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Par cipant Handbook

Founda on Skills in
Internet of Things ( IoT )
Powered by
Published by:

IT - ITES Sector Skill Council NASSCOM


Plot No -7 to 10, Sector 126, Noida, UP - 201303
Phone : 0120 4990172
e-mail : [email protected]
Website : www.nasscom.in

All right reserved


First edition, June 2017

Printed at:

Copyright© 2017
IT - ITES Sector Skill Council NASSCOM
Plot No -7 to 10, Sector 126, Noida, UP - 201303
Phone : 0120 4990172
e-mail : [email protected]

Disclaimer
The information contained herein has been obtained from sources reliable to IT – ITES Sector Skill Council NASSCOM.
IT – ITES Sector Skill Council NASSCOM disclaims all warranties to the accuracy, completeness or adequacy of such
information. IT – ITES Sector Skill Council NASSCOM shall have no liability for errors, omissions, or inadequacies, in
the information contained herein, or for interpretations thereof. Every effort has been made to trace the owners of
the copyright material included in the book. The publishers would be grateful for any omissions brought to their
notice for acknowledgements in future editions of the book. No entity in IT – ITES Sector Skill Council NASSCOM shall
be responsible for any loss whatsoever, sustained by any person who relies on this material. The material in this
publication is copyrighted. No parts of this publication may be reproduced, stored or distributed in any form or by
any means either on paper or electronic media, unless authorized by the IT – ITES Sector Skill Council NASSCOM.
Foreword

We are living in times of accelerating change in almost every area, be it political, financial, economic,
climatic or technological. The field of Information Technology is witnessing the greatest rate of change. In
fact, the advancement of technology and particularly information technology has today brought us to
the edge of a revolution that will completely change the way we live and work - the Internet of Things
(IoT) revolution. IoT, which is enabling increased connectivity of everyone, everything, everywhere and
every time, is causing a fundamental shift in how we do things.
Globally, the installed base of IoT units is expected to reach 20.8 billion by 2020 (USD 3 trillion in revenue
terms). Although India began its IoT journey much later than developed economies, it is set to leap-frog
the adoption of IoT - IoT units in India are expected to grow ~32X to 1.9 billion by 2020, from its current
base of 60 million. This translates to a market size of USD 9 billion by 2020, ~7X growth over 2016.
IoT adoption in India is expected to grow across industries. By 2020, industries such as Utilities,
Manufacturing, Automotive and Transportation & Logistics are expected to see highest adoption levels.
GoI's planned investment worth USD 1 billion for 100 Smart Cities over the next 5 years is expected to be
a key enabler; additionally, industries such as Healthcare, Retail and Agriculture are also expected to
make significant progress in IoT adoption.
Cross-functional skill sets and specialized training are needed to enable successful deployment of IoT by
the workforce. However, the current workforce lacks exposure across all aspects of IoT technology
leading to knowledge in silos and lack of application ability. IoT specific training programs should focus
on training in crucial areas such as technology/ solution architecture, cyber security, UI/ UX design, etc.
and this courseware development is one such activity towards it.
The primary goal is to provide students with an understanding of IoT which will be helpful in their
engineering education and subsequently in their careers. The courseware addresses introduction to IoT
and its architecture, industry applications and use cases in various sectors like Aerospace, Agriculture,
Automotive, Construction, Energy, Healthcare, Logistics, Manufacturing, Retail and Transportation;
course end project work is a mandatory inclusion offering practical exposure.
This book is drafted under the guidance of subject matter specialists from various fields encapsulating
but basic important fundamentals regarding this industry that can create employment prospects.
I wish relevant stakeholders and partners all the very best in their endeavor to enable IoT growth in India.
R Chandrasekhar
President
NASSCOM

v
Acknowledgements

Industry's involvement in developing the 'Internet of Things -IoT' courseware issignificant to the
ecosystem basis the efforts of IT-ITeS Sector Skills Council NASSCOM (SSC NASSCOM) .Developing and
subsequently enabling the implementation of the IoT program is relevant toindustry's projected needs
present and future. This initiative is of importance to stakeholders concerned—industry, academia and
students.
SSC NASSCOM thanks NASSCOM member companies, participant to the IoT 'Special InterestGroup' (SIG)
established to fulfill the goal of enhancing thecompetency and employability of candidates interested
in this field. SIG's strategic direction towards the design and development of content for thiscourseware
is significant.
The contribution of pioneer companies constituting likeAxiscades, BOSCH, Buoyanci, Caterpillar,
CISCO,Eximius Design, Frugal Labs, Intel, LnT TS, Preva Systems, Quest, TCS, Tevetron Technologies, Texas
Instruments, UTAS and NASSCOM Center of Excellence – IoT has enhanced the requisite content to the
appropriate levels.
SSC NASSCOM places on record its appreciationof Mr. ManjunathaHebbar of Byoanci and Mr. Samir
Yajnik of Tata Technologies for their leadership in facilitating the development of this courseware; the
contributions of Dr. Arup Ray of AXISCADES.Mr. Prashant Rao of AXISCADES, Mr. Shanmuga Bharathi and
Mr.Balasubarmanian of AXISCADES,Mr. Uday Prabhu of BOSCH, Mr. Merlin C. Yesudian of Caterpillar,Mr.
Sridhar Venkateswaran of Caterpillar Mr.Jaihari Prasad P G of Caterpillar,Mr.Ritesh S Gupta of Caterpillar
and Mr.ParameswaranSankaranarayanan of Caterpillar,Mr. Murugan Vasudevan of CISCO, Mr. Narendra
Nade of Eximius Design, Mr. Anirban Chowdhury of Frugal Labs and Ms.Sreowshi Sinha of Frugal Labs,
Mr. Udian Patel of Intel, Mr. Sachin Kelkar of Intel and Mr. Sumeet Verma of Intel, Mr. Sumonta
Manumder of L&T TS, Mr. Ashok Kumar of L&T TS and Mr. ShyamKrishnan of L&T TS Mr.Ravi Nuguri of
L&T TS,Mr.Jatin Panchal of L&T TS and Ms.Aditi Shenoy of L&T TS, Mr. Sharan K of Preva Systems and Mr.
Rajeev Tiwari of Tevatron Technologies,Mr.Anurag Gupta of Tevatron Technologies and Mr.Saket
Saurabh of Tevatron Technologies,Mr. Senkathir Selvan Suriaprakasam of TCS,Mr.RamkishoreAyyagari of
TCS, Mr. Praveen of Texas Instruments, Mr. Amar Vof Quest and Dr. TC Tamesh of Quest, Mr. Sharat Kumar
Variyar of UTAS and Mr. Venkat Sheshadri of UTAS.
Last but not the least SSC NASSCOM would also like place on record its appreciation of Mr.Sanjeev
Malhotra of NASSCOM CoE-IoT,Mr.Sudhanshu Mittal of NASSCOM CoE-IoT, Prof.Bharadwaj Amrutur of
NASSCOM CoE-IoT,Prof. Anurag kumar of NASSCOM CoE-IoT,Prof. U. B. Desai of NASSCOM CoE-IoT and
Prof. Balakrishnan of NASSCOM CoE-IoT for their active participation and contribution in the design and
development of this book.
SSC NASSCOM would also like to thank the NASSCOM secretariat, Mr.KS Viswanathan,Mr.
Niranjan,Mr.Yudhisther Yadav and Mr. Udaya Shankar and PROGILENCE Capability Development Pvt.Ltd.
for facilitating the development of this book.
Dr. Sandhya Chintala
Executive Director – Sector Skill Council NASSCOM
Vice President - NASSCOM

vi
Symbols Used

Key Learning Steps Notes Objectives


Outcomes

Practical Exercise Activity

vii
viii
Participant Handbook

Table of Contents
S.No Modules and Unit Page No

1. Introduction to Internet of Things (IoT) 1


Unit 1.1 – What is IoT and its Evolution over Time 3
Unit 1.2 – Working of an IoT System 15
Unit 1.3 – Logical Design of IoT 33
Unit 1.4 – IoT Setup with Device Connections 60

2. Catalogue of Applications 87
Unit 2.1 – Catalogue of Applications 89

3. Use Cases- Automotive 123


Unit 3.1 – Breathe Alcohol Ignition Interlock Device 125
Unit 3.2 – Health Monitoring of Tractors 133

4. Use Cases-Medical/Healthcare 141


Unit 4.1 – Automated BP Monitor 143
Unit 4.2 – Remote Patient Monitoring 152

5. Use Cases-Aerospace 157


Unit 5.1 – Control, Data Linking and Monitoring 159

6. Use Cases-Transportation 167


Unit 6.1 – Smart Transportation 169

7. Use Cases-Energy 175


Unit 7.1 – Smart Mesh 177
Unit 7.2 – Condition Based Maintenance of Distribution Power Transformers 184

8. Use Cases-Retail 189


Unit 8.1 – Retail Sensor Platform 191
Unit 8.2 – Smart Black Box 193

9. Use Cases-Manufacturing 197


Unit 9.1 – Condition Based Maintenance of Rotating Equipment 199

ix
Foundation Skills in IoT

S.No Modules and Units Page No

10. Use Cases-Logistics 205


Unit 10.1 – Warehousing Operations 207
Unit 10.2 – Freight Transportation 211

11. Use Cases-Agriculture 215


Unit 11.1 – Calving 217
Unit 11.2 – Increasing Yield 220

12. Use Cases - Mining 223


Unit 12.1 – Safety in Mining 225
Unit 12.2 – Availability in Mining 232

13. Professional Skills 239


Unit 13.1 – Office, e-mail and Telephone Etiquette 241
Unit 13.2 – Goal Setting and Time Management 247

14. Employability & Entrepreneurship Skills 251


Unit 14.1 – Personal Strengths & Value Systems 255
Unit 14.2 – Digital Literacy: A Recap 269
Unit 14.3 – Money Matters 273
Unit 14.4 – Preparing for Employment & Self Employment 280
Unit 14.5 – Understanding Entrepreneurship 288
Unit 14.6 – Preparing to be an Entrepreneur 308

15. Annexure 321

x
1. Introduc on to Internet
of Things (IoT)
Unit 1.1 - What is IoT and its Evolu on over Time
Unit 1.2 - Working of an IoT System
Unit 1.3 - Logical Design of IoT
Unit 1.4 - IoT Setup with Device Connec ons
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to


1. Define the term 'IoT’
2. List components of an IoT ecosystem
3. Appreciate the impact of IoT in various sectors
4. Explain the working mechanism of an IoT system
5. Interpret principle technologies used in an IoT system
6. State various layers of IoT communica on protocol
7. Explain IoT func onal block
8. Classify communica on models as 'Short-range wireless', 'Long-range wireless' and 'Wired'
9. Explain various communica on protocols
10. List some applica ons of IoT
11. Explain the architecture of an IoT pla orm
12. List various programming languages used in IDE (Integrated Development Environment )

2
Foundation Skills in IoT

UNIT 1.1: What is IoT and It's Evolu on Over Time

Unit Objec ves

At the end of this unit, you will be able to:


1. Define the term IoT
2. List various components of an IoT ecosystem
3. Classify IoT as 'Consumer IoT' and 'Industrial IoT'
4. Explain evolu on of IoT over me
5. List parameters that make IoT system popular
6. Appreciate the importance of an IoT system in industrial growth

1.1.1 What is IoT?

We are living at a me of accelera ng change in almost every area, be it poli cal, financial, economic,
clima c or technological. The field of Informa on Technology is witnessing the greatest rate of change. In
fact, the advancement in technology and par cularly informa on technology has today brought us to
the edge of a revolu on that has the poten al to completely change the way we all live and work. This
revolu on is called the Internet of Things (IoT). IoT, which is enabling increased connec vity of
everyone, everything, everywhere and every me, is causing a fundamental shi in how we do things.
“So let's understand what IoT does”
The IoT allows objects to be sensed or controlled remotely if they are integrated across exis ng network
infrastructure. This can result in crea ng opportuni es for integra on of the physical world into
computer-based systems and resul ng in improved efficiency, accuracy and economic benefit in
addi on to a reduced human interven on in managing them.

3
Participant Handbook

Electronics Technology (ET) Network Technology (NT) Informa on Technology (IT)

ET+NT+IT = IoT

Fig.1.1 – Components of an IoT system

The IoT is not just a technology; it is, in fact, an ecosystem of things such as:
Ÿ Devices
Ÿ Internet
Ÿ Data
Ÿ Cloud
Ÿ Applica ons
Ÿ Pla orms & Products
It offers opportuni es for business owners to bring a revolu on in their work by increasing produc vity,
reducing inefficiencies and inaccuracies, reducing costs, providing value added services, etc. It also offers
opportuni es for a network of other players such as:
Ÿ Hardware operators
Ÿ Network operators
Ÿ System integrators
Ÿ Applica on vendors, etc.

4
Foundation Skills in IoT

Let's take an example:

Let us imagine a large grocery store owner, who requires a reminder whenever the stock of a
category of grocery goes below a predefined level. He needs to decide on the order levels, lead-
me and the stock to be maintained. Fast moving items, slow moving items, stagnant items have a
direct bearing on this. Ordinarily, the process will be laborious and me- consuming and prone to
human errors and delays. Let us look how IoT will work for him.
Let us say that containers of the grocery type are fi ed with a sensor, say a load cell, to sense the
weight of the container with the contents. Imagine this data is transported through the Internet
from a hub which is integra ng the sensor data and genera ng a report on an cipated shortages
and giving pointers based on the history to highlight fast moving, slow moving and stagnant items.
This can help him in the investment strategy, ordering periodicity, op mising the stock, avoiding
stocks going stale or crossing the date of expiry and so on. What made this possible is IoT.

Let us look at a few more scenarios,


Scenario 1: People are granted access to offices, theatres or even their own homes by waving their wrists
at the doorway.
Scenario 2: A home owner can control the temperature and humidity of the rooms of the home, or set
the microwave oven to prepare his/her dinner even before reaching home from miles away.
Scenario 3: A car that can pay for its fuel, iden fy the quickest route to the des na on, manoeuver traffic
and locate a parking space at the des na on all by itself.
Scenario 4: The refrigerator can take its inventory, knows what to order and sends an automated signal
to the local grocery store.
Scenario 5: Our smartphones can receive alerts about the smoke emana ng from the kitchen and send a
message to the fire department.
Scenario 6: Motors and other machinery in a manufacturing plant can communicate its wear and tear
parameters to the maintenance staff on its own.
All these scenarios are in fact already possible.

5
Participant Handbook

IoT is broadly classified into Consumer IoT and Industrial IoT.


Ÿ Consumer IoT, through home automa on, infotainment and popular devices like wearables
(fitness, lifestyle) etc. is driving volumes growth
Ÿ Industrial IoT, through ini a ves like smart manufacturing (Industry 4.0), smart ci es, smart
transporta on, smart buildings, smart energy, etc. is driving revenue growth.

1.1.2 Defini on of IoT

The Internet of Things (IoT) is the networking of physical devices ("connected devices" or "smart
devices") embedded with electronics, so wares, sensors, actuators and network connec vity that
enable these objects to collect and exchange data.
The IoT allows objects to be sensed or controlled remotely if they are integrated across exis ng network
infrastructure. This can result in crea ng opportuni es for integra on of the physical world into
computer-based systems and resul ng in improved efficiency, accuracy and economic benefit in
addi on to a reduced human interven on in managing them.
The Interna onal Telecommunica on Unit (ITU) defines Internet of Things (IoT) as “A global
infrastructure for the informa on society, enabling advanced services by interconnec ng (physical and
virtual) things based on exis ng and evolving interoperable informa on and communica on
technologies”. IoT can also be defined as a concept which extends connec vity and compu ng
capabili es to objects and items normally considered computers, allowing these devices to create,
communicate, aggregate, analyze and act without human interven on. There is however, no single
defini on of IoT.
“The Internet of Things (IoT) is the networking of physical devices (also referred to as "connected
devices" and "smart devices") embedded with electronics, so ware, sensors, actuators and network
connec vity that enable these objects to collect and exchange data”
- as defined by Wikipedia
"A global infrastructure for the informa on society, enabling advanced services by interconnec ng
(physical and virtual) things based on exis ng and evolving interoperable informa on and
communica on technologies."
-as defined by 'The Interna onal Telecommunica on Unit'

6
Foundation Skills in IoT

1.1.3 The Evolu on of IoT over Time

NASSCOM and Deloi e have published a report tled “IoT – Revolu on in the making”. The report states
that “The concept of Internet of Things (IoT) has gained trac on over the last decade, owing to collec ve
efforts by industry players, associa ons as well as academia.” It is also men oned that various
consor ums of corporate as well as industry associa ons such as IPSO alliance, IIC, OIC etc. have been
working towards increasing worldwide IoT awareness and adop on as well as increasing number of
devices connected to the internet. They have played a significant role in driving IoT adop on. Academia,
in collabora on with other industry stakeholders, has further supported the development and
deployment of IoT solu ons.
IoT, today, is poised for exponen al growth globally, with the number of connected devices expected to
grow over 5.5x to 20.8 billion and revenue expected to grow over 3x to USD 3 trillion by 2020”.
An interes ng ques on to ask would be - "How did it all start?"
While IoT is rela vely new, the concept of combining computers, networks to monitor processes, was
known for decades. However, it all started with the Internet.
The telegraph, telephone, radio, and computer had already set the stage for an unprecedented
integra on of capabili es. However, the Internet has been the instrumental facet in revolu onizing the
computer and communica ons world like nothing before.

Fig.1.2 – Evolu on of Internet

7
Participant Handbook

The Internet is all of the below at the same me:


Ÿ It is a world-wide broadcas ng capability.
Ÿ It is a mechanism for informa on dissemina on.
Ÿ It is a medium for interac on between people and their computers across geographies.

The next big step, in the chain of events leading to the Internet of Things, was the advent of wireless
technologies. This gave rise to wireless Internet, the Internet on mobile phones and smartphones. Then
started the revolu on of the Internet of Things.
The term IoT was coined by Kevin Ashton in 1999. Gradually, the concept gained trac on with academia
as well as industry promo ng its growth.

standardisation:

standardisation:

standardisation:

Fig.1.3 – Evolu on of IoT and its standards


Source: NASSCOM Deloite – IoT revolu on in the making.

As per Cisco's Internet Business Solu ons Group (IBSG), me period between 2008-09 marked a key
milestone in IoT growth, when the number of devices connected to the Internet reached 12.5 billion and
the world's popula on became 6.8 billion, thus making number of devices per person more than 1 (i.e.
1.84) for the first me ever.
The rise in adop on of IoT can be a ributed to a combina on of technology and market trends such as:
1. Technology advancement:
The declining cost of sensors, explosive rise in connec vity including WiFi and cellular, the rise in
processing power, miniaturisa on of components and development of cloud have been
accelera ng the demand for IoT by genera ng and using data in real- me.

8
Foundation Skills in IoT

Cheap processing Big data Cheap Sensors Cheap Bandwidth


(60x cheaper) (unstructured data) (50% cheaper) (40x cheaper)

Ubiquitous Wireless Smartphones


IPv6
Coverage (free Wi-Fi) (personal gateway)

Fig.1.4 – Technological advancement in IoT

Ÿ Cheap Sensors – Sensor prices have dropped to an average ₹100/- from ₹1000/- in the past 10
years.
Ÿ Cheap Bandwidth – The cost of bandwidth has also declined precipitously, by a factor of nearly
40X over the past 10 years.
Ÿ Cheap Processing – Processing costs have declined by nearly 60X over the past 10 years.
Ÿ IPv6 – 128 bit address. This enables more devices to connect to the Internet.
Ÿ Big Data – As the IoT will, by defini on, generate voluminous amounts of unstructured data, the
availability of big data analy cs is a key enabler.
Ÿ Smartphones – Smartphones are now becoming the personal gateway to the IoT, serving as a
remote control or hub for the connected home, connected car or the health and fitness devices
consumers are increasingly star ng to wear.
Ÿ Ubiquitous Wireless Coverage – With Wi-Fi coverage being ubiquitous now, wireless connec vity
is available for free or at a very low cost, given Wi-Fi u lizes unlicensed spectrum and thus, does
not require monthly access fees to a carrier.
2. Investment & Entrepreneurship:
Venture capital investments in IoT have risen almost ten-fold from 2010 to 2015. Even major
technology players have been accelera ng their investments in this space. For example, IBM
recently announced an investment in IoT of USD 3 billion, to be made over the years 2015 to

9
Participant Handbook

For example, IBM recently announced an investment in IoT of USD 3 billion, to be made over the
years 2015 to investment in IoT of USD 3 billion, to be made over the years 2015 to 2017. Cisco is
inves ng USD 1 billion in crea ng a pla orm for IoT, etc. Along with increase in investments, the
pace of mergers and acquisi ons in this space is also accelera ng.
3. Need for connected consumer and business processes:
With rising device penetra on, increasing mobile usage and mobile integra on, it is evident that
the connected consumer is here to stay – thereby shaping consumer experience road map of
leading companies. Companies are converging physical and digital worlds for an integrated and
seamless consumer experience, by using sensory data for automa on of processes, predic ve
analy cs, etc.
4. IoT Characteris cs that are making it popular:
It is very interes ng to understand the reason why IoT is gaining such popularity.
IoT has the following characteris cs:

Low energy requirement

Scalable solu on

The solu on operating under


very secured environment

Interoperability between
different communica on
technologies

Open API/Open source

Fig.1.5 – Characteris cs of IoT

10
Foundation Skills in IoT

1.1.4 Market Scenario and Prospects

We have seen how IoT has evolved over me. Let us have a look at its current avatar and also at the future
prospects of IoT.
As per the NASSCOM Deloi e report:
The concept of Internet of Things (IoT) has gained trac on over the last decade, owing to the collec ve
efforts by industry players, associa ons as well as academia.
Ÿ Various consor ums of corporates as well as industry associa ons such as IPSO alliance, IIC, OIC
etc. have been working towards increasing the worldwide IoT awareness and adop on.
Ÿ Increasing the number of devices connected to the internet has played a significant role in driving
IoT adop on.
Ÿ Academia, in collabora on with other industry stakeholders, has further supported the
development and deployment of IoT solu ons.
As of today, Internet technology is being used in almost all sectors such as:
Ÿ Manufacturing
Ÿ Financial Services
Ÿ Communica on
Ÿ Educa on
Ÿ Business
Ÿ Transport
Ÿ Medical / Health
The communica on capabili es have enhanced because of it and the work flow has been simplified.
These are also the sectors that are adop ng IoT. Smart grids, virtual power plants, smart homes,
intelligent transporta on and smart ci es with remote traffic management and many more are the
applica ons of IoT in these sectors.
Some more current popular uses of IoT include:
Ÿ Industrial organiza ons are using IoT devices such as thermal/pressure/chemical sensors and
picking systems to reduce risk and down me.
Ÿ Home automa on through the use of smart home devices, that perform control and automa on
of ligh ng, hea ng, ven la on, air condi oning (HVAC) systems, and appliances such as
washer/dryers, robo c vacuums, air purifiers, ovens or refrigerators/freezers that use Wi-Fi for
remote monitoring.
Ÿ Office Automa on or smart workplaces where IoT devices and sensors are used from air
condi oning and ligh ng systems to personal mobile devices. Important assets can be tracked for
their loca on and can communicate informa on to other devices around them.
Ÿ Healthcare companies are using sensors to monitor and maintain medical devices as well as for
remotely tracking assets by loca on.

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Participant Handbook

"Things" in the IoT sense, can refer to a wide variety of devices such as heart monitoring implants,
biochip transponders on farm animals, automobiles with built-in sensors, Traffic signals and informa on
boards for speed limit diversion DNA analysis devices for environmental/food/pathogen monitoring or
field opera on devices that assist fire fighters in search and rescue opera ons….the list can be endless!
It is es mated that the IoT applica on will be the next revolu on in the IT sector by 2020. The number of
applica ons can increase in manifold because of the benefits it provides. Automa on in nearly all the
fields may be the end result.
IoT is also expected to generate large amounts of data from diverse loca ons, with the consequent
necessity for quick aggrega on of the data, increased need to index, store, and process them for
prompts, alerts, forecasts, futuris c trends, etc. more effec vely.
Radio-frequency iden fica on (RFID) may be seen as a prerequisite for the Internet of Things for the
crea on of local hubs. If all the objects and people in daily life were equipped with iden fiers, it would
help computers in managing and monitoring. Besides using RFID, the tagging of things may be achieved
through such technologies as near field communica on, barcodes, QR codes and digital watermarking.
One of the first consequences of implemen ng the Internet of Things by equipping all objects in the
world with minuscule iden fying devices or machine-readable iden fiers would be to transform them as
accessible and interactable devices for the IoT applica on. A person's ability to interact with objects
could be altered remotely based on immediate or present needs, in accordance with exis ng end-user
agreements. As such, it is clear that the IoT will consist of a very large number of devices being connected
to the Internet.
However, the applica on of the IoT is not only restricted to these areas. Other specialized usage cases of
the IoT may also exist. Based on an overview of some of the most prominent applica on areas and based
on the applica on domain, IoT products can be classified broadly into six different categories: smart
devices, smart wearables, smart home, smart city, smart environment, and smart enterprise. The IoT
products and solu ons in each of these markets will have different characteris cs.
Future Prospects of IoT:
The connec vity of devices is growing exponen ally in every field, may it be logis cs, manufacturing,
healthcare, home automa on, automo ve, construc on, retail, energy, agriculture, aerospace, mining
and environment. IoT enhances the system performance.
Currently, the IoT Industry is evaluated at USD 28.4 Billion and expected to touch 50.1 billion mark by
2020.
As per the Nasscom- Deloi e report:
IoT market growth will be driven primarily by connected devices in Manufacturing and Automo ve
industries, with Transporta on & Logis cs forming the largest share of industry-specific IoT revenue.

12
Foundation Skills in IoT

Ÿ Among industries, Manufacturing and Automo ve are expected to drive the highest volumes in
IoT adop on. The installed base of connected devices in both of these industries is expected to be
approximately 0.7 billion each by 2020.
Ÿ While Manufacturing devices are expected to grow over 2X from 0.32 billion in 2014 to 0.68
billion in 2020, the installed base for Automo ve industry will grow 37X from 0.02 billion devices
in 2014 to 0.74 billion in 2020.
Ÿ In terms of revenue, Automo ve industry is expected to see maximum growth to reach USD 303
billion by 2020.
Ÿ On the other hand, Transporta on & Logis cs is expected to drive industry-specific IoT revenue
and is likely to reach USD 491 billion by 2020.
IoT usage is gaining trac on across business func ons such as IT services, Business Process Management
(BPM) and Engineering, Research & Development (ER&D).
Ÿ IoT applica ons can be deployed across areas of IT services such as IT consul ng, custom
so ware, IT Outsourcing, BPM and Support Services. By integra ng IoT based services, IT service
providers are expected to increase their por olio by 10 per cent.
Ÿ Integra on of IoT with BPM will lead to effec ve real- me communica on between devices and
processes, thus enabling accelerated solu on deployment, streamlined opera ons and
con nuous process improvements.
Ÿ IoT in ER&D will empower product engineers and researchers by delivering real- me feedback,
enabling quicker design changes to reduce me-to-market and deliver customized products and
services.

Fig.1.6 – Future prospects of IoT


Source: NASSCOM Deloitte – IoT revolu on in the making.

13
Participant Handbook

Financial impact of IoT:

Fig.1.7 – Financial impact of IoT


Source: NASSCOM Deloitte – IoT revolu on in the making.

Further reference:

An apprecia on of the IoT applica ons can be seen in the video


h ps://www.youtube.com/watch?v=uEsKZGOxNKw

14
Foundation Skills in IoT

UNIT 1.2: Working of an IoT System

Unit Objec ves

At the end of this unit, you will be able to:


1. Describe the working principle of an IoT system
2. Describe an IoT ecosystem
3. Explain the principle technologies of an IoT eco-system i.e. Wireless Sensor Network, Embedded
Systems, Communica on Protocols, Cloud Compu ng and Big Data Analysis
4. Describe various layers of communica on protocol

1.2.1 How does IoT Work?

Infrastructure Layer Applica on Layer


Device Gateway Cloud App

Fig.1.8 – IoT working mechanism

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1. Devices consist of Sensors & Sensor Technology. They collect a wide variety of data ranging from
temperature, pressure, loca on, weather/environment condi ons, grid parameters, health
essen als of a pa ent, etc.
2. Gateways as the name suggests, are the gateways to the internet for all the devices or things that
need to interact with it. They help to connect the sensor nodes in the internal network with the
external Internet, by collec ng data from the sensor nodes and further transmi ng it to the internet
infrastructure.
3. The data transmi ed through the gateway is then stored and processed securely within the Cloud
infrastructure using the Big Data analy cs engine. The data thus processed performs intelligent
ac ons. This is what makes the 'Smart Devices'!
4. The Applica ons help the end users to control and monitor their devices from remote loca ons. They
not only send important informa on on the hand-held devices or PCs but also help to send
commands back to the Smart Devices.
Apart from the above, IP addresses play an important role in the en re IoT ecosystem. The Internet
recognizes IP addresses only. IPv6 ensures that we will never run out of IP addresses by providing
3.4*1038 IP addresses.
The IoT Ecosystem
To understand the concept of IoT ecosystem further, let's look at the examples in a domes c scenario, as
illustrated below:

Analy cs
Data Storage
A
Remote
is
Command/RFI

ys
al
Analysis

An

ta
Da

IoT Devices B
ta
Da

Gateway
Internet Network

Fig.1.9 – Characters c general arrangement of IoT

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Foundation Skills in IoT

The main objec ve in this example is to control the loads (of the AC, refrigerator, washing machine, etc.)
through the Internet network remotely on the basic principle of the Internet of Things (IoT).
· A real- me webpage will be essen al with a user configurable front end to control and monitor
the load (See A in the figure 1.9).
· The data sent from a password protected webpage returns commands through allo ed IP fed to
it.
· A Wi-Fi Module is configured with any nearby wireless modem to access internet. The received
Internet commands are fed to the Wi-Fi module.
· The program within the Wi-Fi Module executes the commands received based on which the
device gets ac vated through Bluetooth or Zigbee module interfaced to Wi-Fi Module. A Typical
interface can be shown as below.

Fig.1.10 – Zigbee Module

Ÿ The devices (See B in the Figure) should consist of power management modules and status data
report module interfaced to RF modules used for communica on. This way the status of the
device will also be communicated and displayed on the web page.
The devices to be monitored/controlled communicate through RF modules in their signal
processing for WiFi / ZigBee/ Bluetooth/ radio transceiver (RFID) etc, or through wired LAN.
Ÿ The data for control / monitor is harnessed through internet network to a remote control /
monitoring centre. A PC system, laptop, tablet or smart phone is used for remote control centres
and monitoring. (See A in the figure).
The principal technologies that drive IoT system are:
Ÿ Wireless Sensor Networks
Ÿ Embedded Systems
Ÿ Communica on Protocols
Ÿ Cloud Compu ng
Ÿ Big Data Analysis

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Fig.1.11 – Wireless Sensor Network Fig.1.12 – Embedded system

Let's look at each of them individually in the next few sec ons.

Further reference:
Following videos in the URL can be referred for how IoT works?
h ps://www.youtube.com/watch?v=QSIPNhOiMoE – IoT How it works
h ps://www.youtube.com/watch?v=o7VXyolenvU – IoT explained easily

1.2.2 Wireless Sensor Networks

A Wireless Sensor Network (WSN) is a network formed by a large number of sensor nodes where each
node is equipped with a sensor to detect physical phenomenon such as light, heat, pressure, etc. With
the rapid technological development of sensors, WSNs will become the key technology for IoT.
A sensor has the ability to capture anything from loca on to the device orienta on. Collec vely, these
sensors produce a huge amount of data, both in unstructured form (such as picture or videos) as well as
structured (such as GPS or accelera on data). These “devices” are perpetually connected to the Internet
over WiFi, 3G or 4G.
The simple block diagram of connec vity is illustrated below. The devices can be connected through
WiFi, modem, cloud etc.

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Foundation Skills in IoT

Temperature
Humidity
WiFi Modem
Light Intensity
Switch

UI Cloud

UI – User Interface

Fig.1.13 – Wi-Fi Module

1.2.3 Embedded Systems

Embedded hardware devices, micro controllers etc, are the ones that process the data. The data from the
sensors are not directly usable and a process for using them is implemented by the embedded system. All
the connected devices are intelligent devices using a microcontroller or a processor.
Processors are the brain of the IoT system. Their main func on is to process the data from the sensors
according to an algorithm to extract the valuable informa on like status, parameter values, alerts etc.,
and control actuators in some cases in the system. Processors work on a real- me basis. Changes in their
opera onal limits can be set by applica ons depending on customer requirements. These are also
responsible for securing the data i.e. performing encryp on and decryp on of the data.

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Fig.1.14 – Embedded system

1.2.4 Communication Protocols

The IoT specific protocols cover the wireless protocols like ZigBee, RFID, Bluetooth and BAC net to the
next genera on protocol standards such as 802.15.4e, 6LoWPAN, RPL, CoAP etc.

Fig.1.15 – Communica on with various devices

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Foundation Skills in IoT

Let's understand these Communica on protocols.


IoT connects various devices through Internet and devices talk to each other through a communica on
channel. The defined communica on channel is called as 'Communica on Protocol'.

Applica on Layer
HTTP XMPP Websockets

CoAP MQTT CoAP MQTT

Transport Layer

TCP UDP

Network Layer
IPv4 Ipv6 6LoWPAN

Link Layer
802.3 -Ethernet 802.16 -WiMax 2G/3G/LTE-
Cellular
802.11 - WiFi 802.15.4 -LR-WPAN

Fig.1.16 – Communica on protocol

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IoT Protocols:
IoT connects various devices through internet and devices talk to each other through a communica on
channel. Defined communica on channel is called as 'Communica on Protocol'.
Communica on protocols are broadly categorized as:
Ÿ Link layer
Ÿ Network layer
Ÿ Transport layer and
Ÿ Applica on layer

1. Link Layer

Link Layer determines how the data is physically sent over the network's physical layer.
Ex: copper wire, OFC, radio waves etc.
Some examples are provided below:
802.3 - Ethernet
Ÿ Coaxial cables, twisted pair wire or op cal fibre as a medium
Ÿ 10Mbps to 40Gbps+ data rate

802.3 – Coaxial cable


802.3 i – Copper twisted pair connec ons
802.3 j – Fibre op cs connec ons
802.3 ae – Fibre
so on……………………………
Data rate- 10 MB/s to 40Gb/s
Fig.1.17 – Ethernet

802.11 – Wi-Fi
Ÿ Wireless LAN; 802.11 b/g/n
Ÿ 2.4GHz / 5GHz band
Ÿ 1 Mbps to up to 6.75 Gbps data rate

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Foundation Skills in IoT

802.11a – operates at 5GHz


802.11b/g - operates at 2.4GHz
802.11n - operates at 2.4/5GHz
802.11ac - operates at 5GHz
802.11ad - operates at 60GHz
Data rate- 1 Mb/s to 6.75 Gb/s
Fig.1.18 – WiFi

802.16 – WiMax
Ÿ Collec on of wireless broadband standards
Ÿ 1.5Mbps to 1Gbps data rate

802.15.4 – LR-WPAN
Ÿ Low-rate wireless personal area networks
ex: LoRa
Ÿ 40bps to 250Kbps data rate
Ÿ Provides low-cost, low-speed communica on for low-power devices

802.15.4 - LR-WPAN

Star For power Constrained devices


Peer-to-peer

PAN Coordinator
FFD
RFD

Data rates - 40 kb/s to 250 kb/s

Fig.1.19 – LR-WPAN

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2G/3G/4G - Mobile Communica on

Ÿ Data rates from 9.6Kbps (2G) to up to 100Mbps (4G).

2G - GSM and CDMA


3G - UMTS and CDMA2000
4G - LTE

Date rates - 9.6 kb/s to 100 mb/s

Fig.1.20 – Mobile communica on

2. Network Layer

The Network layer is responsible for sending IP datagram from a source network to the des na on
network. The layer performs host addressing and packet rou ng.
Some examples are provided below:
Ipv4
32
Ÿ 32 bit address scheme. Total (2) addresses are available

Network Layer

Ipv4
An Ipv4 address (do ed-decimal nota on)
172 . 16 . 254 . 1
32 – bit addressing
10101100.00010000.11111110.00000001
Addresses got exhausted in 2011
one byte = Eight bytes
Thirtytwo bits ( 4x8), or 4 bytes
Guaranteed Delivery and data integrity
handled by upper layer protocols e.g. TCP

Formally described as RFC 791

Fig.1.21 – IPv4

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Foundation Skills in IoT

IPv6
Ÿ 128 bit address scheme. Total (2) 128 addresses are available

Ipv6
128 bits

Network Prefix Interface ID


128-bit addressing

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx 2^128 addresses

Xxx = 000 through FFFF


3.4x10th = -340,282,366,920,938,463,374,607,432,
768,211,456 IPv6 Addresses

Formally described as RFC 2460

Fig.1.22 – IPv6

6LoWPAN
Ÿ IPv6 over Low power Wireless Personal Area Network
Ÿ Operates in 2.4GHz range with data transfer rate of 250Kbps

6LoWPAN
Low power Devices With limited Processing
Capabili es
Transfer rate – 250 kb/s
Frequency – 2.4 Ghz
Works With 802.15.4.4 link layer protocols

Fig.1.23 – 6LoWPAN

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3. Transport Layer

Transport layer protocols provide end-to-end message transfer capability independent of the underlying
network.
TCP
Ÿ Transmission Control Protocol
Ÿ Connec on oriented and state full protocol
Ÿ Ensures reliable transmission, provides error detec on, flow control and conges on control

Transport Layer
TCP

FIN/ACK ESTABLISHED

ACK Most widely used transport layer Protocols

ESTABLISHED
ACK Ensures reliable transmission of packets in-order

Helps avoiding network conges on and conges on


ESTABLISHED FIN/ACK
ACK collapse

ESTABLISHED
CLOSED

Fig.1.24 – Transmission Control Protocol

UDP
Ÿ User Datagram Protocol
Ÿ Connec onless and stateless protocol
Ÿ Asynchronous protocol

UDP UDP
UDP packet NEW Connec onless protocol
UDP packet
Time sensi ve applica on
- ESTABLISHED

Transac on oriented and stateless protocol


NO guaranteed delivery

Fig.1.25 – User Datagram Protocol

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Foundation Skills in IoT

Comparison

Fig.1.26 – TCP Vs UDP

4. Applica on Layer

Applica on layer protocol defines how the applica ons interface with lower layer protocols to send data
over a network.
HTTP
Ÿ Hypertext Transfer Protocol
Ÿ Follows a request-response model

Applica on Layer
HTTP

Founda on ot WWW
h p:// Request – response model
Stateless protocol
Users URI (Universal Resource Inden fiers)

Fig.1.27 – Hypertext Transfer Protocol

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Participant Handbook

CoAP
Ÿ Constrained Applica on Protocol
Ÿ Follows a request-response model
Ÿ Runs on top of UDP
Ÿ Meant for constrained environment

coAP

Request-Response sub-layer Machine to Machine(M2M)


RESTful interac on
coAP

Constrained devices and networks


Message sub-layer
Runs over UDP instead of TCP
Reliability
UDP DTLS ... Request – response model

Fig.1.28 – Constrained Applica on Protocol

Web Sockets
Ÿ Based on TCP
Ÿ Allows full duplex unique connec ons

Websocket
Client server
Duplex Communica on
Based on TCP
Allow streams of messages to be sent back
and forth b/w client and server

Fig.1.29 – WebSocket Communica on Protocol

MQTT
Ÿ Message Queue Telemetry Transport
Ÿ Based on Publish-Subscribe model
Ÿ Low data rate, low packet size, requires low bandwidth

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Foundation Skills in IoT

Light weight messaging protocol


Publish subscribe model
Contrained environment

Fig.1.30 – Message Queue Telemetry Protocol

XMPP
Ÿ Extensible Messaging and Presence Protocol
Ÿ Used for real- me communica on and streaming XML data

DDS

Date-centric middleware standard


publish-subcribe model
QoS control and configure reliability

DDS Global Date space

Fig.1.31 – Extensible Messaging and Presence Protocol


DDS
Ÿ Data Distributed Service
Ÿ Based on publish – subscribe model

Data-centring middleware standard


Publish-subscribe model
QoS Control and configure reliability

Fig.1.32 – Data Distributed Service

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AMQP
Ÿ Advanced Message Queuing Protocol
Ÿ Supports publish – subscribe model, point-to-point and rou ng and queuing

AMQP
Supports both point-to-point and publisher-
subcriber model
Rou ng and queing

AMQP

Fig.1.33 – Advanced Message Queuing Protocol

1.2.5 Cloud Compu ng

A cloud refers to a dis nct IT environment that is


designed for the purpose of remotely provisioning
scalable and measured IT resources. It is a means of
providing remote access to a set of decentralized IT
resources. Mainly it is a type of compu ng that relies
on sharing compu ng resources rather than having
local servers or personal devices to handle
applica ons. In short, cloud compu ng is a type of
Internet-based compu ng, where different services
such as servers, storage and applica ons are
delivered to an organisa on's computers and
devices through the Internet.
Fig.1.34 – Cloud Compu ng Architecture

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Foundation Skills in IoT

Cloud solu on:


The solu on in the Cloud can have several levels of complexity:
1. Connec vity:
The solu on can enable a remote user to connect to the device remotely (through
the Cloud solu on).
2. Management :
The management capability can be provided by the Cloud solu on whereby the opera on and
control of the device can be performed through the Cloud solu on.
3. Remote user:
Similar to a local user, a remote user equipped with a Smartphone /Tablet/PC wants to interact
with the connected device or receive informa on rela ng to it. A local user may interact directly
with the device, whereas a remote user will need to do so via the cloud solu on. A relevant app
or applica on needs to be developed that will connect to the Cloud solu on and thereby have
access to the device or the informa on rela ng to it.

Fig.1.35 – Various devices connected to cloud

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1.2.6 Big data Analy cs

Big data analy cs is the process of examining large and


varied data sets i.e., big data to uncover hidden
pa erns, unknown correla ons, market trends,
customer preferences and other useful informa on
that can help organiza ons make more-informed
business decisions. Big data analysis and cloud
compu ng go hand in hand, par cularly in IoT
applica ons.
Analysis of the data coming from a device or other
sources can be used to send informa on to a
remote/local user regarding the device opera on, or
this analysis can be translated into commands sent to
the device to influence its opera on. For example, the
connected lamp can be turned on from the Cloud when Fig.1.36 – Representa on of big data analy cs
analysis shows that it is dark in the lamp's loca on and
a remote lock shows that someone has entered the
house.

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Foundation Skills in IoT

UNIT 1.3: Logical Design of IoT

Unit Objec ves

At the end of this unit, you will be able to:


1. Explain various func onal blocks of an IoT system
2. State func ons of sensors, IoT gateways, Network/wireless and services
3. List various types of sensors used in an IoT applica on
4. Interpret various communica on models
5. Describe REST based and WebSocket based communica on API
6. List some applica ons of IoT
7. Explain IoT security concerns and ways to tackle security threats

1.3.1 IoT Func onal Blocks

The IoT system comprises of the following func onal blocks:


Ÿ Devices
Ÿ Communica on
Ÿ Services
Ÿ Management
Ÿ Security
Ÿ Applica on

Applica on

Services

Management Security

Communica on

Device

Fig.1.37 – IoT func onal blocks

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Devices:
An IoT system works on the data received from various devices like sensors, micro controller, powerful
gateways etc. All the devices should be registered in the network. The process of registering devices is
called as ‘Data provisioning’. Each device will have a unique ID, by which they can be iden fied.
Communica on:
Sensor and devices of the network are connected at a signal point, and they communicate with each
other as per the defined communica on protocol thus making devices and sensor capable of taking real
me ac on.
Management:
Once the network connec ons are established, the next task is to manage data. The data management
includes data collec on, aggrega on, processing, storage and triggering. Proper connec vity aids in real
me data collec on, real me processing, big data solu on and predic ve analysis. With the help of
device provisioning, the device can be monitored remotely. The devices should be constantly monitored
so as to achieve the desired result.
Services/Applica on:
An IoT system is designed to achieve a specific task i.e. service. These services can be controlled by users
through Applica ons.

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Foundation Skills in IoT

1.3.2 The Basic Cons tuents of an IoT System

IoT system architecture can be depicted as below:

Services Applica ons

Data, Security, BPM, BRM,


Internet Analy cs, OSS & BSS
(IoT Management Services)
WiFi, Mobile, DSL, Fibre
WAN (Wired, Wireless)
Gateway (Gateway Func ons)

6LoWPAN, Zigbee, RFID, NFC


LAN, Low Power Wireless,
RFID
Things
(Sensors)
Sensors (Temp, Power, Humidity etc.)

IoT Structure IoT Technologies

Surveillance

Environmental People Tracking Retail


Applica on Retail Surveillance
Healthcare
Supply Chain
Transporta on
Dataflow
Management Device Modeling, Management,
Service Configura on, Security
and Management Control

Gateway and WAN (GSM,UMTS, Wi-Fi, Ethernet,


Network LTE,lTE-A) Gateway control

Sensors
Sensor Network,
Connec vity
Sensors/Actuators, Tags
and Network
(RFID, Barcode)

Fig.1.38 – IoT architecture

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Participant Handbook

The basic cons tuents as shown in the above diagram are as follows:
Ÿ Sensors
Ÿ IoT Gateways
Ÿ Network /wireless services
Ÿ Services

1. Sensors (Things)
Ÿ These are referred to as things in IoT.
Ÿ Sensors collect data and pass on the data to actuators for further processing.
Ÿ Sensors will have unique IP address and be easily iden fiable over the network.
Ÿ Some commonly used are a Humidity sensor, Power sensor, Temperature sensor, water quality
sensor etc.
2. Gateways
Ÿ Gateways route the proposed data to proper loca ons to be u lized.
Ÿ Facilitate to and fro communica on of data.
Ÿ Gateways also provide network connec vity to the data which is essen al for an IoT system to
communicate.
Ÿ LAN, WAN, PAN etc, are examples of network gateways.

