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INTERNET OF THINGS (IOT) AS KEY ENABLER FOR EFFICIENT BUSINESS
PROCESSES
Mehtab Alam1, Dr Ihtiram Raza Khan1
Jamia Hamdard, New Delhi
Corresponding Author email: mahiealam@gmail.com
ABSTRACT
Most of the failures in business are related to the unavailability of correct business data.
Internet of Things (IoT) brings in a huge promise in a number of functional areas related to
businesses in terms of enhancement, efficiency, rightness of information, development of
new and modern business processes and models and profit gains and loss.
The methodology which we propose in this paper constitutes from two key sources: The
literature review of the topic and the informal surveys. In this, Interviews of 8-10 business
managers of different organisations were conducted to get the correct feedback and business
data.
This paper aims to show how we can use IoT to make business functions efficient and
affordable. We try to provide a critical examination of situations and conditions where IoT
can be used and justified in business purposes. The main aim of the paper is to provide a
methodology which will be capable of providing wise and successful investment in IoT. The
paper points out conditions to maximise the success of IOT adoption in Business
applications.
Keywords: Internet of Things (IoT), Business process, RFID, NFC, Framework
INTRODUCTION
Internet of Things (IoT) is one of the most discussed and buzzed around topic in the research
field. The Internet of things implies to an umbrella keyword, that combines and covers the
top portions of the web and the internet into the viewable and the physical world. It is done
by the help of deployment of large numbers of sensor devices, actuators that contain unique
identifications embedded in them to identify them uniquely.
The term Internet of Things (IoT) has been around since the last few years. In recent time, it
is getting more attention due to one sole reason, the increase and advancement in use of
wireless technology. The basic idea is due to the variety of objects- such as RFID, NFC,
sensors, smart cameras, drones, actuators, smartphones phones, etc. which can interact and
communicate with each other by having a unique address. IoT empowers conventional
devices to see, hear, think and perform jobs by making them talk with one another, to
exchange information with one other and to synchronize data. IoT converts these native
devices from conventional devices to smart devices by upgrading its underlying technologies.
When IoT was first introduced, it was believed that Radio frequency Identification (RFID)
was necessary for its working. There are many technologies which are similar to RFID. Such
as, Machine to Machine (M2M), vehicular to vehicular communications (V2V) and Near
Field communications (NFC) which can help in implementing the modern idea of IoT [1].
IoT will have a big impact in making the life of the users and common people easier and
comfortable. IoT is having a dramatic impact on the domestic environment, with the
implementation of smart homes, smart roadways, smart healthcare, smart cars, assisted living
etc.
In the business sector, IoT has proved to have a noticeable and significant advancement in the
manufacturing and service industry. It helped in providing better services, more production,
more profits and superior quality. The widespread adoption of the technologies seems to be
easy and smooth, but, that’s not the case. It involves and number of issues that need to be
sorted out and looked after constantly even after deployment of the complete system. The
major concern in the deployment is the security of the IoT devices from hackers and thieves.
Some of the other problems in IoT implementation are issues with worldwide accepedt
standards, unique addressing problems and scalability etc. Due to this reason, intensive
research is needed to resolve these complicated issues. Cisco approximates that IoT will
consist of 800 billion devices connected to the Internet by 2025 and will achieve deeper
insight with analytics using Cisco IoT System to enhance productivity, generate new revenue
streams and create new and unique business models [2].
IoT devices and services have reached an acceptance level of 20% adoption in 2019 as
compared to 18% in the previous year. DBS Asian Insights predicted that the IoT installation
base will grow from 6.3 million connected units in the year 2016 to 1.25 billion connected
devices by the year 2030 [3].
LITERATURE REVIEW
In i2010, iY. iLu, iX. iLi, iJ. iZhong iand iY. iXiong i[4] iproposed ian iinnovative ibusiness istrategy
imodel iby ianalysing ithe iqualities iof iGreen iAgricultural iproducts, icombining ithe iuse iof iIoT.
