Internet of Things

Internet of Things (IoT) : Definition, How it Works, Example and Benefits

Internet of things is one of the latest inventions that is currently being developed because it has advantages in terms of functionality and supports performance without the use of cables, and is based on wireless. Technology is a new breakthrough that has been created by humans from several generations. So, every time experiencing many changes and the discovery of new things. At that time, wireless-based network access and resources also developed and replaced the current use of wired networks.

Are you familiar with smart home technology? This technology allows you to control various devices in your home via a smartphone.

You can enjoy all these conveniences thanks to the Internet of Things (IoT). IoT connects various devices through the internet. That way, you can control it anywhere and anytime to make your daily life easier.

In addition to making everyday life easier, IoT can also be used to collect data. The goal is to facilitate decision making in business activities.

In this article, we will discuss everything about what the internet of things is, its constituent elements, how it works, to examples of its application. So, in the future you will better understand the concept and use of the internet of things in everyday life.

What is Internet of Things?

Internet of Things (IoT)

Internet of things is a concept or program where an object has the ability to transmit or transmit data over a network without using the help of computers and humans. The internet of things or often referred to as IoT is currently experiencing many developments.

The development of IoT can be seen from the level of convergence of wireless technology, microelectromechanical (MEMS), internet, and QR ( Quick Responses ) Code. IoT is also often identified with RFID ( Radio Frequency Identification ) as a method of communication.

In addition, it also includes sensor-based technologies, such as wireless technology, QR Code which we often encounter. The ability of the IoT itself is unquestionable. There are so many technologies that have implemented IoT systems, for example light sensors, sound sensors from the latest Google technology, namely Google Ai, and Amazon Alexa.

And most recently, the implementation of Smart City has been carried out in several developed countries, such as China and Germany. Thus, all forms of activity of residents of a city can be monitored properly by a system with a large-scale database network.

The process of data transfer in IoT is carried out with various technologies. For example, sensors, QR Code, to Radio Frequency Identification (RFID) on a device.

By connecting various technologies using an internet connection, IoT can make everyday life easier. This is because connected devices can collect and analyze data to perform your orders automatically.

One example of IoT in everyday life is a smart home system, namely the process of automating the operation of a house or building.

In addition, you can also find it in business activities. For example, the QR Code in the payment method and the barcode scan method to find out the price of the product.

Then, IoT can also be used to collect various data in business processes. For example, data on customer activity, machine performance, and product stock movements.

The data will be processed into insights that help make business decisions. For example, for the development of features that support user experience and decisions in new product innovations.

How Internet of Things (IoT) Works

The way the internet of things works is to use an argument from a programming language algorithm that has been compiled. Where, each argument that is formed will result in an interaction that will help the hardware or machine in performing a function or work.

Thus, the machine does not require assistance from humans anymore and can be controlled automatically. The most important factor in the running of the program lies in the internet network which is the link between the system and hardware. The main task of humans is to be a supervisor to monitor every action and behavior of the machine while working.

The biggest obstacle to the development of the Internet of things is in terms of resources which are quite expensive, as well as the arrangement of a very complex network. Development costs are also still too expensive and not all cities or countries have used IoT as their primary need.

Benefits of Internet of Things in Business

Following are the benefits of Internet of Things for business:

1. Cut Operational Costs

IoT connects various device data in one interface. Included in your smartphone interface. So, you can monitor data and access devices from anywhere.

Thanks to these conveniences, you can cut operating costs. The simplest example, you get a notification that your AC power usage data exceeds capacity. So, you can immediately turn off the AC from your smartphone.

That way, you can turn off the device before it wastes electricity. Your operational costs can also be more efficient, right?

2. Improve Work Efficiency

One of the benefits of IoT is the process of automation of devices. For example, soil sprinklers or automatic fertilizer givers. With automation, business or farm owners can increase work efficiency. This is because time-consuming repetitive work has been done by automated devices. So, employees can move on to other, more important jobs.

3. Providing Insight Data for Business Decision Making

IoT with the help of Artificial Intelligence will process customer data into useful insights for business decisions. What are some examples?