3. Internet
Ÿ Connect devices to the IoT system.
Ÿ Different types of modes can be used like WiFi, Mobile, DSL, Fibre etc.

4. Services (Applica ons)


Ÿ An IoT system is designed to achieve a specific task i.e. applica on.
Ÿ Applica ons can be controlled by users.

Let's have a look at some sensors commonly used in IoT systems.


Mobile processor as a possible IoT connec vity
A modern Smartphone is equipped with sensors such as:
Ÿ mo on sensors
Ÿ accelerometers
Ÿ magnetometer and compass
Ÿ environmental sensors like thermometers, barometer
(pressure sensor)

Fig.1.39 – Mobile WiFi

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Foundation Skills in IoT

Ÿ cameras
Ÿ microphones etc.

With 3 billion Smartphone users and 82% of them using Android, we can safely claim that 2.4 billion IoT-
compa ble devices are already in the market and this number can only grow higher and higher!
Apart from hundreds and thousands of other devices based on many other technologies, it appears
Smartphones can also be the cons tuent component of the Internet of Things. It can play a very
significant role as pathfinders through this new terrain and will be the harbingers of the Internet of
Things.
If you have a Smartphone in your pocket, pat it lovingly — it will be your access point for the Internet of
Things one day. With the rise of the wearables, such as Android Wear or the Apple Watch it appears
increasingly that smart phone can play an addi onal role.
One example of an actual use of the Internet of Things could be to observe traffic conges on on specific
roads with Google Maps. This data is automa cally being collected from the mo on sensors of hundreds
of anonymous Android users as connected devices who are moving along that road at this instant of
me, processed for sta s cal validity and sent to any Google Maps user who is interested.
Here are a few projects that are taking advantage of this trend, turning smart phones (or their silicon
guts, at least) into the hardware that can power all sorts of IoT use-cases.
Placemeter:
New York city startup 'Placemeter' was one of the first to see the value in an out-of-date Smartphone
hardware. The company's cloud-based analy cs pla orm uses machine vision algorithms to track the
number of pedestrians on a street or customers in a store. While any webcam feed will do, old iOS or
Android smart phones can also collect data : users install the Placemeter app and place the phone in a
window. As the company builds out its pla orm and refines its algorithms, it has offered to pay up to $50
a month for video feeds of busy intersec ons and other public spaces.

Fig.1.40 – Placemeter

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Zensors:
Zensors is a proof-of-concept project from computer science graduate students and professors at
Carnegie Mellon University. It repurposes unused smart phones as camera-equipped visual sensors and
uses a combina on of crowd sourcing and machine learning to answer natural-language ques ons about
what the camera sees.
Users place the phone to point its camera at something they want to track, then use a finger p to circle
an “area of interest” in the video feed and type in a ques on that they'd like to have answered — such as
“How many cars are in the parking lot?” or “Is it snowing?” or “How large is the pile of dishes on the
kitchen counter?” Images are reviewed first by humans through Amazon's Mechanical Turk pla orm,
which provides some training so that a machine learning algorithm can eventually take over.
Windows Arduino Libraries:
At the 2015 Build developer conference, Microso announced two new so ware libraries that
essen ally allow Windows phones (or any hardware running Windows 10) to act as Arduino compa ble
development boards.
Windows Virtual Shield for Arduino lets any Windows device to connect wirelessly to an Arduino board.
That gives the Arduino access to all of the hardware in the phone, from gyroscope to touch screen, just as
if those components were hard-wired through an Arduino "shield" module. Windows Remote Arduino
runs the equa on backwards, allowing a Windows applica on to control and draw on the components of
an Arduino device.
With the release of the libraries, Windows 10 became the first opera ng system to join the Arduino
Cer fied program by making it easy to add an en re Smartphone's worth of hardware components to
any Arduino project.

Fig.1.41 – Temperature sensor

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Foundation Skills in IoT

1.3.3 Communica on Models

There are many technologies that enable IoT. Crucial to the field is the network used to communicate
between devices of an IoT installa on, a role that several wireless or wired technologies may fulfil. Some
be er known network solu ons are given below.
Communica on models are broadly categorized as:
Ÿ Short-range wireless
Ÿ Long- range wireless
Ÿ Wired

Fig.1.42 – Short range wireless Fig.1.43 – Long range wireless

Fig.1.44 – Wired communica on

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1. Bluetooth low energy (BLE)


An important short-range communica ons
technology is, of course, Bluetooth, which has
become very important in compu ng and many
consumer product markets. It is expected to be
a key for the wearable products, in par cular,
again connec ng to the IoT albeit probably via a
smartphone in many cases. The new Bluetooth
Low-Energy (BLE) or Bluetooth Smart, as it is Fig.1.45 – Bluetooth communica on
now branded is a significant protocol for IoT
applica ons. Importantly, while it offers a similar range to Bluetooth it has been designed to take up
significantly reduced power consump on.
However, Smart/BLE is not really designed for file transfer and is more suitable for small chunks of
data. It has a major advantage certainly in a more personal device context over many compe ng
technologies given its widespread integra on in smartphones and many other mobile devices.
According to Bluetooth SIG, more than 90 percent of Bluetooth enabled smartphones, including iOS,
Android and Windows based models, are expected to be 'Smart Ready' by 2018.
Devices that employ Bluetooth Smart features incorporate the Bluetooth Core Specifica on Version
4.0 (or higher – the latest is version 4.2 announced in late 2014) with a combined basic-data-rate and
low-energy core configura on for a RF transceiver, baseband and protocol stack. Importantly,
version 4.2 via its Internet Protocol Support Profile will allow Bluetooth Smart sensors to access the
Internet directly via 6LoWPAN connec vity. This IP connec vity makes it possible to use exis ng IP
infrastructure to manage Bluetooth Smart 'edge' devices. More informa on on Bluetooth 4.2 is
available here and a wide range of Bluetooth modules are available from RS.
Standard: Bluetooth 4.2 core specifica on
Frequency: 2.4GHz (ISM)
Range: 50-150m (Smart/BLE)
Data Rates: 1Mbps (Smart/BLE)
2. Light-Fidelity (Li-Fi)
Wireless communica on technology similar to the Wi-Fi standard, but uses visible light
communica on for increased bandwidth.

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Foundation Skills in IoT

Fig.1.46 – Li-Fi communica on

3. Near-field communica on (NFC)


Communica on protocols enabling two electronic
devices to communicate within a 4 cm range.
NFC (Near Field Communica on) is a technology
that enables simple and safe two-way interac ons
between electronic devices and especially
applicable for smartphones, allowing consumers
to perform contactless payment Fig.1.47 – Near Field Communica on

transac ons, access digital content and connect electronic devices. Essen ally it extends the
capability of contactless card technology and enables devices to share informa on at a distance that
is less than 4cm.
Standard: ISO/IEC 18000-3
Frequency: 13.56MHz (ISM)
Range: 10cm
Data Rates: 100–420kbps
4. QR codes and barcodes
Machine readable op cal tags that store informa on about the item to which they are a ached.

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Fig.1.48 – Reading QR code

5. Radio-frequency iden fica on (RFID)


Technology using electromagne c fields to read data stored in tags embedded in other items.

Fig.1.49 – RFID tagging

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Foundation Skills in IoT

6. Thread
Network protocol based on the IEEE 802.15.4 standard, similar to ZigBee, providing IPv6 addressing.
A very new IP-based IPv6 networking protocol aimed at the home automa on environment is called
as 'Thread'. Based on 6LoWPAN, and also similar, it is not an IoT applica on protocol like Bluetooth or
ZigBee. However, from an applica on point of view, it is primarily designed as a complement to WiFi
as it recognises that while WiFi is good for many consumer devices, it has limita ons for use in a
home automa on setup.
Launched in mid-2014 by the Thread Group, the royalty-free protocol is based on various standards
including IEEE802.15.4 (as the wireless air-interface protocol), IPv6 and 6LoWPAN and offers a
resilient IP-based solu on for the IoT. Designed to work on exis ng IEEE802.15.4 wireless silicon from
chip vendors such as Freescale and Silicon Labs, Thread supports a mesh network using IEEE802.15.4
radio transceivers and is capable of handling up to 250 nodes with high levels of authen ca on and
encryp on. A rela vely simple so ware upgrade should allow users to run a thread on exis ng
IEEE802.15.4-enabled devices.
Standard: Thread, based on IEEE802.15.4 and 6LoWPAN
Frequency: 2.4GHz (ISM)
Range: N/A
Data Rates: N/A

Further reference:
h ps://www.cheatography.com/davidpol/cheat-sheets/understanding-thread-protocol/

Transport Layer Security (network protocol) TLS


1. Wi-Fi
Widely used technology for local area networking based on the IEEE 802.11 standards, where
devices may communicate through a shared access point.
WiFi connec vity is o en an obvious choice for many developers, especially given the
pervasiveness of WiFi within the home environment within LANs. It requires li le further
explana on except to state the obvious that clearly there is a wide exis ng infrastructure as well
as offering fast data transfer and the ability to handle high quan es of data.

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Currently, the most common WiFi standard used in homes and many businesses is 802.11n, which
offers serious throughput in the range of hundreds of megabit per second, which is fine for file
transfers but may be too power-consuming for many IoT applica ons. A series of RF development
kits designed for building WiFi-based applica ons are available from RS.
Standard: Based on 802.11n (most common usage in homes today)
Frequencies: 2.4GHz and 5GHz bands
Range: Approximately 50m
Data Rates: 600 Mbps maximum, but 150-200Mbps is more typical, depending on channel
frequency used and number of antennas (latest 802.11-ac standard should offer 500Mbps to 1Gbps)
2. Wi-Fi Direct
A Variant of the Wi-Fi standard for peer-to-peer communica on, elimina ng the need for an access
point.
3. Z-Wave
Communica on protocol providing short-range, low-latency data transfer at rates and power
consump on lower than Wi-Fi. Used primarily for home automa on.
Z-Wave is a low-power RF communica ons technology that is primarily designed for home
automa on for products such as lamp controllers and sensors among many others. Op mized for
reliable and low-latency communica on of small data packets with data rates up to 100kbit/s, it
operates in the sub-1GHz band and is impervious to interference from WiFi and other wireless
technologies in the 2.4-GHz range such as Bluetooth or ZigBee. It supports full mesh networks
without the need for a coordinator node and is very scalable, enabling control of up to 232 devices. Z-
Wave uses a simpler protocol than some others, which can enable faster and simpler development,
but the only maker of chips is Sigma Designs compared to mul ple sources for other wireless
technologies such as ZigBee and others.
Standard: Z-Wave Alliance ZAD12837 / ITU-T G.9959
Frequency: 900MHz (ISM)
Range: 30m
Data Rates: 9.6/40/100kbit/s
4. ZigBee
Communica on protocols for personal area networking based on the IEEE 802.15.4 standard,
providing low power consump on, low data rate, low cost, and high throughput.
ZigBee, like Bluetooth, has a large installed base of opera on, although perhaps tradi onally more in
industrial se ngs. ZigBee PRO and ZigBee Remote Control (RF4CE), among other available ZigBee

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Foundation Skills in IoT

profiles, are based on the IEEE802.15.4 protocol, which is an industry-standard wireless networking
technology opera ng at 2.4GHz targe ng applica ons that require rela vely infrequent data
exchanges at low data-rates over a restricted area and within a 100m range such as in a home or a
building.
ZigBee/RF4CE has some significant advantages in complex systems offering low-power opera on,
high security, robustness and high scalability with high node counts and is well posi oned to take
advantage of wireless control and sensor networks in M2M and IoT applica ons. The latest version
of ZigBee is the recently launched 3.0, which is essen ally the unifica on of the various ZigBee
wireless standards into a single standard. An example product and kit for ZigBee development are
TI's CC2538SF53RTQT ZigBee System-On-Chip IC and CC2538 ZigBee Development Kit.
Standard: ZigBee 3.0 based on IEEE802.15.4
Frequency: 2.4GHz
Range: 10-100m
Data Rates: 250kbps
5. HaLow
A Variant of the Wi-Fi standard providing extended range for low-power communica on at a lower
data rate.
6. LTE-Advanced
High-speed communica on specifica on for mobile networks. Provides enhancements to the LTE
standard with extended coverage, higher throughput, and lower latency.
7. 6LoWPAN
A key IP (Internet Protocol)-based technology is 6LoWPAN (IPv6 Low-power Wireless Personal Area
Network). Rather than being an IoT applica on protocols technology like Bluetooth or ZigBee,
6LoWPAN is a network protocol that defines encapsula on and header compression mechanisms.
The standard has the freedom of frequency band and physical layer and can also be used across
mul ple communica ons pla orms, including Ethernet, Wi-Fi, 802.15.4 and sub-1GHz ISM. A key
a ribute is the IPv6 (Internet Protocol version 6) stack, which has been a very important
introduc on in recent years to enable the IoT. IPv6 is the successor to IPv4 and offers approximately
5 x 1028 addresses for every person in the world, enabling any embedded object or device in the
world to have its own unique IP address and connect to the Internet. Especially designed for a home
or building automa on, for example, IPv6 provides a basic transport mechanism to produce
complex control systems and to communicate with devices in a cost-effec ve manner via a low-
power wireless network.
Designed to send IPv6 packets over IEEE802.15.4-based networks and implemen ng open IP

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standards including TCP, UDP, HTTP, COAP, MQTT, and websockets, the standard offers end-to-end
addressable nodes, allowing a router to connect the network to IP. 6LoWPAN is a mesh network that
is robust, scalable and self-healing. Mesh router devices can route data des ned for other devices,
while hosts are able to sleep for long periods of me.
Standard: RFC6282
Frequency: Adapted and used over a variety of other networking media including Bluetooth Smart
(2.4GHz) or ZigBee or low-power RF (sub-1GHz.
Range: N/A
Data Rates: N/A

Further reference:
h p://www.cisco.com/c/en/us/td/docs/voice_ip_comm/cucm/srnd/ipv6/ipv6srnd/basic
s.pdf
h p://www.txv6 .org/wp-content/uploads/2010/08/Muhummad-Tutorial-ipv6-
basics.pdf

8. Sigfox
An alterna ve wide-range technology is Sigfox, which in terms of range comes between WiFi and
cellular. It uses the ISM bands, which are free to use without the need to acquire licenses, to transmit
data over a very narrow spectrum to and from connected objects. The idea for Sigfox is that for many
M2M applica ons that run on a small ba ery and only require low levels of data transfer, then Wi-Fi's
range is too short while cellular is too expensive and also consumes too much power. Sigfox uses a
technology called Ultra Narrow Band (UNB) and is only designed to handle low data-transfer speeds
of 10 to 1,000 bits per second. It consumes only 50 microwa s compared to 5000 microwa s for
cellular communica on or can deliver a typical stand-by me of 20 years with a 2.5Ah ba ery while it
is only 0.2 years for cellular.
Already deployed in tens of thousands of connected objects, the network is currently being rolled
out in major ci es across Europe, including ten ci es in the UK for example. The network offers a
robust, power-efficient and scalable network that can communicate with millions of ba ery-
operated devices across areas of several square kilometers, making it suitable for various M2M
applica ons that are expected to include smart meters, pa ent monitors, security devices, street
ligh ng and environmental sensors. The Sigfox system uses silicon such as the EZRadioPro wireless
transceivers from Silicon Labs, which deliver industry-leading wireless performance, extended range
and ultra-low power consump on for wireless networking applica ons opera ng in the sub-1GHz
band.

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Foundation Skills in IoT

Standard: Sigfox
Frequency: 900MHz
Range: 30-50km (rural environments), 3-10km (urban environments)
Data Rates: 10-1000bps
9. Neul
Similar to Sigfox in concept and opera ng in the sub-1GHz band, 'Neul' leverages very small slices of
the TV White Space spectrum to deliver high scalability, high coverage, low power and low-cost
wireless networks. Systems are based on the Iceni chip, which communicates using the white space
radio to access the high-quality UHF spectrum, now available due to analogue to digital TV
transi on. The communica ons technology is called Weightless, which is a new wide-area wireless
networking technology designed for the IoT that largely competes against exis ng GPRS, 3G, CDMA
and LTE WAN solu ons. Data rates can be anything from a few bits per second up to 100kbps over the
same single link; and devices can consume as li le as 20 to 30mA from 2xAA ba eries, meaning 10 to
15 years in the field.
Standard: Neul
Frequency: 900MHz (ISM), 458MHz (UK), 470-790MHz (White Space)
Range: 10km
Data Rates: Few bps up to 100kbps
10. LoRaWAN
Similar in some respects to Sigfox and Neul, LoRaWAN targets wide-area network (WAN)
applica ons and is designed to provide low-power WANs with features specifically needed to
support low-cost mobile secure bi-direc onal communica on in IoT, M2M, smart city and industrial
applica ons. Op mized for low-power consump on and suppor ng large networks with millions
and millions of devices, data rates range from 0.3 kbps to 50 kbps.
Standard: LoRaWAN
Frequency: Various
Range: 2-5km (urban environment), 15km (suburban environment)
Data Rates: 0.3-50 kbps.
Long-range wireless:
1. Low-power wide-area networking (LPWAN)
Wireless networks are designed to allow long-range communica on at a low data rate, reducing
power and cost for transmission.

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2. Very small aperture terminal (VSAT)


Satellite communica on technology using small dish antennas for narrowband and broadband
data.

Fig.1.50 – VSAT communica on

Wired:
1. Ethernet
General purpose networking standard using twisted pair and fibre op c links in conjunc on with
hubs or switches.

Fig.1.51 – Wired communica on

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Foundation Skills in IoT

2. Mul media over Coax Alliance (MoCA)


Specifica on enabling whole-home distribu on of high defini on video and content over exis ng
coaxial cabling.
3. Power-line communica on (PLC)
Communica on technology using electrical wiring to carry power and data. Specifica ons such as
HomePlug u lize PLC for networking IoT devices.

Further reference:
h p s : / / p e o p l e . e e c s . b e r k e l e y. e d u / ~ p r a b a l / t e a c h i n g / c s 2 9 4 - 1 1 -
f05/slides/day21.pdf
h ps : / / w w w.yo u t u b e . co m / watc h ? v = h 8 x P U f Tpy G U & l i st = P Lw 5 h 0 D i J -
9PCxDZkP8pbgpyiDweF3DJ8c&index=6 (Part 1 to 4) for detailed understanding of
Networking protocols.
h p s : / / w w w.y o u t u b e . c o m / w a t c h ? v = o c _ q z T j 2 6 - k & l i s t = P Lw 5 h 0 D i J -
9PCxDZkP8pbgpyiDweF3DJ8c – IoT tutorial

IoT Communica on models:


In the previous sec on, we have seen various technologies that are being used for communica on.
In this sec on, we will look at various established models of communica on.
There are various models of communica on namely:
Ÿ Request – Response
Ÿ Publish Subscribe
Ÿ Push-Pull
Ÿ Exclusive -Pair

Request – Response communica on model:


Request – Response type of communica on is most commonly used. This system consists of a client also
called as the caller. The client requests a service from a server or a responder. This is best suited for HTTP .
This pa ern is useful for a client – server or master slave architecture.

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Participant Handbook

Server
Receives
request from
client, processes
up/letches
resources and
sends response
to clients

Fig.1.52 – Request-Response communica on model

Publish - Subscribe communica on model:


A more robust communica on model is required if more en es are involved in the communica on
process. In this system, the communica on can be sent to a mul ple en es at the same me. The
messages are stored and distributed to the corresponding subscribers based on the protocol. The
performance of the system is dependent on the consumed bandwidth. MQTT, AMQP, and XMPP support
Publish- Subscribe pa ern.

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Foundation Skills in IoT

8. 6LoWPAN

Fig.1.53 – Publish-subscribe communica on model

Publish-Pull communica on model:


It is a type of internet based communica on. A Request for a transac on is ini ated by the publisher or a
central server. A Request for the transmission of informa on is ini ated by the receiver or client.

Fig.1.54 – Publish-pull communica on model

Exclusive -Pair communica on model:


The communica on happens only between the client and the server.

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Participant Handbook

Request accep ng the request

Fig.1.55 – Exclusive-pair communica on model

1.3.4 Communica on APIs

Applica on Programming Interface (API) is created for a specific applica on. APIs are necessary to
control devices. APIs hold together connected 'things' in an IoT system. APIs aid in transferring
informa on between programs from one applica on to another. An API should be developed keeping in
mind reusable pa erns and automated deployment.
An applica on programming interface or API is a so ware interface that enables backend
communica on between programs and applica ons.
Communica on APIs are broadly classified as:
Ÿ REST based Communica on API
Ÿ WebSocket based Communica on API

REST Based Communica on API:


REST (REpresenta onal State Transfer) is an architectural style and an approach to communica ons that
is o en used in the development of Web services.
This style of communica on API is preferred over SOAP (Simple Object Access Protocol) as it consumes
less bandwidth.

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Foundation Skills in IoT

Code

Fig.1.56 – REST based communica on API

WebSocket based Communica on API:


WebSocket is a computer communica ons protocol, providing full-duplex communica on channels over
a single TCP connec on. WebSocket is designed to be implemented in web browsers and web servers,
but it can be used by any client or server applica on.

APIs

Fig.1.57 – WebSocket based communica on API

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Participant Handbook

1.3.5 Applica ons

Some of the applica ons of IoT are listed below:


Home
Ÿ Smart ligh ng
Ÿ Smart appliance
Ÿ Security and access

Ci es
Ÿ Smart parking
Ÿ Smart roads
Ÿ Waste management
Ÿ Traffic management Fig.1.58 – Smart city

Fig.1.59 – Automated parking

Environment
Ÿ Weather monitoring
Ÿ Air quality monitoring
Ÿ Forest fire detec on
Ÿ Water quality management

Fig.1.60 – Weather monitoring

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Foundation Skills in IoT

Retail
Ÿ Inventory management
Ÿ Smart payments
Ÿ Smart vending machines

Fig.1.61 – Inventory management


Energy
Ÿ Smart grids with IoT
Ÿ Renewable energy monitoring
Ÿ Extending ba ery life in smart locks

Fig.1.62 – Energy monitoring

Industry
Ÿ Making factories smarter, more produc ve
through predic ve maintenance
Ÿ Indoor air quality monitoring
Ÿ Smart energy management

Fig.1.63 – Logis cs tracking

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Participant Handbook

Agriculture
Ÿ Smart irriga on
Ÿ Greenhouse control
Ÿ Precision plan ng
Ÿ Smart crop monitoring

Fig.1.64 – Smart irriga on

Health
Ÿ Health and Fitness monitoring
Ÿ Wearable technology
Ÿ Automated BP monitor

Fig.1.65 – IoT applica on in healthcare

Auto
Ÿ Google maps and other naviga on tools
Ÿ Music apps
Ÿ Solar roofs with integrated ba ery storage
Ÿ Self driving car technology
Ÿ Health monitoring of fleet of tractors

Fig.1.66 – GPS tracking

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Foundation Skills in IoT

Avia on
Ÿ Real me intelligence to enhance opera ons
Ÿ Aircra communica ons
Ÿ System Wide Informa on Management (SWIM)
Ÿ Control data linking and monitoring of
Unmanned Aerial Vehicles (UAV) and drones

Fig.1.67 – Avia on controls

1.3.6 Security

IoT Security Concerns and ways to resolve them


While the benefits of IoT are undeniable, the security can be an issue which has to keep up with the pace
of IoT deployment. As increasingly network integrated connec ons arise, important processes that once
were performed manually are now vulnerable to cyber threats. Many IoT devices will require the
collec on, analysis and transmission of poten ally sensi ve data. It is essen al that this data is
adequately protected at all mes and that the user is aware what private data is being processed. These
issues need to be addressed from a security point of view.
Ÿ Preserva on of privacy or secrecy of the data
Ÿ Integrity of the data for safety
Ÿ Staleness or latency permissible in the data share
Ÿ Level of restric on of access to or control of the device
Ÿ Upda ng of the so ware on the device
Ÿ Ownership of the device whether to be managed or transferred in a secure manner
Ÿ Necessity for the data to be audited
Risks include malicious actors manipula ng the flow of informa on to and from network-connected
devices or tampering with devices themselves, which can lead to the the of sensi ve data and loss of

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Participant Handbook

consumer privacy, interrup on of business opera ons, the slowdown of internet func onality through
large-scale denial-of-service a acks, and poten al disrup ons to cri cal infrastructure. It is impera ve
that IoT ecosystem is built on a founda on that is trustworthy and secure. These need to be addressed at
access level, encryp on in the data transac ons and failures ensured for failsafe and securely. Many of
the vulnerabili es in IoT could be mi gated through recognized security best prac ces.
Ÿ Enable security by default through unique, hard to crack default user names and passwords
typically as used in secure bank transac ons star ng from the mandatory first change when the
device and the integrated set up is commissioned and periodic change in the life cycle. Automa c
closure of the access beyond specific me of inac vity.
Ÿ Use hardware that incorporates security features to strengthen the protec on and integrity of
the device. For example, use computer chips that integrate security at the module/component
level, embedded in the processor and provide encryp on and anonymity. This is to enable
encrypted transac on.
Design the IoT ecosystem keeping in mind system and opera onal disrup on. Understand what
consequences could flow from the failure of a device and implement features in devices to fail safely and
securely so that the failure does not lead to greater disrup on.

SNIFFER ATTACKS

between two
device

Fig.1.68 – Security risks

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Foundation Skills in IoT

IoT

smart
Patch vulnerabili es as soon
as they are announced

guide:What to
Read our guide:
consider when buying a
smart device

Fig.1.69 – Tips for secured transac on

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Participant Handbook

UNIT 1.4: IoT Setup with Device Connec ons

Unit Objec ves

At the end of this unit, you will be able to:


1. State the purpose of IoT pla orms
2. State the importance of IDE
3. Iden fy various components of a microcontroller based boards
4. Describe Arduino and ARMbed pla orms
5. Explain Linux based pla orms
6. Differen ate between 'Input' and 'Output'
7. Explain 'Analogue' and 'Digital' signals
8. Check the con nuity in a board using a mul meter
9. Measure 'Resistance' using a mul meter
10. Explain features of some commonly used programming languages
11. Interpret Python codes

1.4.1 Introduc on to IoT Pla orms

As we have discussed in the earlier sec ons, an IoT system is a combina on of hardware and so ware
components designed to achieve a specific task.
Ÿ The components interact with each other through a defined communica on channel called as
'communica on protocol'
Ÿ Processors act as the brain of an IoT system and the main func on of a processor is to process the
data received from the sensors according to an algorithm and extract useful informa on
Ÿ Gateways route the processed data to proper loca ons for further u liza on. Gateways help in to
and fro communica on of the data and provide network connec vity to the data
An IoT Pla orm is referred to as IoT middleware. It acts as a mediator between applica on layer and
hardware.
IoT pla orm facilitates the following:
Ÿ Communica on
Ÿ Data flow

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Foundation Skills in IoT

Ÿ Device management
Ÿ Func onality of applica ons

To begin embedded development, a pla orm is required which has the following components:
Ÿ Development board
Ÿ IDE (Integrated Development Environment)

A microcontroller development board is a printed circuit board (PCB) with circuitry and hardware. The
development board will have a processor, memory, chip set and on board peripherals. The
microcontroller development board is also called as 'Single board microcontroller'.
For example: Arduino, ARM mbed etc.

Fig.1.70 – Representa ve microcontroller based board

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Participant Handbook

There are many open source so ware (IDE) available to develop microcontroller boards to develop real
me applica ons.
Arduino:
An Arduiono is an open source microcontroller development board. This can be used to read sensors and
control devices. A program can be uploaded on this board to interact with things in the real world.
There are various types of Arduino boards. Care should be taken to select right kind of Arduino board
based on the applica on.
Some common types of Arduino boards are:
Ÿ Arduino Uno
Ÿ Arduino NG, Diecimila, and the Duemilanove (Legacy Versions)
Ÿ Arduino Mega 2560
Ÿ Arduino Mega ADK
Ÿ Arduino LilyPad
As an example, we will study some features of Arduino UNO.
Arduino UNO:
It is an open source electronics prototyping pla orm for developing interac ve electronic applica ons.

Digital

Analogue 1/0 Pins

Fig.1.71 – Arduino Uno R3 pla orm

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Foundation Skills in IoT

Some features of Arduino UNO R3 are:


Ÿ Microcontroller: ATmega328P
Ÿ 32 KB of Flash memory
Ÿ Opera ng Voltage: 5V
Ÿ Input Voltage (recommended): 7-12V
Ÿ Input Voltage (limits): 6-20V
Ÿ Digital I/O Pins: 14 (6 pins provide PWM output)
Ÿ Analogue Input Pins: 6
Ÿ DC Current per I/O Pin: 40 mA
Ÿ DC Current for 3.3V Pin: 50 mA
IDE sketches (programs) can be developed using syntax based on 'C' .
Some applica ons of Arduino UNO are:
Ÿ RFID sensed device access
Ÿ Industrial appliances control systems
Ÿ Home automa on etc.

There are many types of boards compa ble with Arduino. Some of them are listed below:
Ÿ YUN
Ÿ ETHERNET
Ÿ TIAN
Ÿ INDUSTRIAL IoT
Ÿ LEONARDO ETH
Ÿ YUN MINI
Ÿ WiFi SHIELD
Ÿ YUN SHIELD
Ÿ WIRELESS PROTO SHIELD etc.
Some flavors of Arduino are:
Ÿ Arduino Leonardo Microcontroller (Headers)
Ÿ Arduino Leonardo (No Headers)
Ÿ Arduino Uno USB Microcontroller Rev 3
Ÿ Arduino Duemilanove USB Microcontroller module
Ÿ Arduino Ethernet Microcontroller (No PoE)
Ÿ Arduino Ethernet Microcontroller With PoE
Ÿ Arduino Ethernet Microcontroller With PoE + USB2SERIAL Kit

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Participant Handbook

Ÿ Arduino Ethernet Microcontroller (No PoE) + USB2SERIAL Kit


Ÿ Freeduino SB Microcontroller Kit
Ÿ Seeedstudio Freeduino USB Arduino Compa ble Microcontroller Kit
Ÿ Arduino LEDHead Arduino Compa ble Microcontroller
ARM mbed Pla orm:
This also uses microcontroller based IoT pla orm. This type of IoT pla orm provides the opera ng
system, cloud services, tools and developer ecosystem to make the crea on and deployment of
commercial, standards-based IoT solu ons.
The IDE can be developed using online code editor and compiler. A web browser needs to be installed on
the local PC since the IDE is developed on the cloud. The mbed IDE provides private workspaces with
ability to import, export and share code with distributed Mercurial version control.
The mbed pla orm provides so ware libraries and hardware designs. So ware Development Kit (SDK)
is an open source C/C++ microcontroller so ware pla orm. This can be used to build projects.
Hardware Development Kit (HDK) provides full microcontroller sub-system design files and firmware for
building development boards and custom products.

ARM mbed

Energy-efficiency, produc vity,

Fig.1.72 – ARM mbed pla orm

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Foundation Skills in IoT

Some examples of mbed compa ble boards are:


Ÿ mbed LPC1768
Ÿ mbed LPC11U24
Ÿ Seeduino-Arch
Ÿ FRDM KL25Z
Ÿ NXP LPC800-MAX etc.
Linux based IoT Pla orms:
Higher end IoT nodes require applica on processors running Linux, Windows Embedded, and Windows
10. Linux based end points are used when there is a need for local processing and also run a web version
or HMI screen.
A typical example of Linux OS development board is Raspberry Pi.
Raspberry pi Development Board:
Raspberry Pi is a small pla orm and runs on Linux pla orm. It is a small board and can be easily plugged
into monitor, computer or TV. It is a series of small single board computers developed in the UK.
An SD card is inserted into the slot on the board. This SD card acts as the hard drive for the Raspberry Pi.
Raspberry Pi is powered by USB and the video output can be hooked up to a tradi onal RCA TV set, a
more modern monitor, or even a TV using the HDMI port.

Fig.1.73 – Raspberry Pi development board

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Participant Handbook

Some important Concepts regarding IoT boards:


Input Vs Output:

Input Output

Ÿ Informa on provided to the board is called Ÿ Any signal going from the board is
as 'Input' called as 'Output'
Example: Example:
Ÿ Bu ons, Switches, Light Sensors, Flex Ÿ LED, DC motor, Servo motor, Piezo
Sensors, Humidity Sensors, Temperature buzzer, Relay etc.
Sensors etc.

Fig.1.74 – Humidity sensor Fig.1.75 – Relay

Analogue Vs Digital:

Analogue Digital

Analogue signal is a con nuous signal which Digital signals are discrete me signals generated
represents physical measurements. by digital modula on.

Analogue signals are denoted by sine waves. Digital signals are denoted by square waves.

Analogue signals use a con nuous range of Digital signals use discrete or discon nuous values
values to represent the informa on. to represent the informa on.

Example: Human voice in air, analogue Example: Computers, CDs, DVDs, and other digital
electronic devices. electronic devices

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Foundation Skills in IoT

5V- 5V-

0V-
0V-
Analogue Signal Digital Signal

Fig.1.76 – Analogue Signal Fig.1.77 – Digital Signal

Con nuity tes ng and measurement of resistance:


Con nuity Tes ng:
A 'Circuit' is defined as the path between two or more points through which electric current flows. A
circuit should have con nuous LOOP from power (Vcc) to ground.

Fig.1.78 – Representa on of a simple circuit

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Participant Handbook

Con nuity tes ng is carried out to check the flow of electric current in the circuit. This test can be carried
out using a mul meter.

Fig.1.79 – Mul meter Fig.1.80 –Con uity tes ng

Make sure that all components will have a common ground with the Arduino

Measurement of 'Resistance':
Resistance is defined as the opposi on offered to the flow of electric current. The opposi on offered to
the flow of electronics depends on the following:
Ÿ Type of materials
Ÿ Cross sec onal area
Ÿ Temperature

A mul meter may be used to measure the resistance of circuit components.


How to measure Resistance?
Step1:
Remove components en rely from the circuit
Step 2:
Set the mul meter for appropriate range

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Foundation Skills in IoT

Fig.1.81 – Resistance range se ng

Step 3:
Measure resistance using probes of a mul meter

Fig.1.82 – Resistance measurement

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Participant Handbook

IDE (Integrated Development Environment):


In the previous sec on, we have discussed various
pla orms with a focus on hardware (boards). It is
also very clear that an IoT pla orm is a combina on
of 'Hardware' and 'Integrated Development
Environment (IDE)'.
In this sec on, we will discuss various programming
languages.
Fig.1.83 – Various programming languages
The range of IoT programming language varies from
general purpose programming like C++ and Java to
embedded specific programs.
Some of the programming languages are:
Ÿ Python
Ÿ C and C++
Ÿ Java
Ÿ Node.js and Java script

Python:
Ÿ High level programming for general purpose programming
Ÿ It is an interpreted language – flexible, easy to read, quick to write
Ÿ Open source so ware
Ÿ Support mul ple programming paradigms like object oriented, impera ve and func onal
programming
Ÿ Most suited for embedded control and IoT world
Advantages of Python:
Ÿ Lesser me is required to develop Python compared to Java
Ÿ Python has built in high level data types
Ÿ Can be used to prototype components
Ÿ Strong in data structures
Ÿ Supports mul ple systems and pla orms
Ÿ Python has built in tes ng framework for debugging
Disadvantages:
Ÿ Not suitable for mobile development
Ÿ May not be used in memory intensive tasks
Ÿ Not suitable for mul processor/mul core work

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Foundation Skills in IoT

Some common Python codes:

OPERATOR PRECEDENCE IN EXPRESSIONS

Operator Description A

`expr,...` String conversion NA

{key:expr,...} Dic onary crea on NA

[expr,...] List crea on NA

(expr,...) Tuple crea on or simple parentheses NA

f(expr,...) Func on call L

x[index:index] Slicing L

x[index] Indexing L

x.a r A ribute reference L

x**y Exponen a on (x to yth power) R

~x Bitwise NOT NA

+x, -x Unary plus and minus NA

x*y, x/y, x//y, x%y Mul plica on, division, remainder L

x+y, x-y Addi on, subtrac on L

x<<y, x>>y Le -shi , right-shi L

x&y Bitwise AND L

x^y Bitwise XOR L

x|y Bitwise OR L

x<y, x<=y, x>y, x>=y Comparisons C

x<>y, x!=y, x==y Equality/inequality tests* C

x is y, x is not y Iden ty tests C

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x in y, x not in y Membership tests C

not x not xBoolean NOT NA

x and y Boolean AND L

x or y Boolean OR L

lambda arg,...: expr Anonymous simple func on NA

* x!=y and x<>y are the same inequality test (!= is the preferred form, <> obsolete)

A � Associativity L � Left R � Right C � Chaining NA � Not associative

COMMON FILE OPERATIONS

Opera on Interpreta on

output = open('/tmp/spam', 'w') Create output file ('w' means write).

input = open('data', 'r') Create input file ('r' means read).

S = input.read( ) Read en re file into a single string.

S = input.read(N) Read N bytes (1 or more).

S = input.readline( ) Read next line (through end-line marker).

L = input.readlines( ) Read en re file into list of line strings.

output.write(S) Write string S into file.

output.writelines(L) Write all line strings in list L into file.

output.close( ) Manual close (done for you when file is


collected).

C & C++:
Ÿ C++ is object oriented version of C
Ÿ Can be used for both Linux OS and Arduino embedded IoT so ware system
Ÿ Ideal for embedded systems
Ÿ Codes can be wri en specifically for Hardware

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Java:
Ÿ Code is not specific to hardware and more portable
Ÿ Library is required to run different hardware
Ÿ Java is like a write once and run anywhere language

Node.js and Java Script:


Ÿ Node.js code will run a complete IoT system
Ÿ It is an interpreted language
Ÿ DeviceJS is a JavaScript based development pla orm for programming sensors and controlling
devices
Acronyms used in this Unit:

AMQP Advanced Message Queuing Protocol

API Applica on Programming Interface

BLE Bluetooth Low Energy

BPM Business Process Management

CoAP Constrained Applica on Protocol

ER&D Engineering Research and Design

HDK Hardware Development Kit

HTTP Hypertext Transfer Protocol

IDE Integrated Development Environment

IoT Internet of Things

ITU Interna onal Telecommunica on Unit

Li-Fi Light Fidelity

LoWPAN Lower Power Wireless Personal Area Network

MQTT Message Queue Telemetry Transport

NFC Near Field Communica on

PLC Power Line Control

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REST RE-presenta onal State Transfer

RFID Radio Frequency Iden fica on

SDK So ware Development Kit

TCP Transmission Control Protocol

UPD User Diagram Protocol

VSAT Very Small Aperture Terminal

WSN Wireless Sensor Network

XMPP Extensible Messaging and Presence Protocol

During this you will also be carrying out some interes ng projects.
Ÿ Energy Sector
o Smart Ligh ng
Ÿ Mining Sector
o Safety and Availability of Construc on and Heavy Equipment
Ÿ Medical/Healthcare Sector
o Automated BP Monitor
o Remote Pa ent Monitoring
Ÿ Aerospace Sector
o Control, data link and Monitoring (Unmanned Aerial Vehicle)
Ÿ Automo ve Sector
o Breath Alcohol Igni on Interlock Device
And many more………………..

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Summary

1. The Internet of things (IoT) is the networking of physical devices ("connected devices" or "smart
devices") embedded with electronics, so ware, sensors, actuators and network connec vity
that enable these objects to collect and exchange data.
2. IoT Characteris cs that are making it popular are:
Ÿ Low energy requirement
Ÿ Scalable solu on
Ÿ Secured environment
Ÿ Inter operability between different communica on technologies
Ÿ Open API/Open source
3. The connec vity of devices is growing exponen ally in every field may it be logis cs,
manufacturing, healthcare, home automa on, automo ve, construc on, retail, energy,
agriculture, aerospace, mining and environment. IoT enhances the system performance.
4. The principle technologies that drive IoT system are:
Ÿ Wireless Sensor Networks
Ÿ Embedded systems
Ÿ Communica on protocols
Ÿ Cloud Compu ng
Ÿ Big Data Analysis
5. IoT connects various devices through internet and devices interact with each other through a
communica on channel.
6. Communica on protocols are broadly categorized as:
Ÿ Link layer
Ÿ Network layer
Ÿ Transport layer
Ÿ Applica on layer

7. A cloud refers to a dis nct IT environment that is designed for the purpose of remotely
provisioning scalable and measured IT resources.
8. Big data analy cs is the process of examining large and varied data sets i.e., big data to uncover
hidden pa erns, unknown correla ons, market trends, customer preferences and other useful
informa on that can help organiza ons make more-informed business decisions.
9. The IoT system comprises of the following func onal blocks:
Ÿ Devices
Ÿ Communica on
Ÿ Services

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Ÿ Management
Ÿ Security
Ÿ Applica on

10. Communica on models are broadly categorized as:


Ÿ Short-range wireless
Ÿ Long- range wireless
Ÿ Wired

11. There are various models of communica on namely:


Ÿ Request – Response
Ÿ Publish - Subscribe
Ÿ Push-Pull
Ÿ Exclusive –Pair

12. Applica on Programming Interfaces (API) are created for a specific applica on.
13. APIs are necessary to control devices.
14. Communica on APIs are broadly classified as:
Ÿ REST based Communica on API
Ÿ WebSocket based Communica on API

15. An IoT Pla orm is referred to as IoT middleware. It acts as a mediator between applica on layer
and hardware.
16. IoT pla orm facilitates the following:
Ÿ Communica on
Ÿ Data flow
Ÿ Device management
Ÿ Func onality of applica ons

17. To begin embedded development, a pla orm is required which has the following components:
Ÿ Development board
Ÿ IDE (Integrated Development Environment)

18. A microcontroller development board is a printed circuit board (PCB) with circuitry and
hardware.
19. An Arduiono is an open source microcontroller development board. This can be used to read
sensors and control devices. A program can be uploaded on this board to interact with things in
the real world.

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20. ARM mbed pla orm provides the opera ng system, cloud services, tools and developer
ecosystem to make the crea on and deployment of commercial, standards-based IoT solu ons.
21. So ware Development Kit (SDK) is an open source C/C++ microcontroller so ware pla orm.
This can be used to build projects.
22. Hardware Development Kit (HDK) provides full microcontroller sub-system design files and
firmware for building development boards and custom products.
23. Higher end IoT nodes require applica on processors running Linux, Windows Embedded and
Windows 10.
24. Linux based end points are used when there is a need for local processing and also run a web
version or HMI screen.
25. Raspberry Pi is a small pla orm and runs on Linux pla orm.
26. A 'Circuit' is defined as the path between two or more points through which electric current
flows.
27. A circuit should have con nuous LOOP from power (Vcc) to ground.
28. Con nuity tes ng is carried out to check the flow of electric current in the circuit. This test can be
carried out using a mul menter.
29. Resistance is defined as the opposi on offered to the flow of electric current.
30. Some of the programming languages are:
Ÿ Python
Ÿ C and C++
Ÿ Java
Ÿ Node.js and Java script

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Exercise

1. Define the term 'IoT'

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

2. List few characteris cs of an IoT system

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

3. Explain the working mechanism of an IoT system

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

4. Name principle technologies that drive IoT system

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

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5. Name various layers of a communica on protocol

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

6. List types of communica on APIs

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

7. List some applica ons of IoT in Retail segment

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

8. List some func ons of an IoT pla orm

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

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9. Name some of the IDE development languages

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

10. Expand the following terms

I. WSN
II. UI
III. BLE
IV. HTTP
V. TCP
VI. PLC
VII. NFC
VIII. ITU
IX. IDE
X. API
XI. REST

11. Iden fy elements of IoT func onal blocks

??

??

?? ??

??

??

