IoT is short for Internet Of Things. It's concept is very simple: It mean connecting any device to the internet, let them (devices) talk to each other (share data over internet). By this shared data, we can gather information, analyse it and create a smart decision according to processed data.
Previously, what we thought about internet is that it is a network connecting us with the use of desktop, laptop and smart phones. But IoT takes it to next level; It's about connecting any device to internet that can have a chip like refrigerators, cars, washing machine, microwave oven, Television, Security Cameras etc.
What will the advantage of this network of things? Advantage of this is one simple thing "Smarter World". From the time you wake-up till you sleep, everything can change with it. Imagine, when you wake up your alarm clock automatically tell your coffee maker to start brewing coffee for you? What if your office equipment knew when it was running low on supplies and automatically re-ordered more? What if the wearable device you used in the workplace could tell you when and where you were most active and productive and shared that information with other devices that you used while working? What if your fridge could tell you it was out of milk, texting you if its internal cameras saw there was none left, or that the carton was past its use-by date? What if you are on your way to a meeting; your car could have access to your calendar and already know the best route to take. If the traffic is heavy your car might send a text to the other party notifying them that you will be late. What if we have smart traffic signals, that don't change according to timer but according to traffic level each side. Applications of IoT are infinity, you just have to think.