How Quickly Are Industries Adopting the Internet of Things?

Kai Goerlich

Science fiction writer William Gibson is credited with saying, ”The future is already here—it’s just not evenly distributed.” Such is the case with the Internet of Things (IoT).

Digital business requires both data and the equipment to capture, store, manage, and analyze that data before enterprises can better inform their decisions, automate actions, and improve operations. IoT technology provides a way.

According to IDC, companies are ramping up their IoT investments rapidly, which can be seen in seven major industries with high levels of physical products or assets. Overall, the market research firm forecasts that IoT spending will increase 19% on average through 2018. Some industries, such as discrete manufacturing, have already invested significantly; others, such as healthcare, have spent less to date but are expected to expand quickly in the future.

Opportunities for Connection

The IoT is poised for rapid growth across a wide variety of industries that are connecting physical assets 2016_Q1_charted_09
Download the infographic here.

The IoT Creates New Revenue Models

The Internet of Things represents a new course for automation and data-enabled decision making. Companies can use data collected from sensors on machines to create new business processes and revenue models.

It’s no wonder the numbers that researchers at Gartner cite—6.4 billion connected things in use in 2016, an increase of 30% over 2015—sound both large (billions, up 30%) and small at the same time (we’re just getting started). The future is being distributed unevenly, but it will reach just about everywhere, eventually.

2016_Q1_charted_02Utilities

Utilities are still in the early stages of connecting their physical assets, a McKinsey Global Institute analysis finds. Deregulation and new market entrants are expected to prompt greater investments in the future. For example, smart metering systems and renewable energy sources, both growing activities in this industry, require IoT connections.

And to compete, utilities will need to invest in systems that monitor and analyze data from smart devices at homes and businesses, Tata Consultancy Services notes. IDC predicts that eventually this industry will see a high impact from its IoT investments because both utility companies and consumers have a stake in making energy production and use more efficient.

2016_Q1_charted_03Healthcare

The industry as a whole has been slowed by regulatory and privacy concerns, Tata Consultancy Services research finds. But as healthcare providers install more equipment to connect medical devices to networks, they, too, will adopt more data-driven devices. Ultimately, IDC suggests that the IoT will have a high impact through monitoring applications and sensors that enable patients to manage their health and fitness.

2016_Q1_charted_04Wholesale

The IoT promises to bring new capabilities to distributors, including new opportunities to sell goods through industrial vending machines and automated transportation systems. However, the industry as a whole has been what McKinsey Global Institute calls a medium-level player on
the road to digitization.

 

2016_Q1_charted_05Discrete Manufacturing

Companies ranging from consumer goods makers to industrial manufacturers are applying IoT investments to monitor production and the flow of goods. Sensors enable predictive applications to schedule maintenance for jet engines, for example. And consumer goods makers are starting to experiment with marketing applications enabled by machine sensors and smartphones, Tata Consultancy Services notes.

2016_Q1_charted_06Retail

As VDC Research Group points out, the drive to digitize business has been going on since well before 2013. Prices for RFID transponders have dipped over the past decade, which has enabled retailers to affix tags to goods, speeding up inventory tracking and shipments processing and reducing shrinkage, RFID Journal reports.

 

2016_Q1_charted_07Logistics

Logistics firm DHL and networking vendor Cisco predict that there will be 50 billion connected devices by 2020, while making the point that this “represents only a tiny fraction of what could be connected—something on the order of 3% of all connectable things.” The resulting connectivity will reshape how decisions are made about the way goods are stored, monitored, serviced, and delivered. According to IDC, the IoT will have a high impact on the logistics industry because the benefits are clear and easy to measure.

2016_Q1_charted_08Process Manufacturing

Companies in process industries have been heavy investors in technologies that make their assets more productive, including enterprise resource planning and supply chain management software. Leading players see the IoT as a way to extend the value of these investments. For example, Deloitte researchers note that oil and gas companies can wring more efficiency from resource processing and distribution by collecting and analyzing data from sensors and by monitoring equipment to reduce unplanned equipment outages.

By Michael S. Goldberg and Kai Goerlich

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

IoT Can Keep You Healthy — Even When You Sleep [VIDEO]

Christine Donato

Today the Internet of Things is revamping technology. IoT image from American Geniuses.jpg

Smart devices speak to each other and work together to provide the end user with a better product experience.

Coinciding with this change in technology is a change in people. We’ve transitioned from a world of people who love processed foods and french fries to people who eat kale chips and Greek yogurt…and actually like it.

People are taking ownership of their well-being, and preventative care is at the forefront of focus for both physicians and patients. Fitness trackers alert wearers of the exact number of calories burned from walking a certain number of steps. Mobile apps calculate our perfect nutritional balance. And even while we sleep, people are realizing that it’s important to monitor vitals.

According to research conducted at Harvard University, proper sleep patterns bolster healthy side effects such as improved immune function, a faster metabolism, preserved memory, and reduced stress and depression.

Conversely, the Harvard study determined that lack of sleep can negatively affect judgement, mood, and the ability retain information, as well as increase the risk of obesity, diabetes, cardiovascular disease, and even premature death.

