Hi. In this lesson, you will learn the key terms for discussing the Internet of Things or IoT and how these technologies relate to each other and provide more data for customer insights into action and engagement. As IoT is transforming consumer experiences and complete business processes from supply chain over manufacturing to distribution and customer service, it is important to understand some of the underlying technology concept or terms. This will provide you the foundation for our later discussions on how companies are leveraging IoT today and the opportunities for the future. By the end of this lesson, you will be able to explain the key terms and use that in the context of business scenarios. Let's start with the underlying technology a lot of this is built out. It's called Machine-to-Machine communication or M2M. M2M is a broad label that can be used to describe any technology that enables network devices to exchange information, perform actions without the manual assistance of humans. M2M is not new, and it's applied in industrial processes for a long time. Machine-to-Machine communication is an important aspect of warehouse management, remote control, robotics, traffic control, logistic services, supply chain management, fleet management, and even telemedicine. M2M communication is often used for remote monitoring of machines. The M2M technologies form the basis of a concept that we now call the Internet of Things. While there are no standardized connected device platforms for M2M systems today, there are a lot of different vendors and scenarios that are offering solutions both for home as well as for the industrial environment. Standard organizations like IEEE or ITU, companies like Microsoft, Google, Apple, Samsung, and even consortiums like Ultra are trying to bring some order in this environment, but those discussions are still ongoing. Key for you, as a market is to understand the desired customer engagement experience and know that there are many technology options available for you and your partners to implement on. So what is IoT? The Internet of Things is the computing concept of the Internet working of physical devices, vehicles, smart devices, and other items that are embedded with electronics, software, sensors, actuators, and network connectivity, therefore providing an IP address for Internet connectivity. That enables these objects to collect and exchange data with other Internet-enabled devices and systems. The Internet of Things allows objects to be sensed or controlled remotely across existing network infrastructure. It's creating opportunities for more direct integration of the physical world into computer-based systems. It's collecting data and providing data to computer system on it unprecedented scale, and that's resulting in improved efficiency, accuracy, and economic benefits in addition to reduced human interactions. IoT is the key platform, what we call as consumerization of IT. Concepts like smart cities and smart energy management systems and even the optimization of the supply chain management industrial processes are based on the technology of the Internet of Things. The concept behind it is basically that of connecting any device to the Internet. This can include anything, washing machines, cars, cell phones, microwave ovens, motor lamps, or anything else that can be turned on or off. It is already the largest network that will be connected to humans in every way. It connects things and things with people. IoT connections worldwide are growing at an unprecedented rate. In 2015, there was only six billion connected devices. That will increase to over 27 billion devices in the early 2020s. What's the difference between M2M, Machine-to-Machine communication, and the Internet of Things? Well, M2M is really that machines that use network resources to communicate with remote application infrastructure for the purpose of monitoring and control, either the machine itself or the surrounding environment. M2M with Internet protocols could be considered a subset of the Internet of Things and understood from a more vertical and closed point of view. On the other hand, the Internet of Things encompasses a more horizontal and meaningful approach, where applications are pulled together to address the needs of many. All M2M is not IoT, but all IoT has some Machine-to-Machine component in them. With the absence of human intervention, the data being transmitted over network focus is almost what M2M applications do, but IoT does more. It does so much more. It takes the data to process it further. The objective of traditional M2M systems is to perform some action based on automatic collection of data. The objective of IoT system is to derive value from the information that is collected. An aspect in the home environment, you might be familiar with of IoT, is what we call wearable devices. Those are electronics that can be worn on the body, either as an accessory or as a part of a material used in clothing. One of the major features of wearable technology is its ability to connect to the Internet, enabling data to be exchanged between a network and the device, a few different categories of wearables that you might have heard about, smart watches, fitness trackers, sport watches, head mounted display, even smart clothing or jewellery, and implantables to open a door and authenticate for itself. In the industrial world, we are speaking about the industrial Internet of Things. That's the use of IoT technologies in manufacturing and production. The industrial Internet of Things is a network of physical objects embedded with information and communication technologies. It brings together many of the key technologies of the digital transformation. The industrial Internet of Things, IoT, incorporates machine learning, big data technology, harnessing the sensor data, Machine-to-Machine communication and automation technologies that have existed in industrial setting for many years and combine them with the latest technologies around big data and AI and bringing this all together. Countries like Germany are calling the initiatives Industry 4.0. They're expecting and fostering that the industrial Internet of Things will transform companies and countries, opening up a new era of economic growth and competitiveness. We are experiencing that bringing together the connection of people, data, and intelligence machine will have far reaching impacts on productivity, efficiency, and the operation of industries around the world. Another term in the consumer environment you're probably going to hear sooner or later is NFC, that's the near-field communication. NFC is a set of communication protocols that enable two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within a very close distance usually four centimeters or less of each other. When one of the connected devices has Internet connectivity, the other then can exchange data with online services. And I've seen devices I use and contact these payment systems. To much was also used in credit cards and electronic smart cards. It allows mobile payments to replace and supplement traditional payment systems. This is sometimes referred to as NFC or CTLS, content less. NFC is used for social networking, for sharing content, photos, videos, and files. NFC enable devices connect as electronic identity documents in key cards. NFC offers low speed connection with simple server that can be used to bootstrap more capable wireless connections. What's next? Where is IoT going? It's really transforming consumer experiences and complete business processes. Already ordinary household items like motionless in life can be programmed to perform single task. So I advice you to go buy IoT device. Things are coming together, providing more and more information. This might lead us to something that is called ubiquitous computing, see into action of microprocessors into everyday objects like furniture, clothes, and toys. Using ubiquitous computing, people will not be aware of the presence of computers anymore. They will just be simply part of the background and create and improve hopefully their experiences. All of that, ubiquitous computing, combined with ubiquitous communication and intelligent user interfaces now can create something that is called ambient intelligence or AmI. It's an exciting new paradigm and information technology in which people are empowered through a digital environment that is aware of their presence and contacts, and it's sensitive, adaptive, and responsive to their needs, habits, gestures, and emotions. Ambient intelligence, the Internet of Things, artificial intelligence, robotics, nanotechnologies, and other developing trends are transforming the world to such an extent that the current scenarios is sometimes called the Fourth Industrial Revolutions. The scenarios we can imagine are really endless. Imagine you're meeting your friend in a restaurant and you could individualize your food or drink suggestions based on past preference and maybe what your personal status is right now. The experiences could be recorded and then later replayed. So, trying to go back two weeks later, oh! Look Sarah mentioned a movie title, which one was? Or I really like the orange juice, but what brand could that have been? When you're done with your dinner, your ride home is already waiting for you. You pay the bills with your devices and automatically from your accounts. Bringing all of these technologies together for customer and consumer experiences, though can be a challenge how we are engaging with our customers. The key for the customer experience to be positive is to ensure the consumer and customer feels taken care of, like I said on talks, and not under surveillance like in the 1984. Aren't the opportunities for much closer customer engagement exciting or maybe even they are scary? In an event we are moving to a world where such experiences will become possible. Now that you've gained familiarity with the key technologies and concepts around the Internet of Things, we will look at the IoT as a business itself and then next see how businesses are implementing and leveraging the Internet of Things, and we can join the journey. Other key terms and content you find in your research that other learners would be familiar with, which haven't mentioned yet, please raise suggestions and comments in the forum, and we all can learn more. Thank you very much.
