In the “Internet of Things” everything communicates with everything. Only without people.

Definition of Internet of Things

The term “Internet of Things” (“IoT”) describes the rapidly growing number of digital devices and knows only one direction: forward. The number has now reached billions – some of which communicate with each other worldwide via networks. In contrast to the personal Internet of People, the IoT comprises only intelligent sensors and other devices. In addition to computers, tablets and smartphones, these include wearables, consumer electronics, household appliances, vehicles and industrial machines. For example, the IoT collects operational data from remote sensors on oil platforms or weather data, and also monitors intelligent thermostats. Other drivers of this development are cloud technologies, big data and IT security. Together they pave the way for the digital transformation of companies. And even the Internet of Things is only one stage: the Internet of Everything will connect data, people, machines and processes.

Lower Costs, Greater Productivity – Advantages of the Internet of Things

In particular, machine-to-machine (M2M) communication currently promises the industry innovative, disruptive business models and thus new growth opportunities. Fully networked value chains in the sense of an industry 4.0 mean a new production logic: intelligent machines, warehouse systems and equipment that exchange data without human intervention and control themselves independently. With the help of the Internet of Things, a company can design its product portfolio much more flexibly and change production processes faster – for example to react to delivery bottlenecks or customer requests. This is why 44 percent of companies in the mechanical engineering, chemical, electrical and automotive industries use applications from the Internet of Things, and 18 percent plan to use corresponding technologies (Bitkom, 2015). The Internet of Things also makes it possible to gather completely new insights and, for example, to link weather influences to industrial production.