Objects become embedded and gain the ability to communicate. The resulting information networks promise to create new business models, improve business processes, and reduce costs and risks. The massive numbers of connected things and the explosion of data generated by these things will change the way we do business forever. Connected devices are proliferating in a communicating and actuating network named “Internet of Things” (IoT) wherein sensors and actuators blend seamlessly with the environment around us, and the information is shared across platforms in order to develop a common operating picture (Gubi et al., 2013). The IoT digitizes the physical world and is a basis for new business models whose main objective is to integrate or connect things. This chapter outlines the key enabling technologies, drivers and business value as well as benefits and challenges.
TopIntroduction
The IoT describes a system where items in the physical world, and sensors within or attached to these items are connected via wireless and wired Internet connections (Lopez Research, 2013; Meadon, 2013), this system is a key part of the so called future internet (Gavras et al., 2010; Haller, Karnouskos, & Schroth, 2008).
The IERC has formulated the following definition (International Telecommunication Union, 2012) on the IoT: “A global infrastructure for the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication technologies”. NOTE 1 — Through the exploitation of identification, data capture, processing and communication capabilities, the IoT makes full use of things to offer services to all kinds of applications, whilst ensuring that security and privacy requirements are fulfilled. NOTE 2—from a broader perspective, the IoT can be perceived as a vision with technological and societal implications.
The IERC definition (Vermesan, et al., 2013) states that the IoT is “a dynamic global network infrastructure with self-configuring capabilities” based on standard and interoperable communication protocols (van Kranenburg, 2007) where physical and virtual “things” have identities, physical attributes, and virtual personalities using intelligent interfaces, and are seamlessly integrated into the information network. The IoT integrates a large number of technologies and envisions that the things connected to the internet are clearly distinguished from the things participating within the Internet around us (Bleecker, 2006) – through unique addressing schemes and standard communication protocols. These things are able to interact with each other and cooperate with their neighbors to reach common goals (Atzori, Iera, & Morabito, 2010; Sarma, Brock, & Ashton, 1999). The combination of the internet and emerging technologies such as near field communications, real-time localization, and embedded sensors (Miorandi, 2012) allow the transformation of everyday objects into smart objects that can understand and react to their environment and transform this environment to a smart environment. The IoT infrastructure components and services of a city administration, education, healthcare (Domingo, 2012), public safety (Andrews, El-Attrash, Jarvis, Johnson, & Moss), real estate, transportation (Atzori, Iera, & Morabito, 2010) and utilities (SAP, 2014) lead to a more aware, interactive and efficient environment (Belissent, 2010). The IoT addresses the following topics: