IoT (Internet of Things in Operations)
Name variants
- English
- IoT (Internet of Things in Operations)
- Katakana
- ・
- Kanji
- 運用 / 現場活用
Quality / Updated / COI
- Quality
- Reviewed
- Updated
- Source
- Citations & Trust
- COI
- none
TL;DR
The Internet of Things (IoT) connects physical devices to collect and exchange data, enabling real-time monitoring and automation.
Definition
IoT links sensors, devices, and software through networks so physical assets can generate data and be controlled remotely. In operations, IoT supports predictive maintenance, asset tracking, and energy optimization, but requires security, data governance, and integration with core systems. The value comes from turning sensor data into decisions, not from connectivity alone.
Decision impact
- Determines which assets should be instrumented and where ROI is highest.
- Sets priorities for security, data storage, and system integration.
- Guides process redesign when real-time data becomes available.
Key takeaways
- Sensors without analytics rarely create business value.
- Interoperability and data standards are common bottlenecks.
- Security and privacy must be addressed from the start.
- Start with a clear operational use case and measurable KPI.
- Pilot deployments reduce risk before scaling fleet-wide.
Misconceptions
- IoT is just adding sensors; the decision layer is the hard part.
- All data must be stored; filtering and aggregation are essential.
- Connectivity automatically yields savings; workflow changes are required.
Worked example
A factory installs vibration sensors on critical machines. The system detects anomalies and schedules maintenance before failures occur. Downtime drops and spare-parts inventory is optimized. The team then integrates alerts with the maintenance system to close the loop and scale the program across plants.
Citations & Trust
- Information Systems for Business and Beyond (Open Textbook Library)