What is meant by the "Internet of things"?

What will be an ideal response?

An important trend for Web 2.0 and beyond-to what some call "Web 3.0" or the "modern" web-is the exponential growth of data and innovations in the way organizations collect, use, and value it. The flood of human participation is one contributor to the growing volume, through crowdsourcing and social media, for example. New sensors are adding far more, through RFID technology, smartphones, cameras, camcorders, GPS devices, and other sensory input. The original IP address system is overwhelmed because so many new devices need unique addresses, but the new numbering scheme will make room for quadrillions more to accommodate the "Internet of things."
Companies can achieve distinct competitive advantages when they manage to get control over valuable data collected by all these sensors, organize it into a database, and find ways to understand customers and create new products.
For example, innovative companies leaped at new ways to use GPS data when the U.S. government decided to unscramble some of the data from military satellites. Now a smartphone with GPS can help you navigate to the store, find Italian restaurants near your location, and measure the distance from your golf club to the putting green. Navteq, for instance, creates digital maps for navigation devices-not just for car travel, but for walkers and bike riders. While GPS innovation toppled the paper map-making business, it added many billions to the U.S. economy in new services and applications.