Today, everyone is talking about the Internet of Things or IoT. The current world is driven by technology. Therefore, it has become vital for organizations, especially the tech industry, to understand and utilize the importance of IoT. In this blog, we will cover the Internet of Things and why it matters a lot in modern times.
What is IoT (Internet of Things)?
According to the European Commission, IoT refers to merging physical and virtual worlds to create smart environments. In the world of business, Intel refers to IoT as a “robust network of devices” embedded with electronics, software, and sensors. These allow the devices to exchange and analyze data.
IoT or the Internet of Things refers to connecting physical objects to other devices via the internet. It refers to a vast number of things connected to the internet so that they can share data with other things such as IoT applications, connected devices, and many more.
The internet-connected devices use built-in sensors for collecting data (and acting on it). These devices can vastly improve the way we work and live. Real-world examples of IoT devices are smart homes where light and temperature can be automatically adjusted.
Where did IoT come from?
The term ‘Internet of Things’ was coined by entrepreneur Kevin Ashton, one of the founders of the Auto-ID Center at MIT. Being part of a team, he discovered how to link objects to the internet through an RFID tag. He first mentioned the phrase ‘Internet of Things’ during a 1999 presentation—and the rest is history.
Ashton may have been the first to use the term Internet of Things, but the concept of connected devices – particularly connected machines – has been around for a long time. The basic idea of a network of intelligent devices was first discussed in 1982, when a modified Coca-Cola vending machine at Carnegie Mellon University became the first ARPANET-connected device and could report its inventory and whether freshly loaded drinks were cold or not.
However, the modern view of IoT is based on Mark Weiser’s 1991 paper on ubiquitous computing, “The Computer of the Twenty-First Century,” as well as academic venues such as UbiComp and PerCom. The field gained momentum when Bill Joy envisioned device-to-device communication as a part of his “Six Webs” framework, presented at the World Economic Forum at Davos in 1999.
We now live in a world where the number of IoT-connected devices is more than that of people. These devices have become a part of our everyday lives in the form of wearables as well. Above all, these devices communicate with each other via networks or cloud-based platforms linked to IoT. The real-time insights gained from IoT data fuel digital transformation. As a matter of fact, IoT can potentially and significantly improve health and safety, business operations, industrial performance, and global environmental and humanitarian issues.
How does IoT (Internet of Things) work?
Being a massive network of interconnected devices, IoT devices have embedded sensors within the network map that can detect their surroundings. Moreover, these devices include appliances like phones, air conditioners, cars, and others, where they can store information in the form of data.
These sensors continuously emit data about their surroundings including the device operation information. IoT has evolved into a platform that is used for disposing of data collected by various devices. This platform also includes cloud servers and large databases, including the stability to act on data. In the end, this platform thoroughly analyzes data for collecting important details and returns instructions based on the data provided.
Importance of IoT (Internet of Things)
Currently, conversations around IoT are increasing all across the globe as we tend to understand its importance and how it will impact our lives in the coming days. We are also trying to understand its possible challenges and opportunities as more and more devices begin joining the IoT. In the present moment, the best thing we can do is understand the importance of IoT and why it matters to us now and in the future.
Speaking of the importance of IoT, there are countless. It is currently being used in prominent sectors like healthcare, manufacturing, logistics, banking, finance, etc. In fact, the Industrial Internet of Things, or IIoT market is projected to reach a valuation of $1.3 trillion by 2032. As a result, manufacturers are already a step closer to embracing the much-anticipated industry 4.0. Moreover, IoT has already been facilitating industries like healthcare in modernizing equipment and digitizing patient care.
Given its extensive applications, here are the following advantages of the Internet of Things:
- Provides businesses with valuable data for generating more revenue
- Boosts employee productivity
- Saves time and money for an organization
- Enables a better decision-making process
- Improves process efficiency, asset utilization, and productivity
- Benefits in real-time insights and analytics to make better decisions
- Benefits people in creating opportunities in business and industries
These are just the tip of the iceberg as the applications and potential of IoT are limitless.
Why does IoT matter?
According to Accenture, the industrial internet of things could add $14.2 trillion to the global economy by 2030. As a matter of fact, the concept of IoT is one of the most fascinating technology trends presently.
Based on its myriad of applications, it is quite clear that the importance of IoT is extensive. IoT not only improves the consumers’ life but is also cost-effective for businesses. While these viewpoints are equally important, it is also vital to note that the increasing importance of IoT can impact the future of numerous industries.
To begin with, IoT can significantly streamline our daily activities, improve health, and much more. In short, it has the potential to simplify our lives to a great extent. When we ask ourselves why IoT matter in the modern world, we can conclude the following two points:
- From the perspective of the consumer, IoT has the potential to streamline our daily activities, lower our utility bills (and energy usage), improve our healthcare, keep us out of traffic, and much more. It has the potential to make our lives easier.
- From a business standpoint, IoT has the potential to reduce costs, increase efficiencies, improve customer service, accelerate decision-making, and much more. It has the potential to provide a competitive advantage and to reward those innovators who adapt to it first.