ABSTRACT
At the heart of the internet of things (IoT) and related technologies or concepts is the use of connected sensors and algorithms to make things “smart”. These things can range from devices, equipment, and buildings, to factories, biological processes, systems, and business processes. The sensing, connectivity, and “smartness” of “things” is set to profoundly alter how organizations create and deliver value. The potential of all things involved in organization workflows being smart offers significant opportunities for novel new products / services and enhanced product / service offerings, it also offers vastly improved opportunities for efficiency (e.g. the vast data collected from all the different devices can be integrated and used to pinpoint wasted effort, bottlenecks, activities that could be automated, or costs that could be minimized), effectiveness (e.g. concepts like smart workplaces and smart buildings can be leveraged to improve staff effectiveness), and agility breakthroughs (e.g. through leveraging data on the things of strategic partners, government, and the community, organizations may be able to better anticipate and adapt to crisis events, disruptions, and other changes). Accountants can play a critical role in helping leaders and managers understand the financial meaning and strategic implications of the opportunities and threats presented by the internet of things and related technologies and concepts. In this chapter, we provide accountants with an understanding of the foundations, functioning, opportunities and threats, use cases, and accounting practice implications of the internet of things and related technologies and concepts.
