Getting connected can save costs, time

NZTech chief executive Graeme Muller.

The internet of Things (IoT) will soon become critical to helping New Zealand raise its productivity and prosperity, says NZTech chief executive Graeme Muller.

Much of the hype around IoT has been derived from consumer items such as fitness trackers and intelligent fridges. The real value to be had from the internet of Things is in enterprise and government applications, Mr Muller said.

A research project is under way to better understand the potential benefits (and risks) of IoT for the New Zealand economy. The project, managed by NZTech, brings together major tech users, tech firms, the Government, academia and industry groups such as TUANZ and internetNZ, all which have an interest in the potential impact of IoT for New Zealand.

"Fast broadband is becoming more widely available, the cost of connecting is decreasing, more devices are being created with wi-fi capabilities and sensors built into them, technology costs are dropping, and smartphone penetration is sky-rocketing.

"Putting all these rapid developments into the mix is creating a perfect platform for IoT to take off," Muller said. "This is why the research project and a better understanding of how to apply IoT are needed.

"While the research won't be completed until mid-year, some initial observations give us cause for optimism.

"Compared to the G20 nations, New Zealand scores well for IoT readiness due to ease of doing business, government stability, regulatory quality, a good innovation ecosystem and education system."

Initial economic analysis has identified potential economic benefits in the hundreds of millions of dollars for the economy through the deployment of IoT in sectors as diverse as agriculture, utilities, manufacturing, logistics and smart city services.

Some of the interesting uses of IoT in New Zealand that the research has identified include:

• Connected cow sheds

The faster milk is cooled the better quality will be. Cooling milk uses about 30 per cent of the total energy costs for running a dairy farm. IoT sensors and actuators can manage the temperatures at each stage of milk flow. Real time alerts are sent by text message or app notification if problems are identified. This enables the farmer to resolve the problem quickly to minimise milk loss.

• Smart street lighting

This technology saves a city money in energy costs and reduces pollution by intelligently trimming and dimming individually addressed lights. Auckland Transport is installing around 40,000 smart LED streetlights which can individually respond to local light conditions saving millions.

• Better health and safety

Wearables for employees can manage that employee's site access levels, improve awareness and adherence to health and safety requirements, and enable better utilisation of staff in real time workforce management.

Global researcher IDC forecasts there will be 30.4 billion connected things worldwide by 2020.