Opportunities and Challenges of Internet of Things - Literature review Example

Opportunities and Challenges of Internet of Things

This document provides a review of the literature materials on Internet of things (IoT) to determine the opportunities and challenges of IoT to the businesses. The document focuses on the analysis of views of various authors regarding the Internet of Things paying specific interest on the benefits and challenges of IoT to the global market. Also, it examines the factors favouring the emergence and expansion of this technology, the documented uses, distribution and projected growth of IoT as well as how it will impact the lives of the people. This literature review is essential because it enhances the understating of IoT by identifying the benefits and challenges and a recommendation on how the IoT technology can enhance consumer and producer outcome. Furthermore, it assists in identifying the knowledge gap that necessities the need for research activity to explore more on the topic.

The Internet of Things refers to interconnecting of physical objects such as vehicles, building, etc. via network platforms using sensors, software, electronics, network connectivity and actuators to enable them gather and exchange data with minimal human or computer involvement (Chaouchi, 2013). IoT technology helps in sensing and controlling various objects remotely through the established network infrastructures thus enabling the incorporation of physical objects in the computing technology. The IoT interconnectivity is facilitated by many factors such as connectivity models, transformational potential and enabling technologies (Evdokimov, Fabian, & Gunther, 2011). The IoT technologies include ZigBee IEEE 802.15.4, RFID, Artificial intelligence, wireless sensor networks (WSN), Bluetooth, Actuators, Near Field Communications, sensors and smartphones, Barcode e QR Code and WIFI IEEE 802.11. The IoT devices include car sensors, wearable fitness devices, medical monitoring systems, smart thermostats, etc. this technology is cost saving and enhances efficiency (Agbinya, 2011). For instance, the use of ARM Cortex-M has reduced the power of processors by about 90% because of it capable of operating effectively using extremely low power compared to the traditional processors (Chou, 2016). This technology applies to the production of more efficient devices such as smart watch and has contributed to reduction prices of the gadgets using this technology by about 25 per cent.

The IoT is gaining significance in the modern society because of its increasing the potential to expand businesses creates new employment opportunities, enhancing business controls, increasing operations efficiency, offering an opportunity for improving business revenue as well as improving the standards of living of the people (Internet Society, 2011). Tully (2015) believes that despite the unlimited opportunities offered by the technology, it is an innovation that is yet to be fully exploited mainly because it has several challenges to the developers and users of IoT devices. The IoT technology enables the use of cost saving utilities to improve security and efficiency when used in smart meters, monitoring and controlling fleets of vehicles by logistics firms and increasing surveillance. Also, they are used to avert threats of terrorism attacks, etc. According to Tully (2015), the insurers use IoT to monitor the driving habits hence it helps in reducing costs associated with careless driving. Additionally, city and town planners are making use of IoT for effective planning. Furthermore, IoT devices have improved people's standards of living because they are used in TVs, cameras, thermostats to control room temperatures, water meters to monitor the rate of flow, etc.

There is a potential market for IoT, and some analysists have speculated the market will exceed £8 billion by the year 2025. IoT is likely to revolutionise the technology industry with certain industries such as the semiconductor industries aiming to benefit the most (Tully, 2015). Furthermore, there is unprecedented growth in the use of smartphones that will make IoT relevant in day-to-day lives of the people hence increasing the potential for IoT to create more revenue. Well established and technology oriented companies have already established platforms for the Internet of Things technology (Buyya & Dastjerdi, 2016). For instance, Google has acquired Nest as its platform for establishing applications for IoT. Also, Apple Inc. has established HomeKit and HealthKit tools for development of an advanced operating system to accommodate the integration of physical devices in the digital system. Although many authors agree that the IoT devices will increase tremendously in the future, it remains unclear how many devices will have been connected with some estimating over 100 billion while others believe they will be about 20 billion by the year 2020.

Organisations will use the IoT to determine the market growth potential. This data created and exchanged by the IoT devices will help organisations to boost productions develop new business models, motivate their workforce and enhance innovation thus enhancing the growth of revenue (Evdokimov, Fabian, & Gunther, 2011). Furthermore, organisations are boosting income by evaluating the market needs and giving producers information to help them increase production and enhance transportation. The integration of physical devices and digital world will contribute to the development of new capabilities and services that will result in the creation of new jobs and business opportunities.

