The authors main point is that some years after Vint Cerf (one of the founders of the internet) began talking about 'The Internet of Things' - it is now a reality: that now "the physical world itself is becoming a type of information system".
"In what’s called the Internet of Things, sensors and actuators embedded in physical objects—from roadways to pacemakers—are linked through wired and wireless networks, often using the same Internet Protocol (IP) that connects the Internet. These networks churn out huge volumes of data that flow to computers for analysis."
The authors go on to say that:
"as more sensors enter our devices and clothing, we will have the ability to monitor the behavior of people, places and things through space and time, enabling such business applications as presence-based advertising."
This is just the tip of the iceberg. Just think of the analytic opportunities that the widespread use of IP connected sensors represents. Sensor data is a great chance for analytics to move further and faster into decision support - unteathered from your PC and mobile. Real time analysis will be the only way for us to turn the flow of data around us into information we can action.
What we are talking about here is a fundamental change in our environment. To be more precise: the linking of two worlds is happening. Our information world (mostly the internet) and our physical world (the stuff we do when the broadband is down).
So far, the internet has largely been something that we join as we want. No one forces you to have a Facebook page or LinkedIn profile. We choose to participate (or not) based on the value that participation gives us. The Internet of Things changes this. You will not be able to control the actions of most of the sensors in your enviroment - and that includes the flow of sensor data. So opting-out in the future is going to be a lot harder to do than simply switching off your computer or mobile phone.
Above: The authors see six distinct types of emerging applications, which fall in two broad categories: 'information and analysis' and 'automation and control'.
The biggest surprise to me was the impact that sensors are already starting to have on the pricing of products and services. It's a logical result I had not seen coming. Here are a couple of examples from the article:
"... insurance companies, for example, are offering to install location sensors in customers’ cars. That allows these companies to base the price of policies on how a car is driven as well as where it travels. Pricing can be customized to the actual risks of operating a vehicle rather than based on proxies such as a driver’s age, gender, or place of residence."
"In the aviation industry, sensor technologies are spurring new business models. Manufacturers of jet engines retail ownership of their products while charging airlines for the amount of thrust used."
The examples discussed are, one the whole, all positive as they deliver something most people would argue is good: reducing cost and risk or enhancing products and services. The darker side is less well addressed - and I'm not talking about the fact that in the near future my socks are going to announce to the world how many holes I have made in them or when was the last time I washed them!
Right: Forget about body scanners at our airports. Sensors have the potential to make the whole world one large scanner.
I guess it comes down to how comfortable you are in having Governments and Corporations knowing more about both your online and physical activities. Maybe now is a good time to lock and load and move back to Southwest Montana!
Do you remember those little cell-phone blockers you could buy at your local spy shop in the 1990s? I admit to owning one - just so I could stop cellphone calls some of my fellow cinema goers felt were vital to answer during film screenings. I wonder if there is a smart entrepreneur out there who is already developing a way of disabling sensors in our immediate environment?
The McKinsey article is a very good overview of emerging sensor applications and worth reading. Here's the article to download.