1. What is the internet of things
(IoT)
The internet of things, or IoT, is a system of interrelated computing devices,
mechanical and digital machines, objects, animals or people that are
provided with unique identifiers (UIDs) and the ability to transfer data over a
network without requiring human-to-human or human-to-computer
interaction.
A thing in the internet of things can be a person with a heart monitor
implant, a farm animal with a biochip transponder, an automobile that has
built-in sensors to alert the driver when tire pressure is low or any other
natural or man-made object that can be assigned an Internet Protocol (IP)
address and is able to transfer data over a network.
Increasingly, organizations in a variety of industries are using IoT to
operate more efficiently, better understand customers to deliver enhanced
customer service, improve decision-making and increase the value of the
business.
How does IoT work?
An IoT ecosystem consists of web-enabled smart devices that use embedded
systems, such as processors, sensors and communication hardware, to collect, send
and act on data they acquire from their environments. IoT devices share the sensor
data they collect by connecting to an IoT gateway or other edge device where data
is either sent to the cloud to be analyzed or analyzed locally. Sometimes, these
devices communicate with other related devices and act on the information they
get from one another. The devices do most of the work without human
intervention, although people can interact with the devices -- for instance, to set
them up, give them instructions or access the data.
The connectivity, networking and communication protocols used with these web-
enabled devices largely depend on the specific IoT applications deployed.
2. IoT can also make use of artificial intelligence (AI) and machine learning to aid in
making data collecting processes easier and more dynamic.
An example
of how an IoT system works from collecting data to taking action
Why is IoT important?
The internet of things helps people live and work smarter, as well as gain complete
control over their lives. In addition to offering smart devices to automate homes,
IoT is essential to business. IoT provides businesses with a real-time look into how
their systems really work, delivering insights into everything from the performance
of machines to supply chain and logistics operations.
IoT enables companies to automate processes and reduce labor costs. It also cuts
down on waste and improves service delivery, making it less expensive to
manufacture and deliver goods, as well as offering transparency into customer
transactions.
3. As such, IoT is one of the most important technologies of everyday life, and it will
continue to pick up steam as more businesses realize the potential of connected
devices to keep them competitive.
What are the benefits of IoT to organizations?
The internet of things offers several benefits to organizations. Some benefits are
industry-specific, and some are applicable across multiple industries. Some of the
common benefits of IoT enable businesses to:
īˇ monitor their overall business processes;
īˇ improve the customer experience (CX);
īˇ save time and money;
īˇ enhance employee productivity;
īˇ integrate and adapt business models;
īˇ make better business decisions; and
īˇ generate more revenue.
IoT encourages companies to rethink the ways they approach their businesses and
gives them the tools to improve their business strategies.
Generally, IoT is most abundant in manufacturing, transportation and utility
organizations, making use of sensors and other IoT devices; however, it has also
found use cases for organizations within the agriculture, infrastructure and home
automation industries, leading some organizations toward digital transformation.
IoT can benefit farmers in agriculture by making their job easier. Sensors can
collect data on rainfall, humidity, temperature and soil content, as well as other
factors, that would help automate farming techniques.
The ability to monitor operations surrounding infrastructure is also a factor that
IoT can help with. Sensors, for example, could be used to monitor events or
changes within structural buildings, bridges and other infrastructure. This brings
4. benefits with it, such as cost saving, saved time, quality-of-life workflow changes
and paperless workflow.
A home automation business can utilize IoT to monitor and manipulate mechanical
and electrical systems in a building. On a broader scale, smart cities can help
citizens reduce waste and energy consumption.
IoT touches every industry, including businesses within healthcare, finance, retail
and manufacturing.
What are the pros and cons of IoT?
Some of the advantages of IoT include the following:
īˇ ability to access information from anywhere at any time on any device;
īˇ improved communication between connected electronic devices;
īˇ transferring data packets over a connected network saving time and
money; and
īˇ automating tasks helping to improve the quality of a business's services
and reducing the need for human intervention.
