What is the Internet of Things (IoT)?

The internet of things (IoT) is a concept describing how physical objects may be connected to the internet to exchange data with other devices.

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Things to know about internet of things (IoT)
Introduction to IoT How do IoT devices work? What are examples of IoT devices? Why is IoT important? What technologies support IoT? What are the advantages of IoT? What are the disadvantages of IoT? What are IoT standards? What is an IoT framework? What are the threats to IoT device security? How can IoT devices be protected from security threats? ServiceNow for IoT
Expand All Collapse All Introduction to IoT

Long gone are the days when internet connectivity was relegated just to the desktop computer. Now, the internet travels with us, in the form of mobile digital devices. And with this mobilised connectivity, our concept of the internet itself is expanding. IoT incorporates billions of connected things — everyday objects embedded with sensors and other technology, and capable of sending and receiving data through the internet.

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How do IoT devices work?

The IoT itself consists of a web of internet-enabled smart devices. Although each of these devices is different, they all share certain commonalities.

At their most basic, IoT objects gather data. Each object is essentially its own, self-contained computer with its own internet IP address. Data is automatically collected through built-in sensors, and can then be shared through the internet, transferring data among objects, systems and people, without the need for human interaction. IoT objects range in sophistication from simple monitoring devices to extremely complex self-controlling machinery and AI-enhanced equipment.

When an IoT object interacts with the world, built-in sensors gather relevant data. For example, a modern wind turbine would be capable of collecting data on motor temperature, wind speed and rotations.

Once the data has been captured, the object then sends it into the cloud. To do this, it may rely on a variety of methods, including direct ethernet connections, Wi-Fi, 4G or 5G mobile, Bluetooth, low-power wide-area networks or satellites. Each of these options has its own strengths and limitations in terms of bandwidth, range and availability; individual IoT devices will often be optimised for specific connectivity protocols.

When IoT data arrives in the cloud, it is then processed by server-based software. Once processed, the information is made available to the end user. In the example of the smart thermostat, the temperature data is compared against a predetermined range—if the temperature fits within that acceptable range, no action is needed, but if the temperature is outside of that range, then the thermostat may alert the user, or automatically activate the room’s heating or cooling systems to bring the temperature back within the acceptable range.

In terms of B2B applications, the data is made available to remote operations teams who then triage and investigate any issue that is detected by predetermined rules. These teams then decide whether to remotely address the issue, or to send a field service technician to resolve it on site. Alternatively, potential issues may be pre-emptively addressed; by monitoring equipment for warning signs, remote operations teams may elect to perform preventative maintenance to resolve problems early, rather than waiting for the equipment in question to fully fail.

In many cases, users can directly interface with the IoT platform through a connected application, via their mobile device or web browser. This allows them to set parameters and adjust, or to simply check in on how the device is performing. When a user makes changes to their equipment, the IoT device sends information to the cloud where it is processed, and then is delivered to the device itself.

What are examples of IoT devices?

As the Internet of Things grows, so do the number of use cases of traditionally non-digital objects benefiting from internet connectivity. In fact, this may include everything from smart bulbs that may be brightened or dimmed to correspond with daily sunlight availability, to entire smart factories capable of connecting previously disparate systems and equipment to help refine and optimise their operations.

Most of these real-world applications fall into the 5 most common categories:

Customer IoT

Consumer IoT consists of the physical IoT devices purchased, owned and operated by individual consumers. These include many of the most well-known smart objects, such as:

  • Fitness trackers
  • Health sensors
  • Smart thermostats
  • Air-quality sensors
  • Smart door locks
  • Audio assistants
  • Wireless printers
  • VOIP phones
  • Smart lighting
  • Crash sensors
  • Home-energy monitoring and control
  • Smart appliances
  • Smart smoke detectors

Enterprise IoT

Although there may be some overlap with consumer IoT in terms of specific technologies, enterprise IoT focuses on collecting, sharing, and acting on data relevant to business and retail locations. This includes:

  • Smart wind farm turbines
  • Connected vehicles
  • Smart energy grids
  • Soil/irrigation monitoring devices
  • Supply chain trackers
  • Inventory tracking tags
  • Patient monitoring devices
  • Smart farming systems

Industrial IoT

Industrial IoT (IoT) is also gaining prominence, allowing factories, manufacturers and other industrial organisations to better understand and manage how devices interact. These systems include:

