What is IoT and its importance to modern business?

IoT is the Internet of things which is a system of co-related computing devices, mechanical and digital machines, objects, animals or people with unique identifiers and the ability to transfer data over a network without human or computer interaction.

The Internet of Things or in short IoT is the Internet of things, which is a system of interrelated computing devices, digital and mechanical machines, animals, objects or people provided with unique identifiers and the ability of transferring data over a network with no need for human-to-human or human-to-computer interaction. A thing, in the IoT could be a person who has a heart monitor implant, an animal in a farm that has a biochip transponder, a car that has built-in sensors to alert a driver when tire pressure is low or any other man-made or natural object that could be assigned an IP address and provided with the capability to transfer data over a network.

The Internet of Things has evolved from converging of wireless technologies, MEMS or known also as micro-electromechanical systems or micro-services as well as the internet. The convergence helped break down the walls between operational technology and information technology, enabling unstructured machine-generated data to be analyzed for insights that drive enhancements.

internet of things

While the concept wasn’t named until the year 1999, the IoT has been in development for decades. The convergence of connecting people, data, things and processes is changing people’s lives, businesses and all other else in between. The Internet of things emerges as the third wave in internet development. It has the potential to connect ten times as many things to the internet by 2020, which range from bracelets to cars. Breakthrough in sensors cost, processing power and bandwidth to connect devices are allowing ubiquitous connections at the moment. Smart products such as smart watches and thermostats are gaining traction already.

Anyone keeping up with the rising trend towards smart devices, entire home security systems and updated car entertainment platforms noticed that it is an age wherein the internet is creeping into everything people use. As a matter of fact, some will argue, that the world is not far from an ‘internet of humans’. With wearable devices and other smart phone technology advances becoming the norm, instead of an exception.

Practical IoT technology applications could be found in numerous modern businesses today. These include building management, precision agriculture, energy, healthcare and transportation. The Internet of Things has key attributes which differentiate it from the regular internet. The attributes could tilt the direction of the development and adoption of technology, with considerable implications for technology companies.

The following significant changes in technology have come together to enable growth of IoT.

  1. Cheap Sensors. The prices of sensors have dropped to an average of 60 cents from $1.30 in the past decade.
  2. Cheap processing. In the same manner, processing costs have declined by almost sixty times over the past decade, allowing more devices to be not just connected, but also smart enough to determine what to do with all the new data generated or received.
  3. Cheap bandwidth. The bandwidth cost has declined precipitously as well, by a factor or almost forty times over the past ten years.
  4. Smartphones. Smart phones now are becoming the personal gateway to the Internet of Things. They serve as a hub or remote control for the connected home, health or car and fitness device consumers are starting to wear them more and more.
  5. Ubiquitous wireless coverage. With WiFi coverage ubiquitous now, wireless connectivity is freely available or at a very low cost, given WiFi uses unlicensed spectrum and so does not need monthly access costs to a carrier.
  6. Big Data. As the Internet of Things would, by definition generation large amounts of unstructured data, Big Data analytics availability is a key enabler.

The IoT would give IT managers plenty to think of. Enterprises would have to address each and every IT discipline to balance the deluge of data effectively from devices which are connected to the corporate network. Additionally, IoT drives tough organizational structure changes in organizations to allow innovation to be transparent to everyone, while making new competitive business products and models.

The Internet of Things is shaping modern businesses, from manufacturing to marketing. A lot has been changed already as the inception of the internet and much more would change the greater web reach and connectivity. The global network that connects people, data and machines which transform the modern business is called Industrial Internet. This has a potential of $10 to $15 billion of worldwide GDP in the next two decades. It is predicted that IoT would experience a large growth in the years to come in a lot of areas.

From business to life, imaginations are limitless. Everything is wired up or wirelessly connected. The rich new information resources would run at one’s fingertip. The next generation mobile system evolution would depend on a user’s creativity when it comes to designing new apps. However, privacy and security would be the top considerations for developing companies that are involved in applications development.

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