Chapter 1: The Evolution of Digital Transformation

Tell the truth …. how many of you could actually make it through a day without your smartphone?

In our world today, there are more smart devices than there are people. A growing number of people are
connected to the Internet, in one way or another, 24 hours a day. An ever-increasing number of people have, and
rely on, three, four, or more smart devices. These might include smartphones, exercise and health monitors, e-
readers, and tablets. As shown in Figure 1, by 2020, it is forecast that each consumer will have an average of
6.58 smart devices.

How is it possible for so many devices to be connected?

Modern digital networks make all of this possible. The world is quickly being covered with networks that allow
digital devices to interconnect and transmit. Think of the mesh of networks like a digital skin surrounding the
planet, as illustrated in Figure 2. With this digital skin, mobile devices, electronic sensors, electronic measuring
devices, medical devices, and gauges are all able to connect. They monitor, communicate, evaluate, and in
some cases automatically adjust to the data that is being collected and transmitted.

As society embraces these digital devices, as digital networks continue to grow around the world, and as the
economic benefits of digitization continue to grow, we are seeing a digital transformation. Digital transformation is
the application of digital technology to provide the stage for business and industry to innovate. This digital
innovation is now being applied to every aspect of human society.

Networking is the Foundation

Thirty billion things provide trillions of gigabytes of data. How can they work together to enhance our decision-
making and improve our lives and our businesses? Enabling these connections are the networks that we use
daily. These networks provide the foundation for the Internet and the digitized world.

The methods that we use to communicate continue to evolve. Whereas we were once limited by cables and
plugs, breakthroughs in wireless and digital technology have significantly extended the reach of our
communications.

Networks form the foundation of the digitized world. Networks come in all sizes. They can range from simple
networks consisting of two computers to networks connecting millions of devices.

Simple networks in homes enable connectivity to the Internet. They also enable the sharing of resources, such as
printers, documents, pictures, and music, between a few local computers.

In businesses and large organizations, networks can provide products and services to customers through their
connection to the Internet. Networks can also be used on an even broader scale to provide consolidation,
storage, and access to information on network servers. Networks allow for email, instant messaging, and
collaboration among employees. In addition, the network enables connectivity to new places, giving machines
more value in industrial environments.

The Internet is the largest network in existence and effectively provides the “electronic skin” that surrounds the
planet. In fact, the term Internet means a “network of networks”. The Internet is literally a collection of
interconnected private and public networks. Businesses, small office networks, and home networks connect to
the Internet.

Network Types

Modern networks can be a bit confusing. There are many types that are characterized by their geographic size,
by the number of devices or networks that they connect, and by whether they support mobile devices or not.
Networks can also be characterized by their function and purpose.

Personal Area Network (PAN)

Personal area networks are small networks where connected wireless devices are within personal reach (Figure
1). Connecting your smartphone to your car using Bluetooth is an example of a PAN.

Local Area Network (LAN)

LANs are typically networks in a small or local geographic area, such as a home, small business or department
within a large corporation (Figure 2). LANs can connect two or more devices, including computers, printers, and
wireless devices. LANs provide access to larger wide area networks (WANs) and the Internet.

Wide Area Networks (WANs)

The term WAN typically refers to a collection of LANs that provides inter-LAN and Internet connectivity for
businesses and governments.

Internet The Internet is a multi-layer global network system that connects hundreds of millions of computers
(Figure 3). The Internet is not owned by any one person or organization. This large system is comprised of
multiple local and global networks serving private, public, business, academic, and government purposes. It
allows for the exchange of data between more than a hundred Internet-linked countries worldwide. This makes
the Internet an enormous carrier of various information resources and services. Some of these include text and
multi-media data, email, online chat, VoIP, file transfer and file sharing, ecommerce, and online gaming.

Wireless Networks

Wireless networks are those computer networks that use electromagnetic waves instead of wires in order to carry
signals over the various parts of the network. Wireless networks can be described as PANs, LANs or WANs,
depending on their scope.

The Cloud

The term “cloud” is used in many different ways. The cloud is not as much a type of network as it is a collection of
data centers or groups of connected servers that are used to store and analyze data, provide access to on-line
applications, and provide backup services for personal and corporate use (Figure 5). Cloud services are provided
by different organizations.
The Edge

The edge refers to the physical “edge” of a corporate network.

Fog Computing

With the rising number of sensors used by the Internet of Things, there is often a need to store the sensor data
securely and closer to where the data can be analyzed. This analyzed data can then be used quickly and
effectively to update or modify processes within the organization. Figure 6 shows an example of a smart city and
how sensor data is processed. The fog is located at the edge of a business or corporate network. Servers and
computer programs allow the data to be pre-processed for immediate use. Then the pre-processed data can be
sent to the cloud for more in-depth computing if required.

What is the IoT?

