<p>Heavy oil displacement compound development involves drastic changes in formation temperature and seepage conditions. Traditional methods relying on manual monitoring and empirical judgment are often delayed, making it difficult to timely reflect dynamic development performance. To address this problem, this study establishes an evaluation and early warning system for heavy oil displacement compound development based on Internet of Things (IoT) monitoring data. The study first introduces the system design and methodology, then discusses the system architecture and implementation, and finally conducts case studies and application validation, laying a foundation for improving the effectiveness of heavy oil displacement compound development. Research results show that, through application verification in a typical heavy oil field, the system achieves closed-loop operation from monitoring and evaluation to early warning and decision-making. It significantly improves production efficiency, reduces unit energy consumption and CO₂ emissions, and enhances safety response capability. The conclusion indicates that the system has good feasibility and promotion value, and can provide technical support for the digital, intelligent, and green transformation of heavy oil development.</p>