Internet of things (in the following: IoT), Industrial Internet, Ubiquitous Computing – these are current buzz words all trying to provide a catchable description of what we are currently experiencing: A fundamentally new quality of computerized data collection and processing, enabled by smart devices, which are fitted with sensors, processors and connectivity components making them capable of being interconnected devices with autonomous exchange of information. These devices form the IoT, a vision in which classical computers as separate devices are disappearing and smart objects merge into the physical world. This essay will elaborate upon the concept of the IoT, the underlying conditions why we are experiencing the realisation of the vision now, the value drivers and how this will affect our private lives as well as businesses.
Table of Contents
1. What key disruptive effects have and will the Internet of Things or physical computing have on business and our daily lives?
2. What is a smart device?
3. Why is the IoT starting to materialise now?
4. Value drivers of the IoT – prerequisites for disruptive effects
5. The key disruptive effects of the IoT
6. Conclusion
Research Objectives and Themes
The essay explores the transformative nature of the Internet of Things (IoT), examining its technical foundations, the current maturity of necessary technologies, and its potential to disrupt both business models and private life through enhanced automation and data-driven decision-making.
- Evolution and definition of smart devices and the IoT concept.
- Technological enablers driving current IoT implementation (Moore's Law, connectivity, sensors).
- Taxonomy of IoT value drivers ranging from proximity triggers to cognitive feedback.
- Impact on supply chain management, business process efficiency, and daily life routines.
- Critical challenges regarding data privacy, security, and ethical implementation.
Excerpt from the Book
Value drivers of the IoT – prerequisites for disruptive effects
The following paragraph will provide some insights into the value drivers of the IoT. Before elaborating on this it is worth saying that it is very hard to model the exact value drivers and their potential effect as almost all business processes in almost every industry is embedded in the real world, hence the IoT could be relevant and applied in every step of the value chain. With that being said, substituting human input within these processes by smart devices (as they, for example, can count the inventory much more accurate than humans) can lead to huge positive, but not easily predictable, effects. (Fleisch, 2010)
According to Fleisch (2010) there are seven value drivers which all have disruptive effects in common:
1. Simplified manual proximity trigger: Think about self-check-out or stock-taking in libraries, basic payment procedures, etc. Here the value comes from the fact, that a smart thing can communicate and identify itself to its environment in a very robust, fast and convenient way when it comes into the roaming space of a proximity sensor. As soon as the smart device in close enough, e.g. a transaction is automatically triggered. This kind of value driver is actually used already quite often in today businesses. Think about self-service checkout at retailers, delivering value to the business by reducing labour costs.
Summary of Chapters
What key disruptive effects have and will the Internet of Things or physical computing have on business and our daily lives?: This introduction outlines the emergence of the IoT as a new quality of computerized data collection and processing, setting the stage for analyzing its impact on society.
What is a smart device?: This chapter defines smart devices by their sensory and connectivity capabilities and traces the origin of the term "IoT" to Kevin Ashton.
Why is the IoT starting to materialise now?: This section identifies the maturation of sensor technology, cloud computing, and mobile communication as the drivers that make IoT applications feasible today.
Value drivers of the IoT – prerequisites for disruptive effects: The chapter categorizes seven distinct value drivers, such as proximity and sensor triggers, that facilitate the substitution of human input with automated, intelligent processes.
The key disruptive effects of the IoT: This chapter analyzes how bridging the digital and physical worlds reduces transaction costs and creates new business opportunities while also identifying privacy risks in the private sphere.
Conclusion: The final chapter summarizes that while the IoT offers immense potential comparable to historical technological leaps, it requires a balanced approach to empirical research, governance, and security.
Keywords
Internet of Things, IoT, Smart Devices, Value Drivers, Disruptive Effects, Sensors, Connectivity, Transaction Costs, Data Privacy, Automation, Supply Chain Management, Cloud Computing, Digital-Physical Convergence.
Frequently Asked Questions
What is the core subject of this document?
The document examines the concept of the Internet of Things (IoT), exploring how it bridges the digital and physical worlds and its resulting impact on business processes and everyday life.
What are the central themes of the work?
The central themes include the technological evolution of smart devices, the value drivers that trigger industrial and personal disruption, and the societal challenges regarding data security.
What is the primary objective of this study?
The goal is to elaborate on the concept of the IoT, analyze the conditions allowing its realization today, and predict its disruptive potential on businesses and individuals.
Which scientific methodology is applied?
The essay utilizes a literature-based conceptual analysis, synthesizing definitions and frameworks from researchers such as Fleisch, Chui, Miorandi, and others to evaluate IoT developments.
What does the main body of the text cover?
The main body covers the definition of smart devices, the technological enablers, seven identified value drivers (ranging from simple triggers to mind-changing feedback), and the impacts on supply chain management and private life.
Which keywords characterize this research?
The research is characterized by terms such as IoT, disruptive effects, smart objects, value drivers, and transaction costs.
How does the IoT affect inventory management specifically?
The text explains that IoT eliminates the need for manual annual inventory counts by providing real-time data, thus enabling leaner supply chains and avoiding the costs associated with closing stores for auditing.
What role does the "Mind changing feedback" value driver play?
It suggests that by making resource consumption visible (e.g., smart meters), technology can influence human behavior toward greater ecological responsibility.
Why are data privacy and security considered major threats?
The author notes that public confidence is essential for adoption, and the conflict between the need for data richness to derive value and the necessity to protect user privacy remains a significant hurdle.
How is the "trustworthiness" of data justified?
The text argues that because data is generated by machines without fatigue, hidden agendas, or the fear of internal consequences, it is more reliable and unbiased compared to human-reported data.
- Arbeit zitieren
- Kai Wright (Autor:in), 2014, What Key Disruptive Effects Have and Will the Internet of Things or Physical Computing Have on Business and our Daily Lives?, München, GRIN Verlag, https://www.hausarbeiten.de/document/295658
