4G lI. 8:02 .The Transformative Effect of the Int...X Volume 44 Paper 5 pp 129-140 January 2019 Communications of the Association for Information Systems 130 1 Introduction The Internet of things (loT) refers to things connected to the Internet that can communicate with one another and that one can access through ubiquitous technologies (Atzori, lera, Morabito, & Niti, 2012) The loT has garnered significant attention in information systems (IS) because it affords ubiquitous services with increased connectivity and integration into business and society that offer myriadi opportunities.A recent report from McKinsey & Company has projected companies connectivity expenditures to increase 15 percent annually through 2022 (Baroudy, Kishore, Nair, & Patel, 2018) Further, reports from Gartner, Deloitte, McKinsey, and the Info-Tech Research Group (Raynor & Cotteler 2015; Info-Tech Research Group, 2015; Zhang, 2016) have emphasized the prevalence of loT and projected the loT industry to be a multi-trillion-dollar opportunity with 50 billion devices connected by 2020.Numerous physical devices and objects referred to as "smart devices (e.g., appliances trashcans, water meters, vending machines) now feature software and location-based technologies that connect to networks that exchange data with each other ubiquitously.. This instrumented, "interconnected", and intelligent connectivity between devices positions loT as a technology with the potential to make a significant impact on the human enterprise and its organization.n today's hyper-connected economy and environment, loT has the potential to radically transform businesses and society through increased transparency, increased output and uniformity, and decreased operating costs.The loT is also one of the technologies setting the path for the fourth industrial revolution in which interconnected physical devices will automate skills and tasks, which will have a direct impact on the way consumers, businesses, and govemments interact with the world.