Connect with us

Investment

Connecting with ‘US:’ The necessity and value of the Internet of Things

Done right, the Internet of Things is the Internet of Us, connecting the physical and digital in a human-centered way that improves the world intelligently.

Published

on

Share this:

By Frank Antonysamy, Vice President of Cognizant’s Global IoT and Engineering Services

U.S. food safety has been a concern since the days of Upton Sinclair’s classic novel about the stockyards and meatpacking industries in Chicago. Public reaction to The Jungle compelled Teddy Roosevelt and the U.S. Congress to pass food safety laws and establish the U.S. Food and Drug Administration in 1906.

More than a century later, threats clearly remain to the safety of domestic and global food supplies and the purity of water sources. Recently, we’ve learned about significant, ongoing, even deadly threats to our food and water. Food recalls have ranged from romaine lettuce to beef in the last 12 months; the tragedy in Flint, Mich., reminds us that poisonous chemicals still make their way into our water, as well. Faulty equipment or poorly executed processes often are to blame.

[Read more: The State of the Union for IoT Intelligence]

Solving Safety Challenges with Internet of Things

It doesn’t have to be this way. As the Internet of Things (IoT) begins to permeate our global infrastructure, sensor-equipped devices will soon outnumber the global population. There’s no reason to wait until communities face a food- or water-borne threat before fixing malfunctioning equipment or improving safety procedures.

Today we can automatically and rapidly glean information from IoT-enabled devices – about temperatures in IoT-equipped food storage and transportation equipment, for example, or the chemicals sensed by the pumps that filter and move our water, or the monitoring capabilities of the medical devices we increasingly rely on in hospitals and the home. With such intelligence, communities and businesses can address problems before they become a threat.

[Download]: Advancing Smart Manufacturing Operations Value with Industry 4.0

Increasing Food Safety on a Massive Scale

Recently, I had a conversation with Internet of Things maven Stacey Higginbotham on one of her Stacey on IoT podcasts. We discussed Cognizant’s work with Internet of Things adoption, and the ways in which these solutions can help businesses and the people they serve.

We talked about how one of the world’s largest sellers of fresh and frozen foods uses IoT-enabled refrigerators and freezers to reduce food spoilage across its global supply chain. Such spoilage not only results in financial losses due to food waste, but can also present risks to consumers. Although the business had already implemented alarms on the refrigeration systems in its distribution centers to signal malfunctions, it could take 36 hours for the maintenance operations team to respond – clearly too long when it comes to food safety and waste. There was also no mechanism to proactively monitor the refrigeration units and ensure timely service calls.

Our solution minimizes energy consumption and seeks to ensure consumer safety. It ties together sensors, cloud-based monitoring, algorithms that trigger alerts and warnings, reminders in handheld applications and a direct link of performance data to individual employees to encourage compliance with the company’s internal food safety protocols. The system covers hundreds of freezers, thousands of deliveries, 600 million data points and millions of pounds of food.

The results have been impressive. After rolling out the system to 100 of its stores, the business reduced priority response times from 36 hours to four hours, and decreased food loss by 10% in the first year by predicting refrigeration failures. The company aims to expand the system to 5,300 stores, with the potential to reduce operating costs by up to $40 million while ensuring the safe storage of food. (Hear more about this solution in the three-minute podcast recording below.)

[Download]: Designing Manufacturing’s Digital Future

From Providing Pumps to Offering Insights

These same principles guided our solution for a global manufacturer of high-technology industrial water pumps used in a range of applications, from providing drinking water for cities and villages, to processing waste water, to clearing and filtering the huge volumes of water moved during deep-sea drilling.

With the movement of all that water through its sensor-equipped and self-monitoring pumps, the manufacturer had access to a flood of information on everything from performance-based data on pressure and volume to the chemical composition of the water. By collecting and analyzing this information, the company could leverage and monetize its insights into not just equipment performance but also the safety of the water it delivers. If a certain chemical spikes in the water supply, for example, alerts are triggered, and municipalities can investigate. If water pressure or volume falls outside set parameters, precautions can be taken, including automatic alerts and even preemptive shutdowns.

