How does IoT work ?

IoT refers to any system of physical devices that receive and transfer data over wireless networks with limited human intervention. This is made possible by integrating compute devices in all kinds of objects.

For instance, a smart thermostat (smart usually means IoT) can receive location data from your smart car while you are commuting. These connected devices can adjust your home’s temperature before you arrive. This is achieved without your intervention, and produces a more desirable result than if you manually adjusted the thermostat.

A typical IoT system like the smart home described above works by continuously sending, receiving, and analyzing data in a feedback loop. Depending on the kind of IoT technology, analysis can be conducted either by humans or artificial intelligence and machine learning (AI/ML) in near real-time or over a longer period.

Think of the smart home example. In order to predict the optimal time to control the thermostat before arriving home, your IoT system might connect to the Google Maps API for data about real-time traffic patterns in your area. It could also use the long-term data your connected car collects to inform commuting habits. Beyond that, IoT data collected from every smart thermostat customer can be analyzed by utility companies as part of large-scale optimization efforts.