THE WEB IS NOW

UBIQUITOUS, IN OUR
HOMES, IN OUR BUSINESS

INTERNET

OF THINGS
01
02

The role of payments in

the Internet of Things
The Internet of
Things, booming
business models

03
04

INNOVATION TRENDS SERIE

Four reasons to put

the Internet of Things
in your life
INF0GRAPHIC

Internet of Things

05
06

INTERVIEW

ANTONIO SAINZ
Wolfram
Data DroP

01
The role of payments in
the Internet of Things
The rapid rise of the 'Internet of Things' has opened up
spectacularly the possibility of everyday devices, such as like
refrigerators, going beyond their traditional functions to
become payment platforms. But, is it realistic to imagine an
'Internet of Payment through Things'? ( )

The arrival of such devices en

masse in our daily lives could
be just the first step toward
the development of
connected houses, with a
wide range of coordinated
devices equipped with
sensors, allowing them to
detect our daily activities and
anticipate our needs based on
this information. And this,
obviously, is where payments
2.0 comes in. The growth of
the Internet of Things makes it
urgent to table a series of
questions:

INNOVATION TRENDS SERIE MARCH 2015

The opportunity for new

business models

Thinking about changes in the

user experience

The possibility of new offers

and services is now opening
up, especially in relation to data
stored as the result of
monitoring our daily activities.
For example, we will be able to
link financial benefits or
penalties with the monitoring
of user activities (for example,
intelligent scales can allow
health insurance providers to
reward their customers for
meeting monthly weight loss
targets).

Obviously, our experience as

users will not be the same if
our refrigerator depends on an
external device (such as our
smartphone) to make
payments compared to it
hosting our credit card or
Paypal account data and thus
permitting automatic
payments. As explained by
Mickey Ristroph, CEO of
Mutual Mobile, a team of
designers and engineers
helping companies to develop
devices, the trick is for the user
not to have to think about
payment processes or the type
of technology that makes them
possible in the course of their
daily activities. In the Internet
of Things payments should be
invisible and transparent.

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

purchased, installed and started

up, and they can operate
indefinitely without requiring our
attention, making it less likely that
we will notice if they not operate
normally.

The need for new financial

information security
systems ( )
One of the major problems that
payments in an Internet of Things
will have to face is that we do not
use these 'things' in the same way
we use other devices connected
to the internet up to now (PC,
tablet, smartphone, etc): they are

However, many studies have

detected high percentages of
smart appliances running and
connected to the Internet without
their users having taken the
trouble to change their default
settings (with no password or an
insecure password). In some
cases, this was found when
investigating avalanches of
spamcoming out of such devices.
If the time comes when
payments are a key element in
the Internet of Things, we will

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

have a problem if manufacturers,

developers and users do not
place greater emphasis on
security than they have up to
now. And the problem is
compounded when we have to
take account of aspects such as
devices being used by multiple
users, who in many cases will not
share a family nucleus (as is the
case for vehicles).
In this context of serious risk to
our financial data, banks, thanks
to their position as trusted
institutions, could play a
significant role in protecting
such data, since they already
have their own technological
infrastructure ( ).

02
The Internet of Things,
booming business models
The Internet of things has been considered for some years as one
the biggest trends, and it looks like 2015 will be its great year. We
already know what it offers, although there are major challenges
ahead. What changes will it bring? Many, and these are the
sectors that will drive its growth and expansion ( ).

The Internet of things (IoT) is a

concept that dates back to the end
of last century and is related to
connecting everyday objects to the
Internet, but as technology
continues to advance, it becomes
more important in the disruptive
innovation segment.
This object-to-object ( ) or
multiobject connection using
different communication protocols
opens up a vast field of
applications in everyday life and a
new action-reaction approach in
events in which human beings are
not always involved.

INNOVATION TRENDS SERIE MARCH 2015

The concept is simple: taking

any everyday object and
connecting it to the Net, with its
utilities and the multiple uses
that can be given to that object
in the interconnection with
communication with third
parties. From transfers or
interconnections via WiFi,
to much more complex
communication protocols, we
can find from smart sneakers
that monitor our running to
biomedicine applications that
control the proper operation of
a pacemaker and anticipate
critical situations for the patient
according to the data extracted.
This is the future, and these are
the key business models:

Domotics, key in the Internet

of things ( )
Did I switch off the light when I
left? Did I turn off all the
faucets? Could the heating be
turned on based on the outside
and room temperature? All
these questions that we have
asked ourselves many times
outside our home will have an
answer in the very short term

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

with the boom in domotics and

the interconnection of our
home's appliances.
Tasks as complex as planning
our home's energy efficiency,
checking damage to our
installations or adapting the use
of our household appliances will
become key innovation niches
and business models in 2015.

