Smart Systems and the Future of Smart Products

MKTG450-Product InnovationPortland State University

Winter 2015

UVAX CONCEPTS S.L.

Abdullah Alkhabbaz, Nathan Flores, Michael Hanacek, Affouete Kouakou, Hannah Six and Tanner

Smith

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Contents1.0 Abstract2.0 Introduction and Framework

2.1 Defining what is Smart3.0 Literature Review

3.1 Internet of things3.2 Smart Cities

3.2.1 Present need for Smart Cities3.2.2 Smart Systems within Smart Cities3.2.3 Smart Grids3.2.4 Implications of a Smart City3.2.5 The future of Smart Cities

3.3 Smart Infrastructure3.4 Smart Home

3.4.1 Smart Home adoption3.4.2 Technology inside the Home3.4.3 Transmission Platform and Associated Smart Home Challenges3.4.4 Strategic Road Map of Smart Home3.4.5 Financial Risk and Challenges for the Smart Home

3.5 Smart Products3.5.1 Products and Services3.5.2 Smart Phones3.5.3 Smart Watches3.5.4 Smart Products for Sports

3.6 Smart Sensors3.6.1 Smart Sensors Defined3.6.2 Microcontrollers3.6.3 Smart Sensor Design3.6.4 HART Protocol3.6.5 Sensor Market3.6.6 Sensor Trend3.6.7 Implications of Smart Sensors

3.7 Security Approaches3.8 Socioeconomic Implications

4.0 Conceptual Model4.1 Smart Model Methodology4.2 Smart Model Design

5.0 Case Studies5.1 Pacific Northwest Smart Grid Demonstration Project Case

5.1.1 Research Question Application5.1.2 Case Model Smart Grid Evaluation

5.2 Smart Classroom5.2.1 Smart Model Evaluation of the Smart Classroom5.2.2 Effect of Smart Classrooms on the Learning Environment

6.0 Implications of Smart Model on New Product Development6.1 Smart Model Evaluation on New Product Development

7.0 Future Implications8.0 References9.0 Appendix

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1.0 AbstractA carefully networked system of smart sensors has incredible potential in improving

product development. That is, when considering products and services (or a combination of the two) there is a new paradigm. Products are becoming increasingly integrated into systems where smart sensors are able to communicate. This type of integration is guiding product development.

There is a broad spectrum of levels that smart technology can be applied to: systems, cities, infrastructure, home, and product levels. These different levels are essentially comprised of an internet of the previous subcomponent (for example, smart homes are made up of a series of products; smart cities are assembled from a network of homes).

It is important to truly understand the current trend at all levels. First, it is paramount to realize the importance of the Internet of Things (IoT) and the way that products are connected. After observing that, then it is possible to move on to the way that cities are connected. Infrastructures and smart sensors at the home level and product level are next in sequence; these highly correlated categories are aimed at strengthening product value at the typical consumer level. Then, it is imperative to have a grasp of the sensors themselves before seeking out the way that this spectrum of interconnectedness will impacts economies.

Upon a further understanding of the previously mentioned concepts, a framework for assessing current methods can be put to use. This framework can then be applied to specific case studies such as the case of Pacific Northwest Smart Grid and the way that Smart Classrooms are used.

The Smart Grid case study, given a weighted score of 83 out of 100, scored relatively high as compared to the Smart Classroom case study, which scored a mere 75.

Findings in this study imply that companies will become increasingly innovative in creating an integrated network of products; product development will have a whole new paradigm to consider: the interconnected use of their products in an efficient network.

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2.0 Introduction and FrameworkSmart systems are evolving; from the design of sensors to the products that connectedly

create smart systems. Technological innovation is a driving force of smart industries. To understand the complexities of smart sensors, systems and cities, this report will analyze the present and future implications of smart products and smart system technology. Additionally, the report will provide insight and recommendations as to the most efficient development of smart systems and products. To understand the implications of smart systems and products an intensive literature review took place of smart system progression, outlined with taxonomies, and concluded with the interrelated implications. Three case studies were used to analyze what makes an efficient and effective smart system, smart service and smart city. A case study on smart classrooms analyzes smart system application. Smart Grid and the future of smart water iinfrastructure are analyzed in relation to the smart city. Findings within the literature reviews and the case studies then lead to final recommendations and the future implications of smart systems and products.

To bring the present and future implications of the future of smart systems and products to the forefront of our research an in depth framework was necessary. This framework is an extensive look into what creates a successful smart product, service, system or city. The literature review is an exploratory look at what smart technology consists of currently and a brief history of how it evolved to be where it is now. Figure 1 below is the baseline of our research streams. In order to examine how smart systems and products function, clear consensus of definitions must be set to guide research to the objective of strategically understanding the future evolution of smart technology.

2.1 Defining what is Smart

Table 1: The Spectrum of Smart

The Spectrum of SmartFacet of Smart Technology

Defined

Smart System The uses of sensing elements to analyze incoming data, perform current actions, and anticipate future events.

Smart City Integrated smart technological approach to sustainability, citizen well-being and economic development. CITE?

Smart Infrastructure Development of smart sensors, products, and systems for increased efficiency in the current and future built environment.

Smart Home Level systems are networks of smart connected devices and appliances.

Smart Product A physical product that creates a digital representation of a data stream and applies it to consumer function.

Smart Sensor A sensing element embedded on silicon with a microcontroller that allows programmable and refined data acquisition.

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3.0 Literature ReviewThe following literature review will encompass studies of the internet of things (IoT),

smart cities, smart infrastructure, smart homes, smart products and smart sensors, respectively. Integration of the literature review will guide the critical evaluation model we developed to divulge what constitutes a valuable smart system or smart product.

Research questions were identified to lead further knowledge streams consisting of:

What classifies a high quality smart system?o What are market trends?o What is the relationship with smart sensors and cities?

What classifies a high quality smart service?o What are market trends?o What is the relationship with smart sensors and cities?

3.1 The Internet of ThingsThe internet of things is an important step in the evolution to complex smart systems, the

progression of smart technology will follow a systematic progressive approach of built interconnected smart objects. Each step is constructed based on consumer acceptance and complex systematic connectivity. Firms will work their way from sensors to the incremental adoption of smart cities, considering roadblocks of security, privacy and other unforeseeable are cleared. Value increases with connectivity of devices creating smart cities and homes. Following research streams lead us toward examining the current advances in smart technology as well as the predictive future for smart systems.

Figure 1: Progression of smart technology’s value.

Movement toward smart product innovation has intensified the impact the internet of things has imposed on strategic management. Internet of things casts a wide net, integrating smart technologies to create a competitive advantage previously untapped. Businesses are forced to transition and absorb a new way to invoke competitive advantage through progressive smart innovation.

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The internet of things is key in that it encompasses an interconnected web of products contributing to the value of smart products thus smart systems. IOT increases in efficiency allowing consumers to take time back into their lives while decreasing wasteful consumption in many cases.(Porter, 2014) Connectivity is the bonding agent that gives smart products and systems their edge, the ability to sift through multiple bodies of data, transfer data between products and proceed in informed action while continuously assessing future needs. The internet of things hosts immense power yet the interconnectivity element is what gives smart systems leverage and hosts threats to privacy and security.

3.2 Smart CitiesA Smart city is a city that uses digital technologies to enhance its citizen’s wellbeing and

performance through reductions in costs and waste streams while sustaining increases in productivity and active engagement of citizens. Forbes has a smart city narrowed down to a city containing:

-Smart Education and Governance -Smart Buildings

-Smart Healthcare -Smart Technology

-Smart Citizens -Smart Mobility

-Smart Energy -Smart Infrastructures

A smart city must contain at least five of these qualities to be considered a smart city and these qualities must be interconnected. Digital technologies must include smart systems, this can range from smart homes, smart utilities, smart grids, or anything that can obtain data, process it, and emit readable results (Singh). A smart city must encompass the “internet of things”, everyday objects made smart i.e. able to connect to the network and capable of sending and receiving data (Singh). These systems must be able to communicate with each other in some way, whether it is via the smart citizen or the smart government, these systems must produce big data in order to be effective.

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Singh, Sarwant, (2014), “Smart Cities – A $1.5 Trillion Market Opportunity”, (accessed on March 10, 2015), [available at http://www.forbes.com/sites/sarwantsingh/2014/06/19/smart-cities-a-1-5-trillion-market-opportunity/]

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3.2.1 Present Need for Smart Cities

As cities grow there becomes a need to adapt to the physical population increases. To adapt to this increase, cities must naturally advance technologically and improve infrastructure efficiently. This is where the need for a smart city comes in, a smart city will be able to take an old city like, New York City and allow for it to function ten times better than its current state (Kotkin). A smart city is a sensor driven, efficiency machine. It will use smart sensors to detect major issues such as traffic congestion and more easily solve the problems of traffic for the citizens. It will allow power stations to be able to detect when a neighborhood is not using as much power as it is supplied and be able to redirect that excess power to other areas of need to prevent blackouts All of these are current problems that plague American cities today and they can be severely improved if cities were to become “smarter”.

3.2.2 Smart systems within smart cities

A smart city contains the following systems: smart education and governance, smart Healthcare, smart citizen, smart energy, smart building, smart technology, smart mobility and smart infrastructures. Smart education is something that is becoming more relevant in classrooms today. Teachers use technologies such as tablets and computers that are connected to the schools network, to more easily track a student’s progress and potentially identify where the student needs more help. Smart technologies in the classroom, allow teachers to not only see what a child is not understanding, but also potentially allow the teacher to understand why they are not understanding something. This is a huge advantage of a smart city as compared to a regular city.

The next step to a smart city is smart energy. Smart energy is the management and distribution of power in an efficient way.

Smart metering is the tool in which smart energy becomes “smart”. A smart meter is a device that would take the place of

the current electricity meters, these meters would be data driven devices with the capability to transmit data logs of the usage every one to four hours (ISRAELSOHN). Smart meters will allow electric companies to develop new services to better suit customers’ needs and allow customers to opt into different plans based on their energy usage and there areas peak usage demand. This also gives customers instant updates about their bill and energy usage and allowing better outage information to their own crews.

