This article is inspired by a post, in which global CEOs listed the ‘Internet of Things’ as one of the technology trends that would have the biggest impact on their organisation over the next two to three years. It looks to explore the question ‘What exactly is the Internet of Things’ and ‘How will it affect businesses over the next few years?’

The Internet of Things (or IoT) in its simplest form is devices communicating information over the internet. And it’s actually not that new! The first internet connected toaster was launched in 1989!

An example of a device used today, which is classed under the Internet of Things, is a smart meter for our home heating and energy use. These meters allow you to turn down the heat remotely, will recognise if it is a warm day and can automatically adjust output accordingly.

Another example is ‘wearables’, which have increased dramatically in popularity over the last few years, particularly for those interested in health and fitness. These devices monitor and deliver to us information about our heart rate, sleep, activity and more. Apple watch and Fitbit are two popular smart products of this kind.

On a larger scale, the Internet of Things allows the management of traffic, by relaying information to central control sites.

The potential growth for the Internet of Things is huge. A report by Gartner predicts the use of connected things will reach 20.4 billion by 2020, with most of the revenue coming from Greater China, North America and Western Europe.

In fact, the possibilities for when this technology is fully developed are mind boggling!

Consider smart houses, where the light comes on ready for you to return home, the heat adjusts and the door recognises its residents and unlocks automatically. This is not to mention the potential for products within the home; the smart fridge that knows when you have run out of milk, the oven that preheats ready to cook your dinner, the shower that sets to the temperature you prefer and many more possibilities!

Again, looking at a bigger scale, researchers are already looking at technology that uses the Internet of Things to create smart cities that manage water and energy distribution, security, and traffic congestion. In industry and agriculture, connected things will enable sensors to detect and analyse information and act upon it with little to no input from a human! In smart farming, for example, there are developments in technology that can monitor the water requirements of crops; a great boost in efficiency for the farming industry.

Other areas being explored for the development of the Internet of Things include healthcare, entertainment, including toys and games for children, and retail.

With all the exciting potential for new connected technology, what does this mean for businesses?

The aim of the development of connected things is to improve efficiency, saving time and money, as well as being more environmentally friendly. With the launch of new products such as these, there will be a requirement for new and creative marketing campaigns to sell their benefits. And no doubt many new businesses will be set up to assist in bringing these products to market.

Initially great news! However thinking longer term, the Internet of Things is cutting out the need for human input. Many services that currently require human input may therefore become obsolete. Could this lead to the loss of jobs? Perhaps it will be just a reallocation of work? Looking back in history, from the industrial revolution to the current day, machines have been taking the jobs of people in many areas, but it has not necessarily been to our detriment.

As new technology develops, the Internet of Things is likely to become not just something we talk about or see in movies, but an everyday reality. I believe it will be an exciting time for digital technology and we are likely to see a shift in the way we work and how we do business. There are likely to be plenty of advantages to be enjoyed, as well as some adjustments to make.