IoT integration is the process of linking smart devices, applications, databases and systems to facilitate data exchange and enable automated workflows.
In manufacturing, integrating the internet of things (IoT) into operations can create a smart factory that automates routine tasks and optimizes operational performance and supply chain management. For example, in food supply chains, smart sensors integrated with supply chain systems can measure the freshness of strawberries, the length of the logistics route, time of delivery and where the berries are in the transport chain.
In smart cities, IoT sensors attached to tram tracks can detect the precise locations where tracks are beginning to wear, enabling maintenance to be performed before the tracks fail.
In short, there's virtually no industry that isn't using IoT applications and integration to reinvent systems, operations and businesses.
Benefits of IoT integration
Companies are flocking to IoT, but they also recognize that it makes no sense to adopt the technology unless they can integrate it into their systems and business processes. IoT integration can be challenging, but when it's accomplished in an end-to-end way for system and business processes, it can deliver enormous value.
Organizations are seeing the following benefits from IoT integration:
- Support for corporate edge computing strategies. Companies are moving to distributed operations models, such as remote manufacturing plants and distribution facilities, as well as real-time, in-transit tracking for logistics fleets and cargo. IoT sensors and cameras are integral elements of distributed business operations, but standalone IoT devices don't deliver much unless they're successfully integrated into the manufacturing, engineering, service, shipping, supply chain and enterprise resource planning systems that give everyone throughout the enterprise visibility into how operations are running and where items are.
- Operational automation. Integrating IoT sensors and robotic equipment into manufacturing assembly lines, cargo-moving systems, payment systems and retail systems enables companies to streamline operations, automate processes, avoid human error, and deliver goods and services faster. It also extends companies' operational reach. In a medical setting, for example, an IoT robot in an operating room integrated into a central medical system tethered to a private network could help a surgeon operate on a patient in a remote setting or another country.
- Cost avoidance. Utility and transportation companies integrate IoT into their central systems for predictive maintenance. IoT sensor alerts are relayed to central systems so managers can see a potential failure point in a communications tower or in a subway system. Maintenance crews can then be dispatched to proactively correct issues before downtime occurs.
- Personalized IoT. Healthcare companies use IoT devices integrated into their central systems to monitor patients in their homes so medical help can be summoned if a vital sign shows up as an alert. Consumers use IoT in their smart homes to monitor the security of the premises, turn lights on and off, and oversee energy usage. Drivers also use IoT in their cars to determine directions to destinations or to check traffic. IoT is integrated into central networks.
- Sustainability enhancements. IoT integration enables organizations and consumers to monitor energy and fuel usage and reduce energy waste. This helps meet company sustainability goals and contributes to reducing the worldwide carbon footprint.
IoT integration challenges
Here are the primary areas of IoT integration challenges:
- Security. A variety of IoT devices have wide open security settings that can quickly become compromised if IT doesn't set each device's security to conform to enterprise standards. In addition, many IoT device vendors are small companies focused on getting their products to market, and IoT security is an afterthought.
- Interoperability. IoT device protocols aren't fully standardized. IoT devices from two different manufacturers might not work well together, and integration that connects IoT devices with corporate networks, software and hardware can cause additional problems. If an IoT integration glitch occurs, IT is often saddled with troubleshooting and resolving it since IoT vendor support is limited.
- Business process integration. Enterprises have a diversity of systems. An airline might have one system for reservations and another for baggage. A financial services company might have one channel for making stock trades and another for managing retirement accounts. IoT and users' smartphones must be able to navigate seamlessly between these various channels. Process disconnects caused by IoT not being fully integrated affect user and customer experiences.
- IT support. IoT integration enables automation for network management, security monitoring, and software and firmware updates. On the flip side, IoT integration can also render IT support more difficult. If the issue IT is trying to resolve involves integration, IoT is an additional element that IT must troubleshoot, in addition to data, system and network integration. When an integration issue is found to be IoT-related, resolution can hinge on the cooperation of IoT vendors that don't always support their products.
- Burgeoning IoT that affects infrastructure. As more IoT and sensor data is integrated with systems and networks, system and network capacity can be exceeded. It might be necessary to scale up resources if response times slow or if downtime is experienced.
- Financial barriers. Fully integrating a diverse set of IoT devices and smartphones with enterprise networks and systems requires substantial financial investments in storage, data pipelines, data integration, security, analytics software, processing, cloud resources, and potentially IT and user training -- with no clear timeline for return on investment.
How to integrate IoT into your existing systems
IoT integration begins by knowing the various Internet Protocol addresses of all IoT devices connected to networks and systems. It also involves the creation of a specialized IoT gateway that connects IoT devices to the internet or an internal corporate network. The IoT gateway acts as a transfer and filtering mechanism that provides secure transmissions of IoT data to a central system. It also ensures the usability and quality of IoT data.
Here are the fundamental steps that characterize most IoT integrations:
- Define IoT integration goals, and understand the scope of the project. It's important to clearly define a business use case and then scope out the degree of IoT in terms of the number and types of devices that will be needed. Equally important is estimating the communications bandwidth, security and other infrastructure investments, as well as the integration efforts that will be required with other systems.
- Right-fit IoT device selection with the business use case. In most business use cases, a variety of IoT devices must be mixed and matched to meet the different ways in which users will use them. IoT devices should be selected based on the functionality and features they deliver, their ability to interoperate with other systems and IoT devices, the strength of their vendor support and their ability to meet business use case requirements.
