Hype Cycle For The Internet 252763

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G00252763
Hype Cycle for the Internet of Things, 2013

Published: 31 July 2013
Analyst(s): Hung LeHong
The Internet of Things has the potential to transform industries and the way
we live. This Hype Cycle helps enterprises assess the levels of risk, maturity
and hype that are associated with a transformative early-stage trend.
Table of Contents
Analysis.................................................................................................................................................. 3
What You Need to Know.................................................................................................................. 3
The Hype Cycle................................................................................................................................ 4
Enterprise Perspective on the Internet of Things......................................................................... 5
Public/Municipality Perspective on the Internet of Things............................................................ 5
Consumer Perspective on the Internet of Things.........................................................................5
Technology Perspective on the Internet of Things....................................................................... 6
Interpreting the Hype Cycle for the Internet of Things..................................................................7
New Additions and Changes to the Hype Cycle..........................................................................8
The Priority Matrix...........................................................................................................................10
Off the Hype Cycle......................................................................................................................... 11
On the Rise.................................................................................................................................... 12
Smart Dust............................................................................................................................... 12
Operational Intelligence Platforms............................................................................................. 13
802.11ah..................................................................................................................................15
Quantified Self.......................................................................................................................... 16
Decisions and Recommendations as a Service.........................................................................18
Autonomous Vehicles............................................................................................................... 20
Data Science............................................................................................................................ 22
IT/OT Integration.......................................................................................................................25
At the Peak.....................................................................................................................................26
Silicon Anode Batteries.............................................................................................................26
Context Delivery Architecture....................................................................................................28
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DASH7..................................................................................................................................... 30
Internet of Things......................................................................................................................31
Smart City Framework, China................................................................................................... 33
Smart Transportation................................................................................................................36
Big Data................................................................................................................................... 38
Home Energy Management/Consumer Energy Management....................................................41
Low-Cost Development Boards................................................................................................42
Smart Fabrics........................................................................................................................... 43
Wireless Power.........................................................................................................................45
Bluetooth 4.0............................................................................................................................47
Enterprise Information Architecture........................................................................................... 48
Facilities Energy Management...................................................................................................50
Raspberry Pi.............................................................................................................................51
Smart Appliances..................................................................................................................... 53
Complex-Event Processing.......................................................................................................54
Sliding Into the Trough....................................................................................................................57
Home-Area Network.................................................................................................................57
Broadband-Connected Televisions........................................................................................... 58
Operational Technology Security.............................................................................................. 60
Z-Wave.....................................................................................................................................63
Telematics................................................................................................................................ 64
Machine-to-Machine Communication Services......................................................................... 66
Operational Technology Platform Convergence........................................................................ 69
Mobile Health Monitoring.......................................................................................................... 71
Mesh Networks: Sensor........................................................................................................... 73
Advanced Metering Infrastructure............................................................................................. 74
Enterprise Manufacturing Intelligence........................................................................................76
Vehicle-to-Infrastructure Communications................................................................................ 79
IPv6.......................................................................................................................................... 80
ISA-95 Integration Standards....................................................................................................82
Vehicle-to-Vehicle Communications..........................................................................................84
RFID for Logistics and Transportation....................................................................................... 85
Climbing the Slope......................................................................................................................... 87
6LoWPAN................................................................................................................................ 87
Public Telematics and ITS.........................................................................................................88
802.15.4/ZigBee.......................................................................................................................90
Page 2 of 103 Gartner, Inc. | G00252763

RF MCU................................................................................................................................... 90
Consumer Telematics............................................................................................................... 91
Entering the Plateau....................................................................................................................... 93
Wireless Healthcare Asset Management................................................................................... 93
Commercial Telematics............................................................................................................ 95
Appendixes.................................................................................................................................... 96
Hype Cycle Phases, Benefit Ratings and Maturity Levels.......................................................... 98
Recommended Reading.....................................................................................................................102
List of Tables
Table 1. Hype Cycle Phases.................................................................................................................99

Table 2. Benefit Ratings......................................................................................................................100
Table 3. Maturity Levels......................................................................................................................101
List of Figures
Figure 1. Hype Cycle for the Internet of Things, 2013............................................................................. 9

Figure 2. Priority Matrix for the Internet of Things, 2013........................................................................ 11
Figure 3. Hype Cycle for the Internet of Things, 2012........................................................................... 97
Analysis
What You Need to Know
This is the second year of the "Hype Cycle for the Internet of Things." It targets CIOs, COOs,
business strategists, chief innovation officers, R&D leaders, entrepreneurs, emerging technology
teams and operational leadership. We have kept the same approach to the Hype Cycle in
combining the many elements that compose the Internet of Things: technologies, industry
applications, enterprise and consumer perspectives, information management, and standards. No
major changes have been made to the Hype Cycle in this second year, so readers can compare the
progression of technologies and areas with last year's report.
One point worth noting is that many of the technologies on the Hype Cycle are crowded around and
just before the Peak of Inflated Expectations. This indicates that the Internet of Things is heavily on
the rise in hype and mind share.
Gartner, Inc. | G00252763 Page 3 of 103

Enterprises should read other Gartner Hype Cycle reports for greater detail into specific areas of the
Internet of Things, such as smart city, connected automobile, smart grid, connected healthcare,
wireless technology, manufacturing technology and others. These reports include:
"Hype Cycle for Smart Grid Technologies, 2013"
"Hype Cycle for Smart City Technologies and Solutions, 2013"
"Hype Cycle for Vehicle-Centric Information and Communication Technology (Vehicle ICT), 2013"
"Hype Cycle for Wireless Networking Infrastructure, 2013"
"Hype Cycle for Operational Technology, 2013"
"Hype Cycle for Sustainability, 2013"
"Hype Cycle for Telemedicine, 2013"
"Hype Cycle for Embedded Software and Systems, 2013"
Enterprises can use this Hype Cycle to get an overall perspective, and to compare how certain
industry use cases are faring in adoption versus others. The Hype Cycle for the Internet of Things is
not region-specific; rather, Internet of Things implementations can be quite location-specific. The
goal is to provide a global view. However, we have also developed China-specific and India-specific
Hype Cycles related to the Internet of Things for enterprises that may be interested in these regions.
The Hype Cycle

Here is Gartner's definition of the Internet of Things:
The Internet of Things is the network of physical objects that

contains embedded technology to communicate and sense or
interact with the objects' internal state or the external
environment.
This definition is broad, and it should be, because the Internet of Things is applicable in every
industry. To help with specifics, the Internet of Things can be viewed from an enterprise versus
public/municipality versus consumer perspective. All three areas are active with the Internet of
Things, but in different ways. There is also a technology perspective, as well as a related information
management perspective, to the Internet of Things to help in understanding the developing
technologies. Enterprises should tailor their approaches to the sectors that best suit them and their
customers/citizens.

Enterprise Perspective on the Internet of Things

Currently, enterprises' primary business case is leveraging the Internet of Things to optimize the
performance of their large assets. Although there are many other ways in which the Internet of
Things can help enterprises (for example, remote operation, extending services or usage-based
billing), this optimization leads to reduced operating costs (for example, fewer energy costs),
improved availability (for example, reduced downtime from failures) and increased yield (for
example, more output from the same operating costs). Starting with buildings and facilities and
continuing with enterprise assets, much of the investment in the Internet of Things in the enterprise
space is centered on equipping buildings with sensors; upgrading or retrofitting large industrial
assets with (more) sensors and more modern analysis capabilities; and upgrading or retrofitting
assets for wireless monitoring or control. On the Hype Cycle, the technologies that represent this
area include: IT/OT Integration, Facilities Energy Management, Operational Technology Security,
Telematics, Mobile Health Monitoring, Enterprise Manufacturing Intelligence, Operational
Technology Platform Convergence, Advanced Metering Infrastructure, ISA-95 Integration
Standards, RFID for Logistics and Transportation, Wireless Healthcare Asset Management, and
Commercial Telematics.
Public/Municipality Perspective on the Internet of Things

City services and infrastructure are seeing the most interest from our clients in the public sector.
Smart city initiatives involve equipping select parts of the city's infrastructure with sensors that will
reduce energy costs (for example, streetlights), use remote monitoring to ensure the safe delivery of
resources and services (for example, water supply), and improve traffic and transit (for example,
reduce traffic congestion, improve parking availability provide real-time visibility to transit). There are
also good opportunities to improve government service centers by monitoring and managing citizen
traffic volumes. For example, displaying real-time wait times at service centers helps citizens
choose when to come in (such as when wait times are short), and has the effect of smoothing out
staffing requirements at the service center, as well as pushing some of the volume to self-serve
channels. In general, European and Asian cities are more active and interested in pursuing smart
city initiatives than North American cities are. For Asian cities, it is mainly because of their rapidly
growing urban populations and major investments in infrastructure; for European cities, it is mainly
for their focus on the environment and energy cost reductions. However, pilots and deployments
exist in all regions. On the Hype Cycle, the technologies that represent this area include: Smart City
Framework, China; Smart Transportation; Facilities Energy Management; Vehicle-to-Infrastructure
Communications; and Public Telematics and ITS.
Consumer Perspective on the Internet of Things

The consumer segment of the Internet of Things is focused on a number of areas that are
predominantly centered on the home and the car. On the utilities side, the smart meter is finding its
way into an increasing number of homes. Home energy management solutions, combined with
smart meters, will be the first Internet of Things area for many homes. In the automotive segment,
the connected vehicle continues to gain an increasing presence, with 60% of consumers expecting
to see connected vehicle features in their next car by 2016 (see "Innovation Insight: The Connected
Vehicle Will Dominate Automotive and Mobility Innovations").

There is also an Internet of Things trend on the consumer side that is not being led by the large
automobile manufacturers and utility companies. The consumer side of the Internet of Things is also
characterized by the "maker movement" and by crowdfunding projects from sites such as
Kickstarter. The maker movement is characterized by the creative projects enabled by low-cost
development boards (for example, Arduino) and platforms (for example, SmartThings) that
encourage consumers to build their own devices or automate parts of their homes. These
grassroots projects focus on managing and controlling devices in the home, such as lights and
other home automation and "infotainment" equipment. The projects are more focused on providing
convenience (such as turning on the heat before you arrive home) than energy savings (which is the
focus of enterprise-sector and public-sector Internet of Things). On the Hype Cycle, the
technologies that represent the consumer perspective include: Quantified Self, Autonomous
Vehicles, Low-Cost Development Boards, Home Energy Management/Consumer Energy
Management, Raspberry Pi, Smart Appliances, Home-Area Network, Broadband-Connected
Televisions, Mobile Health Monitoring, Vehicle-to-Vehicle Communications, and Consumer
Telematics.
Technology Perspective on the Internet of Things

Technology continues to be an enabler and a challenge for the Internet of Things. Standards in the
Internet of Things are generally lacking in many areas, such as security, data, integration and
wireless protocols. Much of the hype on standards is on wireless protocols for the Internet of
Things. Wi-Fi continues to be used for the Internet of Things, despite the power consumption
requirements. Also, Bluetooth low energy (LE) seems to be the way most manufacturers are
connecting their devices to smartphones. The smartphone and tablet are increasingly becoming
gateways through which things connect. This is especially true in health and fitness areas, which
compose the wearable technology and mobile health monitoring spaces.
Just like the smartphone is becoming a gateway to things used on a personal health and fitness
level, the concept of the gateway or hub is also starting to gain more prominence as an architectural
choice. Basically, instead of things connecting directly to the Internet, they are first connected to a
local hub — and this local hub becomes the "face" to the Internet. The gateway/hub concept is
already a mature architecture choice in some Internet of Things areas (for example, streetlighting
and connected buildings), but it is also finding its way into homes. New wireless access points (for
example, SmartThings and Almond+) with multiple wireless protocols for the Internet of Things (that
is, ZigBee, Wi-Fi, Z-Wave) centralize the connection, control and operation of the heterogeneous
things that exist in the home.
Another common architecture choice is to connect things to a centralized cloud-based "hub" (for
example, Axeda, Everyware and Xively) that can take connections from many different types and
standards and provide value-added services (like monitoring, data storage and rule-based trigger)
and actions to downstream systems (for example, ERP systems or control systems). Technologies
that are important to the Internet of Things include: 802.11ah, DASH7, Low-Cost Development
Boards, Wireless Power, Raspberry Pi, Z-Wave, Machine-to-Machine Communication Services,
Mesh Networks: Sensor, IPv6, ISA-95 Integration Standards, 6LoWPAN, 802.15.4/ZigBee, and RF
MCU.

Another very active and necessary set of technologies for the Internet of Things are those related to
information management and analytics. A lot of the value from the Internet of Things will come from
the actions taken based on the information streams coming from things (for example, using
machine sensor data to optimize settings for increased machine yield). CIOs and their IT teams may
not own the connected assets (for example, industrial machines or streetlamps), but they will play a
part in getting value from the "information of things." Note that Big Data has been extended this
year from a two- to five-year time to maturity to a five- to 10-year time frame. This reflects the major
changes that an organization must embrace to adopt Big Data technologies and practices.
Technologies that help to manage and gain insight from the information of things include:
Operational Intelligence Platforms, Decisions and Recommendations as a Service, Data Science,
Context Delivery Architecture, Big Data, Enterprise Information Architecture, and Complex-Event
Processing.
Interpreting the Hype Cycle for the Internet of Things

Nearing the Peak: A number of technologies highlight that data science and analytics will be
required to benefit from the data gathered from the Internet of Things: Operational Intelligence
Platforms; Data Science; and Decisions and Recommendations as a Service. Also in this part of the
Hype Cycle is the emerging practice of IT/OT Integration — an imperative in any enterprise that
wants to succeed with the Internet of Things.
At the Peak: Here we find a whole range of areas and technologies, reflecting that the Internet of
Things is currently at a hyped state. Low-Cost Development Boards (for example, Arduino and
ARM-based mbed boards) and Raspberry Pi highlight the maker movement and the experimental
stage that characterizes the Internet of Things. Big Data, Context Delivery Architecture, Complex-
Event Processing and Enterprise Information Architecture will also become foundations for the
insight provided by the Internet of Things. Smart City Framework, China; Home Energy
Management/Consumer Energy Management; and Facilities Energy Management demonstrate that
the current focus on the Internet of Things is in building, home and city infrastructures. Finally,
Bluetooth 4.0, which includes the Bluetooth LE specifications often used by things such as health
and fitness sensors, is also at the peak, representing the widespread acceptance of this standard.
Heading Into and in the Trough of Disillusionment: Here we find Machine-to-Machine (M2M)
Communication Services. The telecommunications operators have long pushed for M2M data plans
to connect the Internet of Things, but the reality is that there is a mixed environment of cellular and
noncellular connections. M2M cellular plans will coexist with other connection methods, such as
smartphone gateways acting as the connection point for things, or access point hubs that use
ZigBee and alternates to connect to things, but then use Wi-Fi or wired LAN to connect to the
Internet.
In this section of the Hype Cycle, we also find Telematics (pay-as-you-drive insurance), Advanced
Metering Infrastructure and Enterprise Manufacturing Intelligence, which reflect the advancing
maturity of these areas — as well as the realization that the business cases for these areas do not
apply universally. Standards such as IPv6 and ISA-95 are also represented in this part of the Hype
Cycle, and they reflect that addressability and integration standards are maturing. RFID for Logistics

and Transportation remains in the Trough of Disillusionment, but is just emerging as it gets more
established (for example, active RFID is used on transportation assets).
Climbing the Slope of Enlightenment and Reaching the Plateau of Productivity: In these
sections, we find all forms of telematics (public, commercial and consumer) as the concept of the
connected vehicle starts to become a norm (and sometimes a requirement for some demographic
segments) in everyday life, public transportation and enterprise activity. 802.15.4/ZigBee, one of the
earlier wireless protocols for local connection to the Internet of Things, is reaching maturity, but it
will need to compete against upcoming options, such as lower-power Wi-Fi and Z-Wave. RF MCUs,
the wireless-enabled semiconductor chips that will compose much of the Internet of Things, are
widely available, come in many variants and have many technology vendors.
New Additions and Changes to the Hype Cycle

Smart Dust: This is an emerging technology, led by the U.S. Defense Advanced Research Projects
Agency (DARPA), that has significant potential for sensor networks.
Operational Intelligence Platforms: This was added because of the significance of having a solid,
real-time platform for connected things.
Decisions and Recommendations as a Service: This will be a new source of revenue and service,
as soon as activity stream data from things is available.
Data Science: This was added because of the importance of information, computing and analytical
science to the Internet of Things.
Smart Transportation: This was added because it is one of the focal points and early adoption
areas of cities when they develop their smart city strategies.
Low-Cost Development Boards: This was added to acknowledge the maker movement, as well as
the experimental spirit on the consumer side and the enterprise side.
Bluetooth 4.0: This was added to reflect Bluetooth LE's dominance in connecting consumer things
to smartphones and consumer electronics.
Raspberry Pi: Similar to Low-Cost Development Boards, this was added to reflect the maker
movement of the Internet of Things, since the Raspberry Pi is being used as a controller (and more)
in Internet of Things projects.
ISA-95 Integration Standards: This was added to reflect the importance of integration standards in
the enterprise-asset-based Internet of Things (in this specific case, in the industrial sector).
RF MCU: This reflects the broad options and competition among the main semiconductor chips
that compose the Internet of Things.

Figure 1. Hype Cycle for the Internet of Things, 2013
Bluetooth 4.0
expectations Enterprise Information Architecture
Wireless Power
Facilities Energy Management
Smart Fabrics
Raspberry Pi
Low-Cost Development Boards
Smart Appliances
Home Energy Management/
Consumer Energy Management Complex-Event Processing
Big Data
Smart Transportation Home-Area Network
Smart City Framework, China
Internet of Things Broadband-Connected Televisions
DASH7 Operational Technology Security Commercial Telematics
Context Delivery Architecture
Z-Wave Wireless Healthcare
Silicon Anode Batteries Telematics Asset Management
IT/OT Integration Machine-to-Machine Communication Services
Data Science Operational Technology Platform Convergence
Autonomous Vehicles Consumer Telematics
Mobile Health Monitoring
Decisions and Recommendations Mesh Networks: Sensor RF MCU
as a Service Advanced Metering
Quantified Self Infrastructure 802.15.4/ZigBee
802.11ah Enterprise Public Telematics and ITS
Manufacturing 6LoWPAN
Intelligence
Operational Intelligence Platforms RFID for Logistics and Transportation
Vehicle-to-Infrastructure
Communications Vehicle-to-Vehicle Communications
Smart Dust ISA-95 Integration Standards
IPv6
As of July 2013
Innovation Peak of
Trough of Plateau of
Trigger Inflated Slope of Enlightenment
Disillusionment Productivity
Expectations
time
Plateau will be reached in:
obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau
Source: Gartner (July 2013)

The Priority Matrix

The Priority Matrix for the Internet of Things shows that most of the technologies are at least five
years out before being adopted by the mainstream, and they generally have higher levels of
benefits. The Internet of Things is a concept that is, in itself, transformational, and it will take more
than 10 years to gain mainstream adoption. The next five years will see more adoption of the
Internet of Things in enterprise areas compared with public/municipality areas and consumer areas
(which will each take more than five years to mature broadly):
■ In the enterprise area, the first areas to mature (all within five years) will be Facilities Energy
Management, RFID for Logistics and Transportation, Advanced Metering Infrastructure,
Enterprise Manufacturing Intelligence, Wireless Healthcare Asset Management, and Commercial
Telematics.
■ In the public/municipality area, we see most technologies taking more than five years to hit
mainstream adoption (for example, Smart City Framework, China; Public Telematics and ITS;
and Vehicle-to-Infrastructure Communications). In the nearer term (two to five years), we expect
to see Smart Transportation, Commercial Telematics and Facilities Energy Management
adopted into the mainstream by many public organizations and cities.
■ In the consumer area, almost all technologies will hit mainstream adoption in more than five
years. Consumer Telematics, Telematics, Autonomous Vehicles, Home Energy Management/
Consumer Energy Management, Smart Appliances, Broadband-Connected Televisions, Home-
Area Network, Smart Fabrics, and Mobile Health Monitoring all have consumer applications.
Although there is Internet of Things activity on the consumer side today (and will be within the
next five years), it will predominantly remain early adopter, maker movement and niche
applications — not mainstream (that is, greater than 30% adoption).

Figure 2. Priority Matrix for the Internet of Things, 2013
benefit years to mainstream adoption
less than 2 years 2 to 5 years 5 to 10 years more than 10 years
transformational Advanced Metering Autonomous Vehicles Internet of Things

Infrastructure
Big Data Smart Dust
RFID for Logistics and
Transportation Complex-Event Vehicle-to-Infrastructure
Processing Communications
Context Delivery
Architecture
Machine-to-Machine
Communication Services
Smart City Framework,
China
Telematics
Vehicle-to-Vehicle
Communications
high RF MCU 6LoWPAN 802.11ah Data Science

Bluetooth 4.0 Consumer Telematics Mesh Networks: Sensor
Enterprise Information DASH7
Architecture
Decisions and
Enterprise Manufacturing Recommendations as a
Intelligence Service
Facilities Energy Home Energy
Management Management/Consumer
Energy Management
Low-Cost Development
Boards IT/OT Integration
Quantified Self Operational Intelligence
Platforms
Raspberry Pi
Operational Technology
Silicon Anode Batteries Platform Convergence
Smart Transportation Operational Technology
Z-Wave Security
Smart Appliances
moderate Wireless Healthcare Asset 802.15.4/ZigBee Broadband-Connected Public Telematics and ITS
Management Televisions
Commercial Telematics Smart Fabrics
Home-Area Network
Wireless Power
ISA-95 Integration
Standards
low IPv6
As of July 2013
Off the Hype Cycle

Smart Pills: This is not covered this year.

On the Rise
Smart Dust
Analysis By: Ganesh Ramamoorthy
Definition: Smart dust "motes" are tiny wireless microelectromechanical systems (MEMS), robots
or other devices that can detect everything from light, temperature and pressure to vibrations,
magnetism and chemical compositions. They run on a wireless computer network and are
distributed over an area to perform tasks, usually sensing through RFID. As they do not use large
antennae, the range of these systems is measured in a few millimeters.
Position and Adoption Speed Justification: A single smart dust mote typically contains a
semiconductor laser diode and MEMS beam-steering mirror for active optical transmission; a
MEMS corner cube retro reflector for passive optical transmission; an optical receiver, signal
processing and control circuitry; and a power source based on thick-film batteries and solar cells.
Smart dust motes have tiny processors that run programs on a skeleton OS and access equally
small banks of RAM and flash memory. They combine sensing, computing, wireless communication
capabilities and autonomous power supplies within a volume of few millimeters and are generally
aimed at monitoring real-world phenomena without disturbing the original process. They are so
small and light that they can remain suspended in the environment like an ordinary dust particle. Air
currents can also move them in the direction of flow and, once they are deployed, it is very hard to
detect their presence and even harder to get rid of them.
The key applications for smart dust include:
■ Environmental protection (identification and monitoring of pollution).

■ Habitat monitoring (observing the behavior of animals in their natural environment).
■ Military (monitoring activities in inaccessible areas, accompanying soldiers and alerting them to
any poisons or dangerous biological substances in the air).
■ Indoor/outdoor environmental monitoring.
■ Security and tracking.
■ Health and wellbeing monitoring (entering human bodies and checking for physiological
problems).
■ Factory and process automation.
■ Seismic and structural monitoring.
■ Traffic monitoring and management.
As a complete sensor/communication system integrated into a cubic millimeter package is still a

long time off, we have yet to see commercial applications based on smart dust. But some
reasonably small motes are commercially available. One of these, the MICA2DOT, is available from

Crossbow Technology. The unit becomes a mote once a small sensor board, coin battery and
antenna are added to the product. Other commercially available motes are sold by Dust Networks,
which offers motes that are about the size of a matchbox and operate for five years on two AA
batteries. HP has made plans with Royal Dutch Shell to install a million matchbook-sized monitors
to aid in oil exploration by measuring rock vibrations and movement. The sensors, which have
already been developed, will cover an area of six square miles.
At present, much of the activity surrounding smart dust is concentrated on research laboratories
such as the DARPA-funded project at USC Robotics Research Lab, at the University of California,
Berkeley, and JLH Labs. The main purpose of this research is to make smart dust motes as small as
possible — which involves both evolutionary and revolutionary advances in miniaturization,
integration and energy management; and to make it available at as low a price as possible. Given
the wide range of applications and their benefits, however, we believe this technology will have a
transformative effect on all walks of businesses and human lives.
User Advice: Smart dust motes that are currently available off the shelf can be configured with
sensors that measure a variety of properties such as temperature, barometric pressure, humidity,
light intensity, acceleration, vibration, magnetism, acoustic levels and location using GPS. The
combination of these capabilities in a well-designed sensor network can potentially open up
possibilities for delivering numerous services.
Business Impact: The benefits of smart dust are compelling and transformational. Given the
embryonic stage of this technology, it is clear that vendors should build a position for themselves
through patent development for commercial applications, direct funding to research projects or
through equity funding of companies engaged in development. Smart dust will transform the way
humans interact with their surroundings and open up new ways for businesses to deliver services,
and help save costs in the process. This will have wide-ranging implications for businesses,
technological, social, economic and legal practices across the globe.
Benefit Rating: Transformational
Market Penetration: Less than 1% of target audience
Maturity: Embryonic
Sample Vendors: Crossbow Technology; Dust Networks
Operational Intelligence Platforms

Analysis By: W. Roy Schulte
Definition: An operational intelligence platform is a set of development and runtime tools that
enables applications that monitor, alert or support adaptive decision making, based on current
conditions. These platforms have adapters to ingest event data; context stores to hold context data;
logic to find patterns and detect anomalies and other threats and opportunities; decision
management capabilities, such as rules or analytics; interactive dashboards; alerting facilities; and
capabilities to trigger responses in applications, devices or workflow tools.