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Foundation Skills in IoT

1. Say True (T) or False (F)

I. Sensors and devices are connected to the network ( )


II. Services are controlled by users through applica on ( )
III. Gateways process data ( )
IV. Internet connects devices to the IoT system ( )
V. The hardware component of an IoT system is called as IoT pla orm ( )
VI. Arduino is an open source microcontroller board ( )
VII. Raspberry Pi development board runs on Windows ( )
VIII.Discrete me signals are categorized under Analogue signals ( )

2. Choose the most appropriate answer


I. BLE' is categorized under

a. Short- range wireless


b. Long-range wireless
c. Wired communica on
d. None of the above

II. NFC is categorized under

a. Short- range wireless


b. Long-range wireless
c. Wired communica on
d. None of the above

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III. Very small aperture terminal technology is categorized under

a. Short- range wireless


b. Long-range wireless
c. Wired communica on
d. None of the above

IV. Ethernet is categorized under

a. Short- range wireless


b. Long-range wireless
c. Wired communica on
d. None of the above

V. Iden fy the type of communica on model most commonly used in IoT applica on

a. Request- Response communica on model


b. Publish – Subscribe communica on model
c. Publish-Pull communica on model
d. Exclusive-pair communica on model

VI. Name the communica on model in which the communica on can be sent to a mul ple
en es at the same me

a. Request- Response communica on model


b. Publish – Subscribe communica on model
c. Publish-Pull communica on model
d. Exclusive-pair communica on model

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Foundation Skills in IoT

VII. Iden fy the type of communica on model, where the request for a transac on is ini ated by a
central server

a. Request- Response communica on model


b. Publish – Subscribe communica on model
c. Publish-Pull communica on model
d. Exclusive-pair communica on model

VIII. Iden fy the type of communica on API used in the development of web services

a. REST based communica on API


b. WebSocket based communica on API
c. Both (a) and (b)
d. None of the above

IX. Which type of communica on API provides full duplex communica on channels?

a. REST based communica on API


b. WebSocket based communica on API
c. Both (a) and (b)
d. None of the above

14. Match column 'A' with column 'B'

Column A Column B Answer

1. Link Layer a. Responsible for sending IP datagram


from source network to des na on
network

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2. Network Layer b. provide end-to-end message transfer


capability independent of underlying
network

3. Transport layer c. determines how the data is physically


sent over the network's physical layer

4. Applica on layer d. defines how the applica ons interface


with lower layer protocols to send
data over a network

14. Match column 'A' with column 'B'

Column A Column B Answer

1. Ethernet a. Applica on layer

2. IPV4 b. Transport layer

3. TCP c. Network Layer

4. HTTP d. Link layer

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Further reference:
h ps://www.youtube.com/watch?v=uEsKZGOxNKw – Introduc on to IoT
h ps://www.youtube.com/watch?v=QSIPNhOiMoE – IoT How it works
h ps://www.youtube.com/watch?v=o7VXyolenvU – IoT explained easily
h p s : / / w w w.y o u t u b e . c o m / w a t c h ? v = o c _ q z T j 2 6 - k & l i s t = P Lw 5 h 0 D i J -
9PCxDZkP8pbgpyiDweF3DJ8c – IoT tutorial
h p s : / / w w w. y o u t u b e . c o m / w a t c h ? v = h 8 x P U f Tp y G U & l i s t = P L w 5 h 0 D i J -
9PCxDZkP8pbgpyiDweF3DJ8c&index=6 – Net working protocols Part 1 to part 4
h ps://www.youtube.com/watch?v=jYrkujWlbt0 – IoT protocols need to know
h ps://www.youtube.com/watch?v=z72G4WXQ_IY – IoT benefits and risks
h ps://www.youtube.com/watch?v=7D1CQ_LOizA – Big data
h ps://www.youtube.com/watch?v=DGDtujmOBKc – How Cloud Compu ng Works
h ps://www.youtube.com/watch?v=riSLyE57IdA – Connected Avia on Solu on at Dubai
IoT World Forum
h ps://www.youtube.com/watch?v=emAJwuwvstw – Internet of Aircra Things: aircra
data management solu ons
h ps://www.youtube.com/watch?v=Q8Cn47L8FRQ – Connected Vehicle: The Future of
Transporta on
h ps://www.youtube.com/watch?v=aOFZqecYk2g – Intelligent Transporta on System

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Further reference:
“An Introduc on to the Internet of Things (IoT)" – (PDF). Cisco.com. San Francisco, California:
Lopez Research. November 2013. Retrieved 23 October 2016.
Monnier, Olivier (8 May 2014). "A smarter grid with the Internet of Things". Texas
Instruments.
Evans, Dave (April 2011). "The Internet of Things: How the Next Evolu on of the Internet Is
Changing Everything" (PDF). Cisco. Retrieved 15 February 2016.
Zanella, Andrea; Bui, Nicola; Castellani, Angelo; Vangelista, Lorenzo; Zorzi, Michele (February
2014). "Internet of Things for Smart Ci es". IEEE Internet of Things Journal. 1 (1): 22–32.
Retrieved 26 June 2015.
Höller, J.; Tsiatsis, V.; Mulligan, C.; Karnouskos, S.; Avesand, S.; Boyle, D. (2014). From
Machine-to-Machine to the Internet of Things: Introduc on to a New Age of Intelligence.
Elsevier. ISBN 978-0-12-407684-6.
Hendricks, Drew. "The Trouble with the Internet of Things". London Datastore. Greater
London Authority. Retrieved 10 August 2015.
Magrassi, P. (2 May 2002). "Why a Universal RFID Infrastructure Would Be a Good Thing".
Gartner research report G00106518.
“Use case: Sensi ve wildlife monitoring". FIT French Project. Retrieved 10 July 2014.
"Every. Thing. Connected. A study of the adop on of 'Internet of Things' among Danish
companies" (PDF). Ericsson. Retrieved 28 March 2017.
www.gsma.com/connectedliving. Understanding IoT
h ps://www.prokarma.com/blog/2015/02/17/iotgatewayswayiotnetworking - IoT
Gateways - The ways to IoT networking
h ps://www.postscapes.com/interneto hingsprotocols/ - IoT Standards & Protocols Guide
| 2017 Comparisons on Network, Wireless Comms, Security, Industrial
h ps://opentechdiary.wordpress.com/2015/07/16/awalkthroughinterneto hingsiotbasic
spart2/ -Part 2 : A walk through Internet of Things (IoT) basics

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2. Catalogue of
Applica ons
Unit 2.1 – Catalogue of Applica ons
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to


1. Appreciate the impact of IoT in various sectors

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Foundation Skills in IoT

UNIT 2.1: Catalogue of Applica ons

Unit Objec ves

At the end of this unit, you will be able to:


1. List IoT applica ons in various sectors like, Logis cs, Manufacturing, Medical/Healthcare, Smart
home, Automo ve, Construc on/Infrastructure/Smart city, Retail, Energy, Agriculture,
Aerospace, Mining, Environment

2.1.1 Introduc on

In the previous sec ons, we have discussed various aspects of an IoT system including devices, sensors,
communica on protocol, networking and architecture. Basically an IoT system has 'Hardware
components' and 'IDE (Integrated Development Environment)'. All devices communicate with each
other through a defined communica on protocol. Data is collected from various nodes, processed and
input is given to various devices to act.
An IoT concept can be implemented in almost all sectors. An effort is made to list some applica ons of IoT
covering some fast moving sectors like:
Ÿ Logis cs
Ÿ Manufacturing
Ÿ Medical/Healthcare
Ÿ Smart Home
Ÿ Automo ve
Ÿ Construc on / Infrastructure/Smart city
Ÿ Retail
Ÿ Energy
Ÿ Agriculture
Ÿ Aerospace
Ÿ Mining
Ÿ Environment

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Fig.2.1 – Applica ons of IoT

2.1.2 Logis cs

The technology of IoT can be implemented in various fields to achieve desired results like smoother
opera on, hassle free communica on, enhanced produc vity, energy conserva on etc.
One of the major tasks in Logis cs sector is to manage traffic and fleet to enhance the opera onal
efficiency. This can be achieved by reducing human interven on and adap ng technological solu ons.
IoT technology can be effec vely u lized.
Some applica ons are listed below:
1. Traffic and Fleet management
IoT adds value in op mum u liza on of assets and enhance opera onal efficiency. Vehicles are
among the assets most ripe for improved efficiency, especially in terms of traffic and fleet

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management. Vehicle telema cs and vehicle-infrastructure integra on have been vanguard


applica ons in the use of sensor data.
2. Resource and Energy management
IoT sensors are best suited to track all kinds of resources like petroleum, natural gas, electricity,
water etc. Implementa on of IoT technology reduces waste and prevent disasters. IoT can be a
cri cal component of the smart energy grid of the future.
3. Safety and Security
IoT technology can be used to monitor equipment and personnel. Union pacific has
implemented IoT technology to monitor track failure using sensors. This technology predicts
equipment failure and reduces the risk of derailment.
4. Health monitoring
This technology can be used to prevent industrial accidents and monitor health of individuals by
using wearable technologies like smart watches.

Fig.2.2 – Traffic and Fleet Management

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2.1.3 Manufacturing

Network control and management of manufacturing equipment, asset and situa on management or
manufacturing process control bring the IoT within the realm of industrial applica ons and smart
manufacturing as well. The IoT intelligent systems enable rapid manufacturing of new products, dynamic
response to product demands and real- me op miza on of manufacturing produc on and supply chain
networks, by networking machinery, sensors and control systems together.

Fig.2.3 – Use of IoT in manufacturing

Some applica ons are listed below:


1. Automated process controls
Digital control systems to automate process controls, operator tools and service informa on
systems to op mize plant safety and security are within the purview of the IoT.

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Foundation Skills in IoT

Fig.2.4 –Automated process

2. Asset management
This can also be used in asset management via predic ve maintenance, sta s cal evalua on and
measurements to maximize reliability.
3. Energy op miza on
Smart industrial management systems can also be integrated with the Smart Grid, thereby
enabling real- me energy op miza on. Measurements, automated controls, plant
op miza on, health and safety management, and other func ons are provided by a large
number of networked sensors.

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Fig.2.5–Energy conserva on using smart grid

4. Intelligent maintenance system


IoT-based predic ve analy cs technologies are used to monitor connected machines and to
predict machine degrada on and further to prevent poten al failures. The vision to achieve
near-zero breakdown using IoT-based predic ve analy cs are the trends for future development
of e-manufacturing and e-maintenance ac vi es.

Fig.2.6 – Benefits of IoT

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Foundation Skills in IoT

The term IIoT (Industrial Internet of Things) is o en encountered in the manufacturing industries,
referring to the industrial subset of the IoT. IIoT in manufacturing would probably generate so much
business value that it will eventually lead to the fourth industrial revolu on. It is likely that in the future,
successful companies will be able to increase their revenue through Internet of things by crea ng new
business models and improve produc vity, exploit analy cs for innova on, and transform workforce.
The poten al of growth by implemen ng IIoT is unimaginable.
While the connec vity and data acquisi on are impera ve for IIoT, predic ve maintenance is probably a
rela vely "easier win" since it is applicable to exis ng assets and management systems. The objec ve of
intelligent maintenance systems is to reduce unexpected down me and increase produc vity and can
generate big saving over total maintenance costs. Industrial big data analy cs will play a vital role in
manufacturing asset predic ve maintenance.

2.1.4 Medical/ Healthcare

IoT devices can be used to enable remote health monitoring and emergency no fica on systems.
We will study some applica ons of IoT being used in Healthcare sector.

Fig.2.7 – Use of IoT in Medical/Healthcare

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Some applica ons are listed below:


1. Remote health monitoring and Emergency No fica on system
Health monitoring devices can range from blood pressure and heart rate monitors to advanced
devices capable of monitoring specialized implants, such as pacemakers, Fitbit electronic
wristbands or advanced hearing aids.
Some hospitals have begun implemen ng "smart beds" that can detect when are they occupied
and when a pa ent is a emp ng to get up. It can also adjust itself to ensure appropriate
pressure and support is applied to the pa ent without the manual interac on of nurses.
Specialized sensors can also be equipped within living spaces to monitor the health and general
well-being of senior ci zens, while also ensuring that proper treatment is being administered
and assis ng people regain lost mobility via therapy as well.

Fig.2.8 – Remote pa ent monitoring

2. Encourage Healthy living


Some consumer devices like connected scales or wearable heart monitors encourage healthy
living. More and more end-to-end health monitoring IoT pla orms are coming up for antenatal
and chronic pa ents, helping one manage health vitals and recurring medica on requirements.

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Foundation Skills in IoT

Fig.2.9 – Wearable technology

Advantages of IoT:
1. Reduced costs
With IoT, pa ents can be monitored in real me, thereby cu ng down unnecessary physician
visits. Advanced monitoring techniques will help pinpoint the health problem thereby
elimina ng conduc ng huge tests and procedures to just find the problem.
2. Improved treatment outcome
Connected health enables caregivers to get access to real- me informa on resul ng in data-
driven, informed decisions and evidence-based treatments can help provide mely care and
boost treatment outcomes.
3. Real me disease management
With con nuous monitoring of pa ents and access to real- me data, diseases can be treated
proac vely before their condi on worsens.
4. Minimizing errors
Automated workflow, accurate data collec on and data-driven decisions cut down wastes,
minimise errors and reduce system costs.
5. Improved pa ent experience
Connected health genuinely focuses on pa ent centricity. Be er accuracy in diagnosis,
proac ve treatment, mely physician interven on and improved treatment outcome lead to
accountable care resul ng in high trust among pa ents.

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2.1.5 Smart Home Applica on

An IoT system finds applica ons in homes. The objec ve is to control various appliances remotely to
conserve energy and enhance security.
One example would be a connected lamp that can have Wi-Fi embedded into it so that it can then be
turned on/off and dimmed via a Smartphone app or remotely via a Cloud solu on.

Local
user

Fig.2.10 – Home scenario of IoT

Fig.2.11 – Home automa on example

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Foundation Skills in IoT

The feature of the WiFi Module used in this connected outlet can be that one doesn't have to do any
programming at all at the device level and one doesn't have to add an applica on CPU to the design.

58% 19:49

iChipNET

Connect ne
The Device Networking Authority
status Completed.
off ‘Not Ac ve’

on ‘Room’ Light’

off ‘Washing Machine’

off ‘Dryer’

off ‘Not Ac ve’

off ‘Not Ac ve’

off ‘Not Ac ve’

off ‘Not Ac ve’

Fig.2.12 – App in the smart phone

WiFi module with microcontroller


The module connects to Cloud Solu on automa cally and becomes accessible for the purpose of control
and management. Since the data from the WiFi module regarding the state of the power sockets goes to
Cloud solu on and the app accesses the connected power socket through the Cloud Solu on, the app
can be used by both a local user in the proximity of the connected power socket, as well as by a remote
user in some other loca on.
From the above example it can be seen that for IoT implementa on one has to know all the components
required. Simple to use building blocks for mee ng the requirements and developing IoT applica ons
can be a faster approach to reach the goal of ge ng everything connected.

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There exists an almost bewildering choice of connec vity op ons for electronics engineers and
applica on developers working on products and systems for the Internet of Things (IoT).

Fig.2.13 – WiFi module with controller

2.1.6 Automo ve

It will not be a surprise that in the year 2020, 82% of all cars marketed will be IoT connected. Automakers
have correctly no ced a growing trend and a significant business opportunity for connec ng their cars.
The manner in which public transporta on, such as buses and trains are operated, will also transform
because of the IoT.
Some applica ons are listed below:
1. So ware update in real me
Currently automakers are connec ng their vehicles in two ways:
Ÿ Embedded
Ÿ Tethered

Embedded cars use a built-in antenna and chipset, while tethered connec ons use hardware to
allow drivers to connect to their cars via their smart phones. Internet connec vity in vehicles
allows car companies to release so ware updates in real me, which is extremely important
during the recall.

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Foundation Skills in IoT

Fig.2.14 – Connec ng automo ve with smart phone

2. Vehicle performance analysis


Automo ve companies can use data from the car to analyse its performance and obtain valuable
data on how drivers use their cars.

Fig.2.15 – So ware upda on using IoT

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3. Cross selling
More connec vity provides more ways for automakers to cross-sell their products and services
to customers. Typical example is the Mahindra e2O car (EV) which is monitored and the
customer is promptly alerted and supported on his driving performance and car care including
the ba ery status.
4. RFID (Radio Frequency Iden fica on)
RFID system is o en seen as a prerequisite for an IoT par cularly in automobiles. RFID is an
automa c technology and aids machines or computers to iden fy objects, record metadata or
control individual target through radio waves. Connec ng RFID reader to the terminal of
Internet, the readers can iden fy, track and monitor the objects a ached with tags globally,
automa cally and in real me, if needed. This is the so-called Internet of Things (IoT).

Fig.2.16 – RFID applica on

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Foundation Skills in IoT

Further reference:
h ps://www.youtube.com/watch?v=Q8Cn47L8FRQ - Connected Vehicle: The Future of
Transporta on
h ps://www.youtube.com/watch?v=aOFZqecYk2g - Intelligent Transporta on System

2.1.7 Construc on/Infrastructure/Smart city

Greater promises are in the field of Smart homes and Smart ci es where reduced energy use, access to
care, improved quality of life, safety, reduced environment risks and efficient commu ng in the city
transport system can be achieved with IoT systems.

Fig.2.17 – Smart city concept

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Some applica ons are listed below:


1. Ligh ng, Asset tracking and Smart energy

Fig.2.18 – Ligh ng, asset tracking and smart energy

2. IoT Applica ons in smart city


Few applica ons of IoT in Smart city are listed below:
- Environmental monitoring
- Smart waste management
- Smart ci zen
- Traffic intensity monitoring
- River monitoring
- Outdoor parking management

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Foundation Skills in IoT

Fig.2.19 – IoT in smart city

Fig.2.20 – Smart waste management

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Loca on of Tiered Pricing


parking Parking
Availability

Fig.2.21 – Smart parking

Infrastructure management:
Monitoring and controlling opera ons of urban and rural infrastructures like bridges, railway tracks, on-
and offshore- wind-farms is another applica on of IoT. An IoT infrastructure can be used for monitoring
any events or changes in structural condi ons that can compromise safety and increase risk.
It can also be used for scheduling repair and maintenance ac vi es in an efficient manner, by
coordina ng tasks between different service providers and users of these facili es. IoT devices can also
be used to control cri cal infrastructure like bridges to provide access to ships. Usage of IoT devices for
monitoring and opera ng infrastructure is likely to improve incident management and emergency
response coordina on and quality of service, up- mes and reduced costs of opera on in all
infrastructure related areas.

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2.1.8 Retail

The way forward in Retail segment is to automate processes that can enhance store opera ons and aid in
smooth management. There are various applica ons where IoT can be implemented. In this sec on, we
will discuss some applica ons of IoT in Retail stores.
1. Predic ve equipment maintenance
Every retail store will have a lot of equipment which is u lized in store opera ons. Every care
should be taken to maintain equipment in good working condi on. IoT technology is u lized to
manage energy or predict equipment failure or detect issues rela ng to equipment.
2. Smart Transporta on
Moving merchandise from one loca on to another more efficiently is the main objec ve of
Smart Transporta on. IoT Technology can be u lized for maintenance of transport, tracking and
op miza on of route.
3. Connected consumer
The consumer can find products, offers and best prices using their cell phone. Customized offers
can be provided to consumers and an alert can be sent to their mobile number. This is possible by
using IoT Technology.
4. Smart Store
The IoT technology can be u lized to analyse traffic at various retail stores. This helps in
understanding the en re shopping journey and experience of consumers at various retail stores.
The store associate can also collect feedback from consumers.

Fig.2.22 – Inventory management

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2.1.9 Energy

Integra on of sensing and actua on systems, connected to the Internet, is likely to op mize energy
consump on as a whole.

Fig.2.23 – Smart energy management

It requires IoT devices to be integrated into all forms of energy consuming devices (switches, power
outlets, bulbs, televisions, etc.) and be able to communicate with the u lity supply company in order to
effec vely balance power genera on and energy usage. Such devices would also offer the opportunity
for users to remotely control their devices, or centrally manage them via a cloud based interface and
enable advanced func ons like scheduling (e.g., remotely powering on or off hea ng systems,
controlling ovens, changing ligh ng condi ons etc.).

Fig.2.24 – Smart home

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Besides home based energy management, the IoT is especially relevant to the Smart Grid since it
provides systems to gather and act on energy and power-related informa on in an automated fashion
with a goal to improve the efficiency, reliability, economics, and sustainability of the produc on and
distribu on of electricity. Using advanced metering infrastructure (AMI) devices connected to the
Internet backbone, electric u li es can not only collect data from end-user connec ons, but also
manage other distribu on automa on devices like transformers and switching controls.

SOLAR AND WIND


POWER PLANTS

Fig.2.25 – Smart grid

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2.1.10 Agriculture

The Food and Agricultural Organisa on of the UN (FAO) predicts that the global popula on will reach 9.6
billion people by 2050. In order to keep pace, food produc on must increase by 70% by 2050.
Current Barriers:
Ÿ Slowing down of produc vity
Ÿ Limited availability of arable land
Ÿ Climate changes
Ÿ Increasing need of fresh water

Solu ons:

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Foundation Skills in IoT

Fig.2.26 – Smart farming

Key benefits of IoT in Agriculture:

Fig.2.27 – Benefits of IoT in agriculture

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2.1.11 Aerospace

Commercial avia on covers many segments such as:


Ÿ Transporta on
Ÿ Business avia on
Ÿ Autonomous unmanned aircra of the future

Opera on and maintenance of these sectors need to subscribe to governmental control of airspace and
airspace opera ons and as such it is a highly-regulated domain.
The IoT model uses data collected from devices and transmi ed through the network to cloud services,
where the real- me intelligence drives produc vity and opera onal gains. There is no single owner who
controls the en re solu on, or system of systems.
Airlines typically own the aircra and the associated ground maintenance facili es; communica ons
have to go through avionics radios, the Aircra Communica ons Addressing and Repor ng System
(ACARS) data link, or commercial broadband services; and in flight the opera ons are controlled by the
airspace operators, typically run by government agencies such as the FAA or EUROCONTROL or DGCA in
India.
This mul -owner, mul -tenant environment makes it par cularly challenging to implement system-of-
system efficiencies and to exploit data in the emerging concepts of IoT. Although the automa on
provided by IoT allows for more efficient opera ons, new security and safety requirements to ensure
that the excellent safety record of commercial aerospace is not compromised is needed.
One of such schemes is implemented through an open, interna onally agreed-upon cloud service:
System Wide Informa on Management (SWIM). SWIM aggregates data about all aspects of aircra
opera ons, including flight paths, coordina on in take-off and landing, weather informa on, and
opera onal data about airspace and airports. By combining data from various sources, addi onal
benefits can be provided. For example, an aircra encountering turbulence can report that informa on
through SWIM to allow other air space users to avoid that area. Use of IoT concepts in the Management
and Opera on of individual devices in this frame work need to obtain an aircra type cer ficate, which in
turn means that devices within the aircra have to be safety-cer fied, typically following the RTCA DO-
178 and EUROCAE ED-12 standard for so ware, and RTCA DO-274 and EUROCAE ED-80 for hardware.

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Fig.2.28 – System Wide Informa on Management (SWIM) requirement for IoT

Some of the IoT benefits have been already put to use in the aircra . For example, Sensor packages that
monitor an engine's usage and collect performance, vibra on and fuel consump on data have been in
existence for a number of years. This data enables the engine manufacturer to advise the carrier on
correc ve measures, usually during scheduled maintenance phases and has been used to predict and
op mize when maintenance is required based on analysing this data over many years of opera on.
With the advent of IoT, greater connec vity to the aircra has enabled engine manufacturers to exploit
this data just in me for allowing prompter servicing as well as advising on opera onal changes, such as
those that would result in fuel savings or other advantageous opera ons (for example, changing a
landing sequence to put less stress on the engine).
Using IoT intelligence also have driven business model changes. For example, IoT systems give engine
manufacturers the ability to lease engines to carriers based on actual usage in flight, rather than selling
them outright, reducing capital expenses (CAPEX) for operators. Under this business model, the engine

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manufacturer takes responsibility for maintaining and op mizing the engine, which can be of significant
value to the carrier. In the past, carriers could mi gate the risk of equipment failure only by taking an
aircra out of service for inspec on at scheduled intervals; nevertheless, in some cases equipment
failure could s ll lead to unscheduled out-of-service aircra , which is very expensive and disrup ve for
the airlines.
Predic ve maintenance, along with synchronized logis cs—made possible by interconnected smart
sensors and data analy cs linked to the logis cs system—reduces not only the risk of in-flight failure but
also the number of aircra si ng idle in hangars, awai ng parts and service.
With a worldwide fleet, it's essen al to have the right parts and engineering resources when and where
they're needed. Real- me IoT systems that can match maintenance repair and overhaul (MRO)
requirements with parts availability can help ensure the mely delivery of parts and service engineers.

Further reference:
h ps://www.youtube.com/watch?v=riSLyE57IdA - Connected Avia on Solu on at Dubai IoT
World Forum
h ps://www.youtube.com/watch?v=emAJwuwvstw - Internet of Aircra Things: aircra data
management solu ons

2.1.12 Mining

The biggest drivers for the use of technology are operator safety and comfort because it helps keep
operators away from hazardous areas.
Mine sites that put technologies to work have also experienced a number of other valuable benefits such
as:
Ÿ Increased produc vity
Ÿ Higher equipment u liza on
Ÿ Less machine damage

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Fig.2.29 – Mining opera ons

Applica ons of IoT for improving safety


1. Vision
Includes mul ple cameras configurable for machines from any manufacturer. The in-cab display can
show up to four cameras, with manual or automa c rota on.
2. Personnel
For underground long wall applica ons, the system uses RFID tags to locate and iden fy workers long
the face.
Protec ons include shield advancement preven on, while allowing equipment to keep working in
the presence of cleared maintenance technicians.
3. Proximity Awareness
Proximity awareness adds GNSS capabili es for surface opera ons. It allows to detect and display
the loca ons of other equipment beyond the reach of its radars and allows pre-programmed
informa on such as avoidance zones, haul road maps and more to be displayed in the cab.

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4. Object Direc on
Adds radar capabili es to mobile surface equipment. Automa cally detects hazards such as other
equipment or vehicles within cri cal zones around the machine.
Can be added as an a ermarket solu on and is available for any brand of equipment.
5. Driver Safety System
An in-cab camera system measures operator eye movements to spot distrac on events and
determine the onset of fa gue. Used with an operator training and awareness program, it is a
powerful tool for mi ga ng the root causes of many site accidents.
6. Machine to Machine Communica on
Eliminates data gaps and the need for site-wide radio coverage. The system stores data on the on-
board display and sends it to the office whenever they come within range of hot spots located
around the site.
7. Capture and Playback
Records incidents for playback, analysis and training opportuni es. Enhanced repor ng helps
iden fy the best operators by comparing incidents to produc vity.

Fig.2.30 – Safety applica on using IoT

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8. Avoidance Zones: Building Virtual Fences


Mine sites can be dangerous places both to the people who work there and to the equipment they
operate. Mining companies are commi ed to preven ng as many risks as possible, yet dangers
remain on even the safest sites.
Mines keep people and equipment out of harm's way by restric ng the most dangerous areas. These
areas may feature hazardous terrain or contain fixed assets like buildings and power lines that pose a
collision risk to large mining equipment. There also may be the por ons of the site that are
hazardous to operators, such as areas where there is excessive noise, dust or other poten al threats
to health and safety.
One approach to managing these restricted areas is to put up fencing that keeps people and
equipment away and to install signage that warns of the poten al danger which involves cost. A
be er solu on is to use the latest technologies to create “virtual” fences that warn machine
operators when they are approaching a restricted space.
Avoidance zone systems use global posi oning, wireless radio technology and office so ware to
map the mines and create electronic fences that iden fy worksite boundaries. Machine operators
and mine controllers can view avoidance zones on a digital display either in the cab or in the control
room. Displays also show the posi on of other equipment in the area to give the operator complete
awareness of the work environment. Mul ple avoidance zones can be configured and some systems
also provide operators with an audible message that they are nearing an avoidance zone. These
systems work on a wide variety of equipment, including trucks, dozers, graders, loaders, scrapers,
drills, draglines, shovels and medium and light vehicles.

Fig.2.31 – Virtual fence

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9. Smart Rou ng and Lane Maintenance:


Lane maintenance is one of the most important things in mining as it results in high maintenance
costs for equipment such as Tire wear and tear. Equipment uses global posi oning, wireless radio
technology and office so ware to map mines and sends real me informa on about the health of
the lanes based on sensor data feed of pressure changes on wheels being on route. Machine
operators and mine controllers can view lane status on a digital display either in the cab or in the
control room. Displays also show the posi on of other equipment in the lane and area to give the
operator complete awareness of the work environment. These systems work on a wide variety of
equipment, including trucks, dozers, graders, loaders, scrapers, drills, draglines, shovels and
medium and light vehicles by integra ng the data feed from all the equipment and systems and
feeding back into the equipment.

Fig.2.32 – Smart rou ng and lane maintenance

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Foundation Skills in IoT

2.1.13 Environment

Environmental monitoring applica ons of an IoT system typically use sensors to assist in environmental
protec on for monitoring:
Ÿ Air quality
Ÿ Water quality
Ÿ Atmospheric or soil condi ons
Ÿ Movement of wildlife and their habitats

Development of resource constrained devices connected to the Internet also mean that other
applica ons like earthquake or tsunami early-warning systems can also be used by emergency services
to provide more effec ve aid. IoT devices in this applica on typically span a large geographic area and
can also be mobile. It has been argued that the standardiza on of IoT brought to wireless sensing will
revolu onize this area.

Fig.2.33 – Earthquake or tsunami warning system

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Acronyms used in this unit:

ACARS Aircra Communica ons Addressing and Repor ng System

DGCA Directorate General of Civil Avia on

FAA Federal Avia on Administra on

FAO Food and Agricultural Organiza on

IDE Integrated Development Environment

IIoT Industrial Internet of Things

RFID Radio Frequency Iden fica on

SWIM System Wide Informa on Management

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Foundation Skills in IoT

Summary

We have briefly discussed various applica ons of IoT in various sectors. The applica ons are listed below.
Logis cs:
1. Traffic and fleet management
2. Resource and energy management
3. Safety and security
4. Health monitoring
Manufacturing:
1. Automated process controls
2. Asset management
3. Energy op miza on
4. Intelligent maintenance system
Medical / Healthcare:
1. Remote health monitoring and emergency no fica on system
2. Encourage healthy living
Automo ve:
1. So ware update in real me
2. Vehicle performance analysis
3. Cross selling
4. RFID (Radio Frequency Iden fica on)
Construc on/Infrastructure/Smart city:
1. Ligh ng, asset tracking and smart energy
2. Environmental monitoring
3. Smart waste management
4. Smart ci zen
5. Traffic intensity monitoring
6. River monitoring
7. Outdoor parking management
Retail:
1. Predic ve equipment maintenance
2. Smart transporta on

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3. Connected consumer
4. Smart store
Energy:
1. Smart grid
2. Smart home
Agriculture:
1. Smart farming
Aerospace:
1. System Wide Informa on Management (SWIM)
Mining:
1. Improving safety
2. Building virtual fences
3. Smart rou ng and lane maintenance
Environment:
1. Environmental protec on

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3. Use Cases - Automo ve
Unit 3.1 - Breath Alcohol Igni on Interlock Device
Unit 3.2 - Health Monitoring of Tractors
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to


1. State the importance and benefits of 'Breath Alcohol Igni on Interlock Device' IoT applica on
2. Describe various features of 'Breath Alcohol Igni on Interlock Device'
3. Describe how the 'Breath Alcohol Igni on Interlock Device' works
4. State the importance and benefits of 'Health Monitoring of Tractors' IoT applica on
5. Describe various features of 'Health Monitoring of Tractors'
6. Describe how the 'Health Monitoring of Tractors' works

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Foundation Skills in IoT

UNIT 3.1: Use Case 1 – Breath Alcohol Igni on Interlock Device

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Breath Alcohol Igni on Interlock Device' IoT applica on
2. Describe various features of 'Breath Alcohol Igni on Interlock Device'
3. Describe how the 'Breath Alcohol Igni on Interlock Device' works

3.1.1 Scenario
Drinking and driving is one of the main causes of road accidents. It is also important to know that more
than 70% of road accidents are due to drunk driving.
The US Na onal Highway Traffic Safety Administra on (NHTSA) has mandated the installa on of an
Igni on Interlock System in vehicles to control to drunk driving.
Breath Alcohol Igni on Interlock Device (BAIID) employs sensors to test the breath sample and the
vehicle will start only if the alcohol concentra on (Breath Alcohol Concentra on) is below the set point.
Thus, these devices will help in controlling accidents due to drunk driving.
This use case describes handheld and base unit to meet the Requirement of NHTSA guidelines.

3.1.2 Design

This system uses a handheld unit, a base unit and a cloud base data collec on and an analysis unit.
BAIID system is remotely connected to the base unit through GPRS/GPS/Wi-Fi interface.
The system can store the data for three months with a driving usage limit of 24 hours of driving per day as
per the NHTSA guidelines. The driver has to visit the nearest service sta on once in every 3 months for
data collec on, analysis and scru ny for a defaulter driver.
The main tasks of a 'handheld' unit are:
Ÿ Handle user inputs via switches
Ÿ Perform BAC (Breath Alcohol Concentra on) test
Ÿ No fy the status
Ÿ Transfer the data to the base unit

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Ÿ Rolling retest features


Ÿ Generate snapshot of the face
Ÿ jpeg encoding of the image
Ÿ Storage in the local system
Ÿ Monitor various temperature sensors
Ÿ Handle the heat management as and when needed
The main tasks of a 'base' unit are:
Ÿ Communica on with the 'handheld' unit
Ÿ Transferring BAC test results for controlling the car igni on control unit
Ÿ Storage of BAC results into Flash
Ÿ Tamper switch monitoring and recording informa on related to it into Flash
Ÿ Monitor ba ery fuel gauge
Ÿ Temperature and Axis sensor monitoring

3.1.3 Data Gathering


So ware Architecture:

Applic on Code Ext


System Camera peripherals JPEG
App
Thread GSM Encoder
unit Sensor & Sensors

CMSIS-RTOS CMSIS-Driver APl CMSIS DSP Lib

Real Time Sensor


CMSIS Kernel STM Device HAL
SDK

CMSIS core APls(ARM-M processor)

Cortex Other
MCU Timer Sensors
CPU Peripherals

STM32L151

Fig.3.1 – So ware architecture

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Foundation Skills in IoT

Handheld Unit state diagram:

Reset Validate fuel


seq. Hardware cell temp Temp.
Power ON
unit calibra on
Fuel Cell temp.
not in range,
Perform BAC test and Take 1 snapshot recalibrate
Proximity not take 2ⁿ snapshot Image Request image data Bluetooth
acceptable BAC Test star
t m mgmt.. Receive Comm.
ers a p s hot compressed image
sn
Acquire BAC

Flow intensity
Storage save
not acceptable Trigger random
data

Time Random
unit Scheduler Test test (30sec-30min)
Random meout

Data Data transfer (BAC record) Data To base unit serial


Acquisi on Transfer comm.
To c
to entra
Read tamper data System Gondby l ser cellular
sta ver
Standby
Wake comm.
Tamper Up Rolling test
Wait for
Monitoring Timeout Ini ate rolling re-test

Fig. 3.2 – State diagram of handheld unit

Handheld Unit Flow Chart:

Request 1st image data and receive


compressed image from Camera via Bluetooth
Start test and store it in flash

Hardware ini aliza on start BAC test, blow the Air in tube
1
Display message system
Display
ini aiza on
if air pressure message,
== standard “blow with
Measure the temp of Air flow more
tube, fuel cell, Flow valve pressure
intensity”

If cell temp No Calibrate cell using


== Calibrate
heater controlcell
unit Request second snapshot during
stand cell tmp using heater BAC test and store it in flash
Yes control unit

Display message Measure fuel cell output


system
ready for BAC test 2

Fig. 3.3 – Flow chart of handheld unit

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Display “Give random


test”. Sound Audio
buzzer. Stop ING ctrl
1 mer if s ll ac ve.
Yes No

Start BAC test me (3min).


Display “Give rolling test”. If rolling retest
Sound Audio buzzer. meout

Send ING ctrl lock event Yes If ING Crtl mer


to base unit. meout

Wait ll
meout
Put device in standby mode and wait for the
meout due to rolling retest mer or random retest
me or ING ctrl mer.

Fig. 3.3 – Flow chart of handheld unit (contd)

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Foundation Skills in IoT

If Fuel cell No Glow Red LED,


Val== do Audio buzzer and
Stand. BAC Display “Test Fail”
VAl

Yes
Glow Green LED, do Audio buzzer Store Data in Local Flash
and Display “Test Pass”

Generate a random number if not


Stop BAC test mer if ac ve.
between 30 sec and 30 min. Yes random No
Start mer for Rolling retest
start mer for (Random re- and rolling
meout (30min)
test, ING ctrl(5 min) meout test

Send BAC test data to base unit via serial and to


central server via GSM/GPRS module.

Fig. 3.3 – Flow chart of handheld unit (contd)


Base Unit State Diagram:

Power ON
se Rese
Wait for rolling test data on serial port

qu t loc n
k_
en
ce ca o_ro
r_I llin
Hardware Read data Serial loc NG e g_te
unit Comm. k I ve st/
NG nt
ctr on U
V l. AR
NA Parse data
T
p er, ta to
am da
d t el BAC test Lock/Unlock Car igni on
p en lev
Ap ery ta evalua on LGN CTRL ctrl
Tamper ba C da
Monitoring BA
Data
Acquisi on sto
re
da
ta
to
flash
Naviga on Go to
Data Fuel Gauge Data standby System Wake Up
Rolling Test
level storage Standby

Fig. 3.4 - Base unit state diagram

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Participant Handbook

Base Unit Flow Chart:

Start

Hardware in aliza on

Get data from serial port


Parse the data.

If Yes
meout
event
No

If BAC Put device to standby mode,


test pass Lock Igni on Control wait for data
on serial port to wake-up
Yes
Get Naviga on informa on using
Unlock lgni on Control Axis sensor, get tamper Store BAC test data, Tamper data,
switch status, fuel gauge info Naviga on
data and fuel gauge data

Fig.3.5 – Base unit flow chart

System Ini aliza on Flow:

APP RTOS API 3 party Kernel CMSIS MCU


Hal_Unit()
Hardware Ini aliza on
(NVIC init,sysTick config, MSP init) CMSIS core
lib call
SystemClock_config()
CMSIS core
(Ini alizes the CPU, AHB and AHB and APB busses clocks) lib call

Rtos unit
os Kernel ini alize
Kernel_call
Ini alize the RTOS Kernel
for crea ng objects Configured Free RTOS
kernel call
os Kernel ini alize
Start Scheduler()
Start the RTOS Kernel CMSIS core call
Create a idle task and
other task related init

Fig. 3.6 – System ini aliza on flow

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Foundation Skills in IoT

Use case for Temperature Sensor:

Sensor Sensor SDK CMSIS MCU


Hal_Unit()
(NVIC unit, sysTick config, MSP init)
Ex_tempsensor_unit() Temp_sensor_unit()
(Ini alizes the Temperature sensor)
Ex_tempsensor_get_val()
Temp_sensor_getval()
(read the current value
(read the current register value from temp sensor)
temperature)
Return register_val
return temp_val

Read and return the Register value in Temp


sensor module

Fig.3.7 – Use case of temperature sensor

3.1.4 Security

Security is handled mul fold in this case at mul ple cases and points:
Ÿ A handshake protocol is implemented at the boot me with a unique code stored in the SD card
that allows the system to boot up with registered hardware only.
Ÿ Tamper proofing: The unit is tamper proof at the cabinet level by sensing the tamper switch on
one of the GPIO pin. If the GPIO pin gets disconnected, the unit will stop func oning and would
not even reboot again.
Ÿ System level handshake security with the service sta on server interface: Here each system
checks the unique ID of the car unit before accessing the data from the system on Wi-Fi.
Ÿ AWS data security: The cloud data is maintained with unique access code and system password
for both write opera on and system level read opera ons.

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3.1.5 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ STM321251 unit
Ÿ Temperature sensor
Ÿ BAC test unit
Ÿ Fuel cell
Ÿ Heater Control Unit
Ÿ Data Acquisi on Unit
Ÿ Data Storage Unit

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UNIT 3.2: Use Case 2 – Health Monitoring of Tractors

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of ‘Health Monitoring of Tractors' IoT applica on
2. Describe various features of ‘Health Monitoring of Tractors'
3. Describe how the ‘Health Monitoring of Tractors' works

3.2.1 Scenario

A very interes ng applica on of IoT in the automo ve domain is the monitoring health of the off-road
vehicles like tractors and earth moving equipment.
These vehicles are very expensive pieces of equipment and are put to use at far-off loca ons that are not
very easy to access. In case of break down at the work-site, it is very difficult to get the fault repair teams
to the loca on. The cost of loss of business due to off- me of the vehicles is very high.
Hence it is important for the stakeholders to be able to monitor the health of the vehicles regularly from
remote loca ons on an on-going basis.
IoT facilitates remote monitoring of the vehicle for various stake holders and enables proac ve support
to keep the machines in opera onal condi on and also provide data for design improvements to achieve
be er performance. The applica on requires use of sensors and instrumenta on of the tractor for
collec ng data and monitoring the health of the machine. The instrumenta on scheme and the details of
the arrangement are illustrated below.

Fig.3.8 – Instrumenta on scheme for tractors

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3.2.2 Design

This IoT applica on is for monitoring the tractor performance from various objec ves. Let's have a look
at the design used to achieve this.
Ÿ The connected devices here are the Tractors.
Ÿ DAU electronic unit, an embedded system monitors the tractor systems.
Ÿ DAU is interfaced to GPRS or Wi-Fi connec vity.
Ÿ Wi-Fi communica on model and enabling technology is used because of long data range.
Ÿ Cloud based compu ng is also essen al to access data from different servers and support the
proposed GUI with the required data.
This system requires sensors to monitor various parameters. The following sensors are used in this
applica on:
Ÿ Vibra on sensor for engine mount and power train
Ÿ Temperature sensor- lube oil, hydraulic oil and coolant
Ÿ Pressure sensor – lube oil , hydraulic oil and coolant
Ÿ Level sensor - oil , coolant, fuel
Ÿ Load cell - accessories loading sense
Ÿ Sensors for general voltage, frequency (rpm), current, ba ery voltage

Sensors Data Acquisi on Telemetry

Fig.3.9 – Schema c block diagram

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Foundation Skills in IoT

3.2.3 Data Gathernig

User interface, monitoring and control:


At the user end (remote loca on) following informa on is to be made available on real me in 2 formats.

Fig.3.10 – GUI- Real me display

Fig.3.11 – GUI-Histogram format

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To support the informa on at various user centres, GPRS (General Packet Radio Services) will be essen al
for mul point access to transport the individual vehicle data to the customer site and share the data
through internet connec vity. The arrangement can be as below for a fleet of tractors.

E
/LT
4G
Internet Origina on 3G/
3G/ Points
4G/ 3G/4G/LTE
LTE

Telco Wireless
Network

Hardware

Hardware
ISP/Server Base

Fig.3.12 – Telema cs of tractor using IoT

The data acquisi on unit, used in the tractor, is required to have GPRS interface to have the Internet
connec vity. GPRS / Wi-Fi will be used for communica on gateway to access the Internet.

Fig.3.13 – Connected workplace for off road opera ons through the Internet

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Foundation Skills in IoT

3.2.4 Security

The current and future connected vehicles will have system modules and infotainment modules
connected to the Internet. This will pose many security problems which were not present before when
these vehicles were considered as standalone devices. Now with IoT applica ons growing, the vehicle is
one more node in the network of other personal and public devices.
The security of a connected vehicle closely resembles a combina on of the following:
Ÿ Mobile security
Ÿ IoT security
Ÿ Applica on security
Out of the three, 'IoT security' is rela vely new and has similar challenges as connected vehicles. So, the
approach towards securing a connected vehicle will require a framework which will adapt the processes,
techniques, technologies and best prac ces from the three fields men oned above.
Poten al Risks:
Ÿ Driver distrac ons (e.g. sudden unexpected volume, wipers’ ac va on), engine shutoff or
degrada on, steering changes (autonomous vehicles)
Ÿ Risk of wrong informa on fed to safety cri cal systems like steering, braking and vehicle
malfunc on alert modules
Ÿ Reduced or nil response rates to safety set thresholds or deployment of devices like airbags and
ABS brakes
Ÿ Manipula on of response to environment vectors like traffic and road inputs and vehicle RFID
devices
Ÿ Some Less Safety-Cri cal Vehicle specific risks such as
¡ The of the vehicle or contents
¡ Enabling physical crime against occupants
¡ Insurance or lease fraud
¡ Eavesdropping on occupants
¡ The of informa on (e.g. personal profile, phone list, bank details)
¡ Vector for a acking mobile devices in the car
¡ The of PII
¡ Unauthorized tracking of the vehicles and their loca on
Recommenda ons:
Hardware Security: Use of secure boot and so ware a esta on func on, trusted pla orm module,
tamper protec on, cryptographic accelerator, ac ve memory protec on, device iden ty directly on
device. (e.g. Intel EPID, physically un-cloneable func on)
So ware Security: Secure boot, par oned OS, module level authen ca on, enforcement of approved
and appropriate behavior, secure product development lifecycle.

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Network Security: Message and device authen ca on, iden fy and enforce predictably holis c
behavior, access control.
Cloud Security: Secure authen cated channel to cloud, remote monitoring of vehicle, threat intelligence
exchange, OTA updates, creden al management.
Supply-chain Security: Authorized distribu on channel, track and trace components, con nuity of
supply, ability to iden fy uncer fied component.
Ba ery backup and SD card is provided to save limited data if there is a loss of power or connec vity.

