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How to create an IoT platform for managing a smart device

How to create an IoT platform for managing a smart device: from idea to implementation

How to create an IoT platform for managing a smart device

According to analysts, from 2026 to 2035, the Internet of Things market will show significant growth, in particular in the field of transport and logistics. Real-time cargo tracking, fleet management, route optimization, and predictive maintenance are quickly becoming standard.

Devices are being installed everywhere: by 2026, hundreds of millions of telematics modules and embedded IoT solutions are expected in various fields, including agriculture. 

As data continues to be collected and infrastructure grows, companies are increasingly asking a different question: How can this data be turned into understandable metrics, automated solutions, and business benefits?

In practice, the primary function of the IoT is not to collect information, but rather to facilitate management by linking device readings with employee workflows and financial indicators. 

In this article, we'll examine how to correctly implement IoT applications. We'll cover what tasks they should solve, how to build an architecture, and what to pay attention to in order to automate processes, reduce costs, and assist with management decisions.

What is the Internet of Things (IoT)?

The Internet of Things (IoT) is an ecosystem in which physical objects automatically collect and transmit data over a network. Platforms then use this information for analysis, management, and decision-making.

The IoT is not about the devices themselves, but rather, the data and services surrounding them.

Sensors, counters, cameras, and onboard equipment are just the lower level of the system. They record events in real time and transmit the information further.

The main value of IoT is realized when:

  • the data is collected automatically;
  • processed in a single contour;
  • they are used in applications.

IoT applications transform raw device readings into reports, notifications, forecasts, and management decisions.

Breaking down the Internet of Things: terminology and key concepts

To avoid further confusion, let's fix the basic terms.

Term

Definition

IoT device

The «eyes and ears» of the system. They measure temperature, humidity, vibration, position, resource consumption, etc. (for example: a sensor in a refrigerator).

The IoT system

A set of devices, communication channels, and data processing platforms (example: the entire smart greenhouse from sensors to the cloud).

IoT platform (usually in the cloud)

The «brain» that collects, stores, processes data, and manages devices (for example: AWS IoT Core or ThingsBoard).

The IoT solution

Ready-made business tool: platform + applications + integration (example: production monitoring system with dashboards and API).

IoT network and communication channels

The «nerves» of the IoT system transmit data further (over the air — Wi-Fi, LoRa; over the wire — Ethernet).

Applications and control panels

The «hands and eyes» of a human. They show information on the screen and send reports (for example: a mobile application for a farmer).

The IIoT (Industrial Internet of Things) is the targeted use of Internet of Things technologies in industries such as energy, transportation, logistics, and critical infrastructure. 

This is where the increased requirements come in.  

  • reliability (uninterrupted operation for many years);
  • security (protection from cyber threats and physical impacts, multi-level segmentation of OT/IT);
  • scalability (support for hundreds of thousands and millions of devices in a single system);
  • ability to work in inaccessible and aggressive environments (extreme temperatures, vibration, electromagnetic interference, explosive zones, high humidity and dust).

IoT is a multi-layered architecture. Communication and hardware are just the foundation; value is generated at the platform and application level.

How the Internet of Things works: the basic architecture and elements of the IoT system

The main purpose of the Internet of Things is to collect information and use it to optimize processes, reduce costs, reduce errors, and respond faster to changes.
 

How the Internet of Things works: a simple chain

How Internet of Things works

What are IoT devices?

An Internet of Things device is a physical object connected to a network that collects data, processes it at a basic level, and transmits it to an IoT platform or application.

As a rule, such a device has several key components:

  • Sensors measure something in the surrounding environment, such as temperature, pressure, movement, gases, or light.
  • The controller collects these readings and prepares them for transmission.
  • Gateway (sometimes separate) collects data from many sensors and sends it to the internet, which is especially important when the sensors are far away or use different protocols.

The Internet of Things has firmly entered our reality, though we don't always notice. Examples include smart homes with smart lighting, smart locks, and smart sockets that monitor energy consumption; wearable gadgets such as fitness bracelets and watches; and remote health monitoring systems.

In an urban environment, IoT manages adaptive traffic lights, air quality sensors, parking spot detection systems, and trash container occupancy monitoring.

Below are typical examples of IoT devices and the tasks they solve in different industries.
 

Equipment

Where it is applied

Benefit

Vibration and temperature sensors

Manufacturing, industry

Reduced downtime and predictive maintenance of equipment

GPS trackers and telematics modules

Transport, logistics

Monitoring the location, routes, speed and condition of cargo

Smart metering systems for water, heat, and electricity

Services provided by the city include housing and communal services, as well as commercial real estate.

Accurate accounting of resources without manual measurement

Medical sensors and wearable devices

Healthcare

Remote monitoring of patients' condition and reducing staff workload

IoT networks and protocols: how devices communicate with each other

The IoT network is the way in which sensors transmit data. There are two main types:

  • Local — inside the building, warehouse, workshop (Wi-Fi, Bluetooth, Zigbee).
  • Cloud / long-range — for kilometers and tens of kilometers (LoRaWAN, NB-IoT, LTE, 5G).

