The Internet of Things (IoT) is transforming the way businesses operate by connecting physical devices to digital systems. Sensors, machines, and smart devices now generate streams of real-time data that can be captured and used to improve decision-making. To unlock the full value of this data, organizations need to integrate IoT into their business processes rather than treating it as an add-on. This is where modeling IoT-aware business processes becomes essential.

An IoT-aware business process is one that actively incorporates information from connected devices into its workflows. Instead of relying solely on manual inputs or delayed reports, companies can now design processes that adapt instantly to real-world conditions. For example, a logistics company can use IoT sensors on delivery trucks to track temperature, speed, and location, automatically updating the supply chain system when conditions change.

Modeling these processes requires thinking differently about traditional workflows. Business process modeling has typically focused on tasks, roles, and information flow between humans and systems. With IoT integration, the environment itself becomes an active participant. Machines can trigger events, sensors can provide context, and digital platforms can coordinate actions in real time. This makes processes more dynamic, flexible, and responsive to external changes.

There are many applications across industries. In manufacturing, IoT-enabled production lines can detect equipment wear and trigger maintenance before breakdowns occur. In retail, smart shelves can monitor inventory levels and automatically reorder stock. In healthcare, wearable devices can feed patient data directly into treatment workflows, helping doctors respond faster and with greater accuracy.

The challenge lies in designing business process models that can handle the scale and complexity of IoT data. Companies must ensure that models capture not just human tasks but also device interactions, data streams, and automated responses. Security and privacy also become critical considerations since IoT devices expand the surface for cyber risks.

Despite these challenges, IoT-aware process modeling offers major advantages. It increases efficiency by reducing delays and errors, enhances customer experience through real-time responsiveness, and improves sustainability by optimizing resource use. Over time, it can even create new business opportunities, such as predictive services or pay-per-use models enabled by continuous monitoring.

For students in the Digital Business program, learning how to model IoT-aware business processes provides an important skill for the future of work. It brings together knowledge of business operations, information systems, and data-driven decision-making. By understanding how IoT can be embedded into workflows, graduates will be ready to design smarter, more resilient businesses that thrive in a connected world.