In i2011, iQian iXiaocong iand iZhang iJidong i[5] iproposed ithe istructure iIoT ibusiness ioperation
isupport iplatform i(BOSP). iThey iintroduced ithe idevelopment iof iIoT, iand ifocused ion icarriers
ithat iplay ileader irole iin iIoT iindustry ichain.
In i2013, iF. iBerkers, iM. iRoelands, iF. i Bomhof, iT. iBachet, iM. ivan iRijn iand iW. iKoers i[6]
iinvestigated ihow ito ibring ivalue iand ieconomies iof iscale ito iall ithe irequired iecosystem
istakeholders iusing ia ismart ihorizontal iIoT iservice iplatform.
In i2015, iM. iIde, i Y. iAmagai, iM. iAoyama iand iY. iKikushima i[7] iproposed ia ilean idesign
imethodology ifor ibusiness imodels, iwhich irepeatedly idesign ibusiness-model ihypotheses iin
iresearching imanner, imoreover, iwith iwhich icorporate ibusinesses ican icreate inew ibusiness
ivalue iutilizing iIoT.
In i2016, iM. iBagheri iand iS. iMovahed i[8] iinvestigated iand ianalysed ihow iIoT ihas ichanged ithe
iEducation iBusiness iModel. i
J. iJu, iM. iKim iand iJ. iAhn i[9] iaimed iat ideveloping ia igeneric ibusiness imodel iframework ifor
iIoT ibusiness ithrough iliterature ianalysis iand iinterviews. iTo itest ithe iproposed ibusiness imodel
iframework, ithey iundertook icase istudies iof icurrent iIoT icompanies. i
In i2017, iA. iOnasanya iand iM. iElshakankiri i[10] iproposed ithe iimplementation iof ian iIoT
ibased ihealthcare isystem ifocusing ion itwo iservices, inamely, icancer icare iand ibusiness
ianalytics/cloud iservices. i
U. iRaza, iJ. iLomax, iI. iGhafir, iR. iKharel iand iB. iWhiteside i[11] ibuilt iupon ia inovel iarchitecture
ifor imonitoring ithe iμIM iprocess iusing: iIoT idevices; idistributed iService iOrientated
iArchitecture i(SOA), iwith ithe iEnterprise iService iBus i(ESB) iat iits icore; iBusiness iProcesses
ifor ilinking iwith iother istandard iprocesses iand iGoogle iApplications ifor iweb imonitoring. i
A. iAli, iI. iEl-Dessouky, iM. iAbdallah iand iA. iNabih iproposed iSitechain i[12] ia inew
iarchitecture ito iintegrate iIoT iplatforms iwith iblockchain itechnology. i
F. iMartins iand iD. iDomingos i[13] isaid ithat ias ithe icomputational ipower iof iIoT i(Internet iof
iThings) idevices iincreases, ibusiness iprocesses ican iuse ithem ito iprovide iinformation iabout ireal
iworld ias iwell i as ito iexecute ipart iof ibusiness iprocesses, ireducing ithe iamount iof iexchanged
idata iand icentral iprocessing.
In i2018, iS. iMahendra, iM. iSathiyanarayanan iand iR. iVasu i[14] isaid ithat ithe imain iaim iof itheir
ipaper iwas ito ienhance ithe itraditional isecurity ibusiness imodel. iThe isecurity isystem ibased ion
ithe iIoT iplatform ihad ithe ipotential iof iinteracting ireal-time iwith ithe idevice. i
K. iRouth iand iT. i Pal i[15] iemphasized ion ithe idifferent iinfluencing iaspects iof iIoT, inamely
iTechnology, iBusiness iand iSociety. i
K. iSaraubon, iN. iKongsanit iand iN. iSantawesuk i[16] ipresented ian iIoT i& imobile-based isystem
ifor ibusiness. iIt iwas idesigned iand ideveloped iin ithe iform iof ia icase istudy iof ia iquick iservice
irestaurant.
