Connect your organization to the Internet of Things with solid strategy and a proven implementation plan
Building Internet of Things provides front-line business decision makers with a practical handbook for capitalizing on this latest transformation. Focusing on the business implications of Internet of Things (IoT), this book describes the sheer impact, spread, and opportunities arising every day, and how business leaders can implement IoT today to realize tangible business advantages. The discussion delves into IoT from a business, strategy and organizational standpoint, and includes use-cases that illustrate the ripple effect that this latest disruption brings; you'll learn how to fashion a viable IoT plan that works with your organization's strategy and direction, and how to implement that strategy successfully by integrating IoT into your organization tomorrow.
For business managers, the biggest question surrounding the Internet of Things is what to do with it. This book examines the way IoT is being used today—and will be used in the future—to help you craft a robust plan for your organization.
- Grasp the depth and breadth of the Internet of Things
- Create a secure IoT recipe that aligns with your company's strategy
- Capitalize on advances while avoiding disruption from others
- Leverage the technical, organizational, and social impact of IoT
In the past five years, the Internet of Things has become the new frontier of technology that has everyone talking. It seems that almost every week a major vendor announces a new IoT strategy or division; is your company missing the boat? Learn where IoT fits into your organization, and how to turn disruption into profit with the expert guidance in Building the Internet of Things.
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About the Author
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.
Table of Contents
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
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
About the Author 253
What People are Saying About This
“Maciej (Kranz), one of the pioneers of IoT, has masterfully captured best practices and combined them with practical guidelines to help readers begin their own IoT journeys . . . I recommend business and technical managers from every industry read this book to understand how to achieve faster innovation and higher productivity from a successful implementation of IoT.” —Keith Nosbusch, Chairman, Rockwell Automation
“Too often, experts view IoT and digitization as being about the young. The reality is that IoT will change the future for all of us. In Building the Internet of Things, Maciej Kranz highlights how ‘Generation IoT' includes all of us, regardless of age, gender, location and background. Whether you are fresh out of college, or are one of the many established workers looking to re-skill, IoT brings opportunity for everyone. Building the Internet of Things provides a great primer on the ways IoT will change our lives, and industries, for the better.” —Vernon Turner, SVP, Enterprise Research and Research Fellow, Internet of Things - IDC
“It has been an honour working with and getting to know Maciej over the years. In Maciej’s role at Cisco as the Vice President Corporate of the Strategic Innovation Group, he has pioneered and driven Cisco’s IoT innovation efforts. His book cuts through the hype and offers practical advice to business decision makers on how to implement IoT today.” —Scott MacDonald and Whitney Rockley, Co-Founders of McRock Capital
“With all the hype surrounding IoT today, Maciej Kranz's, Building the Internet of Things provides organizations with invaluable practical advice and a blueprint on how to get started, and will help them to avoid some of the potential pitfalls as they progress further towards digital operations.” —Tim Jennings, Chief Research Officer, Ovum
In Building the Internet of Things, Maciej Kranz shares personal anecdotes, market case studies and practical guidance to help readers successfully create and fast-track their IoT strategies. His insights offer a route for organisations to develop an IoT journey planner that is right for their needs and goals. —Bola Rotibi, Research Director and Founder of Creative Intellect Consulting and Lead Author of ADT Magazine’s IoT Think Tank Column
Most Helpful Customer Reviews
Summary: Review Reiner Petzold This is an excellent book with valuable informations and professional on the highest level with many real practical examples. Easy to read and understand perfect - a Bestseller! ======================================= Rating: 5 stars ***** ======================================= > Book: Building Internet of Things (IoT) 1. This is a perfect practical handbook for the daily work and on this latest transformation. 2. Focusing on the business implications of IoT, this book describes the sheer impact, spread, and opportunities arising every day 3. Helpful and how business leaders can implement IoT today to realize tangible business advantages. 4. Support for discussion delves into IoT from a business, strategy and organizational standpoint 5. Good real use-cases that illustrate the ripple effect that this latest disruption brings 6. We can see and learn how to fashion a viable IoT plan that works with your organization's strategy and direction 7. Important points to implement that strategy successfully by integrating IoT into your organization tomorrow Conclusion: All these seven things (7 facts) are very significant for the professional work.