Biotechnology and health,

monitoring our lives
The implementation
of biometric control
systems for our body, the
control of our vital signs,
nutrition, sleep and physical
activity, is the best way of

preventing problems and

applying corrective methods
on our health. IoT is combined
with global information
processing and subsequent
decision-making using systems
as simple as having
interconnected clothes,
physical exercise control

systems in the sneakers or the

use of multiple wearables that
obtain all the information we
can provide. Health and
personal care is an emerging
sector where the development
of new business models is
already present in cases
like Zentox and Xtintia Corp.

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Microtargeting, a key niche

for the Internet of things
Microtargeting refers
to advanced market
segmentation at individual level
and its expansion could be key
in fashion and accessories if we
are capable of monitoring and
identifying the usage trends of
consumers. For example, a
runner who lacks the right
sneakers or the use of clothing
better suited to the usual
environments opens up a new
horizon for marketingproducts

and services with much greater

segmentation than the usual
marketing techniques.
The motor industry and the
future of smartcars
Can we imagine a vehicle that
is capable of detecting the best
route in a city in real time to
avoid traffic jams or traffic
lights? This is possible as long
as we have an interconnection
between the car or auxiliary
device and the existing traffic in
real time.

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

03
Four reasons to put the
Internet of Things in your life
One in four users recognizes that he or she has Internet of Things devices because of the savings it
generates, while 19% opt for these devices for their convenience and 16% for reasons of security,
according to the GSMA study conducted by KRC Research ( ).
In order to save
When we talk about the Internet
of Things we are talking about a
home or office that are
connected: with an intelligent
electrical system where lighting,
temperature and appliances such
as the washing machine or fridge
are connected to the Internet ( )

and programmed to improve

not only well-being in the home
but also to achieve a reduction
in electrical bills.
In fact, home automation is
implemented in one in four
homes in Germany, the UK,
Japan, and the US. Twenty-three

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

percent of those already have a

security system connected; 24%
boast a lighting system; another
24% say their washing machine
is connected to the Internet; and
another 24% say their
thermostat is connected,
according to the GSMA study
conducted by KRC Research,

The Impact of the Internet of

Things. The Connected Home.
In the current market, with a
connected energy system
consumers can save about 20%
per month, which can result in
savings of up to 250 euros per
year. With these ownership
statistics in mind, the

dara Concerning user intentions

should be highlighted, given
that eight out of ten
respondents want to have
thermostats and lighting
connected; and over six of 10
their vacuum cleaner, the lawn
mower, the oven, or the fridge,
among other home devices.

SAVING
20% MONTH

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

For security and protection

Demand for security systems
connected in the home or office
is increasing and the main
reason is the protection they
offer. According to the study,
the main benefit of this
connection is to be able to warn
the head of the family when
some danger occurs or the
normal routine is altered.
Therefore, eight out of ten
respondents say they want a
connected security system.
These systems use sensors to
control ( ) when doors or
windows open and when there
is movement inside a property,
whether it is a home or
business. In addition, they make
it possible to control these
functions remotely, using a
smartphone. For instance, if you
are on a trip and want to give

the impression that someone is

in the house, you can activate
automatic switching of lights at
a specific time, or turn or the
radio from time to time.
The increase in security
provided by these systems
receives almost unanimous
approval: fifty-seven percent
of those who already have it

highlight a "significant
increase in their feeling of
security", while another 42%
said that their security
sensation had increased a
little".

These two first advantages,

savings and security, are two
of the most valued by
consumers, who prioritize

Ranking Connected
Security System
Benefits

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

connected energy and

security. As a matter of fact,
following computers, video
consoles, smartphones, and
tablet PCs, intelligent meters
appear to be the most
frequently owned connected
devices in the home, according
to the GSMA study.

