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No. 87 - Internet of Things: A new avenue of research

DigiWorld Economic Journal - C&S - 30/09/2012 No. 87 - Internet of Things: A new avenue of research

3rd quarter 2012

The Internet of Things (IoT) endows objects with intelligence and ability to communicate, connecting people and machines anywhere, anytime. IoT applications exist in various domains: health, domotics, security and control, the supply chain. IoT exemplifies - and is driven by - major changes in technological convergence, pervasiveness and ubiquity, increases in mobility, traceability, and so on. This special issue aims to develop a better understanding of what the Internet of Things is and what its potential impacts may be. This Dossier includes contributions from different fields of research in order to grasp the various dimensions of IoT in a multidisciplinary perspective (law, economics and management, political science, etc.). With also two interviews with Rudolf van der BERG, Economist & Policy Analyst at OECD, and Nicolas PAUVRE, Innovation Project Manager at GS1 France.

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Internet of Things:

A new avenue of research

Eds: Pierre-Jean BENGHOZI, Martin CAVE,
Yannick MEILLER & Samuel ROPERT

By the Editors


Anyone's Game: Economic and Policy Implications
of the Internet of Things as a Market for Services
Jaclyn SELBY

Halos Networks: A Competitive Way to Internet of-with Things

The Role of Networking Standards
in Building the Internet of Things

William WEBB

How Can the Internet of Things Help
to Overcome Current Healthcare Challenges

Jérôme COUTURIER, Davide SOLA,

The Internet of Things, Legal Aspects
What Will Change (Everything)…


Extending the Internet of Things


Rudolf van der BERG, Economist & Policy Analyst, OECD
Conducted by Martin CAVE

Nicolas PAUVRE, Innovation Project Manager, GS1 France
Conducted by Samuel ROPERT

Other Paper

Quality of Service in Cost Models


Firms and Markets
The ICT Landscape in BRICS Countries: Russian Federation
Valentin MAKAROV, Stefan SCHANDERA & Jean-Paul SIMON

Technical Innovations

Satellite M2M: The satellite M2M market, 2012-2016

Book review

Marie DEMOULIN (Ed.): L'archivage électronique et le droit

By Isabelle POTTIER

Author biographies


- JRC-IPTS (CE), Brussels, - October 25-26th 2012 - Dynamics of Media and Content Industries
- Policy Seminar, Montpellier, France - November 14th 2012 - Internet Economics, Big Data & Privacy
- DigiWorld Summit 2012, Montpellier, France - November 14th-15th 2012 - Game Changers, Mobile ● Cloud ● Big Data
- ITS Biennal Conference, Bangkok, Thailand - November 18th-21st 2013 - Moving Forward with Future Technologies:
Opening a Platform for All

- EURO CPR 2013, Brussels, March 21st-22nd 2013 - A Digital Agenda in Search of Evidence: Issues and Trends

Anyone's Game: Economic and Policy Implications of the Internet of Things as a Market for Services
Jaclyn SELBY
Key words: Internet of Things, ubiquitous computing, big data, cloud computing, policy.
Research suggests the future of the Internet will be defined by ubiquitous computing: a networked environment in which smart objects, called 'Things,' are imbued with identification data and micro-processing power to form an Internet of Things (IoT). Data production across the Internet continues to proliferate at exponential rates. Thus, this paper aims to provide an introductory framework for the IoT as a market for value extraction from captured data, supported by cloud computing and semantic web services. The paper outlines the technological basis for the IoT in brief, as well as assessing the current state of scholarship in this area. The IoT is then divided into four market segments by the type of end-user addressed by service providers (individuals, firms, city-government, national-government) in order to highlight and illustrate the major policy implications of this emerging services market.

Halos Networks: A Competitive Way to Internet of-with Things

Key words: Internet of Things, ubiquitous computing, wireless networks.
This paper presents Halos Networks as a competitive architectural paradigm for developing future Internet of-with Things. A Halos Network is like a wireless network spontaneously emerging through the interactions of distributed resources embedding wireless communication capabilities. Halos Networks are capable of delivering services and data virally through multiple devices, machines and objects interconnected with one another. Halos Networks potential impact is discussed and guidelines on future developments are provided.

