Abstract: The future of the Internet of Things (IoT) success, including technology advancements and revenue generating potential across the business spectrum, is dependent on the application of robust Systems Engineering processes, methods, and tools. Without Model Based Systems Engineering (MBSE), the complexity involved in the design, development, and deployment of IoT systems would require system and operational providers’ resources. Regardless of any industry standards, IoT systems cannot be built in a vacuum. Technology advancements in consumer products will continue to evolve to facilitate connection to IoT networks. This will be the catalyst for driving entire infrastructures changes to: federal, state, city, and local authorities and governments; product development companies; utility and service providers; and even to consumers. The infrastructure and management setup needs to be adopted prior to create smart systems. Such smart system will be shown in this paper by a traffic management system and its connected systems, as well as how a MBSE approach can help.