  • Industrial control systems
  • Production monitors
  • Predictive machine analytics devices
  • Worker wearables
  • Quality control systems
  • Remote process automation and optimisation
  • Temperature, flow, pressure and humidity sensors
  • Condition-based maintenance alerts
  • Location beacons

Internet of military things (IoMT)

IoMT involves the integration of Internet-connected military devices designed for defence applications. This can enhance information sharing, situational awareness and tactical decision-making. Examples of IoMT devices include:

  • Unmanned aerial vehicles (UAVs, also called ‘drones’)
  • Military wearables for health and performance monitoring
  • Advanced communication systems
  • Sensors for surveillance and reconnaissance
  • Vehicle and fleet management systems
  • Remote-controlled robotic weaponry

Infrastructure IoT

Infrastructure IoT is employed in the planning, monitoring and control of infrastructure—roads, bridges, water supply and energy grids. By using IoT devices, governments and organisations can optimise maintenance schedules, reduce costs and enhance safety. Examples of Infrastructure IoT devices include:

  • Smart traffic control systems
  • Environmental sensors for monitoring pollution
  • Energy management systems for electrical grids
  • Smart meters
  • Structural health monitoring for bridges and tunnels
  • Water quality monitoring systems
  • Waste management systems

It’s also worth noting that there is a lot of overlap between these categories, with many of the same kinds of IoT devices being employed across consumer, enterprise and industrial applications.

Why is IoT important?

There are several clear advantages for IoT in business, but perhaps the most important are those that centre on assisting people and optimising processes. Here, we highlight several key benefits:

Improved workforce productivity

Employees make or break a business. When they have the resources and support that they need, they can better perform their functions and promote business growth throughout their company. IoT helps employees and managers, by allowing for accurate analytics, simplified collaboration via portable devices, and more-effective monitoring, control and management of a business’ entire workforce. IoT also allows for improved automation, with offices deploying a range of connected devices to help automate repetitive tasks and freeing valuable employees to focus on more complex work. As a result, IoT-enhanced workforces can accomplish more in less time.

Process mining

The first step in optimising processes is mining them for clearer insights—collecting data on how and when they are being used. IoT devices provide that data automatically and constantly, allowing business process management teams to put processes under a microscope, evaluating strengths and weaknesses, and identifying inefficiencies or other potential issues. By providing a clear picture of existing business processes, IoT can help organisations refine and improve how they perform vital tasks.

Enhanced customer experience

Every customer is a unique individual, with unique needs and wants. Providing a positive customer experience depends on understanding and providing for those needs on a personal level. IoT can deliver reliable data related to customer purchasing habits and preferences. Applying behaviour analysis through connected products, businesses can develop a more accurate picture of their audiences and individual customers. Armed with this knowledge, they can then more accurately personalise each customer's experience.

Remote monitoring and control

Organisations that employ IoT objects can collect large amounts of precise, up-to-date information relating to their own products and internal systems. For example, by monitoring data from a specific piece of machinery, a business can quickly identify a faulty component, and take action to repair or replace it before it fails and causes damage. Likewise, constant monitoring is a reliable solution to issues related to regulatory compliance. Devices, processes, or employees that fail to meet regulations may quickly be identified and correct action taken to bring them back in line.

What technologies support IoT?

Enabling the vast web of connectivity that is the internet of things requires an array of supporting technologies for gathering, transmitting analysing, and acting on data. Here's a look at several foundational technologies that play a pivotal role in supporting IoT:

  • Machine learning algorithms and analytics tools allow organisations to automate IoT data analysis. This makes it possible for them to interpret massive amounts of data in real time and at low cost. Correctly applied, this technology uncovers valuable insights and informs accurate predictions.
  • Conversational AI plays a critical role in enhancing the interaction between humans and IoT devices. Voice-activated assistants (such as Apple's Siri or Amazon's Alexa) have made communicating with intelligent programs as easy as having a conversation, and chatbots and other natural language processing interfaces are making IoT more intuitive and accessible, and has helped the IoT devices see wide acceptance.
  • Cloud platforms are essential for storing, processing and managing the data shared by IoT devices, offering scalable and flexible solutions and allowing for real-time processing and analysis. Cloud computing solutions coordinate devices and systems that are not necessarily tied to the same local network, ensuring that information is available when and where it's needed.
  • Connectivity is the backbone of IoT, allowing devices to communicate with each other and with centralised systems. Various connectivity options such as Wi-Fi, 4G or 5G mobile, Bluetooth and low-power wide-area networks provide different strengths and limitations, depending on the specific requirements of the IoT application. Various IoT network protocols further help ensure strong connections.
  • Sensors are the eyes and ears of IoT, providing the ability to monitor, measure and collect data from the physical world. Advances in sensor technology have led to the development of affordable, durable and reliable sensors that can be deployed across a wide range of applications. Whether it's temperature monitoring in a smart building or tracking vehicle movement in a smart city, sensors gather the real-time data that drives intelligent decision-making.
What are the advantages of IoT?

