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15.2 Internet of Things (IoT) and Edge Analytics

๐Ÿ“ŠBusiness Intelligence
Unit 15 Review

15.2 Internet of Things (IoT) and Edge Analytics

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025
๐Ÿ“ŠBusiness Intelligence
Unit & Topic Study Guides

The Internet of Things (IoT) connects everyday devices to the internet, creating a vast network of data-generating sensors. Edge analytics processes this data near its source, enabling real-time insights and actions without the need for constant cloud communication.

IoT and edge analytics have wide-ranging applications, from predictive maintenance in factories to optimizing traffic flow in smart cities. By analyzing data locally, these technologies reduce latency and bandwidth needs, while improving efficiency and decision-making across various industries.

Internet of Things (IoT) and Edge Analytics

Definition of IoT and edge analytics

  • IoT involves a network of connected devices embedded with sensors, software, and connectivity that collect and exchange data without human intervention (smart homes, wearables, industrial equipment)
  • Edge analytics processes and analyzes data near the source (IoT devices) instead of in a centralized location, reducing latency and bandwidth requirements and enabling real-time decision-making and actions

Data generation from IoT devices

  • IoT devices generate data continuously or at regular intervals through sensors that collect data on various parameters (temperature, humidity, vibration)
  • Generated data can be structured, semi-structured, or unstructured
  • Edge processing is important because it:
    • Reduces data transmission costs by filtering and aggregating data at the source
    • Minimizes latency by processing data closer to the point of generation
    • Enables real-time decision-making and actions
    • Enhances data privacy and security by reducing data movement

Benefits of edge analytics

  • Enables immediate processing and analysis of data, allowing for quick detection of anomalies, patterns, and trends
  • Facilitates automated actions and alerts based on predefined rules or AI models
  • Filters and aggregates data, sending only relevant information to the cloud, minimizing bandwidth requirements and associated costs
  • Reduces storage costs by retaining only essential data

IoT and edge analytics applications

  • Predictive maintenance
    • IoT sensors monitor equipment performance and condition
    • Edge analytics detects anomalies and predicts potential failures, enabling proactive maintenance and reducing downtime and costs
  • Supply chain optimization
    • IoT devices track inventory levels, shipments, and asset locations
    • Edge analytics optimizes routing, inventory management, and demand forecasting, improving efficiency, reducing waste, and enhancing customer satisfaction
  • Smart cities
    • IoT and edge analytics optimize traffic flow (intelligent traffic lights), energy consumption (smart grids), and public safety (video surveillance)
  • Healthcare
    • IoT devices monitor patient vitals (heart rate, blood pressure)
    • Edge analytics detects anomalies and provides real-time alerts to healthcare professionals
  • Agriculture
    • IoT sensors monitor soil moisture, temperature, and nutrient levels
    • Edge analytics optimizes irrigation, fertilization, and pest control based on sensor data, improving crop yields and resource efficiency