The Internet of Things (IoT) has expanded its reach to more than 50 billion Internet-connected devices, translating into a $14.4 trillion business opportunity. Naturally, with this vast opportunity comes massive hype about how IoT benefits various industries and changes how businesses operate.
Disruptive concepts like IoT, cloud-native architecture, artificial intelligence (AI), and machine learning already impact our everyday lives. These technologies are evolving at breakneck speed, which means that organizations simply cannot afford to ignore IoT benefits if they want to keep up with competitors.
What is IoT?
The Internet of Things is a network of nodes (physical devices, objects, AI entities, big data, wireless networks, or simply “things”) equipped with sensors, software, and other technologies that connect to the Internet and exchange and process data. These interconnected devices (or things) range from computing devices and household objects to sophisticated industrial tools.
IoT systems have the power to collect and share data and communicate without any human interference, or only minimal.
Through this type of hyper-connectedness, IoT-based digital systems can record, monitor, and adjust the interactions between connected things, creating a dynamic and scalable environment where the physical world interacts with the digital.
IoT architecture explained
IoT architectures are comprised of numerous components, including sensors, actuators, protocols, cloud services, and differentiated layers, which enable administrators to evaluate and maintain the systems.
What are ‘things’, ‘sensors’ and ‘actuators’ in IoT?
Things are objects and devices embedded with sensors that collect and transfer data over a network.
Actuators enable things to act—increasing or decreasing the engine rotation speed in a car, for example. Things can be vehicles, refrigerators, buildings, streetlamps, production machinery, and rehabilitation equipment, to name a few.
Sensors are not necessarily physically attached to things, but they do keep a close eye on the environment surrounding them.
What are gateways?
Gateways allow data to travel from things to the cloud and vice versa. The connectivity between nodes and cloud-based components allows data preprocessing and filtering to take place before moving the actual data to the cloud.
Gateways reduce the volume of data that administrators need to process and store. Gateways also pass on control commands from the cloud to things, which then carry out these commands via actuators.
What is a user application?
A user application is the IoT’s software component (mobile or web-based) that connects users to an IoT system and allows them to control, monitor, set automatic actions when specific data goes through sensors, and maintain the smart things in the IoT network.
IoT benefits for the high-tech industry
Real-time data tracking
Often referred to as the “heart of IoT,” real-time data tracking helps organizations collect valuable insights in a timely manner and take immediate action based on these insights. IoT, AI, big data, and machine learning are merging to give businesses new opportunities to make decisions based on data in real time.
Data analysts can detect trends and gain insights (often visualized in diagrams, schemes, and infographics) about how to make their business more efficient and productive.
Improved system performance
In an IoT-based ecosystem, administrators can monitor their assets around the clock, which is a crucial and frequently overlooked prerequisite for any successful company.
With IoT, applications use embedded sensors to deliver real-time data on system flaws and give you practical advice about how to improve your infrastructure and streamline your workflows.
IoT applications can also help teams avoid potentially disastrous events, as IoT can detect emergencies and switch off specific components of your system to prevent malfunctioning.
Improve product monetization and sales
Modern organizations are already reducing repetitive and time-consuming tasks through IoT-based automation.
According to a recent Harvard Business Review study, 58% of businesses report improved overall collaboration via the use of IoT devices, while nearly 80% state that IoT applications boosted the effectiveness of their IT team. Another study conducted by Aruba reports that 75% of businesses see increased profitability after implementing IoT systems.
IoT also helps companies optimize office floor plans and resources for more efficient management and workflows. The real-time data analytics of IoT help organizations improve lead generation and provide a bird’s-eye view of employee productivity. This gives organizations a better understanding of why workflow bottlenecks happen and helps teams stay ahead of demand.
How IoT benefits innovation
IoT and 5G
5G technology is at the forefront of cellular mobile communication development, and these new networks are paving the way for an environment in which IoT will reach its full potential.
5G cellular networks and IoT create an exciting symbiosis that will usher in a new age of data processing speed, low latency, and increased bandwidth and power efficiency.
When IoT ecosystems merge with 5G networks, they can contribute to advancing everything from AI-enabled robots in factories and automated supply chains to self-driving vehicles and smart grids for renewable energy.
Edge computing
According to Gartner, 75% of enterprise data will be processed outside cloud-based or traditional data centers by 2025. One of the main drivers of this trend is edge computing, the technology that stores data in micro-centers (as opposed to the cloud or legacy servers).
When data is stored locally, processing happens faster, more efficiently, and cost-effectively because the information is immediately available to an IoT device. This reduces the network “stress” and bandwidth needed for maximum data flow.
Smart retail stores
IoT benefits physical stores by enabling them to use video feeds, smart lighting devices, and Wi-Fi-enabled monitoring software to capture and analyze data on customer behavior and traffic patterns (i.e. how customers interact with specific products on display, how much time they spend in specific aisles).
Retailers can use IoT-based customer behavior data to strategically adjust their shop layouts and product displays, thus improving sales.
Smart homes and home security
IoT-enabled smart home systems allow consumers to connect sensors, alarms, cameras, lights, thermostats, fans, and refrigerators to Wi-Fi. Users typically control smart home devices using a smartphone app with the goal of improving household energy efficiency, convenience, and security.
Smart cities
IoT networks are laying the groundwork for smart cities through better automation, connectivity, and network usage.
Examples include improved traffic light systems that adjust according to real-time traffic data and the creation of smart common areas and neighborhoods. Smart sensors within neighborhoods allow cities to process granular data, including smart car connectivity, shared car use, sewage flow rates, building occupancy, and the maintenance of temperature control systems.
Connected smart cars
IoT-enabled cars generate car-related diagnostic information, including oil levels, tire pressure, and fuel consumption. For example, through an IoT application, a driver gets alerts when something goes wrong with the engine.
However, the benefits of IoT on smart cars go beyond diagnostic data. The advent of connected apps, voice search, remote monitoring, smart navigation, and real-time traffic data, along with the advancements in self-driving cars, will reshape the future of transportation and improve overall security.
Healthcare devices
According to Business Insider, the Internet of Medical Things (IoMT) market is expected to reach almost $160 billion in 2022 (up from $41 billion in 2017). This is not surprising, as IoT technology is highly applicable to healthcare. Everything from electronic health records, smart pills, smart home care, personal health care management, and remote patient monitoring – all utilize IoT devices and data analytics to improve patient care.
How IoT benefits will shape the future
The Internet of Things is already having a significant impact on our everyday lives. However, this groundbreaking data processing and automation movement is still in its nascent years and has yet to reach its full potential.
As IoT applications and networks reach new levels of functionality—especially when coupled with AI, ML, and 5G—they will only continue to improve business decision-making, workflow efficiency, automation, convenience, wellness, energy conservation, and creative thinking across industries and ultimately make the world a better place.
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