It is not very often that I am compelled to write a review, but this book essentially left me with no choice. Internet of Things or IoT has been on the front pages of so many publications for a few years now so why do we need this book you might ask. The answer is simple, this book is about real business, real use cases, and real monetization opportunities. Practical applications of IoT are often overlooked and underappreciated, but these are real use cases discovered in real business and I am glad that the author had the desire and the foresight to focus on them. This book is practical and approachable at the same time, it is about real business and could be exceptionally useful for professionals wrestling with the task of embracing IoT in their organizations. Due to the multi-discipline nature of the IoT the implementation path could often be confusing. This book is full of practical tips and filled with best practices and lessons learned so that you don’t have to re-invent the wheel and find great scenarios that can help guiding an implementer through the challenges. Two chapters I found especially useful: - Chapter 5: four scenarios to fast paybacks – these are IoT solutions that dozens of organizations have implemented – you can use them as a tool box and pick the right tool to start your initial small IoT project - Chapter 8: common mistakes and lessons learned – learning from author’s years of practical experience – we all should learn and share to accelerate our progress on this new path I believe that it is a must-read book for technology and business leaders – it should help us to understand how our customers would like to adopt IoT and how we can organize our IoT efforts to address our customers’ business and technology needs.
This is a book that needed to be written. A practical down to earth business book on what the Internet of Things (IoT) is about. Starting with the history of IoT, where the economic value lies, the digital disruption that it is causing and the next great wave of growth compelled by the IoT. Maciej Kranz includes an essential "how to" path forward for leaders to get started now. He includes concrete examples of how companies and industries are benefiting today. As a speaker and thought leader in this space for quite a while, Maciej is the ideal person to write this business primer. If you want to understand what the IoT is, where to get started, or how to find the value, I highly recommend this book.
If you believed all the hype about the Internet of Things (IoT), you would expect to see machines doing everything from building your houses to tying your shoes in the next few years. “Building the Internet of Things” separates hype from reality and provides a practical guide for implementing IoT in your business—starting with small, fast-payback projects that can pave the way to large-scale deployments. This is an approachable guide, written with humor and rooted in many years of industry experience. Could be a great add to every business leader’s holiday gift list!
This book is a must read if you want a better understanding of the Internet of Things. This book doesn't just help explain what IoT exactly is, it shows how it should be properly implemented today. Using concrete examples from Harley-Davidson, Ford, etc. Maciej Kranz lays out just what we should all be doing in order to make IoT a success. This is, of course, vital to someone like me that works in the IoT world, but it's equally valuable to those who don't really "get" IoT yet. This book shows you why you need to "get" IoT, or going to "get" left behind.
The Internet of Things (IoT) is one of THE most significant technology transformations societies across the world will make. It's proliferation will usher in the adoption and context for everyday technology like no other. In this book Maciej Kranz, with his IoT and innovation experience from Cisco, makes the esoteric common, the hype into reality. Highlighting real world examples from a wide-range of verticals from both B2C and B2B, this how-to-guide is must have for anyone who works in or near the IoT space.