Some disadvantages of IoT include the following:
īˇ As the number of connected devices increases and more information is
shared between devices, the potential that a hacker could steal
confidential information also increases.
īˇ Enterprises may eventually have to deal with massive numbers -- maybe
even millions -- of IoT devices, and collecting and managing the data
from all those devices will be challenging.
īˇ If there's a bug in the system, it's likely that every connected device will
become corrupted.
īˇ Since there's no international standard of compatibility for IoT, it's
difficult for devices from different manufacturers to communicate with
each other.
5. IoT standards and frameworks
There are several emerging IoT standards, including the following:
īˇ IPv6 over Low-Power Wireless Personal Area Networks (6LoWPAN) is
an open standard defined by the Internet Engineering Task Force (IETF).
The 6LoWPAN standard enables any low-power radio to communicate
to the internet, including 804.15.4, Bluetooth Low Energy (BLE) and Z-
Wave (for home automation).
īˇ ZigBee is a low-power, low-data rate wireless network used mainly in
industrial settings. ZigBee is based on the Institute of Electrical and
Electronics Engineers (IEEE) 802.15.4 standard. The ZigBee Alliance
created Dotdot, the universal language for IoT that enables smart
objects to work securely on any network and understand each other.
īˇ LiteOS is a Unix-like operating system (OS) for wireless sensor networks.
LiteOS supports smartphones, wearables, intelligent manufacturing
applications, smart homes and the internet of vehicles (IoV). The OS
also serves as a smart device development platform.
īˇ OneM2M is a machine-to-machine service layer that can be embedded
in software and hardware to connect devices. The global standardization
body, OneM2M, was created to develop reusable standards to enable
IoT applications across different verticals to communicate.
īˇ Data Distribution Service (DDS) was developed by the Object
Management Group (OMG) and is an IoT standard for real-time, scalable
and high-performance M2M communication.
īˇ Advanced Message Queuing Protocol (AMQP) is an open source
published standard for asynchronous messaging by wire. AMQP enables
encrypted and interoperable messaging between organizations and
applications. The protocol is used in client-server messaging and in IoT
device management.
īˇ Constrained Application Protocol (CoAP) is a protocol designed by the
IETF that specifies how low-power, compute-constrained devices can
operate in the internet of things.
6. īˇ Long Range Wide Area Network (LoRaWAN) is a protocol for WANs
designed to support huge networks, such as smart cities, with millions
of low-power devices.
IoT frameworks include the following:
īˇ Amazon Web Services (AWS) IoT is a cloud computing platform for IoT
released by Amazon. This framework is designed to enable smart
devices to easily connect and securely interact with the AWS cloud and
other connected devices.
īˇ Arm Mbed IoT is a platform to develop apps for IoT based on Arm
microcontrollers. The goal of the Arm Mbed IoT platform is to provide a
scalable, connected and secure environment for IoT devices by
integrating Mbed tools and services.
īˇ Microsoft's Azure IoT Suite is a platform that consists of a set of
services that enables users to interact with and receive data from their
IoT devices, as well as perform various operations over data, such as
multidimensional analysis, transformation and aggregation, and
visualize those operations in a way that's suitable for business.
īˇ Google's Brillo/Weave is a platform for the rapid implementation of IoT
applications. The platform consists of two main backbones: Brillo, an
Android-based OS for the development of embedded low-power
devices, and Weave, an IoT-oriented communication protocol that
serves as the communication language between the device and the
cloud.
īˇ Calvin is an open source IoT platform released by Ericsson designed for
building and managing distributed applications that enable devices to
talk to each other. Calvin includes a development framework for
application developers, as well as a runtime environment for handling
the running application.
7. Consumer and enterprise IoT applications
There are numerous real-world applications of the internet of things, ranging from
consumer IoT and enterprise IoT to manufacturing and industrial IoT (IIoT). IoT
applications span numerous verticals, including automotive, telecom and energy.
