The Next Big Thing in Future – IoT

Almost every one of us is very much excited to think, talk and read about the future. Of course, we all know  SAP Leonardo is going to be the most happening technology from SAP. It’s just incredible. It is a brand for a family of innovative products in the area of IoT, Machine Learning, Analytics, Blockchain etc. 

Digital Transformation is not a destination for SAP, but an ongoing journey to evolve along with new technologies like Design Thinking services, Machine learning, Big Data, IoT, Data Intelligence, Block Chain and Analytics to run the enterprise smarter, smoother and completely digital.


The primary focus of this blog is to know about IOT and how it works. There are many definitions running on the internet about IOT. Combining everything, we can say “Internet of Things is the network of physical objects that contain embedded technology to sense and interact with their environment and each other to collect and exchange data to make our lives better“. Therefore, there’s connectivity, sense, an action that happens, data storage, data analysis, and sharing. All these actions come together to make an environment where our lives are improved in some way.

History of Technology

History of Technology

Coming to the fourth generation all the digital physical object have connected each other. The interesting point is that the fourth generation is going to be more sustainable with very little wastage. This is because persistent connectivity allows for much more precision along the value chain of product creation to product consumption, So this new Internet of Things – it’s clearly not just about connecting people, it’s about connecting things. Well, once things can start sharing their experiences with other things, new insights and innovations become possible. 

But how does that work exactly? Well, it works like this: You take things, then you add the ability to sense, communicate, touch, control. Then, those things become smart things with the ability to interact and collaborate with each other. 


  •  The term IoT was coined by Kevin Ashton from MIT way back in 1999.  
  •  Nearly 9 out of 10 people still haven’t heard about it. 
  • ATMs – considered as some of the first IoT objects, and they went online as far back as 1974.  
  • Number of connected things in the next four years will increase nearly tenfold. 
  •  For an object to be labeled as an IOT object, it must have 7 features like Sensors, Internet connectivity, Processors, Energy efficiency, Cost-effectiveness, Quality, Reliability, and Security 

IOT combines advancements in areas like artificial intelligence, natural language generation, robotics, drones, virtual and augmented reality, the areas where rapid innovation is happening right now. 

How does IoT work? 

The working of IoT is simple. Each component plays a vital role in the working.


A sensor detects an event and transmits the data directly to a backend system or via the help of gateway. A sensor device is a transducer with two layers: a sensor layer to measure the actual value, like voltage changes and then a signal condition to convert the measurement into meaningful information, like temperature changes. 

The device has sensors, and these sensors are programmed to send signals to the device processors. Device processors will process the raw signal and then send the process data to the emitter. The device emitter will package the process data as messages using standard message types, like JSON or XML. And then the emitter will send the message to remote or local systems using HTTP or MQTT, which is a lightweight messaging protocol for small sensors and mobile devices. Then, the sensor device connects with these systems via standard connectivity methods like Bluetooth, Bluetooth Low Energy, 4G, 2G, and others. Finally, the sensor device needs some security and configuration components to enable different security settings. So a directly connected sensor can connect to the back-end systems and send data by using high-speed Internet. These types of sensors are the ones based on Wi-Fi, 2G, 3G, 4G LTE, and other standard communication technologies. 


Gateways are communication devices for sensors that cannot connect directly to back-end systems. So a gateway connects and receives data from locally connected sensors via communication protocols like Bluetooth Low Energy or ZigBee. a gateway also connects to back-end systems directly and sends sensor data using high-speed Internet. 

Back-end System

Back-end systems process the data and connect them with other business data. So back-end systems typically contain enterprise resource planning systems, also known as ERP, which basically runs the day-to-day of a business. And back-end systems can also contain IoT platforms to process IoT sensor data. The data will be transmitted to the back-end systems. Companies use back-end systems like customer relationship management (CRM), human capital management (HCM), and supply chain management (SCM), and they use all these different systems to run their business. 

Back-end systems using IoT platforms process sensor data and map this sensor data to existing master data for the devices. Additionally, back-end systems contain existing business data to define business rules and processes. Back-end systems also have a repository of historical data 

Application Layer

The application layer can analyze the data from the back-end systems and, based on the result, a corresponding action can be initiated to improve the business 

So IOT is a blessing in Modern life. We hope even you guys agree with the fact that the internet of things has made a great impact on each and everyone’s life. There is a lot more to discuss this topic. Hope this blog will be helpful for the beginning level of a participator.

To set up a discussion to talk further, send us a message at

Drushya S

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Comment ( 1 )
  1. parag
    March 3, 2021 at 11:39 pm

    Really useful information thanks for sharing.

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