KPN and the Internet of Things Everything and everybody connected
Introduction Water and steam powered the first industrial revolution in the eighteenth c entury. Electricity was the catalyst for the second one. The third industrial revolution arose from breakthroughs in electronics and information technology. We are now on the cusp of the fourth industrial revolution, that of the Internet of Things (IoT). Processes will become smarter and more efficient thanks to connectivity, data and sensors. This will make organisations increasingly more productive. Is your organisation ready for the fourth industrial revolution? 2
Chapter 1 What is the Internet of Things? The Internet of Things (IoT) is a development in which smart connections are enabled between sensors, devices and people. In essence the Internet of Things consists of three elements: connectivity, sensors, smart devices and data management. With this the sensors collect huge volumes of data which are sent to an application over a data network. This application makes it possible to use the collected data. The information generated from this data produces valuable insights. These insights in turn lead to better business decisions, which themselves lead to faster processes and more efficient business operations. In short: organisations become more effective through the use of IoT. 1.1 To the Internet of Things in five steps IoT is a chain of different technologies and applications. These elements are not valuable individually. But together they evolve into a powerful application which makes the operational processes more efficient, or enables new revenue models. Five steps must be completed to achieve a successful IoT solution. We will explain this using the example of the connected cow. Step 1: Deploy a sensor where you want to get information A sensor is implanted in a cow. This sensor can record a whole variety of values from its environment. In this case the sensor is measuring the temperature, the oxygen levels and the pathogens in the cow s body. So the sensor makes values visible to the dairy farmer. Step 2: Make the sensor smart A sensor on its own is of little value. It only really becomes useful when it can do something with the collected data. The sensor in fact only becomes smart if it can send this collected data over an IoT network to a device which the dairy farmer can read. Now the farmer suddenly has an insight into the condition of his cow. Two types of connectivity are possible to connect this sensor: Short Range connectivity like Wi-Fi, and Long Range connectivity like M2M (2G, 3G and 4G) and LoRa ( Long Range Low Power ). LoRa can exchange small quantities of information between objects and systems, with an ultra-low use of energy. Step 3: Arrange good data storage Where does the dairy farmer want to receive this valuable information? There are several options. Immediately in his organisation, or saved and archived in the cloud or a datacentre. In this case the farmer attaches importance to always having the information close at hand. This is why the data is stored securely in a datacentre in the Netherlands. Step 4: Work intelligently with the data obtained Before any conclusions can be drawn from the data generated, it must first be analysed. Complex algorithms interpret the data and convert it into information. Based on the information about the cow s condition, whether the animal might become ill can be spotted in good time, for instance. This lets the farmer initiate preventive treatment immediately, which will improve the cow s welfare and ensure that the farmer works more effectively. 3
Step 5: Interconnect the smart items We can expand this even further. For example, if you equip the entire stall with a sensor, you get a smart stall rather than a single, connected cow. This makes it possible to measure the humidity in the stall, for instance. The collected values are combined in a userfriendly, convenient app on the farmer s smartphone. He now knows just how his cows are doing physically, and what the conditions are like in the stall, at any time of the day. A feature in the app makes it possible to intervene directly using the app. Ultimately the data collected over the years produces a better understanding and eventually, predictive models and better preventive treatment of the herd, which lets the dairy farmer operate far more effectively. 1.2 Why has IoT suddenly made such advances? IoT is not new. At the end of the 1990s shipping containers were already being equipped with sensors which could be read. But these were isolated, small-scale projects. Now IoT solutions are within reach of everyone. There are a number of reasons for this: - The computing power of processors grows steadily. This makes performing complex calculations fast increasingly easy; - Sensors are becoming steadily smaller, cheaper and more energy-efficient; - Connectivity, both physical and wireless, is constantly becoming better and cheaper. Examples of this are LoRa and 4G-connectivity; - The emergence of cloud computing has made data accessible anywhere and at any time. This lets hardware and software work faster; - Innovations in algorithms like machine learning and deep learning (computers learn to recognise patterns) lead to more intelligent systems which together make up Big Data. 4
Chapter 2 The added value and possibilities of IoT in the future The IoT is continuing to grow steadily. Market research firm Gartner expects every individual to have some 50 IP addresses by 2020. It also predicts that 25 billion things will be connected to the internet by 2020. Some organisations are already implementing IoT to the fullest, but what exactly is the added value, and what are the possibilities? The potential for IoT is endless. IoT can ensure smart solutions everywhere, at the national level, at the urban level, at the company level and at the customer level. Here s a selection of inspiring cases. 