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“Smart Meters And How They Work”,(2015), (Accessed on March 15,2015), [ Avaliable at http://switchon.vic.gov.au/bills-pricing-and-meters/smart-meters-and-how-they-work]

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Smart mobility is simply getting transportation to be more efficient. There are six principles in smart mobility location efficiency, reliable mobility, health and safety, environment stewardship, social equity and robust economy. For a smart city to have smart mobility it must have a public transportation system that is efficient and is easily accessible and must use the land efficiently and safely. The goal of this is to reduce congestion and provide a smart service for the cities citizens. Other measures to increase smart mobility in a city are producing more efficient cars that get better gas mileage or do not need gas. Improving traffic conditions using data driven sensors that can sense where congestion is going to be and reroutes drivers to better routes is another aspect of smart mobility. The idea of having smart mobility in a city is to create a system that has open software, so that all systems are on the same page.

Adoption of smart mobility naturally leads to the adoption of smart infrastructure. Smart sensors are imbedded within the infrastructure of cities to help detect potential problems when they arise and gather data on these buildings to help better predict when and where these issues may occur. The goal of smart infrastructure is again to be more efficient, to incorporate smart sensors into buildings, to help maintain them and help reduce waste at the structures end of life.

Smart mobility leads to smart government, which is usually the primary sponsor of smart mobility. But, smart government has many more responsibilities than just investment in the future of transportation. A smart government is one that is actively involved with its citizens and its citizens are actively involved in it. A smart government will use big data to help solve both

social problems and socioeconomic problems (Mellouli). They should promote open data sources, as well as easily reusable formats. They can do this by creating new smart services for their citizens that better their own lives, and influencing citizens to be actively involved in these new services. A smart government is one that must influence its citizens to trust it and want to be a part of it, allowing citizens to be a part of the process

and influencing the things that affect society (Mellouli),. To do this a smart government must allow its citizens and elected officials to work together to push for smart change.

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“Smart Mobility 2030”,(2014), ( Accessed on March 7,2015), [ Available at http://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/managing-traffic-and-congestion/intelligent-transport-systems/SmartMobility2030.html]

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Citizens will need better medical care than we can currently offer. This is where smart medicine comes into play. Smart medicine is the movement from an automobile assembly line type atmosphere to a patient centered atmosphere, where hospital stats are not about money spent or days spent in the hospital, but about lives saved and people helped (Murray). One of the

biggest things that will allow smart medicine to become a reality is the increased use of smart cards. Smart cards are one centralized card that has a read/writeable chip in it that can allow doctors to store patient information on their own individual card (Horowitz). This makes a hospital more efficient, saving money and resources on human resource department personal, while giving the consumer the ability to be able to carry their information from provider to provider without having to do the massive amounts of paperwork that is required now. This card can also be used as a driver’s license, insurance card, even a debit card for a banking institution.

Smart grids

A smart grid is essentially is a network that supplies electricity and uses digital technology’s or smart sensors to detect and react to changes in usage at the home level. It does this through the use of real time smart meters. These meters allow there to be a two way network between your home or business and the power company. A smart city uses a variety of different smart sensors to create an interconnected environment.

One of the most common smart systems in a city will be a smart meter. This is a meter that will allow the company’s to look at the hard data of each household's electricity usage, while allowing the consumer to view the same usage numbers and be able to potentially gauged on whether plan they would like. They will also be able to identify the household and neighborhoods electric need and potentially reroute some of the power to other areas of need,

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“Smart Card”,(2014), ( Accessed on February 20, 2015), [ Available at http://www.andreonicards.com/contactcards.htm]

“US Power Grid vs Smart Grid”, (2009), ( Accessed on march 7, 2015), [ Available at http://www.slideshare.net/jrw5159/us-power-grid-vs-smart-grid-2916300]

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helping avoid blackouts and allowing a quicker response time to outages that might occur. Smart meters are going to be the biggest smart system in a smart city (“Smart Meters and How They Work”). Going along with smart meters is smart outlets. These individual outlets are interconnected with the smart meters and can communicate with the meter to reduce its power load when not in use.

One of the more major smart systems is those smart sensors placed throughout the grid of both electricity and natural gas. These systems sole function is to ensure that the grid is functioning correctly and efficiently. These smart systems will allow crews to better identify problems before they happen and very quickly after they happen, to reduce down time for these grids.

There are a variety of smart systems located in a city that are designed to help the people that live in that city. But one does so in a more life or death way and that is the new UV3 android robot. This robot is placed in operating rooms in hospitals before a surgery and it scans the environment and kills all major bacteria and viruses that can be lurking on the surfaces of the room with UV3 light. This is not an automated system yet because of the fact that these UV3 rays are extremely dangerous to humans. So, this android must be turned on after the room is empty (Augenbraun).

Another main smart product system that will be placed throughout the smart city is smart meter and smart sensors placed throughout the transmission, production and distribution systems located on the power grid. These sensors will act as a two way communicator between the smart meter and the power base. This allows for variable pricing scales in electricity usage and the ability to see your power usage in almost real time. This can both save the consumer money by being for efficient and this can help reduce the power load the grid takes and avoid and or identify the potential faults along the power grid lines in peak usage hours. This same system can be applied to most utility companies whether it be water or gas lines the model is essentially the same. Place smart sensors along the lines and at the consumers point of usage and monitor and collect the usage information and allow the consumer to see there usage in real time and apply a price to that usage to provide an incentive to be more efficient.

3.2.4 Implications of a Smart City

A smart city will not only be smart, but be smart about its waste output, energy usage, social welfare, and economic conditions. It is an interconnect city using the “internet of things”. The implications for a city like this are huge, its citizens will be able to better communicate with not only themselves, but with their elected officials as well. A smart city at its core needs to be focused on being efficient to provide better services and quality of life to its citizens. Better quality of life can be achieved by better communication between citizens, whether it be from government services to healthcare. To do this a smart city needs to use the smart sensors that are placed in the city via products that create a network of smart systems that tie into a smart city and all of these systems provide the end user with some sort of data that in turn needs to be applied and this is where predictive systems is a huge component of a smart city. A predictive system is essentially data recorded by the products and sensors that has been applied to certain mathematical algorithms and then applied to a predictive model. Some of these predictive models that would apply at a city level would be traffic predictive systems, Power grid predictive

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systems, and also various other predictive systems that can be applied at a social level. Creating a better lifestyle for people living in the city is the key component of a smart city.

Having a smart city also has some potential risks that will need to be combated in order for the city to survive, advance, and grow in the future. Some of these risks need to be identified earlier in the smart city’s life to be able to combat them. These risks included cyber security, economic hardship for middle to lower class, cost, and government regulation. The cyber security risk is the greatest threat of all the risks because it not only can bring down systems and negatively affect citizen’s lives, it is hard to combat. It is hard to combat because of all the different aspects of cyber securities. The threat from hackers hacking into an interconnected city, which is what a smart city will be, is a real possibility. With this threat cities must have their own teams to combat this issue. Economic hardships will occur with the implementation of smart cities because smart city’s systems will render some jobs obsolete. This economic hardship will happen for those whose skill set are no longer needed and it will continue until the education gap is bridged in the city. A smart city will be an expensive city with a lot of cost. With this cost will come some sort of government funding, which will allow for some government regulation that can possible hinder the city’s economy or systems due to this additional oversight of the city.

Smart City Analysis

Findings Trends

Financial feasibility

Mature Market moved away from research funding.(Robinson, 2014)

Smart cities deliver value through cost savings & forewarning of potential failures, thus speeding up the payback period.

North America & EU by governments and trend toward firms taking on costs as own operational budgets (Robinson, 2014)

Opportunities Emerging markets supporting rapid urban growth (Robinson, 2014)

What smart city connectivity means is city specific.(Robinson, 2014)

Targeted resource efficiency. (EX: energy, water)

Targeting consumptive/ problematic

The Future of Smart Cities

With the rise of smart city’s you will see a rise in the education levels of these cities and you will see new technologies emerge in these cities. These technologies can range from city to city, but almost all smart cities will include the “internet of things” (Ratekin). A smart grid, smart mobility and smart education, the rest may very between cities but a smart city could not function without these. While the smart grid of comparable cities may differ in the likes of one city relies on solar power and another relies on nuclear power each city will still have similar sensors placed throughout the grid that send out transactive signals to all those who are

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connected. Smart mobility may be the same but you will see more of the population using more efficient means of transportation whether it is from more efficient carbon fueled vehicles or electric cars to mass public transportation. Most smart cities will include some sort of mass public transportation system ranging from electric busses to bullet trains this will play a major part in the future of the smart city (Ratekin).

Smart education will be a more interconnect experience among students, teachers and parents. Smart education is essentially allowing technology smart systems into the classrooms via computers, tablets, smart boards, smart cards, smart phone applications that are monitored by teachers and parents in a way that is useful to the education of the child. All of this lead to one thing and that the idea of the “internet of things “and that everything in the future smart city will be interconnected. Thing like your coffee pot will be able to communicate with your smart phone that will be able to communicate with your doctor and let them know your daily caffeine intake this is just one of the millions of possible examples of the future of the smart city.

3.3 Smart InfrastructureSmart infrastructure is the hardware initiating efficient management of increasingly connected networks. Smart Infrastructure is the development of platforms to support the connectivity of smart cities. Adoption of smart infrastructure is the supporting agent in the evolution of ecosystems of smart products and services toward large scale application. It is the future of the IoT. Smart systems are among us, further progression lies in smart infrastructure adoption in an evolutionary manner (Elzinga). The International Energy Agency published a study on technology roadmaping of smart grids, the journal noted the evolutionary manner of smart infrastructure; adoption of smart infrastructure will not be a “one-time event” as Elzinga describes. To exemplify this in the context of smart grid infrastructure a figure was compiled showing its progression over time. Figure 2 below shows the future of smart infrastructure incorporating additional connectivity and energy storage capacity. Both of these factors are components that will be visible in a multitude of smart infrastructure sectors not exclusively smart grid application.