In i2019, iA. iAagaard, iM. iPresser iand iT. iAndersen i[17] icontributed itheoretically ito idigital
itransformation iand i business imodel iliterature iin iunderstanding ithe iinfluence iof iIoT iand
idigital itransformation ion idigital ibusiness imodels. i
N. iChandra, iS. i Khatri iand iS. iSom i[18] itried ito iexplain ithe iapplication iof iIOT iin idifferent
iaspects iof iour iday ito iday ilife iand iin iIndustry iand ibusinesses. i
I. iLee i[19] ipresented ian iIoT iecosystem, iIoT iarchitecture, iand ithe iIoT iservice ibusiness imodel
iessential ifor i the iselection iand ideployment iof iIoT iservices iin ivarious ienterprise iand ibusiness
isettings. i
V. iTsiatsis, iS. iKarnouskos, iJ. iHöller, iD. iBoyle iand iC. iMulligan i[20] idescribed ithe idrivers ifor
ithe iInternet iof iThings i(IoT) ifrom ia ibusiness iperspective. i
IOT FRAMEWORK /ARCHITECTURE
Proposed IOT Framework
An IoT framework is an architecture that enables connectivity between “things” or devices.
An accurate IoT platform comprises of 8 basic and important architectural building blocks
[21]:
i. Connectivity & normalization: It brings different protocols and different formats of data
in one software interface ensuring and providing accurate data flow and interaction
between all devices.
ii. Device management: ensures the connected “things” are working properly, seamlessly
running patches and updates for software and applications running on the device or edge
gateways.
iii. Database: Scalable storage of data generated by devices creates the requirement for
hybrid cloud-based databases to a new level in terms of data volume, variety, velocity
and veracity.
iv. Processing & action management: It brings data and devices to life with actions based on
rules and events which in-turn triggers execution of smart actions based on specific data
from the sensors.
v. Analytics: It performs a number of complex analysis, on the IoT data-stream, from basic
data clustering and deep machine learning to predictive analytics. Meanwhile, extracting
the most valuable outputs.
vi. Visualization: It facilitates humans to recognize patterns and observe most common
trends from visualization dashboards. The data is represented through line, graphs, or pie
charts, etc.
vii. Additional tools: It permits visualizing the connected devices as well as managing and
controlling them. Prototypes created by IoT developers are tested and marketed and the
IoT use cases create platform ecosystem.
viii. External interfaces: they help integrate third party apps, systems and the other IT-
ecosystem with help of application programming interfaces (API), software development
kits (SDK), and gateways.
Figure 1: Databases and APIs
Frameworks help the developers by abstracting all the common functions and giving out the
specific logic of the application. A good architecture dramatically reduces the cost of
developing applications and maintaining them. IoT platforms are ae cost effective because
different frameworks are used to solve specific or different problems or needs. For example
Enable the rapid development of software applications.
Automate the management of connectivity.
Gather, integrate and provide report on device data in real-time.
Enabling direct device management into backend IT systems
Some of the top IoT Platforms are listed below [21]:
AWS IoT
Microsoft Azure IoT Suite
Google cloud
Cisco IoT system
Enterprise Integration with Internet of Things (IoT)
Enterprise integration refers to joining two or more separate programs, applications, or
machines with the services of other systems. It is the use of services and technologies within
an enterprise which enables the integration of applications and hardware systems. Enterprise
Integration provides the ability which integrates the diverse data and information, sourced
from within as well as outside enterprise into a single unique coherent framework. A
cohesive infrastructure of information can be shared by applications such as customer
relationship management, executive information portals, dashboards, reporting systems and
automated supply chain systems. Due to the intercommunication between the various
enterprise applications and Internet of Things an advanced level of automation is created that
requires minimal manual/human intervention. Integration of IoT into enterprises requires the
extension of connectivity from the enterprise and the cloud to the IoT devices present at the
edge of the network.
