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6.7 The Internet of Things and M-Commerce 185

6.7 THE INTERNET OF THINGS through its embedded computing system but is able to inter-
AND M-COMMERCE operate within the existing Internet infrastructure.”
According to Miller (2015), these are the characteristics
The topic of the Internet of Things (IoT) has been receiving of the Internet: IoT is a connected ecosystem in which:
significant attention since 2014. While its applications are
still emerging, it has a tremendous potential for creating • Large numbers of objects (things) can be connected
value and innovations in many fields, including e-commerce • Each thing has a unique definition (IP address)
(e.g., see Manyika et al. 2015). In this section, we present the • Ability to receive, send and store data, automatically
essentials of IoT and its potential applications that are related • Delivered over the wireless Internet
to e-commerce. Most of these are in the area of m-commerce. • Built upon machine-to-machine (M2M) communication
For the impact of IoT on e-commerce, see Constantinou and
Sellebraten (2015) and Mehra (2015).
The Structure of IoT Applications

The Essentials of IoT Things in IoT refer to a variety of objects and devices from
cars and home appliances to medical devices, computers, fit-
The Internet of Things (IoT) is an evolving term with sev- ness tracers, hardware, software, data, sensors, and much
eral definitions. In general, The IoT refers to a situation where more. Connecting “things” and allowing them to communi-
many objects (people, animals, items) with embedded micro- cate is a necessary portion of an IoT application; but for more
processors are connected mostly wirelessly to the Internet. sophisticated applications, we need other parts: A control sys-
That is, it uses ubiquitous computing. Analysts predict that tem and a business model. The IoT enables the “things” to
by the year 2020, there will be more than 50 billion devices sense or be sensed wirelessly across the network. A non-Inter-
connected to the Internet, creating the backbone of the IoT. net example will be a temperature control system in a room.
The challenges and opportunities of this disruptive technol- Another non-Internet example is a traffic light at intersections
ogy are discussed in an interview with Peter Utzschneider, of roads where cameras photograph the number of cars com-
vice president of product management for Java at Oracle (see ing from each direction and a control system adjusts the time
Kvita 2014). for changing the lights according to programmed rules. Later
Embedding mobile devices into items everywhere and con- on, we will introduce some Internet- based applications. The
necting all devices to the Internet permits extensive communi- major objective of IoT systems is to improve productivity,
cation between users and items. This kind of interaction opens quality, speed, and quality of life.
the door for many applications. For business applications of
the Internet of Things, see Jamthe (2015). In addition, check
the “Internet of Things Consortium” (iofthings.org) and their The Major Benefits of IoT
annual conferences. For the technology, see Holler et al. (2014).
According to Basu and Didyala (2014) and Miller (2015),
Definitions the major benefits of IoT are:

There are many definitions of IoT. Wikipedia provides this
definition: • Create new revenue stream
“The Internet of Things (IoT) is the network of physical • Optimize asset utilization
objects-devices, vehicles, buildings and other items embed- • Improve sustainability
ded with electronics, software, sensors, and network connec- • Improve workers’ productivity
tivity—that enables these objects to collect and exchange • The Internet of Things is changing and improving
data. The Internet of Things allows objects to be sensed and everything (McCafferty 2015)
controlled remotely across existing network infrastructure, • Systems will anticipate our needs
creating opportunities for more direct integration of the • People will make smarter decisions/purchases
physical world into computer-based systems, and resulting • Greater accuracy
in improved efficiency, accuracy, and economic benefit; • Identify problems quickly (even before they occur)
when IoT is augmented with sensors and actuators, the tech- • Reduce cost by automating processes
nology becomes an instance of the more general class of • Instant information availability
cyber-physical systems, which also encompasses technolo- • Quick and inexpensive tracking
gies such as smart grids, smart homes, intelligent transporta- • Expedite problem resolution and recovery
tion, and smart cities. Each thing is uniquely identifiable • Support facility integration