Internet of Things

*Updated version of the 2023 article. 

Definition

The Internet of Things (IoT) is a vision in which potentially every physical object is connected to the internet. Devices that do not traditionally process data are connected to each other and to the internet. This merges the physical and digital worlds, enabling new products and services. Application areas for the IoT include, for example, the smart home, smart manufacturing and smart mobility. 

An IoT system usually consists of several devices and a platform, also known as the Application Enablement Platform (AEP). The devices collect data by means of sensors and send it to the platform, where the data is collected and analysed. Some IoT devices have computing capacity, others do not. 

Current applications and opportunities 

Advances in transmission technology (see ultra-reliable low-latency communication) and in the development of more powerful IoT devices with ever longer battery life, have given a significant boost to implementation over the past two years. As a result, processes can be automated and resources used efficiently, resulting in cost savings, a lower environmental impact and higher productivity.  

To give an example, the retailer Coop has partnered with Swisscom to equip the refrigerators in its stores with temperature sensors that regularly send the measured value to an IoT platform. If the value is outside the normal range, measures are taken immediately. What was once a manual process is now part of the continuous monitoring of temperature-critical foods from the distribution centre to the fridge in the store. 

Hamburg-based logistics group Hapag-Lloyd was the first shipping company to equip over a million containers with IoT-enabled tracking devices from Swiss tech company Nexxiot and global connectivity from Swisscom. This allows customers to track their freight at any time and from anywhere in the world. In the future, additional data such as temperature, air quality and vibrations in the containers will be recorded and used.  

IoT solutions are also already being used in resource management, for example in the agricultural sector or in the energy and building sectors. In the medical sector, the IoT can continuously monitor patients’ health-critical data using implanted sensors or wearables, thus significantly increasing the quality of care and its chances of success. 

Challenges

The challenges can differ depending on the area of use. In medical applications, the focus is on the energy efficiency of the usually battery-powered implants. After all, changing batteries requires surgical intervention and all the associated risks. Operating without frequent charging or intensive maintenance is also essential in industrial or infrastructure applications, some of which have to operate over long distances. 

On top of the technological challenges, there are also legal and regulatory ones, particularly in the area of data protection and security. For manufacturers of medical devices, in particular, the regulations are extremely restrictive. The necessary certifications for SMEs and start-ups are difficult to obtain in Switzerland and Europe. In addition, Switzerland has very strict data protection laws by international standards, which inhibits the rapid implementation of many applications, although this does ensure that users and their data are secure.  

In many areas, IoT applications still have a long way to go before they reach the potential envisaged for them. However, Switzerland has a good instrument at its disposal for promoting collaboration between companies and research institutions, in the form of the Swiss innovation agency Innosuisse. Grants, tax incentives and investment support for SMEs and start-ups should be considered as means of providing targeted support for innovation in this sector.  

Experience shows that the will to digitise and many good ideas are more likely to fail owing to a lack of time and a lack of in-house specialists rather than financial resources. Vehicles for technical support or platforms where companies can launch their own products would be helpful in this context. 

Focus on industry

The Internet of Things is more than just a technology: It is a state of harmony between various components and technologies and is an integral part of a comprehensive digitalisation strategy. It also opens up new business areas and revenue opportunities, for example in the area of mobility: Car rental companies, car-sharing operators and even bike rental firms use IoT platforms to handle their fleet management, i.e. monitoring and activation.  

In industry, new models are conceivable in which a machine manufacturer no longer sells its machines equipped with IoT sensors to customers, but only rents them out or only charges for the machine’s output – this is known as equipment-as-a-service. In this way, the machine manufacturer can offer customers efficient and expert servicing and maintenance. 

In order to develop IoT-enabled devices and machines, employees need a mix of technical and specialist skills. Knowledge of connectivity modules, microcontrollers and sensors is important for the operation and maintenance of embedded systems and hardware design. Software development requires skills in programming languages, while data analysis calls for knowledge of data science, machine learning and artificial intelligence (AI). A comprehensive and broad understanding of the system is also crucial for innovative and useful solutions. 

International perspective

When it comes to using IoT in the real world, Switzerland tends to favour niche applications. China leads the way globally. In Europe, Switzerland is somewhere around the mid-range, depending on the application. With its strong emphasis on precision engineering and high-quality manufacturing, the country has the potential to take a leading role in the IoT market. There are numerous Swiss companies at the forefront of mass market applications such as consumer goods, communications and sensors. 

Future applications 

A further boost to IoT applications is expected in the field of machine learning and AI. For example, the Swiss Innovation Centre CSEM is involved in a research project for sustainable agriculture that aims to optimise fertiliser and pesticide applications with the help of IoT-enabled sensors and AI. In the field of personalised medicine, implants and wearables enable real-time monitoring of patients. AI-assisted diagnosis is a fast route to initiating the best possible treatment for the individual – provided that the associated data protection challenges are solved. 

In the manufacturing industry, IoT and AI can support machine maintenance through the concept of predictive maintenance (see Evidence-based maintenance – a tale of wanted and unwanted events). On the AI-supported IoT platform, sensor data is combined with empirical values in order to accurately determine the condition of the machines and to proactively plan the necessary measures and initiate them quickly. This prolongs the service life of the machines, resulting in lower production costs because of the decrease in maintenance downtimes. 

Next-generation smart grids are set to balance supply and demand in the energy sector and use renewable energy sources more efficiently. They will be able to accurately predict average consumption by understanding users’ habits and predicting behaviours. 

The Internet of Things offers Swiss industry and society numerous benefits. Many applications have not yet reached the desired level of maturity, because protracted approval procedures for start-ups – particularly in the healthcare sector – and a shortage of specialists are holding back their development. Nevertheless, the IoT has the potential to increase the competitiveness of Swiss industry, help develop innovative business models and support the transition to a sustainable economy.