The growth potential for the Internet of Things limited by the security issues, privacy concerns, fragmented market, the nonexistence of standards, technological barriers and reduced consumer demand.

The insecurity issues are of major concern as far as information technology is concerned. With over 50 billion objects expected to be incorporated in the computing system by the year 2020, the consumer safety becomes an issue of major concern due to complications of securing the system (Dawson, Eltayeb & Omar, 2016). Consumers need a high level of assurance that the data being exchanged by the IoT is not interjected by unauthorised users and it does not expose them to cyber criminals. There is growing concern that in the case of a default connected devices millions of consumers across the globe are at greater risk of exposure to cyber criminals. The data being exchanged by the IoT could be stolen and used to harm the users. It is a collective responsibility of the internet providers, IoT system developers and users of the Internet of Things devices to ensure the system is adequately protected to avoid loss of data or user exposure to technological threats (Internet Society, 2011). For instance, there have been cases of online car systems being hacked which could undermine the customer trust.

Installation of security measures is challenging considering the complications of various devices interconnected through the Internet of Things (Buyya & Dastjerdi, 2016). Various devices will require different levels of security to protect the users and ensure the organisations achieve their intended goals. This implies there is a need for installing different security measures to match the market need (Internet Society, 2011). Some objects such as clothes may require simple security solutions such as software-based remedies while other crucial activities such as medical electronics and automated production require more sophisticated hardware-based solutions.

According to Dawson, Eltayeb and Omar (2016), the developers of IoT can attract larger market by developing single applications and hands-on that support various business applications in a simple platform and integrated with expert applications to assist users to achieve their business goals and solutions. Such applications could be more useful to the upcoming businesses and small to medium-sized ventures that are looking for innovative cost-cutting technologies to develop business competency. Also, non-technological based businesses want applications that easy to use hence have more specified applications boost the Internet of Things market. However, daCosta (2013) has a different view regarding the nature of technology that can enhance the market for the Internet of Things and claims that most customers prefer one-stop resolution to their businesses issues. Having single applications that offer a platform for a variety of IoT devices integrated with microprocessors, sensors, connectivity software and memory can offer better market (Buyya & Dastjerdi, 2016). However, it is evident from the above arguments that the system developers should focus on creating platforms that offer consumers variety of uses with minimal difficulties to enhance their usability.

Currently, there is no uniform accepted standards for developing IoT technology, and there are no suggested standards for the current or future market. The development of various technologies such as LTE, Bluetooth and ZigBee has created significant complications in the market for IoT (McEwen & Cassimally, 2014). Developers fear to come up with technology that may be rejected in the future while consumers are concerned that some devices may become incompatible with current or future technology. To survive in the field full of uncertainty parties should confine their choices on technologies that are more likely to gain acceptance or standardised.

Another challenge facing the IoT technology is the fragmented market. Consumers consider various factors when selecting devices. Factors such as price, the speed of processing data, power rating, quality, etc. are just, but some of the factors influencing the choice of their devices (daCosta, 2013). The specifications and requirements for the same device may vary depending on the use. Therefore, it is a challenge for the manufacturers to customise various devices according to consumer requirements considering the cost of production, quality and quantity demanded each product category is uneconomical and unsustainable. This implies developers can meet certain market segments and not others. However, manufacturers can close the market gaps by categorising the products to enable sharing of the common platform for products falling within a certain range (Internet Society, 2011). This will help to minimise the cost of satisfying the market requirements and increase customer expectations.

Therefore, the advancement in technology has contributed to cost saving devices because they can function at relatively lower prices. The Internet of Things has several potential benefits and challenges. The possibility of growth of this industry and the projected benefits largely depends on how effective the players in the market will address the various obstacles facing this technology. However, there are several challenges which must be overcome to enhance customer trust and application of the IoT technology for the benefit of users and developers.