The Role of Networking Standards in Building the Internet of Things
William WEBB

Key words: Internet of Things, wireless, standards, Weightless, machine-to-machine, M2M, ETSI, IEEE, white space, IPR.
The Internet of Things (IoT) promises widespread connection of sensors and devices such that smart cities, connected transport and other similar visions can be realised. However, to realise this a new wireless technology is required that is optimised for this particular application, providing very low cost, extremely long battery life and excellent coverage. This wireless technology needs to be an open global standard in order to foster a vibrant eco-system of key players. This paper discusses the issues involved in developing standards in the wireless telecommunications space before using a possible new IoT wireless standard as a case study to illustrate the issues with standardisation.

How Can the Internet of Things Help to Overcome Current Healthcare Challenges

Key words: Internet, healthcare system, diabetes management, cardiac arrhythmia.
Healthcare systems are nowadays facing several challenges starting from an ageing population to a growing demand for more advanced and better healthcare outcomes. This leads to an increase of healthcare costs as well as a need for change in healthcare systems in terms of better and more efficient outcomes. Our paper aims to bring some preliminary evidence that the Internet of Things can improve the quality of healthcare and/or reduce the cost of it. In order to achieve our objective we have reviewed five recent Internet of Things solutions, from monitoring cardiac arrhythmia and congestion in heart failure, to management of diabetes and obesity prevention. Our findings show that the Internet of Things has a significant potential to contribute to the overall decrease of healthcare costs while increasing the health outcomes if it satisfies two conditions, namely if it enables the system management of a particular disease and the mindset and behavioural changes of the stakeholders in the system.

The Internet of Things, Legal Aspects: What Will Change (Everything)…

Key words: Internet of Things, privacy, personal data, artificial intelligence, network, Web 3.0, IoT.
After the birth of the Internet, the rise of Web 2.0, here comes the Internet of Things. Internet has led us to adopt special law, digital economy law…Web 2.0 has urged us to rethink core legal concepts such as liability and ownership and introduce notions such as sharing and availability. The Internet of Things – which no one doubts will be the next technological revolution – will be a legal tsunami, the intensity and magnitude of which are unknown to date.

Extending the Internet of Things

Key words: Internet of Things, directed graph, physical context, multisensor data fusion, pattern recognition.
This article proposes a theoretical and practical extension of the IoT, taking in all "things" that can be sensed by sensors, without requiring them to be fitted with a tag or a digital network interface. These physical entities, whatever they may be (legacy appliances, passive items, subsets of physical space), become nodes of a broader network, extending the internet of sensor/actuator devices. We explain how such an evolution for environment-to-information interfaces draws upon a similar, long-standing evolution of human-to-information interfaces. Multisensor acquisition of physical context supports this extended IoT, bypassing the need for network-ready identification of target entities. We describe a three-layer reference architecture for an infrastructure supporting the integration of applications into the extended IoT. We show on a few examples how this can expand IoT applications and endow them with features of robustness, scalability and self-configurability.

Quality of Service in Cost Models

Key words: QoS, cost model, LRIC, NGN.
Several network operators have been deploying Quality of Service (QoS) techniques that help improve customer satisfaction and can have an impact on the cost of telecommunications services. As Long-Run Incremental Cost (LRIC) models are used in various jurisdictions to derive the cost of regulated services, a question that needs to be addressed is how QoS concepts can be included in an LRIC model. This article pursues two goals. First, it describes the main QoS techniques and strategies that could be taken into account in a cost model. Second, it discusses the impact of QoS concepts on an LRIC model. The article shows that the introduction of QoS concepts into a cost model involves a critical review of the following parameters: cost drivers, cost of network elements, traffic supported by network elements, and usage factors.
The Editors

Pierre-Jean BENGHOZI is Research Director at the National Centre for Scientific Resarch (CNRS) and Professor in Ecole polytechnique (Paris, France) where he is running the Research Unit in Economics and Management and is in charge of the "Orange" Chair dedicated to Innovation and Regulation in Digital Services. He developed a research group on Information Technology, Telecommunications, Media and Culture. His current projects draw attention to adoption and uses of ITC in large organizations, structuring of e-commerce and ITC-supported markets and supply chains, especially in creative industries. Pierre-Jean Benghozi publishes on these topics in French and English, including a reference book on the internet of things. He is frequently requested as an expert by public bodies and private firms.

Martin CAVE is visiting professor at Imperial College Business School, and a Deputy Chair of the UK Competition Commission. In 2010/11 he was BP Centennial Professor at the London School of Economics, and from 2002 to 2010 a professor at Warwick Business School. He is a regulatory economist specialising in the communications sector.