First, you can promote your product to specific customers. The incoming data from the QR Code will be processed into product purchase pattern data from customers aged 20 to 35 years. Using this data, you can find out which customers’ favorite products can be re-promoted later.

Second, you can find out what product features you need to improve or remove. This is because complaints that come in via the chatbot website will be processed into data for consideration.

4. Improve Customer Experience

Another benefit of IoT is that it improves the customer experience. Because IoT can speed up the customer service process. An example is the use of chatbots. The chatbot will automatically answer customer complaints with solutions. So, customers can get solutions faster without waiting. The way a chatbot works is able to make 34% of customers more comfortable than customer service staff. The reason is because they can receive answers faster.

Elements of Internet of Things

Internet of Things IOT

Well, earlier you have listened to how IoT works and the benefits. In that workflow, there are several elements that play a role in IoT. The following are the elements of IoT or IoT level:

1. Sensor

The first element of IoT is sensors. Sensors are devices that function to record and collect data. Usually the sensor is in the form of a micro chip installed in an IoT device. For example, barcode scanning tools, cameras, and smartphone GPS.

2. Connectivity

After the data is recorded, it needs to be sent to the data processing site. Therefore, data needs connectivity. Connectivity is an Internet of Things element that connects one element to another in the IoT ecosystem. For example between sensors, devices, and data stores.

Well, these elements are connected with various types of internet networks. Examples are WiFi, Bluetooth, and satellite. Each type of internet network has a different level of power consumption, range, and bandwidth. However, all of them have the same goal. That is, sending the data obtained to the storage (cloud).

3. Cloud

Well, thanks to connectivity, your data can be sent to the cloud. Cloud is a server for storing and processing data according to the needs of IoT users.

For example, a product barcode recorded by a sensor is processed into a product price that appears on a computer screen. In addition, purchase history data from the QR Code can be processed into customer preference data.

4. Artificial Intelligence

Artificial Intelligence (AI) is an invention that can provide the ability for any technology or machine to think (to be “smart”). So, AI here is done by collecting various data, installing networks, and developing algorithms from artificial intelligence.

So, from the beginning a machine can only carry out commands from the user directly, now it can carry out various activities on its own without waiting for instructions from the user. For example, AI technology is applied to robot waiters at a restaurant in Japan.

Where, the robot’s ability to think like a real human servant. Because in the control system the robot has used the help of AI. By covering various sources of data and information completely and complex algorithms.

5. User Interface

The last element is the user interface. The user interface serves to display information that has been processed by the cloud to IoT users.

For example, a display on a smartphone that presents data on air conditioning temperatures in your office or home. When the power usage exceeds the reasonable limit, you will receive a notification on your smartphone.

Example of Internet of Things

Internet of Things IOT Examples

There are so many examples of the application of IoT in everyday life that you are very close to without realizing it. The following are some examples of fields that have implemented Internet of Things technology.

1. Health sector

The first example of the internet of things in the health sector. Currently, there are lots of advanced technologies that can help the performance of doctors and medical personnel. IoT also makes a new breakthrough in the development of medical machines and devices to support the performance of medical personnel to be more effective, precise, and reduce the risk of errors.

One example of the existence of IoT in the world of health is helping in the process of recording heart rate data, measuring body sugar levels, checking body temperature and so on. The data obtained will be stored in large-scale data storage.

Currently better known as big data. By using big data, you can read information and data in the form of numbers or text quickly and efficiently. Medical personnel no longer need to manually record, because all information can be stored in a database and will be sent to the IoT machine to perform tasks according to the developed algorithm.

2. Energy field

In the energy sector, there are various problems that arise. Starting from pollution or pollution, waste, and reduced supply of resources. Therefore, the existence of IoT itself is able to reduce some of these risks. For example, the application of a light sensor is able to reduce the use of electrical energy.

With this sensor, it is able to capture light particles, so when there is a lot of light, the lights will turn off. However, when there is no light supply, the light will automatically turn on.

Then, it can also apply to the scheduling function that is carried out on the oven machine, the heating machine that has been integrated with the internet network. And a concrete example that we often encounter is on smart TVs that have implemented IoT for channel search methods tailored to the user’s choice ( user ).

