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The Internet of things : sizing up the opportunity

 
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<subTitle>: sizing up the opportunity</subTitle>
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<abstract displayLabel="Summary">The Internet of Things refers to the networking of physical objects through the use of embedded sensors, actuators, and other devices that can collect or transmit information about the objects. The data amassed from these devices can then be analyzed to optimize products, services, and operations. Perhaps one of the earliest and  best-known applications of such technology has been in the area of energy optimization: sensors deployed across the electricity grid can  help utilities remotely monitor energy usage and adjust generation and distribution flows to account for peak times and downtimes. But applications are also being introduced in a number of other industries. Some insurance companies, for example, now offer plans that require drivers to install a sensor in their cars, allowing insurers to base premiums on actual driving behavior rather than projections.
The challenges associated with the Internet of Things are many; semiconductor executives should consider ways to integrate new development models, process capabilities, and go-to-market strategies in their existing operations. Success will require bold moves, boards that are willing to bet on unfamiliar models and activities, and collaboration with those that are developing industry standards. But the semiconductor industry should embrace this era of innovation and reinvention. The opportunities for growth outweigh   the challenges, as components manufacturers explore the creation of a new class of Internet of Thingsenabled semiconductors that can cut across a wider swath of potential customers than existing components can. The sector may be on the cusp of unit growth similar to the surge it experienced with the smartphoneand perhaps an even greater jump</abstract>
<note type="statement of responsibility">Harald Bauer, Mark Patel, and Jan Veira</note>
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