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The Networked Economy: The Internet of Things (IoT)

September 12, 2014

The Networked Economy: Driving A Circular Economy Connected by the IoT

Networked Economy
Cloud, Mobile & Analytics

ISB Global & SAP – Powering a Circular Economy with Applications, Cloud, Mobile & Analytics

The Internet of Things will have a dramatic impact on the way companies interact with customers and streamline operations. To fully exploit these opportunities, enterprises need to start considering how they will address new technical challenges as they fold increasingly intelligent devices into their existing IT landscapes.

How do you securely connect intelligent devices via the Internet to your enterprise, capture data reliably at the “point of action,” and analyze massive volumes of machine generated data alongside traditional data sources in real time?

In a recent report, the McKinsey Global Institute considers the Internet of Things to be one of the most disruptive technology trends of the next decade, with sweeping implications for businesses and policymakers. The report estimates the potential economic impact of the Internet of Things to be US$2.7 to $6.2 trillion per year by 2025 through improved operational efficiencies as well as new revenue-creating products and services.

The Networked Economy: The Drivers

The ability to put networked intelligence almost anywhere, at an unimaginable scale, will soon be in place as the following key drivers move the IoT vision driving the networked economy forward. Communication between mechanical or electronic devices is automated by what are collectively known as machine-to machine (M2M) technologies. M2M is not a new concept but a great example of what can be achieved.

Increasing affordability – The price of sensors and RFID tags is falling rapidly as high-volume manufacturing techniques create economies of scale. Sales of sensors have grown by 70% annually since 2010, and advances in technology are making more capable sensors more affordable.

Pervasive connectivity – Widespread access to cloud computing and affordable high-speed wireless data networks extend the reach of IoT applications and support the viability of greater uses.

Rapid innovation – Technological advances improve the variety of sensors and the effectiveness of IoT applications while reducing costs. Miniaturization makes it possible to include multiple sensors in one device to perform different tasks such as detecting geolocation, temperature, or motion. Power management is allowing devices to run unattended for longer periods of time.

Regulatory mandates – Stricter regulations are spurring a faster adoption of M2M solutions, especially in industries such as energy, automotive, and healthcare. For example, the European Union has mandated that 80% of European homes must have a smart meter installed by 2020.

Maturing ecosystem – As the number of telecommunications providers, device manufacturers, consulting firms, and business software companies supplying M2M services grows, it’s easier for enterprises to find the right providers with whom to partner.

The Networked Economy: A Vision

The IoT in transportation and logistics – Traditional supply chains typically stop once the goods are shipped. Smart goods allow the extension of the supply chain so that monitoring services, updates, content, and other digital services extend beyond the shipment of the goods and into the customer’s environment, transforming a logistics operation into a smart supply chain.

The IoT In industrial operations – The Internet of Things has its origins in factory automation. We have long made use of computer technology to embed intelligence into manufacturing and industrial processes to reduce human error, save time, increase efficiency, conserve resources, and generally optimize the performance of a physical system.

The Networked Economy: A Reality

NEXT-GENERATION APPLICATION ENABLEMENT – The IoT leverages the SAP portfolio, allowing companies to turn massive amounts of IoT data into meaningful insights and decisions – securely and affordably.

SECURE, STREAMLINED DEVICE MANAGEMENT – The SAP portfolio helps ensure that data stored and transmitted by connected sensors and intelligent assets is secure. It provides unified control of connected devices helping to keep devices up-to-date with zero disruption.

RELIABLE DATA CAPTURE – One of the great advantages of the IoT-M2M paradigm is the ability to collect valuable data from many new sources – from within your enterprise and from beyond your traditional IT boundaries. The SAP portfolio provides technologies necessary to protect this data and to prevent fraudulent devices from attempting to interact with your organization.

FLEXIBLE ANALYTICS FOUNDATION – Many next-generation applications will require near-real-time response times to live up to the promise of the Internet of Things. This allows enterprises to deploy the a variety of SAP Analytics technologies that make the most sense in different business scenarios.

SCALABILITY FOR MASSIVE DATA – The volume and velocity of data generated within the Internet of Things will be orders of magnitude larger than what traditional systems can practically handle. The SAP portfolio, based on the groundbreaking in-memory technology of SAP HANA, is up to the challenge.

For more than 40 years, SAP has been helping companies of all sizes and industries to run better by building powerful systems of record. Today, more than 60% of the world’s GDP flows through SAP software. As we move forward into an increasingly connected world, the IoT solution from SAP will allow you to exploit new opportunities and unlock new levels of productivity.

#Recycled From The Next Generation & The Internet of Things