Interface
to GPRS
DAU of the Tractor
GPRS
GPRS link
Gateway
GPRS
network Internet
Database
Base Sta on Firewall

Fig.3.14 – Telema cs based IoT for monitoring tractors

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Foundation Skills in IoT

3.2.5 Basic Equipment Required for Model

- Various types of sensors


¡ Temperature sensor
¡ Pressure sensor
¡ Level sensor
¡ Load cells
- DAU (Data Acquisi on Unit)
- ECU (Engine Control Unit)
- GPRS/GSM Trans receiver

Acronyms used in this unit:

ABS An lock Braking System

BAC Breath Alcohol Concentra on

BAIID Breath Alcohol Igni on Interlock Device

DAU Data Acquisi on Unit

GUI Graphical User Interface

NHTSA Na onal Highway Traffic Safety Administra on

RPM Revolu ons Per Minute

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Summary

1. Drinking and driving is one the main cause of road accidents. It is also important to know that
more than 70% of road accidents are due drunk driving.
2. Breath Alcohol Igni on Interlock Device (BAIID) employs sensors to test the breath sample and
the vehicle will start only if the alcohol concentra on (Breath Alcohol Concentra on) is below
the set point.
3. This system uses a handheld unit, a base unit and a cloud based data collec on and an analysis
unit.
4. A recent applica on of IoT in the automo ve domain is the monitoring of the health of off-road
vehicles like tractors and earth moving equipment.
5. These vehicles are very expensive pieces of equipment and are put to use at far-off loca ons that
are not very easy to access.
6. The cost of loss of business due to off- me of the vehicles is very high.
7. IoT facilitates remote monitoring of the vehicle for various stake holders and enables proac ve
support to keep the machines in opera onal condi on and also provide data for design
improvements to achieve be er performance.
8. The applica on requires use of sensors and instrumenta on of the tractor for collec ng data and
monitoring the health of the machine.
9. DAU electronic unit, an embedded system, monitors the tractor systems.
10. DAU is interfaced to GPRS or Wi-Fi connec vity.
11. This system requires sensors to monitor various parameters.

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4. Use Cases – Medical/
Healthcare
Unit 4.1 – Automated BP Monitor
Unit 4.2 – Remote Pa ent Monitoring
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Automated BP Monitor' IoT applica on
2. Describe various features of 'Automated BP Monitor'
3. Describe how the 'Automated BP Monitor' works
4. State the importance and benefits of 'Remote Pa ent Monitoring' IoT applica on
5. Describe various features of 'Remote Pa ent Monitoring'
6. Describe how the 'Remote Pa ent Monitoring' works

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UNIT 4.1: Use Case 1 – Automated BP Monitor

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Automated BP Monitor' IoT applica on
2. Describe various features of 'Automated BP Monitor'
3. Describe how the 'Automated BP Monitor' works

4.1.1 Scenario

IoT applica on in medical electronics has been overwhelming and likely to grow in leaps and bounds in
the coming years. This can provide innumerable advantages for providing mely a en on by the doctor
and paramedical staff. The Internet of Medical Things (IoMT) is the collec on of data from medical
devices and applica ons that connect to healthcare IT systems through online computer networks.
Medical devices equipped with Wi-Fi allow machine-to-machine communica on.
IoT devices link to cloud pla orms on which captured data can be stored and analysed.
Following can be the future developments:
Ÿ Remote pa ent monitoring of people with chronic or long-term condi ons
Ÿ The loca on of pa ents admi ed to hospitals
Ÿ Pa ents' wearable mHealth devices, which can send informa on to caregivers

Informa on gathered can connect to analy cs dashboards typically as devised for the telema cs. There
are now more possible applica ons of IoT than before because many consumer mobile devices are built
with Near Field Communica on (NFC) Radio Frequency Iden fica on (RFID) tags that allow the devices
to share informa on with IT systems.

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Accelerometer
Headbands
ALT Al meter
ECG
Digital camera

Sociometric badges ECG Electrocardiogram

EMG Electromyogram

EEG Electroencephalogram
Camera clips
Electrodermograph

Loca on GPS
Smartwatches
Microphone
OXI
OXI Oximeter

Bluetooth proximity
Sensor embedded in clothing

ECG EMG Pressure


ALT

Thermometer

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Foundation Skills in IoT

INTERNET Of MEDICAL THINGS


Analy cs

Data Storage
A
Headbands
ECG

Remote Sociometric badges

Camera clips
is
Headbands
s

ECG
aly
Command/RFI

Smartwatches
Sociometric badges
OXI
An

Sensor embedded in clothing


Analysis

Camera clips
ECG EMG
ALT

Smartwatches
ta

OXI
Da

Headbands
Sensor embedded in clothing
ECG

ECG EMG
ALT
ta

Sociometric badges
Da

Camera clips

Smartwatches

OXI

Sensor embedded in clothing

ECG EMG
ALT

Pa ent
Co
m

Gateway
m
an

Internet Network
d/
In
str
cu
on

Doctor

Nurse

Fig.4.1 – Internet of Things applied to medical applica on and Healthcare

As an example, we will study Automated BP Monitoring, also known as automated non-invasive


sphygmomanometers.

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4.1.2 Design

The process cycle gets ini ated with one press of the start bu on. The process cycle involves pressurising
the cuff, establishing the systolic pressure and diastolic pressure levels along with heart beat. At the end
of the cycle this data is presented on the display panel and also gets stored in the memory. Last 10
measurements are stored. The stored data is recallable through memory recall bu on. The process is
managed by a microcontroller to turn ON / OFF the motor – pump for pressurising the cuff; read the
pressure transducer and deduce the systolic and diastolic pressure.

1. Memory recall
bu on
LCD
P - Pump 2. Start/Stop bu on
M - Motor P M panel
3. DI - Discrete
V - Valve display
Micro Input
PT - Pr Tdr
controller
PS - Power PT Mains
supply DI 1 2 adaptor
V
Drivers for
the motor
and
I/F to the cuff
solenoid PS board
valve

Power pack

Fig.4.2 – BP monitor block diagram

- This device can be connected through IoT applica on using an RFID to Ethernet and then to a
local hub as it is not a mobile pla orm.
- This is proposed using RFID tag on the BP monitor to connect to a hub as a number of BP
monitors are expected to be in use in a health care centre.

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Foundation Skills in IoT

Ethernet
RFID
Reader

RFID Tag RF Antenna Network

Fig.4.3 – RFID integra on to internet

Ÿ Wired LAN may be used and the internet access is through the Ethernet
Ÿ Tags are to be a ached to the BP monitor. Two types of tags are available i.e., Passive and ac ve
tags.
Passive Tags
– Do not require power – draw power from the Interrogator field
– Lower storage capaci es (few bits to 1 KB)
– Shorter read ranges (4 inches to 15 feet)
– Usually 'Write Once Read Many'
Ac ve Tags
– Ba ery powered
– Higher storage capaci es (512 KB)
– Longer read range (300 feet)
– Typically can be rewri en by RF Interrogators

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Ÿ It is preferred to use ac ve tags.


Ÿ Integra on of RFID is illustrated below:

Reader
Antenna
Power from RF field
Reader -> Tag Commands
Reader

Tag -> Reader Responses

RFID Communica on
Channel

Fig.4.4 – RFID integra on to reader

Ÿ The IoT Protocol used is RFID linking to Ethernet


Ÿ BP monitor is the connected device with RFID

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Foundation Skills in IoT

4.1.3 Data Gathering

In a Hospital or outpa ent environment a number of BP monitor devices may be connected to the
Internet through a RFID reader and data collected by the machine is uploaded via an Internet gateway to
a cloud based storage server. This data is shared and processed by an applica on layer and made
available to authorised users like medical and hospital staff. Output is used for medical diagnosis and
resul ng treatment advice and alerts are transmi ed to pa ents and pa ent responders via the cloud
and internet gateways to mobile devices.

Analy cs

A Data Srorage

Remote
sis
ly
a
An
Command/RFI
Analysis

ta
Da

ta
Da
Co
m

Gateway
m
an

Internet Network
d
/I
nst
ru
c
on

Doctor

Nurse

Fig.4.5–BP monitoring integra ng to healthcare system of IoT

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Foundation Skills in IoT

4.1.4 Security

The cyber security posture of medical devices has increasingly become a concern to healthcare
providers, device manufacturers, regulators and pa ents. Due to their long useful life, unique care-
cri cal use case and strict regulatory oversight, these devices tend to have a low security maturity,
significant vulnerabili es and an overall high suscep bility to security threats.
Poten al risks:
Typical risks of security breaches and compromise of data can be broadly categorized as:
- The of Pa ent records including Pa ent Health Informa on (PHI) , social security numbers,
passwords, billing details, insurance records, etc. which can be used to cause damage to privacy
and financial loss to stake holders.
- Ransomware and malware a acks on the cri cal life and health support systems through
connected devices like wearables, in-plants, portable and mobile devices.
- Malfunc on and infec on of cri cal devices in a pa ent health support system causing
malfunc on or disablement due to malware which can put pa ents at risk.
Some Proposed Measures:
Ÿ For mobile and wearable devices:
- Enabling remote lock and wipe, to easily remove unauthorized users from the enterprise
system or to erase content of the device in case of the
- Ensure secure authen ca on, secure boot and access management of the device
- Enforcement of data encryp on
- Enforcement of device-level passwords
- Monitoring the opera ng system's integrity to avoid jailbreak and roo ng procedures
- Secure email and a achments to prevent malware being spread from personal accounts
- Prevent installa on of untrusted apps
- Log devices and ac ons for audit and manage allowed access of mobile assets
Ÿ For device manufacturers:
- Take steps to limit unauthorized device access to trusted users only, par cularly for those
devices that are life-sustaining or could be directly connected to hospital networks.
Appropriate security controls may include: user authen ca on, for e.g. user ID and password,
smartcard or biometric; strengthening password protec on by avoiding hard-coded
passwords and limi ng public access to passwords used for technical device access; physical
locks; card readers and guards.
- Protect individual components from exploita on and develop strategies for ac ve security
protec on appropriate for the device's use environment. Such strategies should include mely
deployment of rou ne, validated security patches and methods to restrict so ware or
firmware updates to the authen cated code.

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Foundation Skills in IoT

- Use design approaches that maintain a device's cri cal func onality, even when security has
been compromised, known as “fail-safe modes”.
- Provide methods for reten on and recovery a er an incident, where security has been
compromised. Cyber security incidents are increasingly likely and manufacturers should
consider incident response plans that address the possibility of degraded opera on and
efficient restora on and recovery.
Ÿ For healthcare facili es:
- The FDA is recommending that steps should be taken to evaluate network security and protect
hospital system.
- In evalua ng network security, hospitals and healthcare facili es should consider:
Ÿ Restric ng unauthorized access to the network and networked medical devices
Ÿ Making certain that appropriate an virus so ware and firewalls are up-to-date
Ÿ Monitoring the network ac vity for unauthorized use
Ÿ Protec ng individual network components through rou ne and periodic evalua on,
including upda ng security patches and disabling all unnecessary ports and services
Ÿ Contac ng the specific device manufacturer if there is a cyber security problem related to a
medical device. If you are unable to determine the manufacturer or cannot contact the
manufacturer, the FDA and DHS ICS-CERT may be able to assist in vulnerability repor ng and
resolu on
Ÿ Developing and evalua ng strategies to maintain cri cal func onality during adverse
condi ons

4.1.5 Basic Equipment Required for Model

The basic requirements for this applica on are:


- Microcontroller
- LCD panel display
- PS board
- Sphygmomanometer
- RFID Tag
- RFID Antenna
- RFID Reader

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UNIT 4.2: Use Case 2 – Remote Pa ent Monitoring

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Remote Pa ent Monitoring' IoT applica on
2. Describe various features of 'Remote Pa ent Monitoring'
3. Describe how the 'Remote Pa ent Monitoring' works

4.2.1 Scenario

The healthcare sector is growing at a rapid pace and the need for reliable health services is also in
demand. In India na onal spending for Healthcare has reached up 4.7% of GDP. Healthcare costs are on
the rise globally. The two major pointers of healthcare sector are quality of the products offered and the
access to good healthcare centers. The growing burden of chronic diseases is driving healthcare players
to look for alterna ve ways to help pa ents with chronic illness in managing their condi on.

Chronic disease account


for
86% of
healthcare costs
in the U.S.

One in five Medicare


pa ents returns to the
hospital within 30 days
of discharge
Fig.4.6 – Data on chronic diseases

Home monitoring mechanism wherein physicians and pa ents are closely connected is being adopted in
developed countries. This system promotes adherence to treatment and ensures that an early ac on can
be ini ated. This system also reduces the cost of hospitaliza on.

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Foundation Skills in IoT

Tele-health applica ons remotely connect providers and pa ents. This system u lizes remote
monitoring devices and electronic recorders.
Benefits of remote healthcare solu ons:
- Reduced hospital re-admissions and lengths of stay
- Fewer emergency room visits
- Lower cost of chronic disease care
- Improved self-management of health condi ons
- Timely, affordable and convenient access to care, wherever and whenever it's needed
- Proac ve support when it is medically necessary
- Enhanced pa ent quality of life

4.2.2 Design

Remote Health Solu ons involve integra on of 3 func ons

Collect The Sensors

Transmit and Aggregate The Gateway

Transmit and Analyse Big Data

No fy Visualiza on

Consumer Healthcare Organiza on


1 Collect 2 Transmit and Aggregate 3 Transmit and Analyse
Sensors - Bluetooth Gateway Services
- Broadband
- Cellular - Cellular EHR and Data Integra on
ng - USB
rki - POTS
two o rk - WiFi - WiFi
e tw Appliance Care Management
Ne - ZigBee
N
rea

++
re
Personal A

Popula on Health
Body A

++
Biometrics Aggregated Data
Implanted Chronic Web Portal ++
Condi on Feedback Alerts Care Coordina on
- Email HCO System
Wearable - SMS
Fitness Mobile Apps - Telephone Health Coaching
and Devices - Mail

Virtual Visits
Home 4 No fy

Fig.4.7 –Remote health solu on depic on

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4.2.3 Data Gathering

Collect - The Sensors:


Wearble sensors, such as ac vity monitors and clinical wearable devices, are used in this solu on. Such
sensors provide biometric and fitness data. This data is communicated directly to a gateway for
integra on with the pa ent record or to a big data pla orm running in the cloud for use in advanced
analy cs.

Fig.4.8 – Wearable technology

Transmit and Aggregate - The Gateway


The gateways enable mul ple medical devices to communicate back to the healthcare organisa on.
Applica on so ware runs in the edge gateway and edge gateways transmit the data to the healthcare
organiza on. The gateways also help in encryp on of data from peripherals, update controls, secure
device pairing, etc.
Transmit and Analyse - Big Data
The complex data is transmi ed to cloud service for advanced analy cs. This advanced analy cs leads to
meaningful interac on with the pa ent and the customer care provider.
No fy - Visualisa on
Some graphics tools such as dashboards, portals and mobile applica ons are built into the system.

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Foundation Skills in IoT

4.2.4 Basic Equipment Required for Model

The basic requirements for this applica on are:


- Wearable sensors like ac vity monitors, wearable devices
- Gateways, etc.
Acronyms used in this unit:

BP Blood Pressure

IoMT Internet of Medical Things

LAN Local Area Network

NFC Near Field Communica on

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156
5. Use Case - Aerospace
Unit 5.1 – Control, Data Linking and Monitoring
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Control, data linking and Monitoring for UAV' IoT
applica on
2. Describe various features of 'Control, data linking and Monitoring for UAV'
3. Describe how the 'Control, data linking and Monitoring for UAV' works

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Foundation Skills in IoT

UNIT 5.1: Use Case 1 – Aerospace – Control, Data Linking and


Monitoring of Unmanned Aerial Vehicle and Drone

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Control, data linking and Monitoring for UAV' IoT
applica on
2. Describe various features of 'Control, data linking and Monitoring for UAV’
3. Describe how the 'Control, data linking and Monitoring for UAV' works

5.1.1 Scenario

Unmanned Aerial Vehicles (UAVs) are at the forefront of an evolu on. These unmanned systems are no
longer primarily associated with war and combat situa ons. With a deadline of Sept. 15, 2015 for full
integra on into U.S. airspace, it is highly likely that UAVs will play an increasing role in their cri cal
infrastructure opera ons.
Industries such as public safety, land/ crop surveying and oil /gas are being eyed as key markets that can
benefit from the use of unmanned systems for monitoring and surveillance. For several applica ons such
as wildfire monitoring and border protec on, UAVs can even be used to protect people and save lives.
The related system for the IoT applica on for UAVs is targeted towards the Avionics for flight control and
data link and mission monitoring systems. The onboard Flight controller receives and transmits flight
data to the ground base sta on to enable the control of the flight parameters and achieve mission
objec ves. The data link acquires data from video and camera sensors which is fed to the base sta on for
analysis and record. Video data may also be used for manual mission control of the aircra or with the
auto pilot mode. The IoT systems may enable ‘aircra to aircra ’ and ‘aircra to base’ communica on.

Fig.5.1 – Unmanned Aerial Vehicle

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5.1.2 Design

Avionics and data system architecture with sensors:


The architecture of the system is illustrated in the block diagram shown below.

Pitot tube

Ÿ IMU (Accelerometer and Rate Gyro Package)


Ÿ Magnetometer
Ÿ GPS Receiver + Ac ve antenna

Fig.5.2 – Flight control and data links with sensors and actuators

The electrical power for the UAV systems is managed by two Lithium Ion Ba eries for powering the
propulsion motor through Electronic Speed controller (ESC) and other avionics. The other ba ery is used
to provide power to avionics and also acts as a backup power during cri cal situa ons.

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Foundation Skills in IoT

Typical mission profile is illustrated below.

Cruise Cruise

Ascent
Descent

Take off Landing

Fig.5.3 – UAV opera on profile -2 Hrs 10 km radius

Propulsion system:
The Propulsion system is driven by an electric motor. An electronic speed controller (ESC) with current
control capability is used for speed control of the motor. The ESC with a BEC (Ba ery Eliminator Circuit) is
chosen to provide a redundant power supply to the Auto pilot. This takes care of a single point failure due
to the power supply in comple ng the mission by the UAV.

5.1.3 Data Gathering

Monitoring and Flight Control / Auto Pilot (FC/AP) Unit:


The Flight Control /Auto Pilot unit is the heart of the UAV system. It is a micro controller based intelligent
unit capable of ensuring stable flight profile of UAV in line with the inputs received from the data link. This
implements a PID (Propor onal Integral and Differen al) control law to evolve the control commands for
the control surfaces i.e., ailerons, elevator rudder and propulsion motor. The PID controller reads sensor
inputs and then computes the desired actuator output by summing up the calculated propor onal,
integral and deriva ve components from the responses. The controller is tuned for the op mum
performance either through simula on or through test results or both. All the control commands are in
the form of PWM signal with varied ON - OFF duty cycle for different rates.

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The following sensor inputs support to the control law for flight control and auto pilo ng:
Ÿ Rate inputs from the 3 axis accelerometers and gyro package
Ÿ Air data from pitot sta c pressure sensor
Ÿ Heading from 3 axis magnetometer and GPS
Ÿ Naviga on inputs from GPS

The FC/AP unit houses the rate gyro and accelerometer pack (Iner al Measuring Unit – IMU), the
magnetometer, the GPS receiver with an ac ve antenna. Addi onal external GPS antenna will improve
the GPS recep on. Hence an external GPS antenna is also added. A pitot tube mounted at the leading
edge of the wing is integrated to FC/AP to support the naviga on func on and air data measurement and
calcula on. The FC/ AP have to be located at the Centre of Gravity (CG) of UAV for correct sensing of the
rate inputs.
Apart from flight control and auto pilo ng the FC/AP performs the following func ons:
Ÿ Monitor the Electrical power supply voltage and current for the propulsion motor and its rpm
Ÿ Release signal (PWM) for the parachute
Ÿ Storage of the flight plan
Ÿ Data logging
Ÿ Nose wheel steering
10 servo drives are used by the AP for the following controls:
Ÿ Rudder LH
Ÿ Rudder RH
Ÿ Aileron LH
Ÿ Aileron RH
Ÿ Elevator
Ÿ Nose wheel steering
Ÿ Propulsion motor rpm control
Video Transmi er Unit:
A camera sub system is interfaced with a video transmi er unit and operates at 5.8GHz.

5.1.4 Data Communica on and Analysis

This will enable the sharing of informa on and collec on of data from UAVs at different loca ons for
monitoring. Each UAV will be a device with internet connec vity. Ac ons can be pre-programmed for
opera on in autonomous mode as is the case for defence or disaster response systems.

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Foundation Skills in IoT

The UAVs are flown with pre-programmed flight plan so that they are self-contained in their flight path
and land automa cally at the end of the plan. The data covering the onboard system status alerts and the
images they capture are shared through GPRS, Wi-Fi and internet connec vity.

Internet Origina on Points

3G/4G/LTE

Telco Wireless
Network

Hardwire

Hardwire

Fig.5.4 – Group of UAV control system

The IoT applica on Outline, Analysis and Outputs


Ÿ The connected devices are UAVs with their onboard sensors and ground controllers.
Ÿ For the design of IoT, the electronic controller in the UAV has to be interfaced to GPRS for Wi-Fi
connec vity.
Ÿ Wi-Fi is chosen for the communica on model as enabling technology for the IoT because of the
data rate.
Ÿ For video streaming and data refresh, high data rate will be required.
Ÿ Though it has a smaller range compared to Sigfox or OnRamp, the data rate is the deciding factor.
The range however can be met because of the availability of the mobile towers.
Ÿ The data from UAVs with Ids will be available on the internet for user view at a remote center.
Ÿ The following data of the UAV will be monitored at the remote loca on and enabled through IoT.

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Ÿ UAV: Id, A tude of UAV – Pitch, Roll, Yaw, Heading, Loca on (GPS), Video (as captured by UAV),
Ground speed.

Interface
to GPRS

Flt Controller of the UAV


GPRS
GPRS link Gateway
N GPRS
Internet
Network Database

Firewall
Base Sta on

Fig.5.5– IoT Scheme for UAV

5.1.5 Security

The access is protected and secured for the authorised stake holders with passwords and encrypted data
links. Safety is the top priority for agencies like the FAA for the opera on of UAVs and Aircra par cularly
as it relates to secure and reliable Command and Control (C2) links and sense and avoid tac cs. Aircra
without reliable (C2) links are vulnerable to mission failure, hazardous flight and hacking.
There are a number of (C2) link solu ons which have been used. Machine to Machine (M2M) wireless
solu ons are also available using mul ple frequency op ons.
Some of the Key considera ons for secure (C2) links that need to be incorporated are:
Ÿ Access control measures by Authen ca on, Authoriza on and Accoun ng offered with secure
access control prevents unauthorized intrusion and hacking.
Ÿ Advanced Data Encryp on and the Federal Informa on Processing Standards (FIPS) which
specify publica on 197 for Advanced Encryp on Standard (AES) for cryptographic algorithms to
protect electronic data. FIPS 140 specifies 4 levels of security for cryptographic modules from 1 to
4 each building on the previous level and adding stricter measures.

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Foundation Skills in IoT

Ÿ Advanced wireless technologies like frequency hopping spectrums that can hop to avoid
detec on and mul ple user defined cryptographic keys which allow user to change key posi ons
on demand.
Ÿ Use of established wireless service providers who can provide secure networks with the above
enablers.

5.1.6 Basic Equipment Required for Model

The basic requirements for this applica on are:


- Video and Camera sensor
- Flight Control/ Auto pilot unit
- PWM
- DL modem
- Pilot tube
- ESC with BEC
- A50-14L hacker mo on
- 3.7 Ah 3S35C Lipo
Acronyms used in this unit:

AES Advanced Encryp on Standards

AP Auto pilot

BEC Ba ery Eliminator Circuit

C2 Command and Control

CG Center of Gravity

ESC Electronic Speed Controller

FAA Federal Avia on Administra on

FC Flight Control

FIPS Federal Informa on Processing Standards

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GPRS General Packet Radio Service

GPS Geographical Posi oning System

IMU Iner al Measuring Unit

M2M Machine to Machine

PID Propor onal Intelligent Differen al

UAV Unmanned Aerial Vehicle

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6. Use Cases -
Transporta on
Unit 6.1 - Smart Transporta on
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Smart Transporta on' IoT applica on
2. Describe various features of 'Smart Transporta on'
3. Describe how the 'Smart Transporta on' works

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Foundation Skills in IoT

UNIT 6.1: Use Case 1 – Smart Transporta on

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Smart Transporta on' IoT applica on
2. Describe various features of 'Smart Transporta on'
3. Describe how the 'Smart Transporta on' works

6.1.1 Scenario

Smart transporta on is the result of technological advancements in mobile terminals and automo ve
electronics. This intelligent system is genera ng huge data in urban areas and posing a challenge for data
storage and data analy cs.
The real me intelligent system is designed to analyze the following:
Ÿ Vehicle recogni on – plate number, plate colour, car body color, car logo etc.
Ÿ Clothing feature recogni on – clothing colour of upper and lower body
Ÿ Face detec on – face detec on in the image
Ÿ Behavior detec on – running, hi ng the line, intruding the region, going against the traffic rules

Fig.6.1 – Vehicular traffic

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Participant Handbook

A special system needs to be designed to handle the challenge of data storage and data analy cs

Let us take the scenario of Beijing:


- 10 million travelers everyday
- 50 million urban transporta on cards/day
- Over 9 million vehicles per day
- Over 1,00,000 opera ng vehicles GPS monitoring data
- Nearly 10,000 fixed detectors
- 100 million pieces of communica on data/day
How to manage such huge data?
This is possible with ‘smart transport’ solu on.

Urban traffic is producing data at every moment.

Parking
informa on
Accident
Road video
data

Photographing Communica on

SIM card Road data


Travel mode system service
Accident
Highway

Hardware device
Opera ng system Terminal
Travel path Railway symbol
Scheduling status

Pasenger flow Naviga on


...,etc.
Lingering
informa on Transfer
informa on

Fig.6.2 – Smart transporta on architecture

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Foundation Skills in IoT

This transport solu on provides a good pla orm for data storage and analysis.

6.1.2 Design

This transport solu on uses frontend devices like web camera and NVR (Network Video Recorder) and
backend devices like data centers. Data acquisi on and data storage are considered as frontend tasks
and data analysis as a backend task.
Frontend technology:
Intel Atom and Intel Core processor pla orms are used considering high performance, high reliability
and high scalability. The intelligent network video recorder which is compa ble to Intel processor is used.
The intelligent network video recorder will have a unique IP address. Some specifica ons of such
recorders are provided below:
- 128 –way HD access
- 348 Mbps access
- 256 Mbps storage
- 384 Mbps forwarding
- To support advanced video coding format (H.265/H.264/MPEG4/2-way HDMI and 1- way VGA)
Backend technology:
Big data processing technologies such as Spark and Hadoop architecture is used for real- me data
acquisi on and summary. Real- me data analysis and offline mining of large data can also be processed
using the same architecture.
Big data processing system includes:
- Batch Layer
- Speed Layer
- Servicing Layer

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Real- me Fake
Traffic Plate ...., etc.
Sta s cs Detec on
Algorithms
& Learning
Frameworks
Spark Real- me, Streaming Analysis
(Spark Streaming)
Based
Analy cs
Pla orm User Interface
Alert & Query
Compute (spark) Interface
Web Service/App
Load Balance & Data
Input (Ka a)
Storage (HDFS, HBase)
Data Pla orm (”Plumbing”)

Backend / Cloud Analy cs

Fig.6.3 – Backend/Cloud analy cs

6.1.3 Data Gathering

We have seen that big data processing system includes 'Speed Layer', 'Batch Layer' and 'Servicing Layer'.
Now we will see tasks performed by various layers of big data processing system.
Speed Layer
The following tasks are performed by the Speed Layer:
- Real- me streaming analysis
- Process streaming data received from devices
- Advanced analy cal applica on
The real- me data will be saved as Hbase and is called as 'History data'.

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Batch Layer
Spark compu ng engine is u lized for batch pre-computa on of data. The results of pre-computa on
are stored in Hbase. This data can be used by Servicing layer.
Servicing Layer
The Servicing layer can check the history data and batch processing view through Hbase interface.
Servicing layer can also use Spark or Spark SQL compu ng engine to realize sta s cal query func on.

IPC Smart IPC Pla orm client Large screen

service network
Recogni on
query

Data input
Pla orm Pla orm photo server
database
Cloud storage
cloud compu ng
pla orm O&M client

Cloud storage Cloud compu ng - model recogni on service

Fig.6.4 – Servicing layer

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The Spark system architecture can perform ac vi es like processing, streaming compu ng and real- me
analysis. Interac ve compu ng can support more complex machine learning and image processing
algorithm.
Results :This system is successfully implemented in one big city and has the capacity to process 1.5
million pieces of data each day

6.1.4 Basic Equipment Required for Model

The basic requirements for this applica on are:


- Spark based Analy cs pla orm
- Intel Atom and Intel core processor
- NVR- Network video recorder
- Web camera
- Cloud storage and compu ng
- Service network

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7. Use Cases - Energy
Unit 7.1 - Smart Mesh
Unit 7.2 - Condi on Based Maintenance of Distribu on Power
Transformers
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Smart Mesh' IoT applica on
2. Describe various features of 'Smart Mesh'
3. Describe how the 'Smart Mesh' works
4. State the importance and benefits of 'Condi on Based Maintenance of Distribu on Power
Transformers' IoT applica on
5. Describe various features of 'Condi on Based Maintenance of Distribu on Power Transformers'
6. Describe how the 'Condi on Based Maintenance of Distribu on Power Transformers' works

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UNIT 7.1: Use Case 1 – Smart Mesh

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Smart Mesh' IoT applica on
2. Describe various features of 'Smart Mesh’
3. Describe how the 'Smart Mesh' works

7.1.1 Scenario

Electrical grid is a network of devices func oning together to transmit the electricity from one loca on to
another. Lots of challenges have been discovered over the years that bring out the need for automa on,
digi za on and analy cs in most func ons of the grid. To make a grid smart, it is required to make each
and every unit smart (communica on enabled and connected most of the me).
One can imagine the amount of data being generated from each electricity meter and being transmi ed
to a centralized loca on as well as the me required to process this huge amount of data. An important
aspect of smart grid is a strong communica on backbone that should enable collec on of data from each
meter with minimum latency.
This is an end to end implemented solu on to digitally monitor overall opera ons of a smart grid. It
ensures that all devices in a smart grid are connected all the me on a wide area communica on
network.

7.1.2 Design

Below are important component of our solu on:


A. Hardware
1. Wi-Fi communica on module for meters
Ÿ This is used to make electricity meters smart by enabling communica on.
Ÿ These Smart Meters act as internet hubs, providing connec vity to households.
Ÿ They are also an addi onal source of revenue for u lity providers.

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2. Edge Gateway to be mounted on transformer


Ÿ It is used to collect data from each meter and authen cate meters for entering into Wi-Fi
mesh.
Ÿ It monitors health parameters of transformer such as top oil temperature, bo om oil
temperature etc.
Ÿ It uses a magnet moun ng arrangement to install gateway without any mechanical work.

Fig.7.1 – Smart mesh Fig.7.2 – Temperature sensor

B. So ware
1. Firmware for edge gateway
Ÿ It is the embedded analy cs algorithms for data cleansing, prepara on and
preprocessing.
Ÿ It forwards data to centralized database hosted in cloud environment.

2. Repor ng Applica on
Ÿ It enables u li es to region wise monitor overall opera ons including outages, energy
the , billing, communica on status, load profiling etc.
Ÿ It provides user managements – role based dashboards.

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3. Data collec on and asset tracking applica on


Ÿ This is an applica on to configure and manage electricity distribu on network.
Ÿ It defines hierarchy of device connec vity (electrical as well as communica on network).

Tri-axial Accelerometers
Ÿ Type of Measurement - Current
Ÿ Type of Measurement - Tri-axial caps Ÿ Loca on of Moun ng - Input Line
Vibra on Ÿ To Capture the current pa erns during Start, stop
Ÿ Loca on of Moun ng - Bearing, and con nuous opera on of equipment
Founda on/Overall
Nature of Faults Detected
Misalignment & Looseness Bearing Fric on

Lubrica on Gear Damage

Fig.7.3 – Tri-axial accelerometer Fig.7.4 – Current sensor

C. Communica ons
1. Implemented 802.11s protocol for communica on over Wi-Fi mesh network.
2. Cellular – 3G/LTE connec vity.
3. Ethernet connec vity.
4. Proprietary protocols implemented to form a Wi-Fi mesh network of meters and edge
gateway mounted on transformer.
5. Communica on modules to transmit data from edge gateway to central loca on database in
cloud environment.
D. Analy cs
1. Energy consump on trends at each level i.e. circuit, transformer and meter.
2. Energy the detec on and revenue loss calcula ons.
3. Outage detec on and trends.
4. Communica on network response rate monitoring.
5. Cri cal assets repor ng on priority.
6. Load profiling and energy usage.

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Digital technology that allows for two-way communica on between the u lity and its customers. The
sensing along the transmission lines is what makes grids smart. The purpose of infusing controls and
automa on is to respond digitally to our quickly changing electric demand such as:
Ÿ More efficient transmission of electricity.
Ÿ Quicker restora on of electricity a er power disturbances.
Ÿ Reduced opera ons and management costs for u li es and ul mately lower power costs for
consumers.
Ÿ Reduced peak demand, which will also help lower electricity rates.
Ÿ Increased integra on of large-scale renewable energy systems.
Ÿ Be er integra on of customer-owned power genera on systems, including renewable energy
systems.
Ÿ Improved security.
Ÿ Giving customers control – the right informa on and tools to make intelligent energy choices and
track consump on usage in real- me.

7.1.3 Data Gathering


So ware Architecture:

**iTM - Intelligent Transformer Module

Fig.7.5 – Smart Architecture

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There are 3 levels at which data gets generated in an electrical grid:


1. Substa on or circuit level (highlighted using red color line)
2. Transformer level (shown using an image of pole mounted transformer)
3. Meter level (connected in a Wi-Fi mesh network)
Special features of this solu on:
Ÿ Wireless mesh network: The solu on helps to connect each home to a massive wireless mesh
network. Data from individual meters is seamlessly transmi ed to the distribu on transformers
via the shortest and most efficient path. These paths are dynamic and adjust in real- me on
account of any malfunc oning in the mesh.

Further reading:
What is a mesh network?
h ps://en.wikipedia.org/wiki/Wireless_mesh_network

Ÿ Smart Meters act as internet hubs, providing connec vity to households. It is also an addi onal
source of revenue for u lity providers.
Ÿ Connec vity to the en re smart city ecosystem: Street light control using daylight sensors, clean
energy programs, automated tracking and billing at automobile charging points.
Ÿ Single unified interface for energy monitoring: The en re city's networks of transformers are
wirelessly connected and their data is pushed to the cloud in real- me. Operators have access to a
single, unified interface to view an en re city's consump on pa erns.
Ÿ Analy cs for con nuous energy supply: Load profiling and real- me analy cs help determine
the energy needs to provision for adequate power supply, maintain con nuous up me during
peak demand and also control power losses in transmission lines.
Ÿ Remote monitoring of cri cal power machinery: At every stage of the power genera on and
transmission process, cri cal machinery is remotely monitored in a central control sta on. Any
anomalies are picked up at a nascent stage and rec fied during a planned and scheduled
maintenance.

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7.1.4 Security

Three Layered Security:


Coupled with advanced data encryp on, user authen ca on into the smart grid system is controlled
using a three layer security algorithm.
1. There is a separate network access for consumers and u lity providers.
2. Major dashboards are provided for u li es to monitor the opera ons in below men oned
areas:
Ÿ Overall summary
Ÿ Outages or power failures
Ÿ Non-Technical loss or energy the
Ÿ Communica on network coverage
3. Role based authen ca ons are provided for individual dashboards.
For the demo purpose, current user will have all the read-only accesses of all sec ons.

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7.1.5 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ Wi-Fi communica on module for mesh
Ÿ Edge gateways
Ÿ Temperature sensor
Ÿ Customized so ware
Ÿ Tri-axial accelerometer
Ÿ Current sensor
Ÿ ERP servers
Ÿ Smart meters

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Unit 7.2: Use Case 2 – Condi on based Maintenance of


Distribu on Power Transformers

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Condi on Based Maintenance of Distribu on Power
Transformers' IoT applica on
2. Describe various features of 'Condi on Based Maintenance of Distribu on Power Transformers'
3. Describe how the 'Condi on Based Maintenance of Distribu on Power Transformers' works

7.2.1 Scenario
Power transformers are an integral part of any power distribu on network. Owing to humongous capital
and maintenance cost involved for this equipment, there exists a huge scope to op mize expenses
thereby improving the revenue.
Where do distribu on companies struggle ?
Ÿ Unavailability of dashboards or tools to visualize the status of mul ple parameters associated
with power transformers.
Ÿ Unforeseen failures in transformers leading to down me and penalty.
Ÿ Loss of asset life due to con nuous faults/failures.
Ÿ Poor maintenance planning.
Ÿ Unavailability of advanced solu ons to monitor the health of transformers.

Fig.7.7 – Consequence of Transformer failure

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Foundation Skills in IoT

7.2.2 Design
The proposed model dwarfs the limita ons with respect to the operator's capability, limited input data,
absence of intelligent monitoring devices and inability to correlate mul ple test results.
The model is based on developing an adap ve tes ng/maintenance plan based on the transformer's
history and domain exper se instead of adhering to a sta c tes ng plan. In this way, the distribu on
company can op mize maintenance cost and avoid poten al failures.
Mul ple tests are conducted as per the adap ve tes ng plan and the results are updated to a central
database from which the model fetches data for analysis. The reports are analyzed simultaneously and
various calculated parameters are evaluated for determining health index of the transformers. In case of
poten al faults or failures, the type of fault is iden fied before evalua ng the calculated parameters.
Dashboards are the most important part of this model which visualize at the trending of various test
parameters and calculated parameters. They customize the quan ty of data to be displayed as per the
requirement. Based on the analysis, the model updates the adap ve tes ng plan and the next test date is
determined.
Following parameters/tests are considered for this model building:
Ÿ Dissolved Gas Analysis (DGA)
Ÿ Oil Sample Test (OST)
Ÿ Loading history
Ÿ Winding Hot spot and Top Oil Temperature
Ÿ Degree of polymeriza on or Furanic compound analysis

Fig.7.8 – Flow chart of the design

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7.2.3 Data Gathering

Bringing Analy cs to Analysis:


The key to this approach is to maximize the amount of informa on that can be u lized from the exis ng
data set. The history of transformers form the base on which the model is developed. Accuracy of the
model is improved with increased availability of data, which has enough data points (failure points) for
tuning the model. Various faults are also iden fied based on the developed rela onships and reference
standards (IEC/IS)

Fig.7.9 – Sample Dashboard

How does a solu on dashboard look like?


Dashboards created for transformer health monitoring and assessment are shown below. Box plot
enables us to understand and analyze the overall distribu on of recorded values. Trending of mul ple
parameters helps the operator to monitor the varia on of each parameter with reference to its limits
over a period of me and thus plan necessary correc ve ac ons or maintenance ac vity in case of
abnormal varia ons. Fault iden fica on using IEC gas ra o is another cri cal feature of this model. To
assess the overall condi on, a numerical value is computed to represent the health of a transformer and
the same is compared along with its age. A unique solu on for monitoring various parameters
individually and to assess overall health of the transformer is thus achieved with this model.

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7.2.4 Security

1. Device Level Security: Devices are connected into the network with unique and dedicated
device IDs.
2. Firmware level security: Data encryp on from source (hardware) using SSL.
3. Applica on Level security : Hierarchy level access to data for relevant stakeholders using login
and password creden als.

7.2.5 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ Dissolved gas analyzer
Ÿ Oil sample tester
Ÿ Oil temperature sensor
Ÿ Polymer compound analyzer

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8. Use Cases - Retail
Unit 8.1 – Retail Sensor Pla orm
Unit 8.2 – Smart Black Box
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Retail Sensor Pla orm' IoT applica on
2. Describe various features of 'Retail Sensor Pla orm'
3. Describe how the 'Retail Sensor Pla orm' works
4. State the importance and benefits of 'Smart Black Box' IoT applica on
5. Describe various features of 'Smart Black Box'
6. Describe how the 'Smart Black Box' works

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UNIT 8.1: Use Case 1 – Retail Sensor Pla orm

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Retail Sensor Pla orm' IoT applica on
2. Describe various features of 'Retail Sensor Pla orm'
3. Describe how the 'Retail Sensor Pla orm' works

8.1.1 Scenario

According to reports, inventory distor on in the form of overstock, stock out and shrinkage represent
over $ 1 trillion worth of losses for retailers worldwide. It is also es mated that, poten al impact of IoT on
retail will range from $140 billion to over $1 trillion by 2025.
In 2015, Intel began working with the clothing manufacturer Levi's in a proof of concept to deliver near
real- me inventory monitoring in the Levi San Francisco store. Intel is marke ng this solu on as 'Retail
Sensor Pla orm'.

8.1.2 Design

RFID tags are placed on all items in the store. Data readings are forwarded to the Intel gateways and then
pushed back to back-office systems for cloud based analy cs.
The system consists of the following:
Ÿ The Intel Retail Sensor Pla orm.
Ÿ An Intel based gateway located at the back end of the store for forwarding the data to the cloud.
Ÿ The Trusted Analy cs Pla orm (TAP) is the part of the cloud based solu on. It provides tools,
algorithms, and engines to work with data scien sts to conduct advanced analy cs.
Ÿ External APIs which enables so ware developers and solu on providers to integrate new and
adjunct applica ons such as inventory loca on tracking.

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8.1.3 Data Gathering

RFID antennas are always on, gathering and dissemina ng the Stock Keeping Unit (SKU) level data on
constant basis. Since the system is con nuously scanning for products, it is able to locate and account for
every item on the sales floor at any given me.
The system provides alerts to allow stock to be replenished when running low. Once the plug and play
device is connected to an Intel gateway, via one wire, it begins collec ng and forwarding the inventory
informa on.
Intel is also developing sensor capabili es with video analy cs to analyse the way customers move in the
store, to help the retailer op mize the layout and placement of merchandise.
Results and Benefits:
1. Visibility of inventory in real- me to improve efficiency.
2. Reducing inventory costs.
3. Improved understanding of customer behavior.
4. Iden fying new usage models and retail applica ons.
5. Be er customer experience.

8.1.4 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ The Intel Retail Sensor Pla orm.
Ÿ An Intel based gateway located at the back end of the store for forwarding the data to the cloud.
Ÿ The Trusted Analy cs Pla orm (TAP) is the part of the cloud based solu on. It provides tools,
algorithms and engines to work with data scien sts to conduct advanced analy cs.
Ÿ External APIs which enables so ware developers and solu on providers to integrate new and
adjunct applica ons such as inventory loca on tracking.

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UNIT 8.2: Use Case 2 – Smart Black Box

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Smart Black Box' IoT applica on
2. Describe various features of 'Smart Black Box'
3. Describe how the 'Smart Black Box' works

8.2.1 Scenario
There is a growing concern about the decline of the vending industry. Sales are lost because of customers
preferring new ways of buying such as touch screen kiosks.
'Smart Black Box' solu on accommodates the new features that the customer wants such as cashless
payments, touch screens, etc. This solu on also enables vendors to respond to consumer tastes rapidly.

8.2.2 Design

This solu on incorporates mul ple hardware- based components onto a single so ware based pla orm.
Smart Black Box solu on has new features to help customers and vendors.
Customers:
Ÿ Cashless payment op ons.
Ÿ Touch screen op on to make selec ons.
Ÿ Interac ve digital signage.

Vendors:
Ÿ Remote management with online monitoring and diagnos cs.
Ÿ Reliable remote monitoring of temperatures for hot or cold beverages.
Ÿ Reliable data to base product and campaign data analy cs.
Ÿ New technologies for customer loyalty, including using a smart phone app that allows machines
to communicate with customers through beacon technology.

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The box is based on the Intel Vending Reference Pla orm, a secure architecture that streamlines systems
and protocols and powered by Intel vPro processor.
The network connec vity part of the solu on is provided by Jersey telecom. A SIM management
pla orm provides real – me connec vity status and control.

8.2.3 Data Gathering

The hardware is based on Intel's low power dual-core i7-3571UE processor, integra ng graphics and
suppor ng several display interfaces. The system uses the solid state Drive 520 series. It consolidates
several func ons onto a single Intel processor board, thereby lowering the total cost of the system.
The vending machines have a range of built-in capabili es including Bluetooth connec vity and social
media links. Touch screens replace bu ons to allow users to navigate through product informa on and
make selec ons. The machines also accept credit and debit cards.
The system comprises of AVA (Anonymous Viewer Analy cs), AIM counter (a viewer capable of recording
and analysing a video stream of the customer) and a web based repor ng system allowing data analysis.
All this comes with a cloud based licence and sensor management system.
The AVA feature uses an op cal sensor to view the customer and detect purchase choices and dwell
mes. The brand markets can use this informa on to ascertain the effec veness of their ads.
Results and Benefits:
Ÿ Supplier
o Real – me data on the machines, such as when to restock or when to collect cash.
o This solu on also provides faults alerts.
Ÿ Brand Marke ng
o The brand owner can ghten the supply chain, enabling just in me delivery Losses due to
overstocking significantly reduced.

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8.2.4 Basic Equipment Required for Model

The basic requirement for this applica on is Intel- dual core i7-357UE processor

Acronyms used in this unit:

AVA Anonymous Viewer Analy cs

SKU Stock Keeping Unit

TAP Trusted Analy cs Pla orm

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9. Use Cases –
Manufacturing
Unit 9.1 - Condi on Based Maintenance of Rota ng Equipment
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Condi on based Maintenance of Rota ng Equipment' IoT
applica on
2. Describe various features of 'Condi on based Maintenance of Rota ng Equipment'
3. Describe how the 'Condi on based Maintenance of Rota ng Equipment' works

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UNIT 9.1: Use Case 1 – Condi on based Maintenance of


Rota ng Equipment

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Condi on based Maintenance of Rota ng Equipment' IoT
applica on
2. Describe various features of 'Condi on based Maintenance of Rota ng Equipment'
3. Describe how the 'Condi on based Maintenance of Rota ng Equipment' works

9.1.1 Scenario

Typical challenge in any industry is related to maintenance of cri cal assets e.g. 'Homogenizer' in food
processing industry, 'Transformers' in electrical grid, 'Compressors and Conveyors' in manufacturing
industry. Most industries follow a periodic and preven ve maintenance strategy to maintain these
cri cal assets. This approach leads to unnecessary maintenance ac vi es without assessing the current
condi on of the asset.
This use case details IoT applica on in maintenance of equipment.