Maciej Kranz makes a solid business case for the Internet of Things by citing numerous examples of blue chip companies already realizing dramatic returns from their IoT investments. For example: + Harley-Davidson increased the productivity of one of its plants by 80% percent; reduced its build-to-order cycle from 18 months to two weeks; and saw an overall profitability increase between 3-4 %. + Ford Motor Company uses IoT technology to connect communications among its vehicle plants to its enterprise network and to manage production in real time. + And PepsiCo leveraged IoT technology to improve the reliability of its plant manufacturing systems, reduce both downtime and support costs, and enable remote monitoring by its support staff to address technical challenges quickly. Kranz, a Cisco executive, describes how similar gains are being achieved across agriculture, city planning, education, healthcare, retail, sports and entertainment, and the military. McKinsey & Co. projects that the first nine impacted industry segments of IoT will expand as follows: + Vehicles: autonomous vehicles and condition-based maintenance (with an estimated value of $210 to $740 billion) + Cities: public health, energy saving, and transportation & logistics ($930 billion to $1.7 trillion) + Outside: logistics and navigation ($560 billion to $850 billion) + Human: health and fitness ($170 billion to $1.6 trillion) + Worksites: operations optimization and health & safety ($160 billion to $930 billion) + Retail environments: automated checkout ($410 billion to $1.2 trillion) + Factories: operations and equipment optimization ($1.2 billion to $3.7 trillion) + Offices: security and energy ($70 billion to $150 billion) + Home: chore automation and security ($200 billion to $350 billion) All very convincing. So why don't we generally hear about these transformational business changes? The author suggests several reasons. First, we have been overwhelmed by IoT hype that heralds billions of connected smart devices and trillions of dollars of economic opportunity. These messages contributed to a lot of confusion among industrial managers on how IoT applies pragmatically to their focus on solving real day-to-day business problems. OK, everything is connected, Well, so what? Lastly, most of the media attention has focused on IoT-enabled homes, while industry has steadily and less boisterously advanced IoT in factories, mass transit systems, utility grids, oil and gas operations, and much more. So, IoT really does appear to be revolutionizing industry but many just aren't aware of it, and there's plenty of room to grow. Kranz lays out tangible examples of how IoT technology has been leveraged to solve specific business problems. He provides four Fast Paths to Assured Payback for those wondering where to start: Connected Operations, Remote Operations, Predictive Analytics, Predictive Maintenance. He shows how businesses in most industry can apply these paths with plenty of convincing examples. Then, he provides Eight Fundamental Elements companies need when embracing IoT: integrate IoT technology into business, start with low hanging fruit, transform the culture, be serious about security, build a partner ecosystem, invest in talent, focus on real problems, prepare for a journey. IoT certainly has massive potential to transform industry, and it clearly brings lots of mass implementation challenges. This book helps to show the path forward.
Finally, we have a book that explains in clear language what the Internet of Things (IoT) is all about and how businesses can start on the journey to implement profitable projects in their organizations. In the Foreword of “Building the Internet of Things,” Rockwell Automation Chairman Keith Nosbush writes, “We are inundated with hype around the Internet of Things today. There is a need for a book like this—a practical guide that separates the hype from the reality—to direct us to what’s practical and immediately valuable about IoT and how we can start today and derive tangible benefits tomorrow.” I couldn’t agree more. This is really the first practical guidebook for front-line decision makers to implement IoT projects that get quick and lasting returns on their investments. Even those of us like me who work in the world of IoT-driven innovation can learn so much from the examples, advice and insights throughout this breakthrough book. From its overview about IoT to successful case studies and step-by-step implementation plans, anyone inside and outside the industry will gain valuable knowledge and tips on this force that’s driving so much transformation throughout industry today. What I found particularly useful is the book’s comprehensive approach on how to fully embrace IoT, which, after all, is the technology behind the mass digitization of business and society. The author has that rare capability to explain not only the technology, the integrated solutions and the business value, but also the cultural transformations that must accompany the IoT projects. He explains how to operationalize and internalize IoT in organizations. My particular passion is around how to ignite disruptive innovation by transforming cultures into startup environments and employees into entrepreneurs. That’s why I found most fascinating the chapter and references to what the author calls, “Generation IoT.” He explains that while millennials have grown up in an environment of constant change that they expect their entire lives, Generation IoT really refers to anyone of any age who welcomes change to challenge themselves, focus on their passions, and embrace open standards, open collaboration with partners, open communication and team-based ways of innovating. As the author states, IoT is not about the technology so much as it is about people who are willing to constantly adjust to change and re-learn over and over again. These are the trailblazers I try to help nurture by empowering them to tap into their passions, form teams and co-innovate game-changing solutions that can disrupt markets, my own company (Cisco) and ourselves. I have had the distinct pleasure and honor of working alongside the author, Maciej Kranz, for a number of years. I can attest that he is an IoT pioneer who has implemented dozens of projects in many industries before IoT became a name. He is also an innovative thinker who knows how to get things done. It’s wonderful to read about the culmination of his career to date in this illuminating book that will accelerate the new ways to improve business performance and quality of life all around us.
I am thrilled that IoT pioneer Maciej Kranz has followed up on his first book, ‘Building the Internet of Things,’ with this related workbook. The workbook’s pragmatic and usable methodology filled with valuable resources and considerations will be invaluable for anyone charged with rolling out an IoT project. From a scheme to score your company’s IoT readiness, to an ROI calculator and methods to measure success, this workbook can make a difference in the outcome of your IoT operations.
