The term IoT, or Internet of Things, refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves. Thanks to the advent of inexpensive computer chips and high bandwidth telecommunication, we now have billions of devices connected to the internet. This means everyday devices like toothbrushes, vacuums, cars, and machines can use sensors to collect data and respond intelligently to users.

The Internet of Things integrates everyday “things” with the internet. Computer Engineers have been adding sensors and processors to everyday objects since the 90s. However, progress was initially slow because the chips were big and bulky. Low power computer chips called RFID tags were first used to track expensive equipment. As computing devices shrank in size, these chips also became smaller, faster, and smarter over time.

The cost of integrating computing power into small objects has now dropped considerably. For example, you can add connectivity with Alexa voice services capabilities to Microcontroller Units (MCU) with less than 1MB embedded RAM, such as for light switches. A whole industry has sprung up with a focus on filling our homes, businesses, and offices with IoT devices. These smart objects can automatically transmit data to and from the Internet. All these “invisible computing devices” and the technology associated with them are collectively referred to as the Internet of Things.

A typical IoT system works through the real-time collection and exchange of data. An IoT system has three components:

• Smart devices
  This is a device, like a television, security camera, or exercise equipment that has been given computing capabilities. It collects data from its environment, user inputs, or usage patterns and communicates data over the internet to and from its IoT application.
• IoT application
  An IoT application is a collection of services and software that integrates data received from various IoT devices. It uses machine learning or artificial intelligence (AI) technology to analyze this data and make informed decisions. These decisions are communicated back to the IoT device and the IoT device then responds intelligently to inputs.
• A graphical user interface
  The IoT device or fleet of devices can be managed through a graphical user interface. Common examples include a mobile application or website that can be used to register and control smart devices.

Let’s look at some examples of IoT systems in use today:

• Connected cars
  There are many ways vehicles, such as cars, can be connected to the internet. It can be through smart dashcams, infotainment systems, or even the vehicle's connected gateway. They collect data from the accelerator, brakes, speedometer, odometer, wheels, and fuel tanks to monitor both driver performance and vehicle health. Connected cars have a range of uses:
  -Monitoring rental car fleets to increase fuel efficiency and reduce costs.
  -Helping parents track the driving behavior of their children.
  -Notifying friends and family automatically in case of a car crash.
  -Predicting and preventing vehicle maintenance needs.
  
• Connected homes
  Smart home devices are mainly focused on improving the efficiency and safety of the house, as well as improving home networking. Devices like smart outlets monitor electricity usage and smart thermostats provide better temperature control. Hydroponic systems can use IoT sensors to manage the garden while IoT smoke detectors can detect tobacco smoke. Home security systems like door locks, security cameras, and water leak detectors can detect and prevent threats, and send alerts to homeowners.
  
  Connected devices for the home can be used for:
  -Automatically turning off devices not being used.
  -Rental property management and maintenance.
  -Finding misplaced items like keys or wallets.
  -Automating daily tasks like vacuuming, making coffee, etc.
  
• Smart cities
  IoT applications have made urban planning and infrastructure maintenance more efficient. Governments are using IoT applications to tackle problems in infrastructure, health, and the environment. IoT applications can be used for:
  -Measuring air quality and radiation levels.
  -Reducing energy bills with smart lighting systems.
  -Detecting maintenance needs for critical infrastructures such as streets, bridges, and pipelines.
  -Increasing profits through efficient parking management.
  
• Smart buildings
  Buildings such as college campuses and commercial buildings use IoT applications to drive greater operational efficiencies. IoT devices can be use in smart buildings for:
  -Reducing energy consumption.
  -Lowering maintenance costs.
  -Utilizing work spaces more efficiently.

Industrial IoT (IIoT) refers to smart devices used in manufacturing, retail, health, and other enterprises to create business efficiencies. Industrial devices, from sensors to equipment, give business owners detailed, real-time data that can be used to improve business processes. They provide insights on supply chain management, logistics, human resource, and production – decreasing costs and increasing revenue streams.

Let’s look at existing smart industrial systems in different verticals:

Manufacturing
Enterprise IoT in manufacturing uses predictive maintenance to reduce unplanned downtime and wearable technology to improve worker safety. IoT applications can predict machine failure before it happens, reducing production downtime. Wearables in helmets and wristbands, as well as computer vision cameras, are used to warn workers when they are in danger of being injured.

Retail
IoT applications in retail improve the customer experience and provide valuable insights to retailers. Retailers use IoT technology to optimize their operations, track inventory, analyze customer behavior, and personalize marketing messages.

Healthcare
Healthcare IoT applications increase patient engagement and provide physicians with better insights into their patients’ health. Wearable medical devices monitor patients in real time and provide remote patient monitoring, reducing the need for hospital visits.

Transportation and logistics
IoT applications in transportation and logistics help businesses optimize their supply chains and fleet management. IoT technology helps companies track the location of goods in transit, monitor the condition of perishable items, and optimize route planning to reduce delivery times.

Agriculture
IoT applications in agriculture help farmers increase crop yields and reduce resource consumption. Sensors in the field collect data on soil moisture, temperature, and humidity, allowing farmers to make data-driven decisions about irrigation and fertilization.

Smart buildings
IoT applications in smart buildings, as mentioned previously, help businesses reduce energy consumption and improve workplace productivity. Smart building technology includes energy-efficient lighting, automated HVAC systems, and occupancy sensors that adjust building systems based on occupancy levels.

Energy
IoT applications in energy help utility companies optimize their operations and improve grid reliability. Smart meters and sensors in the grid monitor energy consumption and identify areas of inefficiency, allowing utilities to reduce costs and improve service reliability.

While IoT technology offers many benefits, it also presents several challenges. Security is a major concern, as IoT devices are vulnerable to cyberattacks. Privacy is another concern, as IoT devices collect vast amounts of data about users’ behavior and preferences. Additionally, interoperability is a challenge, as IoT devices from different manufacturers may not be compatible with each other.

Despite these challenges, IoT technology has the potential to transform industries and improve people’s lives. By connecting devices and collecting data, IoT technology enables businesses to make better decisions and deliver more personalized experiences to their customers. As IoT technology continues to evolve, it will play an increasingly important role in shaping the future of business and society.