Position and Adoption Speed Justification: Operational intelligence platform is a new entry on the
Hype Cycle. It is at the Technology Trigger stage and still relatively unknown. It will take several
years to reach the Peak of Inflated Expectations and up to 10 years to reach the Plateau of
Productivity, at which point over half the potential users will be using this technology.
The term "operational intelligence platform" was coined in 2012 because there was no general label
for software that supports applications for continuous (or regularly recurring) monitoring, alerting or
adaptive decision making (see "Commercial Operational Intelligence Platforms Are Coming to
Market"). However, the concept is not entirely new as some kinds of operational intelligence
platform have been used in particular industries or applications for many years. They are known by
labels specific to their purposes, which include supply chain visibility, business process monitoring,
business activity monitoring, manufacturing operations intelligence (see "Hype Cycle for
Manufacturing Product Life Cycle and Operations Management, 2012"), customer contact center
monitoring and truck fleet management. "Operational intelligence platform" is a broad category that
encompasses those established purpose-specific monitoring systems, as well as newly emerging
monitoring systems for other industries and applications. It also encompasses general-purpose
products that can be tailored to virtually any business scenario for which there is no suitable
commercial, off-the-shelf, purpose-specific monitoring and alerting system.
Operational intelligence platforms are often, but not always, used for real-time or near-real-time
decisions. Real-time and near-real-time decisions are those in which at least some of the data used
for making decisions has been generated within the previous 15 minutes. Other decisions are not
real-time because all the data is more than 15 minutes old (it may be hours or days old). When
operational intelligence platforms are used for real-time or near-real-time purposes, and for decision
automation rather than decision support, they are adopting the role of a real-time decisioning
platform.
User Advice: Architects and analysts should use operational intelligence platforms to provide a new
layer of oversight and insight into processes and operations. The platform is sometimes used to
enable panoramic (or "360 degree") monitoring applications that cover end-to-end processes or
multiple aspects of an operation that previously had no continuous (or regularly recurring)
monitoring, or where the monitoring was limited to narrow "keyhole" views of individual application
systems and devices. Operational intelligence platforms should do more than provide visibility; they
should also be used to sense variances from a baseline of historical, expected or desired activity.
They should send alerts to people (as part of decision support) about business threats or
opportunities as they occur. In some cases, these platforms will trigger responses automatically
(decision automation).
Architects and analysts should work with business managers and users to identify what data needs
to be maintained in the context store, and how long it should be held. A context store can integrate
information from multiple applications, sensors or other event sources inside and outside a
company. In some cases, it is used to track each instance of a business process through its life
cycle, even if the process is not managed by a workflow, business process management (BPM) or
business process management suite (BPMS) tool. Context information is continuously (or at least
frequently) refreshed so that decisions made by people or application systems reflect the most
current and complete view of conditions.

Operational intelligence platforms are one of the technologies well suited to implementing intelligent
business operation strategies. They are relevant when retrofitting monitoring, alerting or adaptive
decision-making capabilities on top of processes or operations that will not be replaced or
fundamentally modified, or when implementing monitoring systems across heterogeneous
operations and processes that span multiple business units or disparate application packages.
However, architects should consider intelligent BPMS (iBPMS) products, instead of operational
intelligence platforms, when implementing all-new business processes or making fundamental
changes to processes. iBPMS products also have monitoring, alerting and decision-making
capabilities, so they overlap operational intelligence platforms. iBPMSs tend to have superior
workflow, adaptive case management and structured process orchestration capabilities, but inferior
monitoring and alerting capabilities, although these are generalizations and do not apply to all
products (see "Commercial Operational Intelligence Platforms Are Coming to Market").
Business Impact: The benefits of operational intelligence platforms differ, depending on the
industry and business function to which they are applied. In general, the platforms give business
people broader, more holistic and more current views into their operations. Traditional business
operations are managed using daily, weekly or monthly reports without an operational intelligence
platform (or iBPMS or custom-built monitoring and alerting system). Business people have no way
to monitor the up-to-the-minute status of end-to-end business processes, and have only limited
visibility into conditions in adjacent parts of the business or the outside world. Traditional business
intelligence systems are set up only to report results, not to detect anomalies or other threats and
opportunities.
Operational intelligence platforms operationalize objectives such as reducing customer churn,

expanding sales and reducing the cost of manufacturing or delivery. They help people share a
common operating picture, which improves their ability to collaborate when making business
decisions. They improve the quality of decisions by providing more contextual information and
offloading mathematically based business logic from people and application programs, so that
decisions are better informed and more precise.
Benefit Rating: High
Market Penetration: 1% to 5% of target audience
Maturity: Emerging
Sample Vendors: Access Intelligence; Aha Software; Axway; BusinessPort; C3global; ClearPriority;
FeedZai; Greenlight Technologies; Intelligent InSites; JackBe; Kofax; Lavastorm Analytics; Oversight
Systems; Rockshore; SAP; Software AG; Splunk; Systar; Vitria; West Global
Recommended Reading: "Commercial Operational Intelligence Platforms Are Coming to Market"
"Use Intelligent Business Operations to Create Business Advantage"
802.11ah
Analysis By: Mark Hung

Definition: 802.11ah is a new Wi-Fi standard that is being developed by the IEEE, targeting the
emerging low-power Internet of Things (IoT) market. It will operate in the unlicensed sub-1GHz
bands, excluding the TV white-space bands. Like the current 802.11 standards, it will use
orthogonal frequency division multiplexing (OFDM) as the modulation scheme. It is expected to
have a lower data rate (approximately 100 Kbps) and longer range (up to 1 kilometer [km]) than the
current Wi-Fi technologies. Final ratification of the standard is expected by mid-2015.
Position and Adoption Speed Justification: 802.11ah has just started to be specified in the IEEE
TGah working group. With the first letter ballot not expected before the end of 2013, the standard is
still in an emerging stage.
User Advice: "Thing" makers that are looking to bring products to the market in the 2013 through
2014 time frame are advised to evaluate 802.11ah before being locked into an existing standard,
such as ZigBee, or proprietary sub-1GHz technologies. Vendors that have a more immediate need
are advised to either actively participate in the IEEE activities or monitor it closely to see if their
current implementations can be made forward-compatible. Given that 802.11ah will fall under the
overall Wi-Fi umbrella, it is expected that it will be compatible with the existing Wi-Fi infrastructure.
It may also be able to leverage Wi-Fi's economies of scale to drive down costs.
Business Impact: 802.11ah has the potential to significantly grow the Wi-Fi market from its existing
computing and mobile platforms to the "greenfield" IoT market. However, because it is still in the
early stages of development, it risks being too late to the market and losing out to competing
technologies, such as ZigBee or even low-power versions of 802.11n and 802.11ac.
Maturity: Emerging
Sample Vendors: Aclara; Broadcom; Intel; Marvell Technology Group; Qualcomm Atheros
Quantified Self
Analysis By: Frank Buytendijk; Whit Andrews; Svetlana Sicular
Definition: Originating in San Francisco, Quantified Self is a movement promoting the use of self-
monitoring through a wide variety of sensors and devices. It uses mobile apps and wearable or
portable devices to collect data about a user's activities, biometrics, environment and other
personal experiences. Analysis of this data allows individuals to gain a better understanding of their
experiences and improve their wellbeing. Integration with social media allows users to connect with
peers, share information, gain community support and learn from others.
Position and Adoption Speed Justification: The Quantified Self movement, currently expanding
into Europe with conferences and new chapters, is a trigger for the socialization of new types of
technology. However, it will take two to five years before these are adopted by the mainstream.

Although there are multiple types of applications, the most successful commercial implementations
can be found in sports and health. There are thousands of health-related tools and supporting apps
in smartphone app stores. Commercially-available motion-tracking devices include Nike+, Fitbit,
Amiigo, Basis, Withings, BodyMedia and Jawbone Up. Although the areas of application are quickly
expanding, self-monitoring currently focuses on motion trackers and vital-sign monitoring (blood
pressure and heart rate), but some manufacturers and developers are already talking about mood
monitoring.
The range of devices itself is developing quickly as well. Currently based on wristbands and
reported through smartphones, various high-tech companies including Apple, Google and Samsung
have announced smart watches and devices that can record visual and audio, while displaying
information on displays built into glasses. Numerous startup initiatives are focusing on wearable
computing with sensors in clothing. There are many other objects that are being turned into
monitoring devices. One bra is already fitted out with sensors that detect the first signs of breast
cancer. Or consider slippers with balance sensors and carpet sensors that track movement, or Dr.
Toilet that monitors stool and urine samples, just to name a few. The sudden popularity of these
devices, and the immaturity of the technology, can sometimes cause stability and quality issues.
User Advice: The Quantified Self movement isn't mainstream yet, but the number of personal
devices that collect data and provide feedback to users is increasing. While people under the age of
30 are interested in sharing this information, people over 40 are seeking self-awareness and medical
insight. The ability to tap into the uncharted depths of customer intimacy through offering personal
analytics is also attracting the interest of marketers across all industries. Marketing has never had
the opportunity of being so personal and urgent.
Marketers should, however, be careful what they wish for as users take their analytics perhaps a
little more personally than you'd like. With the advent of personal analytics, consumers feel that they
own the data they collect, whether that data is subject to T&Cs or not. If you violate that sentiment
and the data is used for any reason other than those with direct consumer benefit, protests and
subsequent reputation damage may occur. Over the past two years several cases (involving Internet
providers, retailers, telecom providers, banks and consumer device makers) have made it to the
newspapers.
Marketers that do it right, and focus on personal analytics with a promise to never sell that data, will
get more than a loyal customer; they will get their whole network. When the data benefits the
person that collects it, users will be likely to seek out like-minded companions in an effort to make
their lives better. They will find people who share their interests and they will become ambassadors
for the products and services by suggesting that others join; not just for fun, but to create even
richer comparisons for themselves, to share again with others and, not incidentally, with any
company they feel adds value.
Business Impact: As more people use mobile and social technologies to collect and assemble data
about themselves and their immediate surroundings, business opportunities emerge to facilitate the
process or exploit the collected data. Enterprises may take various steps to catalyze or benefit from
such trends.

They may choose to:
■ Create new devices or applications that generate revenue streams through subscriptions or
advertising.
■ Create devices and applications that provide increased affinity between their core products and
the user.
■ Seek to create incentives (or even imperatives) that encourage or require employees to apply
such analytics to measure performance or honesty, or to track employees in hazardous
environments for health and safety reasons.
Maturity: Emerging
Sample Vendors: Fitbit; Jawbone; Nike
Recommended Reading: "Analytics Gets Personal with the Quantified Self"
Decisions and Recommendations as a Service

Analysis By: Alfonso Velosa; Hung LeHong
Definition: Decisions and recommendations as a service (DRaaS) is a business model where

enterprises receive recommendations from a trusted provider. This model takes the concept of
monetizing data one step further to provide optimized and automated decision choices based on
specific information and business unit (BU) goals. DRaaS can be used on a continuous or as-
required basis.
Position and Adoption Speed Justification: The types of decisions and recommendations
delivered by a DRaaS provider can be a set of action choices (for example, route to drive or
opening/closing valves to maximize flow), settings to optimize asset use (for example, industrial
machine settings to maximize yield), policies to optimize processes (for example, service-level
policies to maximize availability and minimize cost), or recommended prices or offers (for example,
price optimization or next best offer selection). The person or team at the enterprise can then chose
whichever DRaaS choice meets their criteria the best, as part of a process to accelerate the speed
of high-quality decisions.
Most enterprises still operate on, and make decisions based on, the historical data about how their
business models and historical data structure have evolved. However, several trends are emerging
that are driving enterprises to consider new decision models and sources for automated decision
making:
■ The emerging availability of big data sources as diverse as IT systems, customer interactions,
partner systems and the Internet of Things (IoT).

■ The growing need to leverage real-time data or granular operational data.

■ The acceptance of outsourcing models in conjunction with the rise of cloud-based services.
■ Service-oriented architecture (SOA) and cloud-/API-based application development that allows
for easier integration of decision services into business processes and systems.
■ The severe budget constraints that many organizations face, particularly government
enterprises.
Enterprises are increasingly exploring the outsourcing of not just data collection but also the data
analysis and resulting prescriptive recommendations. The core benefit of DRaaS is that it reduces
the potential capital and operational expenditure the enterprises may have had to accrue to collect
the data. Moreover, it allows BUs to leverage other providers' core expertise by outsourcing the
data analysis to expert providers. Examples of this are:
■ The traffic analysis and recommendations that Bitcarrier provides.

■ The maintenance advice that GE provides based on its engine sensors and analysis, or the
technology and service provider getting operational technology (OT) data from the client directly
and sending back maintenance interval and intervention advice.
■ The oncology diagnosis that IBM-Wellpoint's Clinical Oncology Advisor (based on Watson) can
provide to doctors.
Internet-based industries use recommendation engines and offer/ad engines that are precursors to
the DRaaS model.
As the building block technologies and business models mature, we expect to see new models and
opportunities as enterprises leverage DRaaS to increase their competitiveness. For further
information on this, see "Uncover Value From the Internet of Things With the Four Fundamental
Usage Scenarios."
User Advice: Senior managers should conduct experiments in 2013 to 2014 to firmly understand
the business potential of the DRaaS model while limiting their risk. Particular development areas to
focus on will be centered on these two areas:
■ Business potential. Understand how this impacts standard business metrics such as time-to-
market improvements, new performance benchmarks and cost mitigation, as well as look at the
potential for new business or service capabilities.
■ Risk mitigation. SLA terms and conditions as well as getting a deeper understanding of risks
from privacy policies and the loss of key enterprise intellectual property.
The decisions are only as good as the input and causal data that is provided to the DRaaS vendor
so make sure data sources are reliable and clean or have the DRaaS provider get you there. Also
make sure that you take the steps to build trust in the recommendations and decisions supplied by
the DRaaS provider. This is done by slowly introducing automated decision choices and verifying
that they are improving business metrics. This model will need to be tested and analyzed in

controlled, risk-mitigated settings for factors such as the soundness of the decision tree outputs or
privacy considerations, before being considered for use across an entire BU. Use risk mitigation, for
example, where an enterprise will want to assess the legal implications of picking a choice from an
outsourced set of automated decision tools instead of from a human expert.
Note also that implementers will want to ensure the system provides multiple recommendations and
that people are trained in its use and limitations. This is to minimize any intimidation issues for
people not wanting to risk their jobs/careers by contradicting the "expert" system.
From a technology perspective, DRaaS is easier to implement in enterprises that have pursued an
SOA or Web-based-architecture.
Business Impact: This trend is applicable to almost all industry contexts, sizes of organizations and
geographies. DRaaS can be applied to both core and secondary competencies so it can lead to
incremental improvement as well as competitive improvements.
DRaaS can improve decision making that is already in place, such as asset optimization via
improved maintenance cycles. It can also be used to support completely new operations and
revenue areas. These new capabilities could be smart-city operations, such as improving rush hour
traffic by monitoring traffic and recommending better traffic lane settings to city planners. They
could also be new retail revenue-generation opportunities, where malls track the density of shopper
traffic to generate real-time sales or discounts in lower traffic sections.
Maturity: Emerging
Sample Vendors: Bitcarrier; GE; IBM
Recommended Reading: "Uncover Value From the Internet of Things With the Four Fundamental
Usage Scenarios"
Autonomous Vehicles
Analysis By: Thilo Koslowski
Definition: An autonomous vehicle is one that can drive itself from a starting point to a
predetermined destination in "autopilot" mode using various in-vehicle technologies and sensors,
such as lasers, radars and cameras, as well as advanced driver assistance systems, software, map
data, GPS and wireless data communication.
Position and Adoption Speed Justification: Advancements in sensor, positioning, imaging,

guidance and communications technologies, combined with advanced software and cloud
computing, are gaining in precision to bring the autonomous vehicle closer to reality. However,
complexity challenges remain before autonomous vehicles can achieve the reliability levels needed
for actual consumer use cases. The development of autonomous vehicles largely depends on

sensor and map data technologies. Sensor data needs high-speed data buses and very high-
performance computing processors to provide real-time route guidance, navigation and obstacle
detection. The introduction of autonomous vehicles will occur in phases, including the introduction
of automated vehicles that will perform certain tasks, such as steering automatically, but they won't
be completely autonomous.
Autonomous vehicles can also help reduce vehicle emissions by applying throttle more evenly and
avoiding repeated stops at traffic lights because driving speed is matched with traffic management
data. Efforts by nonautomotive companies, such as Google, are helping achieve critical advances in
autonomous driving and educate consumers on the benefits and maturity of the technology.
Key challenges for the realization of autonomous vehicles aren't limited to cost reductions for the
technology, but they increasingly include legal considerations, such as liability and driver-related
aspects. For example, can an intoxicated driver use an autonomous vehicle? Can children use a
self-driving vehicle?
First applications of autonomous vehicles will occur during this decade, and early examples might
be limited to specific road and driving scenarios. In 2013, autonomous vehicle projects and tests
are increasing as automakers, suppliers and technology companies continue to invest in this area.
User Advice: Automotive companies should collaborate with technology vendors (for example,
software, hardware, sensor, map data and network providers) to share the cost and complexity of
experimentation with the required technologies and carefully balance accuracy objectives with user
benefits. Consumer education is critical to ensure that demand meets expectations once
autonomous vehicle technology is ready for broad deployment. For example, drivers will need to be
educated on how to take over manually in case an autonomous vehicle disengages due to technical
error or changing environmental conditions. Specific focus also needs to be applied to the
transitional phase of implementing autonomous or partial-autonomous vehicles together with an
existing older fleet of nonenabled vehicles. This will also have implications for driver training and
licensing.
Business Impact: Automotive companies will be able to market autonomous vehicles as having
innovative driver assistance, safety and convenience features, as well as an option to reduce vehicle
fuel consumption. The interest of nonautomotive companies highlights the opportunity to turn self-
driving cars into mobile-computing platforms that offer an ideal platform for the consumption and
creation of digital content, including location-based services and vehicle IT. Autonomous vehicles
are also a part of mobility innovation, which automotive companies should explore. For example,
autonomous vehicles might lead to new business models in the automotive industry that highlight
mobility-on-demand access over vehicle ownership.
Maturity: Embryonic
Sample Vendors: Bosch; Continental Automotive Systems; Google; Mobileye; Nokia; Valeo

Recommended Reading: "U.S. Consumer Vehicle ICT Study: Web-Based Features Continue to
Rise"
"German Consumer Vehicle ICT Study: Demand for In-Vehicle Technologies Continues to Evolve"
"Predicts 2013: Mobile, Cloud and Information Fuel the Automotive Era of Smart Mobility"
"Maverick* Research: How Technology Is Ending the Automotive Industry's Century-Old Business
Model"
"Google Moves Autonomous Cars Closer to Reality"
Data Science
Analysis By: Douglas Laney; Roxane Edjlali
Definition: Data science is the business capability and associated discipline to model, create and
apply sophisticated data analysis against disparate, complex, voluminous and/or high-velocity
information assets as a means to improve decision making, operational performance, business
innovation or marketplace insights.
Position and Adoption Speed Justification: Data science is a discipline that spans data
preparation, business modeling and analytic modeling. Hard skills include statistics, data
visualization, data mining, machine learning and database and computer programming. Soft skills
that organizations frequently desire in their data scientists include communication, collaboration,
leadership and a passion for data (see "Emerging Role of the Data Scientist and the Art of Data
Science"). This fast-emerging capability is often also associated with big data, which Gartner
defines as "information assets with volumes, velocities and/or variety requiring innovative forms of
information processing for enhanced insight discovery, decision making and process automation."
Unlike other business capabilities, such as CRM for example, data science does not describe the
vector through which the capability delivers strategic benefit. Data science is still an emerging
discipline where practices and ROI benefits are not yet established.
The increasing availability of big data, combined with the arrival of new analytics specialists called
data scientists, indicates a confluence of resources and skills that can help organizations achieve
transformative advances in business performance and innovation. Today, data gathering comes in
many forms: from our transactional systems and social collaborative systems, but also in video and
audio and from outside the enterprise in the form of complex electronic maps, syndicated data and
vast government datasets. Beyond the usual operational data, organizations are moving toward a
world of instrumentation — in which sensors collect continuous detailed data on every manner of
device and process. Even low-level computer system operating data logs are finding new uses (for
example, in the forensic examination of record update time stamps, user behavior modeling, or
preventative maintenance).
Modern analytics tools, high-level script programming languages, powerful algorithms, simple
visualization tools, techniques such as video analytics and cloud sharing of datasets — when all
combined — have demonstrated the potential to transform almost any organization in any sector or
geography. Information-centric companies such as Google, Amazon and Facebook base far more

of their decisions on complex ad hoc analysis of data. Data scientists need to be aware that in the
realm of decision making the data being used is continually morphing and evolving, so that
decisions made possible today may be more richly informed than those made previously (see
"Toolkit: Role Description: Data Scientist").
Like many similar areas, data science is not entirely new and it has historic precursors in specialized
capabilities, such as yield and revenue management, actuarial science, algorithmic trading, and
informatics in various biosciences. In many ways, it extends the scope of existing business analytics
with new and innovative approaches for optimizing business performance. However, the range of
data types, the scale and detail of data becoming available, and the breadth of business use mark
out a completely new level of capability; also, many of the tools, techniques and skills used to
support data science are new. The best people are needed to make it work and they must operate
within a culture that thinks differently about the way decisions are made. The traditional
combination of reactive, requirements-based data warehousing and business intelligence (BI) is
quickly giving way to a more proactive, opportunistic and experimental mode of execution that
combines big data and data science. The term "data science" alone hints at the inclination to follow
the scientific method: one of hypothesis, problem modeling, data gathering, data analysis,
conclusion and retesting. However, since the term speaks more to a spectrum of analytic
techniques than an overall purpose-built capability, we caution management to embrace it with
business objectives in mind (see "No Data Scientist is an Island in the Ocean of Big Data").
The data scientist role is critical for organizations looking to extract insight from information assets
for big data initiatives, and requires a broad combination of skills that may be fulfilled better as a
team, for example:
■ Collaboration and teamwork is required for working with business stakeholders to understand
business issues.
■ Analytical and decision modeling skills are required for discovering relationships within data and
detecting patterns.
■ Data management skills are required to build the relevant dataset used for the analysis.
This role is new and the skills are scarce: leading to a dearth of talent of several hundred thousand
qualified professionals through to the end of the decade. The shortage is so pronounced, and
demand so high, that more than 50% of organizations are now attempting to build these skills from
within rather than pay extreme premiums to source them externally. While universities are
scrambling to come to the rescue, it will be a few years before they churn out data scientists with
any abundance.
The data management side of data science is also giving rise to a role that is becoming more
prevalent, that of the chief data officer (CDO, see "CEO Advisory: Chief Data Officers Are Foresight,
Not Fad"). As information becomes an acknowledged asset, rather than just talked about as one,
CDOs will emerge as the ultimate stewards of these assets. CIOs regularly contend that they are too
consumed with technology-related or functionality-enabling issues to give sufficient attention to the
need for improved curation, management and governance of information. The role of the CDO is to
maximize value and use of data across the enterprise and to manage the associated risk. They will

often focus on the places and ways in which certain information assets will have more impact on
the organization. And, just as other key corporate resources have independent executive oversight
and organizations (such as material assets, financial assets, human capital), information assets are
also beginning to do so. As such, CIOs, CDOs and COOs (or line-of-business leaders) are starting
to form a new and exciting management triumvirate.
User Advice: Catalog and consider the range of data sources available within the organization and
the greater ecosystem of information assets available. Hypothesize and experiment, looking to other
industries for astounding ideas to adopt and adapt. Create sandboxes for data scientists to "play"
in, and don't conflate your data warehouse or BI competency center with the data science function.
Then, confirm the relative economic value of findings and the organization's ability to leverage
results (technically and culturally). Where could they have the most impact and is the organization
ready to enact them? Recognize that data scientists are different from statisticians or BI analysts in
terms of both skill set and goals. But also recognize that they are in short supply, so incubating
skills internally or paying handsomely for top talent are the only options. Data science teaming
arrangements that have the requisite skills in aggregate can work, but are not the same as
individuals with end-to-end abilities. And, as leadership is noted as one of the key inhibitors to
benefiting from big data, strive to develop deeper data literacy and acceptance throughout your
management ranks about the transformative potential of data science.
Business Impact: Businesses that are open to leveraging new data sources and analytic
techniques can achieve considerable competitive leaps in operational or strategic performance over
those of traditional query and reporting environments. Advances in data science have yielded
significant innovations in sales and marketing, operational and financial performance, compliance
and risk management and new product and service innovation, and have even spawned capabilities
for directly or indirectly productizing data itself. While every organization should not expect to
generate quantum advances, incremental ones — with increments larger than before — are to be
expected. Shifting investments and goals from hindsight-oriented descriptive analytics to more
insight-oriented diagnostic analytics and foresight-oriented predictive and prescriptive analytics will
hasten success.
■ Risk: Moderate — Failure to evolve from basic BI is evident in many current business results.
■ Technology intensity: High — IT core concept origins, unusual additional IT investment.
■ Strategic policy change: Moderate — Expansion of analytics and institution of fact-based
execution.
■ Organization change: Moderate — Some new specialists and perhaps a new support function
needed.
■ Culture change: Substantial — Belief that data (as much as experience) should drive decisions
can be very hard to instill.
■ Process change: Low — Some decision processes will change, but core production and
administration processes will not.
■ Competitive value: New industries, radical product and service innovation, cost reduction and
quality improvement, employee and compliance risk reduction.

■ Industry disruption: Three broad categories of industries (as shown below), split on a
combination of related characteristics — the physical nature of the work product (for example,
mining versus banking), the associated capital asset intensity of the business, the service and
knowledge value-add in the business models, and the relative information intensity of the
industry.
■ Weightless (for example, insurance): High — New opportunities to transform enterprise
performance.
■ Mixed (for example, retail and consumer product goods): Moderate — Long-term competitive
rankings changed.
■ Heavy (for example, construction): Low — Visible benefits to a minority of players.
Maturity: Emerging
Recommended Reading: "Emerging Role of the Data Scientist and the Art of Data Science"
"How Data Science Will Drive Digital Marketing Toward Influence Engineering"
"Big Data Strategy Components: IT Essentials"
"Predicts 2013: Information Innovation"
"Toolkit: Role Description: Data Scientist"
IT/OT Integration
Analysis By: Kristian Steenstrup
Definition: Operational technology (OT) is hardware and software that detect or cause a change
through the direct monitoring or control of physical devices, processes and events in the enterprise.
IT/OT integration is the end state sought by organizations (most commonly, asset-intensive
organizations) where, instead of a separation of IT and OT as technology areas with different areas
of authority and responsibility, there is integrated process and information flow.
Position and Adoption Speed Justification: Truly integrated approaches to IT and OT are difficult
to achieve, because there is a deeply rooted tradition in the IT world in which engineers and
operations staff have historically been the "owner operators" of OT. As IT and OT converge, there
are benefits to an organization in aligning how it manages IT and OT. There will be clear
opportunities and demonstrable benefits to integrating the systems in a way that information can be
shared and process flows are continuous, with no arbitrary interruptions. This brings the benefit of
being a more agile and more responsive organization. The data from OT systems will be the fuel for
better decision making in areas such as operations (adjusting and responding to production events)
and plant maintenance.