9.1.2 Design

The solu on is a complete end to end solu on that enables plant managers to op mally design the
maintenance strategy based on the actual condi on of the asset there by reducing overall maintenance
cost.
The solu on consists of various components such as smartedge gateway having inbuilt fast data
acquisi on modules, integrated analy cs algorithms, advance data compression and storage methods
etc. Data acquisi on is done at the sampling speed of 20 KHz.

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Going beyond the preven ve maintenance strategy, a condi on based predic ve maintenance solu on
has been developed that gives addi onal me for plant managers to plan the maintenance ac vi es for
the cri cal assets adequately. Validated machine learning based algorithms for various types of machine
e.g. motor, pumps, compressors, etc. have been developed.
These algorithms quan fy the current condi on of assets on which cost effec ve decisions can be taken.
Poten al Areas of Machine Failure:
Ÿ Noise
Ÿ Loose parts
Ÿ Low oil
Ÿ Misalignment
Ÿ Tight parts
Ÿ Defec ve parts
Ÿ Wear and tear of matching parts
Ÿ Bent cranksha
Ÿ Overloading
Benefits of predic ve maintenance strategy:
Ÿ Op mal maintenance schedule
Ÿ Reduced unplanned produc on down me
Ÿ Extended opera ng life of machines
Ÿ Reduced quality issues such as rejec on and rework
Ÿ Be er planning and inventory maintenance of op mal level, which helps in budge ng and
ensuring availability of spare parts
Condi on Monitoring Applica ons:
Ÿ Heavy industrial equipment with high KW ra ng
Ÿ Oil pumps
Ÿ Hydraulic systems
Ÿ Automo ve engines
Ÿ Truck and Off Highway Vehicles

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9.1.3 Data Gathering

Func onal Architecture:

On Premise ERP Servers

Ÿ PdM Alarms/No fica ons


Ÿ Automated Work orders (for
Data storage/Local Server/Cloud maintenance personnel)
Ÿ Stores and manages data
transmi ed from gateway
Analy cs Algorithms over storage will...
Ÿ Analyse data
Ÿ Generate reports/insights Visualiza on Dashboards/Reports

Rota ng Equipment
Ÿ CBM hardware with sensors
connected externally on to the
equipment Field
Ÿ Data is captured and processed
Technician
Actual
internally in the gateway before Accessibl form phone/Tablet
transmi ng to local server or cloud Maintenance

Fig.9.1 – Func onal architecture

Repor ng:

Asset Level View

Line Level View

Mobile App

Get detailed insights at the Plant, Line and Asset Level


Details of Faults, Loca ons, Status, Opera ons etc.

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Detailed Asset View Showcasing


Ÿ Alarms and Events
Ÿ Asset Current Status
Ÿ Health Index
Ÿ Cri cal Parameters like
¡ Current
¡ Temperature
¡ Vibra on
Desktop Applica on ¡ Pressure
Desktop Applica on Ÿ No. and Type of Faults
Ÿ Mean Time to Failure
Ÿ Total Running Hours
Ÿ Time to Next Maintenance
Mobile Applica on

Mobile Applica on Desktop Applica on

Detailed View Showcasing Cri cal Parameters like...


¡ Current
¡ Temperature
¡ Vibra on

Fig.9.2 – Dashboards

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9.1.4 Security

1. Device Level Security:


Devices are added into the network with unique and dedicated device IDs.
2. Firmware Level Security:
Data is encrypted from source (Hardware) using SSL.
3. Applica on Level Security:
Hierarchy level access to data for relevant stakeholders is provided using login and password
creden als.

9.1.5 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ Data acquisi on system
Ÿ Sensors
Ÿ Data storage/ Local server
Ÿ ERP servers

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10. Use Case - Logis cs
Unit 10.1 - Warehousing Opera ons
Unit 10.2 - Freight Transporta on
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Warehousing Opera ons' IoT applica on
2. Describe various features of 'Warehousing Opera ons'
3. Describe how the 'Freight Transporta on' works
4. State the importance and benefits of 'Freight Transporta on' IoT applica on
5. Describe various features of 'Freight Transporta on'
6. Describe how the 'Freight Transporta on' works

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UNIT 10.1: Use Case 1 – Warehouse Opera ons

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Warehousing Opera ons' IoT applica on
2. Describe various features of 'Warehousing Opera ons'
3. Describe how the 'Freight Transporta on' works

10.1.1 Scenario

The objec ve of any logis cs company is to deliver goods to the customer within the promised me and
in good condi on. The goods are collected from various loca ons and stored at warehouses. The goods
are dispatched to the consignee from warehouses located at strategic loca on. Warehousing plays a very
cri cal role in the en re supply chain, however, in today's economic scenario, warehousing serves as a
key source of compe ve advantage for logis cs provider who can deliver fast, cost-efficient and
increasingly flexible warehousing opera ons for their customers.
Warehousing opera on is not an easy task as it involves mul ple types and forms of goods. Every inch of
a warehouse should be op mally u lized to store, process, retrieve and deliver goods as fast as possible.
This is not possible without technological interven on. This requires a strong pla orm to perform all
these opera ons. Modern warehouses contain many 'dark assets' that can be connected and op mized
through IoT.

Fig.10.1 – IoT applica on in warehousing

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10.1.2 Design

Pallet or item level tagging is carried out using low-cost, miniscule iden fica on devices such as RFID.
This will pave the way for IoT driven smart inventory management.
Wireless readers capture data transmi ed from each pallet as it arrives through the inbound gateways.
The data will include informa on on the product such as volume and dimensions. This data is aggregated
and sent to Warehouse Management System (WMS) for processing.
This system reduces the effort of manual accoun ng and volume scanning of pallets. Cameras are
a ached to the gateways to detect damages by scanning pallets for imperfec ons.

Fig.10.2 – Overview of Warehouse Management System

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10.1.3 Data Gathering

Once the pallets are moved to the right loca on, tags transmit signals to the WMS to provide real- me
visibility into inventory levels thus avoiding out of stock situa on. In case of any misplacement of items,
sensors send alert to the warehouse manager to track the item's exact loca on for correc ve ac ons.
Sensors monitor the condi on of an item and alert the warehouse manager when the temperature or
humidity thresholds are to be compounded. This would allow warehouse staff to take correc ve ac on,
ensuring service quality and greater customer confidence.

Fig.10.3 – Warehouse Management System

For the outbound delivery, pallets are scanned through an outbound gateway, to ensure that right items,
in the right order for delivery are being sent. Stock levels are updated automa cally in the WMS for
accurate inventory control.
IoT can also be used for op mal asset u liza on. Machineries and vehicles are connected to the central
system thus enabling managers to track all the assets in real- me environment. Managers will get alerts
if an asset is being over u lized or underu lized so that, they can take correc ve ac ons.
Connected assets in a warehouse also enable predic ve maintenance for warehouse transport system.
Higher levels of worker health and safety can be achieved by using IoT. Sensors and actuators combined
with radar or cameras a ached to the forkli can allow them to communicate with other forkli s and
scan the environment for hidden objects that could cause collusion.
IoT can also be used to achieve other benefits in smart warehousing.

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10.1.4 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ RFID tags
Ÿ Wireless readers
Ÿ Gateways
Ÿ WMS (Warehouse Management System)
Ÿ Camera
Ÿ Sensor

Desktop Applica on

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Unit 10.2: Use Case 2 – Freight Transporta on

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Freight Transporta on' IoT applica on
2. Describe various features of 'Freight Transporta on'
3. Describe how the 'Freight Transporta on' works

10.2.1 Scenario

The major challenge for any Logis cs company is to track and monitor the freight or shipment cargo as
goods are dispatched through various modes of transport including road, sea and air. The logis cs
operator is also responsible to deliver the goods in good condi on. The logis cs company may get lot of
queries from the consignee regarding the delivery of their goods and current status.
With hundreds of thousands of oceans, air and road assets, freight transporta on presents a great
poten al for IoT network. Today it is already possible to track and monitor a container in freight and
shipment in a cargo.

Fig.10.4 – Modes of Transport

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An IoT applica on pla orm should have be er features for tracing and tracking which should be faster,
accurate, predic ve and secure.
The challenge faced by the logis cs industry is that the solu ons provided so far are proprietary and the
solu ons cannot communicate with each other. There is a need to create a new pla orm using exis ng
hardware and so ware capabili es. The solu on should provide end-to-end integrity of supply chains.

10.2.2 Design

Agheera, a real- me tracking solu on provider, has developed an open pla orm for connec ng various
telema cs and sensor hardware devices to consolidate data across different applica ons and modes.
The pla orm merges mul ple assets such as a connected swap body or truck into one easy-to-use portal
with worldwide accessibility, allowing logis cs providers and customers to track all assets and their
various devices at once.

Shipment ID: H5800243


Loca on: HHDE_7F240
Temperature: 15⁰c
Humidity: 53%
Light: Container opened For Customs

Engine Sensor: 9R003

! Status: serious malfunc on detected


Ac on: maintenance team alerted

Shipment ID: De235104


Loca on: HHDE002-45-8
Temperature: ok

Shipment ID: Cr55024


Loca on: HHDE 50331 Material damage likely
Speed: 70Km/H
ETA: 20:30 04/05/15
! Maintenance check scheduled ! Driver fa gue detected
pull over at next stop

Fig.10.5 – Tracking and tracing of goods

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Fig.10.6 – Agheera real- me tracking solu on

Through IoT, logis cs providers will gain clear visibility on the movement of goods — meter by meter and
second by second — as well as item-level condi on monitoring to ensure that goods arrive in me, at the
right place and intact.

10.2.3 Data Gathering

As we have seen, loca on and condi on monitoring through IoT will provide a new level of transport
visibility and security. Telema cs sensors in trucks and mul -sensor tags on items transmit data on the
loca on, condi on (whether any thresholds have been crossed) and if a package has been opened (to
detect possible the ).

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One Solu on from DHL is the Smart Sensensor,³⁸ which offers


full-condi on monitoring. This intelligent sensor can monitor
temperature and humidity, while also indica ng shock and
light events, to ensure complete intergrity during transporta on.

Fig.10.7 – Smart sensor

Through IoT, logis cs providers will gain clear visibility on the movement of goods — meter by meter and
second by second — as well as item-level condi on monitoring to ensure that goods arrive in me, at the
right place and intact.

RFID Radio Frequency Iden fica on

WMS Warehouse Management System

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11. Use Cases - Agriculture
Unit 11.1 – Calving
Unit 11.2 – Increasing Yield
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Calving' IoT applica on
2. Describe various features of 'Calving'
3. Describe how the 'Calving' works
4. State the importance and benefits of 'Increasing Yield' IoT applica on
5. Describe various features of 'Increasing Yield'
6. Describe how the 'Increasing Yield' works

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UNIT 11.1: Use Case 1 – Calving

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Calving' IoT applica on
2. Describe various features of 'Calving'
3. Describe how the 'Calving' works

11.1.1 Scenario

Calving is a stressful me for farmers. Almost one in 14 calves die during the birth. Un l now, the only way
to improve these odds was to keep watch over the expectant cow around the clock.
Animal welfare company Moocall has developed a remote monitoring solu on for pregnant cows. This
simple solu on is based on the principle that cows move their tails more o en the closer they get to
delivery.

Fig.11.1 – Expec ng cow

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11.1.2 Design and Data Gathering

The Moocall service senses tail mo on via a ba ery–powered monitor that is clipped to the cow's tail.
The device sends SMS alerts, when it detects enough mo on to show a cow is about to go into labour. As
a result, farmers can carry on with their daily work or get good nights sleep.
Moocall relies on Vodafone's managed connec vity to ensure coverage in even the most remote farming
areas and to help the company expand interna onally.
It is also planned to introduce similar devices for horses and have other ideas for new developments such
as flock protec on.

Fig.11.2 – Moocall device

11.1.3 Security

Device level security features are deployed in this solu on. SMS alerts are sent to the registered mobile
number.

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11.1.4 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ Ba ery powered Moocall device

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Unit 11.2: Use Case 2 – Increasing Yield

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Increasing Yield' IoT applica on
2. Describe various features of 'Increasing Yield'
3. Describe how the 'Increasing Yield' works

11.2.1 Scenario

Historically, crop farming has relied on farmers' exper se, built up over genera ons, to iden fy the best
way to work the land and iden fy the opportune moments to plant and harvest. But even the best
farmers can find their hard work undermined by poor weather. And the impact can be severe. For
instance, the combina on of weak farm gate prices and excep onal levels of rainfall resulted in some
Irish crops running at losses of 30% in 2016.
Precision farming and the deployment of IoT technology promises to make crop management more
predictable, introduce a new level of efficiency and drive up produc vity.

11.2.2 Design and Data Gathering

Soil sensors
Narrow Band IoT (NB-IoT) is a low-cost technology that's enabling farmers to measure soil condi ons
such as moisture content, pH levels and temperatures, providing them with be er insight into when to
plant crops. Even deep in the soil, the wireless sensors provide excellent connec vity and coverage and
the low power consump on means farmers don't need to change a ba ery for over 10 years.
The technology can also help when it comes to spraying. By monitoring condi ons such as temperature,
humidity and wind speed, farmers can get a be er understanding of the condi ons that allow pathogens
to take hold. Using IoT, the farmer knows when to spray and where.

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More precise use of pes cides and fer lizers can save money, deliver be er results and lower the impact
on the environment — which is a good news for everyone.

Fig.11.3 – IoT use in farming

11.2.3 Basic Equipment Required for Model

The basic requirements for this applica on is:


Ÿ Soil sensor

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12. Use Cases - Mining
Unit 12.1 - Safety in Mining
Unit 12.2 - Availability in Mining
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance and benefits of 'Safety in Mining' IoT applica on
2. Describe various features of 'Safety in Mining'
3. Describe how the 'Safety in Mining' works
4. State the importance and benefits of 'Availability in Mining' IoT applica on
5. Describe various features of 'Availability in Mining'
6. Describe how the 'Availability in Mining' works

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UNIT 12.1: Use Case 1 – Safety in Mining

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Safety in Mining' IoT applica on
2. Describe various features of 'Safety in Mining'
3. Describe how the 'Safety in Mining' works

12.1.1 Scenario

Mining is a unique industry where the miners have to adjust to the changing environment under the
ground. Miners have to work with materials and many factors that may not be controllable. Mining
ventures are extremely capital intensive. The infrastructure for mines in remote loca ons alone may cost
several hundred million dollars. High fixed costs represent a large component of a mining opera on's
total costs. Once the presence of an ore deposit has been established, several years of intensive effort is
required before the property is brought in stream and ore is produced on a con nuous basis.
Mining is broadly categorised as 'Underground Mining' and 'Surface Mining'. Each type will have its own
challenges and advantages.
Mining is a very complex ac vity and many variables are to be controlled to make this venture profitable
within the defined me frame. Mining operators are looking for technological interven ons that aid in
the opera on's efficiency and at the same me, the solu on should cover all aspects of mining.
As we are aware, mines are located at remote loca ons, hence some constraints are to be addressed to
implement IoT solu ons.
Some of the constraints are:
Ÿ Infrastructure setup
¡ Site is located at remote loca ons

¡ Most mine sites have no cellular access

¡ Significant effort is required to establish WiFi setup

Ÿ Networking constraints
¡ For the exis ng mines, IoT technology may add addi onal load on the bandwidth

¡ Reinstalla on or up-grada on of IT infrastructure is an expensive affair

Ÿ Cyber a acks
¡ The applica on might be vulnerable to cyber a acks

¡ Important data might be shared with compe tor organisa ons

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¡ A ackers may halt the opera on of the machine by entering the network
¡ Illegi mate update of machine so ware can result in malfunc on or can increase the
warranty costs of the manufacturer
Mining is a complex ac vity involving too many variables and to be profitable in this highly capital
intensive and complex industry requires some of the best technologies. At the same me, the mine
operators look at solu ons that support them in managing and also making money out of the mines. In
order to deliver end to end solu ons to support the mining value chain, one of the key requirement is the
connec vity of individual devices/systems and integra on of them to a single solu on. Use of network
infrastructure either local WiFi (with a tunnel to the Internet) or cellular or satellite can support this
need. This sets the base for IoT in mining.
Safety in Mining:
The IoT technology can be used for the safety of personnel and equipment. This will have a cascading
effect on the overall safety in the mining opera ons.
Safety in mining relates to one of the three major causes:
1. Environment
2. Equipment
3. Operator behavior
Let us try to understand how IoT helps in the above.
Safety in Mining – Environment:
The following are some of the frequent contributors that are important in mining safety.
Ÿ Hazardous terrains
Both in 'Surface' and 'Underground' mining, collapse of the working floor is a serious concern.
There is a possibility of toppling of the machine when the floor collapses. This will pose a serious
threat to the operator. In Underground mining, there is a possibility that the workers might get
trapped inside the tunnel when the roof collapses. There are notable such incidents in the
recorded history of opera on of mine sites.
Ÿ Dust
Dust is one of the most common hazard in mining. Dust not only affects the opera on of the
machines due to poor visibility but also poses a serious threat to the operator when he inhales
the dust.

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Ÿ Toxic gas leakage in underground tunnels


When working underground, people are suscep ble to accidental leakages of natural gas or
other hazardous gases that were produced by decomposi on of organic material buried
underground.
Ÿ Excessive noise
Blas ng of rocks produce excessive noise that might even cause the impairment of hearing.
Safety in Mining – Equipment:
When mul ple mining trucks operate in the same area, space can fill up pre y quickly. With such large
vehicles sharing a full road, they can damage or even topple other machines when accidentally collided
with. As an example, a loader or a shovel machine can damage the cab of the operator of the truck if not
properly posi oned.
A low-speed collision between small vehicles may result in a dent or two, a few hundred dollars in
damage and minor injuries to drivers or passengers. But a collision between large mining trucks—even at
low speed—has the poten al to seriously injure operators or others on site and can result in several
thousands of dollars in damage and lost produc vity due to down me.
While training, alert operators are an important first step in preven ng heavy-to-heavy collisions, object
detec on systems provide an addi onal measure of mine safety that can prevent mining collisions that
result in injury and costly repairs. A suite of sensors and cameras helps improve operator visibility,
allowing workers to confirm the safety of an area both visually and by the sensor before moving the
truck.
Because large mining trucks have extended stopping distances, it's important for operators to get a good
look at their surroundings before moving in any direc on. By automa cally ac va ng at low speeds or
stops, object detec on systems provide operators with a quick look at the area surrounding the truck,
which could be the difference between a produc ve cycle and a collision.
While object detec on systems can improve mine safety and avert heavy-to-heavy vehicle collisions,
they do not replace standard mining safety procedures.
Safety in Mining – Operator Behavior:
Fa gue and distrac on are an inevitable force of nature. Their consequences can be costly, even fatal. IoT
enables by intervening before it's too late with a fa gue monitoring system. A non-intrusive, in-cab
fa gue detec on technology that instantly alerts operators the moment fa gue or distrac on is
iden fied, is now available in the industry.

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12.1.2 Design

Safety in Mining – Environment:


One poten al solu on to mi gate this safety risk using IoT is Virtual Fencing demarca ng the restricted
areas keeping people and equipment away from hazardous zones. Installing the physical fences would be
both expensive and ineffec ve keeping in mind that the area of mining would expand and could be
subject to harsh environments.

Avoidance zone systems are designed to use


HAZARDOUS SITE CONDITIONS
g l o b a l p o s i o n i n g , w i r e l e s s ra d i o
Detect Proximity Awareness lets you set up:
technology and office so ware to map
mines and create electronic fences that
iden fy worksite boundaries. Machine
operators can view the avoidance zones on
their displays and can be warned when they
near the end of the safe zone. The mine SPEED LIMIT ZONES AVOIDANCE ZONES
controllers si ng in the remote office would
Crea ng avoidance zones by machine class allows you to limit
also be able to view the movement of the types of vehicles that are allowed to enter an area, such
machines and ensure that the safety of the as a drills-only zone in the blast area, reducing risks and the
chances for human error.
operator is not compromised.
Fig.12.1 – Hazardous site condi ons

How it Works?

Setup:
Ø Machines are fi ed with GPS and Radio Units
Ø All equipments are connected to central office
Ø The mine office creates maps for the mine site with GPS
coordinates and each machine has a copy of the updated mine
map marked with safe zones

In site:
Ø Machines con nuously monitor their GPS posi on
Ø When the machine nears the end of safe zone, the operator is
alerted using Audio/vision in the cab

In Office:
Ø The office receives the posi on of every machine periodically
Ø The Mine Controller will be alerted for taking appropriate ac on to
ensure safety incident when the machine moves out of safe zone

Fig.12.2 – Working mechanism for Safety - Environment

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Safety in Mining – Operator Behavior:


Fa gue detec on technology works by monitoring eye-closure dura on and head pose. If the system
detects a fa gue or distrac on event the operator is immediately alerted through configurable in-vehicle
seat vibra on and/or audio alarm. Alerts can also be sent to the mine office with a call for ac on. Mine
controller can arrange for shi change or schedule a break for that operator before an actual incident
occurs.

Fig.12.3 – Fa gue detec on technology

The fa gue or distrac on event data from the system can also be sent to a 24-hour monitoring centre,
which could be the mine office or a remote centre away from the mine site to classify and analyse the
data. Capture & Playback can be used to record incidents for playback, analysis and training
opportuni es.
This data can be used to provide customised repor ng with site-level recommenda ons. Cross-
referencing fa gue and distrac on events against available equipment data can provide sugges ons to
improve opera onal efficiency.
Fa gue management doesn't stop at the mine site. Behaviors of the site impact fa gue and distrac ons
on the job, so any fa gue management program must include at-home cultural awareness and training
elements that encourage healthy nutri on and good sleeping habits.
While the fa gue detec on system is onboard, the machine can collect data for analysis of incidents on
the site, to understand the sleeping habits and other ac vi es. Industry now uses ac vity tracker bands,
mobile devices and smart electric devices at home such as smart ligh ng system or smart TV. Analysis of
this data helps plan work schedule for the team of personnel including proper shi breaks, selec on of
day vs night shi , alterna ng of shi s, counselling, etc.

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12.1.3 Data Gathering

Data is the parent of any smart technology. Data gathering is the enabler of precise and predic ve
Technology by having its predic ve capability based on the actual status of the machine.
The below men oned sequence chart summarises the steps involved in Data Gathering and relaying.

On-Board - Data is collected by a Telema cs Device from the


sensor/Machine Microcontrollers using on-board systems.
Similarly any control command from the mine controller will be received
by the Telema cs Device which will be relayed to the necessary controller.
The protocol that is used on the machine is usually proprietary.
Ÿ CAN
Ÿ Bluetooth
Ÿ Fiber op c

Relaying the informa on to Mine Server - The Telema cs device


will communicate the data between the machine and the central
server using Wireless Technologies.

The Central server processes the informa on, relays to


individual processing units in the mine control room, to be
presented to the controller.

Fig.12.4 –Safety in Mining – Design

A wide range of Communica on protocols can be used, some being proprietary to the mine site to assist
in the relaying of data.
Message Queue Telemetry Transport (MQTT), Advanced Message Queuing Protocol (AMQP),
Simple/Streaming Text Oriented Messaging Protocol (STOMP) are some of the popular protocols that are
used in telema cs.
All the protocols should be reliable, light-weight (on bandwidth) and should support security.

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12.1.4 Security

Connec vity opens the door for hacking. Even the most protected system is vulnerable to a ack and
hence mul ple levels of security must be provided to make the network safe.
The simplest form of a ack is the of the data. The data of the mine site is sensi ve and private to the
mine owner. Access to the mine informa on can be exploited by the compe tors and social elements.
Any manipula on of Safety Technology must not result in a safety incident. Hence, it is mandated that as
long as human is inside the machine, the technology must only be able to alert the person and must be
capable of being overridden.
In mine sites, where complete or semi-autonomy is implemented, the network has to be given intense
protec on. Any hacking in the network can make the en re mine site vulnerable to remote control by an
uniden fied person.
Some common protec on methods are given below,
Ÿ Most of the mine networks operate behind the Firewall. The Firewall needs to be updated
frequently and be monitored for any hacking a empts
Ÿ Provide provision for private networks, disconnected to the Internet, when sensi ve data or
control informa on is handled
Ÿ Use Proprietary protocol with secure handshakes to relay informa on in the mine site

12.1.5 Basic Equipment Required for Model

The basic requirements for this applica on are:


Ÿ Infrastructure for connec vity – Wifi Towers which cover mine site
Ÿ Intelligent Central Control Unit
Ÿ Machines equipped with Telemetry and required sensors
Ÿ Special devices (or smartphones) for the Machine Users with IoT ability to predict fa gue

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Unit 12.2: Use Case 2 – Availability in Mining

Unit Objec ves

At the end of this unit, you will be able to:


1. State the importance and benefits of 'Availability in Mining' IoT applica on
2. Describe various features of 'Availability in Mining'
3. Describe how the 'Availability in Mining' works

12.2.1 Scenario

Reducing the down me:


With larger machines, comes more moving parts, hence, more wear and tear of mechanical parts,
requiring well planned maintenance of the machines. Availability in mining refers to the percentage of
me the machine was available for actual produc on opera ons. It plays an important role since
down me can cost heavily in the capital intensive mining industry. Achieving high levels of physical
availability of the machine requires planned maintenance, capturing of failures even before it occurs
during produc on.
When such a failure occurs, the me required to bring back the machine to opera on also plays a cri cal
factor in availability of the machines. Remote loca ons of mines, safety of technicians, availability and
me taken for spare parts to reach, all play a role in bringing back the machine to produc on.
When you know what's going on inside your equipment, you're one step ahead in the cost-control ba le.
You can monitor cri cal machine parameters, analyse trends and get real- me alerts when issues arise,
so you can take ac on to fix problems before they turn into major repairs. You can also track what
equipment is due for service, make sure maintenance gets done on me and even monitor how a
machine performs when it's back on the job. This helps to run machines as efficiently as possible for as
long as possible, while keeping unplanned down me to a minimum.
As surface miners begin to put new machine guidance and produc on monitoring technologies to work
on their job sites, they're discovering a number of addi onal benefits related to equipment health and
maintenance—improvements that are increasing machine and component life and reducing costly
unscheduled down me.
New technologies also promote repair-before-failure strategies and give operators—who know their
equipment best—more tools to iden fy and diagnose possible problems proac vely. That's because in-
cab displays not only provide real- me produc on and guidance data, but also deliver up-to-the-minute
machine health informa on.

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Consumables tracking are another feature that comes as a standard with many machine guidance and
produc on monitoring tools. It lets mine managers monitor the use and condi on of commonly used
components to ensure they're replaced exactly when needed-before failure, but not before the end of
their useful life.
Increasing the component life cycle through haul road maintenance:
Haul road condi ons dictate speed, fuel burn, re life, safety and annual tonnage moved. Clean,
smooth surfaces extend re life for mine haul trucks and reduce the chance of machine damage or
accidents due to road hazards. Smooth, constant grades minimise transmission shi s, enable drivers to
maintain higher average speeds, allow more constant braking effort on returns and reduce spillage and
fuel consump on.
On the other hand, poorly designed or maintained mining haul roads can lead to drama cally increased
costs caused by lost produc on me, shortened re life, greater fuel usage, excessive component wear,
major equipment repair and replacement and safety issues. Even excep onally designed haul roads
require me and effort to keep in top shape. Regular maintenance helps eliminate the small decreases in
speed—and increases in cycle mes—that nega vely affect hourly and annual produc on.
Fortunately, several new tools and technologies are available to help mine opera on managers enhance
haul road construc on and maintenance prac ces, with the ul mate goal of increasing re and mining
truck life, improving fuel economy and reducing cost per ton.

12.2.2 Design

Reducing the Down me:


On mining drills, for example, sensors and logic systems monitor the bit, stabilizer and steels—recording
revolu ons, me in use and distance travelled over the life of the product. Knowing exactly how long and
in what condi ons these components have been opera ng allows maintenance managers to make
informed decisions about replacement, which helps keep down me and costs to a minimum.
All this data is transferred to central data analy cs storage from different mine sites around the world.
Running advanced analy c logics, combined with insights from service inspec on and oil sample
inspec ons – Condi on Monitoring Experts can arrive at ac onable recommenda ons that could save a
component, system or even a machine from failure well ahead.

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For example, the coolant in any engine performs the job of removing the heat of the engine block, a
failure in this component or system can result in engine failure. In order to predict this, we could monitor
the coolant temperature before it enters the engine block and a er it exits the engine block. The
difference should be posi ve high (Outlet minus inlet). However, any impuri es in the coolant can reduce
the cooling func on resul ng in lower outlet temperature. This can be iden fied well ahead by
monitoring the trend of outlet minus inlet coolant temperature and se ng alerts for the threshold.

Setup
Ÿ Temperature sensors for the coolant connected to embedded
control unit, that can transfer data back to site office

Sensing
Ÿ On-Board system periodically reads the values of the sensors
and relays the informa on to the Off-Board Intelligent Analyser
System
Ÿ The Analyser system detects and ascertains any abnormality in
the measured values
Ÿ The system also predicts the tenta ve failure me and no fies
the mine controller

Ÿ The mine controller modifies the schedule to move the


faulty machine to service zone
Ÿ Mine controller consults with mine equipment
technicians and solves the issue

Fig.12.5 – Design steps

Increasing the component life cycle through haul road maintenance:


Onboard machine systems, for example, can assess road condi ons and quan fy the severity of the haul,
with sensors measuring factors such as component loading, impact shock, strut pressure data,
transmission shi frequency, gear on grade, brake/retarder use and more. Many of these systems can
then transmit real- me data to operators and maintenance personnel about problem areas to avoid and
correct. On-Board Machine Systems can now directly talk over the internet to the data centres sending
this informa on for analy cs.

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In addi on, so ware packages can simulate mining truck produc vity and es mated cost per ton on
various haul road profiles. Mines can use these tools to determine if mining trucks are achieving
predicted speed on grades, as well as cycling and wai ng at the loader in predicted me ranges. With this
data, opera on managers can inves gate possible causes behind delays—Are rough or slippery roads or
ght corners forcing operators to slow down? Is rolling resistance higher than planned? Is visibility poor
due to dust or obscured views?—and make the necessary adjustments. This so ware can run on the
cloud on heaps of data from mul ple mine sites.
The tracking capabili es now built into many mining machines also can assist with haul road
maintenance for mines. These systems generate reports showing where health and opera onal alerts
occur, which can help drivers and opera on managers spot site problems—including subop mal haul
road condi ons—that affect mining equipment availability, health and asset life.
It is important to note that certain mining equipment such as Trucks requires paved roads. If the truck
with tons of payload is frequently made to pass over a bumpy terrain, the stress on the suspension
systems is higher than it is designed for which may result in earlier failure. Skidding of a machine in the
narrow road of the mine site will severely impair the mine site ll the machine is removed. The below
example illustrates how lane maintenance can be done.

Setup
Ÿ Machine with GPS and Suspension Stress sensor
Ÿ Connected via IoT to the mine control room

Sensing
Ÿ On-Board system periodically reads the values of the sensors
and relays the informa on to the Off-Board Intelligent Analyser
System
Ÿ The Analyser system detects the abnormality in the terrain such
as bumps and ascertains the same by comparing the values from
different machines that move over the terrain
Ÿ The system no fies the mine controller

Ac on
Ÿ The mine controller modifies the schedule to cordon
the area requiring pavement of road
Ÿ Mine controller instructs pavement machines such as
Motor grader to reach the area and pave the roads

Fig.12.6 – Design steps

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Such preven ve maintenance saves a lot of repair cost for the Mine Owner and improves the
produc vity of the mine site.

12.2.3 Data Gathering

Data is the parent of any smart technology. Data gathering is the enabler of precise and predic ve
Technology by having its predic ve capability based on the actual status of the machine.
The below sequence chart summarises the steps involved in Data Gathering and relaying from the mines
to the mine site.

On-Board - Data is collected by a Telema cs Device from the


sensor/machine microcontrollers using on-board systems.
Similarly any control command from the mine controller will be received
by the Telema cs Device which will be relayed to the necessary controller.
The protocol that is used on the machine is usually proprietary.
Ÿ CAN
Ÿ Bluetooth
Ÿ Fiber op c

Relaying the informa on to Mine Server - The Telema cs device


will communicate the data between the machine and the central
server using Wireless Technologies.

The Central server processes the informa on, relays to


individual processing units in the mine control room to be
presented to the controller.

Fig.12.7 – Data gathering architecture

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A wide range of Communica on protocols can be used, some being proprietary to the mine site to assist
in the relaying of data.
Message Queue Telemetry Transport (MQTT), Advanced Message Queuing Protocol (AMQP),
Simple/Streaming Text Oriented Messaging Protocol (STOMP) are some of the popular protocols that are
used in telema cs.
All the protocols should be reliable, light-weight (on bandwidth) and should support security.

12.2.4 Security

Connec vity opens the door for hacking. Even the most protected system is vulnerable to a ack and
hence mul ple levels of security must be provided to make the network safe.
The simplest form of a ack is the of the data. The data of the mine site is sensi ve and private to the
mine owner. Access to the mine informa on can be exploited by the compe tors and an -social
elements.
In mine sites, where complete or semi-autonomy is implemented, the network has to be given intense
protec on. Any hacking in the network can make the en re mine site vulnerable to safety issues
inten onally induced by malicious elements.
Some common protec on methods are given below,
Ÿ Most of the mine networks operate behind the Firewall. The Firewall needs to be updated
frequently and be monitored for any hacking a empts
Ÿ Provide provision for private networks, disconnected to the Internet, when sensi ve data or
control informa on is handled
Ÿ Use Proprietary protocol with secure handshakes to relay informa on in the mine site

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12.2.5 Basic Equipment Required For this Model

The following are the requirement for this solu on.


Ÿ Temperature sensors for monitoring
Ÿ Any microcontroller unit
Ÿ Buzzer or Lamp to alert
Microcontroller unit can sense the temperature output and trend the data at 1 point per 1 hour sampling
rate if the average trend plot of such temperature channel exceeds the threshold, record is created &
alarm unit is triggered. This can be experimented on simple pump systems in the campus.

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13. Professional Skills
Unit 13.1 – Office, e-mail and telephone e que e
Unit 13.2 – Goal se ng and me management
Participant Handbook

Key Learning Outcomes

At the end of this module, you will be able to:


1. State the importance of following office e que es
2. Apply e-mail and office e que es in your day to day ac vi es
3. Effec vely follow telephone e que es
4. Explain the importance of goal se ng in your life
5. Perform task analysis and use me effec vely

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Unit 13.1: Professional Skills – Part 1

Unit Objec ves

At the end of this unit, you will be able to:


1. Dress up yourself in formal a re
2. Explain cubicle e que e
3. Behave properly at common places
4. State e-mail e que e
5. Explain telephone e que e

13.1.1 Office E que e

A re:
To achieve excellence in the career, professional skills also play a major role along with technical skills. In
this session, we will learn few professional skills.
Let us see what a re suits for office
Ÿ Business formals are suitable for office.
Ÿ Men can wear plain/ striped full sleeve or half sleeved shirts, formal trouser and formal shoes
(black/brown).
Ÿ Women can wear Saree/Salwar kameez, plain/striped shirts/co on tops, formal trouser/skirts
shoe/slip-ons.

Fig. 8.1 - Formal a re

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Avoid:

Men Women

Ÿ No flashy cuff links, rings or gold chains. Ÿ One pair of conserva ve, non-dangling
Wedding ring is fine. earring and one ring per hand.
Ÿ No visible body piercing. Ÿ No dangling or distrac ng bracelets. No visible
body piercing beyond earrings.

Cubicle e que e:
Ÿ Always use your 'library voice' when speaking in a cubicle environment.
Ÿ When someone adjacent to you asks someone a ques on for which you know the correct
answer, resist the urge to volunteer this informa on. Doing so will confirm that you were eves
dropping.
Ÿ Do not use sign language or whisper to a ract the a en on of someone who is dialing, checking
mail or involved in another ac vity.
Ÿ When you decorate your cubicle, remember that others view your cubicle throughout the day. Be
careful not to offend others on moral, religious, cultural or sexual grounds.
Common place behavior:
Rest rooms:
Ÿ Flush the toilet.
Ÿ Throw your paper towels in the trash.
Ÿ Wash your hands every single me.

Cafeteria and Break out area:


Ÿ Please do not “break line” while in a queue to collect food.
Ÿ Respect the rights of others; do not be loud or noisy.
Ÿ Do not move from one table to another while/a er ea ng.
Ÿ All li er is to be thrown in the trash. It should never be le on the tables or on the floor.
Ÿ If you spill something, get help from a custodian to clean it up.
Ÿ Use good table manners at all mes.

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Elevator:
Ÿ Do not a empt to board elevator before previous passengers have disembarked.
Ÿ Take the stairs if travelling between one or two floors, barring personal injury.
Ÿ Hold the door for others running to catch the carriage. However, do not hold the door indefinitely
and delay travel for other passengers.
Ÿ Give others their personal space in an uncrowded elevator.
Ÿ Do not call out the floor to the person standing nearest the bu ons as if that person is the li
operator.
Ÿ Do not carry on personal conversa ons, be it person-to-person or via cellular phone.

13.1.2 E-mail E que e

e-mail:
In the office, you may be required to communicate with others using e-mail. There are certain rules to be
followed, when wri ng the e-mails.

To: The addresses in the “To” are the people who have to act on the e-mail

Cc: The addresses in the “Cc” are for people who need to be kept informed

Bcc: The addresses in “Bcc” receive a copy of the informa on. Addresses in “To”
and “Cc” do not know of inclusion of addresses in “Bcc”

Reply All Do not automa cally “Reply to all”. Take one last look at your distribu on
list—is this e-mail necessary for all recipients?

Subject: All messages should have clear and specific “Subject Lines” that
Ÿ describe the message content
Ÿ specify if there are any ac ons required and due dates
Ÿ men on clearly who the message is for

Saluta on Americans: Hi,


Europeans: Hello,
Asians: Dear

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Body In the first 1–3 lines of your email, specify what this e-mail is about.
Ÿ Does it include ac on required?
Ÿ Does it require a reply by a certain date?
Ÿ What informa on is contained that the reader will
find necessary for their job?

Signature End the e-mail with either 'Thanks and Regards' or just 'Regards'

Capital le ers Do not use capital le ers. It indicates shou ng

Dos and Don'ts

Dos Don'ts

Ÿ Be concise and precise. Ÿ Do not use too much of punctua on.


Ÿ Paragraph and line spacing should be Ÿ Do not use excessive forma ng.
legi mate and visually appealing.

13.1.3 Telephone E que e

Telephone e que e:
Answering incoming call:
Ÿ Answer incoming calls within 2ⁿ or 3 ring.
Ÿ Always iden fy yourself. (To avoid the embarrassment of interrup ng and informing the caller
that he is speaking to the wrong person).

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Making the call:


Ÿ Keep a pen and paper handy.
Ÿ Introduce yourself and ask for the person you want to speak to.
Ÿ State the purpose of the call and ask if it's a good me to speak.
Ÿ Seek a good me to call back if the speaker is busy else con nue.

Answering on your friend’s behalf:


Ÿ Ask if the caller would want you to take a message for him.
Ÿ Ask for his name, the organisa on he represents and his phone number if the caller wants a call
back.
Ÿ Ask if you should ask your colleague to return the call.

Transferring the call:


Ÿ Inform the caller to whom his call is being transferred and the number.
Ÿ Stay on line ll un l someone answers.
Ÿ If there is no response from the other end, inform the caller about it and request him/her to call
back directly to the given number.
Pu ng on hold:
Ÿ Inform the caller that he/she would be put on hold.
Ÿ Get back to the caller every 45 seconds to apologise for being put on hold.
Ÿ Once back to the call thank the caller for his pa ence.

Closing the call:


Ÿ Close with posi ve note.
Ÿ Summarise.
Ÿ Reiterate the ac on needed (Re-emphasise the responsibili es).

How to make a call transfer:


Ÿ First, explain the reason and then express your request. People are much more coopera ve and
pa ent when they know the reason why.
Taking messages:
Ÿ Get the full name, if you do not understand it clearly or it isn't a familiar name ask the caller to
spell it out for you.
Ÿ Ask for the name of the organisa on.
Ÿ Get the full telephone number including the area code if it is long.
Ÿ Ask if there is any informa on you would like to leave.
Ÿ Say “Thank you “and tell the caller that you will give the person the message.
Ÿ Being a courteous speaker.

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¡ “May I help you please?”


¡ “I am sorry to keep you wai ng”
¡ “Thank you for calling”
¡ “It was nice talking to you”
¡ “Is there anything else that I can do for you?” The caller's name (be sure to pronounce it
correctly )
Use of Mobile phones in office:
Ÿ A ending personal calls in office: Do not stay at your desk while a ending personal call.
Cell phones in mee ngs:
Ÿ Do not bring your cell phone to mee ngs. It is a clear signal that your mind is not 100 percent on
your job.
Ÿ Remember there was a me before we had cell phones.

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Unit 13.2: Professional Skills –Part 2

Unit Objec ves

At the end of this unit, you will be able to:


1. Explain the rules for goal se ng
2. State the importance of SWOT analysis
3. Carryout self swot analysis
4. Manage me effec vely

13.2.1 Goal se ng
Rules for goal se ng:
Ÿ Set one goal at a me: Choose one major goal and stay focused.
Ÿ Intensify your desire to achieve your goal: The single most important reason why people do not
achieve their goal is because they do not have a strong enough desire.
Ÿ Develop a strong belief that you can achieve your goal: If you do not believe that you can reach
your goal, you would not.
Ÿ Set a dead line for your goal: Dead line will move you to ac on .
Ÿ Write your goal down—your goal is no longer just a thought.
Ÿ When you put pen to paper you turn your thoughts into something tangible. You can actually see
it and touch it.
Ÿ Break your goal down to mini goals: It's the planning of the route to your goal.
Ÿ Define your tasks for every mini goal.
Self SWOT:
Strengths:
Ÿ What advantages do you have that others don't have (for example, skills, cer fica ons,
educa on or connec ons)?
Ÿ What do you do be er than anyone else?
Ÿ What personal resources can you access?
Ÿ What do other people (and your boss, in par cular) see as your strengths?
Ÿ Which of your achievements are you most proud of?
Ÿ What values do you believe in that others fail to exhibit?
Ÿ Are you part of a network that no one else is involved in? If so, what connec ons do you have with
influen al people?

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Weakness:
Ÿ What tasks do you usually avoid because you don't feel confident doing them?
Ÿ What will the people around you see as your weaknesses?
Ÿ Are you completely confident in your educa on and skills training? If not, where are you weakest?
Ÿ What are your nega ve habits (for example, are you o en late, are you disorganised, do you have
a short temper or are you poor at handling stress?
Ÿ Do you have personality traits that hold you back in your field? For instance, if you are
apprehensive talking to outsiders, sharing thoughts in mee ngs etc.
Opportuni es:
Ÿ What new technology can help you? Or can you get help from others or from people via the
Internet?
Ÿ Do you have a network of strategic contacts to help you or offer good advice?
Ÿ What trends do you see in your chosen field and how can you take advantage of them?

Threats:
Ÿ What obstacles do you currently face in life?
Ÿ Are any of your colleagues compe ng with you?
Ÿ Does changing scenarios (business, economic) threaten your prospects?
Ÿ Could any of your weaknesses lead to threats?

