The Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.
The concept of IoT is characterized by two defining features:
In view of these features, the Internet of Things must employ numerous technologies to ensure automatic data transfer, analysis, and response between multiple devices. For example, automation is impossible without Artificial Intelligence, Big Data, and Machine Learning, while connectivity is greatly facilitated by cloud computing and wireless communication technologies.
Let’s see how these features result in numerous advantages of Internet of Things technologies and services. However, it is worth noting that this brief review is focused primarily on the IoT benefits for business and barely mentions the applicability for individuals and houses. Moreover, these advantages are mostly interconnected, to the point when one leads to another, causing a chain reaction of positive effects.
Thanks to IoT solutions, mundane tasks can be done automatically, so human resources may be transferred to more complex tasks that require personal skills, especially out-of-the-box thinking. This way, the number of workers can be minimized, which results in reduced costs of business operation.
Another significant benefit offered by the interconnection of smart devices is automated control over multiple operation areas, including, among others, inventory management, shipping tracking, fuel and spare parts management. For example, this approach involves using RFID tags and a corresponding network of sensors to track the location of equipment and goods.
The automated scheduling and monitoring implemented with the help of interconnected sensors enable higher efficiency of resource use, such as improved power management and water consumption. For example, simple motion detectors may save significant sums of money in electricity and water bills, thus making both small and large businesses more productive and eco-friendly.
Due to the reduced downtime periods, ensured by automatically scheduled and controlled maintenance, supply of raw materials, and other manufacturing requirements, the equipment may have a higher production rate resulting in bigger profits. Again, IoT devices greatly facilitate management within individual departments and across the whole enterprise structure.