Few organizations have a mature, systemic approach to IT/OT integration. For most, there may be
touchpoints, but IT and OT are often managed by separate groups with different approaches to
technology and different vendors they relate to. Significant barriers exist from entrenched positions
and attitudes on the IT and engineering sides of the company. In some industries, such as utilities,
we are seeing reverse integration in the sense that OT systems now seek access and integration
with commercial systems (IT), such as demand-response and billing, to improve process
performance, such as distribution network management. In short, the flow of data can be both
ways.
User Advice: Understand the IT/OT convergence in your industry and company, first. Then, look to
a program of alignment. After that, you can commence to progressively have a more integrated
approach to technology, regardless of whether it is IT or OT. This integration should extend at least
to the exchange of data and the maintenance of the platforms, with particular attention to
communications, security and enterprise architecture. In some organizations, this will result in a fully
integrated staff who no longer delineate between IT and OT.
Business Impact: The benefits for asset-intensive businesses will be an organization much more
capable of managing information and processes. For example, a company might implement a basis
for better reliability and maintenance strategies through more-direct access to condition and usage
data for plants and equipment. Operational intelligence will provide better production management,
control and responses to events in the supply chain and production processes. For utilities, this is
closely connected to the smart grid. Enhanced capabilities will be in billing (integration with smart
metering), distribution management, power trading and generation scheduling.
Maturity: Emerging
Sample Vendors: Eurotech; RTI
Recommended Reading: "Convergence of Digital Technologies Needs Expanded and

Strengthened IT Governance"
"Five Critical Success Factors for IT and OT Convergence"
"The CIO's Role in Managing the Expanding Universe of Digital Technologies"
"Agenda Overview for Operational Technology Alignment With IT, 2013"
"Establish Common Enterprise Semantics for IT/OT Integration"
At the Peak
Silicon Anode Batteries

Analysis By: Jim Tully

Definition: Silicon anode batteries are an extension of widely used lithium ion (Li-Ion) batteries.
Early generation Li-Ion batteries used lithium as the anode material. This was replaced with carbon/
graphite following a number of widely-reported overheating and explosion incidents. Next-
generation Li-Ion batteries are likely to make use of silicon anodes that utilize silicon nanotubes, or
a comparable coating process. This will result in significantly higher energy storage and longer
battery life.
Position and Adoption Speed Justification: Claims from companies and research teams range
from three-to-10 times greater energy storage than current Li-Ion batteries (with three-times greater
being more realistic in the short term). Significant volume and weight savings and a longer operating
lifetime are additional benefits of the technology. Charging times will be similar to those of existing
Li-Ion batteries. The technology will find widespread use in mobile devices, PCs, electric vehicles
(EVs) and home energy storage/solar installations. Environmental benefits are achieved from
reduced material usage, lower transportation costs in the supply chain and increased energy
efficiency during usage. The use of nanowires also supports an increased number of charge/
discharge cycles, leading to longer battery life. Related technology development involves the use of
carbon nanotubes in the cathode. The combination of both silicon nanowires in the anode and
carbon nanotubes in the cathode promises significant further benefits, but this is yet to be
quantified.
A number of suppliers are rushing to develop and evaluate this technology. During 2010, Nexeon
announced the signing of material evaluation agreements with a number of battery and automotive
companies. Around the same time, Panasonic announced its intention to start volume production of
silicon anode Li-Ion batteries for PCs in 2012. 3M has recently announced further research activities
and an acceleration of manufacturing plans. Nevertheless, developments have been relatively slow
over the past year, mostly because of the economic climate. We have therefore left the position
unchanged from 2012.
Initial implementations will probably only offer modest performance improvements, compared with
the full capability of the technology. However, there is now considerable momentum behind moving
the technology into production.
User Advice:
■ Users should monitor developments. If the technology looks useful for the purpose, interest
should be expressed to vendors of equipment like PCs or smartphones.
■ Vendors should evaluate the technology aggressively and begin to make appropriate system
design changes in anticipation of the new batteries.
■ Users of equipment in isolated areas, with limited power availability, should evaluate offerings in
preparation for early adoption.
■ Makers of EVs should evaluate these batteries. While charging time is not affected, the energy
stored is significantly higher, resulting in longer journey times between charges.
Business Impact:

■ Longer working times will facilitate more powerful mobile devices and applications.
■ Due to their smaller physical size and weight, silicon anode Li-Ion batteries offer the potential
for use in mobile devices and other equipment causing smaller carbon footprints.
■ EVs and related systems should receive a boost from this battery technology.
■ End-of-life issues are unaffected for this change of anode technology. No additional impact (on
recycling or toxicity) is expected at this time.
Maturity: Emerging
Sample Vendors: 3M; Amprius; LG Chem; Nexeon; Pacific Northwest National Laboratory;
Panasonic; Sanyo
Context Delivery Architecture

Analysis By: Gene Phifer; Ian Finley
Definition: Context delivery architecture (CoDA) builds on service-oriented architecture (SOA) and
event-driven architecture (EDA) interaction and partitioning styles, and adds formal mechanisms for
the software elements that discover and apply the user's context in real time.
Position and Adoption Speed Justification: Context-aware computing involves improving the
user experience for customers, business partners and employees by using the information about a
person's or object's environment, activities, connections and preferences to anticipate the user's
needs and proactively deliver the appropriate content, product or service. Enterprises can leverage
context-aware computing to target prospects, increase customer intimacy, and enhance associate
productivity and collaboration. From a software perspective, context is information that is relevant
to the functioning of a software process, but is not essential to it. In the absence of this additional
information, the software is still operational, although the results of the software's actions are not as
targeted or refined.
The first fully context-aware technologies were horizontal portal products, which used both static
and dynamic context attributes, coupled with a rule engine, to deliver relevant access to content,
applications, business processes and people. Prior to portals, personalization engines exhibiting
some context awareness were used to fine-tune recommendations for product purchases based on
prior purchase history and collaborative filtering. The most visible recent addition of context
awareness was delivered via mobile devices, most notably location-based services. Most context-
enriched services are implemented in siloed, proprietary systems, where a particular person, group
or business process profits from being situationally aware. To replicate, scale and integrate such
systems, a new set of services, supported by an architectural construct known as CoDA will
emerge.

CoDA provides a conceptual framework for solution architects that enables them to define and
implement the technology, information and process components that allow services to use context
information to improve the quality of the interactions with the user. The technologies may include
portal products, context brokers, state monitors, sensors, analytic engines and cloud-based,
transaction-processing engines. Context-aware computing is maturing relatively slowly, compared
with mobile and Web design. This is natural, because CoDA will rely on those technologies to
provide a stable base on which context-enriched services can be built.
CoDA will also define data formats, metadata schemas, interaction and discovery protocols,
programming interfaces and other formalities. As an emerging best practice, CoDA will enable
enterprises to create and tie together the siloed context-aware applications with increased agility
and flexibility. For employee-facing apps in the enterprise, as with SOA, much of the pull for CoDA
will come from packaged-application and software vendors expanding to integrate communication
and collaboration capabilities, unified communications vendors and mobile device manufacturers.
Web megavendors (e.g., Google), social-networking vendors (e.g., Facebook) and service providers
will also expand their roles to become providers and processors of context information.
The CoDA style considers information, business and technology domain viewpoints. The technology
domains are application infrastructure, communications infrastructure, network services and
endpoints (devices). Thus, CoDA provides a framework for architects to discover gaps and overlap
among system components that provide, process and analyze contextual information. A key
challenge for CoDA will be information-driven, rather than technology-driven. This key challenge will
revolve around what information sources can provide context; which technologies will enable that
information to be provided in a secure, timely and usable manner; and how this information can be
folded into processes.
Gartner introduced the term "CoDA" in 2007, based on developments in such areas as mobile
communications and cloud computing. Through year-end 2013, we expect aggressive enterprise
architects and project managers to weave elements of CoDA into their plans to orchestrate and
build context-enriched services that rely on federated information models and delivery services.
CoDA relies on SOA as a foundation and is related to EDA, because enterprise architectures need
to be agile and scalable to support context-aware computing. We expect CoDA to evolve into a
new, lighter-weight style of architecture, leveraging the progress of the main context providers. It
will reach the Plateau of Productivity gradually, after 2015.
User Advice: Although CoDA is an emerging architectural style, Type A organizations can benefit in
the short term by applying its principles as they experiment with use of context information to
improve user experiences in customer-facing services and enterprise productivity. Leading-edge
organizations should begin to incorporate CoDA constructs into infrastructure and services to gain
competitive advantages with the early use of context-aware computing. Type A organizations
should now be identifying which information sources, external (e.g., from social software sites) and
internal to the enterprise, will provide context information to a range of applications.
Build competencies in CoDA's technology domains, particularly in communications, because the

migration of voice from silos to general applications will be a key transformation, opening up new

opportunities to create applications enhanced by context-enriched services. Understanding mobile

development will also be key. The refinement of your enterprise architecture to include CoDA
constructs assumes prior investment in SOA. Most mainstream, risk-averse organizations should
not invest in building a CoDA capability; instead, they should explore the acquisition of context-
enriched services through third parties.
Business Impact: Context awareness is a distinguishing characteristic of some leading software

solutions and advertising services, particularly personalized advertising that targets mobile users
from Apple, Microsoft, Google, Facebook and others. During the next three to five years, context-
aware computing will have a large impact on Type A businesses in two areas:
■ Extending e-commerce and mobile-commerce initiatives toward consumers

■ Increasing the efficiency and productivity of the businesses' knowledge workers and business
partners by providing relevant access to content, applications and business processes
Context-aware computing will evolve incrementally and gain momentum, as more information
sources become available, and cloud-based, context-enriched services emerge. However, these
will initially be siloed and will not use a standard or shared CoDA model.
Maturity: Emerging
Sample Vendors: Appear Networks; Apple; Google; IBM; Interactive Intelligence; Nokia; Pontis;
Sense Networks; Wolfram Alpha
Recommended Reading: "The Competitive Dynamics of the Consumer Web: Five Graphs Deliver a
Sustainable Advantage"
"An Application Developer's Perspective on Context-Aware Computing"
"Predicts 2013: Context-Aware Computing"
"Drive Customer Intimacy Using Context-Aware Computing"
DASH7
Analysis By: Sylvain Fabre
Definition: DASH7 is a standard, promoted by the DASH7 Alliance that leverages the 433MHz band
unlicensed spectrum, supporting the networking of sensors up to 2 km apart and in-building
positioning within one meter. The battery life for modules can be several years, with DASH7
supporting the Advanced Encryption Standard (AES) 128-bit public key encryption and data rates of
200 Kbps.

Position and Adoption Speed Justification: Early interoperability tests have occurred between a
few vendors, but some work remains to diffuse this technology to a broader set of vendors and
promote wider adoption. Additionally, despite being an attractive value proposition (compared to
competing standards such as ZigBee), it remains to be seen which standard will emerge as the
dominant standard over time.
User Advice: Companies that are active or considering engagement in sensors, machine to
machine and/or Internet of Things, should be aware of, and make preparations to test this open
source technology.
Business Impact: DASH7 has uses for smart-building scenarios, as well as location-based
services, mobile advertising, vehicle and logistics applications (low latency for vehicle connectivity)
and defense.
Maturity: Emerging
Sample Vendors: Bosch; SkyBitz; Texas Instruments; WizziLab
Internet of Things
Analysis By: Hung LeHong
Definition: The Internet of Things is the network of physical objects that contain embedded
technology to communicate and sense or interact with their internal states or the external
environment.
Position and Adoption Speed Justification: While the Internet of Things is getting more attention
overall, interest in the Internet of Things has grown faster than implementations. A good way to
understand adoption and maturity in the Internet of Things is to observe the various types of
enterprises and industry applications:
■ On the more advanced side, there are enterprises that are often in asset-intensive industries
that have long had "connected" assets (e.g., utilities, industrial). These enterprises are dealing
with the convergence of operational technology (OT) with information technology (IT) as they
modernize from proprietary and silo-based systems to more integrated and standards-based
systems.
■ Another advanced asset-intensive market is building and facilities management, where energy
savings and environmental benefits create a good business case for the Internet of Things.
■ In both the private and public sector, we also see an increase in selectively augmenting existing
assets with sensors and wireless connections to make these assets remotely manageable.
Examples include city infrastructure (e.g., street lights) and healthcare assets. As major existing

assets come to the end of their life cycles, we expect to see the increased purchase of new
assets that come with Internet of Things capabilities "out of the box."
■ On the consumer side, there is a whole collection of startups that are responding to the maker
movement. See crowdfunding sites, like Kickstarter, to get a good sense of what is being
pursued. Much of the focus is on the connected home, where convenience and energy savings
are the pursued benefits. Unlike the enterprise side, consumer applications are favoring
convenience and gadget-appeal over cost savings as the main reasons for adopting the Internet
of Things.
■ Most enterprises are currently at the "education" stage. They are looking to see how they might
leverage the Internet of Things in their enterprise and with their customers.
On the technology side, there continues to be slow progress toward standardization. Internet of
Things wireless protocols continue to vie for dominance, but no clear leader stands out universally.
There are some exceptions. Bluetooth LE is getting strong adoption as the wireless protocol to
connect things to smartphones, tablets and computers. We expect continued standardization, but
also expect a heterogeneous and fragmented environment. As such, platforms and hubs used to
connect and manage things using different standards and protocols have gained much popularity
on the enterprise and consumer side. These platforms will become very important in complex
ecosystems such as cities and building campuses.
User Advice: Enterprises should pursue these activities to increase their capabilities with the
Internet of Things:
CIOs and enterprise architects:
■ Work on aligning IT with OT resources, processes and people. Success in enterprise Internet of
Things is founded in having these two areas work collaboratively.
■ Ensure that EA teams are ready to incorporate Internet of Things opportunities and entities at all
levels.
■ Look for standards in areas such as wireless protocols and data integration to make better
investments in hardware, software and middleware for the Internet of Things.
Product managers:
■ Consider having your major products Internet-enabled. Experiment and work out the benefits to
you and customers in having your products connected.
■ Start talking with your partners and seek out new partners to help your enterprise pursue
Internet of Things opportunities.
Strategic planners and innovation leads:
■ For enterprises with innovation programs, experiment and look to other industries as sources
for innovative uses of the Internet of Things.
Information management:

■ Increase your knowledge and capabilities with big data. The Internet of Things will produce two
challenges with information: volume and velocity. Knowing how to handle large volumes and/or
real-time data cost-effectively is a requirement for the Internet of Things.
Information security managers:
■ Assign one or more individuals on your security team to fully understand the magnitude of how
the Internet of Things will need to be managed and controlled. Have them work with their OT
counterparts on security.
Business Impact: The Internet of Things has very broad applications. However, most applications
are rooted in four usage scenarios. The Internet of Things will improve enterprise processes, asset
utilization, and products and services in one of, or a combination of, the following ways:
■ Manage — Connected things can be monitored and optimized. For example, sensors on an
asset can be optimized for maximum performance or increased yield and up time.
■ Charge — Connected things can be monetized on a pay-per-use. For example, automobiles
can be charged for insurance based on mileage.
■ Operate — Connected things can be remotely operated, avoiding the need to go on site. For
example, field assets such as valves and actuators can be controlled remotely.
■ Extend — Connected things can be extended with digital services such as content, upgrades
and new functionality. For example, connected healthcare equipment can receive software
upgrades that improve functionality.
These four usage models will provide benefits in the enterprise and consumer markets.
Maturity: Emerging
Sample Vendors: Atos; Axeda; Bosch; Cisco; Eurotech; GE; Honeywell; IBM; Kickstarter; LogMeIn;
Microsoft; QNX; Schneider Electric; Siemens
Recommended Reading: "Uncover Value From the Internet of Things With the Four Fundamental
Usage Scenarios"
"The Internet of Things Is Moving to the Mainstream"
"The Information of Things: Why Big Data Will Drive the Value in the Internet of Things"
Smart City Framework, China

Analysis By: Tina T. Tang; Bettina Tratz-Ryan

Definition: A smart city is an urban area where multiple sectors cooperate to achieve sustainable
outcomes by analyzing contextual information exchanged among sector-specific systems. The
interaction between sector-specific (for example, utility, public sector and education) and intrasector
information flows results in transfer of more resource-efficient and sustainable lifestyles and
knowledge. Urban areas consist of a subset of clusters, such as buildings, business parks,
residential areas, entire cities or groups of cities.
Position and Adoption Speed Justification: The smart city development in China is driven by the
12th Five-Year Plan for 2011 through 2015, which emphasizes the significance of sustainable urban
development to reduce carbon emissions while increasing urbanization to 51.5%. The National
Development and Reform Commission designated five provinces and eight cities as the first pilot
areas, including a pilot carbon emission trading framework that is intended to generate economic
growth while reducing carbon emissions.
The Chinese government stipulated a 40% to 45% reduction in the carbon intensity required to
generate GDP by 2020, relative to 2005, and 17% by the end of 2015. Because cities and urban
sprawl generate the most carbon emissions in China, the 12th Five-Year Plan uses specific
measures to target cities and urban regions to reduce carbon and energy consumption. For
example in March 2013, The Ministry of Environmental Protection of PRC defined special emission
limits of atmospheric pollutants for six key industries: thermal electricity, iron and steel,
petrochemical, cement, nonferrous metal and chemical, plus coal boiler projects. The special
emission limits on atmospheric pollutants apply to 47 cities of 19 provinces, districts and cities
around Beijing, Tianjin and Hebei province; Yangtze River Delta; and Pearl River Delta.
In addition to energy and electricity use, carbon emission reductions also affect urban
transportation policy. With traffic congestion in major cities resulting in high pollution and
inefficiency, reducing carbon emissions based on changing traffic patterns and public
transportation is a key focus. In addition, waste management and water quality, as well as adequate
water supply to grow cities, are also keys to the smart city concept. China's water scarcity and risk
of water impact, such as flooding due to meteorological events, make Chinese coastal lines and
river cities prone to floods and disasters.
While the government is planning an overall carbon-centric approach, city governments are
applying a more practical view by building IT infrastructure capable of attracting foreign and national
investment, while being leveraged to import information from different sources of the Internet of
Things, such as mobile phones, sensor networks, Wi-Fi endpoints and GIS. In mapping urban
designs to sustainability, including carbon and resource metrics, municipal and city leadership, as
well as the national commissions, have to agree on defining soft and hard standardized metrics
beyond carbon intensity. Those standards have to translate into benchmarks for energy efficiency,
pollution levels, transportation emissions, length of commuter trips, air quality and other metrics,
which are important as standardized means to ensure that sustainable business and residential
benefits in cities are being achieved.
The government has initiated a reference Implementation of Nationalized Middleware & Platforms,
as well as a product R&D and Industrialization of Integrated Middleware Suite, which presents a
digital geographic framework nationwide by 2015 and includes a technical discussion on servers,
DC, IT integration, and cloud with respect to smart city technology and integration.

User Advice: Enterprise customers need to be aware of all administrative tools that will be
deployed to measure sustainable business behavior and outcomes, such as reduction of energy
consumption and carbon dioxide emission, or softer sustainable benefits, such as better
transportation and transit means, and better education and healthcare. In many ways, enterprises
have to adapt in the short term to consumption-based efficiency measures for electricity, water and
heating supply in the workplace and home. Municipal leaders are striving to open market models to
give users more choice for greener and more-sustainable resources, with clear labels classifying
origin and ingredients. However, most likely, standardization of metrics and measures will result in
higher prices that can be curbed only by a bigger variety of sustainable offerings and services in a
city. Those service offerings are just emerging to be clarified by Chinese leaders, as well as city
administrators and private investors. In addition, market conditions, such as deregulation of the
energy-generation monopoly, distribution of grid and user information in different sectors, as well as
the interlock between different sectors and private partnerships, must be established to ensure the
regulatory and economic base is transparent to create smart city business and functionality models.
Business Impact: Although all attention is focused on the state government's smart city and low-
carbon city guidelines in the 12th Five-Year Plan, technology and service providers should focus on
cities' individual needs. Indicators such as social/demographic, environmental or economic
benchmarks trigger different starting points for developing the smart city concept, driven, in some
instances, by consulting and advisory providers, and in other instances, by engineering-driven
technology providers. In many cases, system integration of intelligent management solutions and
operational technology is key to generating the knowledgebase of the information and data flows
from devices, meters or sensors in utility or road grids and automating the decision rules based on
analysis of those flows.
In China, ecosystems of technology, solutions and service providers need to be in place to

implement and manage the specific solutions required. Local expertise, integration capabilities and
customs, as well as know-how about people and business functionality, are connected with global
solution providers to bring scale and expertise into the Chinese market. In many ways, operational
technology, which includes road and transportation systems, and building automation or advanced
metering systems, is the first step before intelligent networks even occur. Operational technology
also serves as the foundation to supplying a growing urban population with the needed
infrastructure in a sustainable and most-carbon- and resource-efficient way.
Local government must respond to translate metrics into those sector deployments and require an
intelligent and integrated framework to gain the synergy effects and stability of resource supply.
Urbanization will bring challenges for local government; the population will increase quickly and be
closely linked with improvements to living conditions, including healthcare, social insurance and
transportation. To ease the challenges, local government will be forced to consider a smart city
plan; issuing unified smart cards could be an effective way to manage the increasing population.
This also provides opportunities for IT providers to develop smart card solutions based on local
government guidance.

Maturity: Emerging
Sample Vendors: Accenture; Cisco; Digital China Holdings; Founder; HP; Huawei Technologies;
IBM; Insigma; Schneider Electric; Siemens
Recommended Reading: "Predicts 2012: Embryonic Smart City Processes Point to Opportunities"
"Hype Cycle for Smart City Technologies and Solutions, 2011"
"IT Strategy Implications From China's 12th Five-Year Plan"
"Market Insight: What IT Services Providers Need to Know About China's 12th Five-Year Plan"
"How Smart Government Principles Apply to Smart Cities"
Smart Transportation
Analysis By: Bettina Tratz-Ryan; James F. Hines; Nagayoshi Nakano
Definition: Smart transportation is a comprehensive framework that describes an information- and

process-enriched mobility concept. Smart transportation uses driver/user-specific vehicle, traffic
and infrastructure management intended to help sustainability and urban economic performance. It
is applied while building service models based on driving analytics, traffic and parking. Current
service models include vehicle and driver control systems, congestion charging and road toll
collection, intelligent transportation systems and parking guidance systems.
Position and Adoption Speed Justification: Smart transportation is a key demand-based urban
mobility concept that optimizes modes of transportation in the most efficient, sustainable ways
possible for its users. Especially in smart cities, the contextual information about the residents and
businesses and their mobility needs enable a comprehensive mapping of data such as time, number
of vehicles and travelers, pricing of road traffic per time of day and user, and environmental
impacts, such as pollution, noise, productivity losses and people's perception of environmental
quality.
Especially with the introduction of electric mobility in urban corridors, cities have an opportunity to
build a smart transportation strategy based on service levels. The strategy would be based on
environmental- and efficiency-based metrics, such as the number of high occupancy vehicles and
zero-carbon-emission vehicles, energy-efficient traffic management and the use of more pedestrian
friendly walkways.
The complexity of the smart transportation ecosystem extends beyond vehicles. For example, the
smart transportation concept reaches into details such as energy utility services for recharging
electric vehicles, public lighting systems for street parking, and safety surveillance for tunnels,
roadways and bridges. The key value to urban development and smart cities is the analysis of the
information derived from all the various transportation ecosystem partners and the translation of
that data into contextualized and measurable benefits for citizen and infrastructure operations.

Many cities have started to deploy transportation and traffic initiatives, which include congestion
charging (Stockholm, Singapore), dynamic pricing for parking (Los Angeles and Santa Monica,
California) and traffic analytics (Barcelona, Spain, and New York). However, many cities have not yet
created an integration plan to leverage municipal services with infrastructure management.
Businesses are also innovating with the smart transportation concept. For example, insurance
company Generali, which uses transportation statistics to shape its driving insurance policies, is
also assessing the environmental impact of frequent stop-and-go driving.
Therefore, smart transportation is located before the Peak of Inflated Expectations and is probably
accelerating as electric vehicles, pushed especially in Europe, are speeding up the development of
smart transportation frameworks.
User Advice: Smart transportation will support applications for knowledge workers dependent on
the mobile-enabled work environment. IT leaders will be able to tap the information base from
corporate fleets and business-driven processes, such as delivery tracking and facility workflow,
human and asset management.
However, IT leaders will be challenged in their roles if they do not adapt to the new IT-enabled
environment that sits outside of their defined boundaries of IT-supported processes. For example,
vehicles are not typically under IT purview. But in a smart transportation ecosystem, a company's
vehicle fleet can generate useful data as well as present challenges if the vehicles have business
applications embedded in their onboard systems. Smart city CIOs and digital offices can utilize the
information base from the Internet of Things for transportation and traffic processes to better
identify bottlenecks in transportation and traffic flows and integrate a more service-oriented
payment approach rather than a simple payment program, such as a time-based fee system, to
fund infrastructure.
City IT leaders need to build a consensus with stakeholders to leverage different datasets and
develop critical process methods, technology solutions and security policies to protect the data and
information of their citizens.
Business Impact: Smart transportation challenges the conventional thinking that congestion
charging will change traffic patterns. In fact, congestion charging is just a short-term method that
allows cities to capitalize on traffic but only marginally improve traffic flow.
Smart transportation requires a comprehensive approach that starts with an impact assessment of
productivity losses based on traffic congestion, pollution and noise levels, the inconvenience levels
of commuters and residents, and safety and security issues. Only after this assessment can urban
planners, city CIOs and business leaders develop scenarios that can actually reduce congestion
and the effects of traffic.
Analyzing driving patterns of vehicles and drivers can generate business services for vehicle
insurance companies and fleet management announcements for scheduled arrivals based on real-
time information from the drivers' environments. Traffic pattern analysis can be used to develop a
traffic congestion charging system that has dynamic pricing based on the number of riders and if
vehicles are environmentally friendly. On-street and off-street parking guidance systems would

allow drivers to share real-time information about space availability. This would decrease
congestion while allowing delivery businesses to schedule timely stops at unloading zones while
avoiding heavy traffic.
Smart transportation would also provide an extra measure of safety in addition to offering efficiency,
convenience and a high quality of life for citizens and businesses. In smart city projects in Japan,
electric vehicles double as large, transportable batteries to supply energy to disaster relief facilities.
That way, a smart city can ensure that "lighting and information are never ceased" even during a
crisis, such as Ishinomaki, Japan, during the March 2011 earthquake and tsunami. City leaders,
including city CIOs, should consider smart transportation as a way to enrich administrative services
and raise a city's attractiveness to citizens and enterprises.
Maturity: Emerging
Sample Vendors: Bitcarrier; CVIC SE; Fujitsu; Hitachi; IBM; Insigma; ParkHelp; Reply; Schneider
Electric; Siemens VDO Automotive; Streetline; tecsidel
Recommended Reading: "Innovation Insight: Smart City Aligns Technology Innovation and Citizen
Inclusion"
Big Data
Analysis By: Mark A. Beyer; Sid Deshpande
Definition: Big data is high volume, velocity and variety information assets that demand cost-
effective, innovative forms of information processing for enhanced insight and decision making.
Position and Adoption Speed Justification: Big data is almost at the Peak of Inflated
Expectations. It will become an embedded and state-of-the-art practice by 2018, and it is more
likely that big data management and analysis approaches will be incorporated into a variety of
existing solutions in existing markets (see "Big Data Drives Rapid Changes in Infrastructure and
$232 Billion in IT Spending Through 2016").
Notably, organizations have begun to indicate that existing analytics will be modified and enhanced
by big data and not replaced (only 11% of data warehouse leaders indicated they would consider
replacing the warehouse with a NoSQL or big data solution as of November 2012, down from just
over 20% in 2011). Practices are diverging at this point, with confusion starting to emerge regarding
exactly what constitutes big data and how it should be addressed. Some very traditional vendors
that have not been considered for big data solutions should be considered, and this confusion may
be their entry point into the debate about which tools to use. Other vendors will simply relabel their
existing products as big data and not actually offer anything new.

