I have included a locator map but i would like to make it dynamic in a way that when the user is mapping changes to a different area to map the locator map should change the location automatically.
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"IOT" is not a term that I have come across - can you edit your question to define it, please? – PolyGeo♦ Sep 9 '15 at 8:51
Right-click to get the properties of the data frame for the location map. On the Data Frame tab you have the option to set the Extent to "Other Data Frame". I think this is what you are after. Good Luck.