In this technological world, the Internet of Things (IoT) is new emerging technology which is revolutionizing the real world objects (i.e., cars, home appliances, baby monitor, etc) into automated virtual objects. These real world objects are connected by the help of embedded devices to the internet where they collect and share data by means of low cost computing. IoT has also a great impact in manufacturing zone and it brings changes in business prototypes. But in the application of current enterprises, an obstruction is encountered by computer aided software's when they deal with dynamics, uncertainties and complexities. It is proclaimed that the problem can be solved by adopting IoT and cloud services in systems of enterprise. In this research paper, challenges in creating composite product's assembly plans are discussed and IoT based approach for automation of assembly modeling system is presented by integrating cloud services. Adafruit cloud service and IoT are proposed in developing advanced systems from existing assembly system which deals automatically with complexities. The new approach has modularized architecture which is stable and flexible. Automated algorithm for assembly planning and object-oriented templates is proposed for reusing the system parts. This approach efficiently reduces the complexity of system as well as decrease the error rate.