In the consumer segment, for example, smart homes that are equipped with smart
thermostats, smart appliances and connected heating, lighting and electronic
devices can be controlled remotely via computers and smartphones.
Wearable devices with sensors and software can collect and analyze user data,
sending messages to other technologies about the users with the aim of making
users' lives easier and more comfortable. Wearable devices are also used for public
safety -- for example, improving first responders' response times during
emergencies by providing optimized routes to a location or by tracking
construction workers' or firefighters' vital signs at life-threatening sites.
In healthcare, IoT offers many benefits, including the ability to monitor patients
more closely using an analysis of the data that's generated. Hospitals often use IoT
systems to complete tasks such as inventory management for both pharmaceuticals
and medical instruments.
Smart buildings can, for instance, reduce energy costs using sensors that detect
how many occupants are in a room. The temperature can adjust automatically -- for
example, turning the air conditioner on if sensors detect a conference room is full
or turning the heat down if everyone in the office has gone home.
In agriculture, IoT-based smart farming systems can help monitor, for instance,
light, temperature, humidity and soil moisture of crop fields using connected
sensors. IoT is also instrumental in automating irrigation systems.
In a smart city, IoT sensors and deployments, such as smart streetlights and smart
meters, can help alleviate traffic, conserve energy, monitor and address
environmental concerns, and improve sanitation.
8. IoT security and privacy issues
The internet of things connects billions of devices to the internet and involves the
use of billions of data points, all of which need to be secured. Due to its expanded
attack surface, IoT security and IoT privacy are cited as major concerns.
In 2016, one of the most notorious recent IoT attacks was Mirai, a botnet that
infiltrated domain name server provider Dyn and took down many websites for an
extended period of time in one of the biggest distributed denial-of-service (DDoS)
attacks ever seen. Attackers gained access to the network by exploiting poorly
secured IoT devices.
Because IoT devices are closely connected, all a hacker has to do is exploit one
vulnerability to manipulate all the data, rendering it unusable. Manufacturers that
don't update their devices regularly -- or at all -- leave them vulnerable to
cybercriminals.
Additionally, connected devices often ask users to input their personal information,
including names, ages, addresses, phone numbers and even social media accounts -
- information that's invaluable to hackers.
Hackers aren't the only threat to the internet of things; privacy is another major
concern for IoT users. For instance, companies that make and distribute consumer
IoT devices could use those devices to obtain and sell users' personal data.
Beyond leaking personal data, IoT poses a risk to critical infrastructure, including
electricity, transportation and inancial services.
What is the history of IoT?
Kevin Ashton, co-founder of the Auto-ID Center at the Massachusetts Institute of
Technology (MIT), first mentioned the internet of things in a presentation he made
to Procter &Gamble (P&G) in 1999. Wanting to bring radio frequency ID (RFID)
to the attention of P&G's senior management, Ashton called his presentation
"Internet of Things" to incorporate the cool new trend of 1999: the internet. MIT
professor Neil Gershenfeld's book, When Things Start to Think, also appeared in
9. 1999. It didn't use the exact term but provided a clear vision of where IoT was
headed.
IoT has evolved from the convergence of wireless technologies,
microelectromechanical systems (MEMSes), microservices and the internet. The
convergence has helped tear down the silos between operational technology (OT)
and information technology (IT), enabling unstructured machine-generated data to
be analyzed for insights to drive improvements.
Although Ashton's was the first mention of the internet of things, the idea of
connected devices has been around since the 1970s, under the monikers embedded
internet and pervasive computing.
The first internet appliance, for example, was a Coke machine at Carnegie Mellon
University in the early 1980s. Using the web, programmers could check the status
of the machine and determine whether there would be a cold drink awaiting them,
should they decide to make the trip to the machine.
IoT evolved from M2M communication, i.e., machines connecting to each other
via a network without human interaction. M2M refers to connecting a device to the
cloud, managing it and collecting data.
Taking M2M to the next level, IoT is a sensor network of billions of smart devices
that connect people, systems and other applications to collect and share data. As its
foundation, M2M offers the connectivity that enables IoT.
