The Internet of Things (IoT) refers to physical objects (or groups of objects) with sensors, processing ability, software, or other technologies that connect and exchange data with other devices and systems over the internet or other communications networks. The IoT is often used to collect data, which companies can collect, process, and analyze to help make business decisions.
The IoT is sometimes considered a misnomer because devices don’t have a connection to the public internet — they only have to be connected to a network with a unique address or ID.
The first example of IoT is an intelligent Coca-Cola vending machine created by students at Carnegie Mellon University. Students installed micro-switches in the Coke machine and connected the switches remotely to the main departmental computer. Developers wrote a server program to monitor the number of bottles in the machine and whether they were cold. This information was available over the University’s local network.
Kevin Ashton came up with the term IoT in 1999 as part of his research and development role at Procter & Gamble. He saw radio frequency identification (RFID) tags and other sensors as a way to gain critical supply data. For example, they could track warehouse inventory, product placement, and whether they had sold their products. He researched the concept at MIT, where he co-founded the Auto-ID Center. The Center helped build the foundation of the IoT.
It’s difficult to calculate the number of devices making up the IoT. Statista predicted a jump from 13.8 billion units in 2021 to a whopping 30.9 billion units by 2025.
The use cases for using the IoT to collect and respond to data are prolific, ranging from wearable tech to home appliances, vehicles, industrial machinery, health tech, and city applications like streetlights and parking meters.
Components that make up the IoT include:
The first step in the IoT occurs when one or more sensors in a device collect one or multiple kinds of data. These sensors connect to an IoT platform that integrates the data collected from the devices and then analyzes the data.
An IoT device doesn’t purely receive information. Instead, many IoT devices include the capacity for communication from the end-user to the device. For example, smart home applications and devices are often linked to the IoT. You might have a sensor on your thermostat synced with a temperature control app (UI) on your phone. You can use the app to connect to the thermostat to increase or decrease the temperature. Then, the thermostat communicates with the app to indicate that the change has been made.
There are several benefits to using the IoT, including those discussed below.
Because IoT involves direct communication between devices, objects, and sensors without any human interference, IoT supports automation. Connected devices work autonomously, meaning you can use the IoT to automate mundane tasks, like locking and unlocking doors, turning lights on and off, and other short — but tedious — tasks.
IoT’s ability to automate mundane tasks means that human resources, like the number of staff and the division of staff labor, can be transferred to more complex, dynamic tasks, like business management, marketing, and problem-solving positions. This can help minimize the number of employees needed, reducing business costs.
Additionally, automation makes it easier to use resources and assets more efficiently to reduce overall costs. For example, you can connect HVAC systems to the internet to sync with local time and weather conditions. Based on this data, the HVAC system can turn on or off (depending on the outdoor conditions or time of day) to minimize the time the system is running and prevent it from running unnecessarily. This way, electricity consumption will decrease, and costs will decrease.
The automated interconnectivity of IoT devices makes it easy to manage different operational tasks. Because IoT devices connect autonomously, you don’t need to oversee or manage operational areas like tracking shipping, inventory, spare parts, or performing the building infrastructure tasks mentioned before, like controlling the building’s lighting and heating/cooling. Automating these tasks means you don’t have to track and follow up on whether or not these daily tasks have been completed.
Consider the following use cases to see IoT’s role within an organization. You can implement IoT devices, sensors, and objects in each area to increase workplace safety.
IoT devices can be seen used in workplace pandemic planning. For example, thermal imaging cameras can monitor workers’ temperatures. Occupancy sensors can also ensure desks are set a specified distance apart and monitor social distancing and traffic around the office.
smart cameras can monitor a business location to maintain workplace security. If there’s a disturbance, they can trigger actions like sounding an alarm on any other device connected to the internet to notify employees and management of potential security concerns.
You can also use IoT sensor data to gain remote insights. Smart water devices use sensors to monitor daily water use to track anomalies or incidents `within the building’s maintenance and architecture that may lead to flooding. Any abnormalities will trigger an alert to the office manager and turn the water service off to help save water and prevent building damage.
One of the biggest problems is that cybercriminals can hack IoT networks to gain information (such as in the case of industrial espionage) or cause a disturbance that could have devastating impacts.
For example, in 2021, a Florida water treatment plant was hacked. Intruders increased the water’s sodium hydroxide levels by over 100 times. Fortunately, the staff found out before the water left the facility.
Electric Vehicle (EV) chargers could also be targeted. In this case, hackers could steal electricity, access user accounts and payment networks, impede charging, or even damage the electricity grid.
In health settings, such as hospitals, IoT security usually focuses on the risk of essential equipment like insulin pumps or heart monitors being hacked. But the reality is that even accessing the elevators and making them inoperable is enough to cause significant challenges for health practitioners and their patients.
And an attack on a seemingly low-risk device such as a smart fridge can act as a conduit for a hacker to gain access to the internal networks of a workplace. They could insert viruses or ransomware into software, steal data, or even remotely disable security systems or smart locks.
A challenge often underestimated in IoT is privacy. Every day organizations collect all kinds of data through email, digital loyalty cards, Internet browsers, online maps, and wearable tech. Third-party companies buy much of this data.
Research in The New York Times in 2018 revealed that news and weather apps collect data that can track the app users’ location. The tracking information included a detailed map of where the people were, with an accuracy of up to a few yards. This data continued to update throughout the day and, in some cases, over 14,000 times.
Even with pools of anonymized data from various divergent sources, you can combine them in ways that can identify people. For example, data from public transport tickets, social media posts, and mapping could identify a child traveling to school.
Fortunately, thoughtful planning and good security practices can mitigate many IoT security risks. You should embed security into the standard workflow throughout all facets of your company and inform everyone, not just the IT or security department.
Companies should keep an active audit of all of their connected devices. All should have their default passwords changed to a unique password and implement two-factor authentication (2FA). Additionally, virtual private networks (VPNs) can add a security layer for devices connected to the Internet.
Furthermore, you should purchase smart devices only from reputable brands with good security practices and reputations. You should receive notice of new firmware or patches when available for all reputable IoT devices. And these should be installed promptly to ensure connected devices meet the latest security practices.
Another good practice is limiting IoT devices to a dedicated network to stop the risk of hackers accessing sensitive information such as customer data.
