Internet of Things （IOT）has attracted widespread attention in China. However，there is no uniform perspective about IOT among universities，institutes，enterprises，and so on. These facts are due to different point of views. This article analyzes the IOT from the following points of view：application，technology，function，and benefit. In addition，the author begins with a case study in the field of intelligent transport system，and then proposes that Internet of Things is not the direct application of existing systems，but the application refocusing and service function reconstruction both of which involve a lot of work，and the creation of new technologies and new benefits unique to Internet of Things based on technology compatibility.