【Internet of Things】What is the Internet of Things - A Complete Beginner’s Guide

Amazon Echo. FitBit. Even your coffee maker.

While you might think "one of these things is not like the others," they are all examples of the Internet of Things (IoT). They are everyday items that can connect to the internet, be recognized by other devices, and provide information to a database. The Internet of Things describes Internet V.2, where data is created by things. Digital innovation expert Kevin Ashton is credited with coining this term to define IoT: "If we had computers that knew everything, we could track and count everything, significantly reducing waste, loss, and cost. We would know when things need replacing, repairing, or recalling, and whether they were fresh or past their best."

Given that IoT has turned the physical world into a giant information system, how will IoT affect businesses in 2017? This is just the beginning of IoT. While some may think IoT has had a rocky start with a lower adoption rate than expected, most agree that IoT is growing and will continue to grow in 2017 and beyond. High-end predictions of connected devices for 2020 remain to be seen, but it’s certain that companies learning to use the data created by IoT will be the ones to survive and thrive.

Due to IoT, several new products and innovations have emerged.

• Smarter Homes: Smart home technology saw significant adoption in 2016; experts believe that Amazon sold 9 times more during the 2016 holidays than the same period last year. A survey shows that smart home technology will become even more important in 2017, with 70% of people who purchase smart home devices more likely to buy more.
• Wearable Technology: Wearable products sold 78.1 million units in 2015, and the market is expected to grow to 411 million by 2020. All wearable technology, including smartwatches, fitness trackers, VR headsets, etc., generate vast amounts of data that businesses are just beginning to understand and apply.
• Smart Cars: It is estimated that a staggering 82% of cars will be connected to the internet by 2021. Application integration, navigation and diagnostic tools, and even self-driving cars are ways IoT is changing the automotive industry. The automotive industry is heavily investing in determining the next IoT innovations.
• Changing How We Do Business: We are just scratching the surface of how IoT provides new products and possibilities for consumers, but it also affects our businesses. Here are just a few ways:
• Inventory Management: Anyone who has spent days or weeks counting small parts will appreciate the beauty of IoT for inventory management. Smart devices will eventually be able to automatically track inventory.
• Consumer Demand: Consumers will get used to smart devices and start expecting "smart" behavior in all aspects of their lives. Inventors will have a field day providing new gadgets, furniture, appliances, etc., to meet this new demand and provide new revenue streams for businesses.
• Shorter Buying Cycles: Businesses will need to adapt to shorter buying cycles and consumer expectations for instant gratification supported by IoT.
• Learning from Data: The amount of data generated from smart devices can help businesses understand how and where to innovate most effectively.
• Remote Work: As IoT becomes more integrated, there will be more opportunities for remote work for tasks that needed to be done on-site.

Without a doubt, IoT is just beginning. Companies that start developing or expanding IoT technology in their products, services, and operations now are the ones that will gain a competitive advantage. Of course, like most new innovations, IoT has its downsides; currently, most IoT devices lack security, making them easy targets for hackers. Last year, millions of IoT devices were hacked and used to occupy some of the internet's infrastructure. In the future, IoT manufacturers will focus more on security, and users should take all precautionary measures to protect their devices.