The Internet of Things revolutionises the way businesses and individuals interact with the world around them. By interconnecting various devices and systems. IoT allows for more intelligent decision-making and streamlined operations. Primary business benefits of IoT include:

  • With IoT, data is readily available across multiple devices. This accessibility enhances flexibility and ensures that organisations are always in touch with the critical business insights they depend on.
  • Automation through IoT minimises manual tasks, allowing employees to focus on complex activities. This leads to cost reduction and improved efficiency as IoT-enhanced workforces accomplish more in less time.
  • IoT fosters seamless communication between many devices and systems. This interconnected web of smart technologies establishes harmonised workflows where devices can share, interpret and act upon data without excessive human intervention.
  • Automated scheduling and monitoring implemented with the help of interconnected sensors enable higher efficiency of resource use, such as improved power management and water consumption.
  • By automating mundane tasks and providing instant access to data, IoT enables businesses to save both time and money. Automation means fewer manual interventions, reducing the chance of errors and speeding up processes. Real-time monitoring and predictive analytics also allow for proactive maintenance and decision-making, saving costs on unexpected breakdowns and reactive measures.
What are the disadvantages of IoT?

While there are many benefits of employing IoT in the business environment, it's worth recognising that this technology may also introduce specific challenges and even potential dangers. These disadvantages can include:

  • With an increasing number of interconnected devices, the likelihood of encountering security risks multiplies. Each connected device can become a potential entry point for cyber-attacks. Ensuring robust security measures across all connected devices becomes more complex and vital to prevent unauthorised access and data breaches.
  • IoT generates massive amounts of data from various sources. Managing, analysing, and storing this big data can be daunting, requiring sophisticated tools and expertise. Without proper data management, crucial insights may be lost, and the efficiency gains from IoT may be diminished.
  • The interconnection of devices can lead to scenarios where if one device is corrupted, it can quickly spread to other IoT devices on the network. This can lead to widespread malfunctions, loss of data, or other significant issues that are often time-consuming and expensive to resolve.
  • IoT is a relatively new advancement without much in the way of agreement about standardised protocols or universal technologies. This leads to compatibility issues where different devices and systems may not function together optimally, particularly if they are using different standards. This can hinder the integration and effectiveness of IoT solutions, and sometimes necessitate costly modifications or replacements to ensure that everything works in harmony.
What are IoT standards?

IoT standards allow devices and systems to communicate and work together effectively. These standards define the rules for various IoT technologies—facilitating interoperability, enhancing security and ensuring reliable performance. As previously mentioned, there is no single, universally recognised IoT standard for every set of circumstances, but some of the most widely used standards include:

  • Advanced Message Queuing Protocol: A protocol for message-oriented middleware, this standard enables flexible messaging between devices.
  • Constrained Application Protocol: Designed for constrained nodes and networks in the IoT, this web transfer protocol provides a method for constrained nodes to communicate with the wider Internet, using a subset of HTTP.
  • Data Distribution Service (DDS): This standard provides a scalable solution for real-time data distribution and is often used in industrial IoT applications where timely and reliable communication is critical.
  • IPv6 over Low-Power Wireless Personal Area Networks (6LoWPAN): This standard is particularly useful for small, battery-operated devices that require efficient networking capabilities.
  • LiteOS: This is an IoT-oriented operating system designed to be lightweight and powerful.
  • Long Range Wide Area Network (LoRaWAN): A protocol designed for low-power wide-area networks (LPWAN), LoRaWAN enables long-range communication with low power consumption, making it ideal for applications where devices need to send small amounts of data over long distances.
  • OneM2M: A global standardisation initiative, OneM2M aims to develop a universal framework that allows IoT devices and services to work together across different industries and applications.
  • ZigBee: A specification for high-level communication protocols using low-power digital radios. It's known for its low cost and power efficiency.
What is an IoT framework?