Architecture of Enterprise IoT consists of layers. The IoT work group of the Eclipse
Foundation discussed it in the white paper, The Three Software Stacks Required for IoT
Architectures [23]. The technology stack of IoT consists of three levels: sensor devices,
gateways, and the data centre or cloud IoT platform. IoT system consists of many devices
that may uses a gateway to communicate to the back-end server of the enterprise which is
running an IoT platform/software that helps in integrating the IoT information received into
the existing enterprise [23]."
The main work of the IoT devices is to gather information with the help of sensors that are
embedded in them, like smart phones, computing devices, wearable devices, autonomous
devices and appliances. They collect information and data about their adjacent physical
environment, such as light, ambiance, pressure, wind speed, humidity, vibration and
chemistry, speed etc. Standard-based wired and wireless protocols are then used to transfer
the generated telemetry data from the device to the cloud. It is generally telemetry data, but it
can also be some command and control requests. The devices layer is the foundation of an
IoT stack [24]. Legacy peripherals that have been there for decades and intelligent, connected
and modern devices, together, comprise of the core. Every unit or device is, in its own
manner, has the capacity of acquiring data from a number of sensors that keep track of the
required critical parameters. These devices, at certain situation, can be used to change and
control the state of the equipment also. For example, turning off a machine when a fault is
encountered. The devices layer also represents the present state of the devices and the ability
to control them, for some devices.
Figure 2: Enterprise integration with IoT
The control tier or the gateway is an intermediate layer that enables communications, offloads
processing jobs and drives action [24]. Since some sensors generate a huge number of data
points every minute, the gateway provides a point to pre-process the data near the data
generator before transferring it further to the next level, the cloud. During the pre-processing
stage, the gateway can eliminate any redundant, repeated or unwanted data which in turn
reduces the volume of unwanted data from being sent to the cloud. Reducing the volume of
data and/or removing noises can drastically reduce the data transmission costs. The control
tier is bidirectional i.e. it can control the devices also, such as configuration changes, and it
can give responses to data tier command-and-control requests, for example a password check
for user authentication.
The data centre/cloud tier consists of huge databases and unlimited processing and
computational powers. It executes and processes big data to produce useful information that
helps in increasing business value. It analyses the data in order to give insights which help in
creating new business rules and strategies on the basis of historical data present, and then
creating new and useful business rules downstream. It needs to scale in order to
accommodate and support the exponentially increasing number of connected smart devices,
and to implement and develop various different IoT solutions. Some of the functionalities of
the IoT data centre are device management, event processing and analysis, connectivity and
message routing, data storage, and application integration and enablement.
The functional capabilities of an IoT enterprise can be measured by the efficiency of its
software platform since it manages a huge number of devices, stores and saves the data,
performs analysis on the data and then gives insights to the decision makers. It functions as
the middleware that manages the data flow. Since the cloud is elastic, reliable and scalable, it
becomes the best deployment environment for IoT devices.
IOT APPLICATIONS IN BUSINESS
Manufacturing
The growing manufacturing industry will benefit the most from the integration of this
technology in the workplace. Manufacturers are leveraging this solution to track the flow of
production on the supply chain. Data collected these IoT sensors is being utilized to monitor
each component of a product. Companies can also use this data to improve the quality of a
product, as well as enhancing workplace safety.
From the ability to collect big data and metadata to make better decisions, or leveraging
insights to create more efficient technologies to maximize cost saving, to the environmental
impact that data and technologies can provide, IoT is reshaping the way manufacturers
produce goods and drive revenue and efficiency [25].
Healthcare
The healthcare industry, initially, was a slow adopter of IoT. In 2016, Internet of Things in
healthcare was allocated only 14% of IT budgets. Fast forward over two years later, and the
healthcare industry is embracing this technology at a rapid pace. Medical facilities are using
IoT to cut costs and improve the quality of care that patients receive. With help of this
technology, the industry has increased the usage of remote patient monitoring with different
devices, and the popularity of telehealth (or telemedicine) has increased. The data collected
from different sensors are being used to manage patients, staff, and to reduce emergency
room waiting room times.
