Today, the Internet of Things IoT massively changes our professional and private lives. Networks of smart devices literally surround us everywhere in this hyperconnected world. It can be digital assistants, animals with tracking collars, vehicles with embedded sensors to alert about breakdowns, and any physical object that can be assigned an Internet Protocol address and can transfer data over a network.
Different industries resort to using the Internet of things technologies to compete successfully in the market, better understand customers and consumer behavior, make optimal decisions and improve the overall business. The global demand for IoT software is constantly growing. And if now there are over 13 billion connected IoT devices, it’s expected there will be 25.4 billion by 2030 around the globe. Startups and large enterprises that don’t want to miss the boat would better start thinking about the possibilities of the Internet of Things today than tomorrow.
This brings us to the central questions of this article. What is the Internet of Things? How does it work? And is it really that important today? Here’s everything you need to know about the Internet of things phenomenon.
The Internet of things (IoT) is a network of interrelated computing devices (things) that are embedded with sensors, software, and different technologies. It facilitates communication with the cloud, as well as between other IoT-enabled devices themselves. The technology enables us to receive data from mechanical and digital machines with a stable internet connection. This relevant information includes valuable insights, which allow businesses to monitor workflows and impact productivity.
As we have already mentioned, the Internet of things is a giant network consisting of interconnected devices. Smart objects with IP addresses also have IoT sensors embedded into them. They collect data about their surroundings. A simple example of such a gadget is a fitness tracker, which monitors the number of steps daily.
Then, IoT devices share data by connecting to gateways, where it is either analyzed locally or sent to the cloud for this procedure. As IoT platforms usually have built-in intelligence, it allows them to make decisions without human intervention. It can be a simple sensor that takes action after it detects some changes in its surroundings, or it can be more complex algorithms, like machine learning, which get smarter over time and improve decision-making.
Sometimes, smart gadgets act on the data collected from other connected iot devices. And as we mentioned before, the system does most of the work without human intervention. But users can interact with the devices to set them up, give instructions or access the data.
To finally understand how IoT works, it is necessary to learn the IoT components of which the sensor network consists.
IoT system consists of hardware and software components. First are physical devices connected to the internet. These can be multiple sensors, wearables, cameras, or production equipment. The software part of the entire IoT system includes programs and algorithms. With their help, it is possible to collect and analyze data, make decisions, and run instructions.
There are five components standard for most IoT systems: sensors (devices), connectivity, cloud, analytics, and user interface. Let’s look into these in more detail.
These physical objects, or “things” as they are sometimes called, are connected to the external environment. They collect and store data about outside changes and then send it to the next layer. It could be simple parameters like temperature reading from a temperature sensor or complex data like video streaming from cameras. Some commonly used examples of iot sensors are:
After the data is gathered, it needs to be transmitted to the cloud infrastructure or other storage location, where it will be processed and analyzed. There are a variety of ways in which we can connect smart devices to the cloud:
All these options perform the same task – to transmit data to the cloud. But they differ in their power consumption, range, and bandwidth. Moreover, IoT protocols, chosen according to the reference system architecture, can also be different: DDS (Data Distribution Service), ZigBee, AMQP (Advanced Message Queuing Protocol), LoRa, and others. Choosing optimal internet connectivity for your IoT ecosystem will depend on the specific app.
Once the data has been collected and transmitted, it needs to be handled to be useful. And the cloud is where data processing takes place. Cloud services, the brain of the IoT ecosystem, operate continuously and at high speeds. Besides processing, their responsibilities also include management and archiving all the data.
After the data arrives in the cloud, it is analyzed by various software and algorithms. This can be simple data aggregation or complex machine learning. IoT data analytics is necessary to turn vast amounts of unstructured data from multiple IoT devices and sensors into valuable information and actionable insights for further decision-making.
Smart analytics help to identify patterns and errors in real-time data. Well-designed IoT system enables spotting anomalies and responding quickly to avoid undesirable situations.
Last but not least, we have a user interface. It is a visible component that allows humans to interact with connected smart devices and affect the system. This is where an end user can monitor and remotely adjust collected data and set preferences. The more user-friendly interface is, the easier interaction will be.
Communication with the IoT system can be via the device itself or remotely by smartphones, tablets, and laptops. For example, users at enterprises can adjust the temperature in cold storage or check video feeds from cameras via IoT applications on their phones.
The Internet of things, undoubtedly, has become one of the most important technologies of our century. It gave us seamless communication between people, processes, and things. It helps to live and work smarter. IoT technology ensures new business models, new products, and new customers. To really understand how IoT works and evaluate its significance, it’s necessary to know about its benefits for businesses.
Data-driven decisions. The Internet of Things has radically changed the data strategy of businesses. Of course, the data itself won’t do anything. But collected real-time information helps to find potential problems and detect patterns in a process so that you can make thoughtful decisions. Or in short, more data means better decisions.
IoT devices can collect a large amount of data in many different areas. And due to this constant stream of data, companies see trends and can identify strengths and improve weaknesses in products or processes.
Monitoring. Companies in different industries want to track workflows in real-time. And IoT platform provides such an opportunity. This feature allows checking the assets’ status, performance, internal risks, and potential dangers. Moreover, IoT trackers can immensely improve the efficiency of companies.
Automation. IoT-enabled automation has already penetrated many different industries. This feature is critical in sectors such as manufacturing. There are a lot of advantages of IoT technologies that humans can’t offer. Machines can work with more precision and speed. Robots can detect faults that the human eye may not. Having an IoT device doing most of the work at the enterprise means that you can save more time and cost. And this is the next benefit from our list.
Reduced costs. Cost Reduction is a top driver of IoT investment for many companies. The formula for enterprise cost savings consists of several elements. When businesses, with the help of IoT applications, can automate processes, reduce the risk of failure, constantly have valuable insights that support better decision-making, and reduce resource usage and time demands, this all results in significant spending cuts. From cybersecurity to workplace efficiency, IoT components impact companies’ bottom lines.
Obviously, the Internet of things technology has a massive, limitless, and bright future with huge potential. It will become the backbone of many technologies that will change our lives. And IoT-based companies, in turn, will help to pave the way for our future with minimized waste, energy efficiency, and greater personal autonomy.
IoT will continue to drive innovation in fields such as healthcare, transportation, and manufacturing, enabling more and more new solutions to tackle existing problems. It will also lead to the development of smart cities, where infrastructure and services are optimized for improved efficiency, sustainability, and quality of life. But the growth of IoT will also bring new challenges, such as privacy and security concerns.
Anyway, the integration of new technologies, such as AI and 5G, will bring even more unique possibilities to IoT and further drive its growth. So, it’s an exciting time for the Internet of things, and we expect to see even more innovative solutions emerge in the coming years.
