Workers at Arrow Transportation Systems used to spend hours collecting mechanical data and driver safety information from its truck drivers once the vehicles arrived back at dispatch centres.
When it came time to upgrade this system of data collection seven years ago for its 300-truck fleet, the Vancouver-based company outfitted all its vehicles with mobile SIM cards allowing for instant wireless monitoring.
“Transportation is a process optimization business,” said Arrow chief operating officer Mitchell Zulinick.
“Not having a technological-based solution (is) not an option.”
This particular “Internet of Things” (IoT) solution — as the tech industry is prone to calling these remedies — resulted in an 8% savings on fuel costs at Arrow in addition to all the man-hours saved collecting data.
Mitchell added the company has seen enough savings that the solution paid for itself soon after being implemented.
But IoT itself hasn’t quite penetrated mainstream consciousness the way email or social media has, as just 6% of Canadian companies have deployed IoT, according to a July 15 IDC survey commissioned by Telus (TSX:T).
The concept refers to intelligent computer systems that transmit data between each other and respond accordingly in real time based on the information they receive. No human interaction is required.
For example, if an oil pipeline does not have enough pressure, one device will detect the imbalance and transmit that information to another system capable of compensating for pressure levels.
“It’s about automating processes and removing human error and in many cases being able to build out and capture information on a much greater scale,” said Tony Olvet, vice-president of research domains at IDC.
“We’re talking about eight to 10 million smart meters now across Canada being connected. That wasn’t possible 10 years ago.”
But Olvet noted many Canadian business leaders tend to be more risk averse than their American counterparts when it comes to new ways of thinking.
“Sometimes that’s a good thing, if you look at financial markets, for instance,” he said.
“But sometimes that can hold back some innovation.”
The survey, however, showed IoT deployment is expected to ramp up in Canada with another 7% of companies preparing to implement the technology in 2014. Another 30% are expected to adopt the technology in the next two years.
IoT spending is expected to grow from $5.6 billion in 2013 to $21 billion by 2018.
Jim Senko, Telus’ vice-president of small business and emerging markets, admitted some companies are reluctant to spend money investing in more technology.
But he pointed out IDC’s survey shows the adoption rate is on its way up in Canada.
“The hardware, the application, the hosting, the wireless are all pre-packaged and bundled together so they’re easier to digest,” Senko said, adding a logistics company tracking the movements of its truck fleet could expect to invest $400 to $500 annually per vehicle for all the hardware and support.
The return on investment comes from what the analytics provide the company. “Business leaders need to understand how they (can) make use of data and information that they’re gathering in the field that they perhaps wouldn’t have been able to capture in the past,” Olvet said.
“And now that capability exists through sensors and networks.”
