Analysis of Factors Influencing Adoption of Internet of Things: A System Dynamics Approach

The Internet of things (IoT) has become an interesting topic of research as it assimilates several sensors and objects to communicate directly with one another without human interference. IoT helps businesses and society in many ways such as it improves public safety, transportation, and healthcare by providing better information and faster communications. The adoption of IoT is going to create a persistent impact on society and business. This paper develops a model based on system dynamics and identifies the factors influencing IoT adoption. The dominant factors of IoT adoption are communication, control and automation, efficient business processes, self-configuration, and cost savings. IoT adoption is also affected by negative factors including privacy risks and security risks, interoperability, reliability, poor infrastructure, less skilled IT professionals, etc. Businesses can reap the potential benefits of IoT by solving the issues related to their adoption. Besides, this paper attempts to derive a framework for the successful adoption of IoT in organizations. This study is, therefore, a significant contribution towards understanding the factors that influence the adoption of IoT in businesses. The paper presents a proposal of a practical implementation for an IoT gateway dedicated to real-time monitoring and remote control of a swimming pool. Based on a Raspberry Pi, the gateway allows bidirectional communication and data exchange between the user and the sensor network implemented on the environment using an Arduino.


Introduction
IoT is an amalgamation of devices, software, sensors, and networks to work jointly to extract significant and usable data or information generated from it [1]. IoT benefits the organization in various ways from improving the efficiency sions in the firms. Cloud computing provides global infrastructure to store this real-time data and data analysis is done using big data technologies such as Hadoop, NoSQL, and cloud-based Database as a Service (DaaS). Data mining and machine learning or artificial intelligence techniques are used to find out new patterns inside the data. Application developers can utilize this data to create new business applications. In this way, IoT brings business value to a firm by generating a new pattern or insights. IoT also allows firms to enter new markets, enhance the production, streamline their business processes, and satisfies the customer's needs more effectively and efficiently [5].
Various market research firms such as AT & T emphasized that 30 billion IoT devices will get connected to the Internet by 2020. Similarly, IDC predicted that several IoT devices for operational usage will be 28.1 billion by 2020 with a CAGR growth of 17.5% between 2016 and 2020 [6]. Gartner's report predicted that the number of devices connected with IoT will preferably reach by 40 billion and the economic growth of IoT will overreach $1.9 billion with 26 billion units by 2020 [7] [8]. A recent study done by Deloitte predicted that, by 2010, IoT devices in India are expected to grow 31 times to 1.9 billion units [9]. Likewise, the NASSCOM report predicted that by 2020, the Indian market accounted for 5% of the global market of IoT and expected to grow $15 billion [10].
IoT is still in a nascent stage in India and the percentage of organizations with more than fifty thousand connected devices active has been increased two-fold S. Tripathi [11]. 81% of Indian organizations felt that digital transformation occurs due to the evolution of IoT [11]. In India, Industries like manufacturing, logistics, automotive and transportation, and utilities are expected to be the highest adopter of IoT, whereas healthcare, retail, and agriculture industries are predicted to have significant contributions in IoT adoption [12]. The government of India is planned to invest one billion dollars for developing smart cities that influence IoT adoption across the industries. Various big global firms have already adopted IoT like Intel, Microsoft, Samsung, DHL, General Electric, Rolls Royce, Bosch, etc. Some Indian firms have also adopted IoT like HCL Technologies, Infosys, Ramco Systems, and Secure Meters, etc. [12].
Very few studies such as Caro et al. [13]; Hu et al. [14]; Mital et al. [15]; and Mengru Tu [16] have examined IoT adoption in the organization. Prior studies related to IoT adoption highlighted only the factors like perceived usefulness, perceived ease of use, attitude towards adoption, adoption intention, perceived behavioral control, and perceived risks like security/privacy risks. Therefore, the motivation of this study is to identify the other dominant factors that influence IoT adoption by understanding the dynamic behavior of IoT in the organization using a system dynamics model.
This study contributes to the literature by providing a system dynamics model and framework to analyze the factors that influence IoT adoption in the organization. This study fills the gap by introducing other relevant positive and negative factors that influence IoT adoption in the organization. This paper proposes the conceptual model and framework for IoT adoption, therefore future research will be based on formulating hypotheses and data collection. In the future, the proposed model will be tested using advanced econometrical methods like exploratory factor analysis and structural equation modeling.
The paper initiate with the introduction of IoT followed by the purpose and motivation of the study. The literature review of IoT is done in the next section.
The conceptual model and framework are discussed in the latter part of the paper. Lastly, the conclusion and implications are discussed in the paper.