2. Digital Posters on IoT Application in Transport

IoT in Transportation

2.1. Background of IoT on Transport

The Internet of Things is transforming the transport sector in a great way whether by road, sea or air by giving fleet managers a real-time accessibility and control. It is improving supply chain visibility to improve performance through profit sustainability and feasibility. The IoT technology is enhancing the data collection and communication through GPS, machine-to-machine and mobile devices that provide information on departure point, travel time, movement of traffic and point of destination (Chou, 2016). The information is used to manage and control transport and logistics for better performance. The key areas where IoT technology has been successfully applied in transport in what is referred as smart transport. It involves the application of safety applications, fleet management systems, and intelligent transportation systems in vehicles and transport infrastructures to achieve global competitiveness of the transport companies and add value to the consumers and society in general (Buyya & Dastjerdi, 2016). The IoT in transportation improves delivery of services such as enhancing the search for parking spaces by identifying a parking space without a car. The smart parking is helping drivers to save time in search for parking spaces while it reduces cost the local authority due to reduced number of parking attendants.

2.2. Consequences of IoT on Transport

The IoT technology has enhanced advertising in trains, planes and vehicles. Consumers get the intended message cost conveniently while advertisers deliver the message cost effectively. Most transport sectors have introduced free WI-FI to enhance customer experience. Panasonic, Global Eagle, Gogo and Thales/LiveTV are main companies offering connectivity for IoT in transport (Chou, 2016).

The use of automobile sensors in cars with the capability of sensing the atmospheric temperatures has improved the fuel efficiency and driving safety. Also, they are helping in detecting engine problems, show trip logs and mileage and inform relatives in case of an accident. The sensors gather data about the road thus increasing the safety of the vehicles (Buyya & Dastjerdi, 2016). Additionally, they communicate to the technicians about the condition of the cars thus enabling them to analyse it and act before the problem escalates into a serious issue.

IoT technology has increased security for the cars by enabling the owners to monitor and track the cars in case of theft. The IoT technology for cars includes embedded connection which uses chipset & inbuilt antenna and tethered technology which connects cars to smartphones using hardware (Agbinya, 2011). They are using Google Maps and other applications to identify the cheapest fuel in their location while other applications such Spotify music apps are making it easy for the drivers to access and play music. Furthermore, other apps such as Uber are helping drivers and passengers to locate and connect with nearest Uber hence reducing cost and increasing the efficiency of operations.

RFID has enhanced management of fleet. The technology helps transport managers to schedule transport vehicle management and routeing of vehicles (Evdokimov, Fabian & Gunther, 2011). Additionally, it enables technicians and fleet managers to address needs of the customers, procure equipment and monitor environment on real-time. This enhances operation efficiency and performance.

2.3. Recommendations

1. There is good reason to improve data collection using IoT technology on cars and share it with the relevant institutions to provide a solution to various global challenges such as the data about the environment to address issues of climate change, fire hazards and increase the efficiency of predicting.

2. Another recommendation is for the vehicle producers to enhance security and protect the privacy of the gadgets linked to the IoT technology to maximise benefits for the clients and minimise adverse consequences cause by cyber crimes.

3. The last recommendation is for the producers of IoT devices to ensure compatibility and affordability of the IoT devices to enhance the connection of as many devices as possible for the best outcome.

3. Reflection

Technological advancement is driving businesses to a greater height in the global market as businesses focus on increasing competitiveness to satisfy the ever-increasing customer expectations. Both consumers and producers are seeking perfection as they tend to eliminate defects and increase efficiency (Chaouchi, 2013). This is being achieved through increased monitoring and control systems that are cost effective. The Internet of Things is revolutionising consumers market by increasing the efficiency of gadgets, increasing monitoring, improving the health of individuals, etc. For instance, IoT application in transport has increased safety and efficiency of managing transport. Since there are less human or computer interactions, IoT increases efficiency as large data is being exchanged between IoT devices and this data when analysed it give information about the usage of the devices, establish whether there is a defect and improve the security of the devices (Pfister, 2011). Furthermore, manufacturers can use this platform to educate consumers about the operations of the devices and monitor the market penetration thus helping them to strategize on how to meet the uncovered market. Therefore, the advancement in IoT technology is improving lives of the people and creating unlimited business opportunities.

The interconnection of devices enable control and monitoring the use of devices for increased efficiency and performance. This is achieved through the exchange of information obtained from technological platforms and other devices such smartphones (Chaouchi, 2013). For instance, the vehicle control systems enable vehicle owners to monitor the movement of the vehicles effectively thus increasing the safety of their vehicles, identify locations for cheap fuels, enhance fuel efficiency and control against theft. The full potential of IoT technology in transport can be realised if more devices are integrated into the IoT system to enhance gathering of data and sharing of information globally.