2.1 Cases National level: Smart dyke monitoring Always being able to monitor the status of a dyke remotely. By fitting sensors at various points in the dyke, it s possible to measure the water pressure, for instance. The data collected by the sensors is linked to information on the dyke s stability. When water pressure is measured over a longer period, the system learns to predict the circumstances under which a dyke breach is most likely to occur, for example. This makes it possible to monitor the dyke remotely, which saves time and money. Urban level: 1. Always a parking spot Always knowing where you can park. That s possible by fitting every parking place in the city with a sensor which constantly collects data and shares it with a central system. Using matrix boards, on-board navigation systems and/or apps, the system shows drivers various places in the city where parking spots are available. 2. The right lighting under all circumstances Street lighting contributes to a city s safety. But should streetlights be on even when no-one is passing at night? How can street lighting contribute even more to safety? Sensors register the presence of a passer-by, and the lights switch on. With this type of connectivity street lighting can be switched off or dimmed remotely, and soft lighting is also made possible with LoRa. 3. Always watering on time The more information you have, the more efficiently and effectively you can work. For example in maintaining greenery like public gardens, roadside shoulders or parks. By equipping the greenery with sensors which monitor the water levels and share this information, staff only need to go into action when it s really necessary. This lets municipalities deploy their people and resources more effectively. Business level: 1. Smart cleaning trolley A major Dutch cleaning company has equipped its cleaning trolleys with sensors which measure, among other things, the volume of particulates, the carbon dioxide, the humidity and the temperature in office environments. With this data the company can advise its clients proactively. For instance, the quantity of dust in the air is an indication that the air-filters need to be replaced. The cleaning company can also give its clients an insight into the air quality in its offices. Using this information lets clients reduce the number of illnesses, and thus absenteeism. This turns cleaners into health monitors. 2. Keeping an eye on the fleet By equipping the vehicles in their fleets with chips and sensors, logistics companies can always track their cars wherever they are. Sensors are connected to the on-board computer and collect information about driving 5
behaviour, engine efficiency and productivity. With this data the company can plan its routes more efficiently. It s also easier to predict when maintenance services will be needed. Customer level Never lose luggage again Missing luggage is a major airport frustration for travellers. Thanks to IoT, suitcases and bags never need to get lost again. An airline offers passengers the ability to affix a smart tag to their bags: the e-track. The tag contains a chip which enables it to be tracked every where. If the tag is in the bag the passenger can track his bag with a smartphone app. The luggage can simply be handed in anywhere, because the tag contains all the relevant information about the owner and his destination. 2.2 Implementation in four steps Everyone can now get started with IoT. The relatively low costs bring it within reach of even small companies. It s not surprising that market research firm Gartner expects 50% of future IoT applications to come from start-ups younger than three years old. But how do you make the move to implementation? It s easy to do in four steps. Step 2: Construct a Minimum Viable Product Once the idea is there you can test it on a small scale with a prototype. Start with a Minimum Viable Product (MVP). In other words: the most minimal, quickest-tocreate product which meets your expectations. Don t hesitate to involve clients in this phase! Let them work with you to discover how to improve the concept! Step 3: Test Once the prototype is ready you can start on the actual proof of concept. In a controlled environment, discover whether your idea works as expected. The rule here is: think big, but start small! Step 4: Roll-out and implementation Has your concept proved itself? Then work on its implementation. Here too, work in small steps towards your scalable solutions. Start small and enlarge the scale in phases when the time is right. This lets you stay in control of the project, and the costs stay within the limits. Step 1: Begin with problems or ideas What problem do you want to solve? Which processes in your organisations do you want to improve? What service can you provide to serve your clients even better? Once someone is aware of the (countless) possibilities of IoT, there s a temptation to consider it from a technical point of view. However it works better to start with the problems or ideas. No immediate idea? Coming up with a concept requires a particular mindset and inspiration. A gathering of the IoT Academy, set up by KPN and the RDM Makerspace, helps to broaden your horizon. A co-creation session and hackathon (a gathering to work on projects jointly) can also produce the right focus. 6
2.3 Points to note When considering the uses of IoT, the only boundary is our own imagination. For all applications, it s important to remember a few preconditions. Ensure that you satisfy aspects such as privacy, security and uptime properly in advance. Privacy Weigh up in advance just how you are going to secure your data. Naturally not all data has the same level of sensitivity, but you certainly do want to ensure there is good protection of the data which is indeed sensitive. First you need to know in advance who will have access to what data in your IoT environment. Then you need the certainty that any privacy-sensitive information is in good hands. KPN s data protection meets the highest standards and Dutch legislation and regulations. Security What measures will you and your data provider take to keep out hackers? What s important here is how control over the sensors is protected. After all, you don t want hackers to be able to take control of the sensors on the dykes, traffic lights or cameras. Further protection is also important. Are data-servers protected against fire or floods? Does the provider have backup systems to ensure that data will be preserved under all circumstances? The answers to these questions are essential for keeping your data secure. Ensure that you know the answers when you are starting with IoT. KPN can help you with this. Reliability The success of an IoT solution depends to a large extent on the quality of the data transfer and storage. What is the connection s uptime? Are there alternative routes should the normal connection go down? What measures are in place to ensure that data and connections are available under all circumstances? 7