3. Transportation

Intelligent technology has also reached the field of public transportation. Usually, you always drive a car yourself according to the rules and driving skills you have learned. However, did you know that there is currently a new invention, where you can run a car without driving yourself.

The car can run itself according to procedures and programmed properly. So, you can feel the sensation like on the autopilot system on an airplane. The vehicle development stage is still being piloted in several developed countries.

Apart from vehicles, traffic systems are also included in the scope of the internet of things. With Internet of Things (IoT), you are able to control various traffic systems when conditions are jammed or quiet. Thus, it can reduce the risk of accidents and traffic violations that occur.

4. General environment

The last example of the internet of things is in the field of the general environment. Where all human, plant, and animal activities can be monitored and monitored using IoT technology. For example, conducting research on water quality requires an accurate and reliable source of information.

With the help of the internet of things, you are able to search for valid and fast data sources. Not only that, the geographical area presented is also quite broad and can reach more areas. With the help of big data, problems regarding data transfer speed and data reading are well covered.

5. Agriculture

There are various applications of IoT in agriculture. One example is the technology of detecting rainfall and the state of agricultural land. Both of these tools will collect and process data. For example data fluctuations in soil temperature and humidity.  So, the data will be used for decision making by farmers. For example, fertilizing and applying more precise pesticides.

6. Business Field

An example of the application of IoT in the business field is the automation process in business services. The goal is to make it easier for customers to buy products. The following are examples of IoT that you can find in the business field:

  • QR Code Payment

QR Code payment is an IoT that you often encounter nowadays. Especially when you pay for a product. For example, you visit a website to buy a product. The website has a QR Code for product payments.  When you scan the QR Code with your smartphone camera, you will be asked to enter the payment amount. After making a payment, your data will be recorded and stored in the website database. This process will produce various customer data that is processed by IoT into various types of specific data. For example, the trend of product purchases.

  • Website Chatbot

Another example of IoT is chatbots. Chatbots are commonly used in 24-hour Customer Service on a website. A chatbot is a computer program that mimics human interactions in chat. The difference is, this chatbot is connected to IoT machine learning. Its function is to receive data and respond to that data automatically based on data analysis.

For example, there are customers who complain about a product to the chatbot of an online store website. In a short time, chat customers immediately get a reply in the form of a solution to their problem.

  • Barcode

Barcode is an example of IoT in everyday life. Barcodes are usually used to store and display information related to certain products. For example, product stock quantity, price, and process details in the factory.  Say you have a product in stock. You put a barcode on each product. When the barcode is scanned by the sensor, you will see detailed information about the product.

Well, those were various examples of IoT in everyday life based on several industries. IoT has many benefits for everyday life and business, you know. Read on for the next discussion.

Benefits of internet of things

After knowing in detail about the example of the internet of things, the next step is to discuss the benefits of the internet of things. The benefits here can be divided into three parts.

Simplify the connectivity process

The first benefit of Internet of Things is that it makes it easier to connect between devices or machines. The better the connection between the networks, the more the device system can run faster and more flexibly.

Many of you may still use conventional tools, but if you are trying to operating system centrally only through mobile devices, then the answer is definitely using smart technology.

Achievement of efficiency

The second benefit of the internet of things is the achievement of work efficiency. The more network connectivity that builds up, the less the amount of time it takes to perform a task will decrease. Thus, human activity and performance will be more assisted by the existence of IoT.

Increase the effectiveness of monitoring activities

By using the internet of things, the effectiveness of controlling and monitoring a job becomes easier. In addition, intelligent technology is also able to provide recommendations or work alternatives that are easier for users.


  • Internet of things is a concept where objects are able to transmit data using a network to perform work activities without the assistance of humans or interaction with computer devices.
  • The IoT elements consist of several parts, such as connectivity, Artificial Intelligence (AI), small system devices, sensors, and active engagement. The way the IoT works is created by making programming algorithm arguments, to generate program interactions with the internet network as a link between the two things.
  • Examples of the application of IoT can be done in various fields such as health, transportation, environment, energy, and so on. The main benefits of the internet of things are the achievement of efficiency, effectiveness, and connectivity.