For convenience
To be able to remotely control
the objects in your home is no
longer science fiction.

Which connected device are you most

likely to use in the next five years?

It is the ability to be able to

remotely check on an
apparatus, its operation, to
turn it on or off... we now live
in a world in which one no
longer has to return to the
office to check whether a door
has been left unlocked or a
machine left on.
To relieve the anxiety that
occurs when one cannot
double-check something is a
priceless convenience.

Source: GSMA
INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

For information
The exchange of
information that can be
relevant for a specific activity
is another factor motivating
users to have various devices
connected.
For instance, a connected car
can detect that its owner and
family are travelling and, using
a mobile device, automatically
switch off light of heating and
activate the security system.
Almost all respondents
highlight that it is useful for all
appliances to be able to
communicate and exchange
information at all times and
without glitches, to generate
a specific "lifestyle" in our
connected home. Forty-four
percent say they are very
interested and 45% somewhat

interested in this aspect.

As we have seen in this
example, the connected car
remains one of the most
important amount Internet of
Things devices. Almost half of
the respondents (43%) say
they have a connected car,
i.e. using satellite navigation,
and proof of this growing
interest is the space devoted
to this in the Mobile World
Congress 2015, where many
intelligent technology novelties
in the automotive world were
introduced.
Still, interest for other
connected objects is also
growing considerably, such as
health monitors (68% report
they are interested in these
devices); activity monitors
(63%); and elderly persons'
monitors (61%).

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Among activity monitors, for

instance, respondents
highlight the connectivity of
the different electrical devices
that can determine the
probability of a defect or
breakdown by sharing their
use information . These data
may be used to perform a
diagnostics and detect the
failure with more precision
and to offer the manufacturer
improvement options for
future devices.

The monitoring of health devices

also offers key information of the
patient for his or her doctor. For
instance, a person with diabetes
can use a connected blood sugar
monitor to conduct regular
readings to control his or her
sugar and insulin intake. This
type of monitoring is also very
useful to care for elderly people
and babies, to follow their activity
and be able to protect them.

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Savings, security,
convenience, and
access to information.
There are four main
reasons for you to
consider entering the
world of the Internet of
Things.

04/INFOGRAPHIC
Internet of Things
OECD has analyzed a typical family of four in a
developed country to know how many connected
devices are on a home. They had 10 devices
connected in 2012, they are likely to have 25 in
2017, and up to 50 in 2022.
Share on Pinterest

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

05/INTERVIEW
The Internet of Things
revolution enables us to access
real-time information about our
ANTONIO SAINZ
surrounding environment
An increasing number of everyday objects
are being incorporated into the so-called
Internet of Things (
): they connect to
the net and interact between themselves
and with people. It is a new generation of
technology that requires professionals who
specialize in the development and
application of these new techniques. So we
spoke to Antonio Sainz, one of the people
behind the new post-graduate degree in
the Internet of Things at Isabel I University.
INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

According to Cisco, over 99%

of things in the physical world
are not yet connected to the
Internet but, by 2020, 37
billion smart things will be
connected up. Are we taking
about the next industrial
revolution?
The Internet revolution brought
with it the streamlining of
multiple processes and the
spread of ubiquitous, accessible
communication while laying the
foundations for an enormous
source of knowledge and data
storage.
The breaking down of barriers
between user and machine,
combined with machine-tomachine communication,
represents yet another step
forward in this revolution, a
fresh impetus in which systems

cooperate with each other,

processes are self-sustaining and
evolve proactively, and control
over our surrounding
environment becomes ever
more effective.
This will all give rise to a new
technology wave ( ) which,
once embodied in new services
and inventions, will drive
technological development and
socioeconomic growth over the
coming decades.
In what ways can the
Internet of Things change
our everyday lives?
Thanks to IoT (Internet of
Things) technology, we are
seeing an explosion of new
devices that connect both to
each other and to the net. This,
in turn, is creating a situation

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

whereby huge amounts of realtime information about our

surrounding environment is
now readily available to us.
So much information about our
surrounding environment can
enrich our experience and
simplify our day-to-day
activities by way of new services
ranging from an optimized use
of energy (with the
corresponding savings), through
to an added sense of security
and confidence when going out
or leaving our pet alone at
home.
The combination of new
interconnectivity technologies,
information-sharing paradigms
and user-centered services
forms the foundations of this
revolution, which is already
upon us and is bringing new
opportunities every day.

