There may not be a lot of value in classifying time by “the age of”, but I am finding it useful to think of our present time as the beginning of the “age of sensors” to emphasize an emerging technology that historians may see as distinct from the “age of the microprocessor”. Of course both have common roots in silicon and Moore’s Law, while the value of sensors is realized by embedded and networked processors. Whatever — there is definitely something important happening as sensors become more competent and pervasive.
The recent McKinsey Quarterly essay on “The Internet of Things” offers a useful overview of real-world realizations of networked sensors. Excerpt:
(…) But the predictable pathways of information are changing: 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. When objects can both sense the environment and communicate, they become tools for understanding complexity and responding to it swiftly. What’s revolutionary in all this is that these physical information systems are now beginning to be deployed, and some of them even work largely without human intervention.
Pill-shaped microcameras already traverse the human digestive tract and send back thousands of images to pinpoint sources of illness. Precision farming equipment with wireless links to data collected from remote satellites and ground sensors can take into account crop conditions and adjust the way each individual part of a field is farmed—for instance, by spreading extra fertilizer on areas that need more nutrients. Billboards in Japan peer back at passersby, assessing how they fit consumer profiles, and instantly change displayed messages based on those assessments.
Yes, there are traces of futurism in some of this and early warnings for companies too. Business models based on today’s largely static information architectures face challenges as new ways of creating value arise. When a customer’s buying preferences are sensed in real time at a specific location, dynamic pricing may increase the odds of a purchase. Knowing how often or intensively a product is used can create additional options—usage fees rather than outright sale, for example. Manufacturing processes studded with a multitude of sensors can be controlled more precisely, raising efficiency. And when operating environments are monitored continuously for hazards or when objects can take corrective action to avoid damage, risks and costs diminish. Companies that take advantage of these capabilities stand to gain against competitors that don’t.
The widespread adoption of the Internet of Things will take time, but the time line is advancing thanks to improvements in underlying technologies. Advances in wireless networking technology and the greater standardization of communications protocols make it possible to collect data from these sensors almost anywhere at any time. Ever-smaller silicon chips for this purpose are gaining new capabilities, while costs, following the pattern of Moore’s Law, are falling. Massive increases in storage and computing power, some of it available via cloud computing, make number crunching possible at very large scale and at declining cost.
The article offers a variety of actually-implemented examples of innovative applications of sensor technology. Some you may find offensive, like dynamic repricing based upon shoppers behavior (yes, they are watching what you do as you stop your shopping cart to consider the cereal options). Many applications appear to be pure benefit to the consumer/user, such as vehicle traction-control and “self drive” options, or auto “rental” based upon how you actually use an on-demand vehicle such as Zipcar. Or the electric vehicle pricing model of Better Place, where you pay for that $10,000 battery based simply on how much energy you suck out of the battery.
In ten years we will consider the iPhone to be as primitive as the caveman’s axe.
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