The IoT has allowed a range of devices to connect and interact with one another to analyse data in real time and allowed product functions to be monitored and optimised remotely. This chapter outlines the key building blocks and capabilities of the IoT and considers the transformational impact of the IoT on business functions including design and development, manufacturing, marketing and after-sales service and support. It is shown how the IoT can transform customer relationships through offering ever-evolving additional customer services, greater personalised and customised products and services and building longer-term relationships with customers. The chapter highlights how the IoT can support an operational efficiency and responsiveness supply chain strategy. It also explores the impact of the IoT on the servitisation concept and how they can create servitised business models such as add-on, sharing, usage-based and solution-oriented types. The chapter presents a framework highlighting the key issues involved in IoT implementation including how the IoT can create and capture value, the impact on competition, systems integration and IoT functionality and data considerations.