The Internet of Things (IoT) is the connection of millions of smart devices and sensors connected to the Internet.
These connected devices and sensors collect and share data for use and evaluation by many organizations.
These organizations include businesses, cities, governments, hospitals and individuals. The IoT has been
possible, in part, due to the advent of cheap processors and wireless networks. Previously inanimate objects
such as doorknobs or light bulbs can now be equipped with an intelligent sensor that can collect and transfer
data to a network.

Researchers estimate that over 3 million new devices are connected to the Internet each month. Researchers
also estimate that in the next four years, there are going to be over 30 billion connected devices worldwide.

Perhaps a third of connected devices will be computers, smartphones, tablets, and smart TVs. The remaining
two-thirds will be other kinds of “things”: sensors, actuators, and newly invented intelligent devices that monitor,
control, analyze, and optimize our world.

Some examples of intelligent connected sensors are: smart doorbells, garage doors, thermostats, sports
wearables, pacemakers, traffic lights, parking spots, and many others. The limit of different objects that could
become intelligent sensors is limited only by our imagination.

How are IoT Devices Connected to the Network?

A sensor needs to be connected to a network so that the gathered data can be stored and shared. This requires
either a wired Ethernet connection or a wireless connection to a controller. Controllers are responsible for
collecting data from sensors and providing network or Internet connectivity. Controllers may have the ability to
make immediate decisions, or they may send data to a more powerful computer for analysis. This more powerful
computer might be in the same LAN as the controller or might only be accessible through an Internet connection.

Sensors often work together with a device called an actuator. Actuators take electrical input and transform the
input into physical action. As an example, if a sensor detects excess heat in a room, the sensor sends the
temperature reading to the microcontroller. The microcontroller can send the data to an actuator which would
then turn on the air conditioner.

The majority of new devices such as fitness wearables, implanted pacemakers, air meters in a mine shaft, and
water meters in a farm field all require wireless connectivity. Because many sensors are “out in the field” and are
powered by batteries or solar panels, consideration must be given to power consumption. Low-powered
connection options must be used to optimize and extend the availability of the sensor.

The Future of Networks

Networks are now connecting billions of sensors. Through software, the data from these sensors can cause
changes to physical environments without human intervention.

As was mentioned previously, all digital devices work based on computer programs and supplied data. Artificial
Intelligence implies that these devices are able to think on their own. If programmed appropriately, smart devices
are able to evaluate data that is provided to them and modify processes or settings immediately. If they are
provided with sufficient data, they can “learn” and modify their own code based on the new parameters.

So what comes next?

We know that software can be written to let data modify parameters within code for changing the temperature
setting in your home or the speed with which your teenager can drive the family car. Why could we not provide
software with rules, guidelines, or intent so that data could modify the network, infrastructure features, or security
features within a network? This is actually already possible. It is called Intent-Based Networking (IBN).

Here is a simple example to better understand the concept of IBN: The business may define that a contract
employee is given access to only a specific set of data and applications. This is the intent. In an intent-based
networking system (IBN), all the network devices will be automatically configured to fulfil this requirement across
the network, no matter where the employee is connected. VLAN, subnet, ACL and all other details will be
automatically defined and configured following best practices. The intent has to be defined once in a central
management console, and then, the network will continuously assure it, even if there are changes in the network.

Summary

The world is quickly being covered with networks which allow digital devices to interconnect and transmit. As
digital networks continue to grow around the world, and as the economic benefits of digitization continue to grow,
we are seeing a digital transformation. Digital transformation is the application of digital technology to provide the
stage for business and industry to innovate.

Sensors are now everywhere, collecting and transmitting massive amounts of data. The generated data can be
stored and analyzed at a later date, or it can be analyzed and used immediately. Sensors can be in the home, on
traffic lights, in farm fields, and on our bodies. The analyzed data is used by governments, cities, businesses, and
individuals to effect changes such as monitoring the environment, forecasting population growth, controlling
waste management, or securing a home.

Networks form the foundation of the digitized world. There are many types of networks that are characterized by
their geographic size, by the number of devices or networks that they connect, and by whether they support
mobile devices or not. Networks can also be characterized by their function and purpose.

 PAN: Bluetooth

 LAN

 WAN: Internet, the cloud, fog computing

 Wireless: Wi-Fi, Cellular

A sensor typically connects to a controller using a wireless connection. Controllers collect data from sensors and
send the data for storage or analysis. Controllers may have the ability to make immediate decisions, or they may
work together with a device called an actuator. Actuators take electrical input and transform the input into
physical action.

Networks are now connecting billions of sensors and have the ability to make changes to physical environments
without human intervention. The future of networking will revolve around artificial intelligence (AI) and intent-
based networking (IBN). If programmed appropriately, smart devices are able to evaluate data that is provided to
them and modify processes or settings. If they are provided with sufficient data, they can “learn” and modify their
own code based on the new parameters.