IoT: what lies behind the buzz

The Internet of things is just a further extension of the internet into our physical world.  Currently the technology is into evolution. It is further segmented into:

  • B2B: Commercial, Infrastructure and Industrial
  • B2C: Consumer

Smart, Connected & IoT

The above three terms are used loosely and interchangeably but they mean different things. It is important to understand the difference between the three.

club de rencontre plus de 50 ans Smart Product: Any system that has an embedded system integrated with it. They have been around for half a century now and simply having an embedded system doesn’t create that much value.

site rencontres 82 Connected Product: They have been around for a long time too. They are two products connected to each other. eg: Fridge to your smartphone.

rencontre roland garros IoT Product: a software-defined product and a hardware defined product connected by the network fabric and interfaced by the external system. They collect data and transform it into useful information.

Understanding IoT

The IoT is divided into four parts, namely:

  • Software Defined Product
  • Hardware Defined Product
  • Network Fabric
  • External System Interface

Software Defined Product

The Software-defined product is the brain of the IoT Product. This is the key source of differentiation between IoT and connected or smart product. This is further divided into the following two:

Cyber Model

The Cyber Model is a mathematical model used to represent the behavior of the real world. The best example of this is a site de rencontres sérieuses spring. We do an empirical study and determine the behavior of the spring. With a bit of abstraction, we are able to come up with a model to represent the behavior of the spring.

Mathematical Representation of a Spring

Now once we have developed a model for the behavior of the spring, we use this mathematical equation instead of the real equation to attribute to the behavior of a spring.


The application provides multiple services to the user. It defines the functionality, the user and the data interface of the system. The application acts on the cyber model, defining parameters with different means of inputs. The inputs/ the data can come from many sources, for instance the human interface of the sensors on the system. It is important to note that an application layer can reside at various locations starting from on the embedded system itself, all the way to the product server or a remote cloud.

Hardware Defined Product

The function of the Hardware Defined Product is to capture data from the sensors, sometimes process and then transfer it to the network and further to the application. It contains two types of systems

Connected Systems and actuators

The sensor gathers data from the physical environment and the actuator makes physical changes to the product.

Embedded Systems

The embedded system gathers the data, packages it and then further sends it along the network to the application layer. They may include radios or chipset and work on real-time operating systems. They manage the communication between the sensor and OT Network. They also at times store and execute local applications and are also responsible for the security.

Network Fabric

The main job of the network fabric to facilitate the communication between the software-defined product and internal (hardware defined product) and external(external systems).

The Information is packaged ( similar to network layers in Communication) into layers.

OT, IT & Fog Network

OT (Operational Technology) Network is the network that enables the functioning of the product. It enables the transfer of information within the product. The IT Network is responsible for connecting the product to the cloud. The fog connects the OT Network to the IT Network. It takes the data from the sensors to the backhaul that uploads it to the internet. Lately, there has been a trend of moving the computing close to the data source ( MIST Computing).

Product Cloud

The product cloud is a high powered personal computing extension of the IoT Product.

External Systems

External Systems relate to all the available data on the internet that can be accessed with the help of an API.


Analytics transformed into useful information. There are three major kinds of analytics:

Data Services

Sources of data available on the internet.

Business Systems

Internal operation data of the IoT that can be useful for business

Other IoT Product


Value Creation

There is a trio of value in the IoT system. Most of the value that is extracted from an IoT system is in these layers:

  • Cyber Model
  • Application
  • Analytics :
    • Looking into the past: Report on something that has happened
    • Looking into the present: Monitor something that is happening
    • Looking into the future: Determine the outcome of current variables

We follow a three step process for creation of a valuable IoT Product. I’ll try to explain this with an example: IoT Fridge

  1. Define the Value Proposition
    Keep the vegetables fresh and cool, at the minimum money while maintaining its flavor and smell.
  2. Quantification of the value proposition
    Thus we need to maintain the ventilation and the heat. Thus,
    time/ energy = f(ventilation, heat, energy prices)
    To quantify these variables, we need to capture a few variables like fan speed, heat temp, energy prices etc. 

    These variables further lead to the expectation on the sensors that need to be included
  3. Using analytics to convert data into information and further decisions
    Based on the cooling of the fridge, when to shut down the fan. 

Main Takeaways

The value of a network increases exponentially with the number of its sources – Matcalfe’s Law

V α n2

Value Creation in IoT

To derive value out of an IoT Product, it is important to transform the data that is collected from the sensors to useful information. Thus for designing an IoT product, we follow a reverse approach.

Value → Information → Data Required → Sensor

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