Smart Home, Smart City,

Energy efficiency... in which
ambits are connected objects
going to be most useful to the
user?
The Internet of Things ( ) is
applicable to many ambits and
will have an important role to
play in all of them. The
advantages will be seen from
many perspectives. For
instance, a domestic user will
have greater control over their
home and be able to regulate
the conditions of comfort by
measuring different parameters
such as temperature and
humidity and, based upon these
measurement, adjust the air
conditioning systems
accordingly, leading to
significant energy savings.

Being able to connect up

everyday objects, such as a
plant or an aquarium, will enable
users to monitor them and then
act accordingly based on the
measured parameters. We will
have access to previously
unavailable data.
Through these connected
objects, cities will become
smarter, creating an ecosystem
that can be used by third parties
to develop applications that will
improve the typical processes
within a city and offer citizens
real-time information, such as
whether there are any parking
spaces available in the area.
The ability to control and
monitor street lighting will lead
to major savings on energy by

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Las ciudades se harn

ms inteligentes,
creando un ecosistema
que podr ser empleado
por terceros para el
desarrollo de
aplicaciones

reducing consumption as well

as CO2 emissions.

term activities that allow them

to quickly adapt to the issue of
device interconnection.

In short, the Internet of

Things offers innumerable
applications in highly
heterogeneous sectors and
being familiar with the
technologies involved will
provide a huge competitive
edge when confronting new
professional challenges.

Creating IoT-related job titles

is one of the tasks that large
companies, such Texas
Instruments or Microsoft, are
beginning to take into account
when recruiting specialists with
vast IoT knowledge capacity.

On an economic and
professional level, are new
specializations going to be
required of both companies
and their employees?

Today, the most in-demand

roles for such activities call for
in-depth knowledge of wireless
networks, ICT, M2M,
sensors, firmware, etc.,
without being specifically
specialized in IoT.

The increasing maturity of

the Internet of Things market is
causing companies to start
thinking about new projects,
whereby they are seeking new
profiles and developing long-

Therefore, the creation of and

search for more IoT-specific
roles will mean that companies
do not focus solely on working
with in-house devices or

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

technologies, but rather, due

to the incorporation of
specialist professionals, are
able to work with different
ecosystems in a more global
manner, adapting each
company's needs in order
to reduce the time-tomarket of their products onto
the IoT market.

How and to what extent

could the application of IoT
improve a company's
productivity?

Whatever can be measured

can be improved. The IoT
revolution brings with it the
emergence of a huge number
of devices that provide realtime information about
everyday objects. All this
information can be processed
and analyzed to obtain highly
detailed knowledge of our
surrounding environment.

The benefits of having all this

information available to us
within a business environment
can be directly focused on
improving productivity at
various levels: improving the
supply chain, improving
maintenance processes,
increasing the energy
efficiency of processes,
increasing efficiency by having
all the information available in
real time, etc.

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Antonio Sainz
is a lecturer for the
University Expert in
Internet of Things
post-graduate course
at Isabel I University.

06
Wolfram Data Drop,
the universal data
system for the
Internet of Things?
Stephen Wolfram is one of those smart Internet
guys. Born in London in 1959, this scientist has
been exploring for some time now the limits of
technological innovation in areas such as online
searches. Founder and CEO of Wolfram Research,
he is the creator of the software Mathematica and
the search engine Wolfram Alpha. His personal
ambition is to revolutionize completely the
Internet of Things and it seems that with his
latest invention he might do it!
INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

The Internet of Things has long

pursued the idea of a world of
devices fully interconnected
through the Internet. In this
connected universe, a day
could come when there would
be more devices than people
plugged into the virtual world.
But what's really crucial about
this technological future is
what to do with the data
accumulated in all these
devices and how to use it.
Wolfram Data Drop, Wolframs
latest project, might be the
solution.

What is Wolfram Data Drop?