Beginning late in 2014 and through the end of 2015, big data will descend into the Trough of
Disillusionment as conflicting concepts of what it is and how organizations can benefit from its
management and analysis multiply.
There are two significant facts that will drive it into the trough.
■ Tools and techniques are being adopted ahead of learned expertise and any maturity/
optimization, which is creating confusion.
■ The inability to spot big data opportunities by the business, formulate the right questions and
execute on the insights.
MapReduce continues to persist as the "darling" of big data processing. Even with new additions or
wider use of the Hadoop project (such as HCatalog) it remains a batch solution and so has to be
combined with other information management and processing technologies. Hadoop
implementations require expert-level staff or system implementers.
As anticipated in 2011, attempts to combine MapReduce with Graph have followed and inadequate
attempts to address other big data assets, such as images, video, sound and even three-
dimensional object modeling, will drive big data into the trough. Some big data technologies
represent a great leap forward in processing management, especially relevant to narrow but deep
(many records) datasets, such as those found in operational technology, sensor data, medical
devices and mobile devices, among others. Big data approaches to analyzing data from these
technologies represent the potential for big data solutions to overtake existing technology solutions
when the demand emerges to access, read, present or analyze any data.
The larger context of big data refers to the wide variety and extreme size and count of data creation
venues in the 21st century. Gartner clients have made it clear that big data must include large
volumes processed in streams, as well as batch (not just MapReduce) and an extensible services
framework deploying processing to the data or bringing data to the process, spanning more than
one variety of asset type (for example, not just tabular, or just streams or just text). Importantly,
different aspects and types of big data have been around for more than a decade — it is only recent
market hype around legitimate new techniques and solutions that has created this heightened
demand.
User Advice:
■ Identify existing business processes that are hampered in their use of information because the
volume is too large. There are many information gaps that could be filled by new information
types (variety) or the velocity will create processing issues. Then identify business processes
that are currently attempting to solve these issues with one-off or manual solutions.
■ Review existing information assets that were previously beyond existing analytic or processing
capabilities (referred to as "dark data") and determine if they have untapped value to the
business, making them a first or pilot target of your big data strategy.
■ Plan on utilizing scalable information management resources, whether public cloud, private
cloud or resource allocation (commissioning and decommissioning of infrastructure), or some

other strategy. Do not forget that this is not just a storage and access issue. Complex,
multilevel, highly correlated information processing will demand elasticity in compute resources,
similar to the elasticity required for storage/persistence.
■ Extend the metadata management strategies already in place and recognize that more is
needed to enable the documentation of big data assets, their pervasiveness of use and the
fidelity or assurance of the assets by tracking how information assets relate to each other and
more.
Business Impact: There are three principal aspects to big data — success will be limited unless all
are addressed. The quantitative aspects of big data generally do not emerge one by one. Volume,
variety and velocity most often occur together. The second aspect is that innovation must be cost-
effective both in costs to deploy and maintain and in terms of time to delivery — solutions that
arrive too late are useless, regardless of cost.
Finally, the focus must be on increased insight by the business into process optimization from
immediate automation through the development of completely new business models. Big data
permits greater analysis of all available data, detecting even the smallest details of the information
corpus — a precursor to effective insight and discovery.
The primary use cases emerging include leveraging social media data and combining operational
technology (machine data) with back-office and business management data and further validating
existing assets (increasing their "fidelity").
Perhaps the most important business benefit of big data management and analysis techniques are
that analytics and decision processing can include multiple scenarios, including highly disparate
definitions and temporality of events in the data. This means that analytics can now comprise many
different scenarios. Each scenario could have different starting and ending points, and differing
relationships within the data and circumstantial inputs. Finally, analysts would be able to attach
probabilities to each scenario and monitor many of them simultaneously.
Maturity: Adolescent
Sample Vendors: Cloudera; EMC (Greenplum); HortonWorks; IBM; MapR; Teradata (Aster Data)
Recommended Reading: "Big Data Drives Rapid Changes in Infrastructure and $232 Billion in IT
Spending Through 2016"
"Big Data' Is Only the Beginning of Extreme Information Management"
"How to Choose the Right Apache Hadoop Distribution"
"CEO Advisory: 'Big Data' Equals Big Opportunity"
"The Importance of Big Data: A Definition"

Home Energy Management/Consumer Energy Management

Analysis By: Chet Geschickter; Zarko Sumic
Definition: Home energy management (HEM) is a technology that optimizes residential energy
consumption/production. Solutions include software tools that analyze energy usage, and home-
area network (HAN) energy management devices that respond to variable power prices or other
user-defined parameters. HEM is usually connected to utility systems via consumer gateways that
may be stand-alone devices or embedded in smart metering solutions.
Position and Adoption Speed Justification: The evolution of HEM is progressing unevenly.
Consumer technology markets and utility markets have different dynamics, and utility companies
have little experience in delivering technology products to consumers. After some initial
experimentation with consumer energy management (CEM) technology, utilities are stepping back
and focusing on providing enabling technology for CEM systems, such as advanced metering
infrastructure (AMI) and enabling technologies for demand response, such as programmable
communicating thermostats. The benefit-cost ratio for comprehensive device-centric HEM remains
unfavorable, and vendors attempting to win utility subsidies to improve their value propositions
have primarily landed in long-term, low-unit-volume trials funded by government grants to test the
efficacy of HEM devices in conjunction with economic demand-response programs. Those limited
use cases still do not fully leverage price-responsive automation capabilities, which require real-time
pricing to deliver maximum benefits. The high deployment cost, relatively long break-even time on
the consumer side, and conflicting impact on the main revenue stream for utilities are the main
detriments to wider utility adoption of HEM systems. In competitive retail markets, retailers are
considering the use of limited configurations, such as in-home displays that provide feedback on
power consumption, to offer differentiating services. Regulated energy companies, in some cases,
can justify investment in HEM solutions as a component of the overall resource adequacy program
in which HEM is a component of a demand-response solution technology stack.
In some markets (such as Germany) in order to stimulate activities in the residential energy
efficiency sector, regulators have encouraged market entry by new players in HEM. Consequently,
communications service providers (CSPs) of residential services such as home broadband Internet
connectivity and security services are attempting to incorporate HEM into high-end offerings. Many
are working with local utilities to distribute the technology. However, uptake continues to be
gradual, with very low penetration. For the utility industry, HEM is nearing the Peak of Inflated
Expectations as mass consumer marketing through a variety of channels, including competitive
energy retailers, communication service providers and home improvement retailers increases.
User Advice: Rather than investing broadly in consumer technology beyond the meter, utilities
should focus on investments in energy-efficiency-enabling technologies, such as AMI and demand
response, and on providing multichannel presentment of energy consumption data, including to
Web portals and popular consumer devices such as smartphones and tablets.
In addition to being driven to HEM by regulatory mandates in markets such as California and the
U.K., utilities should consider promoting and even subsidizing enabling technology for residential
demand response. Energy retailers in contestable energy markets, such as EMEA or Australia/New

Zealand, should consider HEM as a means to differentiate their offerings in a competitive energy
market.
Business Impact: HEM solutions impact the utility retail domain, in particular AMI, demand-
response and energy efficiency solutions. Various demand-response pilot projects have identified
favorable incremental peak reduction contributions from programmable communicating thermostats
connected to utility systems. Results from in-home display trials for demand response and energy
efficiency are mixed. Utility business benefits from comprehensive device-centric HEM connected
by HANs are largely unproven. Industry adoption is concentrated in territories with energy efficiency
mandates, aggressive residential demand-response programs, AMI rollouts and contestable retail
markets.
Maturity: Emerging
Sample Vendors: AlertMe; Comverge; General Electric; Honeywell; Nest Labs; Tendril
Recommended Reading: "The Utility of the Future: The Information Utility"
"Market Trends: Energy Management in the Smart Home"
"Technology Overview for Home Energy Management"
"Energy Technology Consumerization: The Quest for Lean and Green"
"Utility Retail Domain Strategic Technology Map, An Overview"
"Market Trends: Consumer Services in a Smart Home"
Low-Cost Development Boards

Analysis By: Ganesh Ramamoorthy; Jim Tully
Definition: Low-cost development boards are typically open-source electronics prototyping

platforms, based on flexible, easy-to-use hardware and software, that are priced low enough to be
affordable by an electronics enthusiast, hobbyist, an amateur designer or anyone interested in
creating new electronics systems.
Position and Adoption Speed Justification: Development boards have been available for many
years. A key change is the availability and use of low-cost development boards, primarily driven by
the Internet of Things (IoT). These boards are typically low-power, single-computer development
boards and cost anything between $15 to $200 — depending on the functionality and features
required. However, they are targeted at different use cases and cannot be compared side-by-side
as there are large differences in energy requirements, operating systems and features/functionalities
support.

Prominent examples of low-cost development boards include: Raspberry Pi, Arduino, Gizmo Board,
BeagleBoard, PandaBoard, XinoRF, Ciesco, Pinoccio, Cubieboard, mbed, openPicus, Hackberry,
Udoo, Blueboard, Origen — to name a few. The majority of these are based on ARM processor
cores, although several other processors are also supported. Additionally, a few of them aim to
become fully-fledged, production-ready boards for the future.
The trend toward low-cost development boards is clearly being driven by the growing proliferation
of open-source software such as operating systems and design tools in combination with low-cost
hardware platforms. These environments encourage users to share their work and support each
other through a range of Web-based tools. As a result, a new class of electronics enthusiasts and
hobbyists, self-employed amateur designers, students, electronic design companies and others
interested in creating new electronic systems, are using these development boards for piloting/
experimenting and learning purposes.
Moreover, as there are strong links between the hardware development and the application
development for smartphones and tablets, many of the solutions developed using these boards are
controlled by smartphone apps. We believe the next "killer app" will likely emerge from these users
that are currently utilizing low-cost development boards to create innovative solutions.
User Advice: Investors should carefully observe the use of these platforms in order to anticipate
emerging market opportunities. Low-cost development boards are the most economical way for
beginners, amateurs and students to experiment, learning Linux and other embedded operating
systems quickly while building something that is commercially viable. These development boards
are a good way for design companies to pilot or build simple proofs-of-concept, and innovation
teams and labs should have them available in order to test IoT ideas.
Business Impact: For chip vendors, low-cost development boards and the associated developer
communities and software offerings are very important in the success of particular chips. Chip
vendors must encourage the use of these boards and the users'/developers' community through
promotional offers and development support. They should observe the developer community's
activities closely for the emergence of innovative new products and applications.
Maturity: Emerging
Sample Vendors: ARM; Broadcom; Freescale; Google; Marvell Semiconductor; Qualcomm;

Samsung; Texas Instruments
Smart Fabrics
Analysis By: Anshul Gupta
Definition: Smart fabrics transform material used in clothing, upholstery and other textile goods into
devices that can be deployed as electronic sensors, switches, connectors, batteries or displays.

The components and electronics may be embedded in, or on the fabric, or, in some cases, on the
fibers themselves. Smart fabrics are used in applications, such as controllers for electronics, human
physical data monitoring, alarm systems, heating wraps, energy harvesting, electromagnetic
shielding and illumination.
Position and Adoption Speed Justification: Smart fabric, embedded with electronics, are being
used for a wide range of applications, such as human health and physical data monitoring,
controllers for electronics, heating wraps, alarm systems, energy harvesting, electromagnetic
shielding and illumination. However, adoption of smart fabric will be slow until 2017 due to
technology immaturity and initial adoption in niche areas as fitness wear, art lobbyists, heated
winter wear, garments for charging and controlling MP3 players, solar tents and medical wraps.
Cloth with embedded sensors can measure and store data on temperature, heart rate, blood
oxygenation, blood glucose, position, motion, moisture, chemicals, respiration, light, pressure and
more. Data can be transmitted wirelessly by powering antennas and sensors through a thin-film
battery.
Smart fabrics with embedded solar cells or piezoelectric panels are being used to collect, conduct
and store energy that can be used to power electronic devices, such as mobile phones, and provide
off-grid power solutions.
Smart cloths can be made to emit light. For example, luminescent fibers can be woven into cloth
used for curtains, clothing and wallpaper, giving a glow in a range of colors that can be seen in a
darkened room.
In the automotive industry, smart fabrics can transform the material used in car seat covers, car
body linings, panel coverings and other fabric goods into devices that can be deployed as
electronic sensors or switches.
The conductive properties of some materials sewn into fabrics can be tailored to become useful
applications. Smart fabrics with resistive properties can be used as heating wraps. Boots sewn with
piezoelectric material can generate electricity that can be used to power heating elements to keep
feet warm in the cold.
In architecture, smart fabrics enable buildings to generate their own electricity. Smart fabrics can be
used in awnings to cover patios and parking lots. The exterior of the building itself can be covered
in fabric or membranes that incorporate solar cells. Inside, furniture may be covered in smart fabric
to generate electricity from the sun shining in through windows. For example, users may be able to
recharge a mobile device by plugging it into the chair they are sitting in.
Use of sensors that are fully integrated into the fabric, such as materials that measure stress and
pressure, are still evolving.
In the longer term, smart fabrics will be used routinely for health monitoring (such as measuring
body temperature or respiration rate), and to react to the environment (for example, color or heat
adjustment in clothing and automatic pressure adjustment in seats).

Some of the factors limiting adoption of technology are technology's immaturity as still a decade of
development is needed before these products become robust. Applications of smart fabric in the
many areas discussed above are in early stages of development, and significant improvement is
needed before mass commercial adoption. Some of the key areas of improvement are
manufacturing economically, delivering high-quality, cleaning fabric without affecting their electronic
components, efficiency, privacy concerns and user awareness.
Smart fabric will provide immense opportunities to enterprises by innovations in the technology.
Service providers in the automotive, healthcare, military, emergency services, fitness garments,
mining, engineering and manufacturing will be most impacted by innovation in smart fabric
technology.
User Advice:
■ The focus should be on designing easy-to-use, simple products with concentration on

maximizing benefits over costs.
■ Providers of smart fabric products should bear in mind issues of end-of-life disposal,
contributing to the larger issue of e-waste as smart fabrics become mass marketed in the
future. Consider building waste-preventive measures at an early phase of the smart-fabric
development process to minimize cost and reduce the risk of slow adoption.
Business Impact: Fabric interfaces and displays are driven by sporting, fashion, aesthetic, power
or mobility needs. They will also play a key role in the development of smart cities, most likely
emerging first in the areas of emergency services and healthcare due to the increased value of
highly mobile, responsive technology. Solar panels woven into draperies, patio awnings and
upholstery will generate enough electricity to power automatic blinds and handheld consumer
electronics.
Benefit Rating: Moderate
Maturity: Emerging
Sample Vendors: Eeonyx; Fibretronic; FTL Solar; Gorix; Peratech; Peratech (Eleksen); Philips
Research; Textronics
Recommended Reading: "Innovation Insight: Smart Fabric Innovations Weave Efficiency Into the
Workforce"
Wireless Power
Analysis By: Jim Tully; Steve Ohr
Definition: A wireless power supply facilitates the charging or direct powering of electrical and
electronic equipment using inductive or radio frequency (RF) energy transfer. Inductive systems are
preferred for short ranges (a few centimeters) and can provide very high levels of power, equaling

several thousand watts or more. RF power transfer operates over longer distances (tens or
hundreds of meters or more) and provides more modest levels of power (a few milliwatts or less).
Position and Adoption Speed Justification: Inductive systems are suited for PCs and the fast-
charging of mobile devices, while RF power is more applicable to remote sensor networks and
trickle-charging of mobile phones. Combinations of both induction and RF are also used — for
example, in Near Field Communication (NFC). This operates over short-to-medium range of up to
20 cm, depending on the frequency used. The NFC Forum has specified a version of the technology
that operates at 13.56MHz with an operating distance of probably up to 4 cm.
In its most basic form, inductive power has been in use for many years — for example, in electric
toothbrushes. The focus now is on more flexible, efficient and addressable forms of the technology
using resonance. Most users of mobile electronic devices find battery charging to be a persistent
irritation. It is inconvenient, and different chargers are required for different types of equipment.
The idea of wireless charging is clearly attractive and several solutions have been demonstrated.
The most common types involve a charging mat, on which a mobile device is placed. The
technology is also being designed for use in tabletop and desktop surfaces to charge a mobile
device when it is placed on the surface.
Several competing (and incompatible) standards currently exist for wireless charging:
■ Wireless Power Consortium (Qi standard)

■ Power Matters Alliance
■ Wireless Charging Technology
■ Alliance for Wireless Power
This highlights the need for greater levels of standardization before there is any chance of
widespread adoption of the technology for mobile devices or PCs. A bigger obstacle is the question
of why mobile equipment makers (such as handset vendors) should be interested in this technology.
The endorsement of these vendors will be critical to market acceptance. User demand is very
limited in view of the very workable alternative — plugging in the device using a cable. USB cables
in particular have become a universal charging standard for mobile devices over the past few years.
Over the past year we have observed the availability of chipsets, induction coils and other
components available to OEMs for wireless charging. This suggests that the supply chain is
preparing itself for the emergence of a market. We have therefore advanced the technology a little
further along the Hype Cycle.
User Advice: Technology planners in organizations with many users of mobile devices should
evaluate the benefits of this technology as it becomes available. Vendors of mobile devices,
batteries and power infrastructure (such as chargers) should evaluate the alternatives and decide on
their position in relation to this technology. Users should investigate this if they need small levels of
"trickle" charging for equipment where it is difficult or impossible to connect to a physical supply —
for example, sensor networks and Bluetooth low-energy devices.

Users in certain vertical organizations should also examine this technology. There may be benefits,
for example, in introducing wireless-charging facilities in environments where customers spend time
— such as in restaurants. This may attract customers if and when the technology starts to become
popular.
Business Impact: The technology is applicable to a wide range of business and consumer
situations. Some environments require mobile devices to be charged at all times, and wireless
charging is particularly suited to those situations. It also offers advantages of less clutter and
reduced e-waste of old chargers. Efficiency is somewhat lower than wired power, which will need to
be factored into any decision.
Sample Vendors: Duracell; Fulton Innovation; Intel; MIT; Nokia; Powercast; Powermat; Qualcomm
Recommended Reading: "Market Trends: Wireless Charging of Mobile Devices Needs

Smartphone Makers' Endorsement for Success"
"Emerging Technology Analysis: Wireless Power Charge"
Bluetooth 4.0
Definition: Over the past few years, Bluetooth has become the de facto technology for wireless
point-to-point connectivity. Bluetooth 4.0 (BT4.0) is the latest revision that was introduced by the
Bluetooth Special Interest Group (BT-SIG) in June 2010. It includes three specifications in one
single standard:
■ Classic Bluetooth: Bluetooth 2.1 + EDR (enhanced data rate).

■ Bluetooth High Speed (HS): Bluetooth 3.0 + HS.
■ Bluetooth Low Energy (LE): This is the new technology that is introduced in BT4.0.
Position and Adoption Speed Justification: With BT4.0, a certified device has the flexibility to pick
one or more of the technologies to be considered BT4.0-compliant. For example, a sensor can
adopt only the LE technology to conserve power (aka single-mode BT4.0 or Bluetooth Smart), while
a portable device can choose to implement both LE and Classic (aka dual-mode BT4.0 or Bluetooth
Smart Ready). Expect support for devices in the areas of wearable computing, sports and wellness,
healthcare, human interface devices (for example, computer mice), and entertainment devices. This
technology can be integrated into watches, wireless keyboards, and gaming and sports sensors.

The BT4.0 specification was adopted in June 2010. More and more peripheral devices are emerging
that need low-bandwidth, long-lasting connectivity to other host devices. Wibree was initially
designed to accomplish this purpose; however, it conflicted with the long-term goals of Bluetooth,
so it smartly merged its standardization efforts with the BT-SIG. With this standard, we expect
enabled devices to last as long as a couple of months to a couple of years without recharging. We
also expect this standard to be widely popular and to quickly increase its penetration into a wide
array of devices during the next five years. BT4.0 is being incorporated into Bluetooth chips today,
including CSR's BlueCore7000 and Broadcom's latest combo chip.
User Advice: Bluetooth LE wireless will likely be a low-cost, mature and secure technology that can
be used to eliminate cabling for peripherals. Vendors of many more products can now make the
Internet part of their bill of materials.
Business Impact: More and more devices will move from stand-alone to Internet-connected,
enabling many more products to move from static states to dynamic states. Problem corrections
and functionality updates will be made available more quickly.
Maturity: Emerging
Sample Vendors: Broadcom; CSR; Marvell Technology Group; Qualcomm Atheros; Texas
Instruments
Enterprise Information Architecture

Analysis By: Julie Short
Definition: Gartner defines "enterprise information architecture" (EIA) as the EA activities of creating
and determining information that needs to be shared consistently across the enterprise, and
designing outcomes that strengthen the impact of sharing such information.
Position and Adoption Speed Justification: A key factor increasing the adoption of EIA is the
rising popularity of the trend known as big data. Gartner defines "big data" as high-volume, high-
velocity and high-variety information assets that demand cost-effective, innovative forms of
information processing for enhanced insight and decision making. This definition includes other
disruptive EIA trends, such as open data, linked data and social data. Innovation using information
is also on the upswing and recognized by many leading organizations as a way of differentiating.
EIA provides the focus to determine which information is important to enable the organization to
realize its future business direction and strategy. Both EIA and enterprise information management
(EIM) are required disciplines to enable organizations to meet the Information Age and the data-
driven economy.
Gartner sees an increase in client inquiries (over 700 inquiries this year alone) and increasing
discussions with attendees at Gartner conferences who are working to take on the challenge of EIA.
Disruptions such as the rapidly changing regulatory environment are forcing many industries —

healthcare, financial services and others — to attack this difficult challenge. Information is now
more prominent on the radar screen of business leadership. Business increasingly requires new
views and new types of information from new sources (both internal and external sources) to
achieve insight and competitive advantage and to meet regulatory compliance. As a result, the hype
is now at its peak and is expected to increase adoption speed significantly.
User Advice: Enterprise architects focusing on EIA:
■ Use the Gartner Information Capabilities Framework as a conceptual model to identify

information that is important to driving business outcomes and to pinpoint weaknesses in your
information infrastructure.
■ Lead the efforts to drive the information-sharing strategy across the organization, and ensure
the development of an enterprise information taxonomy to provide scope and focus.
■ Integrate the processes for designing EIA with the disciplines for EIM.
■ Unify the design and delivery of business-focused outcomes in master data management,
business intelligence, content management, data governance and context-aware applications
by using the EA information viewpoint.
■ Apply the EA approach known as "middle-out" to guide the design and development of shared
information architectures.
Business Impact: When EIA is used to create an effective information-sharing strategy,

organizations can achieve significant business results and position the organization for competitive
advantage:
■ Healthcare organizations gain advantages over peers by rapidly sharing internal and external
data across health information exchanges to diagnose problems faster and earlier to improve
the quality of care.
■ Telecom firms differentiate by combining mobile phone subscribers' GPS coordinates with
customer data and demographics to develop customized offerings and location-based services
for nearby stores and businesses, provided that customers opt in for such features.
■ Banks compete by cross-referencing data from credit card accounts with loan and mortgage
accounts to identify patterns and mitigate risks.
■ Standout retailers use best practices, such as Wal-Mart Stores' analytical prowess, to link real-
time data and point-of-sale data with supplier and manufacturing data to improve their value
chains.
Recommended Reading: "Beyond the Tipping Point: EA Is Strategic"

"Big Data Disruptions Tamed With Enterprise Architecture"
"Gain Competitive Advantage Through Gartner's Information-Sharing Model"
"How to Use (and Not Use) Gartner's Information Capabilities Framework"

Analysis By: Stephen Stokes; Simon Mingay
Definition: Facilities energy management involves the use of a combination of advanced metering
and IT and other operational technology (OT) that tracks, reports, analyzes energy consumption and
alerts operational staff in real time or near real time. Systems are capable of allowing highly dynamic
visibility and operator influence over building and facility energy performance. They also provide
dashboard views of energy consumption levels, with varying degrees of granularity, and allow data
feeds from a wide range of building equipment and subsystems.
Position and Adoption Speed Justification: Real-time energy management within buildings is a
central element of the emergent megatrend of "smart systems." Frequently called building
information management systems or integrated workplace management systems, they are at the
heart of the disruptive convergence of the traditional hard-wired, proprietary-protocol, facilities
management world, with the software-driven, open-network-enabled world of information and
communication technology (ICT), and with additional contributions from a spectrum of established
automation and advanced metering infrastructure (AMI) vendors. This convergence is bringing the
traditional building controls vendors, such as Johnson Controls, Schneider Electric and Honeywell,
into "co-opetition" with ICT vendors large and small, such as IBM, Cisco, SCIenergy and BuildingIQ.
The integration of AMI data with ICT technologies is rapidly establishing a new level of facility
operational performance expectations. Such systems allow for diagnosing high- and low-energy
consumption areas, regions or geographies. Facilities energy management is an area of sustainable
business that allows immediate and quantifiable costs and benefits over all time scales and across
real estate portfolios — literally from warehouses and distribution centers to the Empire State
Building.
User Advice: Cost cutting, concerns over emission reduction requirements, and future energy price
levels and volatility have converged to make energy management a key element of sustainability
and business strategies in the emerging low-carbon economy. Some of the lowest of the low-
hanging, energy-efficiency fruit can be found in the energy footprint of buildings. It has been
estimated that they are the single-largest consumer of electricity globally, and about 40% of this
energy consumption can be removed by implementing existing and mature efficient technologies,
as well as operating and information technologies.
Although most solutions focus on energy management, others incorporate a wider portfolio of
building-related data, including occupancy levels, water usage and other factors. Current
generations of applications can provide granular and real-time insights into performance. A small
number of vendors are now touting "dynamic intervention" to allow automated optimization without
user input.

