What does the concept of "Internet of Things" entail?

This term originated from the English “internet of things” (IoT) and represents a “method of interaction” between physical entities in a computing network with each other or directly with the external environment. The goal of the “Internet of Things” is to “design” and develop a system of restructuring economic and social processes that minimizes human involvement. This was the key feature for which the concept of the Internet of Things was originally conceived.

The concept emerged in 1999. Initially, it was intended for use as radio-frequency identification for the interaction of physical objects both with each other and with their environment.

The year 2010 can be considered both the year of implementing the concept and, to some extent, a breakthrough in this area. It also marks the year of practical solutions being introduced into the information technology system. Why did this become possible? Firstly, because wireless networks began to spread actively, cloud computing systems appeared, the technology for machine-to-machine interaction emerged, there was an active transition to IPv6, and the development of software-defined networking. Agree, more than enough effort was expended. Yet now, just 9 years later, the Internet of Things (IoT) has become a part of our reality.

Now we can discuss a commonly accepted definition, supported by both researchers and analytical companies. Therefore, the Internet of Things is a scientific concept for the interaction of physical objects, systems, and devices both with each other and with the surrounding world through various communication technologies and connection standards without human involvement.

What practical examples can we provide for the use of the Internet of Things? This includes smartwatches, web beacons, fitness trackers, smart home systems, and much more. It would be a mistake to think that the specificity of IoT is based solely on devices and technologies designed to “meet the needs” of the end consumer, that is, essentially, us.

This tool demonstrates its effectiveness in sectors such as industry, military affairs, security, and many others. For instance, in industry — it pertains to the automation of M2M connections, etc. If we look at the practical side of the Internet of Things, we can discuss its application in “everyday life.” This includes smart home technologies and small electronics that we hold in our hands daily, as well as various other “smart devices.” The second part relates to the industrial Internet of Things. Here, it makes sense to discuss a more global scale. This includes autonomous vehicles, smart cities, comprehensive industrial automation, and so on. In fact, the market for the Internet of Things is so vast that it can sometimes be hard to comprehend. Every day, new devices that can be classified as Internet of Things emerge. It has already captured a vast market encompassing various IT technologies and beyond. Therefore, the history of the emergence of the Internet of Things is undoubtedly intriguing.

The History of the Internet of Things

Interestingly, the concept of the Internet of Things was first anticipated by Nikola Tesla in the early 20th century, as often happens in the scientific world, “purely by chance.” Back then, the foundation of the Internet of Things was based on radio waves that could serve as a “big brain.” According to Tesla, the neurons of this “big brain” could play a controlling role in all processes. He believed that the control tools should be very small to fit easily in a pocket. This was at the very beginning of the 20th century. The most intriguing aspect is that this inventor is hard to categorize as a fantasist, yet he managed to foresee what seemed impossible at the time. This appears quite fantastical even in the present day, let alone in the early 20th century, when it was truly science fiction. Unfortunately, it was only a century later that the concept of the Internet of Things could be revisited, this time by an American scientist working at the Massachusetts Institute of Technology — Kevin Ashton. In his case, the Internet of Things was utilized in radio engineering. The scientist proposed examining logistics processes, for example, tracking the quantity of goods available in a warehouse at a given moment, reporting this to a logistics management center, and then analyzing the availability of products at retail outlets. Based on the information obtained, it was possible to replace certain processes that required human involvement with radio sensors that were supposed to collect and analyze information from a large dataset. Naturally, this significantly eased human labor and introduced substantial economic benefits, especially in large-scale production. It was anticipated that this technology would widely replace human labor. A corresponding decision was made within the framework of the project. This became possible due to the existence of so-called RFID tags.

The most interesting part is that each of these tags can signal its location. Their use significantly increased the speed of operations for suppliers, retailers, and warehouse workers. Additionally, tags entirely eliminated the presence of unnecessary goods in the warehouse, thereby affecting logistics and simplifying the process, which in turn made products slightly cheaper for the end consumer. Interestingly, this labeling was positively received by all parties in the chain, from managers and logistics specialists to warehouse workers. By January 2007, all products in this retail chain (which was a very large network) were produced exclusively with radio tags. This is a vivid example of how the latest scientific achievements were immediately valued practically and implemented right away, rather than remaining at the research level in a laboratory, as often happens.

What underlies the concept of the Internet of Things?

The fundamental principle worth noting when discussing the Internet of Things is the principle of machine-to-machine communication. What does it mean? First and foremost, this type of communication excludes any human intervention. Here, “things communicate” with each other. By “things,” we mean all sorts of electronic devices, for example, all electronic nodes of a Smart Home. This is the most commonly cited practical application of Internet of Things technology, or more precisely, the implementation of its concept. The example of a Smart Home we provided is, in a way, an explanation of the concept of the Internet of Things in simple terms. However, to get to the essence, this technology implies automation at a much higher level than just the “communication” between various nodes of the Smart Home.

This uses the well-known TCP/IP protocols, which involve “the most ordinary,” familiar technology for data exchange over the Internet.

What is the key advantage of this system? First of all, it is the ability to integrate all “thing communication” systems, enabling the construction of a so-called “network of networks.” To be serious, the average person does not even realize how significantly this could change not only the business models we are all familiar with across various sectors of the economy and science but also the economy of an entire country.

What is the purely economic benefit of applying the Internet of Things? Primarily, it is the elimination of unnecessary links in the economic chain. Surprisingly, this unnecessary link can often be human intervention itself. On a positive note, this means excluding the purely human factor, which, unfortunately, still plays a key, if not decisive, role in many processes, affecting and sometimes significantly complicating various activities not only in the economy but also in daily life.

New rules should be attributed to the sharing economy.

What does the future hold for this technology? If we consider that it took the Internet of Things only 20 years to become an integral part of our lives, it definitely has a bright future ahead. For instance, analysts predict that within just a few years, the number of various information devices operating on this technology will reach at least 50 billion, and this number will only grow.

Moreover, this technology is quite inexpensive. It can be said that it is simply about the “stamping” of various electronic components. Remember, it all started with radio chips that were used to “mark” boxes of goods; the development of this technology can only inspire admiration.

Thus, over just 20 years, in such a short time frame, IoT has transformed into a global “internetization” of the things around us. For the “ordinary people,” all this is perceived as a global “digitization” of reality.

 What is the Internet of Things in "for dummies" format?

How can we explain the technology of the Internet of Things to an average person, that is, to the general public? In the broadest sense, the Internet of Things could refer to, for example, a refrigerator that automatically places an online order for products that are running low, or identifies products in the same refrigerator that have expired, or, let’s say, a washing machine that sends you step-by-step information about the washing process to your phone or email.

How might these 28 billion anticipated connections via Internet of Things technology be distributed? Analysts suggest that just under half of the Internet of Things will be made up of various consumer gadgets. This includes modern phones, tablets, fitness trackers, and much more. This falls under the so-called “customer IoT” category.

As for the industrial and business segment, researchers estimate that about 15 billion devices will be involved. This includes various sensors, point-of-sale terminals, and sensing devices used in manufacturing and public transport. The main advantage of the Internet of Things is that it is a very inexpensive tool that, nonetheless, provides high speed and scalability in solving various business tasks across different industrial sectors. We refer to this segment of the Internet of Things as industrial IoT (IIoT).

This Internet of Things effectively combines two technologies. On one side, it involves machine-to-machine communication (with the use of Big Data), and on the other side, it encompasses production automation technology.

What is the main superiority of the Internet of Things over human intelligence? Primarily, it is the ability to collect information accurately, consistently, and without error.

Moreover, the Internet of Things can significantly increase the level of control over produced goods, lead to careful, eco-friendly manufacturing processes, and build a flawless logistics chain, ensuring reliable raw material supply and optimizing factory conveyor operations.

How Our Company Can Help

Our company can assist you in analyzing and evaluating your business project. Before investing a substantial amount of money, it is essential to thoroughly analyze everything, especially the profitability of the proposed project.

When it comes to the Internet of Things, investments can be very significant. That is why a preliminary assessment of your project's profitability will help mitigate various risks.

If we compare the Internet of Things (IoT) with the traditional Internet that we are all accustomed to, IoT technologies are primarily characterized by a rational, practical approach. The key task of the Internet of Things is automation, optimization, and the reduction of both material and time costs. 

How is this expressed? For example, something breaks. A repair crew comes out, the repairman "Uncle Vasya" finds out what's broken, but the replacement part is not available. Then the crew returns and orders this part. But various delays can arise. "Uncle Vasya" forgot to order the part, or he ordered the wrong one, or he delegated it to someone else who didn’t come to work or went on vacation, etc. This is where the human factor comes into play. The Internet of Things (IoT) minimizes the "human factor." In other words, IoT sensors automatically determine what is broken, order the part themselves, and all that remains for people is to replace the faulty component. The repairman will immediately know what and where needs to be changed and what specific part to bring with him. 