Figure 2: Smarter electricity systems

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Elzinga, David (2011)“Technology Roadmap: Smart Grids” International Energy Agency

3.4 Smart HomesThe evolution of connected home has been moving very fast in the past decade. It has

been observed that the routine of traditional use of home appliances, home entertainment, and home gadgets is changing at a rate beyond expectation with the increase of more innovative technology. This section will focus on the rapid evolution of connected home concepts including the analysis of different technologies and the risk factor elements involved in the venture of smart home adoption.

The mission of a smart home is primarily to make people’ lives easy but most prominently for those who are technology savvy and those who believe that an automated home is the new way of living. The average American household has at least one or two smart devices currently that they believe are indispensable for their daily activities. The market of smart devices has become one of the biggest markets in the history of the home improvement and leisure. Yet, questions arise in the minds of consumers and innovators alike, how much is the consumer educated about smart homes and why is a smart

home system important in their life. These are the kind of questions that any consumer wonders about before determining whether or not a smart home system is the new revolutionary lifestyle to embrace. The list of home devices is long, current innovations include but not limited to smart rice cookers, coffee makers, door locks, showers, floors, baby monitors, security devices, thermometers etc. The Smart home is a important platform in the smart technology progression, it is the connective element of the internet of things to large scale application.

3.4.1 Smart Home Adoption

Consumers have a wide-range yet common way of defining what a smart home is. Some use the term “the connected” instead of the smart home. However, often innovators refer to the Internet of Things to define a smart home, linking the idea of a smart home to the increased availability of devices to be connected within the home from any given location.  Ultimately, a smart home is the vision of home appliances and numerous other gadgets becoming smarter by means of being able to communicate with each other in order to operate without direct in person command. For example, the coffee maker that gets your coffee ready in the morning before you get out of bed, a door that will unlock itself when it senses your presence at the door step and notify you when there is someone entering your house, lights that turn on as you walk in, and turn off as you walk out etc.

To continue effective innovation firms need to put aside the “cool factor” and array of potential benefits, to focus on forward looking analysis of consumer needs. Analysis should lead firms to what smart products within the home aim to fulfill consumers perceived needs.

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Researchers Brink and Bronswijk conducted a study on the interconnectedness of Maslow Deficiency of Needs Hierarchy and a consumer needs assessment of smart homes (Brink and Bronswijki, 2013). The study showed that consumers may feel the needs of fundamental satisfaction from different elements of smart homes, Bronswijk & Brink concluded that the new connection of existing technologies of home automation is required to assure an optimal quality of life in our aging society; the roll-out of smart homes leaves much to be desired. Technology issues are left to be solved, yet Brink and Bronswijk consider it in the hands of the marketer to utilize the psychological effect of this trend on consumer’s state of mind.  Brink and Bronswijk express the importance of identifying the divergence between consumer needs and the potential features a smart home can supply. Authors propose that by linking smart home innovation design and technology development with human needs as outlined in Maslow’s Deficiency of Needs a smart product can increase its valuation and level of adoption into the smart home. “Maslow identified consecutive layers of deficiencies in needs of human subjects: physiological, safety related, concerning a sense of love and belonging, self-esteem related, and room for self-fulfillment or self-actualization. The more basic physiological needs (such as breathing, eating, walking) have to be fulfilled before the higher deficiencies (such as social and safety needs) start to matter” (Brink and Bronswijki, 2013).

The needs elements that smart homes fulfills were observed within the lower levels of the Maslow’s hierarchy yet, once it reached higher levels of esteem or self-actualization the connection began to fall apart. The smart home that connects with consumers social, safety and physical needs are the smart homes that will succeed in adoption.

                                

Based on Brink and Bronswijk’s research, many start-up companies have been able to spot the actual needs of consumers and create a market for automated homes. In a similar approach, Portland, Oregon based company IOTAS, has spotted the need for smart home apartment complex’s. IOTAS has identified two different groups of consumers: early adopters, who want/need a smart equipped home and those who are content with the traditional lifestyle. Using data collected from several surveys, the company forecasts that consumer are changing habits, switching to smart home based on basic needs, such as save money on energy bill, better safety control, better use of energy and time consumption to accomplish household tasks. “Portland real estate developer Capstone Partners is working with Internet of Things startup IOTAS to bring an energy-centric smart home to the rental market. The IOTAS platform will be able to monitor outlets, lights, doors, water, motion and temperature through sensors in smart outlets and switches in each room. The company already has a hardware manufacturer on board and is working out a deal with a large national property management firm” (Spencer, 2015)

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Figure 2: Maslow’s Deficiency of Needs

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Smart homes will eventually make life easier and more convenient for a wide range of users. It is very convenient to be able to control lighting, entertainment and temperature without having to exert excess time or effort. Whether you're at work or on vacation, the smart home will alert you to what's going on at the home level. Security systems can be built to provide an immense amount of help in case of emergency. For example, not only would a resident

be woken with notification of a fire alarm sensor, but the smart home would also unlock doors, dial the fire department and light the path to safety. Smart homes also provide some energy efficiency savings and reduce cost of usage. Systems such as Z-Wave and ZigBee put in devices at a reduced level of functionality, meaning devices can go to sleep and wake up when commands are given. Electric bills will go down when lights are automatically turned off in empty rooms, and rooms can be heated or cooled based on who's there at any given moment. These are the kind of needs that the smart home of today and tomorrow will bring to satisfy human deficiencies.

3.4.2 Technology inside the Home

A lot of real-estate home builders are trying very hard to integrate smart homes systems in new homes to embrace home automation technologies. The goal is to provide homeowners with intelligent and sophisticated feedback and information by closely monitoring many aspects of their home while they are home or away. For example, a smart home's refrigerator may be able to catalogue its contents of groceries, notify you that you are running out and suggest menus as well as recommend healthy alternatives, or potentially order replacements as food is used up. To go even further, a smart home might adopt taking care of entertaining your pet or watering the plants at any given time scheduled.

New homebuilders are highly aware of the measures that must be taken to build homes with the additional wiring and controls required to run advanced home automation systems. Retro-fitting (adding smart home technologies to an existing property) a house to make it a smart home is obviously significantly more costly than adding the required technologies to a new home due to the complications of routing wires and placing sensors in appropriate places, which consequently add a premium value to the cost of the home. It is important to note that the range of different smart home technologies available is expanding rapidly in big cities along with developments in computer controls and smart sensors. This has inevitably led to compatibility issues and therefore, a drive to standardize home automation technologies and protocols. Platform technology that connects hubs of smart devices, consists of a two-wire bus line that is installed along with normal electrical wiring that links appliances to a decentralized

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Cortney Kerr Photography the apartments in grant park village outfitted for the iotas platform doesn’t look any different on the

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communication system and functions like a telephone line or cell phone Bluetooth over which appliances can be ultimately controlled.  

Regardless of the technology complications, smart homes present some very exciting opportunities to change the way we live, work, and consume energy. The ability to check messages, open windows, operate lights, curtains and monitor energy system savings, through your smartphone or any other connected device, from anywhere in the world can be highly valuable. Consumers’ willingness to switch from the traditional home to an automated home technology is high considering the system implemented is a good smart systems defined by our model identified in 6.0.   “New home builders have been getting more and more interest in building home that is ready for the new generation on customer who want and live only technology: the millennial.  Builders see growing demand for tech-heavy, smart home features. In this regard the director-maker of Nest Lab states early this year in Orlando Business Journal that “it all started with millennial, who live and breathe technology on a daily basis and wanted more smart-home type of options in the homes. That has since trickled into other demographics,

from first-time homebuyers all the way up to empty nesters and retirees” (Fulker, 2015).

The growing market for automated home and the production of its component such as smart systems hubs and smart sensors have created a competitive market among start-up companies and those that are already established. Nest, is one the top companies base in California, which was acquired by Google earlier this year, is going to have plenty of competition down the road with company like SmartThings, a Washington DC based startup. Among those we

have Apple and Google. “Last month, Apple announced its own home-automation software, called Home Kit. It is due to launch with Apple's iOS8 operating system this year. “Home Kit will allow iPhone and iPad users to control door locks, lighting, CCTV cameras and heating/air-conditioning systems but rather than centering it on a thermostat, like Nest, the Apple TV internet set-top box is expected to act as its hub” (Marks, 2014). The consumer base of Apple is very strong and in this regard has already a competitive advantage. However, “SmartThings shop is currently offering two starter kits for home control applications, for $199 and $299. Which are not very cheap for the average consumer electronics, so their product is premium market. So the kits include the SmartThings hub and various sensors and devices for receiving notifications when people, pets, and car arrive and leave, turning on lights or a TV in response to motion detection and other home control scenarios. The shop also has individual items, including SmartThings compatible devices from GE, Schrage and Kwikset, and solution sets for various categories, such as keeping track of kids and elders, turning off appliances via a phone and controlling and automating lighting” (Marks, 2015).  The problem that will rise for the consumers is the cost of each individual hub.

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Nest’s venture into home-security with its smoke alarms and Dropcam’s wireless video camera could be Google’s step into the smart home industry (Strivastava, 2014).

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Installation is neither cheap nor easy at the moment in homes infrastructure that is already established, especially those built decades ago. The average household income will not have it easy to afford any smart devices that come from neither Nest nor SmartThings. All of these big companies are currently competing with each other for market share.