Enterprises with large buildings or a large real estate portfolio for which they are responsible for the
energy bill should be actively looking at this technology. Delivering visibility into a facility's energy
usage allows ongoing investment and innovation for performance improvement, and provides a
basis for systematic facilities portfolio management for the perspective of energy consumption.
Many jurisdictions are planning legislation to force reporting and minimum energy-efficiency
performance. As such, the thresholds for which this technology becomes worthwhile are dropping,
particularly as SaaS offerings become available, so it makes sense for even midsize organizations to
be actively testing or making use of these products. The IT team should work with the facilities
management team to exploit the convergence of building systems and IT, and leverage the data as
part of a sustainable business system architecture.
Business Impact: There is a significant potential business impact relating to energy usage visibility
and cost savings. Integration of on-site renewable energy sources and their management within
overall workplace energy consumption are additional, increasing factors.
Sample Vendors: BuildingIQ; Honeywell; IBM; Johnson Controls; OSIsoft; Schneider Electric;
SCIenergy; Siemens IT Solutions and Services; Verisae
Recommended Reading: "An Integrated Building Management System Puts the 'Smart' in Smart
Building"
"Vendor Guide for Industrial Energy Management, 2013"
"An Energy-Efficiency and Sustainable Buildings Case Study: Johnson Controls Demonstrates
Leadership in Design and Execution"
"Sustainable Buildings: Dynamic, High-Performance Corporate Assets"
Raspberry Pi
Analysis By: Alfonso Velosa
Definition: The Raspberry Pi is a flexible, low-cost computer built onto a credit card-sized printed
circuit board assembly. It was primarily created to be used in the teaching of computer science and
to encourage students of all ages to build key computing skills.
Position and Adoption Speed Justification: The British Raspberry Pi Foundation was established
In 2006 to promote computer education when a group of colleagues at the University of Cambridge
Computer Laboratory became concerned about the lack of basic computing skills demonstrated by
students. The group used its core expertise in processors and operating systems to design a

simplified, low-cost system. Priced at $35 as of May 2013, the Model B Raspberry Pi's specification
includes:
■ Application processor: A Broadcom BCM2835 with a 700 MHz ARMv6 processor core and a
VideoCore 4 graphics processor.
■ Memory: 512 MB of SDRAM and a Secure Digital memory card slot for additional memory.
■ Connectivity: Two USB 2.0 ports, a 10/100 mbps Ethernet network connection.
■ Video: The graphics processor is capable of resolutions between 640 x 350 and 1920 x 1200
and outputs video to composite video (RCA), HDMI and DSI connectors.
■ Power rating: 700 mA (3.5 W)
■ Operating systems: Capable of running any OS based on a Linux kernel (such as Arch,
Raspbian and Slackware ARM), RISC OS or Unix.
Despite being sold without a keyboard, a display, a real-time clock or a power supply, the
Raspberry Pi has already shown real potential. Since its release in February 2012, the foundation
has reported that over one million customers have purchased the board.
The popularity of this device and the proliferation of its use cases indicate that the Raspberry Pi is
well on its way to fulfilling its objective of influencing computer science education. It is also
demonstrating the capabilities that low-cost computing can bring to students. A large number of
independent online communities have also started to develop projects and build standards around
media streaming, gaming, photography and navigation. Key candidates for future use of Raspberry
Pi-based systems include the Internet of Things and smart city projects that leverage the device's
flexibility and low cost.
User Advice: Application developers and programmers can leverage use cases built upon familiar
operating systems such as Unix and Linux. However, since most use is currently driven by the
hobbyist communities, there is minimal official support, documentation or upgrades. You should
also consider other boards such as Arduino, Netduino or BeagleBoard for development and niche
projects.
Business Impact: Raspberry Pi allows for low-cost development of hardware applications and
systems built upon standard open source operating systems. With its proliferation and the growth of
a large pool of developers, it has the potential to become one of the main computing platforms for
general development for the Internet of Things or for niche, low-volume applications.
Maturity: Emerging
Sample Vendors: ARM; Broadcom; University of Cambridge — Computer Laboratory

Smart Appliances
Definition: Smart appliances are consumer "white" goods such as refrigerators, washers and
dryers that have enhanced programmability and communications features that enable them to be
remotely accessed and controlled by consumers, utilities and service providers (such as for repairs,
warranties and so on). They can respond to variable rate electricity pricing signals, detect grid
disturbances and modify operations to satisfy owner preferences or reduce network stress. Smart
appliances that respond to grid disturbances are grid-friendly appliances (GFAs).
Position and Adoption Speed Justification: Smart appliances are capable of adjusting operations
to take advantage of changes in power prices or disturbance in supply and, in some cases, are able
to do so without any discernible impact to consumers. Smart appliances are gradually moving from
concept development into small-scale pilot tests by utilities, as well as commercial production, as
manufacturers continue to refine value propositions for different categories, such as washers, dryers
and refrigerators. Appliance manufacturers are increasingly focused on lifestyle convenience
features in addition to energy management. They are also adding smartphone and tablet apps for
smart appliance control. LG is marketing appliances that respond to utility pricing signals, using
Near Field Communications for easy connectivity between appliances and devices such as
smartphones. Samsung is marketing ovens and refrigerators that can be set to different
temperature zones, and including touchscreens with multiple features. Whirlpool has added support
for Wi-Fi connectivity to link its smart appliances to each other and with apps running on PCs,
smartphones or tablets that include the ability to monitor appliance power consumption and costs,
with U.S. utility rates coming from a rate tracking cloud service provided by Genability. Whirlpool is
also working with Commonwealth Edison to pilot utility features such as the ability to sign up for
utility programs and manage participation in programs via smart appliance apps.
Smart appliances are now at the Peak of Inflated Expectations as major appliance manufacturers
launch smart appliance product lines into market. The commercial release of smart appliances,
coupled with ongoing pilot activity, moves this technology from embryonic to emerging. However,
the pace of consumer adoption is very slow, as the cost-to-benefit ratio for smart appliance
features is low for a number of reasons:
■ Most consumers do not have access to variable power pricing programs that would enable
them to save money with smart appliances.
■ Appliance manufacturers are still testing features, in search of a compelling value proposition.
■ Unit volumes are not sufficient to drive down manufacturing costs.
Utility companies have not come up with meaningful incentive programs (subsidies or rebates) to
compensate consumers for the increased cost of smart appliances. The benefit rating of "high"
applies to the value utilities can realize from smart appliance adoption.
User Advice: Much of the hype for smart appliances continues to be from appliance manufacturers
pursuing product differentiation and attempting to expand their brand footprints. However,
consumer demand and interest in smart appliances remain low despite years of appliance

manufacturer marketing. Each manufacturer interpretation of what constitutes a "smart" appliance

varies, making it difficult to abstract universal requirements for utility connectivity; and no
manufacturer is poised to take dominant market share. Keep in mind that appliances have long life
cycles, which translates to low turnover of the installed base.
Utility CIOs should not expend significant funds or staffing on direct integration with smart
appliances, unless required to meet smart grid project commitments. CIOs should view smart
appliances as a component within broader energy technology consumerization and a potential
element to support in their strategic road maps for utility demand response.
Utility IT leaders should focus on building a robust consumer gateway that can integrate and
coordinate with current and future curtailable loads, including the possibility of smart appliances in
the future.
Business Impact: The utility industry is focused on the energy management characteristics of
smart appliances, and the primary impacts they can have on the commodity life cycle process, and
the customer life cycle. However, the value proposition needs to be broader than energy
management. Major appliance manufacturers are extending the value proposition into convenience
and lifestyle features as a way to increase pricing and differentiate from competitors.
Maturity: Emerging
Sample Vendors: GE; LG Electronics; Samsung; Whirlpool
Recommended Reading: "Competitive Landscape: Smart Appliances, Worldwide"
"Demand Response Primer"
"2012 Strategic Road Map for Utility Demand Response"
"Market Trends: Energy Management in the Smart Home"
Complex-Event Processing
Analysis By: W. Roy Schulte; Zarko Sumic; Nick Heudecker
Definition: Complex-event processing (CEP), sometimes called event stream processing, is a kind
of computing in which incoming data about events is distilled into more useful, higher-level and
more complex event data that provides insights into what is happening. Multiple events from one or
more event streams are correlated on the basis of having a common value in a key field, and
patterns and trends are detected. One complex event may be the result of calculations performed
on dozens, hundreds or even thousands of input (base) events.

Position and Adoption Speed Justification: CEP has progressed slightly on the Hype Cycle,
putting it just past the Peak of Inflated Expectations. It attracts considerable attention because it is
the technology used for many kinds of real-time analytics on big data. However, companies are
adopting CEP at a relatively slow rate because its architecture is so different from conventional
system designs. Although most developers are unfamiliar with this technology, it is the only way to
get many kinds of insights from event streams in real time or near real time, so it will inevitably be
adopted in multiple places within virtually every company. It may take up to 10 years for CEP to
reach the Plateau of Productivity and be in use in the majority of applications for which it is
appropriate.
The amount of real-time event data is growing rapidly. It comes from transactional application
systems, sensors, market data providers, social computing (activity streams), tweets, Web-based
news feeds, email systems and other sources. Companies need to tap the information in these
event streams to be able to respond faster and smarter to changing conditions but conventional
software architectures can't address these business requirements. Conventional applications use a
save-and-process paradigm in which incoming data is stored in databases (in memory or on disk),
and then queries are applied to extract the relevant subset of data needed for a particular
application function (in other words, the query comes to the data). This paradigm is too slow when
the volume of incoming data is high and the results of computation must be made available
immediately. Architects are therefore driven to use an alternative, event-driven design in which the
computation is triggered immediately as input data is received into memory. In this "process first"
CEP paradigm, the application runs continuously and the data comes to the query because the
query is in place before the data arrives. This is known as "data in motion."
User Advice: Companies should use CEP to enhance their situation awareness and to automate
certain kinds of decisions, particularly those that must be made in real time or near real time.
Situation awareness means understanding what is going on so that you can decide what to do. CEP
should be used in operational activities that run continuously and need ongoing monitoring, using a
sense-and-respond approach. For example, it can apply to near-real-time precision marketing
(cross-sell and upsell), fraud detection, factory floor and website monitoring, customer contact
center management, trading systems for capital markets and transportation operation management
(for airlines, trains, shipping and trucking). In a utility context, CEP can be used to process a
combination of supervisory control and data acquisition (SCADA) events and "last gasp"
notifications from smart meters to determine the location and severity of a network fault, and then
to trigger appropriate remedial actions.
Developers can obtain CEP functionality by custom coding it into their application or tool, or by
acquiring an event-processing platform and tailoring it to their specific requirements. Prior to 2004,
developers wrote custom code for CEP logic as part of their application or tool, because off-the-
shelf event-processing platforms were not available. Developers still write custom CEP logic for
many purposes, but a growing number of developers leverage commercial and open-source event-
processing platforms to reduce the time and cost required to implement CEP-based applications
(see examples of vendors listed below). Some commercial event-processing platform products have
extensive analytic capabilities, such as built-in statistical functions, tools for building business
dashboards, off-the-shelf adapters for packaged applications or industry message-format
standards, alerting mechanisms and graphical development tools.

In many cases, CEP will be acquired in a packaged application or tool, or obtained as part of a
SaaS offering. Leading-edge architects and developers have become aware of event processing,
event-driven architecture and CEP, and are making build-versus-buy decisions in an increasing
number of projects. Event-processing platforms are sometimes used in conjunction with intelligent
business process management suites or operational intelligence platform products to provide more
intelligent process monitoring, or to help make business decisions on a dynamic, context-aware
basis. CEP plays a key role in event-driven business process management, alongside rule engines
and structured process-orchestration capabilities.
Business Impact: CEP:
■ Improves the quality of decision making by presenting information that would otherwise be
overlooked.
■ Enables faster response to threats and opportunities.
■ Helps shield business people from data overload by eliminating irrelevant information and
presenting only alerts and distilled versions of the most important information.
■ Reduces the cost of manually processing the growing volume of event data.
CEP adds real-time intelligence to operational technology (OT) and business IT applications. OT is
hardware and software that detects or causes a change through the direct monitoring and/or
control of physical devices, processes and events in the enterprise. OT goes by various names in
different industries, and is often owned and operated independently of IT systems. For example,
utility companies use CEP as a part of their smart grid initiatives, to analyze electricity consumption
and to monitor the health of equipment and networks. Elsewhere, CEP helps to process feeds of
event data such as temperature, vibration and revolutions-per-second that, when analyzed
together, may predict impending equipment failure. CEP is also used in business-activity monitoring
applications that have a high rate of input data (high throughput), require fast (low latency)
responses or require the detection of complex patterns (especially those that are temporal or
location-based).
CEP is one of the key enablers of context-aware computing and intelligent business operations
strategies. Some of the more sophisticated operational intelligence platform products use CEP to
provide pattern matching and situation detection capabilities. The biggest single source of future
demand for CEP may be the emerging Internet of Things. Social computing may be the second
largest source of new data and demand for CEP.
Sample Vendors: Apache; EsperTech; FeedZai; Grok; HStreaming; IBM; Informatica; LG CNS;
Microsoft; Oracle; Red Hat; SAP (Sybase); SAS (DataFlux); ScaleOut Software; Software AG;
Splunk; SQLstream; Tibco Software; Vitria; WestGlobal; WS02

Recommended Reading: "Use Complex-Event Processing to Keep Up With Real-time Big Data"
"Best Practices for Designing Event Models for Operational Intelligence"
"Cool Vendors in Analytics"
"Apply Three Disciplines to Make Business Operations More Intelligent"
Sliding Into the Trough
Home-Area Network
Definition: A home-area network (HAN) connects in-home digital devices, such as PCs, mobile
phones, entertainment technology, thermostats, home security systems and smart appliances, into
a common network. In the context of energy utilities, HAN is a means for utility companies to extend
their reach beyond the meter, and to incorporate home energy management devices into utility
systems, as well as enable demand response (DR) and energy efficiency programs.
Position and Adoption Speed Justification: HAN is enabling communication technology for utility
demand response and energy efficiency programs, and other home services such as security and
health monitoring. In the North American market, many advanced metering infrastructure (AMI)
implementations have requirements to inform consumers regarding energy pricing and, in some
cases, regarding their environmental impacts. This information can be provided through the HAN to
in-home displays. AMI integration with HANs is a requirement in some jurisdictions as a means to
remotely control smart thermostats or home energy management devices in a demand-dispatch
function.
Home-area networks are an extension of the smart grid through AMI or a customer gateway (both
addressed as separate technologies) into the home, providing utility customers with the information
they need to make intelligent energy and water consumption decisions. A HAN is a key consumer-
enabling technology that allows consumers to specify how they will use energy by managing
devices and appliances like smart thermostats, air conditioners, pool pumps, washers and dryers.
AMI makes it possible to use a smart electric meter or other consumer gateways to enable
continuous (preferably two-way) communication between utilities and HAN-based devices.
Although standards for HAN have been identified, they are not mature enough to ensure that
devices from various manufacturers interoperate in a consistent fashion with utility systems. Data
traffic across AMI networks is a concern (for instance, some devices periodically poll utility networks
for data and instructions while others wait for instructions to be pushed to them). The recent release
of ZigBee Smart Energy Profile 2 makes the standard available over IP networks, which should help
adoption. However, utility concern with technical issues and regulatory conditions for investment
recovery are inhibiting large-scale utility-backed HAN deployment.

Recently, several home communication service providers (CSPs) in some energy markets (such as
Germany) have begun extending beyond core home broadband, cable TV and telephone services to
offer smart home services that include smart metering energy management, home automation, and
other services such as home security, fire safety and water damage monitoring. This may accelerate
HAN adoption and provide utilities with opportunities to leverage third-party services for demand
response and energy efficiency services.
Several utilities are currently piloting HAN. However, additional lab testing is needed, and standards
need to be enhanced before an open, interoperable market emerges.
User Advice: HAN is consumer technology. Rather than selecting a particular technology and
forcing it on consumers, utilities must ensure that devices in their domain, such as meters and
gateways, can support consumer-preferred HAN choices. During the AMI planning phase, ensure
that you include support for communications technology, such as ZigBee, HomePlug and Wi-Fi,
which will enable the extension of the utility network perimeter beyond meters into HAN-based
home energy management devices and smart appliances via consumer gateways. Work with your
AMI technology suppliers to ensure interoperability and satisfactory operation between AMI and
HAN, and carefully test home energy management devices to ensure they behave as expected and
required before certifying them for use. Utilities not implementing AMI, but facing other drivers for
HAN (such as competitive energy retailers seeking differentiation), should investigate home
broadband or power line communications as alternative communication pathways for connecting to
HAN.
Also, consider alternatives, such as partnerships with CSPs extending broadband offerings into
smart home services that include energy management.
Business Impact: HAN affects the energy retail area and indirectly acts as an energy efficiency and
demand response enabler in the energy commodity management area.
Maturity: Emerging
Sample Vendors: AT&T; Comcast; Digi International; GE; iControl; Silver Spring Networks; Tendril
Recommended Reading: "Market Trends: Energy Management in the Smart Home"
"Market Trends: Consumer Services in a Smart Home"
"Technology Overview for Home Energy Management"
Broadband-Connected Televisions
Analysis By: Mike McGuire

Definition: Broadband-connected televisions (sometimes referred to as smart TVs) use broadband

network connectivity to deliver streaming video and other Web services directly to the television via
an Ethernet or Wi-Fi connection in a broadband home network. Services are delivered via
applications or virtual channels. Apps can be invoked via a TV remote control or a smartphone- or
tablet-based application. TV manufacturers are deploying proprietary and standards-based
software on the device.
Position and Adoption Speed Justification: With 3D TVs more or less slipping into irrelevance,
and UltraHD TVs (aka "4K TVs") some years off in terms of being a serious alternative for
consumers, connected TVs will continue to be a key differentiator for the TV market. The sharpening
market demand we noted in last year's Hype Cycle continued throughout 2012 and into 2013. The
NPD group estimates that there are close to 16 million connected TVs in use in the U.S., and
Gartner forecasts that by 2016, 80% of new-TV shipments will be broadband-connected TVs.
Consumer interest in online video, and the growth in online video distributors (e.g., Netflix), provides
the consumer demand, which justifies hardware manufacturers using connectivity as a
differentiator. Some factors that will impede rapid widespread adoption:
■ Diversity of vision and standards for software functionality

■ Relatively long TV replacement cycles
Yet, for semiconductor manufacturers, broadband-connected TVs offer an important new target for
the latest generation of chipset designs. For broadcasters, broadband-connected TV offers a
potential to extend consumer engagement with interactive content and offers more value to
advertisers. (On the other hand, built-in Internet connectivity can also prove to be the equivalent of
the unlocked back door for broadcast TV nemesis, Aereo.) For consumer-facing brands, such as
Google, Apple and Yahoo, and startups such as GetGlue, Miso and Boxee, broadband-connected
TVs represent some opportunities for creating unique, converged TV-Internet experiences.
Yet broadband-connected TVs continue to suffer from a fragmented set of development

environments across manufacturers (and in some cases even with the product lines of the same
manufacturer). The longer it takes for software and application standards to emerge — and 2013
saw increases in the sales of connected TVs but no major shifts in software standards — the greater
the opportunity for these alternatives such as over-the-top set-top boxes (Apple TV, Roku and
others). For that reason, we are shifting the benefit rating to moderate.
Because of the disruptive potential of this technology, Gartner expects adoption to be relatively
slow overall, with different adoption rates for different regions. It is more likely that consumers,
especially in the U.S., will adopt over-the-top set-top boxes, or second-screen apps on mobile
devices, thus insulating their TV hardware investments from the vagaries of application and
software standards.
User Advice: We reiterate our advice from last year that consumer electronics manufacturers need
to pursue common standards, especially in application development environments, to drive wider
adoption. Conversely, communications service providers should press for adoption of their
applicable standards in a uniform way by manufacturers.

Broadcasters and content companies need to take the strategic view that broadband-connected
TVs and second-screen applications (on smartphones and tablets utilizing automatic-content-
recognition technologies) are likely to be competing with over-the-top set-top boxes for consumers
looking to access online content and content from TV service providers as indicators for the need to
start or maintain investments in centralizing and automating licensing and rights management
platforms. The ability to exploit Internet-based content delivery options will continue to be a
pressing requirement and leverage point.
Broadcasters should also work with their industry associations to negotiate with manufacturer
associations to specify standards for how control might be passed directly from a video signal to
broadband user agent software, to provide a competitive alternative to communications service
provider plans to control this essential access point, which is of high value to advertisers.
Business Impact: The delivery of broadband-delivered content to the television is likely to add
value to the television at a time when the Internet, PCs and tablets are drawing attention away from
television. Technology advances in connectivity for the television should significantly accelerate the
opportunity for broadband services delivered to the television.
The disruptive potential for broadband-connected TVs to supply an alternative distribution channel
for video programming on TV will focus attention on net neutrality issues as a key factor in the future
role of TV service providers.
Sample Vendors: LG; Samsung; Sharp; Sony
Recommended Reading: "Competitive Landscape: Broadband-Connected TVs"
"Predicts 2013: Businesses Will Take Consumer Apps to the Next Level"
"Pay-TV Service Providers Must React to Changing Consumer Viewing Behaviors"
Operational Technology Security

Analysis By: Earl Perkins
Definition: Operational technology (OT) security is the practice and technology used to protect
information, processes, and assets associated with systems that monitor and/or control physical
devices, processes and events that initiate state changes in infrastructure. Industrial control
systems (ICSs) are examples of OT.
Position and Adoption Speed Justification: OT security products and services provide security
for and protection of OT, hardware and software. OT detects or causes changes through the direct
monitoring and/or control of physical devices, processes and events. OT goes by names such as

supervisory control and data acquisition (SCADA) systems, distributed control systems (DCSs),
process control systems (PCSs) and process control networks (PCNs).
OT security covers a wide spectrum of technologies at the device, system, network and application
levels. There is a worldwide network of billions of sensors and other intelligent devices in all
industries that have security considerations. OT security is required for real-time monitoring and
process control of systems in industries such as energy, manufacturing, utilities and transportation.
For example:
■ Healthcare has intelligent MRI scanners and monitoring devices in hospitals.

■ Transportation systems collect traffic flow incident information.
■ Automobiles have hundreds of sensors and embedded computers for many functions.
■ Retail includes intelligent tags for products and tracks transported goods through OT.
■ Utility line workers and soldiers may have clothing/devices that are connected to and reporting
real-time information.
■ Video, data and voice from field operations, maintenance and situational awareness. Most of
these endpoints are networked. Gartner refers to the Internet of Things or the "industrial
Internet" to describe the explosive growth of OT and the Internet of Everything to include
humans as well as devices.
OT security protects OT and operational processes, with some security technologies and processes
unique from IT security, particularly in networking and endpoint protection. OT security technologies
can be robust, mature IT security solutions employed in an OT role, or more-targeted solutions for
proprietary OT technologies. While some IT security governance and management practices are
mature, the OT security equivalent is still evolving and (in some cases) integrating with IT security.
OT security implementation faces significant obstacles due to:
■ The impact (and uncertainty) of mandated security regulations in some OT industries

■ Organizational separation of OT and IT personnel and practice in many industries
■ OT security technology maturity (and IT security product abilities to address OT security
requirements)
■ Modernization of OT systems via repurposed IT systems and the associated security impact
As a result, the market for OT security technologies and services is growing, with numerous product
and service vendors from IT as well as new OT security players. Governance and organizational
challenges related to OT security represent a significant opportunity for consulting and system
integration providers. Few industries have yet devoted a complete practice to security matters for
OT, and even fewer have established an IT/OT integration strategy from an organizational, planning
or governance perspective.