Gateways are often needed as a «translator» — they collect data from different devices and send it to the Internet.

Type

Where is it better to use

Range / Speed

Energy consumption

Application example

Wi-Fi

Indoors, offices, warehouses

up to 50-100 m / high

high

Cameras, smart lighting

LTE / 5G

Transport, cities, and mobile facilities

tens of km / very high

high

Truck trackers, drones

LoRaWAN

Long-range sensors

2-15 km (in the city) / very low

very low

Counters, field monitoring

NB-IoT / LTE-M

Smart cities, counters, remote objects

up to 10-20 km / low

very low

Water/gas meters in basements

MQTT / CoAP

Message transmission (over any network)

low

Almost all modern IoT platforms

MQTT is the most popular protocol for data transmission: lightweight, reliable, and works even with poor Internet connection. CoAP is similar, but even lighter and better for very simple devices.

The IoT platform is the «brain» of the entire system

The IoT platform is responsible for the stable and scalable operation of the entire infrastructure. It manages thousands and even millions of devices: it allows you to connect new sensors, update firmware, temporarily disable equipment and monitor its condition. For businesses, this means system manageability without manual labor or constant facility visits.

The platform collects and stores all data from the devices in one place. We're not talking about dozens of indicators; we're talking about information flows that can amount to billions of events. The IoT platform doesn't just add up this data; it brings it into a convenient format for analysis.

The next key layer is analytics. The IoT platform creates graphs, monitors discrepancies, generates alerts, and identifies patterns in equipment or process behavior. At this level, predictive maintenance scenarios, deviation control, and preliminary management insights emerge.

Through the API, the IoT system integrates with CRM, ERP, monitoring, billing, and mobile applications.
 

A ready-made platform or in-house development of an IoT application?

In practice, an IoT platform can be either a ready-made cloud solution or a custom development. Ready-made cloud solutions (AWS IoT, Azure IoT, Yandex IoT Core, and similar) are suitable for launch or pilot deployments.

In most mature IoT projects, however, the platform itself does not play the key role; rather, it is the design and adaptation to a specific business that plays the key role. In some cases, a proprietary architecture is necessary, such as when increased security is required, data placement is restricted, or integration with industrial and corporate systems is needed.

The LighTech Experience

For the intelligent video surveillance and video analytics project, we decided to develop a fully proprietary cloud platform from scratch, including the backend, API, device agent, and frontend:

  • Maximum versatility (support for any RTSP/ONVIF cameras, work on microcontrollers and IoT gadgets with minimal resource consumption of 9-900 KB).
  • End-to-end encryption, high performance (processing thousands of cameras without transcoding).
  • Automatic remote connection without port forwarding and deep AI video analytics with custom algorithms.
Example of IoT platform development from LighTech

Such a level of customization, independence from the vendor, and adaptation to enterprise customers (ranging from small businesses to government agencies and infrastructure) would not have been possible with a ready-made platform. Therefore, its own implementation became the optimal solution to achieve the required reliability, scalability, and competitive advantages. We wrote more about the case here.

Would you like to know how much it costs to develop an IoT platform for a business?

We will look closely at your tasks, IoT devices, and usage scenarios to suggest the best solution for your budget
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IoT Apps: How Businesses Manage Devices and Data

IoT devices themselves do not provide value. While sensors can collect and measure information, the packaging of data into solutions begins with applications.

The application displays telemetry, shows the current state of objects, allows you to manage IoT equipment, configure scenarios, and receive analytics.

Types of IoT Applications

Types of IoT apps

Mobile IoT applications are used more often where immediate operational access is needed:

  • real-time monitoring of equipment and facilities;
  • push notifications about accidents, exceeding thresholds, and failures;
  • remote control (enable, disable, restart, change modes);
  • access for field staff, engineers, technicians, and managers.

These types of solutions are in demand in logistics, construction, and industry, as well as in any other area where decisions are made outside the workplace.

Web applications and dashboards are the main analytics and management tool at the business level. The whole picture of the IoT system is concentrated here:

  • aggregated data from thousands of devices;
  • graphs, maps, tables, thermal zones;
  • configuring rules, scripts, and users;
  • reports for management and operational teams.

Web dashboards allow dispatchers, analysts, and department heads to see the entire process, not just a single sensor.

For complex infrastructures, separate dispatch interfaces are created, often for a specific industry or scenario:

  • transport and fleets;
  • industrial equipment;
  • building engineering systems;
  • power grids and distributed facilities.

Such systems operate under high load, support roles, SLA logic, and crash scenarios, and are often integrated with ERP, CRM, 1C, and BI systems.