3.4.3 Transmission Platform and Associated Smart Home ChallengesMany consumers who are technologically savvy will find no problem to be wired to their

smart devices from distance as long as they have the luxury to monitor anything without stress and physical effort. This makes us thank the Jetsons and the invention this theories since 1975 of the X10 that is a home automation communication standard. “The X10 in fact will transmit signals over power lines in the home that will then allow lights switches and various devices in the home to communicate with each other” (Edmonds and Chandler, 2015). The beginning of this technology truly began with X10 and it could interpret electronic interference as a command

and react, or it might not receive the command at all. While X10 devices are still around, other technologies have emerged to compete for your home networking dollar. Instead of going through the power lines, many new systems use radio waves to communicate. That's how Bluetooth, Wi-Fi and cell phone signals operate. “Two of the most prominent radio networks in home automation are ZigBee and Z-Wave. Both of these technologies are mesh networks, meaning there's more than one way for the message to get to its destination. But new innovators are trying to make

things even simpler by creating a simple platform that they can control from anywhere. It is challenging for consumer to keep track of everything from one hub or another one.

But many company have been using the X10 model from Jetsons to come up with a simple way to monitor all the devices at once. Company like SmartThings in this regard has already shipped thousands of it home automation gadget along with several other in-home gadgets. The company as shown to consumer how to use the hub in many various ways and also, its SmartThings hub comes up with cool tweaks for the system, such as programming the washing or dryer machine to send a text when it's finished, or turning light bulbs blue if a water sensor detects a leak. The firm is in effect turning to its own customers for ideas on how to turn the dream of the smart home into reality. But the problem of single platform still has not been solved. This system will require some sort of hub in order to work efficiently for all other smart home devices. This is largely due to the complexity of getting dozens of disparate objects all communicating with one another.  Another way to attack the issue is to design more adaptable software which includes microchip designer ARM, BT and IBM. The universal “discovery and interoperation” system,

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called HyperCat, aims to allow devices from different manufacturers to discover one another and work together seamlessly”. (Marks, 2014)

3.4.4 Strategic Road Map of Smart Home The smart-home industry is expected to reach $17.9 billion in hardware and services

revenue this year, growing to $40 billion by 2019, according to Strategy Analytics. Many company’s’ have been on the race to catch a share of the market. After reviewing many articles, authors agree, risks are present, firms must be ready to take losses in order to claim the leader with the big company that are already established. “Google have invested a large amount of money in this venture. Their recent acquisition of Nest for $3.2 billion last January and opened up its software interfaces in June for developers to connect with Nest's thermostat and its smoke and CO2 detectors was a big financial move. “SmartThings is a tiny player in all of this, but its "platform" approach is getting attention. Samsung is reportedly making moves to buy the startup for $200 million. Talk of a partnership with Lowe's has been circulating. Since SmartThings began shipping its hubs after a September 2012 campaign on Kickstarter raised $1.2 million, the company claims to be in tens of thousands of U.S. homes and that its installed base is increasing 10% to 20% a month. Even SmartThings' rivals such as Revolv, which sells a $300 hub (but lacks an open platform for app developers), admit this. "Nobody right now is making money at the hub level," says Revolv cofounder Mike Soucie”(Aaron, 2014).

Most companies, however, are interested in offering higher value services to offset the competitive pressures that erode pricing.  In the following illustration company demonstrates the likely evolution of company strategies up the value stack, beginning with basic- and managed-connectivity. The roadmap of this analysis is to understand the evolution of the market and what will be the measures to take.

3.4.5 Financial Risk and Challenges for the Smart HomeThe greater opportunity for the Internet of Things industry is in selling services. Like

ordinary homeowners, the cost of the smart home is another aspect that smart homeowner should consider. The current issue at the moment is the insurance policy and fees connected to the use of smart devices as new system that adds value to the cost of the home, therefore the cost of the insurance. For those reason, insurance companies want to issue more intelligent policies based on live data emanating for any automated homes. Also, home retirement facility for example is also a big market for smart device especially, monitoring device services are eager to charge families for the ability to monitor the condition of their loved ones via smartphone. Companies like SmartThings would receive a portion of each sale made through its system. “SmartThings' first real business deal on this front is its partnership with Cross Country Home Services, the second-largest home warranty provider in the U.S. Each time a SmartThings user hires a Cross Country contractor, SmartThings will get a piece of the fee” (Aaron, 2014).

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The horizon seems promising for some of them to make money from automated home venture. But the reality is that everything that will contribute to make a home run will have to be connected to some sort of hardware. Hawkinson, CEO of SmartThings believe that there will be a saturation at some time where everything is connected and you won’t be able to buy a door lock that isn’t connected; which will generate a service provider created. It is important to note that booming of smart sensors data will eventually shake up the insurance industry. Company like Allstate already offers a 25% premium discount for those who sign up for a home monitoring service. Insurance companies are taking an active measure to protect the capital asset in this industry.  

3.5 Smart Products

3.5.1 Products & ServicesMaking technology invisible, a seamless part of our lives, is the job of

today's designers. Their roles have a far and wide usage, from an aircraft seat, a microwave, a mobile phone to a piece of clothing; it is their duty to transform complex technology to be useful whenever needed by the masses. A well-designed product is usually the result of hundreds of carefully formed decisions regarding its functionality, our needs and lifestyles, as well as our emotional response to color, texture and form.

Smart products are specialized products that have the physical recognition and digital product specifications that give certain features, and which include; situation, personalization and its parameters over time at any place. Radio frequency identification (RFID) uses wireless electromagnetic fields to disseminate information for automatic use in identification as well as tracking of attached products. In short, this development has represented the growing marriage between the physical world and the digital one in such a way that interference from either the physical or the virtual world might affect either one of them. From smart phones that act as personal concierges to self-parking cars to medical robots.

Electronic devices have become very important part of our lives and they complement every side of our life from home appliances, air conditioners, televisions, phones, weighing scale, energy meter to other devices such computers, tablets and medical devices. The Internet of Things (IoT) is the connectivity of devices which have electronics, software components, sensors and internet and this ensures a higher value of service and sharing of data between manufacturers, operator and with other connected devices. Every other device is exclusively identified through attached computing system, though they can interoperate using the existing internet infrastructure. The enablers of IOT are smart sensors such as motion sensors and environment sensors as well as ultra-low current consumption wireless technologies.

The importance of sensors has grown in strides in different industries, however, this item has made it easy to monitor motion, environment as well as other parameters which are remotely located as well as transfer to the control system through wireless technologies. Their importance to human life

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has been several folds, and in addition, they have made already developed devices seem smarter (Goyal, 2014).

From the robots on Mars landing without human help, to the cars whose dashboards we can now talk to, smart phones that are in effect our own concierges, artificial intelligence is changing our lives sometimes in ways that are obvious and visible, but often in subtle and invisible forms.3.5.2 Smartphones

Smartphones have become a very important component of modern life and without them we feel like only half a person. They complement every facet of human life from browsing through the internet, social media platforms, check emails, manage calendars, listen to music, play games, watch videos, take photos, read the news, and to their basic functionality which is using them for voice calls. Such advances in the functionality of

phones were unthinkable in the past say 20 years ago, and as a result they have changed the way of life drastically.

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Today every kind of information is available round the clock and can be accessed all over the globe. . Pleasantly, the wheels of innovation and invention have not halted, and the growth of applications has provided people with the opportunity to obtain specific information that they seek, which is not only convenient but also sufficient. Similarly, smart phones have revolutionized communication as they provide a variety of platforms; text messages, voice calls, instant messaging, emailing, social media amongst others.

The ability to obtain information round the clock has had a profound influence on people’s lives. Research has shown there is a high probability for individuals to easily forget information that they are sure to obtain and retrieve conveniently. The internet has also provided people with an easier root to store information away from the confines of their brain (Leitner, 2012)

Global smartphone industry reached an alltime high when it reached over 1.83 billion units globally in 2013. The statistics show that global smart phone manufacturing giants; Apple and Samsung contribute two thirds of industry revenue, and nearly the profit generated by the top ten smart phone manufacturers. Just as the industry is synonymous with cutthroat innovative competitiveness, other players are increasingly foraying into the forte of the big two, and the two are feeling the heat on their profit margins. Industry

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analysts assert that the power of the Android system continues to exert pressure on Apple and fast closing gap on it, due to the Samsung’s ability to differentiate (Koytcheva, 2014).

Over the last few years, the market for smart phones has continued to experience pressure from subsidization of products in very mature markets, and this has effectively polarized the market. In numbers, 2014 saw 450 million smart phone handsets being shipped to China, and with India’s 900 million mobile phone subscribers(world’s second largest mobile phone market), 242.7 million handsets were shipped into the country in 2013, yet only a sixth were smart phones (Koytcheva, 2014).

The smartphone market share in the US is expected to gradually decline from 16.58% in 2012 to 9.3% in 2018. A similar forecast is made for Western Europe, which will observe a negative growth from 16.98% in 2012 to 10% in 2018. US, being a developed market, has an already elevated smartphone penetration with little or almost no room for more smartphones

(Srivastava, 2014).

3.5.3 Smart Watches

Smart watches and fitness trackers are at the epicenter of the tech world and they have becoming in all manner of shapes and sizes. The market for smart phones is definitely huge and continues to grow, and this will in a

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way enhance the growth of the market for smart wearable devices. A report by Credit Suisse puts the entire market at $3billion to $5 billion, with potential to reach $32.9 billion by 2020 (Rowinski, 2014)

FuelBand, Jawbone and Fitbit have been leading the line amongst fit tracker brands and have so far enable more consumer interactions with this piece of wearable technology. Apple and Samsung are not far behind in the wearable business as they have duplicated the fitness tracking potential through inbuilt operating systems. Consequently, this has lead to a shift of startups towards companion software to offer not just basic experience and provide additional data collection points and approaches to present such data in pragmatic and helpful ways. Increasingly, people are beginning to consider smart watches in the way they consider smart phones, PCs and the internet.

Most developed technology developed by companies like Apple and Microsoft and tailor made to fit into the lifestyle of the user. Such products as the mobile smart phones and the smart watch are easy to use and make the life of the user easier. Value addition is therefore quite crucial in the development of wearable technology. Moving beyond health tracking, wearables put evolutionary pressure on smartphone manufacturers to move into the smartwatch category. A lot of people think wearables have the power to transform society in the same manner as PCs, the Internet, and smartphones. And wearable technology is just getting to the point where it’s possible for products to be equally practical, capable, inventive, and essential. This is similar to the advent of smartphones and how they changed the personal computer market, forcing the likes of Apple and Microsoft into the mobile market. The smartwatch has had a similar effect, with some believing it to be the next logical step in mobile technology.

