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ACCA Strategic Professional · Strategic Business Leader · Cloud, mobile and smart technology

Kestrel Logistics fits sensors to its refrigerated trucks. The sensors send temperature and location readings automatically over the internet to a central system, with no human data entry. Which description best fits this arrangement?

The arrangement is an Internet of Things deployment. Physical devices with embedded sensors and network connectivity capture temperature and location data and transmit it automatically to a central system without human data entry, which is the defining feature of IoT, unlike EDI or manual reporting.

  1. AAn Internet of Things deployment, in which connected devices collect and exchange data automaticallyCorrect
  2. BA traditional electronic data interchange link between two companies' accounting systems
  3. CA private enterprise resource planning module used only for payroll
  4. DA manual management information system relying on periodic staff reports

Explanation

The Internet of Things refers to physical devices embedded with sensors and connectivity that gather and transmit data without human input. Truck sensors sending readings automatically fit this exactly. EDI exchanges structured business documents between organisations and does not involve sensing the physical environment.

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