McKinsey May 28, 2024

The Internet of Things (IoT) refers to physical objects embedded with sensors that communicate with computers. The IoT enables the physical world to be digitally monitored or controlled.

Does your house have a smart thermostat? Or maybe you’re one of the one in three Americans who wears a fitness tracker to help you stay physically active. If you do, you are tapping into the Internet of Things, or IoT. It’s become embedded in our lives, as well as in the way organizations operate.

IoT uses a variety of technologies to connect the digital and physical worlds. Physical objects can be embedded with sensors and actuators. Sensors monitor things like temperature or motion, or really any change in environment. Actuators receive...

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