Buyers of the pumps want this information. So, while using this data to improve the performance of its products, the business can also share insights with its clients on a subscription basis, opening up new revenue streams. The business is no longer just providing world-class high-tech pumps; it’s offering customers critical insights from the pumps it sells, as a value-added service. (Hear more about this solution in the three-minute podcast recording below.)

[Download]: Advancing Smart Manufacturing Operations Value with Industry 4.0

Connecting Things; Connecting to Our Needs

What links these two examples is their prioritization of real human needs as part of the solution. Clean and safe food and water are vital to human health, and companies that help provide themadd value.

For many years, large industrial enterprises have lived in two separate worlds: the world of all their physical assets (factories, equipment, buildings, people) and the world of their digital assets (software, workflows, algorithms, reports). Through sensor technology, network capability, security advances and IoT platforms, these two worlds are now becoming seamlessly integrated like never before.

Today, the shorthand for this ongoing integration is the Internet of Things. In reality, though, it’s the Internet of Us. Technology offers us a path to connect our physical world with a digital one, in which we occupy a new space and a new future: a place where the physical and digital come together, enabling businesses to transform their operational and business models, in a scalable way, through intelligence. (Hear more on the Internet of Us in the three-minute podcast recording below.)

Share this:

Investment

Sustainable datacenter region coming to Sweden in 2021, accelerating the country’s digital transformation

Microsoft is investing in Sweden thanks to the Scandinavian country’s strong commitment to sustainability and innovation.

Published

on

Share this:

In May of last year, Microsoft announced plans to develop new data centers in Sweden. The goal? Making them “among the most sustainably designed and operated in the world.”

The company is now making good on their pledge with a press release from November 24, confirming they’ll launch a “world-class, sustainable datacenter region in Sweden in 2021 with presence in Gävle Sandviken and Staffanstorp.”

Investment details

The news comes on the heels of Microsoft’s announcement of a significant digital transformation investment in Greece, involving the construction of new datacenters. This also includes a plan to skill approximately 100,000 people in Greece in digital technologies by 2025.

“Building on Microsoft’s 35-year history in Sweden and strong partnerships across the energy, manufacturing and retail sectors, we are looking forward to delivering the Microsoft Cloud from this new datacenter region in 2021,” said Jean-Philippe Courtois, Executive VP and President of Microsoft Global Sales, Marketing and Operations.

“We believe that digital transformation should always be both inclusive and sustainable.”

Elaborating further, Hélène Barnekow — General Manager of Microsoft Sweden — explained that Sweden is an ideal environment for such an investment because of its renowned leadership in sustainability, innovation, and gender equality:

“It is one of the places in the world where IT and tech have the greatest potential to create new opportunities for the individual, the organization and society, she said.

“In this time of change, we invest in the digital infrastructure and our Swedish ecosystem to accelerate digital transformation that will empower public and private companies to innovate, providing a strong digital foundation for the country’s future growth,”

As a result of these datacenters, Microsoft explains, Swedish businesses can “empower employees, engage customers, transform products and optimize operations — all through connected experiences and supported by advanced data privacy and security.”

Microsoft will also invest in skills development, providing digital skills training for up to 150,000 Swedes. 

Share this:
Continue Reading

Investment

Investing in digital resiliency

A new index from IDC shows growth in cloud, collaboration, and security investment.

Published

on

Share this:

Is your business digitally resilient? 

IDC’s new Digital Resiliency Investment Index is a look at the progress of organizations in their investment towards digital resilience. This is especially important now with this year’s digital transformation acceleration.

Results from the initial index show an overall steady increase in investment toward resiliency. 

Organizations have placed priority in cloud, collaborative, and digital transformation projects. Thanks to the pandemic-related shift to work-from-home and the aforementioned increase in cloud adoption, significant investments have been made in security.

According to IDC prediction, investment toward digital resiliency will increase in 2021, in tandem with economic recovery.

In terms of geography, digital resiliency investment had the fastest growth in the Asia/Pacific region. While US investment increased in October, Europe’s had a slight decline in the same period — as the continent was experiencing a significant surge in COVID cases and restrictions. 