Yannick MEILLER is Affiliate Professor at ESCP Europe. Yannick holds a Ph.D. in Computer Science (Artificial Intelligence – Industrial systems). His professional activity is threefold: affiliate professor at ESCP Europe, entrepreneur, and expert for Oséo Innovation (French innovation funding organization). Yannick has a wide and diverse experience of innovation, of intermediation between research and industry, and of exchanges between technologies and management sciences

In 2005, he founded the company NOVAPTEN – specialized in innovation management and collaborative project management. 

Within ESCP Europe, Yannick completes its scientific research as a member of the RFID European Lab.

Samuel ROPERT has been an IDATE Consultant since early 2007. His assignments involve specifically technologies expertise for connected devices, including RFID, Internet of Things and smart grid. He is in charge of M2M market at IDATE. His activities are especially focused on both technological and marketing innovations. Before coming to IDATE, Samuel worked as a consultant for NPA Conseil (a French media consulting company). Samuel graduated from leading French engineering school the Ecole Nationale Supérieure des Télécommunications de Bretagne (Telecom Engineer diploma). He holds also a master degree in Physics of Université de Bretagne-Sud and also in Politics from Sciences-Po Rennes.

The interviewees

Rudolf van der BERG has been an Economist/Policy Analyst at the OECD, since 2011. Here he has worked on topics regarding M2M, Smart networks, telephony and internet interconnection and telecommunications policy. He started his career at the NDIX Internet Exchange Point located in Germany and The Netherlands. He worked five years at the Ministry of Economic Affairs, first with a responsibility towards lawful intercept and he negotiated the EU Data retention directive. Later he wrote the first documents on Net Neutrality for the Dutch government and was seconded to the OECD to write on the future of Broadband networks. As a management consultant for Logica he worked with clients on structural separation of energy companies, smart metering, information exchange in the energy sector and next generation number portability. It was here where the topic of liberalization of the mobile market for M2M first became apparent through a clients question on how to move 10,000 devices from one operator to another. Subsequently he wrote analysis on the impact of liberalizing the market for the Dutch Ministry of Economic Affairs and a discussion paper for the OECD.

Nicolas PAUVRE is in charge of managing innovation projects for GS1 France. He is involved in various national and international projects aiming at enhancing supply chains performance through the adoption of standards and technologies. Prior to join GS1, he worked as a Project Manager on the implementation of Data Services platforms for the Orange group.

Nicolas is a graduate of the National Institute of Telecommunications (INT - Evry, France). Parallel Studies with INT led Nicolas to obtain a B.S degree in Management Science specialized in Marketing. He is also completing his course of study with a Certificate in Management of IT Projects attending MBA classes at the University of California Riverside.

The Authors

Eric BARBRY is a French attorney-at-law, head of the "Digital Law" department of the Alain Bensoussan Avocats law firm. His practice includes information systems security, cyber surveillance and digital criminal law. He is a lecturer at Telecom ParisTech and co-founder of the Cyberlex Society

Maxime BAUDRY joined IDATE in April 2006, and has since become our Director of Research. His main areas of analysis are the satellite industry, the telecommunications services market and operator strategies. Before coming to IDATE, Maxime worked for two years for Aon Explorer, a strategic consulting firm specialised in the space industry, where his work focused primarily on industrial analysis of satellite telecommunications for space agencies and the sector's equipment providers. 

Mr. Baudry holds a Masters degree in Technology & Management (Ecole Centrale de Paris), and is a graduate of the Ecole Multinationale des Affaires/Multinational Business school (E.S.C Bordeaux & Fachhochschule Münster's ERASMUS programme).

Jérôme COUTURIER is an associate professor of strategy and management at ESCP Europe, in London. He lectures in business strategy, international management, business transformation and innovation, and is academic director of several executive programmes. His work and research concentrate on enterprise and business transformation, international development strategies, and more generally on growth strategies. He is author of articles, policy papers, book chapters, case studies and papers presented at international management conferences. Jerome is an active member of the Health Management Innovation (HMI) research centre of ESCP Europe. He also advises organisations in Europe and the US.

Vânia GONÇALVES graduated in Informatics and Computer Engineering in 2002 at the University of Porto and holds a Master degree in Technology Policy from the University of Cambridge. Since 2008, she has conducted research at IBBT-SMIT, Vrije Universiteit Brussel on business model analysis and policy issues surrounding media and ICT, with particular focus on mobile communication markets and spectrum management.

