Internet of Things (IoT)

Contributor(s): Ivy Wigmore
This definition is part of our Essential Guide: The essential guide to supply chain management best practices

The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.

A thing, in the Internet of Things, can be a person with a heart monitor implant, a farm animal with a biochip transponder, an automobile that has built-in sensors to alert the driver when tire pressure is low -- or any other natural or man-made object that can be assigned an IP address and provided with the ability to transfer data over a network. 

IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS), microservices and the internet. The convergence has helped tear down the silo walls between operational technology (OT) and information technology (IT), allowing unstructured machine-generated data to be analyzed for insights that will drive improvements.

Kevin Ashton, cofounder and executive director of the Auto-ID Center at MIT, first mentioned the Internet of Things in a presentation he made to Procter & Gamble in 1999. Here’s how Ashton explains the potential of the Internet of Things:

“Today computers -- and, therefore, the internet -- are almost wholly dependent on human beings for information. Nearly all of the roughly 50 petabytes (a petabyte is 1,024 terabytes) of data available on the internet were first captured and created by human beings by typing, pressing a record button, taking a digital picture or scanning a bar code. 

The problem is, people have limited time, attention and accuracy -- all of which means they are not very good at capturing data about things in the real world. If we had computers that knew everything there was to know about things -- using data they gathered without any help from us -- we would be able to track and count everything and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling and whether they were fresh or past their best.”

IPv6’s huge increase in address space is an important factor in the development of the Internet of Things. According to Steve Leibson, who identifies himself as “occasional docent at the Computer History Museum,” the address space expansion means that we could “assign an IPV6 address to every atom on the surface of the earth, and still have enough addresses left to do another 100+ earths.” In other words, humans could easily assign an IP address to every "thing" on the planet. An increase in the number of smart nodes, as well as the amount of upstream data the nodes generate, is expected to raise new concerns about data privacydata sovereignty and security. 

Practical applications of IoT technology can be found in many industries today, including precision agriculturebuilding management, healthcare, energy and transportation. Connectivity options for electronics engineers and application developers working on products and systems for the Internet of Things include:

Although the concept wasn't named until 1999, the Internet of Things has been in development for decades. The first internet appliance, for example, was a Coke machine at Carnegie Melon University in the early 1980s. The programmers could connect to the machine over the internet, check the status of the machine and determine whether or not there would be a cold drink awaiting them, should they decide to make the trip down to the machine.

Dr. John Barrett explains the Internet of Things in his TED talk:

See also: ubiquitous computing, Internet of Things security (IoT security)


This was last updated in July 2016

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The IoT is the best work of technology ever!!
@Thindross - really?

Even if we limit it to Information Technology there are far better examples. From Blackberry and smartphones in general to medical devices and assistive technologies.
With IoT we can digitalise whole world. A lot of things going to come in IoT domain.
Internet of things will be the new trend soon. All of the technology that we use will depend on the internet. Gustavo Woltmann
I am concerned about security. The society of IoT seems to have already begun without having solved the security problems. Some people will learn what the risk is and try to get the benefit of IoT, but, maybe some people can not neglect the risk and will not even try.
The IoT has worked in everything all over the world. It is sensitive to do any new thing connected with network.
There lots of talk on IoT...but I need to know how to start in the field of IoT in the world of industrialization.
Dear friends:
Quite interesting the issue. However I am getting started with much difficulties due to machine/software language and usage thereof.
I would like to continue this conversation toward learning more and more thereabout.
Jose Ramirez Carbonel
Awesome information given. Thank you so much sir!
Audio isn't too clear. Pity.
Excellent. Thank you.
Good opportunity for small business.
Very useful for an ICT student like me. Thanks for doing so.



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