13.2.2 Time management

Priori sa on technique:

Fig. 8.2 - Time management

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Quadrant 1 represents things which are both urgent and important. We've called this "firefigh ng". The
ac vi es need to be dealt with immediately, and they're important. Give examples like crisis in the
family, accidents that require immediate a en on.
Quadrant 2 represents things which are important, but not urgent. We've termed this one "Quality
Time". Although the ac vi es here are important and contribute to achieving the goals and
priori es—they don't have to be done right now. As a result, they can be scheduled in when you can give
quality thought to them. A good example would be the prepara on of an important talk or preparing for
an examina on. Prayer me, family me and personal relaxa on/recrea on are also part of Quadrant 2.
Ac vi es that are planned in Quadrant 2 and not acted upon would move to Quadrant 1. This leads to
stress and issues in priori sa on.
Quadrant 3 represents things which are distrac ons. They must be dealt with right now, but frankly, are
not important. For example, when you answer an unwanted phone call—you've had to interrupt
whatever you were doing to answer it.
The final quadrant, Quadrant 4, consists of things which are neither urgent nor important. Some
mee ngs could fall into this category—they've been scheduled in advance, but if they achieve nothing,
or you don't contribute to them, then they have simply wasted me. Other examples could include
driving me and low quality relaxa on or family me. Using the tool, consciously strive to maximise
Quadrant 2 me. Allocate me in your diary to carry out these tasks when you are at your best. Doing so
can reduce the amount of me taken up by firefigh ng quadrant 1 ac vi es, since many quadrant 1
ac vi es could have been quadrant 2 if they had been done earlier. You can also seek to reduce me
spent in Quadrant 3 by improving your systems and processes for dealing with distrac ons and you can
seek to eliminate as much as possible of quadrant 4 ac vi es, by either not spending me on these
things or changing the nature of them to make them more produc ve. For example, driving can be
quadrant 4 if the me is unproduc ve, but there are a number of ways of making this me more
produc ve by listening to a praise tape, praying, learning new skills with a tape course, planning and so
on.
Tips for 'Time' management:
Ÿ Have a vision
Ÿ Plan ahead
Ÿ Priori se your tasks
Ÿ Be organised
Ÿ Avoid overload
Ÿ Be able to be flexible

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14. Employability &
Entrepreneurship Skills
Unit 14.1 – Personal Strengths & Value Systems

Unit 14.2 – Digital Literacy: A Recap

Unit 14.3 – Money Matters

Unit 14.4 – Preparing for Employment & Self Employment

Unit 14.5 – Understanding Entrepreneurship

Unit 14.6 – Preparing to be an Entrepreneur


Participant Handbook

Key Learning Outcomes


At the end of this unit, you will be able to:
1. Explain the meaning of health
2. List common health issues
3. Discuss tips to prevent common health issues
4. Explain the meaning of hygiene
5. Discuss the purpose of Swacch Bharat Abhiyan
6. Explain the meaning of habit
7. Discuss ways to set up a safe work environment
8. Discuss critical safety habits to be followed by employees
9. Explain the importance of self-analysis
10. Discuss motivation with the help of Maslow’s Hierarchy of Needs
11. Discuss the meaning of achievement motivation
12. List the characteristics of entrepreneurs with achievement motivation
13. List the different factors that motivate you
14. Discuss the role of attitude in self-analysis
15. Discuss how to maintain a positive attitude
16. List your strengths and weaknesses
17. Discuss the qualities of honest people
18. Describe the importance of honesty in entrepreneurs
19. Discuss the elements of a strong work ethic
20. Discuss how to foster a good work ethic
21. List the characteristics of highly creative people
22. List the characteristics of highly innovative people
23. Discuss the benefits of time management
24. List the traits of effective time managers
25. Describe effective time management technique
26. Discuss the importance of anger management
27. Describe anger management strategies
28. Discuss tips for anger management
29. Discuss the causes of stress
30. Discuss the symptoms of stress
31. Discuss tips for stress management
32. Identify the basic parts of a computer
33. Identify the basic parts of a keyboard
34. Recall basic computer terminology
35. Recall the functions of basic computer keys

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36. Discuss the main applications of MS Office


37. Discuss the benefits of Microsoft Outlook
38. Discuss the different types of e-commerce
39. List the benefits of e-commerce for retailers and customers
40. Discuss how the Digital India campaign will help boost e-commerce in India
41. Describe how you will sell a product or service on an e-commerce platform
42. Discuss the importance of saving money
43. Discuss the benefits of saving money
44. Discuss the main types of bank accounts
45. Describe the process of opening a bank account
46. Differentiate between fixed and variable costs
47. Describe the main types of investment options
48. Describe the different types of insurance products
49. Describe the different types of taxes
50. Discuss the uses of online banking
51. Discuss the main types of electronic funds transfers
52. Discuss the steps to prepare for an interview
53. Discuss the steps to create an effective Resume
54. Discuss the most frequently asked interview questions
55. Discuss how to answer the most frequently asked interview questions
56. Discuss basic workplace terminology
57. Discuss the concept of entrepreneurship
58. Discuss the importance of entrepreneurship
59. Describe the characteristics of an entrepreneur
60. Describe the different types of enterprises
61. List the qualities of an effective leader
62. Discuss the benefits of effective leadership
63. List the traits of an effective team
64. Discuss the importance of listening effectively
65. Discuss how to listen effectively
66. Discuss the importance of speaking effectively
67. Discuss how to speak effectively
68. Discuss how to solve problems
69. List important problem solving traits
70. Discuss ways to assess problem solving skills
71. Discuss the importance of negotiation

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72. Discuss how to negotiate


73. Discuss how to identify new business opportunities
74. Discuss how to identify business opportunities within your business
75. Explain the meaning of entrepreneur
76. Describe the different types of entrepreneurs
77. List the characteristics of entrepreneurs
78. Recall entrepreneur success stories
79. Discuss the entrepreneurial process
80. Describe the entrepreneurship ecosystem
81. Discuss the purpose of the Make in India campaign
82. Discuss key schemes to promote entrepreneurs
83. Discuss the relationship between entrepreneurship and risk appetite
84. Discuss the relationship between entrepreneurship and resilience
85. Describe the characteristics of a resilient entrepreneur
86. Discuss how to deal with failure
87. Discuss how market research is carried out
88. Describe the 4 Ps of marketing
89. Discuss the importance of idea generation
90. Recall basic business terminology
91. Discuss the need for CRM
92. Discuss the benefits of CRM
93. Discuss the need for networking
94. Discuss the benefits of networking
95. Discuss the importance of setting goals
96. Differentiate between short-term, medium-term and long-term goals
97. Discuss how to write a business plan
98. Explain the financial planning process
99. Discuss ways to manage your risk
100. Describe the procedure and formalities for applying for bank finance
101. Discuss how to manage your own enterprise
102. List important questions that every entrepreneur should ask before starting an enterprise

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UNIT 14.1: Personal Strengths & Value Systems

Unit Objectives
At the end of this unit, you will be able to:

1. Explain the meaning of health


2. List common health issues
3. Discuss tips to prevent common health issues
4. Explain the meaning of hygiene
5. Discuss the purpose of Swacch Bharat Abhiyan
6. Explain the meaning of habit
7. Discuss ways to set up a safe work environment
8. Discuss critical safety habits to be followed by employees
9. Explain the importance of self-analysis
10. Discuss motivation with the help of Maslow’s Hierarchy of Needs
11. Discuss the meaning of achievement motivation
12. List the characteristics of entrepreneurs with achievement motivation
13. List the different factors that motivate you
14. Discuss the role of attitude in self-analysis
15. Discuss how to maintain a positive attitude
16. List your strengths and weaknesses
17. Discuss the qualities of honest people
18. Describe the importance of honesty in entrepreneurs
19. Discuss the elements of a strong work ethic
20. Discuss how to foster a good work ethic
21. List the characteristics of highly creative people
22. List the characteristics of highly innovative people
23. Discuss the benefits of time management
24. List the traits of effective time managers
25. Describe effective time management technique
26. Discuss the importance of anger management
27. Describe anger management strategies
28. Discuss tips for anger management
29. Discuss the causes of stress
30. Discuss the symptoms of stress
31. Discuss tips for stress management

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14.1.1 Health, Habits, Hygiene: What is Health?


As per the World Health Organization (WHO), health is a “State of complete physical, mental,
and social well-being, and not merely the absence of disease or infirmity.” This means being
healthy does not simply mean not being unhealthy – it also means you need to be at peace
emotionally, and feel fit physically. For example, you cannot say you are healthy simply because
you do not have any physical ailments like a cold or cough. You also need to think about whether
you are feeling calm, relaxed and happy.
Common Health Issues
Some common health issues are:
• Allergies
• Asthma
• Skin Disorders
• Depression and Anxiety
• Diabetes
• Cough, Cold, Sore Throat
• Difficulty Sleeping
• Obesity

Tips to Prevent Health Issues


Taking measures to prevent ill health is always better than curing a disease or sickness. You can stay
healthy by:
• Eating healthy foods like fruits, vegetables and nuts
• Cutting back on unhealthy and sugary foods
• Drinking enough water everyday
• Not smoking or drinking alcohol
• Exercising for at least 30 minutes a day, 4-5 times a week
• Taking vaccinations when required
• Practicing yoga exercises and meditation
How many of these health standards do you follow? Tick the ones that apply to you.
1. Get minimum 7-8 hours of sleep every night.
2. Avoid checking email first thing in the morning and right before you go to bed at night.
3. Don’t skip meals – eat regular meals at correct meal times.
4. Read a little bit every single day.
5. Eat more home cooked food than junk food.
6. Stand more than you sit.
7. Drink a glass of water first thing in the morning and have at least 8 glasses of water
through the day.
8. Go to the doctor and dentist for regular checkups.
9. Exercise for 30 minutes at least 5 days a week.
10. Avoid consuming lots of aerated beverages.

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What is Hygiene ?
As per the World Health Organization (WHO), “Hygiene refers to conditions and practices that
help to maintain health and prevent the spread of diseases.” In other words, hygiene means
ensuring that you do whatever is required to keep your surroundings clean, so that you reduce
the chances of spreading germs and diseases.
For instance, think about the kitchen in your home. Good hygiene means ensuring that the
kitchen is always spick and span, the food is put away, dishes are washed and dustbins are not
overflowing with garbage. Doing all this will reduce the chances of attracting pests like rats or
cockroaches, and prevent the growth of fungus and other bacteria, which could spread disease.
How many of these health standards do you follow? Tick the ones that apply to you.
1. Have a bath or shower every day with soap – and wash your hair with shampoo 2-3
times a week.
2. Wear a fresh pair of clean undergarments every day.
3. Brush your teeth in the morning and before going to bed.
4. Cut your fingernails and toenails regularly.
5. Wash your hands with soap after going to the toilet.
6. Use an anti-perspirant deodorant on your underarms if you sweat a lot.
7. Wash your hands with soap before cooking or eating.
8. Stay home when you are sick, so other people don’t catch what you have.
9. Wash dirty clothes with laundry soap before wearing them again.
10. Cover your nose with a tissue/your hand when coughing or sneezing.
See how healthy and hygienic you are, by giving yourself 1 point for every ticked statement!
Then take a look at what your score means.
Your Score
0-7/20: You need to work a lot harder to stay fit and fine! Make it a point to practice good
habits daily and see how much better you feel!
7-14/20: Not bad, but there is scope for improvement! Try and add a few more good habits to
your daily routine.
14-20/20: Great job! Keep up the good work! Your body and mind thank you!

Swachh Bharat Abhiyan


We have already discussed the importance of following good hygiene and health practices for
ourselves. But, it is not enough for us to be healthy and hygienic. We must also extend this
standard to our homes, our immediate surroundings and to our country as a whole.
The ‘Swachh Bharat Abhiyan’ (Clean India Mission) launched by Prime Minister Shri Narendra Modi on
2nd October 2014, believes in doing exactly this. The aim of this mission is to clean the streets and roads
of India and raise the overall level of cleanliness. Currently this mission covers
4,041 cities and towns across the country. Millions of our people have taken the pledge for a
clean India. You should take the pledge too, and do everything possible to keep our country clean !

What are Habits ?


A habit is a behaviour that is repeated frequently. All of us have good habits and bad habits.
Keep in mind the phrase by John Dryden: “We first make our habits, and then our habits make

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us.” This is why it is so important that you make good habits a way of life, and consciously avoid
practicing bad habits.
Some good habits that you should make part of your daily routine are:
• Always having a positive attitude • Smiling! Make it a habit to smile as often as
• Making exercise a part of your daily routine possible

• Reading motivational and inspirational stories • Making time for family and friends
• Going to bed early and waking up early
Some bad habits that you should quit immediately are:
• Skipping breakfast • Smoking, drinking alcohol and doing drugs
• Snacking frequently even when you are not • Spending more money than you can afford
hungry • Worrying about unimportant issues
• Eating too much fattening and sugary food • Staying up late and waking up late

Tips
• Following healthy and hygienic practices every day will make you feel good mentally andphysically.
• Hygiene is two-thirds of health – so good hygiene will help you stay strong and healthy!

14.1.2: Safety: Tips to Design a Safe Workplace


Every employer is obligated to ensure that his workplace follows the highest possible safety
protocol. When setting up a business, owners must make it a point to:
• Use ergonomically designed furniture and equipment to avoid stooping and twisting
• Provide mechanical aids to avoid lifting or carrying heavy objects
• Have protective equipment on hand for hazardous jobs
• Designate emergency exits and ensure they are easily accessible
• Set down health codes and ensure they are implemented
• Follow the practice of regular safety inspections in and around the workplace
• Ensure regular building inspections are conducted
• Get expert advice on workplace safety and follow it

Non-Negotiable Employee Safety Habits


Every employer is obligated to ensure that his workplace follows the highest possible safety
protocol. When setting up a business, owners must make it a point to:
• Immediately report unsafe conditions to a supervisor
• Recognize and report safety hazards that could lead to slips, trips and falls
• Report all injuries and accidents to a supervisor
• Wear the correct protective equipment when required
• Learn how to correctly use equipment provided for safety purposes
• Be aware of and avoid actions that could endanger other people
• Take rest breaks during the day and some time off from work during the week

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Employability & Entrepreneurship Skills

Tips
• Be aware of what emergency number to call at the time of a workplace emergency
• Practice evacuation drills regularly to avoid chaotic evacuations

14.1.3 Self Analysis – Attitude, Achievement Motivation:


What is Self-Analysis?
To truly achieve your full potential, you need to take a deep look inside yourself and find out
what kind of person you really are. This attempt to understand your personality is known as
self-analysis. Assessing yourself in this manner will help you grow, and will also help you to
identify areas within yourself that need to be further developed, changed or eliminated. You
can better understand yourself by taking a deep look at what motivates you, what your attitude
is like, and what your strengths and weaknesses are.

What is Motivation ?
Very simply put, motivation is your reason for acting or behaving in a certain manner. It is
important to understand that not everyone is motivated by the same desires – people are
motivated by many, many different things. We can understand this better by looking at Maslow’s
Hierarchy of Needs.
Maslow’s Hierarchy of Needs
Famous American psychologist Abraham Maslow wanted to understand what motivates
people. He believed that people have five types of needs, ranging from very basic needs (called
physiological needs) to more important needs that are required for self-growth (called self-
actualization needs). Between the physiological and self-actualization needs are three other
needs – safety needs, belongingness and love needs, and esteem needs. These needs are
usually shown as a pyramid with five levels and are known as Maslow’s Hierarchy of Needs.

Self-fulfillment
Self -
needs
actualization:
achieving one's full
potential, including
creative activities
Esteem needs:
prestige and feeling of Psychological
accomplishment needs

Belongingness and love needs:


intimate relationships, friends

Safety needs:
Security, safety Basic
needs

Physiological needs:
food, water, warmth, rest

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As you can see from the pyramid, the lowest level depicts the most basic needs. Maslow
believed that our behaviour is motivated by our basic needs, until those needs are met. Once
they are fulfilled, we move to the next level and are motived by the next level of needs. Let’s
understand this better with an example.
Rupa comes from a very poor family. She never has enough food, water, warmth or rest.
According to Maslow, until Rupa is sure that she will get these basic needs, she will not even
think about the next level of needs – her safety needs. But, once Rupa is confident that her basic
needs will be met, she will move to the next level, and her behaviour will then be motivated
by her need for security and safety. Once these new needs are met, Rupa will once again move
to the next level, and be motivated by her need for relationships and friends. Once this need
is satisfied, Rupa will then focus on the fourth level of needs – her esteem needs, after which
she will move up to the fifth and last level of needs – the desire to achieve her full potential.

Understanding Achievement Motivation


We now know that people are motivated by basic, psychological and self-fulfillment needs. However, certain
people are also motivated by the achievement of highly challenging accomplishments. This is known as
Achievement Motivation, or ‘need for achievement’.
We now know that people are motivated by basic, psychological and self-fulfillment needs.
However, certain people are also motivated by the achievement of highly challenging
accomplishments. This is known as Achievement Motivation, or ‘need for achievement’.
The level of motivation achievement in a person differs from individual to individual. It is
important that entrepreneurs have a high level of achievement motivation – a deep desire to
accomplish something important and unique. It is equally important that they hire people who
are also highly motivated by challenges and success.

What Motivates You ?


What are the things that really motivate you? List down five things that really motivate you.
Remember to answer honestly!
I am motivated by:

Characteristics of Entrepreneurs with Achievement Motivation


Entrepreneurs with achievement motivation can be described as follows:

• Unafraid to take risks for personal • Very persistent when it comes to achieving
accomplishment goals
• Love being challenged • Extremely courageous
• Future-oriented • Highly creative and innovative
• Flexible and adaptive • Restless - constantly looking to achieve more
• Value negative feedback more than • Feel personally responsible for solving
positive feedback problems
Think about it: • Can you think of entrepreneurs who display
these traits?
• How many of these traits do you have?

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What is Attitude ?
Now that we understand why motivation is so important for self-analysis, let’s look at the
role our attitude plays in better understanding ourselves. Attitude can be described as your
tendency (positive or negative), to think and feel about someone or something. Attitude is the
foundation for success in every aspect of life. Our attitude can be our best friend or our worst
enemy. In other words:
Now that we understand why motivation is so important for self-analysis, let’s look at the
role our attitude plays in better understanding ourselves. Attitude can be described as your tendency
(positive or negative), to think and feel about someone or something. Attitude is the
foundation for success in every aspect of life. Our attitude can be our best friend or our worst
enemy. In other words:
“The only disability in life is a bad attitude.”
When you start a business, you are sure to encounter a wide variety of emotions, from difficult
times and failures to good times and successes. Your attitude is what will see you through
the tough times and guide you towards success. Attitude is also infectious. It affects everyone
around you, from your customers to your employees to your investors. A positive attitude helps
build confidence in the workplace while a negative attitude is likely to result in the demotivation
of your people.

How to Cultivate a Positive Attitude?


The good news is attitude is a choice. So it is possible to improve, control and change our
attitude, if we decide we want to! The following tips help foster a positive mindset:
• Remember that you control your attitude, not the other way around
• Devote at least 15 minutes a day towards reading, watching or listening to something positive
• Avoid negative people who only complain and stop complaining yourself
• Expand your vocabulary with positive words and delete negative phrases from your mind
• Be appreciative and focus on what’s good in yourself, in your life, and in others
• Stop thinking of yourself as a victim and start being proactive
• Imagine yourself succeeding and achieving your goals

What Are Your Strengths and Weaknesses ?


Another way to analyze yourself is by honestly identifying your strengths and weaknesses. This
will help you use your strengths to your best advantage and reduce your weaknesses.
Note down all your strengths and weaknesses in the two columns below. Remember to be
honest with yourself!

Strengths Weaknesses

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Tips
• Achievement motivation can be learned. • Train yourself to finish what you start.
• Don’t be afraid to make mistakes. • Dream big.

14.1.4 Honesty & Work Ethics: What is Honesty?


Honesty is the quality of being fair and truthful. It means speaking and acting in a manner
that inspires trust. A person who is described as honest is seen as truthful and sincere, and as
someone who isn’t deceitful or devious and doesn’t steal or cheat. There are two dimensions
of honesty – one is honesty in communication and the other is honesty in conduct.
Honesty is an extremely important trait because it results in peace of mind and builds
relationships that are based on trust. Being dishonest, on the other hand, results in anxiety and
leads to relationships full of distrust and conflict.

Qualities of Honest People


Honest individuals have certain distinct characteristics. Some common qualities among honest
people are:
1. They don’t worry about what others think of them. They believe in being themselves –
they don’t bother about whether they are liked or disliked for their personalities.
2. They stand up for their beliefs. They won’t think twice about giving their honest opinion,
even if they are aware that their point of view lies with the minority.
3. They are think skinned. This means they are not affected by others judging them harshly
for their honest opinions.
4. They forge trusting, meaningful and healthy friendships. Honest people usually surround
themselves with honest friends. They have faith that their friends will be truthful and
upfront with them at all times.
5. They are trusted by their peers. They are seen as people who can be counted on for
truthful and objective feedback and advice.
Importance of Honesty in Entrepreneurs
One of the most important characteristics of entrepreneurs is honesty. When entrepreneurs
are honest with their customers, employees and investors, it shows that they respect those
that they work with. It is also important that entrepreneurs remain honest with themselves.
Let’s look at how being honest would lead to great benefits for entrepreneurs.
• Honesty and customers: When entrepreneurs are honest with their customers it leads to
stronger relationships, which in turn results in business growth and a stronger customenretwork.
• Honesty and employees: When entrepreneurs build honest relationships with their
employees, it leads to more transparency in the workplace, which results in higher work
performance and better results.
• Honesty and investors: For entrepreneurs, being honest with investors means not only
sharing strengths but also candidly disclosing current and potential weaknesses, problem
areas and solution strategies. Keep in mind that investors have a lot of experience with
startups and are aware that all new companies have problems. Claiming that everything is
perfectly fine and running smoothly is a red flag for most investors.
• Honesty with oneself: The consequences of being dishonest with oneself can lead to dire
results, especially in the case of entrepreneurs. For entrepreneurs to succeed, it is critical
that they remain realistic about their situation at all times, and accurately judge every
aspect of their enterprise for what it truly is.

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What are Work Ethics ?


Being ethical in the workplace means displaying values like honesty, integrity and respect in
all your decisions and communications. It means not displaying negative qualities like lyincgh,eating and
stealing.
Workplace ethics play a big role in the profitability of a company. It is as crucial to an enterprise
as high morale and teamwork. This is why most companies lay down specific workplace ethic
guidelines that must compulsorily be followed by their employees. These guidelines are
typically outlined in a company’s employee handbook.

Elements of a Strong Work Ethic


An entrepreneur must display strong work ethics, as well as hire only those individuals who
believe in and display the same level of ethical behavior in the workplace. Some elements of
a strong work ethic are:
• Professionalism: This involves everything from how you present yourself in a corporate
setting to the manner in which you treat others in the workplace.
• Respectfulness: This means remaining poised and diplomatic regardless of how stressful
or volatile a situation is.
• Dependability: This means always keeping your word, whether it’s arriving on time for a
meeting or delivering work on time.
• Dedication: This means refusing to quit until the designated work is done, and completing the work at the
highest possible level of excellence.
• Determination: This means embracing obstacles as challenges rather than letting them
stop you, and pushing ahead with purpose and resilience to get the desired results.
• Accountability: This means taking responsibility for your actions and the consequences of your actions,
and not making excuses for your mistakes.
• Humility: This means acknowledging everyone’s efforts and had work, and sharing the
credit for accomplishments.
How to Foster a Good Work Ethic?
As an entrepreneur, it is important that you clearly define the kind of behaviour that you expect
from each and every team member in the workplace. You should make it clear that you expect
employees to display positive work ethics like:
• Honesty: All work assigned to a person should be done with complete honesty, without
any deceit or lies.
• Good attitude: All team members should be optimistic, energetic, and positive.
• Reliability: Employees should show up where they are supposed to be, when they are
supposed to be there.
• Good work habits: Employees should always be well groomed, never use inappropriate
language, conduct themselves professionally at all times, etc.
• Initiative: Doing the bare minimum is not enough. Every team member needs to be
proactive and show initiative.
• Trustworthiness: Trust is non-negotiable. If an employee cannot be trusted, it’s time to let
that employee go.
• Respect: Employees need to respect the company, the law, their work, their colleagues
and themselves.
• Integrity: Each and every team member should be completely ethical and must display
above board behaviour at all times.
• Efficiency: Efficient employees help a company grow while inefficient employees result in
a waste of time and resources.

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Tips
• Don’t get angry when someone tells you the truth and you don’t like what you hear.
• Always be willing to accept responsibility for your mistakes.

14.1.5 Creativity & Innovation : What is Creativity?


Creativity means thinking outside the box. It means viewing things in new ways or from different
perspectives, and then converting these ideas into reality. Creativity involves two parts: thinking
and producing. Simply having an idea makes you imaginative, not creative. However, having an
idea and acting on it makes you creative.
Characteristics of Highly Creative People
Some characteristics of creative people are:

• They are imaginative and playful • They detest rules and routine
• They see issues from different angles • They love to daydream
• They notice small details • They are very curious
• They have very little tolerance for boredom

What is Innovation ?
There are many different definitions of innovation. In simple terms, innovation means turning
an idea into a solution that adds value. It can also mean adding value by implementing a new
product, service or process, or significantly improving on an existing product, service or process.

Characteristics of Highly Innovative People


Some characteristics of highly innovative people are:
• They embrace doing things differently • They are highly proactive and persistent
• They don’t believe in taking shortcuts • They are organized, cautious and risk-averse
• They are not afraid to be unconventional

Tips
• Take regular breaks from your creative work to recharge yourself and gain fresh perspective.
• Build prototypes frequently, test them out, get feedback, and make the required changes.

14.1.6 Time Management: What is Time Management?


Time management is the process organizing your time, and deciding how to allocate your time
between different activities. Good time management is the difference between working smart
(getting more done in less time) and working hard (working for more time to get more done).
Effective time management leads to an efficient work output, even when you are faced with
tight deadlines and high pressure situations. On the other hand, not managing your time
effectively results in inefficient output and increases stress and anxiety.

Benefits of Time Management


Time management can lead to huge benefits like:

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• Greater productivity • Higher efficiency


• Better professional reputation • Reduced stress
• Higher chances for career advancement • Greater opportunities to achieve goals

Not managing time effectively can result in undesirable consequences like:

• Missing deadlines • Inefficient work output


• Substandard work quality • Poor professional reputation
• Stalled career • Increase in stress and anxiety

Traits of Effective Time Managers


Some traits of effective time managers are:
• They begin projects early • They break tasks into steps with specific
• They set daily objectives deadlines
• They modify plans if required, to achieve • They continually review long term goals
better results • They think of alternate solutions if and
• They are flexible and open-minded when required
• They inform people in advance if their • They ask for help when required
help will be required • They create backup plans
• They know how to say no

Effective Time Management Techniques


You can manage your time better by putting into practice certain time management techniques.
Some helpful tips are:
• Plan out your day as well as plan for interruptions. Give yourself at least 30 minutes to
figure out your time plan. In your plan, schedule some time for interruptions.
• Put up a “Do Not Disturb” sign when you absolutely have to complete a certain amount
of work.
• Close your mind to all distractions. Train yourself to ignore ringing phones, don’t reply to
chat messages and disconnect from social media sites.
• Delegate your work. This will not only help your work get done faster, but will also show
you the unique skills and abilities of those around you.
• Stop procrastinating. Remind yourself that procrastination typically arises due to the fear
of failure or the belief that you cannot do things as perfectly as you wish to do them.
• Prioritize. List each task to be completed in order of its urgency or importance level. Then
focus on completing each task, one by one.
• Maintain a log of your work activities. Analyze the log to help you understand how efficient
you are, and how much time is wasted every day.
• Create time management goals to reduce time wastage.

Tips
• Always complete the most important tasks first. • Set a time limit for every task that you will
• Get at least 7 – 8 hours of sleep every day. undertake.
• Start your day early. • Give yourself some time to unwind between
tasks.
• Don’t waste too much time on small,
unimportant details.

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14.1.7 Anger Management: What is Anger Management?


Anger management is the process of:
1. Learning to recognize the signs that you, or someone else, is becoming angry
2. Taking the best course of action to calm down the situation in a positive way
Anger management does not mean suppressing anger.
Importance of Anger Management
Anger is a perfectly normal human emotion. In fact, when managed the right way, anger can
be considered a healthy emotion. However, if it is not kept in check, anger can make us act
inappropriately and can lead to us saying or doing things that we will likely later regret.
Extreme anger can:
• Hurt you physically:: It leads to heart disease, diabetes, a weakened immune system,
insomnia, and high blood pressure.
• Hurt you mentally: It can cloud your thinking and lead to stress, depression and mental
health issues.
• Hurt your career: It can result in alienating your colleagues, bosses, clients and lead to the
loss of respect.
• Hurt your relationships: It makes it hard for your family and friends to trust you, be honest
with you and feel comfortable around you.
This is why anger management, or managing anger appropriately, is so important.

Anger Management Strategies


Here are some strategies that can help you control your anger:
Strategy 1: Relaxation
Something as simple as breathing deeply and looking at relaxing images works wonders in
calming down angry feelings. Try this simple breathing exercise:
1. Take a deep breath from your diaphragm (don’t breathe from your chest)
2. Visualize your breath coming up from your stomach
3. Keep repeating a calming word like ‘relax’ or ‘take it easy’ (remember to keep breathing
deeply while repeating the word)
4. Picture a relaxing moment (this can be from your memory or your imagination)
Follow this relaxation technique daily, especially when you realize that you’re starting to feel angry.
Strategy 2: Cognitive Restructuring
Cognitive restructuring means changing the manner in which you think. Anger can make you
curse, swear, exaggerate and act very dramatically. When this happens, force yourself to replace
your angry thoughts with more logical ones. For instance, instead of thinking ‘Everything is
ruined’ change your mindset and tell yourself ‘It’s not the end of the world and getting angry
won’t solve this’.
Strategy 3: Problem Solving
Getting angry about a problem that you cannot control is a perfectly natural response.
Sometimes, try as you may, there may not be a solution to the difficulty you are faced with. In
such cases, stop focusing on solving the problem, and instead focus on handling and facing the
problem. Remind yourself that you will do your best to deal with the situation, but that you will
not blame yourself if you don’t get the solution you desire.
Strategy 4: Better Communication
When you’re angry, it is very easy to jump to inaccurate conclusions. In this case, you need to
force yourself to stop reacting, and think carefully about what you want to say, before saying it.
Avoid saying the first thing that enters your head. Force yourself to listen carefully to what the
other person is saying. Then think about the conversation before responding.

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Strategy 5: Changing Your Environment


If you find that your environment is the cause of your anger, try and give yourself a break
from your surroundings. Make an active decision to schedule some personal time for yourself,
especially on days that are very hectic and stressful. Having even a brief amount of quiet or
alone time is sure to help calm you down.
Tips for Anger Management
The following tips will help you keep your anger in check:
• Take some time to collect your thoughts before you speak out in anger.
• Express the reason for your anger in an assertive, but non-confrontational manner once
you have calmed down.
• Do some form of physical exercise like running or walking briskly when you feel yourself
getting angry.
• Make short breaks part of your daily routine, especially during days that are stressful.
• Focus on how to solve a problem that’s making you angry, rather than focusing on the fact
that the problem is making you angry.

Tips
• Try to forgive those who anger you, rather than hold a grudge against them.
• Avoid using sarcasm and hurling insults. Instead, try and explain the reason for your
frustration in a polite and mature manner.

14.1.8 Stress Management: What is Stress?


We say we are ‘stressed’ when we feel overloaded and unsure of our ability to deal with the
pressures placed on us. Anything that challenges or threatens our well-being can be defined as a stress. It is
important to note that stress can be good and bad. While good stress keeps us going, negative stress
undermines our mental and physical health. This is why it is so important to manage negative stress
effectively.

Causes of Stress
Stress can be caused by internal and external factors.
Internal causes of stress
• Constant worry • Pessimism
• Rigid thinking • Negative self-talk
• Unrealistic expectations • All in or all out attitude

External causes of stress


• Major life changes • Difficulties at work or in school
• Difficulties with relationships • Financial difficulties
• Having too much to do • Worrying about one’s children and/or family

Symptoms of Stress
Stress can manifest itself in numerous ways. Take a look at the cognitive, emotional, physical
and behavioral symptoms of stress.

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Cognitive Symptoms Emotional Symptoms


• Memory problems • Depression
• Concentration issues • Agitation
• Lack of judgement • Irritability
• Pessimism • Loneliness
• Anxiety • Anxiety
• Constant worrying • Anger

Physical Symptoms Behavioral Symptoms


• Aches and pain • Increase or decrease in appetite
• Diarrhea or constipation • Over sleeping or not sleeping enough
• Nausea • Withdrawing socially
• Dizziness • Ignoring responsibilities
• Chest pain and/or rapid heartbeat • Consumption of alcohol or cigarettes
• Frequent cold or flu like feelings • Nervous habits like nail biting, pacing etc.

Tips to Manage Stress


The following tips can help you manage your stress better:
• Note down the different ways in which you can handle the various sources of your stress.
• Remember that you cannot control everything, but you can control how you respond.
• Discuss your feelings, opinions and beliefs rather than reacting angrily, defensivelypaosrsively.
• Practice relaxation techniques like meditation, yoga or tai chi when you start fesetrliensgsed.
• Devote a part of your day towards exercise.
• Eat healthy foods like fruits and vegetables. Avoid unhealthy foods especially those
containing large amounts of sugar.
• Plan your day so that you can manage your time better, with less stress.
• Say no to people and things when required.
• Schedule time to pursue your hobbies and interests.
• Ensure you get at least 7-8 hours of sleep.
• Reduce your caffeine intake.
• Increase the time spent with family and friends.

Tips
• Force yourself to smile even if you feel stressed. Smiling makes us feel relaxed and happy.
• Stop yourself from feeling and thinking like a victim. Change your attiude and focus on being proactive.

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14.2: Digital Literacy: A Recap


Unit Objectives
At the end of this unit, you will be able to:

1. Identify the basic parts of a computer


2. Identify the basic parts of a keyboard
3. Recall basic computer terminology
4. Recall the functions of basic computer keys
5. Discuss the main applications of MS Office
6. Discuss the benefits of Microsoft Outlook
7. Discuss the different types of e-commerce
8. List the benefits of e-commerce for retailers and customers
9. Discuss how the Digital India campaign will help boost e-commerce in India
10. Describe how you will sell a product or service on an e-commerce platform

14.2.1 Computer and Internet basics:


Basic Parts of a Computer
Monitor
Power
Button
Mouse
Keyboard
Fig.14.2.1. Parts of a Computer

• Central Processing Unit (CPU): The brain of the computer. It interprets and carries out
program instructions.
• Hard Drive: A device that stores large amounts of data.
• Monitor: The device that contains the computer screen where the information is visually
displayed.
• Mouse: A hand-held device used to point to items on the monitor.
• Speakers: Devices that enable you to hear sound from the computer.
• Printer: A device that converts output from a computer into printed paper documents.

Basic Parts of a Keyboard


Caps Backspace

Shift Space Enter Arrow Keys


Fig.14.2.2. Parts of a Keyboard
• Arrow Keys: Press these keys to move your cursor.
• Space bar: Adds a space.

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• Enter/Return: Moves your cursor to a new line.


• Shift: Press this key if you want to type a capital letter or the upper symbol of a key.
• Caps Lock: Press this key if you want all the letters you type to be capital letters. Press it
again to revert back to typing lowercase letters.
• Backspace: Deletes everything to the left of your cursor.

Basic Internet Terms


• The Internet: A vast, international collectionof computer networks that transfers information.
• The World Wide Web: A system that lets you access information on the Internet.
• Website: A location on the World Wide Web (and Internet) that contains information
about a specific topic.
• Homepage: Provides information about a website and directs you to other pages on thatwebsite.
• Link/Hyperlink: A highlighted or underlined icon, graphic, or text that takes you to another
file or object.
• Web Address/URL: The address for a website.
• Address Box: A box in the browser window where you can type in a web address.

Tips
• When visiting a .com address, there no need to type http:// or even www. Just type the
name of the website and then press Ctrl + Enter. (Example: Type ‘apple’ and press Ctrl +
Enter to go to www.apple.com)
• Press the Ctrl key and press the + or - to increase and decrease the size of text.
• Press F5 or Ctrl + R to refresh or reload a web page.

14.2.2 MS Office and Email: About MS Office


MS Office or Microsoft Office is a suite of computer programs developed by Microsoft. Although
meant for all users, it offers different versions that cater specifically to students, home users
and business users. All the programs are compatible with both, Windows and Macintosh.

Most Popular Office Products


Some of the most popular and universally used MS Office applications are:
• Microsoft Word: Allows users to type text and add images to a document.
• Microsoft Excel: Allows users to enter data into a spreadsheet and create calculations and graphs.
• Microsoft PowerPoint: Allows users to add text, pictures and media and create slideshows
and presentations.
• Microsoft Outlook: Allows users to send and receive email.
• Microsoft OneNote: Allows users to make drawings and notes with the feel of a pen on paper.
• Microsoft Access: Allows users to store data over many tables.

Why Choose Microsoft Outlook?


A popular email management choice especially in the workplace, Microsoft Outlook also includes
an address book, notebook, web browser and calendar. Some major benefits of this program are:
• Integrated search function: You can use keywords to search for data across all Outloopkrograms.
• Enhanced security: Your email is safe from hackers, junk mail and phishing website email.
• Email syncing: Sync your mail with your calendar, contact list, notes in One Note and…your phone!
• Offline access to emai:l No Internet? No problem! Write emails offline and send them
when you’re connected again.

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Tips
• Press Ctrl+R as a shortcut method to reply to email.
• Set your desktop notifications only for very important emails.
• Flag messages quickly by selecting messages and hitting the Insert key.
• Save frequently sent emails as a template to reuse again and again.
• Conveniently save important emails as files.

14.2.3 E-Commerce: What is E-Commerce?


E-commerce is the buying or selling of goods and services, or the transmitting of money or
data, electronically on the internet. E-Commerce is the short form for “electronic commerce.”

Examples of E-Commerce
Some examples of e-commerce are:
• Online shopping • Electronic payments
• Online auctions • Internet banking
• Online ticketing

Types of E-Commerce
E-commerce can be classified based on the types of participants in the transaction. The main
types of e-commerce are:
• Business to Business (B2B): Both the transacting parties are businesses.
• Business to Consumer (B2C): Businesses sell electronically to end-consumers.
• Consumer to Consumer (C2C): Consumers come together to buy, sell or trade items to
other consumers.
• Consumer-to-Business (C2B): Consumers make products or services available for purchase
to companies looking for exactly those services or products.
• Business-to-Administration (B2A): Online transactions conducted between companies
and public administration.
• Consumer-to-Administration (C2A): Online transactions conducted between individuals
and public administration.

Benefits of E-Commerce
The e-commerce business provides some benefits for retailers and customers.
Benefits for retailers
• Establishes an online presence
• Reduces operational : costs by removing overhead costs
• Increases brand awareness through the use of good keywords
• Increases sales by removing geographical and time constraints
Benefits for customers:
• Offers a wider range of choice than any physical store
• Enables goods and services to be purchased from remote locations
• Enables consumers to perform price comparisons

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Digital India Campaign


Prime Minister Narendra Modi launched the Digital India campaign in 2015, with the objective
of offering every citizen of India access to digital services, knowledge and information. The
campaign aims to improve the country’s online infrastructure and increase internet connectivity,
thus boosting the e-commerce industry.
Currently, the majority of online transactions come from tier 2 and tier 3 cities. Once the Digital
India campaign is in place, the government will deliver services through mobile connectivity,
which will help deliver internet to remote corners of the country. This will help the e-commerce
market to enter India’s tier 4 towns and rural areas.

E-Commerce Activity
Choose a product or service that you want to sell online. Write a brief note explaining how
you will use existing e-commerce platforms, or create a new e-commerce platform, to sell your
product or service.

Tips
• Before launching your e-commerce platform, test everything.
• Pay close and personal attention to your social media.

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14.3: Money Matters


Unit Objectives
At the end of this unit, you will be able to:
1. Discuss the importance of saving money
2. Discuss the benefits of saving money
3. Discuss the main types of bank accounts
4. Describe the process of opening a bank account
5. Differentiate between fixed and variable costs
6. Describe the main types of investment options
7. Describe the different types of insurance products
8. Describe the different types of taxes
9. Discuss the uses of online banking
10. Discuss the main types of electronic funds transfers

14.3.1 Personal Finance – Why to Save?:


Importance of Saving
We all know that the future is unpredictable. You never know what will happen tomorrow, next
week or next year. That’s why saving money steadily through the years is so important. Saving
money will help improve your financial situation over time. But more importantly, knowing that
you have money stashed away for an emergency will give you peace of mind. Saving money
also opens the door to many more options and possibilities.
Benefits of Saving
Inculcating the habit of saving leads to a vast number of benefits. Saving helps you:
• Become financially independent: When you have enough money saved up to feel secure
you can start making your choices, from taking a vacation whenever you want, to switching
careers or starting your own business.
• Invest in yourself through education: Through saving, you can earn enough to pay up for
courses that will add to your professional experience and ultimately result in higher paying jobs.
• Get out of debt: Once you have saved enough as a reserve fund, you can use your savings
to pay off debts like loans or bills that have accumulated over time.
• Be prepared for surprise expenses : Having money saved enables you to pay for unforeseen
expenses like sudden car or house repairs, without feeling financially stressed.
• Pay for emergencies: Saving helps you deal with emergencies like sudden health issues or
emergency trips without feeling financially burdened.
• Afford large purchases and achieve major goals:: Saving diligently makes it possible to
place down payments towards major purchases and goals, like buying a home or a car.
• Retire: The money you have saved over the years will keep you comfortable when you no
longer have the income you would get from your job.

Tips
• Break your spending habit. Try not spending on one expensive item per week, and put the
money that you would have spent into your savings.
• Decide that you will not buy anything on certain days or weeks and stick to your word.

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14.3.2 Types of Bank Accounts, Opening a


Bank Account: Types of Bank Accounts
In India, banks offer four main types of bank accounts. These are:
• Current Accounts
• Savings Accounts
• Recurring Deposit Accounts
• Fixed Deposit Accounts
Current Accounts
Current accounts offer the most liquid deposits and thus, are best suited for businessmen and
companies. As these accounts are not meant for investments and savings, there is no imposed
limit on the number or amount of transactions that can be made on any given day. Current
account holders are not paid any interest on the amounts held in their accounts. They are
charged for certain services offered on such accounts.
Saving Accounts
Savings accounts are meant to promote savings, and are therefore the number one choice
for salaried individuals, pensioners and students. While there is no restriction on the number
and amount of deposits made, there are usually restrictions on the number and amount of
withdrawals. Savings account holders are paid interest on their savings.
:
Recurring Deposit Accounts
Recurring Deposit accounts, also called RD accounts, are the accounts of choice for those who want
to save an amount every month, but are unable to invest a large sum at one time. Such account
holders deposit a small, fixed amount every month for a pre-determined period (minimum 6
months). Defaulting on a monthly payment results in the account holder being charged a penalty
amount. The total amount is repaid with interest at the end of the specified period.
Fixed Deposit Accounts
Fixed Deposit accounts, also called FD accounts, are ideal for those who wish to deposit their
savings for a long term in return for a high rate of interest. The rate of interest offered depends
on the amount deposited and the time period, and also differs from bank to bank. In the case
of an FD, a certain amount of money is deposited by the account holder for a fixed period of
time. The money can be withdrawn when the period expires. If necessary, the depositor can
break the fixed deposit prematurely. However, this usually attracts a penalty amount which
also differs from bank to bank.

Opening a Bank Account


Opening a bank account is quite a simple process. Take a look at the steps to open an accountof your own:
Step 1: Fill in the Account Opening Form
This form requires you to provide the following information:
• Personal details (name, address, phone number, date of birth, gender, occupation, address)
• Method of receiving your account statement (hard copy/email)
• Details of your initial deposit (cash/cheque)
• Manner of operating your account (online/mobile banking/traditional via cheque, slip books)
Ensure that you sign wherever required on the form.
Step 2: Affix your Photograph
Stick a recent photograph of yourself in the allotted space on the form.

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Step 3: Provide your Know Your Customer (KYC) Details


KYC is a process that helps banks verify the identity and address of their customers. To open an
account, every individual needs to submit certain approved documents with respect to photo
identity (ID) and address proof. Some Officially Valid Documents (OVDs) are:
• Passport
• Driving License
• Voters’ Identity Card
• PAN Card
• UIDAI (Aadhaar) Card
Step 4: Submit All your Documents
Submit the completed Account Opening Form and KYC documents. Then wait until the forms
are processed and your account has been opened!

Tips
• Select the right type of account. • Understand the rules.
• Fill in complete nomination details. • Check for online banking – it’s convenient!
• Ask about fees. • Keep an eye on your bank balance.

14.3.3 Costs: Fixed vs Variable: What are Fixed and


Variable Costs?
Fixed costs and variable costs together make up a company’s total cost. These are the two
types of costs that companies have to bear when producing goods and services.
A fixed cost does not change with the volume of goods or services a company produces. It
always remains the same.
A variable cost, on the other hand, increases and decreases depending on the volume of goods
and services produced. In other words, it varies with the amount produced.

Differences Between Fixed and Variable Costs


Let’s take a look at some of the main differences between fixed and variable costs:

Criteria Fixed Costs Variable Costs


Meaning A cost that stays the same, regardless A cost that changes when the
of the output produced.
Nature Time related. Volume related.
Incurred Incurred irrespective of units being Incurred only when units are produced.
produced.
Unit cost Inversely proportional to the number of Remains the same, per unit.
units produced.
Examples Depreciation, rent, salary, insurance, Material consumed, wages, commission
tax etc. on sales, packing expenses, etc.

Tips
• When trying to determine whether a cost is fixed or variable, simply ask the following
question: Will the particular cost change if the company stopped its production activities? If
the answer is no, then it is a fixed cost. If the answer is yes, then it is probably a variable cost.

