IoT (Internet of Things) in Service Sector

Goknur Arzu Akyuz

Associate Professor in Logistics Management Department

Head of Logistics Management Department

University of Turkish Aeronautical Association

Ankara, Turkey

Dursun Balkan

Associate Professor in Industrial Engineering Department

University of Turkish Aeronautical Association

Ankara, Turkey

arzu.akyuz@gmail.com, dursunbalkan@gmail.com

IoT (Internet of Things) in Service Sector

IoT (Internet of Things); which basically refers to the sensor-based connectivity and integrity of multiple technological components, devices and objects; has proven applications in manufacturing sector. The concept is recently increasing its utilization in service sector as well. This study offers a comprehensive literature review of IoT aplications within the scope of service sector. Technological components, main areas of application, utilization goals, related service processes, and benefits obtained by the application of IoT are investigated from service sector perspective. Main components of IoT systems identified typically include sensors, actuators, network infrastructure, controllers, processors, cloud platform, machine learning and AI algorithms to ensure on-line, real-time data collection and analysis, leading to powerful business analytics. Transportation and logistics, fleet management, retail, health care, financial services, hospitality, and various smart applications for smart buildings, cities and homes appear as the main service-related sectors in which IoT philosophy is applied. Findings reveal that service sector utilizes IoT for improved operational efficiency, increased productivity, enhanced customer experience, automation and workflow optimization, efficient resource management, remote monitoring of maintenance, as well as safety and security enhancement. Hence, an overall system improvement is obtained, leading to streamlined customer service delivery and overall cost optimization. The study highlighted the importance of IoT components in providing on-line, real-time big data from various locations and processes of the service systems. Processing this big data enables service analytics, customer-centric analysis and data-driven decision-making in all the service processes (including service design, service request management, service delivery, service monitoring and reporting, service change management, service feedback and improvement, and service training and development). Sensor-based data captured from IoT components feed various analytical industrial engineering tools and techniques, such as network modelling approaches, OR techniques, neural networks, clustering and segmentation algorithms, and machine learning algorithms. Thus, they are converted to insights, factual analysis, advanced reportings, business intelligence and decision-support for all managerial decision levels (operational, tactical and managerial). This accurate and dynamic intelligence is useful especially for generating advanced customer behaviour analysis, customer segmentation reports and supporting service blueprinting and service benchmarking. In conclusion, this study put forward that IoT is applicable and beneficial for not only the manufacturing systems, but also the service systems. Adoption of IoT philosophy in service systems of different characteristics hava a significant potential for leveraging connectivity and automation, and generating business intelligence. Consequently, IoT can transform the operations, and revolutionalize the service-related processes. Since applications are relatively recent when compared with the manufacturing systems, comparative IoT implementations in various configurations in different service system contexts will continue to be catching attention of further researchers.

Keywords

IoT, Service sector, Sensors, Integrity

Biographies

Goknur Arzu Akyuz is currently the Head of Logistics Management Department, University of Turkish Aeronautical Association (THK University), Turkey. She received her Bs degree from Industrial Engineering Department, Middle East Technical University in 1992. She has 12 years of experience in Production Planning & Control, Enterprise Resources Planning (ERP) and Quality Management in different projects and sectors (military electronics, power and medical). She has received an MSc degree in Computer Engineering in 2008, and a PhD degree in MODES (Modelling and Design of Engineering Systems) in year 20012 from Atilim University, Turkey. Her research interests include Production Planning and Control, Enterprise Resources Planning, IT-supply chain integration, Web-based Supply Chain Management.

Assoc. Prof. Dr. Dursun Balkan received his BSc, MSc and PhD degres in Industrial Engineering Department at Gazi University, Ankara, Turkey in years 2006; 2009 and 2016 respectively. He also received his second degree in Public Administration from Anadolu University at Faculty of Economics in 2015. Currently in Industrial Engineering Department of University of Turkish Aeronautical Association (THK University) in Turkey, he started professional career at the National Productivity Center in 2007 as Productivity Specialist and worked as an Industry and Technology Specialist at the General Directorate for Productivity of the Ministry of Science, Industry and Technology. In 2017, he became an Institution Representative of the Ministry of Science, Industry and Technology at State Information Coordination Center of Presidency of the Republic of Turkey. He has given various courses, consultancy services and researches at various levels at public and private enterprises and participated in many meetings, trainings and workshops related to his expertise field at international organizations.

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Dr. Dursun Balkan