Through the Internet of Things, researchers can now explore sleep patterns without the usual sleep labs and movement-restricting electrode wires. And with connected devices, individuals can now easily monitor and positively influence their own health.

EarlySense, a startup credited with the creation of continuous patient monitoring solutions focused on early detection of patient deterioration, mid-sleep falls, and pressure ulcers, began with a mission to prevent premature and preventable deaths.

Without constant monitoring, patients with unexpected clinical deterioration may be accidentally neglected, and their conditions can easily escalate into emergency situations.

Motivated by many instances of patients who died from preventable post-elective surgery complications, EarlySense founders created a product that constantly monitors patients when hospital nurses can’t, alerting the main nurse station when a patient leaves his or her bed and could potentially fall, or when a patient’s vital signs drop or rise unexpectedly.

Now EarlySense technology has expanded outside of the hospital realm. The EarlySense wellness sensor, a device connected via the Internet of Things, mobile solutions, and supported by SAP HANA Cloud Platform, monitors all vital signs while a person sleeps. The device is completely wireless and lies subtly underneath one’s mattress. The sensor collects all mechanical vibrations that the patient’s body emits while sleeping, continuously monitoring heart and respiratory rates.

Watch this short video to learn more about how the EarlySense wellness sensor works:

The result is faster diagnoses with better treatments and outcomes. Sleep issues can be identified and addressed; individuals can use the data collected to make adjustments in diet or exercise habits; and those on heavy pain medications can monitor the way their bodies react to the medication. In addition, physicians can use the data collected from the sensor to identify patient health problems before they escalate into an emergency situation.

Connected care is opening the door for a new way to practice health. Through connected care apps that link people with their doctors, fitness trackers that measure daily activity, and sensors like the EarlySense wellness sensor, today’s technology enables people and physicians to work together to prevent sickness and accidents before they occur. Technology is forever changing the way we live, and in turn we are living longer, healthier lives.

To learn how SAP HANA Cloud Platform can affect your business, visit It&Me.

For more stories, join me on Twitter.

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Christine Donato

About Christine Donato

Christine Donato is a Senior Integrated Marketing Specialist at SAP. She is an accomplished project manager and leader of multiple marketing and sales enablement campaigns and events, that supported a multi million euro business.

Size Doesn't Matter For Businesses In The Digital Economy

Christine Donato

SAP_Talks_Banner_2When I first entered the job market, I interviewed at a few different companies, one of which was a small insurance firm outside Philadelphia. My interviewer was a C-level executive, and he gave me a piece of advice I’ll never forget. He said, “You know, at a large corporation, you’re going to learn a lot about a little. Here with us, at a small business, you will learn a lot about a lot.”

He meant, of course, that employees of small to mid-sized companies wear many hats.  And usually, their organizational leaders are accessible resources and serve as CEO, CMO, CIO, CFO, and more all at one time.

Size doesn’t matter

Today, small businesses can be just as successful as, if not more successful than, their larger competitors. Why? Because with the right technology, small businesses can easily cause positive disruption in the market.

Within the boom of the digital economy, small businesses now have the power to reshape their markets and industries. A couple popular examples of this are Uber disrupting the transportation industry and Airbnb disrupting the hospitality industry.

Both have significantly shaken their larger competitors because they are successfully leveraging the Internet of Things to provide customers with a simple and easy way to purchase a service. And according to a recent blog by Vivek Bapat, 70% of consumers will recommend brands that offer a simpler experience.  And 38% of consumers will pay a premium for it (The Digitalist).

Learn more… Listen to #SAPTalks

According to a recent Economist Intelligence Unit study, 59% of executives agree that in order for their businesses to survive with today’s customers, their businesses must embrace and adapt to hyperconnectivity.

To learn more about numerous small and mid-sized businesses that are ditching legacy processes and inside-the box thinking to become disruptive forces in their markets, check out the new podcast series, #SAPTalks…Small to Midsized Business, hosted by David Trites.

In about 20 minutes per episode, guest speakers from small and mid-sized companies share their unscripted and in-depth digital transformation experiences. They explain their industries, challenges, current technology projects, best practices, and lessons learned along the journey.

The first episode will air on the Voice America Channel on Tuesday October 13th and will feature Paula Muesse, CIO and CFO of Zhena’s Gypsy Tea. On the show, Paula will explain how Zhena’s adopted new technology to best sell organic, fair-trade, and competitive teas.

You can follow the conversation on Twitter by hash tagging #SAPTalks and by following @SAPSmallBiz.

Follow the blog series

Read about more companies that have broken the myth that SAP is only for big business:

How to be a World-Leading Publisher in a Digital World

Franklin Valve Shows How Small Business Tackles Rapid Growth

Who is Feeding China’s Half Billion Pigs?

How Prime Meats Cuts Through Business Complexity

High-Tech ERP Helps EvoShield Protect Athletes and Grow Business

Stick to Basics in Family Recipes and the Sausage Business

For more on how you can successfully sell into the small and mid-sized market, please click here.

