Estimating IoT value? Count ALL the beans!

In this morning’s news:

http://www.telegraph.co.uk/technology/news/11043549/UK-funds-development-of-world-wide-web-for-machines.html

£1.6M investment by UK Technology Strategy Board in Internet-of-Things HyperCat standard, which the article says will add £100Bn to the UK economy by 2020.

Garnter says that IoT has reached the hype peak of their adoption curve and I agree. Connecting machines together, and especially adding networked sensors will certainly increase technology capability across many areas of our lives, but the appeal is often overstated and the dangers often overlooked. Value should not be measured in purely financial terms either. If you value health, wealth and happiness, don’t just measure the wealth. We value other things too of course. It is too tempting just to count the most conspicuous beans. For IoT, which really just adds a layer of extra functionality onto an already technology-rich environment, that is rather like estimating the value of a chili con carne by counting the kidney beans in it.

The headline negatives of privacy and security have often been addressed so I don’t need to explore them much more here, but let’s look at a couple of typical examples from the news article. Allowing remotely controlled washing machines will obviously impact on your personal choice on laundry scheduling. The many similar shifts of control of your life to other agencies will all add up. Another one: ‘motorists could benefit from cheaper insurance if their vehicles were constantly transmitting positioning data’. Really? Insurance companies won’t want to earn less, so motorists on average will give them at least as much profit as before. What will happen is that insurance companies will enforce driving styles and car maintenance regimes that reduce your likelihood of a claim, or use that data to avoid paying out in some cases. If you have to rigidly obey lots of rules all of the time then driving will become far less enjoyable. Having to remember to check the tyre pressures and oil level every two weeks on pain of having your insurance voided is not one of the beans listed in the article, but is entirely analogous the typical home insurance rule that all your windows must have locks and they must all be locked and the keys hidden out of sight before they will pay up on a burglary.

Overall, IoT will add functionality, but it certainly will not always be used to improve our lives. Look at the way the web developed. Think about the cookies and the pop-ups and the tracking and the incessant virus protection updates needed because of the extra functions built into browsers. You didn’t want those, they were added to increase capability and revenue for the paying site owners, not for the non-paying browsers. IoT will be the same. Some things will make minor aspects of your life easier, but the price of that will that you will be far more controlled, you will have far less freedom, less privacy, less security. Most of the data collected for business use or to enhance your life will also be available to government and police. We see every day the nonsense of the statement that if you have done nothing wrong, then you have nothing to fear. If you buy all that home kit with energy monitoring etc, how long before the data is hacked and you get put on militant environmentalist blacklists because you leave devices on standby? For every area where IoT will save you time or money or improve your control, there will be many others where it does the opposite, forcing you to do more security checks, spend more money on car and home and IoT maintenance, spend more time following administrative procedures and even follow health regimes enforced by government or insurance companies. IoT promises milk and honey, but will deliver it only as part of a much bigger and unwelcome lifestyle change. Sure you can have a little more control, but only if you relinquish much more control elsewhere.

As IoT starts rolling out, these and many more issues will hit the press, and people will start to realise the downside. That will reduce the attractiveness of owning or installing such stuff, or subscribing to services that use it. There will be a very significant drop in the economic value from the hype. Yes, we could do it all and get the headline economic benefit, but the cost of greatly reduced quality of life is too high, so we won’t.

Counting the kidney beans in your chili is fine, but it won’t tell you how hot it is, and when you start eating it you may decide the beans just aren’t worth the pain.

I still agree that IoT can be a good thing, but the evidence of web implementation suggests we’re more likely to go through decades of abuse and grief before we get the promised benefits. Being honest at the outset about the true costs and lifestyle trade-offs will help people decide, and maybe we can get to the good times faster if that process leads to better controls and better implementation.

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