The smart watch will begin stealing features and functions from the smartphone. In time, we might start to forget about the smartphone, until one day our junk drawers will be crowded with them. So many concepts and ideas related to wearables are focused on ways to interact with smartphones less, controlling your music, displaying the QR code for a boarding pass, or replying to a text message with your voice. Or there’s this idea that wearable’s have to be a thing we interact with at all.

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On the hardware side, products from firms such as Apple, Jawbone, Intel and Samsung have high tech sensors that are able to constantly and precisely monitor actions, pulse rate, sleep cycles, and other important physiological factors. On the software side, these companies mentioned above plus others such as Baidu and with the exception of Jawbone and Intel are developing systems on health. These can generate data from a host of wearable and other portable devices and have a potential to produce important info that are founded on widespread data sets. On the software side, various companies such as Apple, Google, Samsung and Baidu are working on health platforms. These platforms are able to aggregate data from various wearable’s and sources, and promise to generate valuable insights based on comprehensive data sets.

People often ask where the congruence between smart phone and the smart watch lie, particularly with respect to health and fitness. It was rumored in late 2014, that the Apple Watch will provide a solution to this question in early 2015, but the current Apple Watch is rather complicated, and it seems to be more of a ploy to enhance the sale of iPhones. This watch as the obvious smart phone based sensors for health, and which include heart rate sensor and pedometer, which is attached to the Apple Health app that provides aggregation to the fitness data.

In November 2014, the Korean electronics giants, Samsung announced a new device called the Simband. The Simband is a modular band with a number of expendable sensors that was planned to be more technologically efficient. In essence, the Simband was a reference for the design towards futuristic smart watches and tracking of health. In combination with Simband, Samsung has software for writing new algorithms of health related data and a cloud-based health data exchange called SAMI. Samsung calls this package of research and reference material Voice of the Body.

Researchers can use the Simband to use a variety of sensors designed to penetrate the mysteries of the body through technological and software-based means. The modular nature of Simband means that researchers can build sensors and place them in the band to track a variety of body-related data. Examples of sensor technology that the Simband can use include not just standard infrared but red, green, blue, yellow and green LED sensors to allow for multiple layers of infiltration of light. In addition to the multi-colored LEDs, the Simband can employ electric, acoustic and optical sensors to track health information. The sensors on the Simsense module include:

- Electrocardiogram (ECG) for recording the electrical activity of the heart.

- Bio-Impedance (Bio-Z) sensor which is a method for estimating body composition, especially body fat.

- Photoplethysmogram (PPG) is a volumetric measure of an organ obtained by using a pulse oximeter that illuminates skin and measures change in light absorption.

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- Galvanic Skin Response (GSR) used to measure the electrical conductance of skin through sweat.

- Thermometer measures skin temperature.In the wearable technology world, the sensors used are relatively new phenomena but in

the field of medicine they have been used in most hospitals and clinics. The sensors offer a stream of endless possibilities, some of which include providing a link between health and gadgets that people use every day. Smart watches for instance play a very important role in the field of medicine and of particular importance is the monitoring of glucose levels for those with insulin related health problems. Other important uses also include monitoring of the heart rate thus providing a likely deterrent for cardiovascular related complications (Darrel, 2014)

In future the smart watch will provide tailor made solutions to therapy, provide solutions related to delivery of drugs in the most convenient times for people in need of them and also be of help to individuals with lung related complications, epilepsy, physically handicapped individuals, and those with mental conditions. In addition they provide an excellent and precise solution for maintaining the records of patients. The smart watches market continues to grow exponentially due to favorable market conditions with North America providing almost one third of the market revenue in the year 2013. Future projections however indicate that the market will be mostly provided by the Asian region, with China providing the largest share for this particular market while also providing a low cost manufacturing hub for wearable technology.

Newer sensor technologies are poised to revolutionize the product market in the decade, and in addition, this would enable other new companies to exploit the opportunity to enter the market as either offering auxiliary products or just the main production, perhaps it the revolutionary stage. Consequently, the market would be more competitive, and the cycle would continue, as it would lead to better products being produced.

The Global Smart watch market has been estimated to hit $32.9 billion in the next years, and this is according to the results of a new report, the Global Smartwatch-size, Industry Analysis, Trends, Growth and Forecast 2014-2020. The 2013 sales figures in units indicates more shipment of smart watches by Samsung, other dominant firms in the business include Nike and Garmin respectively. There are approximately forty countries enjoying the end product of this consumer good, yet the industry’s surface has merely been scratched, and this indicates a real potential for higher products in the future. Presently, the market is purely driven by the giant technological firms such as the Korean electronics giant, Samsung, then Apple and even the search engine giant, Google among others. Nonetheless, the dynamics of the market is expected to increase competition as well as the entry of new competition. Through the R&D departments, the makers of smart watch continues to upsurge their expenditure on research, and top players such as Samsung, Pebble, Maritime and Sony whose huge investments in R&D are expected to lead the way in new smart watch market wars. To achieve supremacy in the market, an effective distribution channel would be the most likely ally that would help to cement the market status of such a firm. Samsung has an established and a global network of distribution system which is stronger compared to other players in the industry and this adds to their competitive edge (Correa, 2014).

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3.5.3 Smart Products for Sports

The developed world is currently affected by the problem of overweight, and there is a renewed pressure by the general populace in such nations to consider personal fitness regime to enhance fitness, lose and maintain weight for its obvious health benefits. . Smart sensor go farther that just counting your steps, The new Adidas product is the first system of its kind that uses physiological data in real time sending it straight to a coach's tablet on the side-line. miCoach Elite Team System is not only provides real-time insights during training, but tracks total training impact, collects and manages data and is highly portable. The state of the art system measures everything from power, speed and distance to heart rate, acceleration and field position, allowing key insights into player performance and work.

Adidas’ new product it’s one of a kind as it uses physiological data in real time and delivers information to the trainer’s tablet on the sideline. The miCoach Elite Team System, as the product is known, provides real time information during training and trails the total training impact, collecting and managing data, and in addition the product is very portable. The state of the art system takes in every dimension required from the trainee, from power to speed, acceleration, field positions, and distance and to even psychological details such as the heart rate among others. This helps in close monitoring of the performance of a player and obtaining key information on their work rate, and this will hugely impact the future of soccer in the North American major leagues. In fact, Adidas had announced that Major League Soccer teams will commence the use of the flagship smart products: miCoach Elite and set of own fitness tracking devices. These will remit data about each member of the team to their coach in real time, and information on each player’s positioning, movements, speed, heart rate, stamina, and other physical as well a physiological data. At the center of this novel product is a tiny item known as the cell, which is a small data capturing device. It has a heart rate monitor, accelerometer, GPS tracking device, magnetometer and gyroscope. Players wear the device in a special garment with a protective pocket which places the device in between the player’s shoulder blades, and a whinny little antennas of the device sends the data that is collected via radio frequency to a receiver. The receiver then sends the data through Wi-Fi to a tablet, normally on the hands of the coach or any fitness expert (Duffy, 2012).

3.6 Smart Sensors

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The objective of this section was to the following; (1) Identify what is a smart sensor, (2) Briefly explains certain architectures (3) Identify the trends and market size for smart sensors, (4) explain the implications for these smart sensors. Using the information from this section a future outlook was constructed and how smart sensors will increase connectivity of products and services.

3.6.1 Smart Sensors Defined

Sensors are devices that measure changes in physical energy (temperature, chemical, acoustic, etc.) and translate that energy source into an electrical signal. Typically, this electrical signal is then sent via a digital or analog signal to a data acquisition unit to display data or be stored. With an increasing need for sensors to provide better, more specific data, sensors are being embedded on silicon with microcontrollers or processors. This process allows basic sensors to become more intelligent and programmable. Smart sensors in most cases can; self calibrate, filter noise, and send alerts to users. Smart sensors are a rapidly growing market that offers new possibilities in the world of product development and application.

3.6.2 Microcontroller

These devices are basically mini computers. They have a programmable input/output, processor core, and memory. Microcontrollers when combined with a wide variety of sensors give them the power too:

Pre-process data to filter out noise Programmable calibration or configuration setting that is remembered and self-correcting Communicate measurements & alerts

Legacy sensors without microcontrollers process the data externally. This means that the measurements are made by the sensor and processed by another computer system. The problem with this method is the amount of data being created. “We are swimming in sensors, and drowning in data,” said Dharmendra Modha, a principal investigator at IBM (Kharif, 2013). The ability to filter data more accurately will decrease noise and increase the value of the data. Shown below is a popular 16-bit microcontroller by Texas Instruments. This model use has 62.5 ns instruction cycle times and a very fast wakeup time. Both factors work to reduce the overall power requirements of the board. There are other controllers that are bigger, more powerful, but use more energy.

Fig 1-1: MSP 430 by Texas Instruments

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(Gabay, 2013)

IEEE 1451.4 Standards

The Standardization of a smart sensor’s: (1) communication interface, (2) standard hardware, (3) software specifications, was achieved by the IEEE 1451.4. This standard has given sensors a plug-and-play capability, which has increased the ability to use these sensors and maintain a wide variety of sensors. The introduction of the transducer electronic data sheet (TEDS) has allowed end users to track and better maintain sensors. TEDS hold standard information (e.g. manufacturer, model, calibration, range..ect) about the sensor and is often installed in the memory of the sensor. (Sereiko, et al. 2003). Figure 1-2 shows what information the TEDS hold and that the information is transmitted digitally through binary.

Fig 1-2: Example of Smart Sensor with TEDS (Wynn, 2004)

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The TEDs have allowed for more innovation in smart sensor application. Sensors now have a better way to communicate with the user, which leads to more practical and cost effective sensors. This has allowed business to better track sensors and develops new applications.

