lights and each other to monitor conditions on the highway ahead.

Those machines talking together also give early warnings of problems which reduces downtime and risk for industrial users, it also means less money for businesses who’ve made money from those problems.

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Microsoft’s devices and services strategy starts taking shape with the Surface tablet

Does the Microsoft Surface show the company is starting to execute Steve Ballmer’s device and services strategy?

Microsoft’s latest version of their Surface tablet computer is the company’s first attempt at executing Steve Ballmer’s device and services strategy. If the company succeeds, there are some interesting implications for the tablet computer market.

Currently Microsoft is on a worldwide PR campaign to promote their latest range of Surface tablet computers. Last week during the Sydney leg of their tour I had the opportunity for a hands on demonstration of the new devices with Jack Cowett of the product’s marketing team.

The Surface itself is an interesting device with some major upgrades and changes as Microsoft begins to understand the tablet market with the device having more memory, better processors and battery life – although the lack of a cellular version is going to hinder its adoption by the consumer and small business markets.

Devices and services

It’s in the device’s integration with Microsoft’s cloud and communication services where the long term vision, and real story behind the Surface lies.

Most obvious is the bundling of services with purchasers of a Microsoft Surface 2 or Surface Pro getting 200Gb of Sky Drive storage and a year’s free international calls included with the device.

It’s an early taste of how Microsoft can combine services and devices that leverage off their existing position in the marketplace.

While these incentives may not be enough to convince customers that the Windows systems are a better buy than Android or Apple devices, integrating these cloud services makes the computers more powerful devices.

Keyboards as blades

Equally interesting with the Surface, is Microsoft’s devices play with the range of Surface covers that the company is informally calling ‘blades’ – an unfortunate choice of name which will confuse conversations with many IT managers.

Blade covers for Microsoft surface tablets
Blade covers for Microsoft surface tablets

These covers dispense with the usual keyboard electronic layout with an underlying layout featuring a 1024 sensor pad that give the covers more potential than just being keyboards.

As part of the Microsoft marketing push to show this aspect off, the company has released a blade cover with a sound mixer layout and seeded the devices with various DJs under the banner of the Remix Project.

While the blade covers have applications as sound mixers and keyboards, the number and  flexible nature of the 1080 built in sensors will see their application in other areas.

The way businesses have used tablet computers has taken manufacturers by surprise as  Google’s Eric Schmidt told last week’s Gartner conference and Microsoft’s devices open up more industrial applications.

Already the medical industry is applying Windows based tablets as Microsoft are proud to show off.

Should third party developers be able to develop their own skins for Surface blade covers then Microsoft may have a killer industrial device that plugs into existing Windows based networks.

Added to Microsoft’s opportunity is the possibility of plugging Surface devices into the internet of everything giving business users direct access to the machines in their organisation.

Should Microsoft be able to capture a slice of these markets, it may well be a pointer for the company’s future in a post-PC world.

Regardless of how well Microsoft do with the internet of everything, the latest range of Surface tablets and accessories shows how the company is executing its strategy of becoming a devices and services company.

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Exploring the internet of everything

What does the internet of everything mean for businesses? Cisco’s Ken Boal explains.

As part of the Decoding the New Economy video series, I had the opportunity of interviewing Ken Boal, the head of Cisco Australia and New Zealand, about the Internet of Everything and how it will change business.

“The internet of everything is about things, it’s about people, process and it’s about data,” says Ken. “Compounding together to create new capabilities and drive opportunities for nations, enterprises, government and right down to consumers.”

“It’s a huge transition in the internet’s evolution.”

Reducing the road toll

A previous Cisco presentation looked at some of the ways the internet of everything can reduce road deaths, Ken sees this both private and public sector benefits of the connected economy flowing to consumers and the community.

“When you think about things like traffic congestion, health care and how education is delivered we know there’s huge opportunities for greater efficiency,” says Ken.

“Just on road safety, when we’ve got all the vehicles and trucks connected, when the traffic lights and traffic control systems are all connected,” suggests Ken, “then consumers are going be better informed about what is the most efficient route to work.”

“Cars will be communicating with each other to reduce fatalities and collisions in the future as well.”

Bringing together industrial, consumer  and public safety technologies creates a grid of connected devices, including cars, that improve public safety while making industries more efficient.

Of course these connected services come with risks to privacy, particularly when multiple points of data can triangulated despite each individual item being anonymous on their own.

What Ken finds is particularly important is the current value of these technologies with Cisco predicting $1.4 billion in productivity gains through the internet of everything this year, half of which are available for businesses.

A warning for Australia

For Australia, the concern is that business and the economy in general is falling behind, Cisco’s recent Internet of Everything Value Index rated Australia among the BRIC countries in adopting the new technologies.

“We’ve always counted Aussies as fairly innovative and leading edge,” says Ken. “Australia is ranked tenth out of the twelve largest economies in the adoption of internet of everything capablities.”