Valentin MAKAROV graduated from Leningrad Aircraft Instrumentation Institute (now State University of Space Instruments, St.-Petersburg) and successfully attended Manchester Business School and the Diplomatic Academy of Russia. Until 2000, he devoted his life and energy to extending economic and cultural ties of St. Petersburg and Russia within the country and overseas, while working in the Permanent Delegation of Russian Federation to UNESCO, executive director of the "Association of Free Economic zones of St.-Petersburg" and deputy chairman of the Committee of External Relations of Administration of St.-Petersburg. In 1999 he was elected the president of the "St Petersburg Consortium "Fort Ross" IT services", then after amalgamation with the National Software Development Association he became president of the united "RUSSOFT Association" in 2004, which became the unique voice of the software development industry in Russia. Valentin got significant experience of lobbying interests of the industry in the State, of conducting Nation-wide market studies and organizing marketing activities in Russia and abroad (Russian IT-Seasons, Road-shows, ROSS Forum, etc.). He was also representing APKIT (Russian IT and Computer Association) in WITSA in 2002-2007, 2012.

Antonio MANZALINI received the M. Sc. Degree in Electronic Engineering from the Politecnico of Turin. He started with activities on technologies and architectures of future IP over optical transport networks. He is author of a book on Network Synchronization and has several papers published in conferences and journals. He has been Chairman at ITU-T and has been actively involved in several EURESCOM and European Projects. In 2008 he was awarded the International Certification of Project Manager by PMI. He is now joining the Future Centre in the Strategy Department of Telecom Italia. His current research interests are in the areas of theoretical foundations for automomic and self-organizing networks, primarily for design and management of software defined networks and future Internet.

Roberto MINERVA is Head of Innovative Architectures within the Future Centre in the Strategy Department of Telecom Italia. His job is to create advanced scenarios derived from the application of emerging ICT technologies with innovative business models. He has had many responsibilities within Telecom Italia Lab: Network Intelligence, Wireless Architecture and Business Services Area Manager. Roberto has a Master Degree in Computer Science. Since 1987 he has been involved in the development of Service Architectures for Telecom (TINA, OSA/Parlay and SIP), in activities related to IMS, and in the definition of services for the Business market. Roberto is author of several papers published in international conferences, books and magazines.

Isabelle POTTIER, attorney-at-law and head of the research and publications department of the law firm Alain Bensoussan; she has particular expertise in drafting studies on the assessment and legal protection of new technologies as well as on electronic evidence and archival.

Gilles PRIVAT received engineering and doctoral degrees in systems theory from Télécom ParisTech Institute. He has been a research associate with CNRS and a research engineer and head of a research group in a government telecommunications research institute. He is currently a corporate senior scientist and project leader with Orange Labs, where he pioneered the research domain of "smart devices" that has henceforth branched out into Ambient Intelligence/Smart Spaces and M2M/Internet of Things. He is still pursuing a cross-domain range of expertise in this purview, with a current focus on applications of the IoT to smart homes, cities and energy management. He has authored or co-authored more than 60 peer-reviewed publications and holds 12 patents.

Cristina RAICIU is a senior research analyst at 3H Partners in London and Bucharest. She manages a number of research projects focusing on a variety of topics such as pharmaco-economics, health technology assessment and health technology platforms. Cristina's research interests include performance dialogue and healthcare management. She has co-authored several business and academic articles, as well as book chapters.

Juan RENDON SCHNEIR is Assistant Professor (on leave) at Pompeu Fabra University in Barcelona, Spain, and collaborates with Huawei Technologies in Western Europe on regulatory and financial affairs. He obtained a PhD degree in Telecommunications Engineering from the Polytechnic University of Catalonia in Spain in 2001. From 2008 until 2011, he was Senior Consultant in the Cost Modelling and Internet Economics Department at WIK-Consult in Germany. He has been initially Lecturer and then Assistant Professor in the Department of Information and Communication Technologies at Pompeu Fabra University. He has also been Visiting Professor at ITAM University in Mexico and Visiting Researcher at Karlstad University in Sweden. He previously worked for the telecommunications companies Telefónica and Italtel. He has worked in the field of the optimisation of transport protocols for 4G, UMTS and GPRS. Currently, his research interests include broadband deployment policies, technology adoption and financial and regulatory aspects of telecommunications systems. 

Giovanni SCARSO BORIOLI is assistant professor of operations management at ESCP Europe Business School, on the London campus. He also teaches several other courses at executive level. His research interests focus on the implementation of large-scale change in organisations, in a context of lean management. He is also an active member of the Health Management Innovation (HMI) research centre where he applies his expertise to the healthcare sector. Giovanni is a regular advisor of European companies on operational challenges.