Chapter 3 KPN as a partner in IoT KPN has the broadest arsenal of connectivity. We offer a wide range of data management solutions, and have a reliable partner ecosystem. In it we bring the end-user and partner together to make IoT a reality. We contribute to creating the concept, and we can also work with a partner to develop applications. KPN also helps in saving and archiving data securely, and in converting date into usable information. Here we seek out collaboration within our partner ecosystem and the various knowledge networks in which we participate. 3.1 Everything and everybody connected KPN connects everything and everyone. We help clients to use data intelligently and are the reliable connectivity provider. Alongside connections by fibre-optic and copper, we offer M2M connections such as 2G, 3G and 4G. With LoRa we offer a new type of connectivity specifically for IoT applications. LoRa stands for long-range and is a new technology which can connect devices to the internet over long distances. With LoRa, sensors can easily send their data to the internet over long distances, or devices can receive commands from the internet such as on/off or open/close. LoRa will have national coverage in 2016. 3.2 Sparring partner KPN can help organisations wanting to get started with IoT right from the original conceptual phase. We inspire organisations by making concrete examples available. With gatherings such as brainstorming sessions and IoT workshops, we support companies in discovering favourable ideas. We work jointly on a further strategy through a roadmap. KPN accords the highest priority to co-creation and innovation through collaboration. That s why we play a major role in the various IoT initiatives and we are co-founders of the IoT Academy. This was set up to stimulate innovation through IoT further. 3.3 Developer In practice IoT solutions are often made up of a variety of components from a variety of suppliers. So collaboration is a must within the chain of companies offering IoT services and products. That is why KPN is part of a comprehensive partner ecosystem cooperating with the producers of smart solutions and software developers. KPN delivers the connectivity and know-how while we work alongside start-ups to develop new applications and techniques. This lets us also deliver the software and hardware for IoT with our partners. 3.4 Sharing knowledge We believe in open innovation and co-creation which is why we participate in a range of IoT activities. Our participation in the IoT Academy is a good example of this. KPN also takes part in the LoRa Alliance, a platform in which many international parties share LoRa knowledge. We are also a partner in the M2M World Alliance. This global alliance ensures that we can give our multinational clients worldwide reliable connectivity to connect their M2M devices. 3.5 Data management IoT only becomes successful if data is used intelligently. We can help you with this. With our datacentres we ensure that your data is stored securely in the Netherlands. We also offer services to manage and analyse your data safely. These services comply with Dutch legislation and regulations. 8
Chapter 4 Our vision for IoT 4.1 IoT offers organisations a competitive advantage IoT is going to take off in a big way. With the emergence of the LoRa network, IoT becomes accessible for everything and to everyone. While you are reading this, hundreds of companies are already working on transforming their organisations into an environment in which data, connectivity and smart devices lead to higher productivity, greater process efficiency, better service provision or complete new revenue models. In short: innovation which puts you ahead of the competition. 4.2 Good arrangements give value to IoT IoT is more than just sensors, data and equipment which are interconnected. It s the people who make the technology valuable by using the data intelligently. That starts with thorough arrangements. They must be clear within the entire ecosystem. So for instance there must be consensus on which (unambiguous) software and hardware standards will be used by all the parties involved. How the security of your data and that of your partners is organised must not only be clear in the individual links of the chain. The end-to-end security must also be properly in place to let the application perform to the utmost. It s also important to be clear about who is responsible for what. 4.3 IoT contributes to a better quality of life We believe in the Internet of Things. We believe that IoT leads to higher productivity, more efficient and faster processes and new revenue models or products which make the Dutch commercial sector stronger and more competitive. But IoT can add even more value. To the Netherlands, to our society and to our day-to-day lives. We are convinced that the smart application of IoT will improve the quality of life. That thanks to IoT, we will experience a better, more comfortable, safer, healthier and more sustainable life. KPN is at the heart of society. We connect everything and everyone. The ultimate goal can be a better quality of life for everyone. A safer, more sustainable and more comfortable environment for everyone in the Netherlands is coming within reach. 4.4 An invitation to discuss it further You have read our ideas about IoT in this document. KPN can play a leading role for you here. We connect everyone and everything. We can help you to deploy IoT intelligently to make your organisation more effective. Would you like to discover what IoT can mean for your organisation? Then please get in touch with us. We look forward to helping you to future-proof your organisation. Contact details KPN Internet of Things PO Box 19535 2500 CM The Hague kpn.com/iot https://twitter.com/kpniot www.linkedin.com/company/kpn-iot 9
kpn.com/iot