OT security has advanced in Hype Cycle maturity as more OT industries adopt better practices,
exercise IT/OT organizational integration and demand more-effective security technology for their
OT-centric systems.
User Advice:
■ Establish integrated IT/OT security governance for major decisions regarding security, allocating
specific organizational assets to support it.
■ Engage reputable consultants and system integrators when needed to assess existing OT
security and develop an effective OT security management strategy.
■ Integrate IT/OT security management to establish a program for managing regulation, rather
than the other way around. Do not allow regulatory requirements to define your security
program.
■ Prioritize IT/OT security integration — technology decisions should proceed from organization
and process change.
Business Impact: OT security implementations will be found in many areas of the enterprise — in
the network, and in systems, applications and data stores. OT security implementations can be
managed; for example, in system control centers of specific industries — centers chartered with
observing, reporting, and controlling networks of control points and data collection points.
Implementing effective OT security technology, along with the supporting processes and
organization, will mean the difference between success or failure as these networks and systems
are modernized because of regulatory or performance pressures. As networks and systems are
upgraded or replaced, their potential complexity grows exponentially (in terms of the points of
control available, the granularity of control, and the availability of much more information regarding
activities and performance).
As IT and OT networks are integrated and access to worldwide networks grows, the degree and
scale of threats increase. Most OT-centric enterprises today are unprepared for the impact that
modernization of their OT infrastructures has on their requirements for security. Advances in OT and
IT security program maturity are required urgently to address this shift in these industries.
Maturity: Emerging
Sample Vendors: AlertEnterprise; Bayshore Networks; Boeing; Byres Security; Digital Bond;
Echelon; Emerson Process Management; General Electric; Honeywell; IBM; Industrial Defender;
Invensys; IOActive; Lockheed Martin; McAfee (NitroSecurity); Microsoft; Mocana; OSIsoft; Owl
Computing Technologies; Quantum Secure; Schneider Electric; Siemens; Waterfall Security
Solutions
Recommended Reading: "The Impact of Critical Infrastructure Protection Standards on Security"

"Predicts 2013: IT and OT Alignment Has Risks and Opportunities"
"Top 10 Business Trends Impacting the Utility Industry in 2013"
Z-Wave
Analysis By: Sylvain Fabre; Jim Tully
Definition: Z-Wave wireless technology enables home automation, and is especially catered to
control applications in the home. It is implemented in short-range radio frequency modules added
to household goods such as lamps, access control systems, entertainment hubs, pool controls and
appliances. So far, almost all its success has been in home security applications like door and
window locks. Another wireless technology, ZigBee, has had far more success in appliance control
(though this market is very young) and heating control (like thermostats).
Position and Adoption Speed Justification: Over 700 products use Z-Wave and have been
certified by the Z-Wave Alliance. There are 200 members of this consortium, an industry body made
up of manufacturers of products built to the Z-Wave standard.
User Advice: Consider Z-Wave for home automation applications within a 30-meter range. Z-Wave
is designed to be easily embedded into consumer electronics products, including battery-operated
devices such as remote controls, smoke alarms and security sensors. Recognize, however, that Z-
Wave seems to be losing market share to other wireless technologies — even in its core area of
security — and Z-wave has been struggling over the last couple of years. ZigBee, Bluetooth and
even Wi-Fi appear to be encroaching upon Z-wave's traditional stronghold of security devices in the
home.
OEMs of appliances should carefully analyze the cost of Z-Wave technology, especially in light of
the cost of alternatives like silicon. Despite the cost of Wi-Fi silicon falling, it still proves more
expensive than that of Z-Wave and ZigBee.
Business Impact: Z-Wave is optimized for reliable, low-latency communication of small data
packets. This differentiates it from Wi-Fi and other Institute of Electrical and Electronics Engineers
(IEEE) 802.11-based technologies, which are geared for high-data-rate applications. Z-Wave
operates in the sub-gigahertz frequency range, around 900MHz. This band is used for cordless
handsets and other home electronics appliances, however Z-Wave's operation in this band does
not interfere with Wi-Fi and other standards that use the 2.4GHz band.
Maturity: Early mainstream
Sample Vendors: 1010data; ADT Security Services; Danfoss; Evolve Guest Controls; Sigma
Designs; Vivint

Telematics
Analysis By: Kimberly Harris-Ferrante
Definition: Telematics refers to the use of in-car installed and after-factory devices to transmit data
in real time back to an organization, including vehicle use (for example, miles driven, speed and
location using GPS), maintenance requirements, air bag deployment or automotive servicing.
Telematics serves as the platform for usage-based insurance (UBI) for both fleet and personal auto
insurance, including pay-per-use insurance, pay as you drive (PAYD) insurance and pay how you
drive (PHYD) programs.
Position and Adoption Speed Justification: Telematics is based on the idea of the "connected
vehicle," in which new technology is embedded that can send data to an insurer on the location,
miles driven, vehicle condition and driving behavior. Leveraging telematics-derived data opens up
new product opportunities for both fleet and personal auto insurers, as well as provides benefits
such as providing granular data on high-risk populations (for example, teen drivers) and helping to
reduce claims as behavioral feedback is shared with drivers, allowing them to reduce their driving
risks. It can be deployed for both personal and commercial autos — however, much of the press
attention and investments during the past 12 months have been primarily targeted at personal auto
product lines.
For these reasons, telematics has been gaining attention among insurers during the past five years,
and has skyrocketed in 2012 and 2013 as most Tier 1 insurers in mature markets, especially North
America and continental Europe, have undertaken in-depth evaluations and begun investments
(including proofs of concept, pilots and rollouts). In these regions, Gartner has seen a significant rise
in public announcements and inquiries on deploying telematics and understanding its long-term
impact on the auto insurance industry. Existing insurers offering UBI continue to innovate — for
example, Progressive's Snapshot program in which a small device is used to collect data for 30
days to show drivers what they can save by using the UBI product. In other regions, telematics
remains less mature with fewer live deployments and limited vendor offerings. As a result, we
estimate that the overall adoption rate for telematics in auto insurance to be between 5% and 20%.
During the next five years, Gartner expects interest and investments in telematics-based insurance
programs to rise globally, with adoption growing year over year in mature countries, and new
initiatives starting in emerging countries — for example, in China. This will be fueled by consumer
interest in reducing auto insurance premiums, and the dropping cost of telematics technology, as
the vendor market continues to mature and consolidate to offer more viable telematics solutions.
These programs will also be spurred by governmental initiatives that will allow UBI products to be
offered as well as set the stage for future telematics use (for example, the eCall initiative in the
European Union, which requires that all calls be equipped with in-car emergency call technology by
October 2015), and possible use of smartphones to send geospatial data to the insurer instead of
relying on in-car technology.
Additionally, we expect that UBI programs will mature, leveraging more data on driving behavior
over relying only on the distance driven, and becoming a source of real-time information that could
be leveraged for additional service or product offerings. However, obstacles still exist for this
technology to become mainstream. These include pending resolution to Progressive's patent

battles (litigation was filed in late 2012 against U.S.-based insurers offering UBI programs, citing
that it was an infringement on Progressive's patents), the need for a single provider to offer a
turnkey UBI offering (including all the required technology, telecommunications support, and core
business support, such as policy administration and billing), improved regulations on consumer
data privacy for telematics data, and big data impact as large volumes of data are collected
requiring analysis.
Overall, telematics will have a dramatic effect on the overall auto insurance industry during the next
10 years, revolutionizing it with the addition of new revenue sources and enhanced data to help with
risk selection for high-risk populations.
User Advice:
■ Insurers that have not yet launched UBI programs should continue to monitor pilot projects and
PAYD initiatives that are public, and analyze the long-term impact that telematics devices are
having on the personal and commercial auto insurance industry. Watch the vendor market for
consolidation and the emergence of service providers offering turnkey telematics offerings. Tier
1 insurers that have yet to launch UBI products should quickly review their strategies to identify
the risks in failing to offer these product lines.
■ Insurers that are planning UBI launches should ensure that all investments made in core system
replacements and enhancements — including those to support product configuration, policy
management and billing — will meet the product and process needs for UBI and other
telematics-based insurance products, and that they have sufficient data analysis capabilities to
handle incoming data. Identify big data use cases for telematics, and how technologies like
predictive modeling could be used to better leverage telematics-derived data.
■ Insurers should select the right UBI platform based on their business models and internal
technical capabilities. Tier 1 insurers may prefer to select best-of-breed technology and data
companies, while midsize insurers may need a single source for end-to-end technology and
services. Some companies may need to outsource data collection, rather than build a big data
infrastructure.
■ Insurers offering UBI programs should evaluate their ROI, new opportunities for leveraging data
to other customer segments outside the program, and how behavioral models could improve
results. Identify new customer segments other than high-risk populations where UBI would be
suitable.
■ Insurers should evaluate the future of auto technology, including the autonomous car, to
determine its impact on UBI programs, as well as on auto insurance overall.
■ Insurers should assess their local regulatory environments to learn any pending issues around
UBI launches, data disclosures, consumer data privacy impact and product filings.
Business Impact: Telematics will open up new opportunities for the auto insurance industry by
providing a mechanism to offer products that are based on individualized risk and driving behavior.
When telematics data is applied to underwriting, insurers can more accurately assess risk and price
insurance coverage, based on real-time data that's sent wirelessly from the vehicle. In the long

term, the use of telematics will help with the recovery of stolen vehicles, faster claims submittals
and improved roadside assistance for drivers.
In the long term, telematics can help reduce claims and driver risks. A study conducted by Zurich
Insurance Group in late 2010 reported that the use of telematics can reduce motor fleet accidents
by 30% (Source: www.automotiveit.com/zurich-insurance-telematics-can-reduce-fleet-crashes-
by-30-percent/news/id-00541). This will help promote profitability overall for commercial auto
insurers.
Maturity: Emerging
Sample Vendors: Baseline Telematics; Intelligent Mechatronic Systems; MyDrive Solutions; Octo
Telematics; Progressive Casualty Insurance; Progressive Platforms; Qualcomm; The Evogi Group;
Verizon; Vodafone; Wunelli
Recommended Reading: "Top 10 Technologies With the Greatest Impact for the Property and
Casualty Insurance Industry"
"Predicts 2013: The Nexus of Forces Will Lead to Further Digitalization of Insurance Value Chains"
"Innovative Insurers: Harnessing the Nexus of Forces for Competitive Advantage"
Machine-to-Machine Communication Services

Analysis By: Tina Tian; Sylvain Fabre
Definition: Machine-to-machine (M2M) communication services are used for automated data
transmission and measurement between mechanical or electronic devices. The key components of
an M2M system are:
■ Field-deployed wireless devices with embedded sensors or RFID technology

■ Wireless and wireline communication networks, including cellular communication, Wi-Fi,
ZigBee, WiMAX, generic DSL (xDSL) and fiber to the x (FTTx) networks
■ A back-end network that interprets data and makes decisions
Position and Adoption Speed Justification: M2M technology continues to fuel new business
offerings and support a wide range of initiatives, such as smart metering, road tolls, smart cities,
smart buildings and geofencing assets, to name a few. Revenue growth is now 30% to 40% per
year. Communications service providers (CSPs), business development managers and architects in
many industries should take a closer look at how M2M communication services can help grow their
business.

There is currently no one service provider than can deliver M2M services end-to-end. The value
chain remains fragmented. Service providers are trying to partner with others to create a workable
ecosystem.
M2M services are currently provided by three types of provider:
■ M2M service providers. Mobile virtual network operators and companies associated with an
operator that can piggyback on that operator's roaming agreements (for example, Wyless, Kore
Telematics and Jasper Wireless).
■ CSPs. Some CSPs, such as Orange in Europe and AT&T in North America, have supplied M2M
services for several years, but have not publicized them widely. However, CSPs are now
marketing M2M services more vigorously, and those that have not had a strong M2M presence
so far are treating it more seriously by increasing their marketing or creating dedicated M2M
service divisions (for example, T-Mobile, Telenor and Vodafone).
■ Other organizations with different M2M strengths. These are combining to enter the market.
Jasper Wireless, for example, has also signed an agreement with AT&T to provide dedicated
support for M2M devices created jointly.
All three types will be viable options for clients to consider, and can be customized to meet M2M
requirements awaiting verification.
Besides the service providers mentioned above, there are companies with certain skills in strategy
and rollout that can manage the daunting value chain needed to implement M2M solutions.
Examples are:
■ Ventyx, an ABB company

■ Walsh Vision, which has rolled out an M2M-based pay-as-you-drive insurance solution
■ Capgemini, a leader in smart-grid and advanced metering infrastructure solutions
■ Integron, a logistics and integration partner for M2M solutions.
Wireless access is one of the many important links in an M2M deployment chain. CSPs have to be
well positioned for their role in the M2M market, based on an evaluation of their own strengths — in
terms of multinational network coverage, application development skills and IT management ability
— and their choice of a suitable business model and partner. CSPs also have to be in a position to
sell a series of new data plans (that accommodate an M2M solution's business requirements) as
well as provide some form of second- or third-tier support. These demands are being placed on
CSPs whose core expertise lies in the provision of mass-market voice and data services to
consumers.
One of the key technology factors that may affect M2M service deployment is mobile-network-
supporting capability. Early M2M services were smart meters, telematics and e-health monitors,
which are expected to be widely used in the future. In its Release 10, the Third Generation
Partnership Project (3GPP) has been working on M2M technology to enhance network systems in
order to offer better support for machine-type communications (MTC) applications. The 3GPP's TS

22.368 specification describes common and specific service requirements for MTC. The main
functions specified in Release 10 are overload and congestion control. The recently announced
Release 11 investigates additional MTC requirements, use cases and functional improvements to
existing specifications. End-to-end real-time security will also become an important factor when
more important vertical applications are brought into cellular networks.
Another key factor on the technology side that may impact mass deployment of M2M
communication services is the level of standardization. Some key M2M technology components —
such as RFID, location awareness, short-range communication and mobile communication
technologies — have been on the market for quite a long time. But there remains a lack of the
standardization necessary to put the pieces of the puzzle together to make M2M services cost-
effective and easy to deploy, and therefore to enable this market to take off. M2M standardization
may involve many technologies (like the Efficient XML Interchange [EXI] standard, Constrained
Application Protocol [CoAP] and Internet Protocol Version 6 over Low-Power Wireless Personal
Area Networks [IPv6/6LoWPAN]) and stakeholders (including CSPs, RFID makers, telecom network
equipment vendors and terminal providers). The European Telecommunications Standards Institute
has a group working on the definition, smart-metering use cases, functional architecture and service
requirements for M2M technology.
User Advice: As M2M communications grow in importance, regulators should pay more attention
to standards, prices, terms and conditions. For example, the difficulty of changing operators during
the life of equipment with embedded M2M technology might be seen by regulators as a potential
monopoly. Regulators in France and Spain already require operators to report on M2M connections,
and we expect to see increased regulatory interest elsewhere.
For the end user, the M2M market is very fragmented because no single end-to-end M2M provider
exists. A number of suppliers offer monitoring services, hardware development, wireless access
services and hardware interface design and other functions to enterprise users. As a result, an M2M
solution adopter has to do a lot of work to integrate the many vendors' offerings, on top of which,
business processes may need redefining. M2M will speed up IT/operational technology alignment
and convergence, as IT and communications solutions will come closer to users' operations and
control through M2M technology.
An enterprise's M2M technology strategy needs to consider the following issues:
■ Scope of deployment
■ System integration method
■ Hardware budget
■ Application development and implementation
■ Wireless service options
■ Wireless access costs
Business Impact: M2M communication services have many benefits for users, governments and
CSPs. They can dramatically improve the efficiency of device management. As value-added

services, they also have considerable potential as revenue generators for CSPs — the success of
these services will be important for CSPs' business growth plans.
M2M communication services are expected to be the critical enablers for many initiatives that fall
under the "smart city" umbrella and contribute to the Internet of Things. Examples are smart-grid
initiatives with connected smart-grid sensors to monitor distribution networks in real time, and
smart-transportation initiatives with embedded telematics devices in cars to track and control
traffic. M2M communication services will also connect billions of devices, causing further
transformation of communication networks.
M2M communication services should be seen as an important set of facilitating technologies for use
in operational technologies. At an architectural level, particular care should be taken when choosing
M2M solutions to ensure they facilitate the alignment, convergence or integration of operational
technology with IT.
Sample Vendors: AT&T; France Telecom; KDDI; Qualcomm; Sprint Nextel; Telefonica; Telenor;
Verizon; Vodafone
Recommended Reading: "How CSPs Can Successfully Optimize M2M Opportunities for Growth"
"The Time is Right for CSPs to Move Into M2M Management"
"Sourcing Strategies Must Assess External Providers When Integrating M2M Communications Into
IT/OT Initiatives"
"Competitive Landscape: M2M Platform and Software Providers for CSPs, 2012"
"Market Trends: Overcoming Machine-to-Machine Challenges to Realize the Market Potential"
"Technology Overview: Mobile M2M Network in Japan"
"IT and Operational Technology: Convergence, Alignment and Integration"
Operational Technology Platform Convergence

Analysis By: Kristian Steenstrup
Definition: Operational technology (OT) is hardware and software that detect or cause a change
through the direct monitoring or control of physical devices. The convergence we are seeing
throughout the OT industry reflects that the platforms on which the OT is developed and delivered
(that is, the operating systems and communications architecture) are changing and converging with

those commonly used in IT. Typically, this is characterized by a move by OT vendors to Microsoft
and Linux operating systems, RDBMSs, and TCP/IP communications.
Position and Adoption Speed Justification: OT is a widely diverse set of products, but generally
has displayed a trend in the past 10 years to move to IT-like architectures and is now approaching
the Trough of Disillusionment, where the drawbacks and complexities are occupying the minds of
vendors and customers alike. This is highlighted by failures such as security breaches and patching
challenges, which were formerly of little importance to staff responsible for the OT products.
Change will take time — the actual devices and platforms have a longer life span than IT, so the
change-out rate is much slower (although the change has been in progress for over 10 years in
most industries).
Additionally, a lot of organizational entropy surrounds the management of OT, where engineers and
operations groups will protect their turf in the belief that "ownership" is important, rather than
separating out a group's authority over a technology from the responsibility for support. Although
the convergence has been going on for some time now, it has been done on a piecemeal basis —
the engineering groups making the decisions do so on a site-by-site basis. What's missing is an IT-
like approach to standardizing systems and managing them. Momentum is gathering though, as
vendors like GE, Schneider Electric and Ventyx, an ABB company, undertake significant investment
in their software portfolios.
User Advice: This change will herald two consequences. The upside is that OT systems are
becoming more interoperable and accessible to the rest of the technology world — most
importantly, IT. So information and process flows can cross IT and OT boundaries more readily. The
downside is that the management of OT systems needs to radically change as the systems take on
more IT-like characteristics. So, software security, patching, upgrading and disaster recovery need
to be managed.
Companies should measure the impact of this convergence in their own contexts. First, how much
OT exists? For asset-intensive companies, those with substantial plants and equipment, this is a
potentially large issue, since all of the heavy equipment, plants and facilities are progressively being
automated with OT software. The second point to consider is how much new-generation or
"converged" OT is there? For some companies with less converged OT, immediate change is not
required. For others with a preponderance of converged OT, changes will be necessary to manage
the software life cycle of the OT systems, and clear change initiatives must be developed to ensure
support for IT and OT alignment and integration.
As IT departments get involved with OT products, there are similar changes and, therefore,
business impacts on IT organizations as they come to terms with the different and often higher
performance requirements of OT systems. In either case, someone has to take responsibility. Also,
the benefits that come from standardization should be considered, including more and better
access to information across the organization, more rapid adoption of new IT technologies such as
mobile and wireless, and improved efficiencies.
Business Impact: As OT converges with IT architecture, demand will rise for an enterprise
approach to the management and oversight of OT products. The organization will plan and manage
standards, platforms, architecture planning, IT asset management (ITAM) for OT, configuration

management database (CMDB), security, patching, upgrades and disaster recovery for OT systems.
These duties may go to the existing IT departments, because the converged platforms have more in
common with IT systems than their antecedents. In other cases, companies are creating OT support
groups within the existing operations or engineering groups to formalize these responsibilities and
manage the software life cycle in a consistent and coherent way.
Sample Vendors: ABB Group; Alstom Grid; GE; Honeywell; Invensys; Johnson Controls; Schneider
Electric; Siemens
Recommended Reading: "Convergence of Digital Technologies Needs Expanded and

Strengthened IT Governance"
"Five Critical Success Factors for IT and OT Convergence"
"The CIO's Role in Managing the Expanding Universe of Digital Technologies"

Analysis By: Barry Runyon; Jessica Ekholm
Definition: Mobile health monitoring is the use of IT and mobile communications to monitor the
health of patients, and to help ensure that appropriate action is taken. Patients are provided
wearable and portable monitoring devices that capture physiological metrics, such as blood
pressure, glucose level, pulse, blood oxygen level and weight, and then transmit or stage the patient
data for analysis and review using mobile device and carrier services.
Position and Adoption Speed Justification: Advances in smartphone platforms, sensor

technologies, cellular networks, cloud computing and portable medical devices have removed many
of the technical barriers to mobile health monitoring. Industry cooperatives such as the Continua
Health Alliance, the ZigBee Alliance and the Bluetooth Special Interest Group have furthered the
cause of device interoperability. Over this past year, we have seen an increased interest in mobile
health monitoring — due to a number of factors:
■ The increased burden of chronic disease in emerging markets, many of which have poor
landline coverage and better mobile coverage, is generating interest from government
healthcare agencies in deploying mobile versions of home health monitoring devices.
■ A growing interest among healthcare delivery organizations (HDOs) in developed and emerging
markets in using mobility to overcome the "location dependence" limitation of home health

monitoring technologies. The use of portable or wearable devices opens the possibility not only
of monitoring patients who are active and mobile, but also continually and in real-time.
■ The emergence of personal health record (PHR) applications is enabling healthcare consumers
to create Web-based healthcare data repositories that are able to accept data from health and
fitness monitoring devices.
■ An increasing fascination with the so-called "quantified self." Sports product manufacturers,
such as Adidas and Nike, are offering motion trackers that help create a better jogging
experience. Professional sports teams use a variety of dedicated sensors and devices to
measure the performance of team players. The widespread adoption of smartphones with low-
cost applications that enable mobile health monitoring is leading to growing interest from
healthcare consumers in self-monitoring.
In February 2012, Telcare (see "Cool Vendors in Healthcare Providers, 2012") began shipping U.S.
Food and Drug Administration (FDA)-cleared glucometers that automatically connect to a cellular
data network and integrate with Telcare's own website, payer call centers and the electronic health
records (EHRs) of healthcare providers. There is no requirement for the user to sign up or to
connect to a Wi-Fi network initially or after each reading. The connected glucometer is no more
difficult to use than an unconnected glucometer, and far easier than those that use Bluetooth or
cords to connect the device to an intermediate PC or gateway.
Despite growing interest, most deployments of mobile health monitoring are pilot projects. HDOs,
for the most part, are not yet convinced that the business case for mobile health monitoring is viable
and have not yet shown the organizational commitment to develop sustainable services on a large
scale. The ease of deployment of products such as Telcare will help move some pilots to larger-
scale, operational programs. During the next few years, as mobile health monitoring evolves and its
clinical uses become more clearly defined, it will most likely fragment into certain submarkets
focused on particular clinical areas, such as obesity, chronic obstructive pulmonary disease
(COPD), diabetes and cardiac care.
User Advice: Whether mobile health monitoring pilots evolve into operational deployments depends
on the ability of HDOs to overcome multiple obstacles, including legal and licensing restrictions,
inconsistent reimbursement by healthcare payers, and the reality that mobile health monitoring will
require new staffing and workforce considerations and new business processes for dealing with
remotely generated patient data, as well as new ways of integrating this information into their
business and clinical systems.
HDOs should focus on the process and business issues raised by mobile health monitoring. It is
essential to develop the ability to manage large numbers of mobile devices and remote patients, to
change business and clinical processes to handle a remotely generated patient data, and the
staffing model to be able to orchestrate time-critical interventions for patients.
HDOs should not rush to replace home health monitoring in favor of mobile health monitoring.
Mobile monitoring will be used to supplement home monitoring, but will not replace it in the near
term.

Business Impact: If deployed appropriately, mobile health monitoring will enable closer monitoring
and faster intervention in the care of certain groups of patients. Mobile health monitoring can
improve patient engagement, enhance the patient experience and increase adherence to care
plans.
Maturity: Emerging
Sample Vendors: Abbott Diabetes Care; Aerotel Medical Systems; Ideal Life; Johnson & Johnson;
Medic4all; Medtronic; OBS Medical; Preventice; Ringful Health; Roche; Tunstall Healthcare Group
Recommended Reading: "As the Mobility Movement Gains Momentum, Healthcare Delivery
Organizations Must Prepare to Adapt"
"Cool Vendors in Healthcare Providers, 2012"
"Analytics Gets Personal with the Quantified Self"
Mesh Networks: Sensor

Analysis By: Nick Jones
Definition: Sensor networks consist of dynamic meshes of peer nodes, each of which includes
simple networking, computing and sensing capabilities. Some variants offer low-power operation
and multiyear battery life. Sensor networks are typically self-organizing, using distributed routing
algorithms, and are capable of ad hoc operations, with nodes joining and leaving dynamically. We
use the term "sensor network" to mean an entire system consisting of multiple sensors connected
in a mesh network, possibly with gateways to connect the network to the Internet.
Position and Adoption Speed Justification: Small-to-midsize implementations (that is, tens to
hundreds of nodes) are being deployed using technology from several vendors for applications such
as remote sensing, environmental monitoring and building management/automation. The market is
commercially and technologically fragmented, and topics such as middleware and power-efficient
routing are still areas of active academic research. Some vendors use proprietary protocols;
however, standards such as Internet Protocol version 6 (IPv6) over Low-Power Wireless Personal
Area Networks (6LoWPAN) are making sensor environments more accessible by extending
mainstream IPv6 networking to sensor nodes.
Sensor networks will use a wide range of wireless bearer technologies. These include ZigBee,
802.15.6 for body-area networks, low-energy (LE) Bluetooth, WirelessHart for industrial networks,
and proprietary protocols such as Z-Wave for home automation. The long-term market potential is
enormous, with likely scenarios of tens of billions of installed units. However, although the wireless
bearer technologies are maturing rapidly, other aspects of sensor networks, such as business
models and the slower pace at which silicon chips evolve, mean that it will take at least a decade

before the market reaches its full potential, which accounts for the immature rating we ascribe to
this technology.
User Advice: Sensor networks will be a key component of the Internet of Things. Organizations
looking for low-cost sensing and robust self-organizing networks with small data transmission
volumes should explore sensor networking. Because it is an immature technology and market,
vendor and equipment decisions could become obsolete relatively rapidly (perhaps in less than
three years); therefore, this area should be viewed as a tactical investment. Despite these
challenges, there have been successful early deployments in such areas as building automation,
agricultural sensing, automated meter reading, environmental monitoring and industrial sensing.
Business Impact: This technology will affect a wide range of business areas, including low-cost
industrial sensing and networking; low-cost, zero-management networking; resilient networking;
military sensing; product tagging; healthcare; building automation; infrastructure monitoring (e.g.,
railways or bridges); home automation; and environmental management.
Maturity: Emerging
Sample Vendors: Cisco; Dust Networks; Intel; Memsic; Millennial Net; Sigma Designs; Silicon
Laboratories
Recommended Reading: "The Internet of Things Will Support a Wide Range of Business Models"
Advanced Metering Infrastructure

Analysis By: Zarko Sumic
Definition: Advanced metering infrastructure (AMI) is a composite technology comprising several

elements: consumption meters, a two-way communications channel and a data repository (meter
data management). Jointly, these elements support all phases of the meter data life cycle — from
data acquisition to final provisioning of energy consumption information to end customers (for
example, for load profile presentment) or to an IT application (such as billing, revenue protection,
demand response or outage management).
Position and Adoption Speed Justification: The different drivers for AMI deployment — combined
with the different market structures around the world (integrated or unbundled) and their different
meter ownership models — result in diverse solutions implemented in various energy markets. In
some markets, such as the U.S.; Ontario, Canada; Victoria and Western Australia; Ireland; and
Benelux (Belgium, the Netherlands and Luxembourg), AMI deployment is driven by the need to
address future supply shortages by enabling demand response and energy efficiency. In other
markets, such as the Nordic countries, the main driver is the need to facilitate retail market
switching by providing more-frequent meter reads. In an early deployment in Italy, the primary driver
was reducing customer service provisioning costs.