3.6.3 Smart Sensor Design

Design of smart sensors is still an evolving field. Research is continually expanding the possible designs and applications of sensors. It is important to note that this is not an easy process and requires skilled engineers who work in the sensor field. “Design is more of an art than a science due to the wide variety of sensing principles, packaging methods and circuit techniques that can be used to compensate for, or even cancel out, various non-idealities” (Makinwa et al., 2007). Sensors can be integrated in circuit technology with a single processor or two-chip solution. The onboard electronics complement the sensor in the following main functions: (1) Supply voltage and/or current required to operate the sensor, (2) processes sensor data (3) communicate a strong signal output to the outside data acquisition units. (4) Mode selection.

A majority of smart sensors send a digital output. This allows the sensor’s processor and electronics to apply signal condition that filter out noise and increase output accuracy. “This approach facilitates the interconnection of several sensors via a digital bus, and takes advantage of the flexibility and ever increasing signal processing capability of microprocessors” (Makinwa et al., 2007). Today’s smart sensors can also be manufactured to operate in a variety of modes with different performance metrics. This allows for more accurate reading given different scenarios, e.g. the required range, bandwidth, and linearity. “In general, maximum dynamic range is obtained in open-loop mode, while maximum linearity and bandwidth can be obtained in closed-loop mode” (Makinwa et al., 2007).

Fig 1-3: A Smart Hall Sensor

(Makinwa et al., 2007).

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Figure 1-3 shows the design of a smart magnetic field sensor. A Magnetic field induces a voltage that a chopper that acts as a switch to send a singular voltage. This voltage is converted to an analog signal that is then converted into a digital signal. This digital signal is then filtered and processed by a microcontroller.

3.6.4 HART Protocol

Major problem for smart sensors is calibration. Performance can only be evaluated by which inaccuracies are known. HART Protocol is a hybrid communication standard that allows for a 4-20 ma analog signal and a digital signal to be sent from a smart device.

Emerson Process Management highlights the following benefits: “

Device Status & Diagnostic Alerts Process Variables & Units Loop Current & % Range Basic Configuration Parameters Manufacturer & Device Tag

With additional information like this, HART devices that are digitally polled by a host can tell you if they're correctly configured and operating correctly” (Emerson Process Management, 2002). A communication and calibration standard is important for a smart system to adopt. This way data accuracy and reliability can be monitored in a controlled, real time system. A standardized communication/calibration standard has huge implications for smart systems, services, and products. When the data is translated into actionable information for a product or service the data needs to be correct and relevant. If the information is not correct, the product/service will be full of bugs or fail to work at all. Business looking to develop smart systems, products, or services need to ensure they are using smart sensors that are using the same communication standard.

3.6.5 Sensors Market

According to an article in Bloomberg, “The market for sensors integrated with processors will reach 2.8 trillion devices in 2019, up from 65 million this year” (Kharif, 2013). Winter Green Research, a company that sells market trend data and reports, is what the market data is based on. This growth means that smart sensors will become cheaper and more widespread in the future.

3.6.5 Sensors Trend

The overall trend for these smart sensors is to become smaller and more energy efficient. Most sensor applications for products and cities will be remote sensors. “Remote sensors need to be small, rugged, reliable, and able to operate on a very limited power budget” (Lecklider, 2014). Wearable sensors have become a new, popular market for sensor developers. It is likely the sensors will become smaller and more power efficient to better fit the wearable technology market.

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Smart Sensors

Function Key Characteristics Trends

Communication

Digital and analog two-way signals. Still use of legacy (analog only sensors). Some adoptions of communication standards for smart sensors (Mainly HART Protocol).

Full Digital Communication. Adoption and adaptation of communication standards

Microprocessor

Programmable. Self-calibration. Filters noise. Adaption for smart sensors is still a young industry.

Will become more integrated and powerful. Increases in onboard memory and functionalities. Production is increasing and as a result prices will decrease over time.

Architecture

Sensors attached to silicon based electrons, that process and communicate data.

On board electrons will become smaller & more energy efficient. Cheaper to build.

Market

Sensors integrated with processors will reach 2.8 trillion devices in 2019, up from 65 million this year” (Kharif, 2013).

3.6.7 Implications of Smart Sensors

The technological advancements to sensors will lead to more accurate measurement, and increased communication between devices. These smart sensors will help to filter data even more and only report relevant data back to the end user or programmer. Smart sensors will lead to new products and find their way into old products. According to an article in EE “the sensor is a fundamental but small part of the overall system developed to address the application. The improved performance the solution provides is directly linked to how well the raw sensor output has been converted to actionable information” (Lecklider, 2014). The author recognizes that the new sensors are great and are helping to create so many new products. However, he is quick to point out that at the end of the day a sensor is just a measuring tool. Even with accurate information, it needs to be presented in a meaning full format. Smart sensors require a background structure and process to determine what data is to be collected and how the presentation on this information results into a product or service. It could be argued that while the technology is important, it is meaningless if a complete application is not implemented.

3.7 Security ApproachesThe Institute of Electrical and Electronics Engineers hosted an international conference

on the Future of Internet of Things and Cloud. A part of the international conference integrated the ideas of Martain Henze, Lars Hermerschmidt and several others. Their team constructed a way to protect privacy while simultaneously allowing the potential the Internet of Things holds

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to flourish by utilizing user-driven privacy enforcement for cloud-based services. The Internet of Things (IoT) is confined in its ability to compute and store data until it is able to fully utilize the resources cloud computing provides. Privacy is a driving factor in decelerating mass acceptance of smart networks.

The work of Martain Henze and Lars Hermerschmidt and associates, presents an envisioned solution to disentangle the complexities that derive when addressing privacy issues of smart technologies. The journal explains that an IoT device is not typically accustom to each user yet, current privacy features require a user oriented device. The proposed user-driven privacy enforcement would address privacy concern, according to the journal, using the following three methods:

i) Enforcement of a user’s privacy requirements even if her sensitive data leaves the secured borders of her own IoT network.(Henze, 2014)

ii) A novel approach for integrating privacy functionality into the development of cloud-based services. (Henze, 2014)

iii) an adaptable, flexible, simple, and transparent possibility for a user to configure her privacy settings. (Henze, 2014)

Martin Henze, Lars Hernmerschmidt (2014) “User-Driven Privacy Enforcement for Cloud-based Services in the Internet of Things” 2014 International Conference on the Future Internet of Things and Cloud

Figure 1 illustrates a typical network scenario capturing the transfer of data from the privacy of the user to cloud storage and thereafter third party access. Potential privacy turmoil resides in just about every smart product and even more prevalent in networks of coordinated and collaborative technologies. For example, a home energy efficient system that utilizes user tendencies and physical positioning to self-adjust electricity and heating use as you enter or leave a room requires mass data storage that in the hands of a thief could foster negative consequences. Thus, a system with a multi-faceted approach is necessary to protect the privacy of our data when conducting transfers of data from the cloud to an internet of things where there are several access points.

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Martin Henze, Lars Hernmerschmidt (2014) “User-Driven Privacy Enforcement for Cloud-based Services in the Internet of Things” 2014 International Conference on the Future Internet of Things and Cloud

Figure 2 illustrates the use of Privacy Enforcement Points (PEP) providing increased security to data stored in the cloud. PEP requires user discretion within important access points as well as trusted third-parties providing consumer privacy guidance throughout the process.

The progression of smart technology will follow a systematic tiered approach of consumer adaption. The tiers are constructed based on consumer acceptance, cost efficient transition costs, and functional value. Firms will work their way up the tiers adopting increased levels of smart adoption considering roadblocks of security, privacy and other unforeseeable are cleared.

As smart products and services become increasingly interconnected, concerns of security and privacy have developed, slowing substantial progression. Complexity increases, as does security concerns as smart technology guides forward. Security is a factor however, in most cases the benefits achieved with smart technology adoption out weight the threat of security breaching. Take into account the vast amount of data released via smart phone applications and internet browser data. The security of the data consumers currently allow access to is disproportionate to its functional value. Perhaps a future will be made for insurable data.

3.8 Socioeconomics ImplicationsThe applications of smart networks hold a significant impact to the socioeconomics of

our world. A shift will occur, though smart technology has a great impact on increasing efficiency there will be a surplus of blue collar unemployment displaced to meet demand in the high tech industry. A significant loss of the blue collar sector of jobs will occur, note the job of a smart product the sensing, processing, and taking corrective action will take over a string of human driven jobs in many cases. Within the home, a change in human lifestyle will occur.

Scenario methodology is a way to establish foresight as to how the future will unfold. It is imperative to operate/develop smart innovations in line with consumer acceptance. Devising scenarios broaden conceptual understanding of the environment in which you operate. Scenario planning if implemented properly, (ie. consideration of bias, inaccurate framing, seeking confirming evidence) is a valuable tool to understanding the future of smart products in that it

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allows a firm to break apart mental boundaries that are hindering the ability to create products and systems that surpass current conceptual maps.

Smart product innovation is a small function of what the future will hold smart products that fit the oncoming changes will disrupt and creatively destroy how we as humans function, especially the socioeconomics. Scenario planning provides the important concept mapping that can pull apart and re-braid how consumers will absorb smart product, what needs can be fulfilled, product acceptance, smart city acceptance, socioeconomic implication etc.

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4.0 Conceptual Model

4.1 Smart Model Methodology

Using the information from our research streams: smart cities, smart sensors, smart products, and supplemental information, we developed a smart model to define what qualities the smart industry needs to have. The smart model is use to evaluate and construct smart systems and services for the future. In the section we will use the model for: (1) evaluating our case studies, and (2) explain the implications the model will have on new product development for smart products.

