To obtain a foundational understanding of how the Internet of Things applies to your business, begin by exploring the answers to five key questions. To learn more, check out our special Internet of Things section in Deloitte Review Issue 17: http://deloi.tt/1TwfcmI
2. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.2 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
The Internet of Things (IoT) has been
simmering for a while, but now
seems ready to boil over as
widespread transformation
seems likely.
Will your organization be ready?
Deloitte University Press | 5 key questions about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
3. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.3 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
Want to know how many steps you
walked? Miles you drove? Watts you
consumed? The IoT can tell you all that
and more.
But how, exactly,
can the IoT bring
value to your
organization?
Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
4. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.4 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
To obtain a foundational
understanding of how the
Internet of Things applies to your
business, begin by exploring the
answers to five key questions.
5. 5 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.5 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
How does information generated from
the Internet of Things create value?1
6. 6 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Information within the Internet of Things creates value in
a never-ending value loop consisting of 5 stages:
CREATE
The use of sensors to
generate information
about a physical event
or state
COMMUNICATE
The transmission of
information across networks,
from one place to another
AGGREGATE
The gathering together of
information created at
different times or from
different sources
ANALYZE
The discernment of patterns
or relationships that leads to
descriptions, predictions,
or prescriptions for action
ACT
Initiating, maintaining, or
changing a physical event or state
7. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.7 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
It is crucial to look upon the IoT with both an open mind
and a certain level of skepticism.
To learn more, read โThe more things change: Value creation, value
capture, and the Internet of Thingsโ from Deloitte Review 17
Download the article
Some changes enabled by the Internet of Things will be incremental, while others
will be transformative. Yet the need to capture value remains as acute as ever.
value
8. 8 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.8 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Where do humans
fit into the equation?2
9. 9 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
At first blush, the obvious implication of the IoT is that
everyday objects can and will become better, more
efficient versions of what they already are.
10. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.10 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
But if you look closer, the Internet of Things is not just
about โsmart devicesโ; it is also about devices and
services that help people become smarter.
To learn more, check out โIoTโs about us: Emerging forms of innovation
in the Internet of Thingsโ from Deloitte Review 17
Download the article
Behavioral design thinking is indispensable when building the world
of complex systems of interactions between people and things
Digital breadcrumbs, analyzed with computational social science
tools, will help measure hidden individual and organizational traits
The IoT enables new products and services premised around the
creation of new forms of collective intelligence
11. 11 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.11 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
Customers vs. companies: Who
benefits from the Internet of Things?3
12. 12 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Information is a powerful value-creation tool. However,
the information value loopโs underlying structure tends to
pull IoT deployments in one of four directions:
Hobsonโs choice
โCustomers are free to decide
but only one option exists;
thus, it is really no choice at allโ
Allโs well
โSufficient value is created, and that
value is shared between customers
and companies sufficiently equitablyโ
Gridlock
โBoth companies and customers are
pulled in opposite directions, unable
to move toward an optimal outcomeโ
Customer is king
โCustomers end up capturing a
disproportionate share of the new
value createdโ
13. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.13 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
Companies can employ three techniques to develop an
economically sustainable and mutually beneficial
result for both the company and its customers.
To learn more, read โPower Struggle: Customers, companies, and the
Internet of Thingsโ from Deloitte Review 17
Download the article
Examine how a company
is using IoT technologies
using the Information
Value Loop
Take a hard look at who
benefits most from each
IoT-enabled transaction and
correct value allocations
Assess where IoT
investments may not have
an appreciable benefit and
move away from them
14. 14 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.14 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
How will companies
keep information safe?4
15. 15 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
The complex and rapidly changing landscape within
the Internet of Things demands a structured approach to
identifying risks and appropriate responses.
16. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.16 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
IoT solutions need to blend operational understanding
with multilayered cyber risk management techniques
To learn more, read โSafeguarding the Internet of Things: Being secure,
vigilant, and resilient in the connected ageโ from Deloitte Review 17
Download the article
A systemโs resilience defines how quickly a realized risk can be
addressed and normal operations restored
Remaining vigilant to new or unexpected challenges is crucial to
maintaining security
Securing data is critical at every stage of the value loop, especially the
create and communicate stages
17. 17 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.17 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
How does the Internet of Things
create value for your supply chain?5
18. 18 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Information from IoT deployments allows supply chains to
invest less in eliminating variation and instead use it as a
driver of innovation or competitive advantage
19. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.19 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
The transformations that the IoT can bring open up the
possibility for new improvements and allow companies to
find new paths to supply chain management
To learn more, read โForging links into loops: The Internet of Thingsโ
potential to recast supply chain managementโ from Deloitte Review 17
Download the article
Making visible previously
unseen information allows
for greater efficiency
than process controls
Companies can transform
push-driven order
systems to differentiated
pull-driven systems
Holistic, end-to-end
ecosystems can give
rise to new, innovative
business models
20. Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.20 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview
The Internet of Things can fundamentally
transform how organizations create value
The Information Value Loop gives
rise to increasingly complex
business ecosystems Big data analytics take
on additional levels of
complexity
Organizations must
determine how to share
value with customers
appropriately
Security and privacy take on
heightened importance
Profound insights
await discovery
across the
supply chain
21. 21 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Share your thoughts with the hashtag #DeloitteReview
Follow @DU_Press on Twitter
Read more from our special โInternet of Thingsโ section in
Deloitte Review Issue 17
Download
Download
Download
Download
Download
22. 22 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
MICHAEL E. RAYNOR
Meet the authors
director with Deloitte Services,
LP and the director of the
Center for Integrated Research
which designs, executes, and
supports research into important
issues facing companies today
MARK J. COTTELEER
research director with Deloitte
Services LP, affiliated with
Deloitteโs Center for Integrated
Research, focused on
operational and financial
performance improvement
JAMES GUSZCZA
US chief data scientist for
Deloitte Consulting LLP
HARVEY LEWIS
UK lead for analytics research at
Deloitte LLP
JOHN LUCKER
principal with Deloitte
Consulting LLP, Global Advanced
Analytics & Modeling market
leader, and a US leader of
Deloitte Analytics
JOE MARIANI
lead Market Insights analyst with
Deloitte Services LP focusing on
technologies and trends that cut
across industries
23. 23 Deloitte University Press | 5 key questions to ask about the Internet of Things | @DU_Press #DeloitteReview Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Meet the authors
SEAN PEASLEY
principal with the Cyber Risk
Services practice at Deloitte &
Touche LLP and the US
Consumer Business & Industrial
Products leader for cyber risk
services
ARUN PERINKOLAM
senior manager with the Cyber
Risk Services practice at Deloitte
& Touche LLP focusing on cyber
risk strategy and program
development
EVAN QUASNEY
manager with Deloitte LLP, with
extensive experience designing
and implementing IoT
applications for high-tech
manufacturers
IFRAN SAIF
principal with the Cyber Risk
Services practice at Deloitte &
Touche LLP, US Advisory
Technology leader, and a leader
of Deloitteโs CIO Program
BRENNA SNIDERMAN
manager with Deloitte LLP, with
extensive experience designing
and implementing IoT
applications for high-tech
manufacturers
24. About Deloitte University Press
Deloitte University Press publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. Our goal is to draw upon
research and experience from throughout our professional services organization, and that of coauthors in academia and business, to advance the conversation on a
broad spectrum of topics of interest to executives and government leaders.
Deloitte University Press is an imprint of Deloitte Development LLC.
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this
publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such
professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or
taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person
who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a
legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and
its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not
be available to attest clients under the rules and regulations of public accounting.
Copyright ยฉ 2015 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
Sign up for Deloitte University Press updates at http://www.dupress.com
@DU_Press