AI-generated summary
The Internet of Things (IoT) refers to the network of physical objects—such as devices, sensors, machines, and people—that are identifiable, locatable, and controllable via the Internet. IoT’s core function is to collect data from these connected “things” through sensors and use actuators to trigger actions or decisions based on this data. This technology enables optimization of processes by automating tasks, reducing time and costs, and improving quality. For example, in agriculture, soil moisture sensors gather data that is analyzed to control irrigation systems automatically, ensuring optimal water use depending on soil type and crop conditions.
IoT systems consist of several components: the physical things themselves, system-on-chip (SoC) microcontrollers that connect devices to the Internet, various sensors that collect data, actuators that perform actions, specific communication protocols for data exchange, and application layers that provide user services. Most IoT solutions operate on cloud platforms, often combined with edge computing to process data closer to the source. Leading providers like Amazon Web Services dominate this space. To handle the vast data generated by IoT, Big Data analytics and Artificial Intelligence are employed, forming a business intelligence layer that analyzes data and suggests actionable insights. This integrated approach enhances decision-making and operational efficiency across industries.
Learn what the Internet of Things is, how it works and what its components are.
The Internet of Things, IoT refers to the idea of things that are legible, recognizable, locatable, addressable, and/or controllable over the Internet. IoT solutions encompass devices, sensors, people, data, and machines and the interactions between them.
Business Insider Intelligence forecasts that “by 2023, consumers, businesses, and governments will install 40 billion IoT devices globally.”
The main function of the Internet of Things is to collect information from things through sensors, so that with this information decisions can be made or actions triggered through actuators. These are:
- Optimize processes (in time, cost, quality); in many cases, by automating them.
- Collect information that allows preventive and corrective maintenance to be carried out in real time, or business decision-making.
For example, in a crop there are soil moisture sensors, which also parameterize the location, the type of soil and the type of crop. The moisture data is sent to the internet and a program analyzes this data and compares it with the optimal data based on the time of year, the type of soil, the type of crop. That program sends instructions to the irrigation actuators to provide the optimal flow of water.
The Internet of Things has the following components:
- The things themselves, which can be an appliance, a car, an assembly machine, etc.
- A basic hardware and software that allows the connection of everything to the Internet. These are the so-called SoC (system on chip) microcontrollers.
- Sensors: SoCs are responsible for collecting information from the sensors of things and sending it to the Internet. There are very different types of sensors (movement, temperature, pressure, presence, etc.).
- Actuators: Based on the information received by an SoC, it is responsible for “triggering” an action on an actuator (e.g., accelerating a machine, turning on a light, allowing current to pass through a circuit, turning on or closing a tap).
- A specific communications protocol for things to send and receive information from the internet. There are many protocols depending on the type of solution.
- An Application layer that is responsible for providing services to the end user and across devices.
Most commonly, IoT solutions are deployed in the cloud, i.e. Cloud Computing IoT, with part of the solution being deployed in Edge Computing environments. The undisputed leader as a provider of these services is Amazon Web Services IoT Platform.
To make sense of the huge amount of data generated by IoT solutions, it is necessary to use Big Data and Artificial Intelligence solutions, which provide the “Business Intelligence” layer, analyzing and proposing actions.
If you want to learn more about what the Internet of Things is and how it really works, you can consult the analysis of the trend of our think tank, Future Trends Forum, by clicking here.
