The IoT Winter

Florian Kemmerling, Head of IoT, Global Digital Solutions (L.lct) at Schenker Ag

“Over-hyping leads to disappointment" — this was the alarming message by Roger Schank and Marvin Minsky at the American Association of Artificial Intelligence, back to the 1980s. Indeed, all the splendid ideas about AI became hot air because the technology wasn't there. What followed, came into history books as AI Winter: decreasing interest, cutting funds, even partly extinction of the AI-companies. Only in the 2010s we could speak about the end of the AI Winter - with growing interest from scientists, industries, and society. By keeping optimism and minds open, we achieved more and more success in the AI field.

By all optimism: new winter is coming. The IoT winter. But why? The technology is here. According to McKinsey, the connected power of IoT offers a potential economic impact of $4 trillion to $11 trillion a year in 2025.

Working for a worldwide active Big Logistics provides you with insights and meta-perspective. You see global trends and issues. At first glance: we have finally arrived in the future. The all-binding connecting power of 5G is emerging. Cloud and edge computing are optimizing the data flows. Smaller, faster, and better smart devices allow new compact systems. All this enables building new business models and tapping into new market areas. And all the valuable data can be used for strategic needs, AI training, predictive analytics. The IoT combines technological advancements and provides the perfect supply chain visibility.

What are we waiting for?

• Mindsets.
• Let me explain the global issue.
• A shipment process in transport logistic is mostly linear:

In our Digital Age, every stakeholder benefits from IoT powered technologies. A smart warehouse has its data-driven systems. A smart port market utilizes IoT - e.g., for digitalized cranes and Unmanned Ground Vehicles. Container loaded ships own smart devices to navigate across the sea. They all are data owners. They all produce in real-time and send relevant data (the fuel of XXIst century). The problem is: they usually send the data just to the asset owners.

The interoperability between IoT systems is critical. Yet this interoperability is still not given. We have a constellation of focused IoT systems, working independently. They are smart just within. For the first blush: why would a ship need data from a truck delivering to a seaport? The specific IoT generated data might be irrelevant for these various asset owners. Not for Logistics as a Data Owner. Logistics should have an overview, even more: Logistics as an overarching Data Provider is crucial for the whole system. Imagine steering and using all the data from various digital touchpoints, with access control, within the decentre distributed system. Trust issue would be solved; we could apply predictive analytics, change Supply Chain strategies, and build new markets.

Logistic as a data-driven business is the only right way to enhance the Supply Chain. And, every stakeholder (as above) would benefit from data ownership by logistics - for better management, for effective shipment consolidation, for efficiency in all aspects of Supply Chain. This approach could pave the way for Factories 4.0, which requires overall transparency and frictionless data flows.

Still, this global mindset is not here yet. All stakeholders are working in a stand-alone mode. It's IoT Winter.

I send you season greetings, and let's hope, IoT Spring will follow soon.

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