Building the Internet of Things: Implement New Business Models, Disrupt Competitors, Transform Your Industry

A simple and effective way to connect your organization to skyrocketing profits

As billions of standalone devices across the world are getting connected, the Internet of Things (IoT) has become one of the most talked about technology trends. But IoT is not really about technology and connected devices. At its core it is about business outcomes and people; it is about new ways of doing business, talent and change management; it is about migration to open technologies and open business structures based on co–development and ecosystems of partnerships; it is a multi–year, multi–phase journey. So how do you get started? How do you implement IoT to transform your business, adopt new business models and grow new revenue streams? This book will answer all of these questions, and more.

Building the Internet of Things brings innovative business and technology strategies to every business–to–business (B2B) market segment and opens up a progressive world of possibilities to increase both top– and bottom–line results. This book has been written specifically for front–line business decision makers at companies of all sizes who need a practical handbook to get the ball rolling in a tangible way. This dependable resource looks at IoT from a business, strategy, and organizational standpoint. It walks you through identifying the areas in your organization ripe for an IoT–based makeover with the quickest payback on investment. A wide array of real–world examples from organizations across the globe presents you with insights into tailoring IoT for your company without reinventing the wheel. Along the way you will learn how to:

Implement open standards to integrate all your technologies, old and new, with your workflows to achieve high–impact business outcomes Secure your organization′s data and assets with a continuous risk management approach built on a comprehensive architectural foundation Avoid common pitfalls and mistakes, as well as recover from setbacks without getting off track

Building the Internet of Things shows you how to turn disruption into profits and long–term business success.

Foreword ix

PART 1  A Secure and Transformative IoT Now 1

Chapter 1 Beyond the Hype All You Actually Need to Know About IoT for Business 3

Generation IoT Drives Business Survival in the 21st Century 7

A Revolutionary Economic Opportunity 12

IoT Background A Brief History 14

IoT Today Digitally Transforming the World 18

Why Now: Three Driving Trends 19

A Perfect Storm of Technology, the Economy, and Culture 23

Key Obstacles 25

Scope of the Book 26

How to Read This Book 28

Chapter 2  IoT Is About Change and Transformation 31

Change as the New Status Quo 32

People, Process, Data, Things 36

New Conceptual Paradigm 38

Operational Elements of IoT Success 39

Why Digital Adoption/Transformation? 43

Chapter 3 The Promise of IoT Is Real 47

IoT Creates Opportunities 51

The Growth of IoT 58

IoT Is Just the Beginning 61

Emerging IoT Ecosystem 64

Startups Join IoT Ranks 67

Collaborate at the Next Level 72

Chapter 4  Understanding the IoT Business Value Proposition 75

Delivering Payback and Business Value 78

Building an IoT Cost Justification 82

Components of IoT Payback 85

Helpful Hints 87

Data Data Everywhere 90

Chapter 5 Four Fast Paths to an Assured IoT Payback 95

Steps in Starting an IoT Project 99

Aspirational Payback 116

PART 2 Making IoT Work for Your Organization 121

Chapter 6  Generation IoT Goes to Work 123

More and Diff erent Workers 125

Finding Workers 128

New Positions and Old Positions with a New Twist 132

Interesting IoT Careers 137

IoT Visionaries Yes, This Will Be a Career, Starting Now 142

Chapter 7 Bringing IoT Into Your Organization Change Management 147

IoT Solutions 149

Change Management Required 152

Change as the New Status Quo 153

IT/OT Convergence and Other Workforce Issues 155

Changing Roles and Golden Opportunities 158

Learn and Share 159

The Co–Economy 161

Obstacles to Change 163

Exciting IoT Exercise 165

Get in Front of the Coming Change 166

Chapter 8  Mistakes and How to Avoid Them 169

PART 3  Glimpse Under the Hood of IoT Today and Tomorrow 179

Chapter 9  IoT Security Essentials 181

Physical Separation Provides No Defense 182

Security as One More Risk Management Challenge 184

Radical New Security Approach 187

Some Additional Considerations 191

Perspective from the Experts 193

Challenges of IoT Security 197

Privacy 198

Security as Your IoT Foundation 200

Chapter 10 Standards and Technology 203

The Case for Standards 204

Overabundance of Access Technologies 207

Common IoT Framework 207

Business–Relevant Standards Activities 210

New Technology Arrivals 213

Chapter 11 IoT State of the Union 221

New Economy 223

Winners and Losers 224

State of the IoT Union Today 227

Era of Innovation and Disruption 229

IoT and the Co–Economy 234

Unavoidable Fact of Life 237

Notes 240

Glossary 245

Acknowledgments 251

About the Author 253

Index 254

Maciej Kranz is vice president of the Corporate Strategic Innovation Group at Cisco Systems. He leads the team focused on incubating new businesses, accelerating internal innovation, and driving co–innovation with customers, partners and startups through a global network of Cisco Innovation Centers. Prior to this role, he was general manager of Cisco′s Connected Industries Group, where he drove IoT business for key industrial markets.