In the U.K., government plays a more significant role in AMI technology selection (that is,
communications and meter data repository) through government organizations such as the
Department of Energy and Climate Change (DECC) and Office of Gas and Electricity Markets
(Ofgem). In the U.S., technology is selected by utilities that manage asset and customer
relationships. The U.S. approach creates more of a heterogeneous AMI environment with rising
interoperability concerns.
While a number of U.S. utilities have deployed AMI — following the U.S. government's Smart Grid
Investment Grant (SGIG) program — concerns with investment recovery for the matching part of the
program's grants have slowed some implementations. In addition, customer backlash in the
California and Texas markets has impacted some projects, raising concerns over metering, billing
accuracy, data privacy and electromagnetic fields. The primary element in the backlash, however,
has been the lack of a good utility customer communications strategy. As a result, utilities now
realize the need to invest more strongly in consumer education to ease the end-user technology
adoption challenge.
Most EU member countries are considering plans to replace 80% of their meters by 2020. The U.K.
is on a more aggressive path, following the DECC's proposal to replace 100% of the meters with
AMI (smart meters) by 2020. Similar programs exist elsewhere — notably in Australia and New
Zealand — as well in China, which has set a nationwide smart metering replacement program by
2020.
User Advice: AMI deployment can be used as a proxy for a more strategic smart grid project to
identify potential governance issues. AMI technology spans the IT domain (meter data management)
and the operational technology (OT) domain (such as the communications backbone and smart
meters). IT and OT each operate within different organizational and process maturity levels, and
both have different frameworks to assess technology asset supportability and maintainability.
However, the infusion of computational power on the OT side influences technology life expectancy
and raises supportability issues. Maintaining smart meters will be increasingly similar to maintaining
an IT asset, such as desktops and laptops, because they both share the same distributed nature,
increasingly Internet Protocol-enabled communications and shorter technology update cycles.
The technical requirements for an AMI are similar to revenue metering for large commercial and
industrial customer segments (such as interval meter data with at least daily meter interrogation).
The one significant difference is the scale of deployment, because it usually includes all customer
segments. An additional difference is that, as an enterprisewide environment, AMI must support a
variety of applications and end-user needs for energy consumption data. Therefore, AMI must meet
a wide spectrum of requirements for data latency, persistency and scalability. As an enabling utility
technology, AMI has the potential to significantly transform key aspects of the utility business.
Because of its composite technology, AMI requires interdisciplinary governance and can be treated
as a proxy for wider smart grid deployment.
The flood of stimulus funds in the U.S., and from policymaker initiatives globally, may force utilities
to make premature decisions and embark on AMI initiatives without a clear understanding of the
project ownership, expected deliverables, governance, security, intellectual property considerations,
technology maturity and the vendor's expertise. Utilities should be careful about technology

selection, available standards, component interoperability, security implications, performance,

scalability and future-proofing technology selections to meet upcoming needs.
Business Impact: Affected areas include customer service, billing or revenue management,
revenue protection, real-time and time-of-use pricing, demand response, prepayment, distribution
network analysis and outage reporting. In addition to providing utility-centered benefits (such as
meter reading cost reduction, out-of-schedule meter reads, revenue theft prevention and outage
notification), AMI can also provide benefits related to the energy market, such as enabling customer
switching by remote turn-off or turn-on functions; customer and societal benefits by supporting
energy efficiency programs (for example, bill reduction); and carbon emissions abatement initiatives.
In addition to its primary function of supporting all phases of the meter data life cycle, AMI
frequently includes the ability to remotely manipulate customers' connections (connect or
disconnect) and, in some instances, to provide on-premises displays to notify customers of variable
energy prices and other consumption-related information. In some installations, AMI enables the
utility to control consumer load (demand dispatch) by accessing smart thermostats, or by accessing
consumer appliances via home-area networks, such as in-home broadband over power line or
ZigBee.
Maturity: Emerging
Sample Vendors: Aclara; eMeter; Echelon; Elster; Itron; Landis+Gyr
Recommended Reading: "Innovation Insight: Metering Innovation Powers Energy Grid

Transformation via Information Infusion"
"Magic Quadrant for Meter Data Management Products"
"Top 10 Business Trends Impacting the Utility Industry in 2013"
"Management Update: Top 10 Technology Trends Impacting the Energy and Utility Industry in
2012"
"The Utility of the Future: The Information Utility"
Enterprise Manufacturing Intelligence

Analysis By: Simon F Jacobson
Definition: Enterprise manufacturing intelligence (EMI) depicts the performance of manufacturing

operations by synthesizing and analyzing information from highly granular, manufacturing-related
data made visible and understandable through dashboards and portals. Therefore, it is useful in
providing decision support to various business and operational roles.

Position and Adoption Speed Justification: Organizations seeking to leverage manufacturing's

capabilities to make better supply chain decisions continue to struggle with visibility into their
operations. This prevents them from computing composite metrics from key performance indicators
(KPIs) aggregated from multiple plant sources, and doesn't allow the business to understand
manufacturing's true capabilities, costs and constraints. Client activity and inquiry on EMI continues
to increase, and clients have a plethora of options from which to choose: point solutions,
manufacturing execution system (MES) vendor add-on modules, and frameworks provided by ERP
and service firms. Additionally, more manufacturing segments are starting to embrace EMI. As
adoption rates grow, it will move beyond the early mainstream of maturity.
The hazy functional scopes of most EMI offerings are pushing it further into the trough. EMI
applications and frameworks should encapsulate the following capabilities:
Aggregate — Aggregate information from a variety of real-time and diverse back-end data sources,
including automation, historians, MES operational databases, laboratory information management
systems (LIMSs) and relational database systems.
Contextualize — Create and maintain persistent functional/operational relationships between data

elements from disparate sources. It may be useful, for example, to maintain relationships (context)
between certain named process variables and ranges of time series data.
Analyze — Transform data into real-time performance intelligence through the application of
business rules (that is, calculating the range of KPIs using raw process performance and cost-
based information from ERP and other business-level systems).
Visualize — Provide intuitive, graphical representation of intelligence that supports context-based

navigation of information based on persistent interrelationships, enabling drill-down from multiplant
representations to individual facilities and systems.
Propagate — Automatically transfer relevant operational performance information to the

appropriate business-level systems (such as enterprise asset management [EAM], ERP, supply
chain management [SCM] or product life cycle management [PLM]).
The majority of EMI approaches do not provide much more than analysis and visualization. This
functional inadequacy of many EMI providers means that any associated process changes are done
separately, and local quick wins at the local level tend to take center stage, versus using the
intelligence to drive more widespread improvement of product supply capabilities.
The following will accelerate the EMI market's ascension toward the plateau:
Some EMI providers continuing to add deeper functionality through products designed to do more
than provide descriptive analytics and report on manufacturing performance. These second-
generation or add-on products will be participating in the operations intelligence (OI) market, which
is gaining momentum at this stage. Do not expect EMI to become obsolete or fully overtaken by OI
at this stage. The two technologies are complimentary of one another, and it is not uncommon that
a vendor will have offerings in both camps.

Overcoming multisite scalability hurdles. The majority of EMI approaches start with simple overall
equipment effectiveness (OEE) dashboards to understand performance on a local level (such as line
or asset), with the intention of scaling into multiple line or multiple site deployments. These initial
beachheads often deliver quick wins and rapid returns on initial cash outlays, validating that EMI is
a low-risk, high-reward investment. However, it also elongates the deployment cycle for multiple
sites, which is why the time to plateau has been elongated.
User Advice: EMI provides the following kinds of decision support:
■ Machine-state data (up, down, stopped and idle) translated into OEE
■ Information on energy efficiency and consumption
■ Process variable history translated into dollars-per-unit volume production
■ Quality-reject data translated into dollars per finished goods scrapped (or the cost of poor
quality [COPQ])
Organizations without a clear understanding of what it is they need to measure will face longer time
to value from their investments.
Whether or not an application can satisfy your performance-monitoring requirements depends

largely on how the application is architected. Conventional analytics applications operate on
datasets that have been staged, but this introduces latency into the process, since data is captured,
transformed and then stored into the analysis set. There are also applications that can perform
analytics "on the fly" as data is extracted from shop-floor sources, but this places a heavy burden
on the network, thus limiting the applicability of these tools for high-volume, high-refresh
applications. The kind of EMI application to use should be dictated by how "real time" your
organization's data and information requirements are. In some cases, using the add-on EMI module
from an incumbent provider might be more sensible than layering a third-party application.
Business Impact: Manufacturers seeking competitive advantage understand that manufacturing

operations must no longer constrain supply network responsiveness. They are linking supply and
demand, while decreasing manufacturing costs and increasing agility. To strike this balance, KPIs
are needed to provide visibility into asset availability and capability, work in process, and inventory
movements. EMI helps overcome the visibility hurdle that stands in the way of this realization.
Sample Vendors: Apriso; Epicor; GE Intelligent Platforms; InfinityQS; Invensys; IQity; Oracle;
Parsec; Rockwell Automation; SAP; Shoplogix; Siemens
Recommended Reading: "Debunking the Hype of OEE"
"The Manufacturing Performance Dilemma, Part 1: Overcoming Visibility Hurdles With Enterprise
Manufacturing Intelligence"

"The Nexus of Forces Is Ready to Advance Manufacturing 2.0"
Vehicle-to-Infrastructure Communications
Definition: Vehicle-to-infrastructure communication technologies create autonomous data

networks using dedicated frequencies, such as DSRC or LTE, between vehicles and the road
infrastructure for safety, traffic management, environmental or e-mobility applications, such as
electric vehicle (EV) charging station finders and availability. For example, if an accident occurs, an
affected road section could be shut down automatically, and information will be sent to traffic signs
or navigation solutions, which will redirect traffic to new, unobstructed areas.
Position and Adoption Speed Justification: Vehicle-to-infrastructure communications require

costly investments in road infrastructure and automobiles. Government-sponsored initiatives to
improve traffic management and overall traffic safety, such as the U.S. government's Vehicle
Infrastructure Integration (VII) and IntelliDrive initiative, are critical for the long-term success of car-
to-infrastructure communication efforts, but more committed funding is needed to accelerate
progress. Recent government focus on smart cities, automated/autonomous driving, and transport-
related emissions from automobiles and e-mobility, in particular, has led to renewed interest in
vehicle-to-infrastructure initiatives.
User Advice: Automotive companies, municipalities and technology companies: Lobby for more
support by governments for vehicle-to-infrastructure initiatives, and generate public awareness for
this new technology. Leverage the increased sensitivity and awareness for environmental
responsibility in these efforts. Major cities, which are more likely to suffer from traffic congestion
and accident rates, should be prioritized. New road infrastructure initiatives should consider vehicle-
to-infrastructure-related technology requirements. Identify innovative vendors in this space that can
help accelerate deployment of such efforts. Potentially consider investing in some of these vendors
to help expedite their market reach. Consider the use of portable consumer devices to help collect
relevant driving data before a ubiquitous infrastructure exists. Stay on top of privacy-related data
issues to minimize user rejection and to define use cases.
Business Impact: Vehicle-to-infrastructure communication technologies enable the automotive

industry and governments to address growing traffic management, environmental and safety issues,
but can also offer new revenue opportunities in the form of safety and driver assistance offerings.
Maturity: Emerging
Sample Vendors: Bosch; Cisco; Continental; Delphi; IBM; Infosys; Nokia; Verizon
Recommended Reading: "Innovation Insight: The Connected Vehicle Will Dominate Automotive
and Mobility Innovations"

IPv6
Analysis By: Bjarne Munch
Definition: Internet Protocol version 6 (IPv6) is the next version of Internet Protocol (IP), designed to
overcome several key limitations of IP version 4 (IPv4), the most widely used networking protocol.
The main benefits of IPv6 are vastly increased address space, integrated security and quality-of-
service mechanisms, as well as support for autoconfiguration and mobility. In addition, large
network operators may see better routing stability as platforms mature.
Position and Adoption Speed Justification: IPv4 address exhaustion is occurring. In 2011, the
largest blocks were fully assigned by the Internet Assigned Numbers Authority, and the regional
registry responsible for assignments in Asia/Pacific (the Asia/Pacific Network Information Centre
[APNIC]) is ceasing to allocate IPv4 addresses for networks with more than 1,024 hosts. Other
registries will follow, increasingly restricting new IPv4 allocations.
New public IP addresses will increasingly only be IPv6 addresses and, as the Internet grows, IPv6
usage will grow along with it. By 2015, 17% of the global Internet will use IPv6, with 28% of new
Internet users running the protocol. Yet the installed base of IPv4 devices is huge and will not
migrate soon. Through 2020, both the public Internet and the typical corporate/government network
will carry both IPv4 and IPv6 traffic.
While many public operators and consumer Web services will move first, the situation is different for
enterprises. For them, the actual depletion date for public addresses is not critical because most
enterprises use relatively few public IP addresses, and instead use private IP addressing inside their
organizations while conservatively managing their pool of public addresses.
Enterprises will increasingly discover pockets of IPv6 appearing. Networked systems that connect
the physical world — such as sensor networks, process automation systems, advanced metering
infrastructure asset management and building automation networks — are a key area of
development. The commercial availability of wireless sensor products that support the v6-only
protocol, known as IPv6 over low-power wireless personal-area network (6LoWPAN), is
accelerating.
User Advice: The time for selective deployment of IPv6 is here, but a large replacement of existing
IPv4 services is not recommended. Planners should separate their strategies into (1) public Internet
presence; (2) internal addressing; and (3) specialty networks.
Near-term action on the public Internet presence is now becoming critical. Soon we will see the
migration of many public-facing services to dual-stack IPv4/v6, varying widely by region. Because
an expanding part of the Internet's population will be natively IPv6, especially in Asia and the
developing world and 3G/4G mobile networks, public-facing services (such as Web and mail hosts)
should be on the list to migrate to IPv6. Enterprises with Internet presence in Asia and enterprises
with mobility strategies should begin transitions of their Internet access and services now. In the
transition, we expect that carrier-grade network address translation gateways will become

overwhelmed, so clients must take charge of providing native support or use translation gateway
capabilities from vendors of application delivery controllers, such as A10, F5, Citrix and Radware.
Organizations that use multihomed connections to the Internet should pay particular attention to the
transition to IPv6, as there are a variety of complex engineering trade-offs that must be considered
but little standardization in the approach.
Assess the level of IPv6 support in your current firewalls, intrusion prevention system (IPS) and other
demilitarized zone (DMZ) components. Begin testing the IPv6 capabilities of your firewall and other
critical security components at least 12 months before your organization launches its IPv6
presence. Note that IPv6 support in the tools to monitor and manage DMZ components (e.g.,
firewall policy management tools and security information and event management [SIEM] solutions)
varies widely.
As businesses replace network infrastructure, they should ensure that their vendors have a credible
IPv6 strategy — every piece of infrastructure equipment purchased should have, at minimum, IPv6
support implemented in software, and foundational equipment (switches, routers, high-performance
gateways) should implement IPv6 handling in hardware. As an example, the U.S. government is now
requiring that new equipment have IPv6 support. Expect to support both IPv6 and IPv4 through at
least 2020. Look for IPv6 Ready Logo certification as a measure of a product's conformance to
standards and interoperability.
There are far fewer benefits inside the enterprise that already has sufficient public Internet-routable
address space. Most of the benefits of IPv6 can be delivered with current IP (IPv4) workarounds,
such as network address translation and IPsec. While these workarounds are not perfect from an
engineering perspective, the migration costs are very high for established IP networks, and
attempts to transition even moderate-size networks have revealed many unexpected problems and
hidden costs.
Fortunately, IPv4/IPv6 coexistence technologies work well at a relatively small scale, which allows
nearly all backbone networks to stay with the current protocol. Enterprises transitioning to new
operating systems should be prepared to support some remote IPv6 clients, providing gateway
services and dual-stack capabilities as needed. By the middle of the decade, systems should be
ready to support IPv6, IPv4 and mixed environments at scale.
In a variety of applications in specialty networks, IPv6 provides a specific advantage when, for
example, scale is critical, when intercompany/interagency addressing is required, or when networks
are frequently set up and torn down. Those aggressively adopting large-scale wireless sensor
network technologies should use IPv6-based systems (6LoWPAN).
The scarcity of IPv4 addresses has created a limited market for IPv4 address transfers. In some
circumstances, address block transfers can be orchestrated where financial considerations are
made, especially between an enterprise and a carrier. Businesses considering buying or selling IP
addresses should not do so without approval of the local registrar, as public IP addresses are
owned by the registrar, not the enterprise.

Business Impact: There will be little or no business benefits or impacts. The key benefit for majority
of businesses is to avoid disruptions that new users running the protocol could create. Benefits will
be seen by only very large networks operated by carriers, the military and those deploying very
large sensor networks. Aggressive adoption will often be disruptive to operations. Some external
services serving IPv6 customers must be migrated, or enterprises risk delivering a poor user
experience.
Benefit Rating: Low
Sample Vendors: AT&T; Brocade; BT Group; Cisco; Citrix (NetScaler); F5; Juniper Networks;
Nortel; NTT Communications; Orange Business Services; Radware
Recommended Reading: "Start Introducing IPv6 in Your Public Internet Presence in Asia/Pacific
Now"
"How to Upgrade Internet Connectivity With IPv6, While Keeping IPv4"
"Internet Protocol Version 6: It's Time for (Limited) Action"
ISA-95 Integration Standards

Analysis By: Simon F Jacobson
Definition: ISA-95 is the International Society of Automation's (ISA's) standard for the integration of
enterprise IT systems and manufacturing automation systems. Organizations will use it to determine
manufacturing execution system (MES) requirements and to define manufacturing system
architectures. These requirements will also be used as the basis for selecting MESs.
Position and Adoption Speed Justification: Although they're valuable for defining common
vocabulary for IT and line of business (LOB) stakeholders to use when devising manufacturing
system architecture, these standards do not reflect the dynamic nature of manufacturing today.
Heavily emphasizing IT, integration-driven standards like ISA-95 for plant-to-business integration is
not getting the job done fast enough. IT teams tasked with creating and establishing manufacturing
system architectures are often frustrated that ISA-95, in particular, focuses on individual process
flows, such as inventory, maintenance and quality, instead of pointing toward a commonly defined
architecture. ISA-95's actual application for performing data integration can also vary from site to
site. Thus, when applied to a broader, networked scenario, with multiple plants housing
manufacturing applications from multiple vendors, the ability to implement, maintain and control
multiple system integrations into a single ERP system can be very costly and impractical for
extending to contract manufacturers. Given this scenario, it's difficult to argue for a standards-
based approach that requires integration work for each individual application that comes along.
As companies continue to define manufacturing architecture outside-in (that is, from the customer/
point of use backward) and identify how manufacturing needs to interact as part of the full value

stream, it will be easier to determine how and where to best leverage ISA-95 standards for
integration between manufacturing and business systems. This maturity will assist in pushing
ISA-95 toward the Plateau of Productivity. However, client interactions in the past 12 months have
started to demonstrate slight progress in this direction, which is why ISA-95 has started to move
out of the trough.
User Advice: Don't define manufacturing's participation in the supply chain in isolation. You'll only
create more constraints, and move away from operational excellence, flexibility, and new product
development and introduction (NPDI) goals. This means making the right trade-offs, with
collaboration across business and IT organizations balanced between standards like ISA-95, that
help control costs and the diversity of solutions to increase innovation, business growth and
competitive advantage. It's important to consider a broader enterprise architecture approach that
supports improved demand response, quality and visibility.
Also, do not seek vendors that are "ISA-95 compliant." The majority of the manufacturing
operations vendor community (and ERP vendors seeking to extend into manufacturing operations)
has widely adopted ISA-95 into its product offerings to help with standardized, multiple site rollouts
of offerings. But buyer beware: There are cautionary points behind the marketing of standards.
There is a market perception, largely perpetuated by the solution a vendor is selling, that there is a
generally accepted and well-defined boundary between business systems and production systems.
This is not the case. The boundary between systems will shift, depending on site-specific
requirements, the functional capabilities of incumbent systems and the work streams that the
integration is to represent. Additionally, as ERP vendors continue to extend their functionality into
manufacturing operations, the expansion of a gray zone, which both ERP and manufacturing
specialists recognize as an area of potential overlap, widens. This makes the actual definition of
standard integration scenarios somewhat more challenging.
Business Impact: Companies that maximize the value of ISA-95 often weave it in with broader
enterprise architecture efforts, which involves an understanding of outcomes that drive customer
value, and deciding which trade-offs, process types and performance teams to involve in meeting
these milestones. This process also identifies the key processes and information flows, interfaces
with other processes and systems, and key performance indicators needed to meet these goals.
This helps drive enterprise approaches that ultimately yield the solutions and integration scenarios
needed in manufacturing to improve time to market, and hit cost-to-serve targets.
The following benefits should be taken into consideration:
■ The ability to manufacture the same product in different plants and share capacity
■ The ability to share staff (with common standards, staff can be easily moved from locations)
■ Meaningful sharing of best practices
■ The use of common systems and total cost of ownership (TCO)

Sample Vendors: ABB; Apriso; AspenTech; Emerson Process Management; GE Intelligent

Platforms; Honeywell Process Solutions; Invensys Operations Management; Oracle; Rockwell
Automation; Savigent Software; SAP; Siemens; Werum Software & Systems
Recommended Reading: "Overcome Global Process Standardization Hurdles in Manufacturing

Operations"
"Scenario Toolkit: Enterprise Architecture Takes on Manufacturing 2.0"
"Toolkit: Define a Point of Sameness"
Vehicle-to-Vehicle Communications
Definition: Vehicle-to-vehicle (V2V) communication technology enables automobiles to share

safety, traffic and other data autonomously, using an ad hoc network enabled by a wireless
communication technology that is embedded in the vehicle. The U.S. and EU governments have
allocated specific wireless spectrums for this purpose and to support intelligent traffic safety
applications (for example, the U.S. allocated 75MHz of spectrum in the 5.9GHz band as "dedicated
short-range communication" [DSRC] to be used by intelligent transportation systems).
Position and Adoption Speed Justification: Interest in vehicle-to-vehicle communication has

somewhat been limited to individual company efforts instead of broader industry consortiums.
While the potential of V2V communication technologies is significant, some of the expectations
have been inflated, and the customer value proposition is unclear beyond specific safety
applications (for example, a sensor could indicate icy road conditions as the vehicle crosses a
bridge). The V2V communication technology could then automatically inform other drivers
approaching the bridge about this road hazard via an electronic voice prompt or warning light on
the dashboard.
Required technology implementation costs are high and will not provide initial benefits to early
adopters. Investments in electric-vehicle-charging infrastructure and overarching traffic
management objectives are likely to boost efforts regarding V2V communication, because such
networks could be used to allow vehicles to communicate with each other to improve traffic flow. A
key challenge for V2V communication is the long product development cycles in the automotive
industry, which require automotive companies to develop long-lasting technology solutions to
enable this form of communication, and which represent a cost factor. Testing of the technology in
controlled environments, like the testing currently ongoing in Michigan, is helping to advance the
technology's deployment likelihood. However, companies and governments alike will need to agree
on benefits versus cost considerations before making long-term commitments regarding future
deployment across numerous vehicles.
User Advice: For consumers, develop value propositions that provide daily relevance (for example,
traffic information) by collecting speed and driving-condition information. Determine cost
implications, and design alternative business models that can offset initial investments. (It's unclear

whether consumers are willing to pay for this technology.) Seek government support to offset the
required infrastructure costs. In addition, explore the benefits and limitations of portable devices
that can be connected to the vehicle to develop car-to-car communication scenarios without the
need to deploy a costly infrastructure. The use of portable devices can also help to establish
communication between vehicles, albeit less reliably because of battery limitations and required
user behavior (for example, drivers need to bring their mobile phones with them).
Business Impact: This technology can give vehicle manufacturers improved product appeal and
differentiation. Furthermore, it will help the automotive industry to proactively address growing
traffic management issues that, if not dealt with, are likely to trigger stricter traffic-related laws by
local governments.
Maturity: Emerging
Sample Vendors: Bosch; Continental; TRW Automotive
Recommended Reading: "U.S. Consumer Vehicle ICT Study: Web-Based Features Continue to
Rise"
RFID for Logistics and Transportation

Analysis By: Tim Zimmerman; C. Dwight Klappich
Definition: Radio frequency identification (RFID) refers to an automated data collection technology
that uses radio frequency waves to transfer data between a tag and a reader to identify, track and
locate the tagged item. Two basic categories of tags are used for logistics and transportation:
passive and battery-enabled. Passive tags collect the necessary energy from the antenna of the
reader, which can be fixed or portable. Battery-enabled tags fall into two major groupings: battery-
assisted passive (BAP) technology and active RFID tag technology.
Position and Adoption Speed Justification: One of the benefits of RFID is that it does not
necessarily require physical sight or contact between the reader and the tag. RFID can be deployed
in more than five frequency ranges, which are deployed depending on the business problem being
solved. Additionally, the technology has several architectures, including fixed readers directly
connected to the network, mobile readers that use cellular or Wi-Fi to communicate, and intelligent
tags that talk directly with the cellular or Wi-Fi infrastructures.
Passive RFID — specifically passive ultrahigh frequency (UHF) RFID — is one of the most common
forms, because of its use by major manufacturers in the supply chain. Historically, passive tags

have been deployed as a license plate, providing only an identification number that pointed to an
upstream record within the application. New UHF passive technology is producing tags with up to
8KB of memory that will enable specific information about the asset to be stored locally. These fairly
inexpensive tags still require business process change to provide an ROI to justify the tag cost of
$0.05 to $10.00.
BAP tags maintain many of the characteristics of traditional passive tags and are typically used in
the same frequency as passive, but add additional value by being able to collect information about
the tagged asset (for example, they can be used to monitor the condition of goods, such as
temperature or excessive vibration).
Active RFID tags use an integrated battery to respond to a reader and provide more capabilities,
such as identifying individual items or offering basic processing, including GPS location. These tags
have historically operated at 433MHz and 2.4GHz. The cost of active RFID runs from $5.00 to
hundreds of dollars.
Numerous RFID applications have been hyped for inventory management. However, RFID and
similar sensory technologies are emerging as strong asset management tools, with the ability to
collect information about an asset as it moves through the supply chain and to provide asset
location visibility. Many large carriers and shippers will consider RFID-enabled projects because of
the global adoption of electronic manifesting. Standard RFID technologies alone cannot provide
long-range geolocating, such as tracking the location of a vehicle miles from its domicile, so look for
sensory technologies to intertwine with RFID tags to observe and communicate location and
environmental conditions.
Various technologies will coexist, because each technology is suitable to specific process
situations. RFID use varies by segment, with asset management (such as tracking returnable assets
and transportation) leading adoption. For government initiatives, be prepared for RFID-enabled
projects to monitor assets with relatively long use cycles. Toll payment (900MHz) and contactless
cards (13.56MHz) have been in use for some time, whereas applications in logistics and traffic
management are emerging. The increase in processing power and tag memory will provide more
applications where RFID will provide business benefits; however, RFID will not replace bar codes or
other mobility solutions, such as GPS.
User Advice: Monitor and be aware of privacy-impact assessments encrypting the data on tags if
necessary. Participate in RFID-enabled tracking systems, if only as a pilot project, to gain
experience with the different types of tags and frequencies and where they are used, as well as to
position your company for the widespread adoption of larger, RFID-based system implementations
in the future. Start with a closed-loop system (i.e., a system in which your company controls most, if
not all, of the processes involved), and continue to expand and include additional supply chain
partners. Continue to monitor the technology as processing and memory capabilities look to fulfill
the vision of RFID tags as a portable database that represents a historical view of specific asset
information and transactions. Depending on the end-to-end solution, RFID will require an
infrastructure beyond tag/reader, necessitating data storage, network performance, middleware and
applications, including analytics, to help optimize the use and support the governance and control
of assets.