Literature Review
Caro et al. [13] highlighted that IoT plays a vital role in connecting the supply and demand and can act as a retaliatory measure to fill a space between information and fulfillment in the retail industry. IoT adoption generates value by increasing capabilities at a point where supply and demand intersect. Hu et al. [14] articulated and presented IoT in the context of the online retailer's decisions. The study showed that perceived benefit had a stronger positive effect on perceived value than perceived sacrifice.
Tedeschi et al. [21] developed a safe remote monitoring system for machine tools through IoT devices and examines the serious issues focusing on the manufacturing environment. Glória et al. [22] enlightened about the practical implementation of IoT gateway which is dedicated to real-time monitoring and remote control of the swimming pool. Raspberry Pi acts as an aggregate node, Arduino with a set of sensors acts as a sensor node and a web platform to control and maintain the network. A secure system using encrypted communication and an SSL protocol and certificate on a web server-side were developed. Stietencron [23] proposed IoT in the field of marine services to manage the two devices that are automatic identification systems and product embedded information devices to save time and reduce manual efforts. Rahman et al. [24] [14] reviewed the definition of Industrial IoT. They developed the definition of the Industrial Internet of Things (IIoT) and examined IoT taxonomies. They also developed a framework for IIoT analysis which can be used to compute and describe IIoT devices while reviewing different system architecture. This framework also helped in evaluating security risks and vulnerabilities associated with IIoT. Mir et al. [25] examined the physical and the virtual resource management in IoT systems and highlighted that the basic functioning of IoT includes sensing and data aggradations, processing of the data, storing data and then communication of this data to the virtual environment.
Ray [26] emphasis area-specific architecture of IoT applications and focuses on the challenges and possible research opportunities in the area of defense, military, robotics intelligence services, etc. The author highlighted that IoT may not be adopted by the organization due to its challenges related to flexibility, interoperability, concurrency, scalability, and addressability. Ammar et al. [27] provide a picture of a present state of IoT platforms and identify the trends of different IoT platforms. All the security issues of the IoT framework were considered in terms of authentication, authorization and access control and secure communication.
Chatfield and Reddick [28] have developed a new conceptual framework for IoT enabled smart government. The U.S. federal government's IoT case was examined in four domains: Transportation, Energy, Smart cities and Defence.
The finding showed that the strategic usage of IoT is still in the nascent stage in government across the globe. Li et al. [29] review the present research state-of-the-art of 5G IoT, key enabling technologies, and main research trends and challenges in IoT. Pauget and Dammak [30] addressed the organizational implementation of IoT in the case of senior care with three aspects. The first one discusses the patient's independence with the introduction of the Internet of Things; the second one opposes the contradictory image of senior care and the third one confirms endurance among homecare services and institutionalization.
IoT related literature review and a theoretical framework and conceptual model were developed by Nord et al. [31]. The framework highlighted the factors that influence IoT adoption by firms. These studies also highlighted various applications of IoT and found privacy, security, and trust as IoT challenges.
Mountrouidou et al. [32] constructed an IoT taxonomy based on generic building blocks for a wider understanding of large pool of IoT devices that are used in home appliances and health care, such as smart plugs, digital assistants, and web cameras, smart meters and robots. They showed that their taxonomy is broad and robust having a simple and effective algorithm that makes it complete, timely, and accurate. Appendix 1 shows the literature review table.

