Whats Netflix got to do with socks?

Developing meaningful Internet of Things use-cases can be tricky. But the doors
to more customer benefits and new business models are open to those who get
things done.
Have you ever stood in a public toilet with wet hands and an empty towel dispenser? Annoying, isnt it?
A clear need but no satisfactory solution - so far. Such unpleasant experience starts to belong to the
past.

Intelligent soap and hand towel dispensers report their filling levels and warn early enough before
nothing remains left. Digitization and the Internet of Things (IoT) make it possible: dispensers in public
lavatories as well as companies will become smart. They ensure refilling is aligned with the current filling
level. Service personnel now has an alternative to pure guesswork and only comes around when it is
necessary.

The Austrian hygiene specialist Hagleitner has developed such "chatty" dispensers and offers the related
software. This allows accessing the relevant information on any device (smartphone, tablet, desktop,
etc.) and even align soap and hand towel consumption with an ERP-system. The dispensers are never
empty, the consumers of sanitation are satisfied and optimized refill logistics save costs. A nice example
of a successful IoT use-case".

Up to 212 Billion Smart Things in 2020

Unfortunately, IoT use-cases are not always that obvious. Management, IT, Product Development,
Customer Service Department and many others hear of Digitization. An explosion-like increase of
devices is predicted. Forecasts range from 30 over 50 to even 212 billion "things" worldwide by 2020 or
by 2025. A thing means an intelligent device or sensor. Besides the dispenser there are lots of colorful
examples. Netflix, for instance, helps when you fall asleep in front of your TV: Smart socks notice your
nodding and stop the video. In New York and Dubai smart rubbish bins report when they are full or their
content stinks. And smart dog collars warn when your beloved pet leaves the garden without
permission.

IoT is not a dream of the future. IoT is here. Market researcher Gartner assumes that in 2020 more than
50% of the main business processes will be linked to IoT in any way. Executives who doubt this may
harm their company. It's not a question of whether to appreciate IoT or not. There is no way around it in
order to remain competitive.

Viable Use-Cases Are Key

How to make the most out of Digitization? Creating an economically viable IoT use-case is a challenge to
companies and their executives. Finally, a simple "I will go digital too" is not enough. IoT cannot be an
end in itself. Technology has to provide benefit to someone and as usual, the customer is a good start.
Where are customer requirements not met? What bothers customers? How can their resources (time,
cost, etc.) be saved?

Hagleitner Hygiene shows an elegant solution to this challenge. Firstly, the needs of consumers of public
rest rooms are satisfied (soap and towels never run out). This is a clear benefit for Hagleitners clients
such as hotels, stadiums, shopping centers, etc. Hagleitners clients not only gain more satisfied
consumers, but can save money by means of efficient refill logistics and optimized stockkeeping. All this
together provides Hagleitner with a competitive advantage, that clients are willing to pay for.

Knowing Something Is Broken Before It Gets Broken

Imagine you know that something is broken before it gets broken: Towel dispensers make use of paper,
a material that emits fine dust. If the drive roll of a towel dispenser becomes dusty, its power
consumption increases. If a certain threshold is exceeded, a service employee is ordered to the site. The
right drive roll can be cleaned at the right time. A breakdown of the dispenser as well as an expensive
repair become obsolete thanks to predictive maintenance. Collecting data on previous consumption
enables accurate predictions for future material consumption and wear. Re-orders become more precise
and potential disappearance becomes much more obvious.
Even Door Knobs Become Smart

For the future, a smart door knob is under development. There will be no way out of a toilette before
the hands are disinfected. This can be beneficial in hospitals as well as in food processing operations.
With the data obtained and the proof that hands were definitively disinfected, compliance to hygienic
standards can be significantly simplified and documented.

In the use-cases mentioned above, the focus was on selling intelligent "things" (dispensers or door
knobs including sensors). However, IoT goes much further and changes business models common in the
IT sector. Many SaaS (Software as a Service) vendors prefer recurring revenue and ongoing customer
loyalty over a one-time sale of a software package. Microsofts Office 356 for instance is offered in such
a subscription. Printers can be paid per page printed out without actually purchasing them. As a result,
more and more companies are in transition from producers to service providers; Pay-per-use instead of
capital lockup, initial cost and maintenance cost. IoT makes it possible.

Hagleitner Hygiene is once again taken as an example: the consumer stream can be measured by means
of additional sensors in the washroom. This allows a pay-per-use model. The operator of a shopping
center, for example, thus has well run lavatories and pays according to the degree of utilization and the
number of consumers. Services therefore become more and more important, even in the automotive
industry. One day it will no longer be about the car as a possession and status symbol, which is owned,
but about providing mobility as simple, safe, stress-free and comfortable as possible.

Just having an idea for a viable IoT use case is not enough. It needs effective execution. Helpful for
implementing at Hagleitner was that IT and R&D were connected strongly and were part of the same
division. 130 scenarios were jointly discussed, prototypes were developed and installations were tested
at the company's own headquarters. Finally, long-standing customers were involved, the products were
further adapted and a roll-out started step by step.

Digitization and IoT provide lots of opportunities to all kinds of companies. But implementing use cases
can be tricky. Often

a) the necessary skills are missing within the company,

b) IoT is virgin soil, even for many tech companies,
c) common industry standards are missing, and
d) the first IoT initiatives are often simply copying competitors instead of finding innovative
solutions.

In a nutshell: It is time for companies to think and act digital whether they like it or not.

This article was originally published in Compuertwelt 06/2016 in German language.

Prof. Dr. Oliver Loisel is Co-founder & Managing Partner at ATLAS Tech, the premiere partner in the
creation, implementation, and operation of Internet of Things projects & Professor at MODUL University
Dubai, conducting research on digitization and the Internet of Things.

www.linkedin.com/in/oliverloisel-atlas/

www.atlastech.de

www.modul.ac.ae