4.2 Smart Model Design

Smart Model

Characteristic Description Points WeightWeighted Points

Data Efficiency

Adoption of calibration/communicationstandard for example (HART Communication Protocol) to ensure data is correct. Localized model developed to capture relevant data, and translate data into actionable information. 100 40% 40

Communication

Products/Sensors are required to have a full digital signal output. Speed of communication is reliable and real time: implementation of MAC (media access control) and network layer adaptation. 100 30% 30

Server Efficiency/Security

Data servers are of an adequate size for the service. Size is easily increased or decreased according to demand. IT Security team employed and protocols developed. 100 15% 15

Sustainability

Business running the service practices improvement methods like Six Sigma. Investments made into long term cost reduction methods. Strong customer service and focus. 100 10% 10

Ease of Use

Products/Servers are easy to use and learn. Content developed to: reduce switching cost, provide proper use instructions, and reduce customer service traffic. 100 5% 5

Total 100

The smart model has been segregated into (5) characteristics and has been weighted based on overall importance and value, based on our literature review. This is the format we will use to grade our case studies.

5.0 Case Studies

5.1 Pacific Northwest Smart Grid Demonstration Project Case

A smart grid is one that engages consumers and responsive assets throughout the power system to help optimize the system and better integrate renewable resources. This is all about placing smart sensors and meters on production, transmission and distribution systems to get near real time data about the current status of the power grid. This system is used to also see the current state, faults and loads throughout the grid. This information will allow end users to be better able to gauge and manage their individual power use based on need and cost.

The benefit of a smart grid is the savings, for instance you will have the ability to set your system to not allow your water heater to come on when you are not home. Since, currently your water heater will come on as soon as your water reaches a certain temperature, whether or not you are actually home. The question for utility companies is, which smart grid technologies will provide the greatest return on investments.

This lead to the Pacific Northwest smart grid demonstration. The project launched in 2010 and is one of sixteen regional smart grid demonstrations currently underway. This project receives about half of its funding through the U.S. Department of Energy through the American recovery and reinvestment act with consortium members paying the remaining costs. This project is estimated to cost one hundred and seventy eight million dollars. The Pacific Northwest Smart Grid Demonstration project aims to test a single potential option for a smart grid, a grid technique called Transactive control. “Transactive control is an incentive and feedback signal that helps coordinate smart grid resources” meaning that people now days tend to worry about their electric bill when they get it, which could lead to over usage or there electric bill to be hundreds of dollars more than it was the month before. This project will engage the residential assets and other equipment assets throughout the power system to help optimize the system and create better integration of renewable resources. This is being tested throughout the Pacific Northwest with eleven utility providers in five states: Washington, Oregon, Idaho, Montana, Wyoming The customer side of the project contains the installation of about sixty thousand meters of in home smart systems that give consumers the control to voluntarily reduce their individual energy use and save money. The system works at the power source using Tran’s active control signals containing information about power availability, pricing and power needs of the end users. This signal moves tough the system incentivizing the efficient use and movement of power. The system does this every five minutes, giving consumers a near real-time energy usage read out. This can be used to send signals to few locations or many locations.

This project has three main driving components: instrumented, interconnected, and intelligent. Instrumented are the smart meters placed throughout the power grid to get the information regarding the current power demand. Interconnected is the two-way communication systems that carry the messages from the source of electricity to the consumers home and back again to help participants track price changes and demand in near real-time. Finally, intelligent is the projects transactive incentive signaling system that uses certain algorithms to continuously set the cost of delivering electricity based on demand factors and other issues such as: power outages or faults in grid infrastructure.

One example of this projects benefit was a small town in the Pacific Northwest was able to avoid a potential power outage during a peak period because consumers scheduled their home water heaters to turn on during non-peak periods, which reduced the strain on an unreliable underwater cable.

This project partnered up with IBM to use there x86 servers and IBM information sphere software to create the two way communication system needed to conduct this project. This type of technology is desired for the project plans to install nearly eighty-thousand smart grid enabling devices such as smart meters and about twelve thousand smart grid responsive assets such as water heater load controllers, solar panels, battery storage units and backup generators.

5.1.1 Research Question Application

This smart grid demonstration is one of many other aspects of a smart city. The smart grid is the basic infrastructure of the smart city. Providing better power allocation and distribution amongst citizens is essential to the development of smart systems in a smart city. The sensors placed throughout the transmission lines and distribution lines will provide the future smart city with the information need to allocate power correctly and efficiently. Then the sensors placed in the home of consumers will allow the information to be processed into readable results of electricity usage associated with a price tag on how much usage has occur in the household. The in home sensors also allow for major electricity hogs to be turned off when not in use and or not needed, this is something that is currently hard to do with appliances like water heaters. The massive lithium ion batteries will store excess power for future reuse and allow the renewable resources to provide an effective amount of electricity to the smart city. The renewable resources are currently unreliable at best sources of power, but with this projects idea of implementing a massive battery to store excess energy these inconsistent power sources can be used to store energy when they are affective and also be able to store enough energy to be efficient. This project is just the beginning of the rise of a nationwide smart grid. The transactive control signal is the basis for future smart grids. The interactive controls it applies to both the system and the end users is revolutionary and not only does it give the consumer incentives to save money and use less electricity, but it allows for this to be a win-win for both consumers and utility companies, by promoting efficiency with incentives. The future is being laid down by this project and projects like this.

5.1.2 Case Model Smart Grid Evaluation

Characteristic Description Points WeightWeighted Points

Data Efficiency

No communication standard mentioned. We can hypothesize IBM has such protocols in place, however some risk is found in this section with the development of their own control signal. 80 40% 32

Communication

The two- way transactive control signal allows for communication between transmission, distribution, production systems and consumers home systems. System is still in development and is not fully digital. 75 30% 22.5

Server Efficiency/Security

Improves power allocation and grid usage during high use periods, while incentivizing efficiency for the end user. 100 15% 15

Sustainability

Will reduce the electricity cost for the consumers by giving them the ability to control their power output. This allows the power companies to be able to redistribute power and store power more efficiently. 100 10% 10

Ease of Use

The ability for consumers to be able to monitor their electricity use from their own home via a smartphone or tablet. But maybe difficult to use. 70 5% 3.5

Total

The Pacific Northwest smart grid demonstration project allowed for potential power faults to be avoid due to system testing. The Project does demonstrate aspects of the smart model, however need to ensure a communication/calibration standard is well documented and structured to ensure data is accurate and communicated correctly. 83

5.2 Smart Classroom Case Study

E-learning and smart classrooms have borne out of the need to make the classroom experience more interesting and enhance the student’s learning ability as well as improve academic results. The smart classrooms are the recent education product that will assist students to improve on their academic work and developed into a technologically conscious individual.

The Real-Time Interactive Virtual Classroom (RTIVC) allows a participant who is remotely located to receive live class feed and takes part in a live class through the use of audio and video in real time, and through internet connection. This device can enhance the learning experience, particularly for long distance learners. In addition to other smart devices such as projectors, PowerPoint presentation slides, education is going through a phase hugely improved through technology, and with more innovation in education. Smart classrooms reduce the cost for schools and student per month (Chaudhary, 2014).

The students now no longer have to be dependent on teachers for studies, the smart class and e-learning technologies helps students to cover up with their subjects sitting at home. E-learning is becoming popular among the students as this makes them independent. For students the e-class costs less than annual tuition’s fees. The E-learning and smart classroom provide the students as well as teacher to learn through a new techniques and too in a different and interesting manner.Benefits of Smart Class:

- Improves teachers effectiveness and productivity in class- It brings abstract and difficult curriculum concepts inside classrooms.- Makes learning an enjoyable experience for students.- Improves academic performance of students.- Enables instant formative assessment of learning out comes in class.- It also enables teachers to instantly assess and evaluate the learning achieved by their

students in class.

There are thousands of IT companies that develop new technologies daily, and there are many vendors that provide set up and software for the e-learning and smart classrooms. Ideally, the vendors work on projects such as setting up of equipment and the environments in schools among others. To establish the smart classroom, the following materials will be used; computers, speakers, and accompanying software and internet connectivity (Chaudhary, 2014).

Smart Boards are the center of the smart class; they were developed by SMART Technologies as an interactive whiteboard with a touch screen. It was first introduced in 1991 as a way for presenters to control Windows-based applications easily. More than 3 million SMART Board® interactive whiteboards have been installed globally in education, business and government settings. The annual revenue for 2014 was US$589.2 million. The projector and Smart Board are connected to the computer. Through the projector, an image of the computer screen is displayed on the Smart Board. The Smart Board then takes it a step further and acts as an interactive touch screen monitor for the computer. By touching the Smart Board, the user is able to click on buttons, highlight text and drop and drag items right from the Smart Board.

The Smart Boards are connected to the computer either wirelessly or through cables. The wireless connection works the same as WiFi or Bluetooth. Connecting through cables can be done with either a USB or serial ports. Using a wireless connection is preferred for larger rooms because it eliminates tripping over twisted cables. The projector is then connected to the computer.

The resistive technology used in Smart Boards is the same that is used with PDAs. This allows the Smart Board to be able to process the movement of a finger or pen tool when it touches the surface. The resistive technology is basically a sheet of thin resistive film over a sturdy backboard. When the finger or the pen tool glides over the resistive film, it causes the reflective film to touch the backboard. This is then sent as an analog signal to the computer. In some models, Digital Vision Touch is used for this function instead of the resistive film, which is a much better solution because it doesn't have the same limitations as the resistive technology.

Geeter Middle School and Samsung School solution

Many companies started investing and developing smart class. HP, SMART, Microsoft and Samsung are some of these companies. We will look at Geeter Middle School and their experience with Samsung Smart School solution.

Geeter Middle School is located in Memphis, Tennessee, United States, serves approximately 430 students in grades 6 through 8. It is part of Memphis City Schools, the country’s 23rd largest school district, with approximately 105,000 students in more than 200 schools. In August 2012, Geeter Middle School was classified as a Priority School by the Tennessee Department of Education. This placed the school among the lowest performing 5 percent of the schools in the state in terms of academic achievement. To improve academic performance and create interest in learning among its students, the school experimented with mobile applications on tablets. However, the technology did not provide an integrated learning platform or data to substantiate what factors affect student performance. The school looked for a solution that would enable teachers to interact more closely with students and enable students to interact with each other.