Moreover, the use of IoT in industry and transportation not only significantly reduces costs but also decreases accident rates, improves product quality, reduces raw material waste, and lowers resource consumption. In the energy sector, the Internet of Things can greatly enhance the efficiency of electricity generation and distribution. When talking about savings, it’s also important to consider not only the reduction of monetary costs; minimizing time costs is arguably one of the most crucial aspects. Often, a lot of time is spent on tasks that pose a significant risk to health or even life. The Internet of Things allows for the replacement of humans in performing routine or risky tasks. Indeed, the risk of making mistakes is much higher during routine work. Artificial intelligence monitors task completion on the production line, counts goods in the warehouse, and performs the role of a traffic regulator on highways. Furthermore, the Internet of Things is not influenced by weather conditions, time of day, or day of the week. Sometimes we don’t even notice the diversity of the Internet of Things. Often, even in a small provincial town, you can already find modern security systems and eco-monitoring. Additionally, the Internet of Things is already used in daily life, in the utilities sector, transportation, and agriculture. It is also indispensable in medicine.

What can the Internet of People offer us in contrast to the Internet of Things?

Logically, one might assume that the Internet of People represents the ordinary Internet, that is, the familiar "World Wide Web." And if we talk about its negative aspect, it primarily concerns the time wasted on social networks, online games, or surfing websites, as well as purchasing often unnecessary items in online stores. The key feature explaining why we behave this way is primarily accessibility. For instance, achieving a final result, such as making a purchase, can sometimes be done in just two clicks. But this is just one direction, and the definition of the Internet of People, as practice has shown, is not entirely accurate.

In fact, the Internet of People can refer to a technology that is partially at the intersection of the Internet of Things and explains the process of measuring human activity and biological indicators. 

At the core of the Internet of People lies the "Quantified Self" technology—technology for biosensors and measuring bodily activities. When combined with the concept of the Internet of Things, we can talk about the "Internet of Self"—the Internet of People.

Thus, for us to speak of the existence of the Internet of People, it is essential to clearly adhere to the following main criteria:

• Presence of biometric sensors that measure basic physiological parameters of a person, such as blood pressure, pulse parameters, body and skin surface temperature, breathing rate, blood oxygen saturation, changes in sleep and wakefulness phases, and much more;
•  Presence of the Internet of Things, which represents the connection of a "gadget" to the Internet via a special protocol system. Human involvement is minimal.

As a simple example, one can consider uploading the contours of your face to a special cloud storage, having a facial recognition scanner or a regular video camera at the entrance door, and a lock that operates solely on your facial profile. Moreover, the process continues: after the door in front of you opens, the signal from the entrance door "goes" to the lighting sensor in the living room, and the light automatically turns on with your appearance. Notably, the entire chain of actions is perceived by you as a matter of course and is not even consciously recognized. 

As a second illustrative example, we can also cite the work of the "smart bulb" from Misfit. Not only is it wireless, but it can also be controlled in two modes, changing not only the brightness but also the color itself. Furthermore, it can "monitor" a person’s sleep by reading their sleep phases. This is possible due to a small device called "Flash," which comes with the bulb. By "the command of your body" during the waking phase, the bulb will shine brighter, thus stimulating your painless "exit from sleep." 

The next example is even more indicative. At one biomechanics institute in Valencia (The Biomechanics Institute in Valencia), a special technology was developed that allows you to park your car safely when you are tired. For this, it requires just a little: to place special sensors in your car's interior that register the driver’s respiratory and cardiovascular system status. 

Volvo is also not left behind, taking a slightly different approach. They installed a front camera in their cars' interiors, which also "allows you to mute the engine" when the driver's face appears tired. The system reacts to factors such as: slowed blinking, closing eyelids, tilting the head, and "nodding off." After this, it first does everything to wake the driver, providing specific sound and light signals. And if nothing helps, and the driver sinks deeper into sleep, it sends a signal to the car's engine, and the vehicle simply stops. Additionally, the company is also working on facial recognition of drivers. Thus, this can not only ensure your safety but also help adjust and save parameters such as seat height, automatically buckle seat belts, and much more.  

