1 IoT Fundamentals: Definitions, Architectures, Challenges, and Promises
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• The Bosch corporation defines the Internet of Things as file sharing, e-commerce,
social media, and the glue that connects things and devices. The devices can
range from sensors and security cameras to vehicles and production machines.
The connection of devices results in data that opens up new insights, business
models, and revenue streams. The insights can lead to new services complementing conventional product business [4].
• Oxford Dictionary summarizes IoT as “a proposed development of the Internet
in which everyday objects have network connectivity, allowing them to send and
receive data.”
• Finally, IDC defines the Internet of Things as “a network of networks of uniquely
identifiable endpoints that communicate without human interaction using IP
connectivity (local or globally)” [5].
As you noticed, due to rapid emergence and convergence of technologies, the
definition of IoT is evolving, and thus there are several definitions of IoT from
different points of view. However, all of them have the following fundamental
characteristics:
• Things or Devices – Things in IoT (also known as intelligent objects, smart
objects, IoT devices, or IoT endpoints) are connected objects that can sense,
actuate, and interact with other objects, systems, or people. In order to be a device
on the Internet of Things, the device must have a processing unit, power source,
sensor/actuator, network connection, and a tag/address so that it can be uniquely
identified.
• Connectivity – Connectivity empowers the Internet of Things by enabling IoT
things to be connected to the Internet or other networks. This implies that there
must be a connectivity module in each IoT device as well as an appropriate
communication protocol that the network and the device can both understand.
• Data – There is no IoT without (“big”) data collected from IoT things and indeed
“data is the new oil.” Data is the first step toward action and intelligence. Sent
information from IoT devices most often include environmental data, diagnostic,
location data, or report on their status. The data also flows back to the device, for
example, a command to tell it to sleep, or decrease power consumption.
• Intelligence – Intelligence is the key to unlock IoT potentials because of its
ability to extract insights from IoT data. For example, the combination of
artificial intelligence (AI), machine learning, data analytics, and IoT data can
avoid unplanned downtime (i.e., predictive maintenance), increase operational
efficiency, enable new and improved products and services, and enhance risk
management [6].
• Action – Actions are the consequence of intelligence. It refers to the automated
actions to be taken by the device or on the device, but also includes action from
the stakeholders in the IoT ecosystem.
• Ecosystem – IoT has to be seen and analyzed through an ecosystem perspective.
IoT things themselves, the protocols they use, the platforms on which they run,
the communities interested in the data, as well as the goals and aims of interested
parties all form the ecosystem.
5
• The Bosch corporation defines the Internet of Things as file sharing, e-commerce,
social media, and the glue that connects things and devices. The devices can
range from sensors and security cameras to vehicles and production machines.
The connection of devices results in data that opens up new insights, business
models, and revenue streams. The insights can lead to new services complementing conventional product business [4].
• Oxford Dictionary summarizes IoT as “a proposed development of the Internet
in which everyday objects have network connectivity, allowing them to send and
receive data.”
• Finally, IDC defines the Internet of Things as “a network of networks of uniquely
identifiable endpoints that communicate without human interaction using IP
connectivity (local or globally)” [5].
As you noticed, due to rapid emergence and convergence of technologies, the
definition of IoT is evolving, and thus there are several definitions of IoT from
different points of view. However, all of them have the following fundamental
characteristics:
• Things or Devices – Things in IoT (also known as intelligent objects, smart
objects, IoT devices, or IoT endpoints) are connected objects that can sense,
actuate, and interact with other objects, systems, or people. In order to be a device
on the Internet of Things, the device must have a processing unit, power source,
sensor/actuator, network connection, and a tag/address so that it can be uniquely
identified.
• Connectivity – Connectivity empowers the Internet of Things by enabling IoT
things to be connected to the Internet or other networks. This implies that there
must be a connectivity module in each IoT device as well as an appropriate
communication protocol that the network and the device can both understand.
• Data – There is no IoT without (“big”) data collected from IoT things and indeed
“data is the new oil.” Data is the first step toward action and intelligence. Sent
information from IoT devices most often include environmental data, diagnostic,
location data, or report on their status. The data also flows back to the device, for
example, a command to tell it to sleep, or decrease power consumption.
• Intelligence – Intelligence is the key to unlock IoT potentials because of its
ability to extract insights from IoT data. For example, the combination of
artificial intelligence (AI), machine learning, data analytics, and IoT data can
avoid unplanned downtime (i.e., predictive maintenance), increase operational
efficiency, enable new and improved products and services, and enhance risk
management [6].
• Action – Actions are the consequence of intelligence. It refers to the automated
actions to be taken by the device or on the device, but also includes action from
the stakeholders in the IoT ecosystem.
• Ecosystem – IoT has to be seen and analyzed through an ecosystem perspective.
IoT things themselves, the protocols they use, the platforms on which they run,
the communities interested in the data, as well as the goals and aims of interested
parties all form the ecosystem.