4. Conclusion

The advancement in technology has many advantages and challenges as well. The Internet of Things provides a platform for the interconnecting things and people with less computer or person involvements. Various devices such as clothes, persons, household appliances electronic devices, etc. are connected to IoT technology. The IoT devices gather and relay data to other devices or persons to which is used to monitor or control the devices or make other decisions. The goal is to enhance performance and increased efficiency through better control systems. Consumers use Internet of Things to monitor the working of various gadgets in their homes to enhance efficiency. Devices inserted into the bodies of patients can gather data about the health of the person and that data can be used by doctors to determine the healthy status and give medical intervention whenever necessary. The homeowners can use IoT technology to control the use of home appliances such as TVs, Refrigerators and houses are connected to the system. In transport, this technology provides a platform for monitoring the movement of goods hence it will improve supply chain performance. The interconnection of devices creates businesses opportunities, jobs, increase the safety of the products, and increase efficiency. However, this raises the question of user security, privacy issues, market fragmentation and standardisation issues. Manufacturers can use the platform to educate consumers and monitor the usage of items to enhance efficiency. Internet of things improve city planning, improves marketing of products by improving communication between consumers and producers, improves transportation, etc.

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Tully (2015) believes that despite the unlimited opportunities offered by the technology, it is an innovation that is yet to be fully exploited mainly because it has several challenges to the developers and users of IoT devices. The IoT technology enables the use of cost saving utilities to improve security and efficiency when used in smart meters, monitoring and controlling fleets of vehicles by logistics firms and increasing surveillance. Also, they are used to avert threats of terrorism attacks, etc. According to Tully (2015), the insurers use IoT to monitor the driving habits hence it helps in reducing costs associated with careless driving. Additionally, city and town planners are making use of IoT for effective planning. Furthermore, IoT devices have improved people's standards of living because they are used in TVs, cameras, thermostats to control room temperatures, water meters to monitor the rate of flow, etc.

There is a potential market for IoT, and some analysists have speculated the market will exceed £8 billion by the year 2025. IoT is likely to revolutionise the technology industry with certain industries such as the semiconductor industries aiming to benefit the most (Tully, 2015). Furthermore, there is unprecedented growth in the use of smartphones that will make IoT relevant in day-to-day lives of the people hence increasing the potential for IoT to create more revenue. Well established and technology oriented companies have already established platforms for the Internet of Things technology (Buyya & Dastjerdi, 2016). For instance, Google has acquired Nest as its platform for establishing applications for IoT. Also, Apple Inc. has established HomeKit and HealthKit tools for development of an advanced operating system to accommodate the integration of physical devices in the digital system. Although many authors agree that the IoT devices will increase tremendously in the future, it remains unclear how many devices will have been connected with some estimating over 100 billion while others believe they will be about 20 billion by the year 2020.

Organisations will use the IoT to determine the market growth potential. This data created and exchanged by the IoT devices will help organisations to boost productions develop new business models, motivate their workforce and enhance innovation thus enhancing the growth of revenue (Evdokimov, Fabian, & Gunther, 2011). Furthermore, organisations are boosting income by evaluating the market needs and giving producers information to help them increase production and enhance transportation. The integration of physical devices and digital world will contribute to the development of new capabilities and services that will result in the creation of new jobs and business opportunities.

The growth potential for the Internet of Things limited by the security issues, privacy concerns, fragmented market, the nonexistence of standards, technological barriers and reduced consumer demand.

The insecurity issues are of major concern as far as information technology is concerned. With over 50 billion objects expected to be incorporated in the computing system by the year 2020, the consumer safety becomes an issue of major concern due to complications of securing the system (Dawson, Eltayeb & Omar, 2016). Consumers need a high level of assurance that the data being exchanged by the IoT is not interjected by unauthorised users and it does not expose them to cyber criminals. There is growing concern that in the case of a default connected devices millions of consumers across the globe are at greater risk of exposure to cyber criminals. The data being exchanged by the IoT could be stolen and used to harm the users. It is a collective responsibility of the internet providers, IoT system developers and users of the Internet of Things devices to ensure the system is adequately protected to avoid loss of data or user exposure to technological threats (Internet Society, 2011). Read More