From this, it follows that the concept of the "Internet of People" as merely using the "World Wide Web" is not entirely accurate.

Can we prevent the "domination" of the Internet of People in various areas of human life?

The answer to this question is unequivocal: "No"! Thanks to already conducted practical research, the integration of biometric data reading technology and the Internet of Things is merely a matter of time. Moreover, in the near future. Why? Primarily because this technology has immediately gained popularity among ordinary consumers. This includes all sorts of gadgets that register pulse, blood pressure, and other physiological parameters. The Internet of Things is already very popular in manufacturing, especially in places where microprocessors, wireless communication modules, radio antennas, etc., are used. Furthermore, to make everything work, it is essential to create the necessary software. And this is not so complicated. Over time, the Internet of People will become a kind of continuation of ourselves, our bodies. After all, it simply represents a combination of sensors and "smart things."

Convenience is a given. How can this be expressed?

For example, in heating systems that provide a comfortable temperature specifically for you. In sensors that can assess whether you are in a state of stress or not. If the answer is yes, the music in the apartment will become quieter, and the lighting will dim. In controlling the state of alcohol intoxication. Its presence will prevent you from driving a car. In the ability to adjust all systems in your home, such as TV, heating, and lighting, to your biorhythms. If you suddenly fall asleep early today, all systems will automatically go into sleep mode. Moreover, this will not be programmed. Everything will be entirely individualized, as sensors will track your condition around the clock.

All of the above is by no means fantasy; it is reality, and it is not too far off in the future.

Now let's return to the Internet of Things and examine real examples that already exist, practical implementations that we regularly use and often do not even think about.

Today's Applications of the Internet of Things

Example 1: Automotive Navigation System

There is no need to look far for examples. The convenient and familiar Google Maps, Tesla's autopilot, or Yandex.Navigator. Drivers in most developed countries have long switched to using these services. A smartphone or tablet will assess the direction of travel, the vehicle's coordinates, its speed, and transmit this information to the relevant services of Google, Tesla, or Yandex, after which the information will be quickly analyzed on the companies' servers.

In the case of, for example, traffic jams on the roads, the route for drivers who may hit traffic will be adjusted, and it will immediately appear on the driver's tablet or phone screen. Here we can see a reduction in time costs. Soon, the Internet of Things will be able to independently redistribute traffic load on all roads in the city.

Example 2: Internet of Things in Sports

The application of IoT in sports lies in data analysis and statistical accumulation. And this is not only about the availability of apps that can tell you how many calories you burned during your morning run. We are talking about information and computing systems used in professional sports. Sensors monitor the physical condition of each athlete as well as the entire team. These can be motion sensors, heart rate sensors, body temperature, and so on. They can be embedded in an ordinary vest worn by the athlete. All data is stored in cloud storage, analyzed, and transmitted to the coach. Based on this data, he can develop, for example, the tactics for the next half of a team game.

This eliminates the painstaking work of sports analysts and coaches, who sometimes had to watch up to 10 hours of game footage to evaluate the condition of each player. Now, the condition of each team member can be assessed during the game, allowing timely adjustments to the behavior of the entire team. It also helps medical staff promptly evaluate critical conditions and provide necessary assistance.

 Example 3: Metering Devices

Public Utilities

The public utilities sector has not remained untouched by IoT technologies. Currently, employees in this industry use “smart metering devices.” The meters are connected to the Internet, and the readings are transmitted to a cloud storage system. A dispatcher monitors the consumption of gas, water, and electricity at both the household and community levels. This saves on inspection services and eliminates the presence of chronic non-payers since electricity can be remotely disconnected without waiting for astronomical debts. Immediately after payment, it can be reconnected. Thus, a small sensor can handle the collection of meter readings and their initial processing. Very soon, the work of management companies will simply be unnecessary. There are already examples of direct cooperation between water and electricity suppliers and end consumers, made possible by a wireless automated dispatch system.

Interestingly, electricity and water metering companies have been using this system for a long time but still rely on human resources as well.

Accurate accounting of all resources, along with the ability to receive information about overconsumption or possible emergencies, allows for savings of up to 30% of all resources in each home. Additionally, consumers no longer need to pay for the maintenance of management companies. Therefore, when it comes to public utilities, the ability to remotely read meters and dispatch monitoring devices is an excellent example of the application of Internet of Things technology. It is an effective tool for accounting and control, an opportunity to automate labor-intensive operations such as collecting and processing meter readings, as well as identifying losses and minimizing expenses, which is crucial for service-providing organizations.

