Understanding the Internet of Things: A SMB Guide to the Basics

by Matt DeGennaro
MPD President 
732-236-6161  email

Rapid innovation over the past four decades has created a virtual reality for many people. From home computers to wearable devices, most people’s lives depend on digital connections. And what was incomprehensible 20 years ago is commonplace today as computing technology has cultivated and upheld capabilities that enrich lives. But, as the newest generation of technological advancement emerges, many small to mid-size business owners are asking just what the Internet of Things (IoT) really is, how it works, and how it will impact their operations in the near and distant future.

IoT 101

The Internet of Things is sometimes referred to as ‘pervasive,’ or ‘everywhere’ computing, or ambient intelligence. But regardless of the moniker bestowed, it involves various sensors connected to software, components, or services designed to make them useful. Basically, it’s a method of using the Internet to make lives more productive, healthier, or more comfortable.

Sensors can be classified into three categories: those connected to an organism (like the body), those connected to another object (a machine), and those that monitor the environment (tangible existence). They are used to sense and detect things like:

• Location, movement, speed
• Temperature, humidity
• Light, colors, sounds, and images
• Air quality, on/off indicators
• Vital readings like heart rate, oxygen levels, blood pressure, or blood sugar

By using wireless tools such as Bluetooth and RFID (radio-frequency identification) attached to wearable devices, the sensors send information that can be used to enhance lives through instant analysis.

How Does the IoT Effect SMBs?

While the sensors can be employed for all sorts of practical, personal benefits, in the business world, the Internet of Things will eventually have a major impact. Truly, the results will enhance every area of operation from customer service to product launches.

For example, with a system of sensors, a retail establishment can monitor who enters the store and when, correlate foot traffic with marketing strategies or consumer trends, and evaluate wait times for cashiers or assistance.

Service-based businesses such as insurance agents or realtors can use sensors to physically track customer file locations to prevent misplacement. Dry cleaners can use sensors to embed ID’s into garments that include instructions, and which can notify the owner when the garment is ready for pick up. Even restaurants and coffee shops can use them to identify repeat customers by name and favorite menu item.

Indeed, the Internet of Things will enhance supply chain management by improving stock visibility and being able to automatically initiate replenishment shipments based on POS data. And production environments and other industrial facilities can be effortlessly monitored for security, safety, and optimum working atmosphere.

What about Cyber-Security?

Security is a constant concern for any connected transmission, but the Internet of Things won’t necessarily be any more or less susceptible to security breaches. The same attention that is shown to current online security will be required for IoT.

What Investment Is Required?

For SMBs, investing in the Internet of Things will be an individual choice. It will largely depend on the current level mobility enjoyed, or planned by the specific enterprise. But, make no mistake; the IoT will only continue to expand as more SMBs realize the competitive advantages it can offer their business.

Although there will most likely be winnowing process as sensors and devices are tested for functionality, the Internet of Things is poised as the next big advancement in the world of technology, ready to make everyone’s life a little easier.