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14.3.4 Investment, Insurance and Taxes: Investment


Investment means that money is spent today with the aim of reaping financial gains at a future
time. The main types of investment options are as follows:
• Bonds: Bonds are instruments used by public and private companies to raise large sums of
money – too large to be borrowed from a bank. These bonds are then issued in the public
market and are bought by lenders.
• Stocks: Stocks or equity are shares that are issued by companies and are bought by the
general public.
• Small Savings Schemes: Small Savings Schemes are tools meant to save money in small
amounts. Some popular schemes are the Employees Provident Fund, Sukanya Samriddhi
Scheme and National Pension Scheme.
• Mutual Funds: Mutual Funds are professionally managed financial instruments that invest
money in different securities on behalf of investors.
• Fixed Deposits: A fixed amount of money is kept aside with a financial institution for a
fixed amount of time in return for interest on the money.
• Real Estate: Loans are taken from banks to purchase real estate, which is then leased or
sold with the aim of making a profit on the appreciated property price.
• Hedge Funds: Hedge funds invest in both financial derivatives and/or publicly trade securit.ies.
• Private Equity: Private Equity is trading in the shares of an operating company that is not
publicly listed and whose shares are not available on the stock market.
Insurance
There are two types of insurance – Life Insurance and Non-Life or General Insurance.
Life Insurance
Life Insurance deals with all insurance covering human life.
Life Insurance Products
The main life insurance products are:
• Term Insurance: This is the simplest and cheapest form of insurance. It offers financial
protection for a specified tenure, say 15 to 20 years. In the case of your death, your family
is paid the sum assured. In the case of your surviving the term, the insurer pays nothing.
• Endowment Policy: This offers the dual benefit of insurance and investment. Part of the
premium is allocated towards the sum assured, while the remaining premium gets invested
in equity and debt. It pays a lump sum amount after the specified duration or on the death
of the policyholder, whichever is earlier.
• Unit-Linked Insurance Plan (ULIP): Here part of the premium is spent on the life cover,
while the remaining amount is invested in equity and debt. It helps develop a regular
saving habit.
• Money Back Life Insurance : While the policyholder is alive, periodic payments of the
partial survival benefits are made during the policy tenure. On the death of the insured,
the insurance company pays the full sum assured along with survival benefits.
• Whole Life Insurance: It offers the dual benefit of insurance and investment. It offers
insurance cover for the whole life of the person or up to 100 years whichever is earlier.
General Insurance
General Insurance deals with all insurance covering assets like animals, agricultural crops,
goods, factories, cars and so on.
General Insurance Products
The main general insurance products are:
• Motor Insurance: This can be divided into Four Wheeler Insurance and Two Wheeler insurance.

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• Health Insurance: The main types of health insurance are individual health insurance, family
floater health insurance, comprehensive health insurance and critical illness insurance.
• Travel Insurance: This can be categorised into Individual Travel Policy, Family Travel Policy,
Student Travel Insurance and Senior Citizen Health Insurance.
• Home Insurance: This protects the house and its contents from risk.
• Marine Insurance: This insurance covers goods, freight, cargo etc. against loss or damage
during transit by rail, road, sea and/or air.
Taxes
There are two types of taxes – Direct Taxes and Indirect Taxes.
Direct Tax
Direct taxes are levied directly on an entity or a person and are non-transferrable.
Some examples of Direct Taxes are:
• Income Tax: This tax is levied on your earning in a financial year. It is applicable to both,
individuals and companies.
• Capital Gains Tax: This tax is payable whenever you receive a sizable amount of money.
It is usually of two types – short term capital gains from investments held for less than 36
months and long term capital gains from investments held for longer than 36 months.
• Securities Transaction Tax: This tax is added to the price of a share. It is levied every time
you buy or sell shares.
• Perquisite Tax: This tax is levied is on perks that have been acquired by a company or used
by an employee.
• Corporate Tax: Corporate tax is paid by companies from the revenue they earn.
Indirect Tax
Indirect taxes are levied on goods or services.
Some examples of Indirect Taxes are:
• Sales Tax: Sales Tax is levied on the sale of a product.
• Service Tax: Service Tax is added to services provided in India.
• Value Added Tax: Value Added Tax is levied at the discretion of the state government. The tax is levied on
goods sold in the state. The tax amount is decided by the state.
• Customs Duty & OctroiC : ustoms Duty is a charge that is applied on purchases that are imported from
another country. Octroi is levied on goods that cross state borders within India.
• Excise Duty: Excise Duty is levied on all goods manufactured or produced in India.

Tips
• Think about how quickly you need your money back and pick an investment option
accordingly.
• Ensure that you are buying the right type of insurance policy for yourself.
• Remember, not paying taxes can result in penalties ranging from fines to imprisonment.

14.3.5 Online Banking, NEFT, RTGS etc.: What is


Online Banking?
Internet or online banking allows account holders to access their account from a laptop at any
location. In this way, instructions can be issued. To access an account, account holders simply

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Internet banking can be used to:


Ÿ Find out an account balance Ÿ Request for a cheque book
Ÿ Transfer amounts from one account to another Ÿ Request for a statement of accounts
Ÿ Arrange for the issuance of cheques Ÿ Make a fixed deposit
Ÿ Instruct payments to be made

Electronic Funds Transfers


Electronic funds transfer is a convenient way of transferring money from the comfort of one’s own home,
using integrated banking tools like internet and mobile banking.
Transferring funds via an electronic gateway is extremely convenient. With the help of online banking, you
can choose to:
Ÿ Transfer funs into your own accounts of the same Ÿ Transfer funds into other bank accounts using
bank. RTGS.
Ÿ Transfer funds into different accounts of the same Ÿ Transfer funds into various accounts using IMPS.
bank.
Ÿ Transfer funds into accounts in different bank,
using NEFT.
NEFT
NEFT stands for National Electronic Funds Transfer. This money transfer system allows you to electronically
transfer funds from your respective bank accounts to any other account, either in the same bank or
belonging to any other bank. NEFT can be used by individuals, firms and
corporate organizations to transfer funds between accounts.
In order to transfer funds via NEFT, two things are required:
• A transferring bank
• A destination bank
Before you can transfer funds through NEFT, you will need to register the beneficiary who will
be receiving the funds. In order to complete this registration, you will require the following information:

• Recipient’s name • Recipient’s bank’s name


• Recipient’s account number • Recipient’s bank’s IFSC code

RTGS
RTGS stands for Real Time Gross Settlement. This is a real time funds transfer system which enables you to
transfer funds from one bank to another, in real time or on a gross basis. The transferred amount is
immediately deducted from the account of one bank, and instantly credited to the other bank’s account.
The RTGS payment gateway is maintained by the Reserve Bank of India. The transactions between banks are
made electronically. RTGS can be used by individuals, companies and firms to transfer large sums of money.
Before remitting funds through RTGS, you will need to add the beneficiary and his bank account details
via your online banking account. In order to complete this registration, you will require the
• Name of the beneficiary • Beneficiary’s account number
• Beneficiary’s bank address • Beneficiary’s bank’s IFSC code
IMPS
IMPS stands for Immediate Payment Service. This is a real-time, inter-bank, electronic funds
transfer system used to transfer money instantly within banks across India. IMPS enables
users to make instant electronic transfer payments using mobile phones through both, Mobile Banking and
S M S . I t c a n a l s o b e u s e d t h r o u g h AT M s a n d o n l i n e b a n k i n g . I M P S i s a v a i l a b l e 2 4
hours a day and 7 days a week. The system features a secure transfer gateway and immediately
confirms orders that have been fulfilled.

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• Register for IMPS with your bank


• Receive a Mobile Money Identifier (MMID) from the bank
• Receive a MPIN from the bank
To transfer money through IMPS, the you need to:
Once you have both these, you can login or make a request through SMS to transfer a particular
amount to a beneficiary.
For the beneficiary to receive the transferred money, he must:
1. Link his mobile number with his respective account

2. Receive the MMID from the bank

In order to initiate a money transfer through IMPS, you will need to enter the following information:
1. The beneficiary’s mobile number 2. The beneficiary’s MMID
3. The transfer amount 4. Your MPIN
As soon as money has been deducted from your account and credited into the beneficiary ’s account, you
will be sent a confirmation SMS with a transaction reference number, for futurereference.
Differences Between NEFT, RTGS & IMPS
Criteria NEFT RTGS IMPS
Settlement Done in batches Real-time Real-time
Full form National Electronic Real Time Gross Immediate Payment
Fund Transfer Settlement Service
Timings on 8:00 am – 6:30 pm 9:00 am – 4:30 pm 24x7
Monday – Friday
Timings on 8:00 am – 1:00 pm 9:00 am – 1:30 pm 24x7
Saturday
Minimum amount `1 `2 lacs `1
of money transfer
limit
Maximum amount `10 lacs `10 lacs per day `2 lacs
of money transfer
limit
Maximum charges Upto 10,000 – `2.5 above 2 – 5 lacs – Upto 10,000 – `5
as per RBI above 10,000 – 1 lac `25 above 10,000 – 1 lac
– `5 – `5
above 5 – 10 lacs –
above 1 – 2 lacs – above 1 – 2 lacs –
`50
`15 `15
above 2 – 5 lacs –
`25
above 5 – 10 lacs –
`25

Tips
• Never click on any links in any e-mail message to access your online banking website.
• You will never be asked for your credit or debit card details while using online banking.
• Change your online banking password regularly.

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14.4: Preparing for Employment & Self Employment


Unit Objectives
At the end of this unit, you will be able to:
1. Discuss the steps to prepare for an interview
2. Discuss the steps to create an effective Resume
3. Discuss the most frequently asked interview questions
4. Discuss how to answer the most frequently asked interview questions
5. Discuss basic workplace terminology

14.4.1 Interview Preparation: How to Prepare


for an Interview ?
The success of your getting the job that you want depends largely on how well your interview
for that job goes. Therefore, before you go in for your interview, it is important that you prepare
for it with a fair amount of research and planning. Take a look at the steps to follow in order to
be well prepared for an interview:
1. Research the organization that you are having the interview with.
• Studying the company beforehand will help you be more prepared at the time of the
interview. Your knowledge of the organization will help you answer questions at the
time of the interview, and will leave you looking and feeling more confident. This is sure
to make you stand out from other, not as well informed, candidates.
• Look for background information on the company. Ty and find an overview of the
company and its industry profile.
• Visit the company website to get a good idea of what the company does. A company
website offers a wealth of important information. Read and understand the company’s
mission statement. Pay attention to the company’s products/services and client list. Read
through any press releases to get an idea of the company’s projected growth and stability.
• Note down any questions that you have after your research has been completed.
2. Think about whether your skills and qualifications match the job requirements.
• Carefully read through and analyze the job description.
• Make a note of the knowledge, skills and abilities required to fulfill the job requirements.
• Take a look at the organization hierarchy. Figure out where the position you are applying
for fits into this hierarchy.
3. Go through the most typical interview questions asked, and prepare your responses.
• Remember, in most interviews a mix of resume-based, behavioral and case study questions are
asked.
• Think about the kind of answers you would like to provide to typical questions asked in these three
areas.
• Practice these answers until you can express them confidently and clearly.
4. Plan your attire for the interview.
• It is always safest to opt for formal business attire, unless expressly informed to dress in business casual
(in which case you should use your best judgement).

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• Ensure that your clothes are clean and well-ironed. Pick neutral colours – nothing too bright or flashy.
• The shoes you wear should match your clothes, and should be clean and suitable for an interview.
• Remember, your aim is to leave everyone you meet with the impression that you are a professional
and highly efficient person.
5. Ensure that you have packed everything that you may require during the interview.
• Carry a few copies of your resume. Use a good quality paper for your resume print outs.
• Always take along a notepad and a pen.
• Take along any information you may need to refer to, in order to fill out an application form.
• Carry a few samples of your work, if relevant.
6. Remember the importance of non-verbal communication.
• Practice projecting confidence. Remind yourself to smile and make eye contact. Practice giving a firm
handshake.
• Keep in mind the importance of posture. Practice sitting up straight. Train yourself to stop nervous
gestures like fidgeting and foot-tapping.
• Practice keeping your reactions in check. Remember, your facial expressions provide a good insight
into your true feelings. Practice projecting a positive image.
7. Make a list of questions to end the interview with.
• Most interviews will end with the interviewer(s) asking if you have any questions. This is your chance
to show that you have done your research and are interested in learning more about the company.
• If the interviewer does not ask you this question, you can inform him/her that you have some querirs
that you would like to discuss. This is the time for you to refer to the notes you made while studing
the company.
• Some good questions to ask at this point are:
o What do you consider the most important criteria for success in this job?
o How will my performance be evaluated?
o What are the opportunities for advancement?
o What are the next steps in the hiring process?
• Remember, never ask for information that is easily available on the company website.

Tips
• Ask insightful and probing questions.
• When communicating, use effective forms of body language like smiling, making eye
contact, and actively listening and nodding. Don’t slouch, play with nearby items, fidget,
chew gum, or mumble.

14.4.2 Preparing an Effective Resume: How to


Create an Effective Resume?
A resume is a formal document that lists a candidate’s work experience, education and skills. A good resume
gives a potential employer enough information to believe the applicant is worth interviewing. That’s why it is so
important to create a résumé that is effective. Take a look at the steps to create an effective resume:

Step 1: Write the Address Section


The Address section occupies the top of your resume. It includes information like your name, address,

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phone number and e-mail address. Insert a bold line under the section to separate it
from rest of your resume.
Example:

Khyati Mehta
Breach Candy, Mumbai – India
Contact No: +91 2223678270
Email: [email protected]

Step 2: Add the Profile Summary Section


This part of your resume should list your overall experiences, achievements, awards, certifications
and strengths. You can make your summary as short as 2-3 bullet points or as long as 8-10 bullet points.
Example:
Profile Summary
• A Floor Supervisor graduated from University of Delhi having 6 years of experience in
managing a retail outlet.
• Core expertise lies in managing retail staff, including cashiers and people working on the
floor.

Step 3: Include Your Educational Qualifications


When listing your academic records, first list your highest degree. Then add the second highest
qualification under the highest one and so on. To provide a clear and accurate picture of your
educational background, it is critical that include information on your position, rank, percentage
or CPI for every degree or certification that you have listed.
If you have done any certifications and trainings, you can add a Trainings & Certifications section
under your Educational Qualifications section.
Example:

Educational Qualifications
• <Enter qualification> <enter date of qualification> from <enter name of institute> with
<enter percentage or any other relevant scoring system>.

Step 4: List Your Technical Skills


When listing your technical skills, start with the skills that you are most confident about. Then add the skills
that you do not have as good a command over. It is perfectly acceptable to include just one skill, if you feel
that particular skill adds tremendous value to your résumé. If you do not have any technical skills, you can
omit this step.
Example:
Technical Skills
• <Enter your technical skill here, if applicable>

Step 5: Insert Your Academic Project Experience


List down all the important projects that you have worked on. Include the following information in this
section:
• Project title • Organization • Platform used
• Contribution • Description

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Example:
Academic Projects
Project Title: <Insert project title>
Organization: <Insert the name of the organization for whom you did the project>
Platform used: <Insert the platform used, if any>
Contribution: <Insert your contribution towards this project>
Description: <Insert a description of the project in one line>

Step 6: List Your Strengths


This is where you list all your major strengths. This section should be in the form of a bulleted list.
Example:

Strengths
• Excellent oral, written and presentation skills
• Action-oriented and result-focused
• Great time management skills

Step 7: List Your Extracurricular Activities


It is very important to show that you have diverse interests and that your life consists of more than
academics. Including your extracurricular activities can give you an added edge over other candidates who
have similar academic scores and project experiences. This section should be in the form of a bulleted list.
Example:

• < Insert your extracurricular activity here. E.g.: Member of , played


(name of sport) at level, won (name of prize/award) for >

Step 8: Write Your Personal Details

The last section of your résumé must include the following personal information:
• Date of birth • Gender & marital status
• Nationality • Languages known
Example:
Personal Details
• Date of birth: 25th May, 1981
• Gender & marital status: Female, Single
• Nationality: Indian
• Languages known: English, Hindi, Tamil, French

Tips
• Keep your resume file name short, simple and informational.
• Make sure the resume is neat and free from typing errors.
• Always create your resume on plain white paper.

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14.4.3 Interview FAQs


Take a look at some of the most frequently asked interview questions, and some helpful tips on
how to answer them.
Q1. Can you tell me a little about yourself?
Tips to answer:
• Don’t provide your full employment or personal history.
• Offer 2-3 specific experiences that you feel are most valuable and relevant.
• Conclude with how those experiences have made you perfect for this specific role.

Q2. How did you hear about the position?


Tips to answer:
• Tell the interviewer how you heard about the job – whether it was through a friend
(name the friend), event or article (name them) or a job portal (say which one).
• Explain what excites you about the position and what in particular caught your eye
about this role.
Q3. What do you know about the company?
Tips to answer:
• Don’t recite the company’s About Us page.
• Show that you understand and care about the company’s goals.
• Explain why you believe in the company’s mission and values.
Q4. Why do you want this job?
Tips to answer:
• Show that you are passionate about the job.
• Identify why the role is a great fit for you.
• Explain why you love the company.
Q5. Why should we hire you?
Tips to answer:
• Prove through your words that you can not only do the work, but can definitely deliver
excellent results.
• Explain why you would be a great fit with the team and work culture.
• Explain why you should be chosen over any other candidate.
Q6. What are your greatest professional strengths?
Tips to answer:
• Be honest – share some of your real strengths, rather than give answers that you think
sound good.
• Offer examples of specific strengths that are relevant to the position you are applying for.
• Provide examples of how you’ve demonstrated these strengths.
Q7. What do you consider to be your weaknesses?
Tips to answer:
• The purpose of this question is to gauge your self-awareness and honesty.
• Give an example of a trait that you struggle with, but that you’re working on to improve.

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Q8. What are your salary requirements?


Tips to answer:
• Do your research beforehand and find out the typical salary range for the job you are
applying for.
• Figure out where you lie on the pay scale based on your experience, education, and skills.
• Be flexible. Tell the interviewer that you know your skills are valuable, but that you want
the job and are willing to negotiate.
Q9. What do you like to do outside of work?
Tips to answer:
• The purpose of this question is to see if you will fit in with the company culture.
• Be honest – open up and share activities and hobbies that interest and excite you.
Q10. If you were an animal, which one would you want to be?
Tips to answer:
• The purpose of this question is to see if you are able to think on your feet.
• There’s no wrong answer – but to make a great impression try to bring out your strengths
or personality traits through your answer.
Q11: What do you think we could do better or differently?
Tips to answer:
• The purpose of this question is to see if you have done your research on the company,
and to test whether you can think critically and come up with new ideas.
• Suggest new ideas. Show how your interests and expertise would help you execute
these ideas.
Q12: Do you have any questions for us?
Tips to answer:
• Do not ask questions to which the answers can be easily found on the company website
or through a quick online search.
• Ask intelligent questions that show your ability to think critically.

Tips
• Be honest and confident while answering.
• Use examples of your past experiences wherever possible to make your answers more
impactful.

14.4.4 Work Readiness – Terms & Terminologies:


Basic Workplace Terminology
Every employee should be well versed in the following terms:
• Annual leave: Paid vacation leave given by employers to employees.
• Background Check: A method used by employers to verify the accuracy of the information
provided by potential candidates.
• Benefits: A part of an employee’s compensation package.
• Breaks: Short periods of rest taken by employees during working hours.

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• Compensation Package: The combination of salary and benefits that an employer provides to his/her
employees.
• Compensatory Time (Comp Time): Time off in lieu of pay.
• Contract Employee: An employee who works for one organization that sells said employee’s service to
another company, either on a project or time basis.
• Contract of Employment: When an employee is offered work in exchange for wages or salary, and
accepts the offer made by the employer, a contract of employment exists.
• Corporate Culture: The beliefs and values shared by all the members of a company, and imparted
from one generation of employees to another.
• Counter Offer/Counter Proposal: A negotiation technique used by potential candidates to increase
the amount of salary offered by a company.
• Cover Letter: A letter that accompanies a candidate’s resume. It emphasizes the important points in
the candidate’s resume and provides real examples that prove the candidate’s ability to perform
the expected job role.
• Curriculum Vitae (CV)/Resume: A summary of a candidate’s achievements, educational background,
work experience, skills and strengths.
• Declining Letter: A letter sent by an employee to an employer, turning down the job offer made by the
employer to the employee.
• Deductions: Amounts subtracted from an employee’s pay and listed on the employee’s pay slip.
• Discrimination: The act of treating one person not as favourably as another person.
• Employee: A person who works for another person in exchange for payment.
• Employee Training: A workshop or in-house training that an employee is asked to attend
by his or her superior, for the benefit of the employer.
• Employment Gaps: Periods of unemployed time between jobs.
• Fixed-Term Contract: A contract of employment which gets terminated on an agreed-upon date.
• Follow-Up: The act of contacting a potential employer after a candidate has submitted his or her resume.
• Freelancer/Consultant/Independent Contractor: A person who works for him or herself and pitches
for temporary jobs and projects with different employers.
• Holiday: Paid time-off from work.
• Hourly Rate: The amount of salary or wages paid for 60 minutes of work.
• Internship: A job opportunity offered by an employer to a potential employee, called an intern, to work
at the employer’s company for a fixed, limited time period.
• Interview: A conversation between a potential employee and a representative of an employer, in
order to determine if the potential employee should be hired.
• Job Application: A form which asks for a candidate’s information like the candidate’s name, address, contact
details and work experience. The purpose of a candidate submitting a job application, is to show that
candidate’s interest in working for a particular company.
• Job Offer: An offer of employment made by an employer to a potential employee.
• Job Search Agent: A program that enables candidates to search for employment opportunities
by selecting criteria listed in the program, for job vacancies.
• Lay Off: A lay off occurs when an employee is temporarily let go from his or her job, due to
the employer not having any work for that employee.
• Leave: Formal permission given to an employee, by his or her employer, to take a leave of
absence from work.

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• Letter of Acceptance: A letter given by an employer to an employee, confirming the offer of employment
made by the employer, as well as the conditions of the offer.
• Letter of Agreement: A letter that outlines the terms of employment.
• Letter of Recommendation: A letter written for the purpose of validating the work skills of a person.
• Maternity Leave: Leave taken from work by women who are pregnant, or who have just given birth.
• Mentor: A person who is employed at a higher level than you, who offers you advice and guides you
in your career.
• Minimum wage: The minimum wage amount paid on an hourly basis.
• Notice: An announcement made by an employee or an employer, stating that the employment
contract will end on a particular date.
• Offer of Employment: An offer made by an employer to a prospective employee that contains
important information pertaining to the job being offered, like the starting date, salary, working
conditions etc.
• Open-Ended Contract: A contract of employment that continues till the employer or employee
terminates it.
• Overqualified: A person who is not suited for a particular job because he or she has too many years
of work experience, or a level of education that is much higher than required for the job, or is
currently or was previously too highly paid.
• Part-Time Worker: An employee who works for fewer hours than the standard number of hours
normally worked.
• Paternity Leave: Leave granted to a man who has recently become a father.

• Recruiters/Headhunters/Executive Search Firms: Professionals who are paid by employers to search


for people to fill particular positions.
• Resigning/Resignations: When an employee formally informs his or her employer that he or she is
quitting his or her job.
• Self-Employed: A person who has his or her own business and does not work in the capacity
of an employee.
• Time Sheet: A form that is submitted to an employer, by an employee, that contains the number of
hours worked every day by the employee.

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14.5: Understanding Entrepreneurship


Unit Objectives
1. Discuss the concept of entrepreneurship
2. Discuss the importance of entrepreneurship
3. Describe the characteristics of an entrepreneur
4. Describe the different types of enterprises
5. List the qualities of an effective leader
6. Discuss the benefits of effective leadership
7. List the traits of an effective team
8. Discuss the importance of listening effectively
9. Discuss how to listen effectively
10. Discuss the importance of speaking effectively
11. Discuss how to speak effectively
12. Discuss how to solve problems
13. List important problem solving traits
14. Discuss ways to assess problem solving skills
15. Discuss the importance of negotiation
16. Discuss how to negotiate
17. Discuss how to identify new business opportunities
18. Discuss how to identify business opportunities within your business
19. Explain the meaning of entrepreneur
20. Describe the different types of entrepreneurs
21. List the characteristics of entrepreneurs
22. Recall entrepreneur success stories
23. Discuss the entrepreneurial process
24. Describe the entrepreneurship ecosystem
25. Discuss the purpose of the Make in India campaign
26. Discuss key schemes to promote entrepreneurs
27. Discuss the relationship between entrepreneurship and risk appetite
28. Discuss the relationship between entrepreneurship and resilience
29. Describe the characteristics of a resilient entrepreneur
30. Discuss how to deal with failure

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14.5.1 Concept Introduction (Characteristic of an


Entrepreneur, types of firms / types of enterprises)
Entrepreneurs and Entrepreneurship
Anyone who is determined to start a business, no matter what the risk, is an entrepreneur. Entrepreneurs
run their own start-up, take responsibility for the financial risks and use creativity, innovation and vast
reserves of self-motivation to achieve success. They dream big and are determined to do whatever it takes
to turn their idea into a viable offering. The aim of an entrepreneur is to create an enterprise. The process of
creating this enterprise is known as entrepreneurship.

Importance of Entrepreneurship
Entrepreneurship is very important for the following reasons:
1. It results in the creation of new organizations
2. It brings creativity into the marketplace
3. It leads to improved standards of living
4. It helps develop the economy of a country
Characteristics of Entrepreneurs
All successful entrepreneurs have certain characteristics in common.
They are all:
• Extremely passionate about their work • Highly creative
• Confident in themselves • Visionaries
• Disciplined and dedicated • Open-minded
• Motivated and driven • Decisive
Entrepreneurs also have a tendency to:
• Have a high risk tolerance • Understand their offering and their market in detail
• Thoroughly plan everything • Ask for advice from experts when required
• Manage their money wisely • Know when to cut their losses
• Make their customers their priority

Examples of Famous Entrepreneurs


Some famous entrepreneurs are:
• Dhirubhai Ambani (Reliance) • Azim Premji (Wipro)
• Dr. Karsanbhai Patel (Nirma) • Anil Agarwal (Vedanta Resources)

Types of Enterprises
As an entrepreneur in India, you can own and run any of the following types of enterprises:
Sole Proprietorship

In a sole proprietorship, a single individual owns, manages and controls the enterprise. This type of business
is the easiest to form with respect to legal formalities. The business and the owner have no separate legal
existence. All profit belongs to the proprietor, as do all the losses the liability of the entrepreneur is unlimited.

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Partnership

A partnership firm is formed by two or more people. The owners of the enterprise are called partners. A
partnership deed must be signed by all the partners. The firm and its partners have no separate legal
existence. The profits are shared by the partners. With respect to losses, the liability of the partners is
unlimited. A firm has a limited life span and must be dissolved when any one of the partners dies, retires,
claims bankruptcy or goes insane.
Limited Liability Partnership (LLP)

In a Limited Liability Partnership or LLP, the partners of the firm enjoy perpetual existence as well as the
advantage of limited liability. Each partner’s liability is limited to their agreed contribution to the LLP. The
partnership and its partners have a separate legal existence.

Tips
• Learn from others’ failures.
• Be certain that this is what you want.
• Search for a problem to solve, rather than look for a problem to attach to your idea.

14.5.2 Leadership & Teamwork:


Leadership and Leaders
Leadership means setting an example for others to follow. Setting a good example means not asking
someone to do something that you wouldn’t willingly want to do yourself. Leadership is about
figuring out what to do in order to win as a team, and as a company.
Leaders believe in doing the right things. They also believe in helping others to do the right things.
An effective leader is someone who:

Ÿ Creates an inspiring vision of the future.


Ÿ Motivates and inspires his team to pursue that vision.

Leadership Qualities That All Entrepreneurs Need


Building a successful enterprise is only possible if the entrepreneur in charge possesses excellent leadership
qualities. Some critical leadership skills that every entrepreneur must have are:

1. Pragmatism: This means having the ability to highlight all obstacles and challenges, in order to resolve
issues and reduce risks.
2. Humility: This means admitting to mistakes often and early, and being quick to take responsibility for your
actions. Mistakes should be viewed as challenges to overcome, not opportunities to point blame.
3. Flexibility: It is critical for a good leader to be very flexible and quickly adapt to change. It is equally
critical to know when to adapt and when not to.
4. Authenticity: This means showing both, your strengths and your weaknesses. It means being human and
showing others that you are human.
5. Reinvention: This means refreshing or changing your leadership style when necessary. To do this, it’s
important to learn where your leadership gaps lie and find out what resources are required to close
them.
6. Awareness: This means taking the time to recognize how others view you. It means understanding how
your presence affects those around you.

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Benefits of Effective Leadership


Effective leadership results in numerous benefits. Great leadership leads to the leader successfully:
• Gaining the loyalty and commitment of the team members
• Motivating the team to work towards achieving the company’s goals and objectives
• Building morale and instilling confidence in the team members
• Fostering mutual understanding and team-spirit among team members
• Convincing team members about the need to change when a situation requires adaptability

Teamwork and Teams


Teamwork occurs when the people in a workplace combine their individual skills to pursue a common goal.
Effective teams are made up of individuals who work together to achieve this common goal. A great team is
one who holds themselves accountable for the end result.

Importance of Teamwork in Entrepreneurial Success


For an entrepreneurial leader, building an effective team is critical to the success of a venture. An
entrepreneur must ensure that the team he builds possesses certain crucial qualities, traits and
characteristics. An effective team is one which has:

1. Unity of purpose: All the team members should clearly understand and be equally committed to the
purpose, vision and goals of the team.

2. Great communication skills: Team members should have the ability to express their concerns, ask
questions and use diagrams, and charts to convey complex information.

3. The ability to collaborate: Every member should feel entitled to provide regular feedback on new ideas.

4. Initiative: The team should consist of proactive individuals. The members should have the enthusiasm to
come up with new ideas, improve existing ideas, and conduct their own research.

5. Visionary members: The team should have the ability to anticipate problems and act on these potential
problem before they turn into real problems.

6. Great adaptability skills: The team must believe that change is a positive force. Change should be seen
as the chance to improve and try new things.

7. Excellent organizational skills: The team should have the ability to develop standard work processes,
balance responsibilities, properly plan projects, and set in place methods to measure progress and ROI.

Tips
• Don’t get too attached to your original idea. Allow it to evolve and change.
• Be aware of your weaknesses and build a team that will complement your shortfalls.
• Hiring the right people is not enough. You need to promote or incentivize your most
talented people to keep them motivated.
• Earn your team’s respect.

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14.5.3 Communication Skills: Listening & Speaking:


The Importance of Listening Effectively
Listening is the ability to correctly receive and understand messages during the process of
communication. Listening is critical for effective communication. Without effective listening
skills, messages can easily be misunderstood. This results in a communication breakdown and
can lead to the sender and the receiver of the message becoming frustrated or irritated.
It’s very important to note that listening is not the same as hearing. Hearing just refers to
sounds that you hear. Listening is a whole lot more than that. To listen, one requires focus. It
means not only paying attention to the story, but also focusing on how the story is relayed,
the way language and voice is used, and even how the speaker uses their body language. The
ability to listen depends on how effectively one can perceive and understand both, verbal and
non-verbal cues.
How to Listen Effectively?
To listen effectively you should:
Ÿ Stop talking Ÿ Pay attention to the tone that is being used
Ÿ Stop interrupting Ÿ Pay attention to the speaker’s gestures, facial
Ÿ Focus completely on what is being said expressions and eye movements
Ÿ Nod and use encouraging words and gestures Ÿ Not try and rush the person
Ÿ Be open-minded Ÿ Not let the speaker’s mannerisms or habits irritate
Ÿ Think about the speaker’s perspective or distract you
Ÿ Be very, very patient

The Importance of Speaking Effectively


How successfully a message gets conveyed depends entirely on how effectively you are able
to get it through. An effective speaker is one who enunciates properly, pronounces words
correctly, chooses the right words and speaks at a pace that is easily understandable. Besides
this, the words spoken out loud need to match the gestures, tone and body language used.
What you say, and the tone in which you say it, results in numerous perceptions being formed.
A person who speaks hesitantly may be perceived as having low self-esteem or lacking in
knowledge of the discussed topic. Those with a quiet voice may very well be labelled as shy.
And those who speak in commanding tones with high levels of clarity, are usually considered to
b e ex t remely co nf id ent . T h is ma kes s p ea kin g a ver y crit ica l co m mu n icat io n s kill.

How to Speak Effectively?


To speak effectively you should:

Ÿ Incorporate body language in your speech like eye contact, smiling, nodding, gesturing etc.
Ÿ Build a draft of your speech before actually making your speech.
Ÿ Ensure that all your emotions and feelings are under control.
Ÿ Pronounce your words distinctly with the correct pitch and intensity. Your speech should be crystal clear
at all times.
Ÿ Use a pleasant and natural tone when speaking. Your audience should not feel like you are putting on an
accent or being unnatural in any way.
Ÿ Use precise and specific words to drive your message home. Ambiguity should be avoided at all costs.
Ÿ Ensure that your speech has a logical flow.
Ÿ Be brief. Don’t add any unnecessary information.
Ÿ Make a conscious effort to avoid irritating mannerisms like fidgeting, twitching etc.

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Ÿ Choose your words carefully and use simple words that the majority of the audience will have no difficulty
understanding.
Ÿ Use visual aids like slides or a whiteboard.
Ÿ Speak slowly so that your audience can easily understand what you’re saying. However, be
Ÿ careful not to speak too slowly because this can come across as stiff, unprepared or even condescending.
Ÿ Remember to pause at the right moments.

Tips
Ÿ If you’re finding it difficult to focus on what someone is saying, try repeating their words in your head.
Ÿ Always maintain eye contact with the person that you are communicating with, when speaking as well as
listening. This conveys and also encourages interest in the conversation.

14.5.4 Problem Solving & Negotiation Skills:What is a Problem?


As per The Concise Oxford Dictionary (1995), a problem is, “A doubtful or difficult matter requiring a solution”
All problems contain two elements:

1. Goals 2. Obstacles

The aim of problem solving is to recognize the obstacles and remove them in order to achieve the goals.

How to Solve Problems ?


Solving a problem requires a level of rational thinking. Here are some logical steps to follow
when faced with an issue:
Step 1: Identify the problem Step 2: Study the problem in detail
Step 3: List all possible solutions Step 4: Select the best solution
Step 5: Implement the chosen solution Step 6: Check that the problem has really been solved

Important Traits for Problem Solving


Highly developed problem solving skills are critical for both, business owners and their employees. The
following personality traits play a big role in how effectively problems are solved:
Ÿ Being open minded Ÿ Not panicking
Ÿ Asking the right questions Ÿ Having a positive attitude
Ÿ Being proactive Ÿ Focusing on the right problem
How to Assess for Problem Solving Skills?
As an entrepreneur, it would be a good idea to assess the level of problem solving skills of potential
candidates before hiring them. Some ways to assess this skill are through:

1. Application forms: Ask for proof of the candidate’s problem solving skills in the application form.
2. Psychometric tests: Give potential candidates logical reasoning and critical thinking tests
and see how they fare.
3. Interviews: Create hypothetical problematic situations or raise ethical questions and see how the
candidates respond.
4. Technical questions: Give candidates examples of real life problems and evaluate their
thought process.

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What is Negotiation?
Negotiation is a method used to settle differences. The aim of negotiation is to resolve differences through a
compromise or agreement while avoiding disputes. Without negotiation, conflicts are likely to lead to
resentment between people. Good negotiation skills help satisfy both parties and go a long way towards
developing strong relationships.
Why Negotiate?
Starting a business requires many, many negotiations. Some negotiations are small while others are critical
enough to make or break a startup. Negotiation also plays a big role inside the workplace. As an
entrepreneur, you need to know not only know how to negotiate yourself, but also how to train employees in
the art of negotiation.

How to Negotiate?
Take a look at some steps to help you negotiate:

Step 1: Pre-Negotiation Agree on where to meet to discuss the problem, decide who all will
Preparation be present and set a time limit for the discussion.
Step 2: Discuss the This involves asking questions, listening to the other side, putting
Problem your views forward and clarifying doubts.
Step 3: Clarify the Ensure that both parties want to solve the same problem and reach
Objective the same goal.
Step 4: Aim for a Try your best to be open minded when negotiating. Compromise
Win-Win Outcome and offer alternate solutions to reach an outcome where both
parties win.
Step 5: Clearly Define When an agreement has been reached, the details of the
the Agreement agreement should be crystal clear to both sides, with no scope for
misunderstandings.
Step 6: Implement the Agree on a course of action to set the solution in motion
Agreed Upon Solution

Tips
• Know exactly what you want before you work towards getting it
• Give more importance to listening and thinking, than speaking
• Focus on building a relationship rather than winning
• Remember that your people skills will affect the outcome
• Know when to walk away – sometimes reaching an agreement may not be possible

14.5.5 Business Opportunities Identification:


Entrepreneurs and Opportunities
“The entrepreneur always searches for change, responds to it and exploits it as an opportunity.”
Peter Drucker
The ability to identify business opportunities is an essential characteristic of an entrepreneur.
What is an Opportunity?
The word opportunity suggests a good chance or a favourable situation to do something offered
by circumstances.

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A business opportunity means a good or favourable change available to run a specific business in a given
environment, at a given point of time.
Common Questions Faced by Entrepreneurs
A critical question that all entrepreneurs face is how to go about finding the business opportunity
that is right for them.
Some common questions that entrepreneurs constantly think about are:
Ÿ Should the new enterprise introduce a new product or service based on an unmet need?
Ÿ Should the new enterprise select an existing product or service from one market and offer it in another
where it may not be available?
Ÿ Should the enterprise be based on a tried and tested formula that has worked elsewhere?

It is therefore extremely important that entrepreneurs must learn how to identify new and
existing business opportunities and evaluate their chances of success.

When is an Idea an Opportunity?


An idea is an opportunity when:

Ÿ It creates or adds value to a customer


Ÿ It solves a significant problem, removes a pain point or meets a demand
Ÿ Has a robust market and profit margin
Ÿ Is a good fit with the founder and management team at the right time and place

Factors to Consider When Looking for Opportunities


Consider the following when looking for business opportunities:
• Economic trends • Market trends
• Changes in funding • Changes in political support
• Changing relationships between vendors, • Shift in target audience
partners and suppliers
Ways to Identify New Business Opportunities
1. Identify Market Inefficiencies
When looking at a market, consider what inefficiencies are present in the market. Think
about ways to correct these inefficiencies.
2. Remove Key Hassles
Rather than create a new product or service, you can innovatively improve a product,
service or process.
3. Create Something New
Think about how you can create a new experience for customers, based on existing business
models.
4. Pick a Growing Sector/Industry
Research and find out which sectors or industries are growing and think about what
opportunities you can tap in the same.
5. Think About Product Differentiation
If you already have a product in mind, think about ways to set it apart from the existing ones.
Ways to Identify Business Opportunities Within Your Business
1. SWOT Analysis

An excellent way to identify opportunities inside your business is by creating a SWOT


analysis. The acronym SWOT stands for strengths, weaknesses, opportunities, and threats.
SWOT analysis framework:

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STRENGTH WEAKNESSES
What are your strengths? What are your weaknesses?
What unique capabilities do What do your competitors do
you posses? better than you?
What do you do better than
others?
What do others percieve
as your strengths? S W

OPPORTUNITIES O T THREATS
What Trends may positively Do you have solid financial
impact you? support?
What oppprtunities are What trends may negatively
available to you? impact you?

Fig.14.5.1. SWOT Analysis

Consider the following when looking for business opportunities:


By looking at yourself and your competitors using the SWOT framework, you can uncover opportunities that
you can exploit, as well as manage and eliminate threats that could derail your success.

2. Establishing Your USP


Establish your USP and position yourself as different from your competitors. Identify why
customers should buy from you and promote that reason.

Opportunity Analysis
Once you have identified an opportunity, you need to analyze it.
To analyze an opportunity, you must:
• Focus on the idea • Talk to industry leaders in the same space as the idea
• Focus on the market of the idea • Talk to players in the same space as the idea

Tips
• Remember, opportunities are situational. • Avoid the latest craze.
• Look for a proven track record. • Love your idea.

14.5.6 Entrepreneurship Support Eco - System:


Who is an Entrepreneur?
An entrepreneur is a person who:
• Does not work for an employee
• Runs a small enterprise
• Assumes all the risks and rewards of the enterprise, idea, good or service
Types of Entrepreneurs
There are four main types of entrepreneurs:
1. The Traditional Entrepreneur: This type of entrepreneur usually has some kind of skill –they can be a
carpenter, mechanic, cook etc. They have businesses that have been around for numerous years like
restaurants, shops and carpenters. Typically, they gain plenty of experience in a particular industry before
they begin their own business in a similar field.

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2. The Growth Potential Entrepreneur: The desire of this type of entrepreneur is to start an enterprise that
will grow, win many customers and make lots of money. Their ultimate aim is to eventually sell their
enterprise for a nice profit. Such entrepreneurs usually have a science or technical background.

3. The Project-Oriented Entrepreneur: This type of entrepreneur generally has a background in the Arts or
psychology. Their enterprises tend to be focus on something that they are very passionate about.

4. The Lifestyle Entrepreneur: This type of entrepreneur has usually worked as a teacher or a secretary.
They are more interested in selling something that people will enjoy, rather than making lots of money.

Characteristics of an Entrepreneur
Successful entrepreneurs have the following characteristics:
• They are highly motivated
• They are creative and persuasive
• They are mentally prepared to handle each and every task
• They have excellent business skills – they know how to evaluate their cash flow, sales and revenue
• They are willing to take great risks
• They are very proactive – this means they are willing to do the work themselves, rather
than wait for someone else to do it
• They have a vision – they are able to see the big picture
• They are flexible and open-minded
• They are good at making decisions

Entrepreneur Success Stories


Dhiru Bhai Ambani
Dhirubhai Ambani began his entrepreneurial career by selling “bhajias” to pilgrims in Mount Girnar on
weekends. At 16, he moved to Yemen where he worked as a gas-station attendant, and as a clerk in an oil
company. He returned to India with Rs. 50,000 and started a textile trading company. Reliance went on
tobecome the first Indian company to raise money in global markets and the first Indian company to feature
in Forbes 500 list.

Dr. Karsanbhai Patel


Karsanbhai Patel made detergent powder in the backyard of his house. He sold his product door-to-door and
offered a money back guarantee with every pack that was sold. He charged Rs. 3 per kg when the cheapest
detergent at that time was Rs.13 per kg. Dr. Patel eventually started Nirma which became a whole new
segment in the Indian domestic detergent market.

The Entrepreneurial Process


Let’s take a look at the stages of the entrepreneurial process.

Stage 1: Idea Generation. The entrepreneurial process begins with an idea that has been thought of by the
entrepreneur. The idea is a problem that has the potential to be solved.

Stage 2: Germination or Recognition. In this stage a possible solution to the identified problem is thought of.

Stage 3: Preparation or Rationalization. The problem is studied further and research is done to find out how
others have tried to solve the same problem.

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Stage 4: Incubation or Fantasizing. This stage involves creative thinking for the purpose of coming up with
more ideas. Less thought is given to the problem areas.

Stage 5: Feasibility Study: The next step is the creation of a feasibility study to determine if the idea will make
a profit and if it should be seen through.

Stage 6: Illumination or Realization. This is when all uncertain areas suddenly become clear. The entrepreneur
feels confident that his idea has merit.

Stage 7: Verification or Validation. In this final stage, the idea is verified to see if it works and if it is useful.

Take a look at the diagram below to get a better idea of this process.

Idea Germination
Generation (Recognition)

Preparation
(Rationalisation)

Incubation
(Fantasising)

Feasibility
Study

Illumination Varification
(Realisation) (Validation)

Introduction to the Entrepreneurship Ecosystem


The entrepreneurship support ecosystem signifies the collective and complete nature of entrepreneurship.
New companies emerge and flourish not only because of the courageous, visionary entrepreneurs who launch
them, but they thrive as they are set in an environment or ‘ecosystem’ made of private and public
participants. These players nurture and sustain the new ventures, facilitating the entrepreneurs’ efforts.
An entrepreneurship ecosystem comprises of the following six domains:

1. Favourable Culture: This includes elements such as tolerance of risk and errors, valuable
networking and positive social standing of the entrepreneur.
2. Facilitating Policies & Leadership: This includes regulatory framework incentives and
existence of public research institutes.
3. Financing Options: Angel financing, venture capitalists and micro loans would be good examples of this.
4. Human Capital: This refers to trained and untrained labour, entrepreneurs and entrepreneurship training
programmes, etc.
5. Conducive Markets for Products & Services: This refers to an existence or scope of existence of a market
for the product/service.
6. Institutional & Infrastructural Support: This includes legal and financing advisers, telecommunications,
digital and transportation infrastructure, and entrepreneurship networking programmes.

These domains indicate whether there is a strong entrepreneurship support ecosystem and
what actions should the government put in place to further encourage this ecosystem. The six
domains and their various elements have been graphically depicted.

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Leadership
Early Customers Government
• Unequivocal support • Institutions • Research institutes
• Early adopters for proof-of-concept
• Social legitimacy e.g. Investment, support
• Expertise in productizing
• Reference customer
• Open door for advocate
• Financial support • Venture-friendly
• First reviews • Entrepreneurship strategy e.g. for R&D, jump start funds legislation
• Distribution channels • urgency, crisis and challenge
Regulatory framework • e.g. Bankruptcy,
incentives contract enforcement, pro-
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Networks
e.g. Tax benifits perty rights, and labour
• Entrepreneure’s networks Policy
• Diaspora networks Financial Capital
• Multinational corporations • Micro-loans • Venture capital funds
Market Finance • Angel investors, fri- • Private equity
Labour ends and family • Public capital markets
• Zero-stage venture • Debt
• Skilled and unskilled
Entrepreneurship capital
• Serial entrepreneures

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• Later generation family Success Stories
Human • Visible successes
Educational Institutions Culture
• General degrees (professional and academic)
Capital • Wealth generation for founders
• Specific entrepreneurship training • International reputation
Supports Societal norms
Infrastructure
• Tolerance of risk, mistakes, failure
• Telecommunications • Innovation, creativity, experimentation
• Transportation & logistics • Social status of entrepreneur
• Energy • Wealth creation
• Zones, incubation centers, clusters Non-Government Institution • Ambition, drive, hunger
• Entrepreneurship • Conferences
Support Professions promotion in
• Legal non-profits
• Accounting • Business plan • Entrepreneur- fri-
• Investment bankers contests endly association
Fig.14.5.2 Entrepreneurship at a Glance
Employability & Entrepreneurship Skills

Every entrepreneurship support ecosystem is unique and all the elements of the ecosystem are
interdependent. Although every region’s entrepreneurship ecosystem can be broadly described by the above
features, each ecosystem is the result of the hundred elements interacting in highly complex and particular
ways.
Entrepreneurship ecosystems eventually become (largely) self-sustaining. When the six domains are resilient
enough, they are mutually beneficial. At this point, government involvement can and should be significantly
minimized. Public leaders do not need to invest a lot to sustain the ecosystem. It is imperative that the
entrepreneurship ecosystem incentives are formulated to be self-liquidating, hence focussing on sustain
ability of the environment.