An Internet of Things framework is a comprehensive set of tools, libraries, guidelines and protocols that assist in the development, deployment and management of IoT applications and smart connected devices. Ideally, an IoT framework provides organisations with access to all the features and capabilities they need to simplify the IoT design process and improve scalability. These frameworks are primarily classified into two categories:

Open source

Open-source IoT frameworks are publicly accessible and may be modified and shared freely. Developers and businesses can use these frameworks without paying any licensing costs, and they are often supported by a collaborative community who regularly contribute to the framework and are available to help troubleshoot solutions. Popular open-source IoT frameworks include Thinger.io, Mainflux and Kaa.

Pros of using an open-source IoT framework:

  • Because the source code is available, developers can modify it to suit specific needs.
  • A broad community often supports open-source projects, offering help, plugins and extensions.
  • There are no licensing fees, making it more accessible for startups and smaller companies.

Cons of using an open-source IoT framework:

  • The open nature of open-source frameworks might lead to compatibility issues with various hardware and software components.
  • Although there's community support, the absence of a dedicated professional support team can be a drawback.

Proprietary

Proprietary IoT frameworks are owned by specific organisations and may only be used by permission (usually in the form of purchasing a licence). They provide a controlled environment and are typically developed to cater to particular industry standards or business needs.

Pros of using a proprietary IoT framework:

  • Proprietary frameworks usually come with dedicated support from the company that owns the framework.
  • Because they are developed and managed by a single entity rather than from a community with varying levels of security expertise, proprietary IoT frameworks tend to provide greater digital security.
  • Many proprietary frameworks are tailored for specific industries, providing specialised features and tools.

Cons of using a proprietary IoT framework:

  • Proprietary frameworks can be expensive, as they often come with licensing fees.
  • Since the source code is not publicly available, customisation can be limited.
What are the threats to IoT device security?

Despite the benefits of IoT, it brings with it several potential security issues that businesses and consumers should be aware of.

Oversharing of sensitive data

As many IoT devices are designed to automatically collect and share data, they may end up exposing sensitive information. For example, a consumer IoT voice-assistant device capable of listening to conversations to determine interests and buying habits may also pick up on sensitive personal data; anything said within earshot of the device is essentially fair game to the object. Often, it is up to the IoT object manufacturers themselves to make sure that sensitive data is not being used inappropriately.

Ineffective protection from hackers

Many IoT devices are essentially computers that have been stripped down and simplified to perform only the most basic of tasks (such as collecting and sharing data). But they are still computers connected to the internet, and in streamlining their operating processes, many IoT companies may be making these devices more susceptible to outside threat actors.

And while a hacker might not be able to get through the firewalls and other security measures surrounding a company desktop computer or integrated mobile device, they may have much more luck entering the system through an unsecured piece of IoT industrial machinery. Doing so, they are not only able to attack vital IoT devices directly, but they can also gain access to a business’ network from the inside, leading to opportunities to eavesdrop on, disrupt, and steal important data.

Inability to address existing flaws

Unfortunately, a flaw exposed by IoT device manufacturers is that many devices include software flaws which cannot be patched. The IoT objects themselves include no updating capabilities, so even when flaws are identified, users have very few options in ensuring that these flaws are not being exploited. This puts some IoT devices permanently at risk.

How can IoT devices be protected from security threats?

Protecting IoT devices and the users and businesses that rely on them can be a difficult prospect. Adding security features takes up limited IoT resources and may impact an IoT object’s functionality. At the same time, there is little standardisation between IoT vendors with regard to providing improved IoT protection.

That said, there are steps that users and businesses can take to help defend against some of the more-obvious IoT security threats. These include the following:

  • Stronger passwords
  • Improved authentication/authorisation
  • Network segmentation
  • Enhanced encryption
  • Practical Cryptography
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ServiceNow for IoT

As more and more devices connect and operate online, the need for increased data capacity becomes even more prominent. Rather than handling this growing need using in-house servers and data storage, most IoT-relevant organisations are making the switch to data processing in the cloud. As such, cloud digital platforms are providing a natural resource for IoT and allowing businesses to integrate their data with relevant systems and processes, for a more efficient approach to IoT. ServiceNow is leading this charge.

Built on the award-winning Now Platform, Connected Operations from ServiceNow allows organisations to realise the full value of their IoT investments, allowing businesses to move beyond dashboards and instead employ automated issue resolution. Combining IoT data with advanced digital workflows, Connected Operations gives businesses the power to automatically resolve issues before they become problems, and to bring teams together on a single, centralised platform.

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