System Dynamics Model
System dynamics (SD) is a mathematical modeling technique to frame, under- stand, and discuss complex issues related to systems [33]. SD is a method to understand the dynamic behaviour of complex systems. Researchers have used SD to design the structure of statistically vigorous systems that put up common dynamics [34]. System dynamics modeling lies in determining the dynamics

Communication
Tracking of assets (such as equipment, machinery, tools, etc.) using sensors and connectivity will be more convenient with IoT, which in turn helps organizations to easily locate issues in the assets and run preventive maintenance to improve asset utilization [2].
Proper resource utilization helps to communicate data and information to people and systems [3]. It also tracks current location and movement like locating items and people within the organisation through sensors like RFID [23]. In this way communication influences IoT adoption in the firm.

Control and Automation
IoT also helps the business to provide visibility to send alerts for anomalies and

Cost Saving
IoT helps a company to save cost by minimizing equipment failure and allow the business to perform planned maintenance with the help of new sensor information. The return on investment for IoT applications can be easily gained back within a year by enabling capabilities of IoT [13]. IoT also helps to improve resource utilization, business productivity, and increase business process efficiency which in turn cut down operating and maintenance costs [2]. For example, IoT applications such as predictive analytics and real-time diagnostics reduce maintenance costs. In this way, cost-saving promotes IoT adoption in the organization.

Efficient Business Processes
Business agility and inventory reduction take place with IoT as it deals with to market and downtime due to inter-connectivity of the maximum number of devices to the internet in IoT platform. Adoption of IoT in manufacturing sector helps to increase business efficiency in its day to day operations and assist them to improve their production quality with high-end safety [3]. Therefore, business process efficiency leads to IoT adoption in the organization.

Self-Configuration of IoT Devices
Stergiou et al. [23] suggested that integration of IoT with cloud solutions is required to connect with existing enterprise and operational systems i.e. on public clouds or in private data centers. Maintenance and management of IoT service become easier when IoT service deployed on the cloud platform. IoT platform vendors who are offering a multi-cloud strategy are more responsive to customer and regional requirements. Integration of Cloud with IoT allows IoT devices to integrate with current systems and other IoT devices [35]. This is called the CloudIoT paradigm [35]. Cloud helps IoT to integrate the data collected from its devices with the information exist in current business applications. For example, in a manufacturing company, data collected from sensors on machines can be linked with shipping logs to recognize the influence of machine downtime on delivery times. The cloud plays a major role in the development or improvement of IoT devices because it helps in the automatic configuration of IoT devices securely. Hence, the cloud is an important part of a successful IoT environment. The amalgamation of IoT and Cloud computing provides new prospects of data-sharing and internet-enabled services. This would also lead to a vigorous global network system along with self-configuring capabilities which are based on standard and interoperable communication protocols. According to Distefano et al. [36], IoT devices can securely self-configured and interact with the cloud to customize its behavior. IoT devices can also download the required features from the Cloud. Thus, this integration of cloud platform with IoT would further lead to IoT adoption in the organization.

Security Risks
IoT comes with various security issues, such as authorization, verification, access control, system configuration, information storage, and management [16]. According to Voas et al. [38], the security implications of IoT are creating hurdles for its wider adoption. IoT is at high-security risks for several reasons. Firstly,  [40]. Therefore, there is a need for well-defined policies and a steady legal framework for IoT adoption in the organization [33].

Privacy Risks
Kolias et al. [41] focused on privacy threats caused by IoT such as leakage of personally identifiable information (PII) and sensitive user information, and

Interoperability
Noura et al. [42] highlighted the interoperability as a challenge in IoT adoption in the industry. This challenge can be overcome by connecting IoT devices with standards-based IP networks. The lack of protocols and standards from the governing bodies and the absence of the latest technologies would slow down the adoption of IoT. Furthermore, the integration of IoT and cloud computing would also help in data-sharing and services like self-configuration capabilities based on standard and interoperable communication protocols.

