An IP address is an exclusive number assigned to a user on a computer network and is used to communicate with and identify those users. An IP address can be fixed or assigned dynamically. If fixed, the IP address does not change. On the other hand, if dynamic, the IP address can change periodically.
Knowing your IP address can help you refine your web site traffic and usage statistics. By filtering out your own IP address, you can remove your self (and/or your employees) from your website traffic reports thereby getting more accurate reports of your website traffic.