Make in India Campaign


Every entrepreneur has certain needs. Some of their important needs are:

• To easily get loans


• To easily find investors
• To get tax exemptions
• To easily access resources and good infrastructure
• To enjoy a procedure that is free of hassles and is quick
• To be able to easily partner with other firms

The Make in India campaign, launched by Prime Minister Modi aims to satisfy all these needs of young,
aspiring entrepreneurs. Its objective is to:

• Make investment easy


• Support new ideas
• Enhance skill development
• Safeguard the ideas of entrepreneurs
• Create state-of-the-art facilities for manufacturing goods

Key Schemes to Promote Entrepreneurs


The government offers many schemes to support entrepreneurs. These schemes are run by various
Ministries/Departments of Government of India to support First Generation Entrepreneurs.Take a look at a few
key schemes to promote entrepreneurship:
Sl.Name of the Scheme
1.Pradhan Mantri MUDRA Yojana - Micro Units Development and Refinance Agency (MUDRA),
2.STAND UP INDIA
3.Prime Minister Employment Generation Programme (PMEGP)
4.International Cooperation
5.Performance and Credit Rating
6.Marketing Assistance Scheme
7.Reimbursement of Registration Fee for Bar Coding
8.Enable Participation of MSMEs in State/District level Trade Fairs and Provide Funding Support
9.Capital Subsidy Support on Credit for Technology up gradation
10.Credit Guarantee Fund for Micro and SmalI Enterprise (CGFMSE)
11.Reimbursement of Certification Fees for Acquiring ISO Standards
12.Agricultural Marketing
13.Small Agricultural Marketing
14.Mega Food Park
15.Adivasi Mahila Sashaktikaran Yojana

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1. Pradhan Mantri MUDRA Yojana, - Micro Units Development and Refinance Agency (MUDRA),
Description
Under the aegis support of Pradhan Mantri MUDRA Yojana, MUDRA has already created its initial
products/schemes. The interventions have been named 'Shishu', 'Kishor' and 'Tarun' to signify the stage of
growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a
reference point for the next phase of graduation/growth to look forward to:
a. Shishu: Covering loans upto Rs.50,000/-
b. Kishor: Covering loans above Rs. 50,000/- and upto Rs.5 lakh
c. Tarun: Covering loans above Rs. 5 lakh to Rs.10 lakh
Who can apply?
Any Indian citizen who has a business plan for a non-farm sector income generating activity such as
manufacturing, processing, trading or service sector and whose credit need is less than Rs.10 lakh can
approach either a Bank, MFI, or NBFC for availing of MUDRA loans under Pradhan Mantri Mudra Yojana
(PMMY).

2. Stand Up India
Description
The objective of the Standup India scheme is to facilitate bank loans between Rs.10 lakh and Rs.1 crore to at
least one Schedule Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank
branch for setting up a Greenfield enterprise. This enterprise may be in manufacturing, services or the
trading sector. In case of non-Individual enterprises at least 51% of the shareholding and controlling stake
should be held be either an SC/ST or Woman Entrepreneur.
Who can apply?
ST, SC &Women

3. Prime Minister Employment Generation Programme (PMEGP)


Description
The Scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the
National level. At the State level, the Scheme is implemented through State KVIC Directorates, State Khadi
and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government
subsidy under the Scheme is routed. by KVIC through identified banks for eventual distribution to the
beneficiaries/entrepreneurs in their bank accounts.

Nature of assistance
The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under
business/service sector is Rs.10 lakh. Levels of funding under PMEGP

Categories of beneficiaries under Beneficiary's Rate of Subsidy


PMEGP contribution (of project cost)
(of project cost)

Area (location of project/unit) Urban Rural

General Category 10% 15%


25%

Special (including SC / ST / OBC / 05% 25%


Minorities / Women, Ex- 35%
servicemen, Physically
handicapped, NER, Hill and Border
areas, etc.

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The balance amount of the total project cost will be provided by Banks as term loan as well as working capital.
Who can apply?
Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the
manufacturing sector and above Rs.5 lakh in the business/service sector. Only new projects are considered
for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not
availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860;
Production Co-operative Societies, and Charitable Trusts are also eligible. Existing Units (under PMRY, REGP
or any other scheme of Government of India or State Government) and the units that have already availed
Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
4. International Cooperation
Description
The Scheme would cover the following activities:
a. Deputation of MSME business delegations to other countries for exploring new areas of technology
infusion/upgradation, facilitating joint ventures, improving market of MSMEs products, foreign
collaborations, etc.
b. Participation by Indian MSMEs in international exhibitions, trade fairs and buyer-seller meets in foreign
countries as well as in India, in which there is international participation.
c. Holding international conferences and seminars on topics and themes of interest to the MSME.
Nature of assistance
IC Scheme provides financial assistance towards the airfare and space rent of entrepreneurs. Assistance is
provided on the basis of size and the type of the enterprise.
Who can apply?
a. State/Central Government Organisations;
b. Industry/Enterprise Associations; and
c. Registered Societies/Trusts and Organisations associated with the promotion and development of
MSMEs
5. Performance and Credit Rating for Micro and Small Enterprises
Description
The objective of the Scheme is to create awareness amongst micro & small enterprises about the strengths
and weaknesses of their operations and also their credit worthiness.
Nature of assistance

Turn Over Fee to be reimbursed by Ministry of MSME

Up to Rs.50 lacs 75% of the fee charged by the rating agency subject
to a ceiling Rs.15,000/-

Above Rs.50 lacs to Rs.200 75% of the fee charged by the rating agency subject
lacs to a ceiling of Rs.30,0001-

Above Rs.200 lacs 75% of the fee charged by the rating agency subject

Who can apply?


Any enterprise registered in India as a micro or small enterprise is eligible to apply.
6. Marketing Assistance Scheme
Description
The assistance is provided for the following activities:
a. Organizing exhibitions abroad and participation in international exhibitions/trade fairs
b. Co-sponsoring of exhibitions organized by other organisations/industry associations/agencies
c. Organizing buyer-seller meets, intensive campaigns and marketing promotion events

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Nature of assistance
Financial assistance of up to 95% of the airfare and space rent of entrepreneurs. Assistance is provided on the
basis of size and the type of the enterprise. Financial assistance for co-sponsoring would be limited to 40% of
the net expenditure, subject to maximum amount of Rs.5 lakh.
Who can apply?
MSMEs, Industry Associations and other organizations related to MSME sector.
7. Reimbursement of Registration Fee for Bar Coding
Description
The financial assistance is provided towards 75% reimbursement of only one-time registration fee and 75%
of annual recurring fee for first three years paid by MSEs to GS1 India for using bar coding.

Nature of assistance
Funding support for reimbursement of 75% of one time and recurring bar code registration fees.
Who can apply?
All MSMEs with EM registration.
8. Enabling Participation of MSMEs in State/District Level Trade Fairs and Provide Funding Support
Description
Provide marketing platform to manufacturing MSMEs by enabling their participation in state/district
level exhibitions being organized by state/district authorities/associations.

Nature of assistance
1. Free registration for participating in trade fairs
Note: The selection of participants would be done by the MSME-DIs post the submission of application.
2. Reimbursement of 50% of to and fro actual fare by shortest distance/direct train (limited
to AC II tier class) from the nearest railway station/bus fare to the place of exhibition and 50% space
rental charges for MSMEs (General category entrepreneurs).
3. For Women/SC/ST entrepreneurs & entrepreneurs from North Eastern Region Govt. of
India will reimburse 80% of items listed above in Point (2).
Note: The total reimbursement will be max. Rs.30,000/- per unit for the SC/ST/Women/Physically
Handicapped entrepreneurs, while for the other units the max. limit will be Rs.20,000/- per person per
MSME unit.
Note: The participant is required to submit follow-up proofs post attending the event to claim
reimbursement. The proofs can be submitted after logging in online under the section "My Applications" or
directly contacting a DI office.
Who can apply?
All MSMEs with EM registration.

9. Capital Subsidy Support on Credit for Technology Upgradation


Description
MSMEs can get a capital subsidy (~15%) on credit availed for technology upgradation.
Nature of assistance
Financial assistance for availing credit and loan.
Who can apply?
1. Banks and financial institutions can apply to DC-MSME for availing support.
2. MSMEs need to directly contact the respective banks for getting credit and capital
subsidy.
How to apply?
If you are a financial institution, click on the "Apply Now" button or else you can also directly contact the
Office of DC-MSME. You can view the contact details of Office of DC-MSME. If you are an MSME, directly
contact the respective banks/financial institutions as listed in the scheme guidelines.

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10. Provision of Collateral Free Credit for MSMEs


Description
Banks and financial institutions are provided funding assistance under this scheme so that they can in turn
lend collateral free credit to MSMEs.
Nature of assistance
Funding support to banks and financial institutions for lending collateral-free credit to MSMEs.
Who can apply?
Banks and financial institutions can apply to office of DC-MSME/MSME-DIs for availing support. MSMEs
need to directly contact the respective banks for getting credit.

11. Reimbursement of certification fees for acquiring ISO standards


ISO 9000/ISO 14001 Certification Reimbursement.
Description
The GoI assistance will be provided for one-time reimbursement of expenditure to such MSME
manufacturing units which acquire ISO 18000/ISO 22000/ISO 27000 certification.
Nature of assistance
Reimbursement of expenditure incurred on acquiring ISO standards.
Who can apply?
MSMEs with EM registration.

12. Agricultural Marketing


Description
A capital investment subsidy for construction/renovation of rural godowns.
Creation of scientific storage capacity and prevention of distress sale.
Nature of assistance
Subsidy @ 25% to farmers, 15% of project cost to companies.
Who can apply?
NGOs, SHGs, companies, co-operatives.

13. Small Agricultural Marketing


Description
Business development description provides venture capital assistance in the form of equity, and arranges
training and visits of agri-preneurs
Farmers' Agriculture Business Consortium
Business development description provides venture capital assistance in the form of equity, and arranges
training and visits of agri-preneurs.
Nature of assistance
Financial assistance with a ceiling of Rs.5 lakh.
Who can apply?
Individuals, farmers, producer groups, partnership/propriety firms, SGHs, agri-preneurs, etc.

14. Mega Food Park


Description
Mechanism to link agricultural production and market to maximize value addition, enhance farmers income,
create rural employment.
Nature of assistance
One-time capital grant of 50% of project cost with a limit of Rs.50 crore.
Who can apply?
Farmers, farmer groups, SHGs.

15. Adivasi Mahila Sashaktikaran Yojana


Description

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Concessional scheme for the economic development of ST women.


Nature of assistance
Term loan at concessional rates upto 90% of cost of scheme.
Who can apply?
Scheduled Tribes Women.

Tips
• Research the existing market, network with other entrepreneurs, venture capitalists, angel investors, and
thoroughly review the policies in place to enable your entrepreneurship.
• Failure is a stepping stone and not the end of the road. Review yours and your peers’ errors and correct
them in your future venture.
• Be proactive in your ecosystem. Identify the key features of your ecosystem and enrich them to ensure
self-sustainability of your entrepreneurship support ecosystem.

14.5.7 Risk Appetite & Resilience:


Entrepreneurship and Risk
Entrepreneurs are inherently risk takers. They are path-makers not path-takers. Unlike a normal, cautious
person, an entrepreneur would not think twice about quitting his job (his sole income) and taking a risk on
himself and his idea.
An entrepreneur is aware that while pursuing his dreams, assumptions can be proven wrong and unforeseen
events may arise. He knows that after dealing with numerous problems, success is still not guaranteed.
Entrepreneurship is synonymous with the ability to take risks. This ability, called risk-appetite, is an
entrepreneurial trait that is partly genetic and partly acquired.

What is Risk Appetite?


Risk appetite is defined as the extent to which a company is equipped to take risk, in order to achieve its
objectives. Essentially, it refers to the balance, struck by the company, between possible profits and the
hazards caused by changes in the environment (economic ecosystem, policies, etc.). Taking on more risk may
lead to higher rewards but have a high probability of losses as well. However, being too conservative may go
against the company as it can miss out on good opportunities to grow and reach their objectives. The levels of
risk appetite can be broadly categorized as “low”, “medium” and “high.” The company’s entrepreneur(s) have
to evaluate all potential alternatives and select the option most likely to succeed. Companies have varying
levels of risk appetites for different objectives.
The levels depend on:
• The type of industry
• Market pressures
• Company objectives
For example, a startup with a revolutionary concept will have a very high risk appetite. The startup can afford
short term failures before it achieves longer term success. This type of appetite will not remain constant and
will be adjusted to account for the present circumstances of the company.
Risk Appetite Statement
Companies have to define and articulate their risk appetite in sync with decisions made about their objectives
and opportunities. The point of having a risk appetite statement is to have a framework that clearly states the
acceptance and management of risk in business. It sets risk taking limits within the company. The risk appetite
statement should convey the following:

• The nature of risks the business faces.


• Which risks the company is comfortable taking on and which risks are unacceptable.

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• The nature of risks the business faces.


• Which risks the company is comfortable taking on and which risks are unacceptable.
• How much risk to accept in all the risk categories.
• The desired tradeoff between risk and reward.
• Measures of risk and methods of examining and regulating risk exposures.
Entrepreneurship and Resilience
Entrepreneurs are characterized by a set of qualities known as resilience. These qualities play an especially
large role in the early stages of developing an enterprise. Risk resilience is an extremely valuable
characteristic as it is believed to protect entrepreneurs against the threat of challenges and changes in the
business environment.

What is Entrepreneurial Resilience?


Resilience is used to describe individuals who have the ability to overcome setbacks related
to their life and career aspirations. A resilient person is someone who is capable of easily
and quickly recovering from setbacks. For the entrepreneur, resilience is a critical trait.
Entrepreneurial resilience can be enhanced in the following ways:

• By developing a professional network of coaches and mentors


• By accepting that change is a part of life
• By viewing obstacles as something that can be overcome
Characteristics of a Resilient Entrepreneur
The characteristics required to make an entrepreneur resilient enough to go the whole way in their business
enterprise are:
• A strong internal sense of control • Skill to learn from setbacks
• Ability to diversify and expand • Cash-flow conscious habits
• Strong social connections • Ability to look at the bigger picture
• Survivor attitude • Attention to detail

Tips
• Cultivate a great network of clients, suppliers, peers, friends and family. This will not only
help you promote your business, but will also help you learn, identify new opportunities
and stay tuned to changes in the market.
• Don’t dwell on setbacks. Focus on what the you need to do next to get moving again.
• While you should try and curtail expenses, ensure that it is not at the cost of your growth.

14.5.8 Success & Failures: Understanding


Successes and Failures in Entrepreneurship
Shyam is a famous entrepreneur, known for his success story. But what most people don’t know, is that
Shyam failed numerous times before his enterprise became a success. Read his interview to get an idea of
what entrepreneurship is really about, straight from an entrepreneur
who has both, failed and succeeded.
Interviewer: Shyam, I have heard that entrepreneurs are great risk-takers who are never afraid of failing. Is
this true?
Shyam: Ha ha, no of course it’s not true! Most people believe that entrepreneurs need to be fearlessly
enthusiastic. But the truth is, fear is a very normal and valid human reaction, especially when you are
planning to start your own business! In fact, my biggest fear was the fear of failing. The reality is,
entrepreneurs fail as much as they succeed. The trick is to not allow the fear of failing to stop you from going
ahead with your plans. Remember, failures are lessons for future success!

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Interviewer : What, according to you, is the reason that entrepreneurs fail?

Shyam: Well, there is no one single reason why entrepreneurs fail. An entrepreneur can fail due to numerous
reasons. You could fail because you have allowed your fear of failure to defeat you. You could fail because you
are unwilling to delegate (distribute) work. As the saying goes, “You can do anything, but not everything!” You
could fail because you gave up too easily – maybe you were not persistent enough. You could fail because you
were focusing your energy on small, insignificant tasks and ignoring the tasks that were most important.
Other reasons for failing are partnering with the wrong people, not being able to sell your product to the right
customers at the right time at the right price… and many more reasons!

Interviewer: As an entrepreneur, how do you feel failure should be looked at?

Shyam: I believe we should all look at failure as an asset, rather than as something negative. The way I see it,
if you have an idea, you should try to make it work, even if there is a chance that you will fail. That’s because
not trying is failure right there, anyway! And failure is not the worst thing that can happen. I think having
regrets because of not trying, and wondering ‘what if’ is far worse than trying and actually failing.

Interviewer: How did you feel when you failed for the first time?

Shyam: I was completely heartbroken! It was a very painful experience. But the good news is, you do recover
from the failure. And with every subsequent failure, the recovery process gets a lot easier. That’s because you
start to see each failure more as a lesson that will eventually help you succeed, rather than as an obstacle that
you cannot overcome. You will start to realize that failure has many benefits.

Interviewer: Can you tell us about some of the benefits of failing?

Shyam: One of the benefits that I have experienced personally from failing is that the failure made me see
things in a new light. It gave me answers that I didn’t have before. Failure can make you a lot stronger. It also
helps keep your ego in control.

Interviewer: What advice would you give entrepreneurs who are about to start their own enterprises?

Shyam: I would tell them to do their research and ensure that their product is something that is actually
wanted by customers. I’d tell them to pick their partners and employees very wisely and cautiously. I’d tell
them that it’s very important to be aggressive – push and market your product as aggressively as possible. I
would warn them that starting an enterprise is veryexpensive and that they should be prepared for a situation
where they run out of money.I would tell them to create long term goals and put a plan in action to achieve
that goal. I would tell them to build a product that is truly unique. Be very careful and ensure that you are not
copying another startup. Lastly, I’d tell them that it’s very important that they find the right investors.

Interviewer: That’s some really helpful advice, Shyam! I’m sure this will help all entrepreneurs
to be more prepared before they begin their journey! Thank you for all your insight!

Tips
• Remember that nothing is impossible.
• Identify your mission and your purpose before you start.
• Plan your next steps – don’t make decisions hastily.

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14.6: Preparing to be an Entrepreneur


Unit Objectives
At the end of this unit, you will be able to:
1. Discuss how market research is carried out
2. Describe the 4 Ps of marketing
3. Discuss the importance of idea generation
4. Recall basic business terminology
5. Discuss the need for CRM
6. Discuss the benefits of CRM
7. Discuss the need for networking
8. Discuss the benefits of networking
9. Discuss the importance of setting goals
10. Differentiate between short-term, medium-term and long-term goals
11. Discuss how to write a business plan
12. Explain the financial planning process
13. Discuss ways to manage your risk
14. Describe the procedure and formalities for applying for bank finance
15. Discuss how to manage your own enterprise
16. List important questions that every entrepreneur should ask before starting an enterprise

14.6.1 Market Study / The 4 Ps of Marketing /


Importance of an IDEA: Understanding Market
Research
Market research is the process of gathering, analyzing and interpreting market information on
a product or service that is being sold in that market. It also includes information on:
• Past, present and prospective customers
• Customer characteristics and spending habits
• The location and needs of the target market
• The overall industry
• Relevant competitors

Market research involves two types of data:


• Primary information. This is research collected by yourself or by someone hired by you.
• Secondary information. This is research that already exists and is out there for you to find
and use.

Primary research
Primary research can be of two types:
• Exploratory: This is open-ended and usually involves detailed, unstructured interviews.
• Specific: This is precise and involves structured, formal interviews. Conducting specific

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Secondary research

Secondary research uses outside information. Some common secondary sources are:
• Public sources: These are usually free and have a lot of good information. Examples are government
departments, business departments of public libraries etc.
• Commercial sources: These offer valuable information but usually require a fee to be paid. Examples are
research and trade associations, banks and other financial institutions etc.
• Educational institutions: These offer a wealth of information. Examples are colleges, universities,
technical institutes etc.
The 4 Ps of Marketing
The 4 Ps of marketing are Product, Price, Promotion and Place. Let’s look at each of these 4 Ps in detail.
Product
A product can be:
• A tangible good • An intangible service
Whatever your product is, it is critical that you have a clear understanding of what you are offering, and what
its unique characteristics are, before you begin with the marketing process.
Some questions to ask yourself are:
• What does the customer want from the • How will customers use it?
product/service? • What should it be called?
• What needs does it satisfy? • How is it different from similar products?
• Are there any more features that can be • How much will it cost to produce?
added? • Can it be sold at a profit?
• Does it have any expensive and unnecessary
features?

Price
Once all the elements of Product have been established, the Price factor needs to be considered.
The Price of a Product will depend on several factors such as profit margins, supply, demand
and the marketing strategy.
Some questions to ask yourself are:
• What is the value of the product/service to • Is the customer price sensitive?
customers? • Should discounts be offered?
• Do local products/services have established • How is your price compared to that of your
price points? competitors?
Promotion
Once you are certain about your Product and your Price, the next step is to look at ways to promote it. Some
key elements of promotion are advertising, public relations, social media marketing, email marketing, search
engine marketing, video marketing and more.
Some questions to ask yourself are:
• Where should you promote your product or • When would be the best time to promote
service? your product?
• What is the best medium to use to reach your • How are your competitors promoting their
target audience? products?
Place
According to most marketers, the basis of marketing is about offering the right product, at the right price, at
the right place, at the right time. For this reason, selecting the best possible location is critical for converting
prospective clients into actual clients.

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Some questions to ask yourself are:


• Will your product or service be looked for in a • Where are your competitors offering their
physical store, online or both? products or services?
• What should you do to access the most • Should you follow in your competitors’
appropriate distribution channels? footsteps?
• Will you require a sales force? • Should you do something different from your
competitors?

Importance of an IDEA
Some questions to ask yourself are:
Ideas are the foundation of progress. An idea can be small or ground-breaking, easy to accomplish or
extremely complicated to implement. Whatever the case, the fact that it is an idea gives it merit. Without
ideas, nothing is possible. Most people are afraid to speak out their ideas, out for fear of being ridiculed.
However, if are an entrepreneur and want to remain competitive and innovative, you need to bring your ideas
out into the light.
Some ways to do this are by:

• Establishing a culture of brainstorming where you invite all interested parties to contribute
• Discussing ideas out loud so that people can add their ideas, views, opinions to them
• Being open minded and not limiting your ideas, even if the idea who have seems ridiculous
• Not discarding ideas that you don’t work on immediately, but instead making a note of
them and shelving them so they can be revisited at a later date

Tips
• Keep in mind that good ideas do not always have to be unique.
• Remember that timing plays a huge role in determining the success of your idea.
• Situations and circumstances will always change, so be flexible and adapt your idea
accordingly.

14.6.2 Business Entity Concepts:


Basic Business Terminology
If your aim is to start and run a business, it is crucial that you have a good understanding of
basic business terms. Every entrepreneur should be well versed in the following terms:
• Accounting: A systematic method of recording and reporting financial transactions.
• Accounts payable: Money owed by a company to its creditors.
• Accounts Receivable: The amount a company is owed by its clients.
• Assets: The value of everything a company owns and uses to conduct its business.
• Balance Sheet: A snapshot of a company’s assets, liabilities and owner’s equity at a given moment.
• Bottom Line: The total amount a business has earned or lost at the end of a month.
• Business: An organization that operates with the aim of making a profit.
• Business to Business (B2B): A business that sells goods or services to another business.
• Business to Consumer (B2C): A business that sells goods or services directly to the end user.
• Capital: The money a business has in its accounts, assets and investments. The two main types of
capital are debt and equity.
• Cash Flow: The overall movement of funds through a business each month, including income and
expenses.
• Cash Flow Statement: A statement showing the money that entered and exited a business during a
specific period of time.
• Contract: A formal agreement to do work for pay.

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• Contract: A formal agreement to do work for pay.


• Depreciation: The degrading value of an asset over time.
• Expense: The costs that a business incurs through its operations.
• Finance: The management and allocation of money and other assets.
• Financial Report: A comprehensive account of a business’ transactions and expenses.
• Fixed Cost: A one-time expense.
• Income Statement (Profit and Loss Statement): Shows the profitability of a business during
a period of time.
• Liabilities: The value of what a business owes to someone else.
• Marketing: The process of promoting, selling and distributing a product or service.
• Net Income/Profit: Revenues minus expenses.
• Net Worth: The total value of a business.
• Payback Period: The amount of time it takes to recover the initial investment of a business.
• Profit Margin: The ratio of profit, divided by revenue, displayed as a percentage.
• Return on Investment (ROI): The amount of money a business gets as return from an
investment.
• Revenue: The total amount of income before expenses are subtracted.
• Sales Prospect: A potential customer.
• Supplier: A provider of supplies to a business.
• Target Market: A specific group of customers at which a company's products and services are aimed.
• Valuation: An estimate of the overall worth of the business.
• Variable Cost: Expenses that change in proportion to the activity of a business.
• Working Capital: Calculated as current assets minus current liabilities.
• Business Transactions: There are three types of business transactions. These are:
¡ Simple Transactions – Usually a single transaction between a vendor and a customer. For example:
Buying a cup of coffee.
¡ Complex Transactions – These transactions go through a number of events before they can be
completed. For example: Buying a house.
¡ Ongoing transactions – These transactions usually require a contract. For example: Contract with a
vendor.
Basic Accounting Formulas
Take a look some important accounting formulas that every entrepreneur needs to know.
1. The Accounting Equation: This is value of everything a company owns and uses to conduct its business.
Formula: Assets = Liability + Owner's Equity

2. Net Income: This is the profit of the company.


Formula: Net Income = Revenues – Expenses

3. Break-Even Point: This is the point at which the company will not make a profit or a loss. The total cost
and total revenues are equal.
Formula: Break-Even = Fixed Costs/Sales Price – Variable Cost per Unit

4. Cash Ratio: This tells us about the liquidity of a company.


Formula: Cash Ratio = Cash/Current Liabilities

5. Profit Margin: This is shown as a percentage. It shows what percentage of sales are left over after all the
expenses are paid by the business.
Formula: Profit Margin = Net Income/Sales

6. Debt-to-Equity Ratio: This ratio shows how much equity and debt a company is using to finance its assets,
and whether the shareholder equity can fulfill obligations to creditors if the business starts making a loss.
Formula: Debt-to-Equity Ratio = Total Liabilities/Total Equity

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7. Cost of Goods Sold: This is the total of all costs used to create a product or service, which has been sold.
Formula: Cost of Goods Sold = Cost of Materials/Inventory – Cost of Outputs

8. Return on Investment (ROI): This is usually shown as a percentage. It calculates the profits of an
investment as a percentage of the original cost.
Formula: ROI = Net Profit/Total Investment * 100

9. Simple Interest: This is money you can earn by initially investing some money (the principal).
Formula:
A = P(1 + rt); R = r * 100
Where:
A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest per year in decimal; r = R/100
t = Time Period involved in months or years

10. Annual Compound Interest: The calculates the addition of interest to the principal sum of a loan or
deposit.
Formula:
A = P (1 + r/n) ^ nt:
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

14.6.3 CRM & Networking: What is CRM?


CRM stands for Customer Relationship Management. Originally the expression Customer Relationship
Management meant managing one’s relationship with customers. However, today it refers to IT systems and
software designed to help companies manage their relationships.

The Need for CRM


The better a company can manage its relationships with its customers, the higher the chances of the
company’s success. For any entrepreneur, the ability to successfully retain existing customers and expand the
enterprise is paramount. This is why IT systems that focus on addressing the problems of dealing with
customers on a daily basis are becoming more and more in demand.
Customer needs change over time, and technology can make it easier to understand what customers really
want. This insight helps companies to be more responsive to the needs of their customers. It enables them to
modify their business operations when required, so that their customers are always served in the best
manner possible. Simply put, CRM helps companies recognize the value of their clients and enables them to
capitalize on improved customer relations.

Benefits of CRM
CRM has a number of important benefits:
• It helps improve relations with existing customers which can lead to:
¡ Increased sales
¡ Identification of customer needs
¡ Cross-selling of products
• It results in better marketing of one’s products or services

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• It results in better marketing of one’s products or services


• It enhances customer satisfaction and retention
• It improves profitability by identifying and focusing on the most profitable customers
What is Networking?
In business, networking means leveraging your business and personal connections in order to bring in a
regular supply of new business. This marketing method is effective as well as low cost. It is a great way to
develop sales opportunities and contacts. Networking can be based on referrals and introductions, or can
take place via phone, email, and social and business networking websites.

The Need for Networking


Networking is an essential personal skill for business people, but it is even more important for entrepreneurs.
The process of networking has its roots in relationship building. Networking results in greater communication
and a stronger presence in the entrepreneurial ecosystem. This helps build strong relationships with other
entrepreneurs.
Business networking events held across the globe play a huge role in connecting like-minded entrepreneurs
who share the same fundamental beliefs in communication, exchanging ideas and converting ideas into
realities. Such networking events also play a crucial role in connecting entrepreneurs with potential investors.
Entrepreneurs may have vastly different experiences and backgrounds but they all have a common goal in
mind – they all seek connection, inspiration, advice, opportunities and mentors. Networking offers them a
platform to do just that.
Benefits of Networking
Networking offers numerous benefits for entrepreneurs. Some of the major benefits are:
• Getting high quality leads • Meeting positive and enthusiastic people
• Increased business opportunities • Increased self-confidence
• Good source of relevant connections • Satisfaction from helping others
• Advice from like-minded entrepreneurs • Building strong and lasting friendships
• Gaining visibility and raising your profile

Tips
• Use social media interactions to identify needs and gather feedback.
• When networking, ask open-ended questions rather than yes/no type questions.

14.6.4 Business Plan: Why Set Goals?


Setting goals is important because it gives you long-term vision and short-term motivation. Goals can be short
term, medium term and long term.
Short-Term Goals
• These are specific goals for the immediate future.
Example: Repairing a machine that has failed.
Medium-Term Goals
• These goals are built on your short term goals.
• They do not need to be as specific as your short term goals.
Example: Arranging for a service contract to ensure that your machines don’t fail again.
Long-Term Goals
These goals require time and planning.
They usually take a year or more to achieve.
Example: Planning your expenses so you can buy new machinery

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Why Create a Business Plan?


A business plan is a tool for understanding how your business is put together. It can be used to monitor
progress, foster accountable and control the fate of the business. It usually offers a 3-5 year projection and
outlines the plan that the company intends to follow to grow its revenues. A business plan is also a very
important tool for getting the interest of key employees or future investors.
A business plan typically comprises of eight elements.

Elements of a Business Plan


Executive Summary
The executive summary follows the title page. The summary should clearly state your desires as the business
owner in a short and businesslike way. It is an overview of your business and your plans. Ideally this should
not be more than 1-2 pages.
Your Executive Summary should include:
• The Mission Statement: Explain what your business is all about.
Example: Nike’s Mission Statement
Nike’s mission statement is “To bring inspiration and innovation to every athlete in the world.”
• Company Information: Provide information like when your business was formed, the names and roles
of the founders, the number of employees, your business location(s) etc.
• Growth Highlights: Mention examples of company growth. Use graphs and charts where possible.
• Your Products/Services: Describe the products or services provided.
• Financial Information: Provide details on current bank and investors.
• Summarize future plans: Describe where you see your business in the future.

Business Description
The second section of your business plan needs to provide a detailed review of the different elements of your
business. This will help potential investors to correctly understand your business goal and the uniqueness of
your offering.
Your Business Description should include:
• A description of the nature of your business
• The market needs that you are aiming to satisfy
• The ways in which your products and services meet these needs
• The specific consumers and organizations that you intend to serve
• Your specific competitive advantages

Market Analysis
The market analysis section usually follows the business description. The aim of this section is to showcase
your industry and market knowledge. This is also the section where you should lay down your research
findings and conclusions.
Your Market Analysis should include:
• Your industry description and outlook • The amount of market share you want to
• Information on your target market capture
• The needs and demographics of your target • Your pricing structure
audience • Your competitive analysis
• The size of your target market • Any regulatory requirements
Organization & Management
This section should come immediately after the Market Analysis.
Your Organization & Management section should include:
• Your company’s organizational structure • Detailed descriptions of each
• Details of your company’s ownership division/department and its function
• Details of your management team • The salary and benefits package that you offer
• Qualifications of your board of directors your people

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Service or Product Line


The next section is the service or product line section. This is where you describe your service or product, and
stress on their benefits to potential and current customers. Explain in detail why your product of choice will
fulfill the needs of your target audience.
Your Service or Product Line section should include:
• A description of your product/service
• A description of your product or service’s life cycle
• A list of any copyright or patent filings
• A description of any R&D activities that you are involved in or planning

Marketing & Sales


Once the Service or Product Line section of your plan has been completed, you should start on the description
of the marketing and sales management strategy for your business.
Your Marketing section should include the following strategies:
• Market penetration strategy: This strategy focuses on selling your existing products or services in
existing markets, in order to increase your market share.
• Growth strategy: This strategy focuses on increasing the amount of market share, even if it reduces
earnings in the short-term.
• Channels of distribution strategy: These can be wholesalers, retailers, distributers and even the
internet.
• Communication strategy: These can be written strategies (e-mail, text, chat), oral strategies (phone
calls, video chats, face-to-face conversations), non-verbal strategies (body language, facial expressions,
tone of voice) and visual strategies (signs, webpages, illustrations).

Your Sales section should include the following information:


• A salesforce strategy: This strategy focuses on increasing the revenue of the enterprise.
• A breakdown of your sales activities: This means detailing out how you intend to sell your products
or services – will you sell it offline or online, how many units do you intend to sell, what price do you
plan to sell each unit at, etc.
Funding Request
This section is specifically for those who require funding for their venture.
The Funding Request section should include the following information:
• How much funding you currently require.
• How much funding you will require over the next five years. This will depend on your long-term goals.
• The type of funding you want and how you plan to use it. Do you want funding that can be used only
for a specific purpose, or funding that can be used for any kind of requirement?
• Strategic plans for the future. This will involve detailing out your long-term plans – what these plans
are and how much money you will require to put these plans in motions.
• Historical and prospective financial information. This can be done by creating and maintaining all your
financial records, right from the moment your enterprise started, to the present day. Documents
required for this are your balance sheet which contains details of your company’s assets and liabilities,
your income statement which lists your company’s revenues, expenses and net income for the year,
your tax returns (usually for the last three years) and your cash flow budget which lists the cash that
came in, the cash that went out and states whether you had a cash deficit (negative balance) or
surplus (positive balance) at the end of each month.

Financial Planning
Before you begin building your enterprise, you need to plan your finances. Take a look at the steps for
financial planning:
Step 1: Create a financial plan. This should include your goals, strategies and timelines for
accomplishing these goals.

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Step 2: Organize all your important financial documents. Maintain a file to hold your investment
details, bank statements, tax papers, credit card bills, insurance papers and any other financial
records.

Step 3: Calculate your net worth. This means figure out what you own (assets like your house,
bank accounts, investments etc.), and then subtract what you owe (liabilities like loans, pending
credit card amounts etc.) the amount you are left with is your net worth.

Step 4: Make a spending plan. This means write down in detail where your money will come
from, and where it will go.

Step 5: Build an emergency fund. A good emergency fund contains enough money to cover at
least 6 months’ worth of expenses.

Step 6: Set up your insurance. Insurance provides long term financial security and protects you
against risk.

Risk Management
As an entrepreneur, it is critical that you evaluate the risks involved with the type of enterprise that you want
to start, before you begin setting up your company. Once you have identified potential risks, you can take
steps to reduce them. Some ways to manage risks are:
• Research similar business and find out about their risks and how they were minimized.
• Evaluate current market trends and find out if similar products or services that launched a while ago
are still being well received by the public.
• Think about whether you really have the required expertise to launch your product or service.
• Examine your finances and see if you have enough income to start your enterprise.
• Be aware of the current state of the economy, consider how the economy may change over time, and
think about how your enterprise will be affected by any of those changes.
• Create a detailed business plan.

Tips
• Ensure all the important elements are • Be conservative in your approach and your
covered in your plan. projections.
• Scrutinize the numbers thoroughly. • Use visuals like charts, graphs and images
wherever possible.
• Be concise and realistic.

14.6.5 Procedure and Formalities for Bank Finance:


The Need for Bank Finance
For entrepreneurs, one of the most difficult challenges faced involves securing funds for startups. With
numerous funding options available, entrepreneurs need to take a close look at which funding methodology
works best for them. In India, banks are one of the largest funders of startups, offering funding to thousands
of startups every year.
What Information Should Entrepreneurs Offer Banks for Funding?
When approaching a bank, entrepreneurs must have a clear idea of the different criteria that banks use to
screen, rate and process loan applications. Entrepreneurs must also be aware of the importance of providing
banks with accurate and correct information. It is now easier than ever for financial institutions to track any
default behaviour of loan applicants. Entrepreneurs looking for funding from banks must provide banks with
information relating to their general credentials, financial situation and guarantees or collaterals that can be
offered.

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General Credentials
This is where you, as an entrepreneur, provide the bank with background information on yourself. Such
information includes:
• Letter(s) of Introduction: This letter should be written by a respected business person who knows you
well enough to introduce you. The aim of this letter is set across your achievements and vouch for
your character and integrity.
• Your Profile: This is basically your resume. You need to give the bank a good idea of your educational
achievements, professional training, qualifications, employment record and achievements.
• Business Brochure: A business brochure typically provides information on company products, clients,
how long the business has been running for etc.
• Bank and Other References: If you have an account with another bank, providing those bank
references is a good idea.
• Proof of Company Ownership or Registration: In some cases, you may need to provide the bank with
proof of company ownership and registration. A list of assets and liabilities may also be required.
Financial Situation
Banks will expect current financial information on your enterprise. The standard financial reports you should
be prepared with are:
• Balance Sheet • Profit-and-Loss Account
• Cash-Flow Statement • Projected Sales and Revenues
• Business Plan • Feasibility Study
Guarantees or Collaterals
Usually banks will refuse to grant you a loan without security. You can offer assets which the
bank can seize and sell off if you do not repay the loan. Fixed assets like machinery, equipment,
vehicles etc. are also considered to be security for loans.
The Lending Criteria of Banks
Your request for funding will have a higher chance of success if you can satisfy the following
lending criteria:
• Good cash flow • Adequate shareholders’ funds
• Adequate security • Experience in business
• Good reputation

The Procedure
To apply for funding the following procedure will need to be followed.
1. Submit your application form and all other required documents to the bank.
2. The bank will carefully assess your credit worthiness and assign ratings by analyzing your business
information with respect to parameters like management, financial, operational and industry
information as well as past loan performance.
3. The bank will make a decision as to whether or not you should be given funding.

Tips
• Get advice on funding options from experienced bankers.
• Be cautious and avoid borrowing more than you need, for longer than you need, at an
interest rate that is higher than you are comfortable with.

14.6.6 Enterprise Management - An Overview:


How to Manage Your Enterprise?
To manage your enterprise effectively you need to look at many different aspects, right from managing the
day-to-day activities to figuring out how to handle a large scale event. Let’s take a look at some simple steps

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to manage your company effectively.


Step 1: Use your leadership skills and ask for advice when required.
Let’s take the example of Ramu, an entrepreneur who has recently started his own enterprise. Ramu has good
leadership skills – he is honest, communicates well, knows how to delegate work etc. These leadership skills
definitely help Ramu in the management of his enterprise. However, sometimes Ramu comes across
situations that he is unsure how to handle. What should Ramu do in this case? One solution is for him to find
a more experienced manager who is willing to mentor him. Another solution is for Ramu to use his
networking skills so that he can connect with managers from other organizations, who can give him advice on
how to handle such situations.

Step 2: Divide your work amongst others – realize that you cannot handle everything yourself.
Even the most skilled manager in the world will not be able to manage every single task that an enterprise will
demand of him. A smart manager needs to realize that the key to managing his enterprise lies in his dividing
all his work between those around him. This is known as delegation. However, delegating is not enough. A
manager must delegate effectively if he wants to see results. This is important because delegating, when done
incorrectly, can result in you creating even more work for yourself. To delegate effectively, you can start by
making two lists. One list should contain the things that you know you need to handle yourself. The second
list should contain the things that you are confident can be given to others to manage and handle. Besides
incorrect delegation, another issue that may arise is over-delegation. This means giving away too many of
your tasks to others. The problem with this is, the more tasks you delegate, the more time you will spend
tracking and monitoring the work progress of those you have handed the tasks to. This will leave you with
very little time to finish your own work.

Step 3: Hire the right people for the job.


Hiring the right people goes a long way towards effectively managing your enterprise. To hire the best people
suited for the job, you need to be very careful with your interview process. You should ask potential
candidates the right questions and evaluate their answers carefully. Carrying out background checks is always
a good practice. Running a credit check is also a good idea, especially if the people you are planning to hire
will be handling your money. Create a detailed job description for each role that you want filled and ensure
that all candidates have a clear and correct understanding of the job description. You should also have an
employee manual in place, where youput down every expectation that you have from your employees. All
these actions will help ensure that the right people are approached for running your enterprise.

Step 4: Motivate your employees and train them well.


Your enterprise can only be managed effectively if your employees are motivated to work hard for your
enterprise. Part of being motivated involves your employees believing in the vision and mission of your
enterprise and genuinely wanting to make efforts towards pursuing the same. You can motivate your
employees with recognition, bonuses and rewards for achievements. You can also motivate them by telling
them about how their efforts have led to the company’s success. This will help them feel pride and give them
a sense of responsibility that will increase their motivation.Besides motivating your people, your employees
should be constantly trained in new practices and technologies. Remember, training is not a one-time effort.
It is a consistent effort that needs to be carried out regularly.

Step 5: Train your people to handle your customers well.


Your employees need to be well-versed in the art of customer management. This means they should be able
to understand what their customers want, and also know how to satisfy their needs. For them to truly
understand this, they need to see how you deal effectively with customers. This is called leading by example.
Show them how you sincerely listen to your clients and the efforts that you put into understand their
requirements. Let them listen to the type of questions that you ask your clients so they understand which
questions are appropriate.

Step 6: Market your enterprise effectively.

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also hire a marketing agency if you feel you need help in this area. Now that you know what is required to run
your enterprise effectively, put these steps into play, and see how much easier managing your enterprise
becomes!

Tips
• Get advice on funding options from experienced bankers.
• Be cautious and avoid borrowing more than you need, for longer than you need, at an
interest rate that is higher than you are comfortable with.

14.6.7 20 Questions to Ask Yourself Before Considering


Entrepreneurship
1. Why am I starting a business? 11. What would it take to build a minimum viable
2. What problem am I solving? product to test the market?
3. Have others attempted to solve this problem 12. How much money do I need to get started?
before? Did they succeed or fail? 13. Will I need to get a loan?
4. Do I have a mentor or industry expert that I can 14. How soon will my products or services be
call on? available?
5. Who is my ideal customer? 15. When will I break even or make a profit?
6. Who are my competitors? 16. How will those who invest in my idea make a
7. What makes my business idea different from profit?
other business ideas? 17. How should I set up the legal structure of my
8. What are the key features of my product or business?
service? 18. What taxes will I need to pay?
9. Have I done a SWOT analysis? 19. What kind of insurance will I need?
10. What is the size of the market that will buy my 20. Have I reached out to potential customers for
product or service? feedback?

Tips
• It is very important to validate your business ideas before you invest significant time, money and
resources into it.
• The more questions you ask yourself, the more prepared you will be to handle to highs and lows of
starting an enterprise.
Footnotes:
1. A mentor is a trusted and experienced person who is willing to coach and guide you.
2. A customer is someone who buys goods and/or services.
3. A competitor is a person or company that sells products and/or services similar to your products
and/or services.
4. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. To conduct a SWOT analysis of
your company, you need to list down all the strengths and weaknesses of your company, the
opportunities that are present for your company and the threats faced by your company.
5. A minimum viable product is a product that has the fewest possible features, that can be sold to
customers, for the purpose of getting feedback from customers on the product.
6. A company is said to break even when the profits of the company are equal to the costs.
7. The legal structure could be a sole proprietorship, partnership or limited liability partnership.
8. There are two types of taxes – direct taxes payable by a person or a company, or indirect taxes
charged on goods and/or services.
9. There are two types of insurance – life insurance and general insurance. Life insurance overs human
life while general insurance covers assets like animals, goods, cars etc

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Notes

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Projects
Participant Handbook

Project - 1

Title of the Project:

Problem statement:

Brief descrip on of the project:

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Approved by :

Name:

Signature:

Remarks (If any):

Design details:

Hardware components used (with specifica ons)

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So ware requirement:

Architecture:

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Data gathering mechanism:

How will you ensure data security?

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Results and Benefits:

Project submi ed by:

Name:

Signature:

Date:

Project approved by:

Name:

Signature:

Date:

Remarks:

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Project - 2

Title of the Project:

Problem statement:

Brief descrip on of the project:

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Approved by :

Name:

Signature:

Remarks (If any):

Design details:

Hardware components used (with specifica ons)

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So ware requirement:

Architecture:

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Data gathering mechanism:

How will you ensure data security?

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Results and Benefits:

Project submi ed by:

Name:

Signature:

Date:

Project approved by:

Name:

Signature:

Date:

Remarks:

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Notes

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Foundation Skills in IoT
IT - ITES Sector Skill Council NASSCOM
Plot No -7 to 10, Sector 126, Noida, UP - 201303
Phone : 0120 4990172
e-mail : [email protected]
Website : www.nasscom.in

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