According to Cisco “IoE is the networked connection of people, process, data, and things which is creating unparalleled opportunities for companies, individuals, and countries”. In simpler terms, it refers to billions of devices and consumer products connected to the internet in an intelligent networked environment with expanded digital features. 

How is it different from IoT?

Unlike IoT, which is limited to only machine-to-machine communication (M2M), IoE is a wider concept that includes not only machine-to-machine communication (M2M) but also people to machine (P2M) and people to people (P2P) communication through technology.

Most of us are well versed with machine-to-machine communication but let’s understand the concepts of people to machine (P2M) and people to people (P2P) communication through technology.

• People to machine and vice versa communication occurs between a human and a machine. Typing on a keyboard or using fitness bands/health monitoring devices are some common examples.
• People to People (P2P) communication through technology is when a human uses the internet to connect to another human. Social networks, video conferences are some basic examples.

According to various reports, the IoE market is expected to reach US$39 trillion by 2024.

Components of IoE

To better understand the concept of IoE, let’s discern the components of it:

      1. People 

People play an important role in P2M and P2P communications as discussed above. They will be connected to the internet in more relevant ways and will analyze and generate vital insights.

      2. Data

Data management and analysis are pivotal for any decision-maker. Unlike raw data which is futile, the connected devices will send more insightful and intelligent data. Coupled with analytics, this data can aid faster and smarter decision making.

      3. Things

Things refer to the objects such as sensors, consumer products, and devices that are connected over the internet. These devices will transfer more coherent information to support meaningful business decisions.

      4. Process 

The process connects all the above components and ensures that the right information is delivered to the right person at the right time in a suitable manner. One can say that process is the anchor of IoE.

Conclusion

Summing up, one can say that IoE is an extension of IoT which has the potential to radically alter the way we look at everything. According to Cisco, in the coming years, the IoE economy will create new opportunities to transform the world around us — in education, healthcare, manufacturing, commerce, transportation, and other sectors. 

To learn more about IoT app development and upcoming digital transformation trends such as IoE, head over to our blog.