The internet of things is also a natural extension of supervisory control and data
acquisition (SCADA), a category of software application programs for process
control, the gathering of data in real time from remote locations to control
equipment and conditions. SCADA systems include hardware and software
components. The hardware gathers and feeds data into a computer that has
SCADA software installed, where it is then processed and presented in a timely
manner. The evolution of SCADA is such that late-generation SCADA systems
developed into first-generation IoT systems.
10. The concept of the IoT ecosystem, however, didn't really come into its own until
the middle of 2010 when, in part, the government of China said it would make IoT
a strategic priority in its five-year plan.
This was last updated in March 2022
Continue Reading About What is the internet
of things (IoT)?
īˇ IoT technology for healthcare in 2020
īˇ IoT security products address threats posed by connected dev
Smart Home: Definition, How They Work,
Pros and Cons
By
ADAM HAYES
Updated September 14, 2022
Reviewed by
CHIP STAPLETON
Fact checked by
SUZANNE KVILHAUG
11. What Is a Smart Home?
A smart home refers to a convenient home setup where appliances and devices can be
automatically controlled remotely from anywhere with an internet connection using a mobile
or other networked device. Devices in a smart home are interconnected through the internet,
allowing the user to control functions such as security access to the home, temperature,
lighting, and a home theater remotely.
KEY TAKEAWAYS
īˇ A smart home allows homeowners to control appliances, thermostats, lights, and other
devices remotely using a smartphone or tablet through an internet connection.
īˇ Smart homes can be set up through wireless or hardwired systems.
īˇ Smart home technology provides homeowners with convenience and cost savings.
īˇ Security risks and bugs continue to plague makers and users of smart home technology.
īˇ Though full-scale home automation may cost thousands of dollars, smaller individual
products costing less than $100 can get homeowners started on smart home products.
How Smart Homes Work
A smart homeâs devices are connected with each other and can be accessed through one
central pointâa smartphone, tablet, laptop, or game console. Door locks, televisions,
thermostats, home monitors, cameras, lights, and even appliances such as the refrigerator can
be controlled through one home automation system. The system is installed on a mobile or
other networked device, and the user can create time schedules for certain changes to take
effect.
Smart home appliances come with self-learning skills so they can learn the homeownerâs
schedules and make adjustments as needed. Smart homes enabled with lighting control allow
homeowners to reduce electricity use and benefit from energy-related cost savings. Some
home automation systems alert the homeowner if any motion is detected in the home when
they're away, while others can call the authoritiesâpolice or the fire departmentâin case of
imminent situations.
Once connected, services such as a smart doorbell, smart security system, and smart
appliances are all part of the internet of things (IoT) technology, a network of physical
objects that can gather and share electronic information.
Security and efficiency are the main reasons behind the increase in smart home technology
use.
Smart Home Systems
Smart homes can feature either wireless or hardwired systemsâor both. Wireless systems are
easier to install. Putting in a wireless home automation system with features such as smart
lighting, climate control, and security can cost several thousand dollars, making it very cost-
friendly.
The downside to wireless systems is you likely need strong Wi-Fi coverage and broadband
service throughout your entire house. This may require you to invest in range extenders or
hardwired wireless access points. Wireless smart home systems are generally more
appropriate for smaller existing homes or rental properties due to their smaller size.
12. Hardwired systems, on the other hand, are considered more reliable and are typically more
difficult to hack. A hardwired system can increase the resale value of a home. In addition,
hardwired smart home systems can easily be scaled; therefore, it is often the default method
when designing a new build or performing a major renovation.
There is a drawbackâit's fairly expensive. Installing a luxury and hardwired smart system
can cost homeowners tens of thousands of dollars. In addition, you must have space for
network hardware equipment including ethernet cables.
How to Create a Smart Home
Heating
Smart home products now allow for greater control over heating devices including when
products are turned on, turned off, and controlled. Smart products may be armed with
temperature or humidity sensors to automatically turn on or off if certain criteria are met.
