Great X-pectations: Executable, extended—new Internet paradigm could change the user experience and connect us with the real world - Business of Technology - Industry Overview

Computer Technology Review, Feb, 2003 by Naresh Lakhanpal

"It solves the problem of identification," said director Kevin Ashton. "What we're trying to do is kick off the next 50 years of computing. The purpose of the Auto-ID center is to get machines to perceive things on their own in the real world." Using an electronic product code embedded into products allows companies to pinpoint in real time, the product's location so an action can be taken. The Internet creates the network where data is stored so that it doesn't have to be stored on the actual object. This, he notes, reduces the cost and makes it possible to apply on the wide scale necessary to address supply chain issues.

As appealing as these technologies are, some experts have reservations. Gene Monacelli, national telecommunications leader, management solutions and services of Deloitte & Touche's TMT Group, is concerned about the privacy and security issues for these types of applications. "That means you're running devices over different types of networks, interfacing between the network and the device wirelessly and going through someone else's wired exchange," he said. "All this has to have security built-in. A lot of folks are going to say they're not interested in putting a lot of money into the necessary security to make all this workable and secure."

Monacelli also believes that people need to be very clear about the business benefits of using these technologies and how they'll be deployed.

The timeline can be several years out for these technologies. Howe doesn't see the extended Internet really touching consumers in a major way until 2007, due to the expense. And, he suggested that enterprises cherry pick technologies that would decrease costs or increase revenues.

Auto-ID Center's Ashton, for one, is optimistic about the potential.

"This is what the Internet was really invented for," said Ashton. "It's a foundation stone to enable machines to perceive the real world. That's what 21st-century computing looks like."

RELATED ARTICLE: Tip: Putting the X-Internet to work

Internet is going to be an evolutionary process. In the early stages, companies need to decide where to deploy their resources for the greatest benefits.

* Don't try to pick X-Internet winners this early. Instead, invest your time and money in X-Internet experiments that yield business value today.

* Start using wireless networks so that when you want to roll out an extended Internet application like production or supply chain monitoring, the network will already be in place.

* Identify high-value extended opportunities- places within the corporation where sensing the physical world in business would decrease costs or increase revenues.

* Allocate training dollars to learning the applications.

* Ask where your users need a better experience.

* Ask where you need more scale and have less need for bandwidth.

* Ask how you can put more intelligence near your users.

Source: Forrester Research

Naresh Lakhanpal is director of the Product Innovation Group for Deloitte & Touche Technology, Media & Telecommunications (TMT) Group