Internet of Things (IoT

The Internet-of-Things (IoT) consists of a large number of devices that are connected via the Internet
to sense and respond to conditions in their environments. The devices are typically sensors and
actuators that exchange information with a controlling software for a defined purpose. For example, in
the context of a smart city, there may be a large number of sensors in the water infrastructure that
sense and collect information on water pressure and water flows. This information would be relayed
over the Internet to a software that would identify the location of the information and process it to
determine if any action is required. In case action is required, this information would be sent out over
the Internet to the actuators that can effect changes in the pressure and flow of water. (An actuator is
a device that moves or changes the physical state of a machine. For example, an actuator may be a
motor that responds to an electronic signal to open, close or change the position of a valve.)

IoT thus consists of sensors and actuators, data that flows to or from these things, the Internet that
enables the signals to flow, and software that can analyse the data from the sensors and determine
control signals that will flow to the actuators (Figure 6.6).
IoT is defined in various ways and is also named differently. The different definitions highlight different
aspects of IoT, though the common elements include those given in the above figure. The things are
the devices that sense the environment and convey the data, or make changes in it. Data is col- lected
from the things and forms the basis of the entire ensemble. Software analyses and responds to the
data in a manner suitable for the objectives of the network. The Internet provides the connectivity
that brings everything together. Cloud technologies form the basis of collecting, storing and analys- ing
data that is obtained from the devices.
IoT is seen as a powerful method of control and coordination of different environments. Homes,
offices, buildings, cars, personal devices, machines, amongst others, all have sensory devices, and
some have actuators, and

Sensors
Things Internet
Actuators Internet-of-Things

Software
Data

constitute the world of IoT. It is estimated that in 2017 there were 13 billion devices or things
connected to the Internet. Industry commentators and experts estimated that by 2020 there would be
20 billion devices connected to the Internet and used in almost all domains of human activity.

Some industry experts also refer to the configurations of things connected to the Internet as the
Internet-of-Everything (IoE), while others refer to it as Internet 4.0. The latter is also called the
Industrial Internet-of-Things (IIoT). IIoT is possibly one of the biggest application and focus areas of
IoT. The sensors in IIoT are connected to a vast number of industrial devices and machines and that
provide data on detailed and minute aspects of operations. This is a significant achievement as, so far,
the use of the Internet and its facilities was not significant in the operations domain. The data that is
harvested from manufacturing and service operations is analysed to see where improvements can be
effected. Research shows that even tiny savings, say a 1% gain in efficiency of energy use, result in
massive cost savings (as the scale of operations is large).
The use of sensors has also enabled a new business model, where specific devices can be marketed
based on outcomes. For example, the Rolls Royce Company is a market leader in jet engines. It sold jet
engines in the past to airplane manufacturers and then set up maintenance contracts to service those
engines. However, with the advent of IoT, this model of doing busi- ness changed. Rolls Royce now
embeds thousands of sensors in its engines and gives them to airplane manufacturers. The sensors
record every aspect of the engine and send the data to the company over the Internet. This data is
used with complex software that simulate the performance of the engine, in real-time, as its ‘digital
twin’. The company knows how much the engine has run, how much wear its parts have experienced,
and when certain parts have to be serviced or changed. Rolls Royce’s customers pay for the service of
the engine, based on how much it is used, and not for the total engine itself. This change in the
business model is significant as, like in the cloud, it shifts the costs from buying up-front assets to
paying for the engine ser- vice on a usage and measured basis. This model gives the manufacturer,
Rolls Royce, a better handle on its product for servicing across its entire life cycle.
IoT deployments in different applications constitute a vast range of problems and solutions. The
following subsections discuss examples from logistics management and healthcare.