Infrastructure
With the incremental growth in real-time data, companies need to opt for a sustainable solution for data storage. The real-time data are stored centrally which is unsustainable. Hence, companies should switch to a distributed cloud platform from centralized data storage [37]. Also, companies should ensure that they have the right infrastructure that manages IoT connected devices, sensors, and data generating in real-time.

Less Skilled IT Professionals
IoT is a very extensive area and generates a huge volume of data collected from several sources using devices and sensors. Therefore companies require IT professionals with big data analytical skills to make quick and reliable business deci- sions. An IT professional should have sufficient analytical skills in business intelligence areas such as data center management, sensor data analysis, predictive analytics, with programming knowledge of NoSQL distributed databases and Hadoop file system that are required to manage huge and fast-growing data sets.
Therefore, there is a need for a team of IT professionals with business analytical skills for successful IoT adoption in the organization [37].

Vendors Credibility
Today, organizations outsource IoT solutions to the third-party vendor. The selection of IoT vendor is one of the most crucial decisions which businesses take.
IoT platforms that offer the right infrastructure, high scalability, optimized results, and disaster recovery, without compromising on precision and efficiency are required [37]. Therefore, the challenge is to find out the appropriate IoT vendor that provides the best IoT solution. Table 1 shows the factors that need to control along with the remedies in the successful adoption of IoT in the organization.

The Framework of Adoption of IoT in an Organization
The framework was developed and shown in Figure 2. The framework shows Security Risks Security procedures such as hardware encryption, physical building security and network security need to be implemented.

Infrastructure
Sustainable solutions for data storage need to be implemented like Cloud Computing.
Reliability/Network Connectivity Establish powerful and reliable network connectivity.

Interoperability
Connect IoT devices with standards-based IP networks.
Less skilled IT professionals A team of IT professional with knowledge of business analytics tools.
Choose the right vendor Find the best IoT vendor that provide right IoT infrastructure with scalability, disaster recovery, precision and efficiency.  the different factors and sub-factors that influence IoT adoption. In case of cost saving, with new sensor information, IoT can help a company, save money by minimizing equipment failure and allowing the business to perform planned maintenance. IoT will improve tracking of assets (equipment, machinery, tools, etc.) using sensors and connectivity, which helps organizations benefit from real-time insights. With the help of IoT, organizations could more easily find problems in the assets and execute preventive maintenance to get better asset utilization. IoT helps in reducing operating costs by providing real-time operational insights to the organization. For example, in a manufacturing firm, IoT collects data from the logistics network, factory floor, and supply chain. This will help the firm to reduce inventory, time to market and downtime due to maintenance. The improved asset utilization, productivity, and process efficiencies can save operating and maintenance costs.
Implementation of security procedures such as hardware encryption, physical building security, and network security are needed to safeguard the sensor and equipment connected in IoT. Identity and authentication structures will also need to be updated to minimize the privacy risks associated with IoT in the organization. According to Nord et al. [31], security decisions maker is unknown

Conclusions and Implications
This  The objective of this study is to offer an explorative, quantitative study on the IoTs to enhance the existing knowledge and support business in the process of engaging more users and creating new personalised products. The paper presents a proposal of a practical implementation for an IoT gateway dedicated to real-time monitoring and remote control of a swimming pool. Based on a Raspberry Pi, the gateway allows bidirectional communication and data exchange between the user and the sensor network implemented on the environment using an Arduino. This paper presents a solution approach and its prototypical implementation utilising the Internet of Things (IoT) to aid the marine auxiliaries' producers in the process of managing the product usage phase and its services. This study explored the adoption of Internet of Things from a multiple theory perspective, namely, The Theory of Reasoned Action (TRA), The Theory of Planned Behavior (TPB) and The Technology Acceptance Model (TAM).