The idea of Wolfram Data Drop
is to build a large repository
with data accumulated by all
the Internet of Things devices,
and use the Wolfram Language
to interpret, visualize, analyze
and consult all that reusable
information by other devices
and also by other persons.
Stephen Wolframs system
allows any user to connect a
device to a cloud service,
accumulate his data there and
open it.
When I first started thinking
about the Data Drop, I viewed
it mainly as a conveniencea
means to get data from here to
there, explains the scientist in
his blog, but now that weve
built it () its a universal
accumulator of data, set up to

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

getand organizedata
coming from sensors, devices,
programs, or for that matter,
humans or anything else, and
to store this data in the cloud.
What does Wolfram pursue
with this project?
The idea of the mathematician
is to turn Wolfram Drop Data
into a great universal data
center, where any software
and hardware can connect and
use its information. An API, an
email, a service like Twitter, a
device with Arduino hardware,
a Raspberry Pi device... the
possibilities are huge. Were
going to be progressively
adding more and more ways
to connect to other data
collection systems, he
explains.

Histogram

But what is it that makes Data

Drop so special? The way in
which it stores data in the cloud
using a standardization protocol
through what they call a
'databin', which is associated
with a unique alphanumeric
identification. Each of these
'databins' has its own url on the
Wolfram Data Drop website,
containing the details of the
device and the accumulated
data.

This allows any user to

download raw data from any
device connected to this data
center, but with one

particularity: the information

accumulated in Wolfram Data
Drop has all the advantages of
the Wolfram Language, i.e. its
sorted data and represented in
and understandable way. For
instance, Wolfram explains in his
blog post the collection process,
and shows the environmental
information gathered by a
sensor placed in his desktop:
data on temperature, humidity,
pressure and light. The
information is stored in the
cloud in a way that can be used
directly, without prior treatment,
because it manages a universal
protocol:

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Date List Plot

But almost no one had

yet created an effective
way to collect and
process data neatly

In addition, any search for a

particular databin in the
Wolfram Alpha engine
generates an answer with all the
information about the device
and the accumulated data.
Therefore, we would be talking
about a kind of Google for the
Internet of Things.
Many companies related to the
Internet of Things, wearables
and Big Data are launching new
devices which are constantly

connected. But almost no one

had yet created an effective
way to collect and process
data neatly, without substantial
cost increases in infrastructure
and applications and
dashboards to analyze that
information. Wolfram Data Drop
tries to offer a universal system
that solves the use of data from
the Internet of Things.
Part of the reason we created
the Wolfram Data Drop is to
give such companies a better
solution, says Wolfram. They
deal with getting the datathen
they just drop it into the Data
Drop, and it goes into our cloud
(or their own private version of
it), where its easy to analyze,
visualize, query, and distribute
through web pages, apps, APIs,
or whatever.

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Some important features of

Wolfram Data Drop
Wolfram Data Drop allows to
upload data publicly or
privately. Any user who wants
to upload data to the Wolfram
Cloud can open or close the
access to his information
through authentication. Due to
the recent launch of the project,
Wolfram Research hopes to
gradually be able to increase
the upload speed of data.
Moreover, the idea is that
companies or organizations
wanting to use Data Drop to
store private information in the
cloud can access their databins
directly from their own
infrastructure.
Each of these databins can
contain information of a single
device or mix information

collected from several sources

simultaneously. This doesnt
generate problems, as the
information collected always
contains metadata which lets
us know its specific origin.
Once the data is stored in the
cloud, you can access it from
desktop systems or mobile
devices.

If you are a developer who

wants to access data in order
to implement your projects,
you can do so via the Wolfram
Cloud. And if you are a
company that produces
wearables, for example, you
can access the information by
creating your own private site
within Wolfram Data Drop or
create your own private
Wolfram Cloud.
Moreover, you can also access
the information through an
app that works with the

INNOVATION TRENDS SERIE MARCH 2015 www.centrodeinnovacionbbva.com/en

Wolfram Language, either

yours of from third parties.
Drop Data wants to end with
lots of messiness thats been
associated with collecting and
processing actual data from
real-world sources. Im excited
about all the things Im going
to be able to do with the
Wolfram Data Drop, and Im
looking forward to seeing what
other people do with it, says
Wolfram in his post. This
universal system can be the
ultimate driver of the Internet
of Things and another asset
within the world of Big Data.

share

TWITTER

FACEBOOK

LINKEDIN

Follow us on social networks:

www.centrodeinnovacionbbva.com

BBVA is not resposible for the opinions expressed here in

PINTEREST