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What Is Internet of Things and How Does IoT Work?

What is Internet of Things

The Internet of Things concept, which is also known as IoT, is a new technology. This new technology ensures the communication of smart devices with each other. Today, the internet of things covers many areas including household appliances, smart cities, vehicles, and even industrial operations.

The generated and collected data in this technology is called big data. We will be covering everything you may want to learn about this new technology in this guide.

What Is the Internet of Things?

The Internet of Things refers to all systems that can transfer data over a network without the need for any human intervention. Computing devices, mechanical and digital machines, objects, animals, or unique identifiers provide the data for the transfer.

Increasingly more organisations in various industries benefit from IoT technology for various purposes. Some of these purposes include working more efficiently, providing better customer services, improving the decision-making processes, increasing the value of the products and company, and better understanding the customers.

Kevin Ashton used the Internet of Things concept for the first time in a presentation in 1991. The Internet of Things allows the communication of many devices and machines from watches to televisions.

An Example for Internet of Things Technology

Let’s assume that you have a smartwatch on your wrist right now. Just like all smartwatches, this one also has sensors that detect how much distance you travel, how many steps you take, and your heart rate during the day.

A client such as a computer or a smartphone analyzes the data collected by this smartwatch. In this way, we have a better knowledge about our habits, and we can make decisions accordingly.

Here, the communication between these two devices, i.e., the smartwatch and your smartphone, is the most basic feature that makes up the internet of things.

How Does the Internet of Things Work?

An Internet of Things ecosystem consists of web-enabled smart devices using onboard processors, sensors, and communication hardware to collect, send and process the obtained or generated data.

In other words, the Internet of Things is a network of devices. Communication technologies connect this network to build systems. These systems monitor, collect, manipulate, and analyze data by providing valuable information. Thus, this valuable information enables industrial companies to make business decisions faster.

Below, you can find the main components of an industrial Internet of Things system:

  • Analytics, applications, and people that generate business insights from raw data.
  • Data communication infrastructures such as cloud systems.
  • Smart assets that can detect, transmit and store information about themselves. These assets can be applications, controllers, sensors, and security components.

Internet of Things devices share the data collected by the sensors over an IoT gateway, or cloud for local analysis, or to another end device over the cloud, where the data will be analyzed.

Sometimes these devices communicate with each other and act according to the information they receive from each other. The devices act without human intervention, but people can also interact with these devices. In general, this interaction includes configurations, commands, or accessing the data.

Connection, network, and communication protocols used with these web-enabled devices largely depend on the specific IoT applications in the ecosystem.

What Are the Benefits of the Internet of Things?

The Internet of Things technology offers a wide range of benefits for organisations. Some of these benefits include:

  • Boosting revenue
  • Making better business decisions
  • Integrating and adapting business models
  • Increasing employee productivity
  • Saving money and time
  • Improving customer experience
  • Monitoring business processes

Below, we have discussed some of these benefits in detail.

IoT Encourages Rethinking

The Internet of Things encourages organisations to rethink their approaches for their businesses, industries, and markets. One of the most prominent benefits of the Internet of Things is predictive maintenance.

Predictive maintenance allows organisations to use real-time data generated from IoT systems to predict failures in machines. This enables organisations to take action to solve problems before failure occurs.

IoT Improves Field Services

The Internet of Things technology is also beneficial in improving field services. IoT technologies help field service technicians to identify potential problems with customer equipment before it becomes a big problem.

In this way, it allows technicians to fix problems before they become a problem for the customer.

IoT Allows Asset Tracking

Asset tracking is another IoT benefit. Suppliers, manufacturers, and customers can use asset management systems to track the location, condition of products throughout the supply chain.

The system sends instant notifications to partners if the goods are damaged or at risk of being damaged. In this way, partners will have a chance to take immediate or preventive action for a solution.

IoT Improves Customer Satisfaction

Without a doubt, Internet of Things technologies provide better customer satisfaction. When the products are connected to the internet of things, the manufacturer can obtain and analyze data on how customers use their products.

Thus, this allows manufacturers and product designers to adapt the future designs according to the customer experiences and create more customer-centric product roadmaps.

IoT Improves Facility Management

Since the manufacturing equipment is sensitive for wear and tear under certain conditions within the facility, the IoT technology can monitor and track factors such as vibrations, temperatures, and suboptimal operating conditions via sensors.

Internet of Things and Big Data

Today, the Internet of Things technology covers a range from small home appliances to smart cities. Of course, this technology gathers and generates a huge amount of data. In this regard, Big Data refers to this huge amount of data.

Big Data provides meaning to the data used on the Internet of Things technology and compares it with other data clusters to analyze it. Undoubtedly, big data has great importance.

If you have a car and live in a crowded city like London, it is highly possible that you are looking for a free parking lot at least a few times a day. The signs that tell Full or Vacant at the entrance of the parking lots can be a great example of this technology.

The sensors in this parking lot analyze the vacancy rates. When this rate is analyzed with the time of the day, data is generated that allows us to analyze the hours at which the parking lot is full or vacant.

What Is Big Data?

Big Data is the result of the collection of all digital data in our lives in one place. As a result, people or artificial intelligence analyzes this data and it is quite useful for many of us in our daily lives.

We use Big Data in all areas especially in sectors such as banking and retail, where customer behavior is of great importance and should be analyzed. In recent years, the importance of big data has been understood by the states and has been used in various fields.

We use big data in the early diagnosis of diseases or medicine development in the field of healthcare and to prevent crimes or to make improvements in the education system.

A well-constructed big data provides important benefits in the decision-making processes of companies and gives companies a competitive advantage. Companies that are aware of this situation benefit from big data in many areas such as marketing, sales, and production.

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