- Decide on an IoT integration approach. Some enterprises have the in-house expertise to perform their own IoT integrations, but most don't. For companies that lack IoT integration expertise, a best practice is to retain an outside consultant who does this work and then seek out a recognized IoT integration platform that has integration connectors and tools. If the IoT integration project involves multiple remote or edge computing sites, internet transport will likely be involved, and the logical choice is a cloud-based IoT integration platform. Integration platform as a service is one option, as iPaaS providers furnish tools and IoT integration connectors for disparate systems, networks and applications.
- Set up IoT gateways. Once the IoT devices and integration platform have been identified, it's time to set up the physical IoT gateways that will manage the data transmissions between central systems and IoT devices.
- Implement and cross-check security across all infrastructure. As part of IoT device deployment, all settings on every IoT device should be configured to meet enterprise security standards. Secondly, proper security settings should be set at all IoT gateways and on the IoT integration platform itself to ensure outside user and customer devices conform to enterprise security standards. The security settings on all IoT devices, IoT gateways and IoT platform entry points to the system and networks should be thoroughly tested until security is operating flawlessly across the entire IoT infrastructure.
- Perform quality assurance (QA) testing on all IoT workflows. With security in place and all IoT devices and gateways attached, integrated and secured, the next step is to develop and test the IoT workflows that are integral to the business use case. Once the workflows have undergone QA and been tested successfully by users and IT, IoT is ready to go live.
- Continuously monitor and improve performance. After an IoT project is placed into production, it's incumbent on IT to continuously monitor system performance and fine-tune it as needed. Like any other IT system, it's likely that new IoT business requirements and technologies will emerge that require revisions to the existing systems.
Examples of IoT integration in practice
IoT integration use cases are in virtually every industry segment. Here are several examples:
- Financial services. Consumers and businesses use contactless debit and credit cards at retail points of sale (POS) and at ATMs to transact business. From network edge points, such as POSes and ATMs, user credentials and financial transactions are security-verified, encrypted, relayed over networks, and processed and booked into on-premises or cloud financial accounts on mainframes that could be thousands of miles away. IoT integration at every transaction touchpoint ensures a smoothly automated workflow. IoT integration provides end-to-end service and convenience to banking customers around the world.
- Logistics. Companies use IoT integrated into trucks, logistics and supply chain networks to track the flow of goods and the driving habits of drivers. IoT sensors are placed on cargo and in trucks, engines and braking systems to ensure drivers drive safely and stay within the total number of hours they are legally permitted to drive each day. Driver accidents and injuries have fallen since the implementation of driving monitoring systems. Inside truck containers, temperature, humidity and security for sensitive goods, such as medicines and food, are continuously monitored to ensure food and medicine safety and an uninterrupted chain of custody.
- Utilities. Sensors at wind farms and dam turbines measure turbine performance and ensure that optimal operational and economic metrics are achieved. If a metric falls below expected performance or a turbine component begins to exhibit signs of failure, maintenance crews are promptly dispatched to avoid downtime. According to research from Splunk and Oxford Economics, downtime costs Global 2000 companies $400 billion annually, so the benefits of IoT integration to prevent downtime are substantial.
- Manufacturing. Companies are integrating robots and sensors to enable automated manufacturing without human intervention. These IoT devices communicate with assembly line equipment and IoT data collection in real time. IoT also affects workflow handoffs between assembly line stations. AI and machine learning are built into the system intelligence that operates these devices so anomalies in manufacturing processes can be immediately detected and remedied. IoT process integration reduces downtime and ensures uniform and consistent manufacturing.
- Home security. Home security cameras and sensors are integrated into cloud-based software and streamed over the internet so homeowners can monitor their homes while they're away. IoT integration provides peace of mind.
The future of IoT integration
The future of IoT integration rests on the following five foundational cornerstones:
- Faster networks. Smart cities, retail stores, banks, airlines, logistics companies, financial institutions and any other entities that use IoT integration to process thousands of transactions per minute benefit from an expansion of cellular networks to 5G, which is 10 to 100 times faster than 4G communications. 5G offers low-latency, rapid transport for IoT device data that can be integrated with networks and systems to deliver real-time data with seamless connectivity.
- The growth of AI and machine learning. By 2034, the number of worldwide IoT connections is expected to reach 40.6 billion, according to estimates from Transforma Insights. To deal with all the data generated by these devices, IoT system vendors are adding more AI, machine learning and analytics to isolate relevant data based on organization-defined business rules. This assists companies in making decisions faster.
- New IoT devices and communication modes. The IoT wearable device market will expand in fields such as medical monitoring and personal use. In addition, communication will expand to more voice-activated commands, such as with Amazon's Alexa. Future IoT integration will focus on voice, image and data transmission integration.
- Digital twins. IoT sensors connect digital twin models of physical objects. By attaching IoT devices to a physical object, like a jet plane, and then integrating IoT with a digital model of the jet, engineers can review information about the physical engine and other components. In this way, engineers can simulate the jet in a variety of conditions digitally. The digital twin saves companies from having to construct physical prototypes of new products and speeds time to market.
- IoT security advances. Edge computing IoT and IoT integration have created a broader attack surface for bad actors. To address this, security technologies are shifting from network monitoring software to granular observability of network events and user activities so that the slightest deviation in network activity can be immediately detected and acted upon. Technologies like blockchain will also be used in IoT integration. With blockchain, every transaction is securely and indelibly registered, so all participants in a transaction can verify that every transaction step is authentic.