Title: Internet of Things Author: Kriko Published: May 26, 2023 Last modified: Jul 7, 2026 --- 1. [Home](https://kriko.io/) / 2. [Glossary](https://kriko.io/glossary) / 3. I Letter # Internet of Things The **Internet of Things**, commonly abbreviated as IoT, is a technology approach that enables physical objects equipped with sensors, software, processors and communication capabilities to exchange data with other devices and systems. These objects may collect information from their surroundings, transfer it to central platforms and perform automated actions under defined conditions. Everyday devices, machinery and industrial equipment can therefore become part of a connected network. This connectivity allows physical environments to be monitored and managed digitally. IoT can be used in homes, factories, workplaces, healthcare facilities, agricultural environments and urban infrastructure. Smart home systems, wearable devices, wireless sensor networks, remote monitoring solutions and building automation are common applications. In industrial environments, machine performance can be monitored, potential failures can be predicted and production processes can be managed remotely. Smart city projects may use sensor data to improve traffic, lighting, energy consumption and waste management. The Internet of Things is closely associated with machine-to-machine communication and remote-control technologies. However, IoT involves more than simply connecting devices. The information generated by those devices must be transferred, stored, processed and converted into meaningful results securely. Network infrastructure, cloud computing, data analytics, artificial intelligence and cybersecurity are therefore important parts of an IoT environment. The expansion of IoT devices is causing the volume of generated data to increase rapidly. Wearable technologies, smart meters, manufacturing sensors and connected vehicles may produce continuous streams of information. This data can be processed in real time or at scheduled intervals to analyse user behaviour, system performance and environmental conditions. However, increasing data volumes also create additional requirements involving storage, privacy, security and data quality. An IoT system generally consists of physical devices, sensors, connectivity infrastructure, data-processing environments and user applications. Physical devices collect information from their surroundings or perform defined tasks. Communication networks transfer this information to other devices, local systems or cloud platforms. Software and analytical systems then transform the data into insights or automated actions. The classification of things, processes, data and people is also commonly associated with the broader **Internet of Everything** concept rather than being a universal IoT framework. Things refer to physical devices and sensors, while data represents the information they produce. Processes ensure that the right information reaches the appropriate system or person at the correct time. People represent the users and decision-makers who apply the resulting information. The Internet of Things can help businesses manage resources more effectively, monitor operations and automate repetitive processes. Real-time information can support closer monitoring of energy consumption, production capacity, inventory levels and equipment performance. This may improve efficiency, reduce workload and help control certain operational costs. 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