The countries leading – such as Japan, Germany and the United States – have had a solid record of investing in technology, “in Australia, we’ve had that in the past but we’ve lost our mojo.” Ken says, “IT has been viewed more as a problem – a cost to business – rather than a provider of productivity for the long term.”

How business can adapt

For businesses, the question is how can they take advantage of the internet of everything? “You don’t have to start from scratch,” says Ken. “There are a whole heap of use cases for every vertical.”

“Start to drive some innovation. Think about your business processes at the front end where you touch your customers, look at your supply chains and your back office arrangements driving workforce productivity and how fast can you deliver new innovations to the market.”

“Internet of everything themes can address a whole host of these different processes in different parts of your business.”

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Security and the hackable baby monitor

Poor internet security on a baby camera should remind us of the importance of keeping your network secure.

Imagine a baby monitor that can be hacked, that’s the story that Forbes magazine tells about the Foscam baby monitors that can be owned by anybody using the Shodan search engine to find unsecured video devices.

Like all similar stories, the Foscam monitors’ weaknesses are born out of good intentions, the idea is parents can keep an eye on their children across the internet.

The problem, as always, is convenience and ease of use trumped security with Foscam making it easy for parents to by having trivial, if any, security on their devices.

It’s a lesson that should have been learned a million times, yet manufacturers continue to disregard the risks of poor security on internet connected devices.

As these internet connected devices become critical to business and public safety, this lack of security won’t be acceptable.

Slowly, companies like Foscam are being forced to take security seriously — hopefully consumers will accelerate the process by voting with their wallets.

In the meantime, it might be a good idea to make sure your home or business router has a good firewall before setting up internet connected devices.

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Reducing the road toll through the internet of everything

How can the internet of everything reduce the road toll?

How can modern computer technology cut the road toll?

Transport for NSW’s John Wall spoke last week at Cisco’s Internet of Everything presentation in Sydney about some of the ways the connected motor car can reduce accidents.

John’s presentation comes from personal experience, having being a volunteer for nearly thirty years at his local State Emergency Service brigade where he was often among the first responders to local vehicle accidents.

Some of the improvements in technology see the road toll falling as people travel less because of remote working, teleconference and business automation. Many of the applications though are built into the vehicles, street signs and the roads themselves.

Finding the safest route

John’s first suggestion for improving driver safety is having navigation systems sourcing traffic, weather and other information to suggest the best route for the driver. An intelligent system may also modify the recommended journey based on the experience of the driver and state of the vehicle, such as the tyre conditions.

Watching the eyes

Fatigue kills and all of us have driven when we were really too tired to be behind the wheel.

The first in car technology John discussed is facial recognition technology that detects when drivers are fatigued. Tying this feature into the vehicle’s entertainment system with a stern aviation style “PULL OVER – YOU ARE TIRED” warning could well save hundreds of lives a year on his own.

Connected road signs

One of the underpinning factors of the internet of everything is cheap computers and transmitters embedded into almost anything. Road signs and sensors talking to cars could help reduce driver errors such as entering curves too fast.

Those signs can also be plugged into weather conditions so if there’s ice, fog or rain then the car can be told of the hazards ahead.

Going on the grid

Signs are not the only devices that could be talking to each other, vehicles themselves could be talking to each other. Should one car hit a slippery or soft patch on the road, it could tell following vehicles that there’s a problem ahead and respond accordingly.

That technology too could help traffic planners and road authorities, as data on traffic speeds and road conditions feed into their databases it becomes easier to identify black spots or road design problems before lives are lost.

Helping the first responders

A wrecked car or roadside sensor can also help those first responders attending an accident. The vehicle itself could transmit the damage and give rescuers valuable, time saving information, on the state of the occupants.

Similarly, the system could also warn emergency services such as hospitals and ambulances of the injuries likely and what’s needed to treat the injuries on site, in transit and at the casualty ward.

Importantly, a smart vehicle can also warn those first responders of potential risks such as live air bag gas cylinders, car body reinforcements or high voltage cables as they attempt to free trapped occupant from a wreck.

The rescuers themselves may be wearing technologies like Google Glass that help them see this information in real time.

Bringing together the technology

As Kate Carruthers points out, the internet of everything is the bringing together of many different technologies – wireless internet, cloud computing, grid networks and embedded devices all come together to create a virtual safety net for drivers.

By the end of this decade that we will all be relying on these technologies to help us drive. Which means we might find our licenses start to be endorsed for the level of technology in our vehicles, just as we used to have to get qualified to drive a car with a manual transmission.

Concluding his presentation, John Wall told the story of Jason, a cyclist from his town who was killed in a road accident and left a young family. In his slide he showed Harry, Jason’s young son, playing with the flowers on his father’s memorial.

“I hope for Harry is that when Harry learns to drive that things will be different on our roads and things will be different because we are all connected,” said John.

It’s a strong reminder of the real human opportunities and costs when we adopt new technologies.

Car crash image courtesy of jazz111 through SXC.HU

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