Precision: Principles, Practices and Solutions for the Internet of Things (IoT)


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You may not be sure why your coffee pot should talk to your toaster, but precision technology powering an Internet of Things has the potential to reshape the planet. To help clarify, Dr. Timothy Chou has created Precision to introduce us to the basics of the industrial Internet of Things (IoT).

The first part – Precision: Principles and Practices – introduces a vendor-neutral, acronym-free framework. Dr. Chou then discusses the framework’s fundamental principles and these principles put into practice.

The second part – Precision: Solutions – puts Dr. Chou’s IoT framework into practice highlighting 12 real world solutions for manufacturers who are building precision machines and companies utilizing these machines to receive precision enhanced business outcomes. Case studies discussed span across a number of industries such as power, water, healthcare, mining, gene sequencers, transportation, oil & gas, construction and agriculture.

Figuring out how to best capitalize on the Industrial Internet can be daunting and confusing. Here in Precision, Dr. Chou is helping to demystify the processes behind getting better outcomes from assets of any kind – machines, real estate, people, factories, etc.; from the initial setup of an organization’s IOT framework to defining the principles behind the operations and on to examples and best practices. With a proven case study approach, Timothy has gathered the right examples to help leaders grasp what they need to do and how to do it.

William Ruh, Chief Digital Office, General Electric

The promise of the Internet of Things isn't delivered by connected devices or machines. The promise is in the data that they generate and the insight that can be mined from it. Dr. Chou's IoT Framework presents an excellent roadmap for enterprises struggling to transition the IoT promise to realized value.

Dr. James Goodnight, CEO, SAS

Precision is an accurate, insightful presentation of the complex challenges facing data scientists, technologists and businesspeople who are solving some of the world's biggest operational challenges through the Internet of Things, machine-generated big data and machine learning. If you want to go beyond the hype and really understand what the Internet of Things is today, what it could become tomorrow, and how you can gain value from it, Precision should be in your library.

Godfrey Sullivan, Chairman, Splunk

As an investor and business manager I find Tim Chou’s books uniquely informative, clear and timely. Tim identifies important technologies early in their emergence. His clear explanations dispel the fog of jargon and hype. He provides cogent examples of companies implementing IoT to solve genuine business problems and of companies building IoT solutions for profit. His books should be essential reading for any business person touched by technology. Which is everyone.

Mick Hellman Founder and Managing Partner, HMI Capital, LLC

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(Excerpt from Precision: Principles, Practices and Solutions for the Internet of Things)

It is no secret that technology brings change – fast. And it has been proven that the businesses that are able to embrace the change and use it to their advantage are the ones that survive and thrive. In the industrial space we are at a moment where technology is leading business strategy. That means that leaders need to rapidly embrace and understand how technology can and should affect their business. Timothy has had a front seat working with the leaders in the industry who are mastering the realizing of value from the merger of physical and digital.

For many, this merger is uncomfortable because when you start – you don’t always know where you will end up. You might end up on a path that leads you to make a change in a business model, a change in how your organization works or a change in how you view your competition. Sometimes it can even change the definition of who you compete with. At GE, we had to make some of these tough decisions as part of our own transformation. It wasn’t easy and we didn’t do it overnight. One key lesson is that one must always be learning to be successful on a digital journey.

Until now, most industrial business has been focused on making or owning the asset; essentially, everything that goes into designing, building, operating and maintaining an asset. Business leaders could focus on making improvements to things that were familiar or comfortable. Processes could be made leaner. People could be trained in Six Sigma to gain advantage. Now, thanks to technology, everywhere you look it is about how to get the best outcome from that asset. Those same assets can be monitored and operated in entirely new ways – driving improvements like never before. Better speeds, more information, better experience and more productivity – in short, better outcomes from every asset and industrial process. Industrial data coupled with the best analytics are becoming the center of competitive advantage.

The best companies of the future will be those that are able to master the emerging world of connected machines, capture new sources of information from sensors and build deep learning capabilities, all of which helps gain insights and get the most out of physical infrastructure. We are entering a world where we have a greater level of precision to our decision making than ever before. We will drive new levels of productivity that will become the driving force for the world’s economy.

Figuring out how to best capitalize on the Industrial Internet can be daunting and confusing. Here in Precision, Dr. Chou is helping to demystify the processes behind getting better outcomes from assets of any kind – machines, real estate, people, factories, etc.; from the initial setup of an organization’s IOT framework to defining the principles behind the operations and on to examples and best practices. With a proven case study approach, Timothy has gathered the right examples to help leaders grasp what they need to do and how to do it.

This book is approachable by any business or technical leader. It not only describes the promise, but more importantly makes the process of shifting your thinking and building your own strategy and plan easy to understand.

In the future every business will be a digital business. William Gibson’s quote “The future is here – it’s just not evenly distributed” is very apropos to the current state of affairs. It is important for businesses to begin their journey to being digital. This book provides both the crystal ball into the future as well as a roadmap to get started.

Bill Ruh
CEO, GE Digital and Chief Digital Officer, GE
April 2016, San Ramon, CA

Dr. Timothy Chou has been a leader in the second generation of enterprise software, including in his previous role as President of Oracle On Demand. He is leading the third generation by investing, consulting and teaching at Stanford University.

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