Background

Two factors make up the index:

  • Digital Core Investments, described by IDC as “spending on the core components of digital resiliency: cloud, security, collaborative support for remote workers, and digital transformation projects.”
  • Digital Innovation Investments, which are “measured using a monthly survey of enterprises on their current and anticipated IT investment focus, including how much new or reallocated spending is targeted at digital resiliency and business acceleration versus crisis response measures.”  

“Digital resiliency refers to an organization’s ability to rapidly adapt to business disruptions by leveraging digital capabilities to not only restore business operations, but also capitalize on the changed conditions,” explains Stephen Minton, VP in IDC’s Customer Insights & Analysis group. 

Organizational success in the midst of a global pandemic has largely hinged on the ability to react quickly to change, he says. The difference between rapid adaptation and simply responding to disruption? A plan.

“Investments in digital capabilities not only enable an organization to adapt to the current crisis but also to capitalize on the changed conditions.”

Looking ahead

“The next several months may put increased pressure on some organizations to respond to second waves of COVID infections and economic lockdowns, which will be reflected in our monthly surveys throughout the winter,” adds Minton. 

“What we have learned already this year is that the organizations which were among the early adopters of cloud, digital, and collaborative technologies were best-positioned for a crisis no one could have predicted.”

Share this:
Continue Reading

Investment

Digital transformation for economic recovery

“With the right steps and actions, businesses and governments can take the crisis as an opportunity to build for the future,” explain two World Bank economists.

Published

on

Share this:

Digital transformation is having a moment. 

Over and over, widespread reports and surveys show that — in the wake of the COVID-19 pandemic — DX efforts have accelerated. “Business-savvy CIOs who deploy highly adaptive strategies and technology to rapidly respond to the impact on their firm’s operations and customers will lead from the front,” explains Forrester’s recent Predictions 2021 report.

Can the momentum keep going? How can DX be leveraged so everyone can be better off, post-COVID? 

As two World Bank economists argue in Harvard Business Review, “technological advancements were already changing the world over the past two decades,” and that in the midst of threats from automation and offshoring, it’s important to realize that tech can act as a job creator for economic recovery. 

According to Federica Saliola (Lead Economist in the Jobs Group of the World Bank and co-Director of the World Development Report 2019) Asif Islam (Senior Economist for the Middle East and North Africa Region of the World Bank Group), “to reshape technology as a job creator, it’s important to understand what, exactly, the current wave of technology is changing, and how policymakers and businesses can adapt to it.”

Where we were

The economists laid out three foundational truths about the pre-COVID state of technology:

  1. It has always been a disruptor. Tech has been “challenging the traditional boundaries of firms, changing global value chains and the geography of jobs.”
  2. As tech evolved, there have been massive changes in what skills are needed by a successful workforce. “The premium for skills that cannot be replaced by robots has been increasing,” they explain. What are these in-demand skills? Critical thinking and socio-behavioral skills, for starters, as well as adaptable skills. This leads to point three.
  3. Thanks to tech, the very nature of work has been changing over the last few years. The standard of permanent and full-time work has given way to a gig economy.

What’s next?

Simply put, “it is likely that the pandemic will reinforce these pre-existing trends and increase the urgency of corresponding policy responses,” explain Saliola and Islam.

Digital-first companies are thriving, the gig economy certainly isn’t going anywhere, and “firms may also have more incentive to invest in automation and reshore production to shield against value chain disruption.”

The aforementioned barrage of surveys and reports showing the acceleration of DX efforts reported on the mostly-successful shift to work-from-home. Saliola and Islam reference World Bank and World Economic Forum reports that show (unsurprisingly) positions and organizations that have put WFH measures in place are more prevalent in wealthier countries and regions, and that women and young people are more likely to hold positions where WFH isn’t feasible. 

Ultimately, Saliola and Islam explain, organizations and governments have to turn to policy to ensure that digital transformation can lead to a more successful economic recovery.

What does this look like? Reskilling and upskilling on the part of businesses, and “incentives and regulations to infrastructure projects and taxation” for governments. 

It’s similar to the approach of the recent OECD report showing that DX is critical for recovery in Latin America and the Caribbean — but on a global scale. 

“Technology can be a boon to society if businesses and governments prepare and adapt,” they write. “With the right steps and actions, businesses and governments can take the crisis as an opportunity to build for the future.”

Share this:
Continue Reading

Featured