Internet of Things development in Russia

Anna Plemyashova, Head of Beltel Datanomics Big Data and Artificial Intelligence Department, answered questions from RBC+.

  1. In what direction do you think the global market for the Internet of things is developing? What are its prospects?

According to the data of analytical agencies Gartner and IDC, in 2015 the number of devices connected to the Internet was 15.41 billion, in 2019 it was 26.66 billion. It is believed that in six years, by 2025, their number will triple and will rise up to 75 billion. It is obvious that the Internet of things market will be developing, new solutions will appear and products that are familiar to us will change.

2.What are the features of the Russian market of the Internet of things? How advanced is it? In which industries, in your opinion, the technology is applied now — and in which industries do you see the potential for implementation?

I would not say that the Russian market for the Internet of things is going its own way. As in all other countries, development is heterogeneous across sectors. For example, the banking sector is already so ahead of other industries that we are not just talking about improving work efficiency using the Internet of things, but about changing the product and customer experience. It was impossible to imagine ten years ago that we would pay with a mobile phone at the checkout, and now this is the usual action.

Russian retailers are actively adapting IoT technologies. Video analytics can improve customer service, increase efficiency and save on staff — optimizing work. The use of intelligent systems to forecast demand and for predictive maintenance of equipment can significantly reduce costs.

Industrial enterprises with a mature IT infrastructure and, most importantly, a culture of data collection and storage also enter into IoT projects. For the industry, such projects require collaboration between IT, manufacturing, and business because of the scale and complexity of the tasks of IoT projects, although this statement is true for any industry.

The potential for the development of the IoT lies in two industries — medicine and housing and public utilities. Perhaps, with sufficient government support, these two sectors can be qualitatively changed in our country using IoT technologies.

3. Government regulation of the Internet of things. How do you rate it? Which measures do you think are negative and which are positive? Do you find government programs for the development of the Digital Economy generally effective?

As such, there is no government regulation of the Internet of things. There are some initiatives anв rules that indirectly relate to this technology. The main problem of the Internet of things is security, and certain regulatory procedures are probably required here.

Public discussions are underway on preliminary national standards that will allow the integration of smart meters from different manufacturers into a single system. I admit that the adoption of such standards will simplify the implementation of projects, for example, in the housing and public utilities sector.

4. Based on your experience, what economic effects from the introduction of the Internet of things could you name first?

Our main IoT customers comes from retail and industrial sectors. Retail primarily looks for improvement in the quality of customer service, increased sales, and reduced costs by optimizing purchases and staff work. For industrial companies, one of the main goals is to increase production efficiency. Optimization of the yield of a product or production cycle by a fraction of a percent can give a significant absolute value for the enterprise.

The success of projects in the field of the Internet of things depends on clearly formulated goals and requirements for the solution, understanding of the stages of implementation and budget, on cooperation between the various departments of the company involved in the project, and, of course, on the expertise of the performers.