The Impact of Internet of Things on Organizational Performance

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THE IMPACT OF INTERNET OF THINGS ON THE PERFORMANCE OF
ORGANIZATIONS
By (Name of student)
Student’s Course
Name of the Instructor
Institutional Affiliation
The City and State
The Date

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THE IMPACT OF INTERNET OF THINGS ON THE PERFORMANCE OF
ORGANIZATIONS
Abstract
There has been a consistently rapid and dynamic change in the trends of technology in the world
since the early 20th century. Technology has since then undergone a series of changes and life cycle, right
from low performance to highly intelligent and adoptable machines. This is due to the persistence in the
level of innovation and invention of new technologies (Vermesan et al. 2011, p.20) and it led to the
invention of the idea of internet of things in 1994 when it gained its official name. Since then however,
there has been several debates, views, and assertions arising from the impacts of internet of things in the
organizational performances as well as the society, thus leaving many unanswered questions. The study is
therefore meant to investigate the impact of internet of things on organizational performance.
Key words; internet of things, organizations, performance, the society, electronic appliances, and
devices,
1. Background
Internet of things may primarily be understood as the interconnection of appliances over the
internet to permit the transfer of information and communication among the connected devices (Coetzee
and Eksteen 2011, p.8). It involves the integration of actuators, software packages, electronics, and
sensors to form up a system that is able to execute the transfer and reception of data from other devices
using the internet. The devices are most cases, computing devices that are able to access the internet.
Among the various devices that for up internet of things include; phones, personal computers, cars, and
robots among others (Sarma and Girão 2009, p.360). Taking a critical analysis of internet of things,

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reports indicate that, the idea of IOT came in the recent times, that is to say, not older than thirty years.
However, it is important to note that there existed the internet in which devices were able to communicate
and was simply referred to as “pervasive computing or embedded internet” and was named by Kevin
Ashton. In other words, internet of things gained its official name in 1999 (Bi et al. 2014, p.1540)
Looking at the trend of internet of things, it has absolutely changed the way in which people,
organizations and businesses are operating. There has been a remarkable change in form of information
and communication. Businesses are able to hire employees over the internet, and have their tasks
completed without any form of physical or face-to-face interaction. Additionally, individuals and
organizations are able to buy and sell their goods over the internet and have it delivered at their doorsteps,
information can be backed into cloud storage and accessed remotely from anywhere any time. However,
it is important to note that, much as IOT has brought about a positive change, it has got a dark side of it
(Vermesan and Friess 2013). This has been witnessed in cases of hacking, where confidential information
belonging to an individual or organization is broke-into without the knowledge of the owner, remotely
recording videos using device cameras belong to the owner without their consent, and thus, this is
absolutely implies lack of ethics. Furthermore, internet of things has led to loss of information as a result
of virus infection, increase in the level of cybercrimes, pornography time wastage among others. In other
words, its been reported that the invention of IoT has led to tremendous improvement in the world and yet
on the other hand, other scholars indicate that it is of more harm than its relevance (Sundmaeker et al.
2010, p.35).
2. Research questions
 How has the invention and adaptation of internet of thing changed the organizational
performance
 What are the possible consequences that arise as a result of the adaptation of internet of
things

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 In what ways can the negative influences of internet of things be restrained to make it
more relevance for the development of the world?
3. Literature review
3.1 Past development and history
Internet of things did not just sprout out in one day; it has a background in the invention and
innovation of a series of technologies. Reports highlight that, the inspiration and motivation of Kurzweil
in the 1950s to formulate the law of accelerating returns basing on the findings of the intensification of
technology in artificial intelligence, biotechnologies, communication, and information technologies
among others are directly linked to the beginning of development and improvement in the connection of
machines for the transfer of data (Miorandi et al. 2012, p.1450).
From the reports, it is argued that IoT is as a result of the fact of changing complex phenomenon
into simple through the use of logical exponential technological upgrade. This is anchored on the law of
accelerating returns, which was put forward by Kurzweil. In this law, he highlights that the extensive
logical and exponential trend of new inventions and innovation is being streamlined into making a more
interconnected networks of devices (Giusto et al. 2010). Later in 2005, it was further argued by Kurzweil
that internet of things is gaining a gradual improvement that involves the solicitation on new discoveries
that are coming up as a result of technological innovations (Swan 2012, p.250).
Relating to the trend of progress, it is speculated that, there will come a time in the future when
the contribution of technology (internet of things in particular) will exceed the performance of humans
including the basic ability of intelligence (Vermesan and Friess 2014). In this context, it is believed that
there will be attempts of integrating humans with the appliances i.e., the insertion of microchips into
humans so that there will bea systematic coordination of the body and the microchips inserted. This
implies that humans will as well be part of the internet of things thus being able to communicate