Business Impact: Major initiatives that use or propose to use this technology will include tracking
of assets, loss prevention, inventory management, rail transportation, logistics, toll payment, traffic
management, and transportation asset tracking and control. The impact and business value will
vary across industry segments, proposed uses, or business solutions and regions. Within an
enterprise, the value will be derived from the potential additional benefits of using RFID
technologies versus other identification technologies, such as bar coding or imaging. In these
cases, a cost-benefit analysis should compare the various identification technologies, and RFID
should be chosen only if the business case proves it to be the better approach.
The grander, yet still elusive vision is the value RFID would offer as part of the extended supply
chain and logistics challenge, where it would be used to track, monitor and facilitate the flows of
products and modes of transportation across the global supply chain. To achieve RFID's end-to-
end vision, standards must emerge that define the requirements that the system components must
follow to operate across enterprises and geographies. For example, global supply chains will require
a set of common standards to facilitate the proper interchanges of information across the entities
involved in an international shipment transaction.
The vision for RFID has evolved away from a replacement for bar codes to places where it could
offer unique benefits. The potential exists for RFID to be transformational, as unique and highly
valuable solutions emerge; however, not all projects will be transformational, and the value will
depend on the RFID use case.
Sample Vendors: IBM; Impinj; Motorola Solutions; Tego; Xerafy
Recommended Reading: "Securing UHF RFID Passive Tag Communications"
"RFID in the 2009 Supply Chain: Overview and Best Practices for Maximum Investment Value"
"Cool Vendors in Supply Chain Management, 2011"
Climbing the Slope
6LoWPAN
Analysis By: Nick Jones
Definition: 6LoWPAN is the name of an Internet Engineering Task Force (IETF) standard that
defines an approach for routing Internet Protocol version 6 (IPv6) over low-power wireless networks.
6LoWPAN is intended to bring the benefits of standard IP networking to low-power mesh and
sensor networks, which, in the past, often used proprietary technologies. 6LoWPAN uses a

compact representation of IPv6 and can be implemented in a small footprint protocol stack
appropriate for devices with limited processing power and memory.
Position and Adoption Speed Justification: The 6LoWPAN standard is now essentially complete,
although some work is underway in other standards groups to integrate 6LoWPAN principles with
other networking technologies such as low energy Bluetooth, Digital Enhanced Cordless
Telecommunications (DECT) and the International Telecommunication Union (ITU) standard G.9959
(based on Z-Wave). However, the domain of the "Internet of things" (IOT) is immature but evolving
rapidly, so further refinements may be needed during the next few years. Semiconductor
implementations of 6LoWPAN are available from vendors including NXP and Texas Instruments. A
small number of products using 6LoWPAN are now available, including networked LED light bulbs
from Greenwave Reality. 6LoWPAN will be an important enabler for the IOT and will be exploited by
new standards such as Constrained Application Protocol (CoAP), which will shortly be finalized by
the IETF.
User Advice: Organizations manufacturing or using mesh and sensor networking technologies
should consider 6LoWPAN when they require a standards-based approach to low-power
networking that will benefit from interoperability with equipment already using IP protocols or
technologies. Standards-based approaches will likely deliver greatest value for long-lived or
general-purpose applications. Organizations developing networked smart objects of any form for
the IOT should also consider using 6LoWPAN.
Business Impact: In the long term, IP-based approaches to mesh and sensor networks and the IOT
will promote interoperability and flexibility, and they will reduce costs by allowing developers to use
existing skills and tools.
Sample Vendors: Cisco; Greenwave Reality; Nivis; NXP Semiconductors; Texas Instruments
Public Telematics and ITS

Definition: Public telematics represent automotive information and communication technologies/

services with the aim of improving traffic flow and congestion, improving taxation, addressing
environmental issues, and providing intelligent transport system (ITS) solutions. These initiatives are
often government-initiated, but they also leverage private-sector-based services and offerings (for
example, parking management solution providers).
Position and Adoption Speed Justification: Most public telematics initiatives continue to be
deployed by governments in Europe, Asia/Pacific and the U.S. The main focus is on minimizing
traffic congestion, enforcing toll road collection, reducing emissions, addressing driver distraction,
and providing alternative pay-per-use taxation and insurance solutions. Legislative requirements

regarding automobiles are another market driver and include the European Union's eCall
(emergency call) initiative. Such mandates can increase the number of telematics-enabled vehicles
that can receive consumer-focused telematics services. To drive the broad market adoption of
public telematics, companies must address consumer privacy concerns and demonstrate value
propositions to consumers. The U.S. and EU governments' growing attention to public
transportation and emission reductions from automobile traffic is likely to increase investments in
public telematics focused on traffic and energy management (for example, the U.S. government's
IntelliDrive initiative). The increased interest by governments in "smart city" initiatives further
emphasizes the importance of public telematics efforts including smart parking infrastructures and
road network utilization. Although automobiles will increasingly be connected going forward, the
infrastructure requirements needed to enable public telematics initiatives will require significant
resources. Given the increasing or remaining global economic challenges, many governments and
municipalities are likely to make required infrastructure investments for ITS more slowly than
originally planned.
User Advice: Proactively seek opportunities to participate in government-related public telematics

initiatives that address growing traffic management challenges. It's in the automotive industry's
interest to ensure social compliance and to minimize vehicle-related problems. Observe new vendor
and solution developments focused on smart-city initiatives to identify potential collaboration or
partnership opportunities. Explore data-collecting and sharing opportunities to accelerate public
telematics initiatives (for example, sharing of speed data to identify areas of congestion) via
aggregation to avoid potential privacy implications for your customers.
Business Impact: This technology provides revenue opportunities via congestion charging, toll
road, real-time parking, emission management, traffic management and pay-per-use services (for
example, taxation). It supports consumer- or fleet-oriented telematics offerings that can take
advantage of the hardware installed in vehicles for public telematics. The technology will also
accelerate the emergence of intermodal transportation solutions that can leverage widely available
transportation information to optimize transportation choices based on traffic, cost/price and user
needs.
Maturity: Emerging
Sample Vendors: Atos; Deutsche Bahn; IBM; Kapsch; SAIC; Streetline; Toll Collect
Recommended Reading: "Innovation Insight: The Connected Vehicle Will Dominate Automotive
and Mobility Innovations"
"Business Drivers for Technology Investments in the Automotive Industry"
"BMW i Launch Exemplifies Gartner's Prediction of a New Mobility Era"
"Public Telematics Offers Chance to Remedy Traffic Congestion"

802.15.4/ZigBee
Definition: ZigBee is a wireless mesh networking technology based on the IEEE 802.15.4-2003
standard. Consumer applications include electronics, smart meter infrastructure, home automation
and machine-to-machine communication. The technology can be used in several topologies, such
as point-to-point or simple mesh. ZigBee's targeted battery life and data rates differentiate it from
Wi-Fi.
Position and Adoption Speed Justification: The standard is agreed on, but the development of a
large body of compliant products is evolving. It's unclear whether the standard is too broad,
causing it to splinter into many incompatible substandards. Several competing technologies, such
as Z-Wave and low-power Wi-Fi, have entered the market, making 802.15.4/ZigBee's potential as a
standard questionable, especially in the consumer market.
Bluetooth 4.0 is a potential competitor in some areas, such as medical equipment and remote
control applications; however, Bluetooth 4.0 has been more focused on consumer electronics
applications. The pricing of a stand-alone radio is expected to be in the $1 to $2 range; however,
implementations (for example, building automation) may require an advanced microcontroller,
especially when security protocols demand it, potentially adding more cost to the bill of materials.
ZigBee's first significant win was in automated meter reading, leading to participation in the smart
grid push by utilities. This has become a particularly active area for ZigBee. This foray into the home
may parlay into ZigBee's inclusion in more home appliances. In 2009, the Radio Frequency for
Consumer Electronics (RF4CE) consortium and the ZigBee Alliance agreed to work on a standard
for remote controls, which have been primarily infrared-based.
User Advice: Early adopters and organizations with closed applications should consider ZigBee. All
other potential users should monitor 802.15.4/ZigBee's progress.
Business Impact: This will affect machine-to-machine automation.
Sample Vendors: Freescale Semiconductor; GreenPeak; Marvell Technology Group; Silicon

Laboratories; STMicroelectronics; Texas Instruments
RF MCU
Analysis By: Adib Carl Ghubril
Definition: A radio frequency (RF) microcontroller unit (MCU) is a processor equipped with wireless
communications capability for low-power, real-time embedded applications.

Position and Adoption Speed Justification: More than a dozen vendors offer RF MCUs of varying
types. RF MCUs could support 8-bit, 16-bit or 32-bit instruction sets and data, and they contain a
wide range of embedded ROM. They also support the well-established 802.15.4 communication
protocol, along with some proprietary variants, as well as ANT, 6LoWPAN (also known as Internet
Protocol version 6 [IPv6] over low-power wireless personal area networks), RFID and Near Field
Communication (NFC). All these characteristics are indicative of a stable technology that is well
underway to reaching mass-market adoption.
RF MCUs are designed in electric smart meters, smart cards, white goods, surveillance networks,
portable medical equipment, remote sensing equipment, and factory or warehousing networks.
User Advice: Choose the RF MCU based on a power/performance trade-off. The more complex the
task to be undertaken by the RF MCU, the more likely it would need a wider bit width (namely, 32
bit), and the more likely it would require more onboard memory; however, the resulting integrated
circuit (IC) would be more power-hungry, so an appropriate balance must be struck
Business Impact: The projected growth rate of RF MCUs compounded annually over the next five
years is among the highest in the MCU subcategories and is fueled by the insatiable demand that
networked "things" have for wireless communications in the Internet of Things.
Sample Vendors: Atmel; Freescale; Microchip Technology; NXP Semiconductors; Renesas

Electronics; Silicon Laboratories; STMicroelectronics; Texas Instruments
Consumer Telematics
Definition: Consumer telematics represents end-user-targeted, vehicle-centric information and

communication technologies (vehicle ICTs) and services that use embedded technology or mobile
and aftermarket devices. Network-enabled cars for consumers provide in-vehicle services, such as
emergency assistance, navigation and routing, traffic information, local search (for example, for
charging stations or restaurants), financial services (for example, usage-based insurance), and
concierge services.
Position and Adoption Speed Justification: As a result of growing consumer demand for
telematics and vehicle ICT, automakers are increasingly exploring opportunities to offer cost-
effective, cloud-based solutions that ensure sustainable business models without substantial
upfront investments. Rather than having to develop the required technology (that is,
communications hardware) and resource infrastructure (that is, call centers) in-house, automotive
companies are looking to engage third-party providers with comprehensive offerings that will take
over the development, management and billing of vehicle-centric services. In addition, companies

are looking for automated, Web-based services that leverage online or server-based information
and make it accessible in a vehicle.
In the near-term, the supply chain for telematics and connected vehicle offerings will change and
will focus on extending mobile applications and services (from the mobile and Internet service
industries) to vehicles, in addition to creating specific automotive functions (for example, expanding
application ecosystems, such as those based on Android applications, to the vehicle). Telematics
service providers (TSPs) will face competition from market entrants coming from the IT industry that
will aggregate other third-party wireless content and develop core technological value propositions
from a mobile device perspective. These companies will also include smaller software, hardware
and content providers that target specific aspects of a holistic consumer telematics application and
work closely with automakers or system integrators to ensure compatibility and reliability.
Consumer telematics is also increasingly developed for the automotive aftermarket by TSPs,
network providers and insurance providers. In mature automotive markets, such as the U.S. and
Western Europe, most manufacturers will offer consumer telematics in virtually all their models by
2020 because of long product development cycle times. In emerging automotive markets, this
milestone may occur slightly later.
User Advice: As telematics and connected vehicle services, applications, technology and content
providers emerge, vehicle and device manufacturers (for example, consumer electronics
companies) will have to choose the providers that best fit their business and technology
requirements. Companies wanting to offer connected vehicle services to consumers should take
advantage of the emerging offerings in the mobile- and location-based service space. The market is
becoming more mature, and vendors have made significant investments in building the expertise,
resources and partnerships that can help companies accelerate their vehicle ICT launches.
Furthermore, vehicle manufacturers and device manufacturers must differentiate between core,
vehicle-centric telematics offerings that are embedded in a vehicle (most safety and security
applications) and personal telematics offerings (primarily information and entertainment services),
which consumers access by integrating portable devices with the vehicle.
To enable device-to-vehicle and service-to-vehicle integration concepts, vehicle manufacturers

must collaborate with consumer electronics companies, service and content providers (regarding
interfaces), and connectivity solutions. The introduction of electric vehicles (EVs) will give consumer
telematics a boost, because seamless EV ownership experiences will greatly benefit from
connected data services (for example, finding the next charging station and informing drivers of the
available range left).
Consider your choices in growing the connected vehicle ecosystem by identifying best-of-breed
technology providers instead of a single-solution approach. Both options have their benefits and
disadvantages; however, with increasing in-house expertise for the connected vehicle, automotive
companies can be more selective in their partner choices to better balance innovation and cost
objectivity factors (for example, innovation within connected vehicle offerings should reside with the
automakers).
Business Impact: Consumer telematics provides an opportunity to differentiate product and brand
values (for example, infotainment access and human-machine interface experience), to excel in new
or complemented customer experiences, to create new revenue sources (for example, preferred

listings for infotainment content), to collect vehicle-related quality and warranty information via
remote diagnostics, and to capture consumer insights.
Sample Vendors: Agero; Airbiquity; AT&T; Google; Intel; Microsoft; Nokia; Nvidia; OnStar; Sprint;
Verizon; WirelessCar
Recommended Reading: "GM's Global LTE Strategy Aims for New Connected-Vehicle
Experiences"
"U.S. Consumer Vehicle ICT Study: Web-Based Features Continue to Rise"
Entering the Plateau
Wireless Healthcare Asset Management

Analysis By: Vi Shaffer
Definition: Wireless healthcare asset management (WHAM) applications involve the transmission,
storage and analysis of geospatial location information sent in real time from a small wireless locator
device attached to the healthcare asset being tracked. The locator devices communicate via
wireless communications protocols such as RFID, Wi-Fi, ultrasound, infrared and ZigBee.
Position and Adoption Speed Justification: This entry tracks WHAM use for mobile medical
assets, such as intravenous infusion pumps, wheelchairs, pulse oximeters, specialized surgery
tables and equipment, and computers on wheels. Some health systems have also begun applying
wireless tagging/location to stationary medical equipment for more comprehensive inventory and
maintenance management. In more-advanced iterations, WHAM software vendors provide: (1)
inventory/maintenance management support, (2) additional reporting and analysis of equipment
utilization patterns that enhance the fast location and replacement/overstock cost-avoidance
benefits of this application, and (3) the integration of multiple types of communication methods,
e.g., ZigBee and Wi-Fi, into a single application.
For this year's Hype Cycle, Gartner reflects the expansion in the number of applications and how
this has changed the expectations for vendors competing in the WHAM arena by adding the
location- and condition-sensing technologies (LCST) technologies entry.
WHAM has become an increasingly routine component of cost and patient care quality
management. It is on the IT checklist for new hospital construction. With substantial pressure to
reduce hospital costs — on top of patient safety issues and nursing frustrations, this is one of the

more prominent and useful innovations that has emerged. It is one of the earliest in sensor
technologies and is lower cost when combined with infrastructure investments in pervasive hospital
wireless networks. The increasing number of mainstream (not just early adopter) health systems
with documented ROI, and a landscape of more mature and financially viable vendors, is driving
WHAM's fairly smooth move to the mainstream. The total cost of ownership typically includes tags,
batteries, sensors, receivers, software/support, staff training and support, and managerial oversight
to ensure its full potential impact is realized.
Vendors continue to vie for market leadership and push en masse for more widespread adoption,
while expanding their footprints of applications and supported sensor technologies. Additional
rounds of financing, acquisitions, mergers, alliances, as well as boards of directors and CEOs
bringing in healthcare-IT experienced executive leaders to take companies to new levels are
common. This will continue. Gartner research has indicated that healthcare will be one of the lead
industries in gaining high value from LCST.
User Advice: The management necessity to drive much more waste, delay and poor quality out of
healthcare is driving healthcare delivery organizations (HDOs) toward a real-time health system
management model that is highly dependent on real-time infrastructure, information and
intervention abilities. Rather than looking at this quite profound change only incrementally and use
by use, leaders should consider what vendors can best advance with them:
■ Be mindful of the long-term business viability of vendors. CIOs also need to consider what
organization structure, roles, responsibilities, and new/evolved skill sets will be required, and
plan for change.
■ Plan to support an increasing array of real-time location/sensing/presence data, clinical process
monitoring, dashboards and alerts.
■ Because of the confluence of technology and information management needs for the real-time
health system, IT departments should develop closer collaboration or plan for structural
integration with the clinical engineering/biomedical device department. (This is a direction
Gartner first predicted in 2005. Gartner's most recent survey data indicates that about 28% of
U.S. integrated delivery systems [IDSs], for example, now nest clinical engineering within the
office of the CIO, and that this will be true for the majority of medium/large IDSs by 2016.)
■ The jostling of the vendor leader board and ownership will continue for at least the next few
years. Pick a vendor with market traction, and scrutinize for good business sense and financial
viability, as you confirm functionality and track record of delivery/support.
■ Larger hospitals and IDSs should be leveraging this application.
■ Factor WHAM use into network planning.
■ Various approaches are working in the field, and there is no one definitive winner as of now,
although Wi-Fi appears to have the largest installed base, partly because it has a wide range of
other productive uses (and HDO familiarity with the technology). Technologies are also
combined, like Wi-Fi/RFID, RFID/infrared. In this evolving marketplace, there are vendors that
provide applications, and sensor technology specialists who provide and develop innovative
technologies for apps vendors, and others more focused on logistics approaches or analytics

leveraging this real-time data. Hosted and cloud-based services/software as a service (SaaS)
models are also available.
■ Look for vendors that are extending their system value toward equipment inventory
optimization, maintenance management and regulatory compliance, as well as extending into
condition-sensing arenas. Don't limit evaluation to just real-time location, which will happen if
the decision is left to a departmental niche, rather than a hospitalwide or enterprisewide plan.
Business Impact: WHAM helps improve timely accessibility to, and utilization of, mobile
equipment. It should reduce the organization's total cost (including new purchase and rental costs)
for equipment such as infusion pumps and wheelchairs (two of the most commonly tracked assets),
and other biomedical and IT equipment. WHAM location and management can also improve timely
delivery of care (such as in the operating room and in urgent situations), reduce unproductive
clinical and engineering time spent looking for misplaced hospital equipment, reduce equipment
hoarding, and stop equipment from clogging patient hallways. Additionally, it can assist biomedical
equipment technicians in locating equipment for scheduling preventive maintenance, repair and
replacement. The application could also aid in ensuring that equipment moving from patient to
patient has gone through appropriate decontamination, which is an issue evaluated by accrediting
bodies such as The Joint Commission. More experienced vendors are also looking for additional
value for their customers — examining what patterns and inventory optimization techniques the
information generated from WHAM can help develop which tags and technologies to use for what
will continue to evolve. Active tags may be needed for high-value assets. In contrast, "bread
crumbing" with real-time location systems (RTLSs), and other needs, use the same reader data from
passive tags implemented as zonal solutions being read as assets, or as people pass through a
defined point in the facility. RFID is also being combined with GPS to better keep track of assets
located outdoors or in larger geographical areas.
Sample Vendors: Awarepoint; CenTrak; Cerner; Cisco; Ekahau; GE Healthcare; InfoLogix;

Intelligent InSites; McKesson; Sonitor Technologies; Stanley Healthcare; TeleTracking Technologies;
Versus Technology; Vizbee; WaveMark
Recommended Reading: "Four Questions Hospital Administrators Must Ask Before Implementing
RFID Asset Management"
"When to Track IT Assets With RFID or Barcodes"
"Hype Cycle for the Internet of Things, 2012"
Commercial Telematics

Definition: Commercial telematics are fleet- and trucking-segment-targeted automotive information

and communication technologies/services that use embedded technology or mobile and
aftermarket devices. They support networks between commercial vehicles/fleets and IT
applications, and focus on improving productivity, efficiency, profitability, reduced cost (such as
lower insurance premiums) and sustainability objectives.
Position and Adoption Speed Justification: Service and IT vendors, as well as commercial vehicle
manufacturers, continue to improve functionality, back-end integration and business value for
commercial telematics applications, which are leading to the growing penetration of such
applications in the commercial fleet market (aftermarket). Fleet operators' expectations regarding
the functionality of in-vehicle technologies have increased, and companies expect to pay less for
such offerings. Recent vendor offerings increasingly focus on the integration of mobile and
aftermarket devices into the vehicle, and focus application benefits on safety, fuel efficiency and
driver monitoring. Increasing vendor competition will lead to more cost-effective solutions that can
increasingly be utilized by small and midsize fleets. The growing maturity of the technology is likely
to lead to market consolidation, especially among smaller vendors.
User Advice: Communicate and market a clear value proposition: productivity improvements, cost
savings and reduced risks for fleet managers (for example, via remote diagnostics). Establish
partnerships with integrators to develop an effective telematics solution that ties into back-end
logistics and fleet management applications. Explore opportunities to integrate with ERP systems,
leveraging fleet-specific information. Use commercial telematics applications to raise driver
awareness for fuel-efficient, safe and nondistracted driving.
Business Impact: Commercial telematics can provide improved asset management, higher profit
margins and cost avoidance for fleet operators. They represent a market opportunity for service and
technology providers, and enable vehicle manufacturers (for example, truck makers) to offer
improved options and, potentially, increase service revenue. Commercial telematics also offer the
opportunity to lower insurance premiums for fleet operators by tracking vehicles and goods.
Market Penetration: More than 50% of target audience
Maturity: Mature mainstream
Sample Vendors: Atos; Axeda; Qualcomm; SageQuest; Sprint; US Fleet Tracking; Verizon;
WirelessCar
Recommended Reading: "Competitive Landscape: M2M Services in the Automotive Industry"
"nPhase Alliance With Carriers Simplifies Global M2M Deployment"
"In-Vehicle Technologies in Europe Present Opportunities and Challenges for Commercial Vehicle
Manufacturers"
Appendixes

Figure 3. Hype Cycle for the Internet of Things, 2012
expectations Broadband-Connected Televisions

Z-Wave
Wireless Power Complex-Event Processing
Smart Appliances
Enterprise Information Architecture
Big Data Home-Area Network
Smart Fabrics Operational Technology Security
DASH7
Silicon Anode Batteries Telematics
Home Energy Management/ Machine-to-Machine Communication Services
Consumer Energy Management Mesh Networks: Sensor
Internet of Things Operational Technology Platform Convergence
Context Delivery Architecture Enterprise Manufacturing Intelligence
Smart City Framework China Mobile Health Monitoring Commercial Telematics
Intelligent Lamppost
Advanced Metering Wireless Healthcare
IT/OT Integration Asset Management
Infrastructure
Car-to-Infrastructure
Communications Consumer Telematics
Smart Pills 6LoWPAN
802.15.4/ZigBee
Car-to-Car Public Telematics
Communications IPv6
802.11ah RFID for Logistics
and Transportation
Internet of Things Impact on Enterprise Architecture

As of July 2012
Peak of
Technology Trough of Plateau of
Inflated Slope of Enlightenment
Trigger Disillusionment Productivity
Expectations
time
Plateau will be reached in:
obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau

Hype Cycle Phases, Benefit Ratings and Maturity Levels

Table 1. Hype Cycle Phases
Phase Definition
Innovation Trigger A breakthrough, public demonstration, product launch or other event generates significant press and industry interest.
Peak of Inflated Ex- During this phase of overenthusiasm and unrealistic projections, a flurry of well-publicized activity by technology leaders results in some
pectations successes, but more failures, as the technology is pushed to its limits. The only enterprises making money are conference organizers and
magazine publishers.
Trough of Disillusion- Because the technology does not live up to its overinflated expectations, it rapidly becomes unfashionable. Media interest wanes, except
ment for a few cautionary tales.
Slope of Enlighten- Focused experimentation and solid hard work by an increasingly diverse range of organizations lead to a true understanding of the tech-
ment nology's applicability, risks and benefits. Commercial off-the-shelf methodologies and tools ease the development process.
Plateau of Productivity The real-world benefits of the technology are demonstrated and accepted. Tools and methodologies are increasingly stable as they enter
their second and third generations. Growing numbers of organizations feel comfortable with the reduced level of risk; the rapid growth
phase of adoption begins. Approximately 20% of the technology's target audience has adopted or is adopting the technology as it enters
this phase.
Years to Mainstream The time required for the technology to reach the Plateau of Productivity.
Adoption

Table 2. Benefit Ratings
Benefit Rating Definition
Transformational Enables new ways of doing business across industries that will result in major shifts in industry dynamics
High Enables new ways of performing horizontal or vertical processes that will result in significantly increased revenue or cost savings for an enter-
prise
Moderate Provides incremental improvements to established processes that will result in increased revenue or cost savings for an enterprise
Low Slightly improves processes (for example, improved user experience) that will be difficult to translate into increased revenue or cost savings

Table 3. Maturity Levels
Maturity Level Status Products/Vendors
Embryonic ■ In labs ■ None
Emerging ■ Commercialization by vendors ■ First generation

■ Pilots and deployments by industry leaders ■ High price
■ Much customization
Adolescent ■ Maturing technology capabilities and process understanding ■ Second generation

■ Uptake beyond early adopters ■ Less customization
Early mainstream ■ Proven technology ■ Third generation

■ Vendors, technology and adoption rapidly evolving ■ More out of box
■ Methodologies
Mature mainstream ■ Robust technology ■ Several dominant vendors

■ Not much evolution in vendors or technology
Legacy ■ Not appropriate for new developments ■ Maintenance revenue focus

■ Cost of migration constrains replacement
Obsolete ■ Rarely used ■ Used/resale market only

Recommended Reading
Some documents may not be available as part of your current Gartner subscription.
"Understanding Gartner's Hype Cycles"
"Innovation Insight: The 'Internet of Everything' Innovation Will Transform Business"
"The Information of Things: Why Big Data Will Drive the Value in the Internet of Things"
"The Internet of Things Is Moving to the Mainstream"
More on This Topic

This is part of an in-depth collection of research. See the collection:
■ Gartner's Hype Cycle Special Report for 2013

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Hype Cycle for the Internet of Things, 2013

Analyst(s): Hung LeHong

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Table 1. Hype Cycle Phases.................................................................................................................99

Figure 1. Hype Cycle for the Internet of Things, 2013............................................................................. 9

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"Hype Cycle for Smart Grid Technologies, 2013"

"Hype Cycle for Smart City Technologies and Solutions, 2013"

"Hype Cycle for Wireless Networking Infrastructure, 2013"

"Hype Cycle for Operational Technology, 2013"

"Hype Cycle for Sustainability, 2013"

"Hype Cycle for Telemedicine, 2013"

"Hype Cycle for Embedded Software and Systems, 2013"

The Hype Cycle

The Internet of Things is the network of physical objects that

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Enterprise Perspective on the Internet of Things

Public/Municipality Perspective on the Internet of Things

Consumer Perspective on the Internet of Things

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Technology Perspective on the Internet of Things

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Interpreting the Hype Cycle for the Internet of Things

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New Additions and Changes to the Hype Cycle

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Figure 1. Hype Cycle for the Internet of Things, 2013

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The Priority Matrix

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Figure 2. Priority Matrix for the Internet of Things, 2013

benefit years to mainstream adoption

less than 2 years 2 to 5 years 5 to 10 years more than 10 years

transformational Advanced Metering Autonomous Vehicles Internet of Things

high RF MCU 6LoWPAN 802.11ah Data Science

Source: Gartner (July 2013)

Off the Hype Cycle

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The key applications for smart dust include:

■ Environmental protection (identification and monitoring of pollution).

As a complete sensor/communication system integrated into a cubic millimeter package is still a

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Benefit Rating: Transformational

Market Penetration: Less than 1% of target audience