The Internet of Things (IoT), also called the Internet of Everything or the
Industrial Internet, is a new technology paradigm envisioned as a global network of
machines and devices capable of interacting with each other. The IoT is recognized as
one of the most important areas of future technology and is gaining vast attention
from a wide range of industries. This article presents five IoT technologies that are
essential in the deployment of successful IoT-based products and services and
discusses three IoT categories for enterprise applications used to enhance customer
value. In addition, it examines the net present value method and the real option
approach widely used in the justification of technology projects and illustrates how
the real option approach can be applied for IoT investment. Finally, this article
discusses five technical and managerial challenges.