Where the Internet of Things is used: the main business areas

Area

Business objectives

IoT solutions

Industry (IIoT)

Reducing equipment downtime

Monitoring the condition of machines and lines

Product quality improvement

Siemens, Bosch, GE — digital factories, real-time monitoring

Logistics and transport

Fleet and cargo control

Route optimization

Reduction of fuel consumption and accidents

Amazon, DHL, Maersk — container and fleet tracking, dispatch platforms, route analytics

Smart buildings and offices

Reduced energy consumption

Employee comfort and safety

Automation of engineering systems

Google, Microsoft, WeWork — smart offices, BMS, climate and lighting management

Medicine

Remote monitoring of patients

Control of medical equipment

Reducing the burden on clinics

Philips, Medtronic, Apple Health — ecosystems, wearable medical devices, equipment tracking

Retail

Preventing «out of stock» situations

Customer behavior analysis

Automation of operations

Walmart, Amazon Go — smart shelves, RFID (radio frequency identification), video analytics, store automation

Agriculture (AgriTech)

Increasing yields

Saving water and fertilizers

Animal health monitoring

John Deere, Bayer, Trimble — precision farming platforms, automatic irrigation, crop and animal monitoring

 


How an IoT project for car service stations can make diagnostics smarter

The LighTech team developed a cloud-based IoT platform built on microservices. This platform transforms standard car diagnostics into smart digital services, enabling car service stations and owners to work more efficiently and quickly.

Example of IoT platform development for car service station

What the platform can do:

  • Automatic decryption of the VIN code: instant information about the brand, configuration and repair history.
  • AI analysis of data from diagnostic scanners and sensors to accurately assess the condition of the vehicle.
  • Generation of clear reports with repair recommendations, selection of spare parts and the nearest service stations.
  • License plate recognition (LPR) through cameras and a mobile app for searching for stolen cars and instant notifications.
  • Scalable and secure integration with external systems: insurance, police, suppliers.
Astech
Astech
webmobile

Integrated platform for automotive diagnostics and services

Our goal was to automate routine car service processes, reduce downtime, improve diagnostic accuracy, and create an ecosystem of data exchange between services, owners, and partners.

The platform has helped owners save time and money by providing quick access to clear reports and recommendations. Due to its integration with police databases, it is possible to quickly identify stolen cars. The subscription model transforms the service into a smart IoT service with predictive diagnostics, remote monitoring, and sensor and camera connectivity.

 

IoT platform for agricultural business

Our team has developed an IoT solution for agricultural businesses based on the «pocket farm» concept. This solution allows farmers to track important crop indicators, such as temperature, precipitation, watering, and productivity, in real time. 

The platform collects data from sensors, visualizes them through convenient diagrams, diagrams and dynamic graphs, and coordinates the work of employees for operational management of farming processes.

Example of IoT platform for agriculture

The result is optimized crop processing, reduced production costs, and the ability to respond to the needs of plants in a timely manner. Integrating IoT data increases the efficiency of farming businesses by enabling them to make accurate decisions and prevent agrotechnological problems.

How to implement an IoT solution?

At LighTech, we go through several stages of IoT development with a client in order to turn an idea into a working system.
1

Process audit

First, we define the goals of the IoT system, which include monitoring, telemetry collection, and device and process management. Then, we analyze the client's infrastructure, including existing sensors, networks, and corporate services, to select the optimal architecture. This selection takes into account security and data storage requirements.
2

Scenario design

We study current operational and management processes, including equipment maintenance, incident control, analytics, and reporting. We design the architecture of the IoT platform, the business logic, and the work scenarios, including how data is collected and processed to inform decision-making.

Our goal is to determine the optimal data transfer method or hybrid solutions. We consider coverage, connection stability, and security.

3

Application

We create mobile and web interfaces for monitoring and managing the IoT system. Notifications, dashboards, reports, and action automation make the data accessible and understandable to all users.
4

Testing

We check the correctness of data collection, connection stability, system operation under load, fault tolerance, and data transmission security.
5

Implementation, support and scaling

We put the system into operation by connecting devices and users and setting up monitoring and access rights. Our services include maintenance, updates, scenario optimization, and scaling the platform to accommodate a growing number of devices and users.

Security of IoT devices and data

Every device on the network can become an access point for attacks, so it is important to protect data and infrastructure. Key measures include data encryption, device authentication, and regular updates to firmware and platform software, as well as API protection and network segmentation.

Monitoring of abnormal device behavior and secure configuration help prevent leaks, data substitution, DDoS attacks and physical compromise of equipment, ensuring reliable operation of IoT systems in real time.

Development of the Internet of Things and IoT solutions

The future of the Internet of Things is linked to the rapid growth of IIoT and the expansion of the use of smart devices in logistics, retail and other areas. More and more companies are using IoT to optimize processes and decision-making based on analytics, turning disparate devices into a single managed ecosystem.

There's an 80% chance that you, dear reader, have a smartwatch on your hand right now!

Frequent questions

How is the Internet of Things different from traditional automation?
What direction is the development of IoT solutions heading?
What applies to the Internet of Things?

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