Definition

the Internet of Things is a relatively new concept that refers to a self-configuring, wireless network between objects, such as household appliances. [Source: Wikipedia]
The term "Internet of Things" has come to describe a number of technologies and research disciplines that enable the Internet to reach out into the real world of physical objects. Technologies like RFID, short-range wireless communications, real-time localization and sensor networks are now becoming increasingly common, bringing the Internet of Things into commercial use. [Source: Internet of Things conference, Zurich 2008].

Implication on e-business

The linkage between the real world and the Internet poses questions of data protection, privacy etc.
the European commission issued a communication that enumerates 14 priority issues with regard to the IoT, among them three that refer directly to trust &security issues: Action line 2: continuous monitoring of privacy and data protection questions; Action line 3:the "Silence of the chip" which allows users to switch off any appliance; and action line 4: trust, acceptance and security, and identification of emerging risks, to be monitored by ENISA, European network and information security Agency.
Related Documents
Commission Communication COM (2009)278 final

Related issues

trust
Data Protection
Privacy