The Internet of Things (IoT) is the concept of connecting any physical device to the Internet. An IoT-enabled device will typically have a sensor, actuator or RFID tag built into it - along with Wi-Fi connectivity. Software may also be present on the device. The purpose of any IoT-enabled device is to collect and exchange data.
Popular IoT-enabled devices for the home include security systems, air conditioners, coffee makers and washing machines. The Tesla self-driving car is another example of IoT in action. With respect to industry, the applications are virtually limitless: from patient safety alerting to Asset Performance Management (APM). If a device has an on/off switch, it can generally be a part of IoT.