For more stories, follow me on Twitter and LinkedIn.

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Christine Donato

About Christine Donato

Christine Donato is a Senior Integrated Marketing Specialist at SAP. She is an accomplished project manager and leader of multiple marketing and sales enablement campaigns and events, that supported a multi million euro business.

Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Jenny Dearborn: Soft Skills Will Be Essential for Future Careers

Jenny Dearborn

The Japanese culture has always shown a special reverence for its elderly. That’s why, in 1963, the government began a tradition of giving a silver dish, called a sakazuki, to each citizen who reached the age of 100 by Keiro no Hi (Respect for the Elders Day), which is celebrated on the third Monday of each September.

That first year, there were 153 recipients, according to The Japan Times. By 2016, the number had swelled to more than 65,000, and the dishes cost the already cash-strapped government more than US$2 million, Business Insider reports. Despite the country’s continued devotion to its seniors, the article continues, the government felt obliged to downgrade the finish of the dishes to silver plating to save money.

What tends to get lost in discussions about automation taking over jobs and Millennials taking over the workplace is the impact of increased longevity. In the future, people will need to be in the workforce much longer than they are today. Half of the people born in Japan today, for example, are predicted to live to 107, making their ancestors seem fragile, according to Lynda Gratton and Andrew Scott, professors at the London Business School and authors of The 100-Year Life: Living and Working in an Age of Longevity.

The End of the Three-Stage Career

Assuming that advances in healthcare continue, future generations in wealthier societies could be looking at careers lasting 65 or more years, rather than at the roughly 40 years for today’s 70-year-olds, write Gratton and Scott. The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

It will be replaced by a new model in which people continually learn new skills and shed old ones. Consider that today’s most in-demand occupations and specialties did not exist 10 years ago, according to The Future of Jobs, a report from the World Economic Forum.

And the pace of change is only going to accelerate. Sixty-five percent of children entering primary school today will ultimately end up working in jobs that don’t yet exist, the report notes.

Our current educational systems are not equipped to cope with this degree of change. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is outdated by the time students graduate, the report continues.

Skills That Transcend the Job Market

Instead of treating post-secondary education as a jumping-off point for a specific career path, we may see a switch to a shorter school career that focuses more on skills that transcend a constantly shifting job market. Today, some of these skills, such as complex problem solving and critical thinking, are taught mostly in the context of broader disciplines, such as math or the humanities.

Other competencies that will become critically important in the future are currently treated as if they come naturally or over time with maturity or experience. We receive little, if any, formal training, for example, in creativity and innovation, empathy, emotional intelligence, cross-cultural awareness, persuasion, active listening, and acceptance of change. (No wonder the self-help marketplace continues to thrive!)

The three-stage model of employment that dominates the global economy today—education, work, and retirement—will be blown out of the water.

These skills, which today are heaped together under the dismissive “soft” rubric, are going to harden up to become indispensable. They will become more important, thanks to artificial intelligence and machine learning, which will usher in an era of infinite information, rendering the concept of an expert in most of today’s job disciplines a quaint relic. As our ability to know more than those around us decreases, our need to be able to collaborate well (with both humans and machines) will help define our success in the future.

Individuals and organizations alike will have to learn how to become more flexible and ready to give up set-in-stone ideas about how businesses and careers are supposed to operate. Given the rapid advances in knowledge and attendant skills that the future will bring, we must be willing to say, repeatedly, that whatever we’ve learned to that point doesn’t apply anymore.

Careers will become more like life itself: a series of unpredictable, fluid experiences rather than a tightly scripted narrative. We need to think about the way forward and be more willing to accept change at the individual and organizational levels.

Rethink Employee Training

One way that organizations can help employees manage this shift is by rethinking training. Today, overworked and overwhelmed employees devote just 1% of their workweek to learning, according to a study by consultancy Bersin by Deloitte. Meanwhile, top business leaders such as Bill Gates and Nike founder Phil Knight spend about five hours a week reading, thinking, and experimenting, according to an article in Inc. magazine.

If organizations are to avoid high turnover costs in a world where the need for new skills is shifting constantly, they must give employees more time for learning and make training courses more relevant to the future needs of organizations and individuals, not just to their current needs.

The amount of learning required will vary by role. That’s why at SAP we’re creating learning personas for specific roles in the company and determining how many hours will be required for each. We’re also dividing up training hours into distinct topics:

  • Law: 10%. This is training required by law, such as training to prevent sexual harassment in the workplace.

  • Company: 20%. Company training includes internal policies and systems.

  • Business: 30%. Employees learn skills required for their current roles in their business units.

  • Future: 40%. This is internal, external, and employee-driven training to close critical skill gaps for jobs of the future.

In the future, we will always need to learn, grow, read, seek out knowledge and truth, and better ourselves with new skills. With the support of employers and educators, we will transform our hardwired fear of change into excitement for change.

We must be able to say to ourselves, “I’m excited to learn something new that I never thought I could do or that never seemed possible before.” D!

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