Transportation and Logistics
IoT is changing the way that the transportation industry operates. IoT Sensors attached to the
vehicles track the exact locations where they are on their routes. The data from the sensors is
used to determine precise delivery times, and rerouting vehicles in case of an accident or
inclement weather. It can also track fuel consumption, which will improve fuel efficiency and
lower costs.
Transportation companies have the opportunity to become the model for best practices in IoT
[25]. “Sensors, mobile scanners and other Internet-connected devices are being used to
manage a multitude of different variables including warehouse management, schedules and
transportation routes, fuel efficiency, theft etc.
Retail
IoT is impacting every end of a retail operation. The IoT technology is immensely improving
the customer experience, which includes beacons that push out more relevant messages at the
point-of-sale, and automated checkout capabilities in the front of the store. Retailers are
leveraging the solution to enhance inventory management, with smart shelves that track
which items the store is running low on. There are also capabilities that alert stores when
theft has occurred, which saves both time and money. All of these benefits allow retail
operations to cut back costs and it empowers workers to focus on more meaningful tasks.
Financial Services Industry
IoT is reshaping the entire financial services industry, with enterprises leveraging the new
data to gain deeper customer insights, and to deliver more personalized offers. In banking,
IoT devices are the first line of defence used to prevent theft in ATMs. Insurance companies
are using the data from sensors to determine potential risks and future pay-outs to customers.
The usage of this technology in financial services is expected to surpass $2 billion in the next
five years.
IoT Challenges That Business Enterprises Are Facing
At the present, business enterprises and companies are facing immense competition from
each other, challenges other than this are just beneath the surface. If internet connected
devices are integrated into any business process, they are there to be present, we cannot get
rid of them. However, they may face some new challenges and vulnerabilities that may
provide hinderances in their ability to complete the required task.
Some familiar challenges that businesses might face with using IoT devices, and to keep the
enterprise better prepared for them, are [26]
Security at Stake
IoT is increasing in popularity at a very noticeable speed, so are its security threats. The
company's data is at a greater risk of being compromised on IoT devices. However, the more
one is prepared, the better it will protect the business. The simple rule that applies in IoT is to
have security of the big data and IoT devices a priority from the start of development.
Issues with privacy
The main data collectors for IoT are remote sensors, and it could make the privacy aspect of
the business open to all. Business enterprises and companies do not want IoT devices and big
data to be available to everyone, or at least to certain groups and people. Data going to
unwanted hands can lead to be dangerous or even fatal in some cases of medical and assisted-
living applications.
Handling Complexity
IoT is an interconnection of a large number of devices and all these devices work
simultaneously. Data collection can lead to some potential issues. Theis drawback can be
removed by devising and implementing a framework that allows flawless connection between
the different IoT devices and are secure from intruders.
Generating Insights May be Tough
At the pace with which big data is being generating by IoT, sooner or later, at some point in
time, it will be complicated to track the precious/useful information. The collection of data
should be transparent and in a manner that makes information and data easy for everyone to
understand and use it.
CONCLUSION
The methodology adopted and the proposed framework gave a clear indication of possible
support for the conclusion that Indian business system is ready for IOT innovations and
transformation from traditional business sites into smart environments at best performance
values.
The business sector has appreciated the role of IOT in the success of its functions. According
to our surveys in over 10 companies in 10 cities, the acceptance is likely to rise to over 50%
in 2020.
IOT has made visible advancement in service and manufacturing such as superior services,
increased production and unprecedented quality at affordable cost. Improved business
insights and customer experience, cost and downtime reductions, asset tracking & waste
reduction are other few advantages of the approach.
In our surveys and findings, we have seen that there are problems related to security, privacy
and standardization still acting as a bottle neck in the success of IOT. Security framework has
to be strengthened to get the best out of this methodology.
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