Maciej Kranz’s book on IoT is very comprehensive, business-focused, and well-articulated coverage of IoT: one of the most impactful technological trends of the 21st century. This book is not just about the technology of IoT or more specifically the Industrial Internet of Things (IIoT). It is a book about the digital transformation that is being realized through IoT. The author articulates quite clearly it is not Internet of Things connectivity for its own sake. It is rather the business value, the use cases, and connectivity opportunities (e.g. OT-IT) that is driving this transformation. "These use cases, and the business value propositions they produce, drive the connectivity, not vice versa. We aren't connecting things just for the exercise; serious value and benefits are at stake. That's why you've read this book" I did not realize that is why I read the book, but the message came through loud and clear – better than any other book on the subject. There were actually several interesting surprises. I was glad the author contrasted the transformation potential of IoT to those of Business Process Re-Engineering as well as Lean and Six Sigma (actually they are complimentary). He indicates clearly: “Unlike them, you can't ignore IoT and still expect to thrive or even survive." Thus the impact of IoT will be significant, provided organizations focus on business problems and solutions – not the underlying connectivity technologies. He considers IoT as a vehicle for change – and that is quite impactful. The best way to achieve this change is through business processes involving connected devices. Couldn’t agree more! The author is an excellent communicator and the book has many examples of successful IoT projects from various industries, as well as pitfalls and common mistakes – emanating from the author’s rich industrial experience at Cisco and elsewhere. It is easy to read and provides a solid foundation for Business, IT, and Operations – to help them focus on IoT enabled changes in business processes. The author also provides several prescriptive and methodical suggestions on where to start, what to look for and overall what are the best practices for IoT initiatives. He clearly separates the hype from the achievable business value. “I firmly believe that for many of us IoT represents a once-in-a-lifetime opportunity to redefine our industries, organizations, and jobs.” The author is pragmatic, experienced, and balanced. So it is not about hype but on practical business opportunities. The book is rich with examples and references – including a dictionary of acronyms. The author mentions and illustrates one of my all-time favorite reference architectures: the IoT World Forum reference model with business processes as the top (hence most important business value focused) layer. "IoT technologies are organized as a technology stack that moves up from physical devices at the bottom through data and applications, and finally processes." Capturing the new era of digital cooperation he has coined the terms “Co-Economy,” “Co-Creators,” “Co-Development,” and “Co-Innovation.” So I strongly recommend you get your own copy of this book – you will be using it as a reference and a tool for your digital transformation initiatives for many years to come. Maciej hits a home run with the message: “The challenge for observers is that IoT has no precedent either in terms of the opportunities it presents or the risk it creates.”
This latest book on the Internet of Things is really the first that I can see addressing how industry can identify and implement IoT projects. It is also rare that an author in a technical field can write a book that's highly readable and useful to both the practitioner and the layman. This book does all that. I highly recommend this book to anyone interested in learning how the Internet of Things is changing industry--making it more productive, efficient and cost-effective. Most people think IoT refers to the billions of connected smart devices--all linked to the Internet--and usually in the home, such as smart appliances, etc. Yes, IoT does refer to connected objects, but Mr. Kranz astutely reminds us that it is really about people, or what he calls, "boots on the ground." It is about people understanding what business problems need to be solved, and then applying IoT solutions to create better outcomes. It's not about a science experiment chasing a use case. He proves his point with compelling examples of industry successes, using Harley-Davidson, Ford, Pepsico and some lesser known companies as his proof points. The fact that Mr. Kranz personally worked on many of these projects before and during his tenure at Cisco add greater credence and authenticity to the projects and their impressive results. Harley Davidson, for example, was able to reduce order-to-delivery time of customized motorcycles from 18 months to two days by linking different functions on a single platform. Many such transformational examples are sprinkled throughout the book. What impressed me most about the book though is that Mr. Kranz addresses IoT in its totality. In other words, he looks at this new market transition from all angles--technological, business, cultural, standards, jobs, workforce skills, and, most importantly, how it impacts our overall quality of life. As the book jacket explains, this book really is meant as an IoT roadmap for front-line decision makers in industry, but most anyone who cares about how technology can change the world for the better will find this a fascinating and surprisingly easy read.