This line of smart home innovations also extends to air conditioners.
Lighting
Often with the use of a mobile phone, table, or custom remote specific to a product, lighting
products now enhance the capabilities of homeowners. Lights can be switched on and off,
placed on a schedule, or set to change based on sunrise or sunset times. Like some more
traditional products, lights can often set to change based on motion. Smart bulbs can
communicate over Wi-Fi and display statistics or metrics to your phone.
This lighting category may also contain smart home products that control or prevent light.
Automatic blinds may be installed and set to close based on sunrise schedules. Alternatively,
electronic curtains allow users to manage their blinds using a handheld device.
Audio/Visual
One of the more fun aspects of smart homes, many entertainment products are now heavily
connected to each other and can be controlled with a single remote. Television and speakers
now have greater capabilities to be played on command using applications, including being
maintained on a schedule or being voice-controllable.
Security
One of the most reasonable aspects of a smart home is the enhanced security capabilities.
Many products now have camera capabilities that track motion, capture video, or allow for
live video feeds. This may be installed to sync with a ringing doorbell or set to display on
certain areas of your property. These videos may allow for video-calling with the individual
at your door, including audio capabilities.
Many smart homes are also refit with modern security kits. This includes motion sensor
detectors when individuals should not be home, home monitoring, notifications and alerts of
suspicious behavior, and the ability to lock doors or windows remotely using a phone.
Other
A very large section of smart homes relates to digital assistants or home hubs. These products
are often interacted with using your voice and can take commands, field questions, organize
your calendar, schedule conference calls, or provide alerts. Though not specifically related to
13. one's home, these digital assistants provide a broad range of controlling smart assets, their
schedules, and their statuses.
Smart smoke and carbon monoxide detectors not only sound an alarm but can be synced to
your phone to alert you should you be away from your property. These devices can often be
set up to send emergency notifications to specified contacts.
Automated irrigation systems have had the ability to be programmed for a while. Now, smart
irrigation systems field climate and environmental conditions an factor those traits into
existing water schedules. Smart irrigation systems monitor moisture-related conditions and
strive to conserve water.
When budgeting for smart home products, consider any required or necessary
labor/installation costs from professionals.
Advantages and Disadvantages of Smart Homes
Pros
Installing a smart home technology system provides homeowners with convenience. Rather
than controlling appliances, thermostats, lighting, and other features using different devices,
homeowners can control them all using one deviceâusually a smartphone or tablet.
Since they're connected to a portable device, users can get notifications and updates on issues
in their homes. For instance, smart doorbells allow homeowners to see and communicate with
people who come to their doors even when they're not at home. Users can set and control the
internal temperature, lighting, and appliances as well.
For the cost of setting up the smart system, homeowners can benefit from significant
cost savings. Appliances and electronics can be used more efficiently, lowering energy costs.
Cons
While the smart home offers convenience and cost savings, there are still challenges. Security
risks and bugs continue to plague makers and users of the technology. Adept hackers, for
example, can gain access to a smart home's internet-enabled appliances. In October 2016,
a botnet called Mirai infiltrated interconnected devices of DVRs, cameras, and routers to
bring down a host of major websites through a denial of service attack, also known as
a DDoS attack.
Measures to mitigate the risks of such attacks include protecting smart appliances and devices
with a strong password, using encryption when available, and only connecting trusted devices
to one's network.
As noted above, the costs of installing smart technology can run anywhere from a few
thousand dollars for a wireless system to tens of thousands of dollars for a hardwired system.
It's a heavy price to pay, especially since there may be a steep learning curve to get used to
the system for everyone in the household.
Smart Homes
Pros
14. īˇ Are often more convenient than traditional methods of scheduling, controlling, or
accessing products
īˇ May enhance security due to notifications or alerts
īˇ Offers multiple ways of performing a certain task (i.e. lights can be manually turned
on or scheduled)
īˇ May result in long-term cost savings when considering efficient energy use
Cons
īˇ May pose security risk as products are connected to networks and can be hacked
īˇ May require additional work for homeowner to track additional passwords and
monitor product security
īˇ Are often more expensive than their less smart counterpart products
īˇ May result in steep learning curve, especially for those not technologically-savvy
Home Much Does a Smart Home Cost?
