While Ashton coined the term, the true beginnings of the Internet of Things as a completely new technology, started back in the 1960s. Read more about the historical developments here.

How Does the Internet of Things Work?

The technical foundations for the IoT are the Internet and microprocessor technology. A microprocessor is installed in a device and networked via the Internet by means of an additional wired or wireless interface. Wireless technologies include WLAN, Bluetooth, UMTS and LTE.

For example, in a business environment, RFID technology could be used to identify goods and merchandise so as to improve logistical processes. Transponders would be attached to the goods: The transponders would contain information or data about the respective goods. This transponder would then be recognized and read wirelessly by a reader. The reader, which would be networked with the Internet, would then send the recorded data to other computers and networked devices for further information processing.

Each of the devices in the Internet of Things is uniquely identifiable via its own Internet address and can therefore be contacted by humans via the Internet. Nevertheless, the influence of humans remains limited because these devices equipped with sensors are networked with each other via the Internet; therefore, they can exchange data, act independently, adapt to situations, collect new data and react to scenarios accordingly without human help.

What are IoT Products?

When we talk about IoT products, or so-called smart objects, in the context of the Internet of Things, we usually mean physical objects, such as household appliances, vehicles, wearables, and industrial tools. These can range from a washing machine that switches on when electricity is cheapest, to wearables and tools that prevent assembly errors and increase workplace safety, to a car that finds the next free parking space.

Where is IoT Being Used?

Industries or companies benefit from IoT when the application of sensor devices in their business processes bring advantages. The following are some examples of this:

  • Transportation and logistics: Ships, trucks or trains transporting goods across the country can be rerouted based on changing weather conditions, vehicle state or driver availability by using IoT sensor data. The goods themselves can also be equipped with these sensors to support shipment tracking or temperature control and monitoring.
  • Retail: Using IoT sensors, retailers can more easily manage inventory, improve customer satisfaction, reduce operating costs, and optimize supply chains. For example, inventory could be controlled by equipping shelves with weight sensors, collecting RFID-based information and relaying it when necessary.
  • Manufacturing and production: In manufacturing, sensors can monitor production equipment to proactively maintain machines or detect if production performance is compromised.
  • Automotive: In addition to the capabilities in manufacturing, sensory devices in vehicles can detect potential equipment failures and alert the driver.

A Slightly Different IoT Example

One company that uses OTRS to handle customer requests for both internal and external service management in their IT department and has strict OLAs in place. OLAs have been set with a only a few minutes allowed for response time. (An OLA or Operational Level Agreement is more or less an SLA, also known as a Service Level Agreement, between two departments.)

Each ticket that comes has such an OLA. The response time specified by the company is 20 minutes. One service employee is assigned to each ticket as the responsible person. But since the employee has only 20 minutes to answer and gather the relevant information, there is no time to make coffee.

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OTRS AG published this content on 11 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 January 2021 10:15:02 UTC