IoT Solutions: What's really behind this term?

10.06.2025 by Annalena Rauen



IoT solutions are increasingly making their way into everyday life – especially in companies! But what exactly is behind those three letters and what influence is it already having on the various industries? We will answer these questions in the following article.  

What are IoT Solutions?

The term IoT stands for Internet of Things. It essentially refers to devices that are networked via software, sensors or other technologies. Communication usually takes place via what is known as the cloud. The data is received in this cloud, then processed by software, which determines the next step. A human eye generally no longer needs to monitor these processes. In other words: the connected devices communicate and interact independently with one another. 

The four elements of IoT solutions: 

  • Sensor/Device: These collect all data, for example about the production process of a manufacturing machine in industry. The software can use this data to identify a production error or a machine defect. 

  • Connectivity: The device sends all collected data to a cloud. This happens via various transmission paths such as WLAN, LPWAN, Bluetooth, Ethernet or satellite. Which transmission path is chosen depends on the IoT application. 

  • Data Processing: Once the data reaches the cloud, the software processes it immediately. Based on the information, it can make different decisions. It could, for instance, stop production due to a machine defect. However, there are also situations in which human intervention is still required – this is where the user interface comes into play. 

  • User Interface: Through the user interface, an employee gains access to the system and can check it. From there, the desired action can be triggered in the opposite direction, from the interface to the device. 

In this way, IoT solutions become the attentive eyes and ears of a company. After all, employees cannot monitor every process continuously. 


Since when has IoT actually existed?

The term was first coined in 1999 by Kevin Aston. In his presentation "Internet of Things", he introduced the idea of tracking supply chains with a small radio chip. However, the technical development had already started in the 1970s – a time when companies were researching, under the term "Pervasive Computing", how to connect different devices. 

What are all IoT devices?

In principle, all technical devices that can independently communicate via the internet are considered IoT devices. These include, for example:  

  • Smartphones 

  • E-mobility charging stations 

  • Smart smoke detectors 

  • Smart door locks 

  • Notebooks 

  • GPS trackers 

  • Production machines 

  • etc. 

What are the application areas for IoT?

There are already a large number of applications for IoT solutions across various industries. Companies that automate their business processes using sensors particularly benefit from this technology. Below, we present a few industries and the corresponding IoT application examples. 

Transport and Logistics

Numerous transport and logistics systems are already based on a wide range of IoT applications. For example, using IoT sensor data, driving routes can be determined automatically based on weather conditions, vehicle availability or driver availability. Intelligent IoT solutions also handle inventory control. This not only allows tracking the shipment status, but also monitoring temperature regulation inside the vehicle.  

This is particularly important in the food, beverage and pharmaceutical industries. These goods are often temperature-sensitive, and incorrect temperatures could render them unusable. IoT solutions continuously monitor the temperature and send alerts if levels rise or fall. 

Fleet Management

IoT solutions in fleet management go far beyond simple vehicle tracking. The use of GPS trackers and sensors offers companies multiple advantages, such as:  

  • Monitoring vehicle location 

  • Optimising routes  

  • Reducing fuel consumption  

  • Gaining insight into employee driving behaviour  

These features help companies reduce operating costs. They also allow the automatic generation of digital logbooks to meet legal requirements. 

One of the greatest benefits, however, is the insight into driving behaviour. The sensors analyse how a vehicle is driven and detect risky manoeuvres such as speeding or sudden braking. In such cases, companies could impose a driver safety training course. This not only reduces accident risk and increases road safety, but also lowers CO₂ emissions. 

Production

In production, IoT solutions already give many companies a competitive edge. The sensors can effectively monitor operations and production processes, and notify technicians in advance of required maintenance or faults. If the sensor detects a defect, it can independently stop production via the affected system. This helps companies reduce machine downtime and lower operating costs. Such IoT-based applications are particularly common in the automotive industry. 

Servitization

IoT transforms the traditional product sale into a digital service, a process known as servitization. Companies no longer offer just a physical product to their customers, but combine it with digital services based on real-time data. For example, instead of selling a machine, a manufacturer can offer a usage-based service where the machine is monitored, maintained, and billed according to use. Customers benefit from increased availability, better maintenance planning, and predictable costs, while providers can build long-term customer relationships and tap into new business models. IoT is the key to data-driven services and a new value proposition in the after-sales segment. 

Automotive

In the automotive industry, IoT is transforming entire business areas – not only in production, but throughout the entire vehicle lifecycle. Intelligent sensor technology enables predictive maintenance, and vehicle data can be analysed and utilised in real time to optimise driving behaviour, consumption or service intervals. In addition, new mobility concepts become possible: from connected cars to shared mobility and autonomous vehicles. Manufacturers, suppliers and mobility providers gain valuable insights into how their vehicles are used and can develop targeted, data-driven services. 

Industry often refers to IIoT Solutions

In industry, the term IIoT solution is often used instead of IoT solution. IIoT stands for "Industrial Internet of Things" and describes the use of IoT solutions in industrial applications.

Expansion of Charging Infrastructure

IoT solutions make an important contribution to the concept of the smart city and thus to the expansion of charging infrastructure for electric vehicles. By networking devices, companies can efficiently monitor and control their charging stations. Potential issues such as failures or maintenance-related downtime can be detected and rectified at an early stage – an important factor, especially as the German government has set a target to bring more e-vehicles onto the roads. 

In addition, companies can use integrated energy and load management to optimally regulate the power consumption of charging points. Charging priorities can be managed more efficiently, avoiding unnecessary network overloads. Scalability through IoT solutions is especially important for companies! They can individually scale their infrastructure, whether at the workplace, a specific location, or mobile fast-charging stations. 

Smart Building

Energy costs have long been a challenge for companies! As a result, many already monitor their electricity, gas and water usage using various IoT solutions.  

To ensure efficiency and keep consumption as low as possible, so-called retrofit sensors are used. They measure energy flows in real-time and report anomalies directly to the system, where root cause analysis can begin. However, this integration of an IoT solution is only one aspect of the smart building. These systems also support companies in other areas, such as: 

  • Smart cleaning 

  • Room comfort control 

  • Building maintenance and servicing 

  • Building automation 

  • Operating cost analysis 

IoT solutions are already found in a wide range of industries and take on very different tasks. With the ongoing trend towards increased connectivity, the areas of application for such solutions are (likely) to continue growing. 


 

Global IoT Connectivity


Global IoT Connectivity

Around the world there are application areas for the Internet of Things – and T IoT now has a tariff that makes connectivity simpler everywhere. One provider, one pricing, one international connectivity solution.

More about T IoT

Around the world there are application areas for the Internet of Things – and T IoT now has a tariff that makes connectivity simpler everywhere. One provider, one pricing, one international connectivity solution.

More about T IoT

Space with a globe covered by a magenta network.
Annalena Rauen
Annalena Rauen

Marketing Manager IoT

Back in 2016, Anna worked on IoT topics at Deutsche Telekom for the first time. Since then, she has been supporting customer best practices in a wide range of industries – always focusing on the benefits that the Internet of Things can provide. Her IoT blogposts describe real use cases and the value these innovations add to market players, their business models, and even entire industries.