Sunday, February 26, 2012

The Internet of Things

I'll begin my 2012 musings with a discussion of the Internet.  A digital information network that has been hyper-refined in the past decade to the point of resolving a Marketers once unachievable dream: 1-to-1 commercial messages.  The convergence of several technologies (geo-location, AI algorithms, wireless) now make it very possible for commercial messages to be acute, timely, and accurate for the individuals receiving them.  Those who participate heavily in the Internet have experienced this giant learning-machine and are very aware of how clever Google is in following them around.  For a humble computer network originally begun for the purposes of scientific research and review, the Internet now is purely a commercialization engine and one that is an increasingly apt business person.  This is being led by the comical amount of web/tech firms still setting up ship in the valleys of Southern California.  A drive through this area is like Cirque Du Soleil with acts such as Zynga and Twitter.  What's important to understand is the commercialization of the Consumer Internet is leading to big things for Industry.

Industrial communication and business understanding used to be a grab-bag of trend analysis tricks and executives knew it was a dismal science, but big and little corporate ships were steered in such ways.  "Business Intelligence" didn't even enter corporate jargon until the late 1990s.  In the oddest of stories, advancements in the consumer Internet is benefiting Industry, which is not the norm, to change this.  Industry usually works through problems or opportunities and passes the knowledge, products, or services to consumers.  Or consumers only benefit from certain things because they exist for Industry (i.e. the electricity grid).  By this I mean the consumer 1-to-1 Internet has ushered in the technologies, processes, and culture of Industrial Internet: the Internet of Things.

Micro-chips that require no electricity, can sense variables around them (i.e. temp, movement, etc.), and make educated decisions are the keystone to the Industrial Internet.  Whereas the Internet has been largely a digital facade for humans being, it is now perfectly possible for Things to be part of it as well and Industry can therefore refine their understandings and business management to micro levels.  The possibilities are truly endless. Every assembly-line widget can get itself to the correct destination, traffic signals can adjust to context, buildings adapt to the weather by the minute.  Mail-delivery persons only check boxes that have mail and tires talk to drivers.  Firms are beginning to scratch the surface of this network, but know that many are pouring cash into new ideas that exploit it.

A Final Dash of Salt...
I'm very interested in the Industrial Internet as it pertains to energy use because it's part of why the 120 year old Utility industry is being flipped on its head right now.  Dumb energy has always been consumed in dumb ways.  The Internet of Things is a game-changing force in the worlds of conservation, efficiency, and power management.  Don't worry though, Skynet is not here yet!