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About this Report


This report is a research and literature review on Australian consumer issues in the context of IoT. The purpose of this research report is to identify IoT in its current and future state, and the implications of IoT for Australian consumers.
The report will begin by introducing readers to the Connected Home, Human and Habitat and IoT as a concept, including its past, present and future globally. It will then discuss IoT consumers - who are they? What do they expect? What is their perception of IoT?
The proceeding body of the report will follow the Babel family in the Sydney, Australia of 2020. Johannes, Olivia and their daughter Evey Babel live in an IoT world where the Connected Home, Human and Habitat are all part of their daily routine. The journey through their reality will be in four scenes - each with fresh consumer IoT issues. Finally, the report will make a number of recommendations for consumers, IoT business and the public sector.

Defining the ‘Internet of Things’

IoT, as yet, has no ‘official’ definition. Individuals and organisations have formed their own definitions3 with subtle differences. Corporate stakeholders have been quick to give IoT their own ‘buzzword’ branding. IBM has ‘Smart Cities’, General Electric has ‘Industrial Internet’, Cisco calls it the ‘Internet of Everything’ and Microsoft calls it ‘The Internet of Your Things’.


On face value, it refers to an ecosystem of ‘smart’ and connected everyday objects communicating with each other. However, IoT goes much deeper. ‘Internet of Things’ was admitted into the Oxford English Dictionary in 2013 as “the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data”4.
That too is an oversimplification. The best definitions are comprehensive and elemental. In 2013-14, the International Organisation for Standardization / International Electrotechnical Commission Joint Working Group 1 (“ISO/IEC JTC 1”) reviewed over 30 definitions and consolidated them in their IoT Preliminary Report 2014:
An infrastructure of interconnected objects, people, systems and information resources together with intelligent services to allow them to process information of the physical and the virtual world and react.”5
This report prefers the following definition by the IoT European Research Cluster6 for its elemental nature, broad wording and technological focus (Figure 2):
EU Cluster definition of the Internet of Things

Figure 2 - EU IoT Cluster definition of 'Internet of Things'. Source: IERC


Internet of Things in the Digital Menagerie


IoT overlaps with a number of peripheral concepts. Machine-to-Machine (“M2M”) communication, simply, refers to communication between devices. M2M is an enabler of IoT, because it allows ‘things’ to interconnect and communicate. Cloud computing refers to a system of online storage in other locations but connected across the Internet, where data can be uploaded and stored online, and then accessed from other devices. Some common products include Dropbox, iCloud and Google Drive.
Big Data’ refers generally to the concept of enormous datasets that are used to analyse trends, patterns and human behaviour. ‘Big Data’ is also interpreted by the inability to sufficiently process these enormous datasets, often defined by using the 5 ‘Vs’ – a set of data that is “too big (volume), arrives too fast (velocity), changes too fast (variability), contains too much noise (veracity) or is too diverse (variety) to be processed...using traditional approaches and techniques”7. IoT is an enabler of Big Data – more ‘things’ collecting data means Big Data gets ‘bigger’.
In order for connected ‘things’ to become intuitive and autonomous, the data from IoT would require Ubiquitous Computing (also known as ‘pervasive computing’ or ‘everyware’). This is where computing can be anywhere and everywhere, and machines perform actions cognitively8 and without human intervention. Stefan Poslad in 2009 identified the characteristics of an ideal ubiquitous (and thus ideal IoT) network:


  1. A networked, transparent physically distributed system;

  2. Implicit interaction between humans and computing devices/systems;

  3. Context-aware;

  4. Autonomous operation; and

  5. ‘Intelligent’ decision-making and interaction9.





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