Internet of Things is described as a digitally connected universe of everyday devices which are embedded with internet connectivity, sensors and other hardware which allow communication through web. From health tracking Fitbits to Smart blackboards, IoT has made everything around us smart. On a smaller scale, it would be switching on a TV using your phone and on a larger scale planning smart cities with sensors all over.

Why is IoT so important?

The sensors installed are capable of sending information and/or receiving information and acting upon it. These are beneficial as they help improve and innovate lives of customers, businesses and society at large. Businesses have invested extensively in R&D to innovate and develop out-of-the -box products.

Read more at:  https://www.zdnet.com/article/what-is-the-internet-of-things-everything-you-need-to-know-about-the-iot-right-now/

Overtime the demand for wearables, like Fitbit, are increasing. The owners of the product get the details about themselves. However, at a large scale this data is beneficial for various sectors like the insurance companies, the pharmaceutical companies, doctors, etc. But this aggregate data is available only with the brand owner. Considering the insurance company, it can come into an agreement with its insurers, wherein the insurers would use the Fitbit and report the data to the company, which in return would give special discounts on premium amount. This aggregate data, or the Big Data, can then be used for the cost-benefit analysis. Faced with the fear of being misreported, the insurance companies might also go for vertical integration with the Fitbit companies, ensuring a greater market for the same in return of the Big Data. This would ensure a substantial portion of the market to the firm. The insurance company on the other hand would be successful in maximizing its profits. Hence, vertical integration and Big Data can do wonders in these markets. Read more at http://bigdatatobigprofits.com/2015/12/04/lessons-on-big-data-risk-and-the-vertical-integration-of-wearables-and-startups-2/