Taxi Service

UBER is an excellent example of a taxi service that skillfully eliminated the unnecessary link—taxi companies. Currently, communication between the client and the driver occurs directly.

Example 4: Application of the Internet of Things in Agriculture

In agriculture, a typical example of the application of the Internet of Things is the use of soil temperature and moisture monitoring systems by some tomato and cotton growers in Israel. Each plant or simply a plot of crops has a separate sensor attached that sends information to a cloud storage system. The operator, based on the information received, compiles a list of recommendations for further care of the plants.

Another example of successful use of the Internet of Things is the fertilization of fields in the United States. There, sensors are located on the spraying tractor, allowing the operator to correctly distribute the application of organic fertilizers. This can be done using an ordinary smartphone. The owner also remotely monitors the entire process.

 Example 5: Internet of Things in Industrial Business

The use of the Internet of Things also significantly increases profits and reduces costs, for instance, in energy and light industry. For example, the wear of wind turbine rotors can now be monitored remotely, as can their performance. This substantially reduces maintenance costs, eliminates the risk of sudden wind turbine shutdowns, and lowers labor costs for sending personnel to monitor the generator's condition “in person.”

Being able to anticipate and eliminate breakdowns is a key task for any production. A company that has managed to implement this using the Internet of Things is based in Switzerland and manufactures machines. It has around 5,000 units of various equipment on its production floors. Each machine has a sensor connected to the manufacturer's database. Thus, engineers and service teams receive information about maintenance schedules or when some equipment unexpectedly fails. This means that the manufacturing company has completely eliminated the need for technician crews to travel solely for diagnostics.

This innovation has not only reduced costs but also completely eliminated downtime. In the case of both planned diagnostics and repairs, it was necessary to stop all production processes entirely. Now, maintenance occurs when needed, allowing for continuous production and significantly reducing the company's repair fund expenses.

 Example 6: Development of Medical IoT

When it comes to large investments, modern companies are considering investing in the creation of the medical Internet of Things sector. What does it represent? First of all, it provides the ability to track the dynamics of a patient's recovery process. Information is collected using a sensor attached to the patient’s body. The patient's condition can be assessed in real-time around the clock, not only while in the hospital but also after discharge. In the United States, this is already widely used to monitor the condition of patients discharged from the hospital after surgery. Regarding the application of the Internet of Things in logistics, for instance, in pharmaceuticals, it allows for monitoring the inventory of medicines in warehouses or with suppliers. Of course, this is not limited to pharmaceuticals.

For those interested, our company can help you analyze and evaluate your business project. Before investing a significant amount of money, it is important to thoroughly analyze everything, especially how profitable the proposed project will be.

When it comes to the Internet of Things, investments can be quite substantial. That is why a preliminary profitability assessment of your project will help reduce various risks.

What are the prospects for development

Future of the Internet of Things?

It is quite possible that very soon, consumer products will be released with built-in sensors that we will simply need to connect. The cost of such items will be so low that everyone can afford to use this “novelty.” The Internet of Things will also encompass food products.

The methods of obtaining energy will change as well. Sensors will be able to synthesize energy directly from the surrounding environment.

In short, the “era of machines” may soon transition from the realm of fantasy into reality. In this case, there will be a need to integrate all devices into a single network.

Many data transfer protocols have already been developed. Their drawback is that they are not universal at all. For example,

the GSM protocol is for voice communication, GPRS is used in mobile communications, ZigBee is for Smart Home systems, and Wi-Fi is intended for high-speed wireless local networks.

Thus, for the successful functioning of the Internet of Things, a universal communication channel is essential.

Here are the main requirements for the future Internet of Things:

• The presence of small data volumes; for sensors, it is sufficient to transmit bits, at most bytes of data.
• The need for minimum energy consumption.
• The ability to create devices with maximum autonomy.
• The ability to transmit information over long distances and through various obstacles.
• The ability to transmit data quickly and safely.

Considering these requirements, one can conclude that in the near future, the Internet of Things will be a field of new technologies, which will also create additional opportunities for investment. It is obvious that now is the best time to think about business in this sector.

Even small companies can now become participants in this significant and rapidly developing market.

In conclusion, we have a long way ahead, and our company is ready to support your ideas and help turn them into reality. After all, we believe that business should bring not only income but also joy.