The district Instructional Technology (IT) department and school were committed to the initiative; so Geeter Middle and Samsung worked together to implement Samsung School solution. As part of the solution, the school received several teaching tools to help increase grade, test scores, and interaction in a sixth-grade math class. Samsung is provided the school with a Samsung Smart School Solution package consisting of 35 Galaxy Note 10.1 units, a 65inch interactive whiteboard (IWB) and a wireless printer.

The Samsung Smart School solution helps boost student retention rates by providing an interactive learning environment where they actively participate in the lesson. Students become more engaged in the subject matter with hands-on experience and collaboration in the classroom and beyond, helping them to retain what they learn.

The Samsung Smart School solution incorporates an eBoard and a network environment in each classroom. A central server in the school stores course content and user information. Teachers can either use a tablet or PC, which are mirrored to the e-Board, and can share their screen with students. Students can participate in the Samsung Smart School class using their tablets.

Samsung Smart School provides a dynamic student learning experience for real-time interactions between the teacher and fellow students. Using Samsung GALAXY Note 10.1 tablets and Interactive Teaching features, designed to enhance teacher-to-student interaction, students can actively participate in the learning experience. Implementation of this solution can result in better student engagement. Samsung Smart School Interactive Teaching features include:

- Screen Sharing: Teachers with tablets or PCs can display content on students’ tablets and students can share content and their notes with teachers.

- Screen Monitoring: Teachers can remotely monitor students’ progress and activities. Also, a student’s device screen can be shared on a large screen by using an e-Board for student presentations.

- Lock and Auto Launch: To help ensure proper and secure use of student tablets, teachers can remotely lock students’ applications, screens and input functionality.

- Group Activity: The Group Activity feature helps encourage interactivity and group participation among students. Included in the Group Activity feature are Joint Work and Group Discussion functions.

- Quiz and Poll: Teachers can create various templates to conduct quizzes or polls. Quizzes can be prepared by the teacher before class and polls can be administered during class.

- Whiteboard and S Note: Teachers can display multiple pages on their e-Boards. The included S Pen enables teachers and students to take private notes on their devices using the S Note function during class. The productivity functions provided in the S Note interface transform handwriting and drawn objects into typewritten text and perfect shapes.

- Communication: Teachers and student can communicate with the Messaging function. Students can ask questions or send their opinions to the teacher. Teachers can share public announcements about the school with the Notice Board function. Announcements are shown on the main screen when students log in on their devices.

- Contents Library: Teachers can upload a variety of class and learning materials. Students can download the materials they need onto their devices.

Cleon L. Franklin, director of the Office of Instructional Technology at Memphis City Schools, commented on the teaching experience using the Samsung School solution “I walked into a classroom where children had severe issues the year before, and now they were genuinely excited about math. Math anxiety is a common problem for the best of us. Students would freak out and think, ‘Do not call on me.’ With the system, we had the opposite reaction—they were eager to do the work. During one

math class, I heard a student say, ‘This was the best day of my life.’ How often does a student feel that way about a learning environment?” (Samsung, 2013).

5.2.1 Smart Model Evaluation of the Smart Classroom

Characteristic DescriptionPoints

Weight

Weighted Points

Data Efficiency

No communication standard mentioned. We can hypothesize Samsung has such protocols in place, however some risk is found in this section with the development of their own control signal. Service does show successful communication between multiple smart products. 80 40% 32

Communication

Strong localized communication of data. More infrastructure is need for the school, or even district level that will add risk and complexity. 70 30% 21

Server Efficiency/Security

Samsung Smart School have a central server in the school stores course content and user information. Teachers can either use a tablet or PC, which are mirrored to the e-Board, and can share their screen with students. Data servers where adequate for a small size sample, however investment into data infrastructure and IT security are needed. 70 15% 10.5

Sustainability

Smart classrooms reduce the cost for schools and student per month but depends more on electronics (upfront investments into the service). 80 10% 8

Ease of Use

Products/Servers are easy to use and learn. Old teachers may face some difficulty adopting to the new technology 70 5% 3.5

Total

Samsung Smart School improved the learning experience and made it easier for teachers and students to function. However risk and complexity can be found in scaling, security, and lack of clear communication standard. 75

5.2.2 Effect of Smart Classroom on the Learning Environment

Globalization has pushed technology progress in communication field to enables users to access and exchange information at any time and from any place in the world. Technology plays an important

role in education. Teachers get relevant digital resources such as animations and videos interactive virtual labs tools and use them as a part of their lesson plan in the class rooms that equipped with state of art infrastructure with custom designed electronic interactive board. This makes learning an enjoyable experience of students while improving their overall academic performance in school.

A study was conducted in Jalandhar district of Punjab to see the effect of smart classroom on students’ performance. The researcher has taken 60 secondary school students as sample by using simple random sampling technique. A study showed the effect of the smart class room learning environment on academic achievement of the low and the high achievers. The expert opinions were taken for the construction of the tests. The tests were prepared in English with 50 questions in science, students were asked to complete this in 50 minutes.

There was a significant difference in the effect of smart class room learning environment on academic achievement of both low and high achievers of secondary students in science. The results shows that the students taught through smart class have scored better academic achievement than students taught through traditional method. The reasons of performing well by students taught through smart class may be because smart class created much interest than traditional method and the enjoyable environment in class (Jena, 2013).

6.0 Implications of Smart Model on New Product Development

Based on our research and the evaluations of our cases studies smart products will need to be developed to fit into the smart model. The production team will need to make use of IT analyst and localized IT modeling to create an effective and marketable product line.

6.1 Smart Model Evaluation on New Product Development

Characteristic Description

Data Efficiency

Adoption of calibration/communicationstandard for example to ensure data is correct is extremely important for a smart product line. Localized model need to be developed by the production team to determine what data is relevant data, and capture it in an effective manner.

Communication

Smart products will incorporate smart sensors into the product to collect user data. This data then needs to be adapted into actionable information in the form of product features. Sensors are required to have a full digital signal output. Speed of communication is reliable and real time: implementation of MAC (media access control) and network layer adaptation.

Server Efficiency/Security

Data servers need to be of an adequate size for the service/product. Size needs easily adjustable according to demand/traffic. IT Security team needs to be employed and protocols developed to ensure consumer data is safe. Smart products should make use of cloud storage to decrease the cost and need of in-product data storage.

Sustainability

Business running the service practices improvement methods like Six Sigma. Investments made into long term cost reduction methods. Strong customer service and focus. This will decrease utility costs of the data centers and increase the margins of the products. It will also help with manufacturing costs and hold ups.

Ease of Use

Products/Servers are easy to use and learn. Content needs to be developed to: reduce switching cost, provide proper use instructions, and reduce customer service traffic. If the population believes your product to be complex to use, the product will never make it further than early adopters and fail in the mainstream market.

Smart products require huge investments into appropriate infrastructure and planning, for consumer data to be translated into an actual marketable feature. Companies who fail to implement all aspects of the smart model will fall short of a true smart product, and the product will be a failure in the main stream marketplace. Use of the smart model will give companies a clear guidelines, and important factors to account when debating funding a smart project. It will also assist the process of (1) inception, (2) development, (3) testing, (4) market, (5) maintenance, and (6) evolution.

Future Implications

Companies are becoming more innovative by creating a new generation a smart products and smart system. We went from smartphone to smart home, sensors and industrial automation system. 

Many consumers today are embracing the new trend and will continue to embrace the idea of smart system but the real question is: What will be the future of smart system and smart sensors in few years from now? Will the automated household be more efficient as a resource energy management? Or will the ideal Home of the Future remains elusive? Are system and smart sensor the new transition of the digital age? What will be the future of smart system at the industrial level? A predicted answer will assume that: by 2025, the connected home has become a model of efficiency, as people are able to manage consumption of resources (electricity, water, food, etc.…) which in fact places less of a burden on the environment while saving household money. At the industrial level more companies are trying to incorporate smart system into their existing system. 

Smart Home and Smart Sensors: more consumers will be transitioning from traditional homes to smart homes. The use of smart sensor and smart system will imply a high level of digital communication between products and the sensors in real time which will connect relevant data translated into actionable information. Thus consumers will be highly concern about privacy controls for safety and proper use of collected data. Manufacturers will be challenge to figure sophisticated software to protect consumers’ data. One of the major liabilities cost in this transition will be the cost of insurance for the automated home. More insurance companies will be looking into cost of liability for automated homes versus traditional homes, as it is a huge cost to consumer to install the system in their home. Insurer want to make sure that there is nothing left out in the new addition to home functionality. In an article wrote by Patrick Thibodeau from Computerworld last year, he stated, "If home automation can reduce insurance claims to fire, water damage and theft, insurers may become advocates for the Internet of Things technologies”. That could change the business model for the Internet of Things as it applies to home automation. Insurance companies may one day subsidize the cost of installing the technologies, or possibly cover the entire bill.’’ This could be a big change for homeowners and smart system and product manufacturer. Many smart products need to be able to predict and remember user preferences, create seamless installation and use of product as well as actionable data used to increase the consumer’s perceived product values. So consumer will need programmable sensors to translate data into marketable products. 

Smart Grid: the Smart Grid will allow regional power producers at the macro level to communicate directly with individual commercial or residential buildings at the micro level. Having such technology will help services and industry have a greater control of the use energy, visualization of balance between cost of energy efficiency and cost of integration of smart city and smart grid; which could become route or alternative to the smart green environment that maximizes efficiency and reduce waste. 

Smart Class: The Smart Class concept at the moment have not been fully integrated in the education system, however if it happen to show positive results many school may switch from traditional learning methods to a smart learning method. This will imply a huge capital investment from

parents, government and schools to make it happen. The real question is, are people willing to go that far with Internet of Things? What will the impact on the mental intelligence of the future generations? The adoption is this system will raise a lot of the conflict of interest for the whole industry that built the education system. The future of the Smart Class is still unclear. 

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