Stefan Holger SCHANDERA is an innovation development professional focusing on Eastern European and Central Asian transition economies with a sector focus on ICT, agriculture, and bio-energy and with strong emphasis on innovation collaboration. He is facilitating the business incubation and innovation initiative of the infoDev program of The World Bank in the Eastern European and Central Asian region. As a research associate at the German Biomass Research Centre (DBFZ), Stefan Schandera is coordinating the development of scientific R&D networks and co-operations between Eastern European and German scientists and research organizations in the bio-energy field. Since 2002, Stefan Schandera has been living and working in various CIS countries and regions including Central Asia, Southern Caucasus and Eastern Europe. 

Prior to that, he co-founded and managed a public relations company in Germany, served as executive country manager and was elected Vice Chairman of a political youth organization during early transition stage in East Germany. Later on, he managed a business consulting company connecting academia to the business community. At the same time, he lectured at Dresden universities in marketing and start-up management. On mission with the United Nations Volunteers from 2002 to 2004, he supported the start-up process of a business incubator in Shymkent, Kazakhstan. Stefan holds a Master degree from Free University (Freie Universität) Berlin (East European studies) and University of Applied Science Dresden (Diplom-Kaufmann/FH).

Jaclyn SELBY is a Ph.D. Student and Annenberg Fellow at the University of Southern California's Annenberg School for Communication. Prior to joining Annenberg, she was a Senior Researcher at the Imaging Science and Information Systems (ISIS) Center, a global leader in disease and disaster intelligence. She has recently held research positions at the Center for Communication Leadership and Policy (CCLP) and the Center for Democracy and Technology (CDT) and is a contributor to Foreign Policy Digest. 

Jaclyn received her BA (Economics; Media Studies) from Sarah Lawrence College and an MA (Communications, Culture & Technology) from Georgetown University with certification in Business Diplomacy from the Walsh School of Foreign Service. Her current research interests address global Internet governance, media economics, and management strategy.

Jean-Paul SIMON is founder and director of JPS Public Policy Consulting, a consulting firm specialised in media/ telecom law regulation and strategy, January 2007-December 2009 and since January 2012. He has been Senior scientist at the Institute for Prospective Technological Studies (IPTS), European Commission, Directorate-General JRC, (Sevilla, Spain) January 2010-January 2012. He works on the economic assessment of the IT sector, the IT sector in BRICs countries and the media and content industries. Prior to that he held different positions in the industry. He holds a Ph.D. in Philosophy (1975) and is a graduate from the Ecole des Hautes Etudes Commerciales (HEC) (econometrics) 1971. He has written several books and articles on communications and public policy. He is a frequent speaker on telecommunications and media in Asia, Europe and the USA. He is the co-editor (with Giuditta de PRATO and Daniel NEPELSKI) of the forthcoming book: Dancing with tigers. IT in Asia, from Chandos.

Davide SOLA is an associate professor of strategy and management at ESCP Europe, in London. He lectures in business strategy, HR management, business transformation and innovation, and manages several executive programmes. His research interests are in corporate transformation, strategic renewal, entrepreneurship across industries with a particular focus on the healthcare sector. He is author of numerous articles, policy papers, book chapters, case studies and presents regularly at international research conferences. Davide is a researcher in the Health Management Innovation (HMI) research centre of ESCP Europe. He is also active as strategic advisor supporting leading enterprises and governments in Europe and North Africa.

William WEBB is CTO and one of the founding directors of Neul, a company developing the Weightless machine-to-machine technology and network, which was formed at the start of 2011. Prior to this William was a Director at Ofcom where he managed a team providing technical advice and performing research across all areas of Ofcom's regulatory remit. He also led some of the major reviews conducted by Ofcom including the Spectrum Framework Review, the development of Spectrum Usage Rights and most recently cognitive or white space policy. Previously, William worked for a range of communications consultancies in the UK in the fields of hardware design, computer simulation, propagation modelling, spectrum management and strategy development. William also spent three years providing strategic management across Motorola's entire communications portfolio, based in Chicago. William has published 12 books, 90 papers, and 18 patents. He is a Visiting Professor at Surrey University, a member of Ofcom's Spectrum Advisory Board (OSAB) and a Fellow of the Royal Academy of Engineering, the IEEE and the IET where he is a Vice President. His biography is included in multiple "Who's Who" publications around the world. William has a first class honours degree in electronics, a Ph.D. and an MBA. 




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