On one hand, more and more smart home products being brought to market will continually
put pressure on manufacturers, competition, and product prices. On the other hand, these
incredible innovations are continually expanding what they are capable of and may be
assessed price premiums. When considering smart home products, perform a cost-
benefit analysis to determine whether the price exceeds the convenience.
According to HomeAdvisor, it may cost up to $15,000 to fully automate a four-bedroom,
three-bath home. Average total home automation costs is just under $800, though fully-
connected luxury homes may run into the six figures.1
In general, a smart home can start by being very focused on a specific product or room. This
strategy allows individuals to invest in smart technology for minimal capital. Consider the
following options priced at less than $100 as of September 2022:
īˇ Google Nest Mini, the home audio and assistant device2
īˇ Amazon Smart Plug, a method of automating appliances3
īˇ Ring Smart Doorbell, a video-enabled camera for home security4
īˇ Wyze Thermostat, a digital, wireless, programmable heating device5
On the other hand, larger smart home technologies (with more capabilities) often cost
thousands of dollars. For example, Vivant's Premium Plus Package for home security cost
over $2,300 at writing.6 Alternatively, the LG 30.8 cubic foot Door-in-Door smart
refrigerator could be had for a little over $7,000.7
What Is In a Smart Home?
Smart homes can choose to have smart speakers, lights, thermostats, doorbells, or home hubs.
Smart technology can also extend to kitchen appliances or outdoor or landscaping equipment.
New innovations are continually evolving what is in a smart home.
Why Is a Smart Home Important?
A smart home is important because it allows a household to become more energy efficient. In
addition, it allows a household to save time and perform tasks more efficiently. A smart home
15. is important because of the convenience it provides over traditional methods of performing
tasks.
Can a Smart Home Be Hacked?
Yes. Because home automation often requires a live network connect, home automation
systems can be hacked if the security protocol of the smart home product has inadequate
security protocols. In addition, individuals must take additional care to not share or disclose
sensitive log-in information as these devices may require a password or personal device
access to control.
Is a Smart Home Worth It?
Investing in a smart home is a cost-benefit analysis that often requires an upfront investment
to equip your house with the appropriate products. In addition, there is the cost of needing to
train yourself and become competent in understanding how to use the products. However, the
benefits of saving time performing tasks as well as potential utility cost savings may make a
smart home worth it.
The Bottom Line
Leveraging innovation and technology, smart homes make it easier to do things. Whether it is
controlling applications using your phone or scheduling products to perform tasks at certain
times, smart homes have revolutionized the way individuals do things, consume energy, and
interact with their home products.
ARTICLE SOURCES
Related Terms
Generative AI: How It Works, History, and Pros and Cons
In a matter of seconds, generative artificial intelligence can produce new
content, such as text, images, video, and code, in response to a user-
given prompt.
more
What Is a Digital Wallet?
A digital wallet is an application on an electronic device that stores
payment information and allows you to securely make purchases without
carrying cash or cards.
more
What Is Online Banking? Definition and How It Works
Online banking allows a user to conduct financial transactions via the
Internet. Online banking is also known as Internet banking or web banking.
more
Micro Mining (Cryptocurrency) Definition
16. Micro mining is a lightweight mining activity in which a low-end hardware
device performs the basic activity of transaction authentication.
more
Distributed Ledger Technology (DLT): Definition and How It Works
Distributed ledger technology is a decentralized ledger network that uses
the resources of many nodes to ensure data security and transparency.
more
Blockchain Facts: What Is It, How It Works, and How It Can Be Used
A blockchain is a digitally distributed, decentralized, public ledger that
exists across a network. It is most noteworthy in its use with
cryptocurrencies and NFTs.
more
Partner Links