The Internet of Things (IoT) is increasingly used to transform data into knowledge. Companies are using it to create new offers for their clients and to change their strategies
Organized by the Portuguese Association for the Development of Communications (APDC), the conference on “How is IoT Changing Business” was recently held at Myriad Crystal Centre, in Parque das Nações, Lisbon, with the participation of leaders in the IT, energy, bank, insurance and health fields. Moderated by Rogério Carapuça, president of APDC, this Digital Business Breakfast has shown that possibilities are endless and that this is an evolutionary process in which change is constant.
This universe comprises, among others, vehicles, traffic lights, appliances, surveillance cameras, environmental conditions detectors, motion detectors and medical devices. These are just a few examples of what exists today in the IoT universe. The purpose of such devices and of the collection of data resulting from their interaction in the Internet is their processing in order, for example, to avoid traffic jams, to anticipate, in due time, the occurrence of a fatal illness in a patient or an incident in a building, as well as to use energy more efficiently.
In the future, every business will surely be different. IoT is being combined with multiple technologies to transform data into knowledge. Companies use it to change strategies and business models, as well as to create new offers for their clients. It is an evolutionary process in which experimenting is a constant and challenges and unknowns are immense.
The collection and availability of such a large volume of data has enabled, for example, the emergence of new companies with a strictly technological matrix in the energy sector. According to Carlos Costa Pina, Galp's director, “Galp's main challenge is not to be overtaken by the transformations currently taking place and to maintain its client base.”
EXPERIMENTING IS KEY
The conference's keynote speaker, Miguel Lopes, from OutSystems, said there is no limit to the imagination regarding what can be done with IoT. “A simple car device can lead to the creation of a new business for the automotive industry or the insurance sector,” he exemplified.
But for this to happen it is critical to collect data, interpret it and build a project based on this information. “This is not something that can be achieved immediately,” said the expert, adding that it is necessary to create the project in a concerted way, in stages. “We have to ponder this project and live under continuous experimenting. This approach is fundamental to the positive evolution of any business model,” said Miguel Lopes. Nevertheless, the collaboration of all players involved is also vital to complete the project, defended Francisco Barbeira, BPI’s executive director. After all, as Rogério Carapuça points out, “there are more Internet connections today than people on the surface of the Earth.” That is to say there is an infinite number of data being constantly produced, which can be best used with the collaboration of all stakeholders.
According to Francisco Barbeira, banks are satisfied with the volume and quality of the data they collect from their clients when they withdraw money at ATMs, pay by card, call or go to a counter. But “there is still room to improve this relationship.” In the future, identity verification may be done by voice, while financial advice, currently restricted to certain clients, may be broadened and access to credit will require less personal exposure than it does today. But IoT’s scope is much larger than these examples reveal.
PREVENTING INSTEAD OF TREATING
Rui Raposo, director of José de Mello Saúde, showed that a simple morning teeth brushing can contribute – if the brush has a suitable sensor – to assess on a daily basis a person’s health. Raposo also cited the example of Hospital de Logroño, Spain, which has 70 patients monitored at home, connected to a contact centre. “This allows real-time assessment of temperature, weight, blood pressure, as well as the collection of other information,” said Rui Raposo. For him, IoT will be essential in the future for keeping more people out of the hospital, changing from the current paradigm of disease treatment to that of prevention.
Technologies applied to automobiles also help preventing accidents and their severity. Eduardo Romano, Chief Information Officer (CIO) of Liberty Seguros, said that advances such as this will make insurance companies obsolete. With a growing knowledge of both its clients and possible risks, the sector will face the extinction of some non-compulsory insurance, which will be replaced by efficient technological solutions. All that will be left will be compulsory insurance and natural events.
Q&A
Rogério Carapuça, president of APDC
What are the advantages brought about by the Internet of Things? “Today there are more connections to the Internet than people on Earth, so it is possible to have detectors and other devices placed in the most diverse locations and in most situations. These objects will provide us with real-time information that may be relevant to business. There are, for example, shoes with detectors that show the speed at which people run and the paths they take in the city. There are also detectors on aircraft engines, locomotives, automobiles and iPhones, to assess their performance.”
Are there risks? “It goes without saying that everything we do is being increasingly monitored by devices. This means people have to be more and more cautious about their privacy and the way their digital footprint goes deeper into everything they do.”
Carlos Costa Pina, Galp's director
How is the Internet of Things changing Galp? “The main challenges of the oil and gas industry are decarbonisation, distributed generation and digitisation. When we talk about the Internet of Things, we are talking about the latter. We either win this challenge or we are defeated. And what we are doing at Galp is working to succeed. As regards refining, we use detectors for predictive maintenance. In terms of business to business (b2b) and business to consumer (b2c), we decided to acquire Podo, a 100% technological company in Spain that markets electricity in the b2c area. The business is evolving positively and could be scalable also to b2b, gas and even to an Iberian platform.”
What are the main advantages to business? “The main advantage is to be able to continue in business. Our preview of how the world of energy and economy will be in 10 years' time includes a dematerialised relationship with the client, essentially on an electronic and digital level. Therefore, companies like Galp can only be in this business if serving clients with its brand, maintaining a direct relationship with them and preserving its image, performance, credibility and its clients’ loyalty. Otherwise, someone else will do all that and Galp will have to offer a white-label energy product. This is not what we want, but rather to continue serving clients by preserving a direct and sustainable relationship with them. That is why digitisation, along with its opportunities, is a strategic priority for Galp.”
