What does the Internet of Things offer, and how is it protected
Do you remember how happy you were when you sent your first email, went online for the first time, or made an online purchase? In a very short time, the Internet has turned into something self-evident. Today, the world communicates in real time. From a mobile phone to a car and a wristwatch: all interconnected devices are in contact with each other via the Internet.
Each device transmits information passively, and continuously. The user can actively manage it, and at the same time any appropriately programmed computer can access it. Thus, a huge amount of data passes through the network. Any information can be found, extracted and evaluated.
Big Data analysis introduces this data into the economic context, and causes appropriate actions. This is done immediately, intellectually and without further human intervention.
Practical implications
What sounds abstract has practical consequences: Eight out of ten industrial companies deal with the Internet of Things (IoT). These are the results of a survey conducted by the Bitkom digital association.
Companies develop digital services, combine production facilities and products into a network, or control processes. This applies to cars, thermostats, machine tools in production, medical devices and countless other technological tools that collect and exchange data.
The technical basis for data exchange is the platform, some of which are listed on Coinmarketrate.com. These are usually cloud technologies, so data is stored in a digital cloud regardless of location. These IoT platforms connect the real world with the virtual one. Companies use them to manage the network and security of IoT devices, collect data and connect devices with systems in the backend, that is, in the background.
The engine of the economy
The Internet of Things has turned from a megatrend into an established concept. The world of connected things is turning internationally. For example, let’s take Germany, with a growing market with billions of turnover.
According to Bitkom, 43 percent of German industrial companies already use the IoT platform. Energy suppliers, medical institutions and retailers in particular have a variety of network devices. For only 19 percent of companies, IoT platforms are not a problem. More than a quarter rely on an external vendor’s IoT platform, in short: platform as a service – PaaS.
This changes production processes so much that people have been talking about “Industry 4.0” in this context for some time. At the same time, there are many IoT applications. Factories, houses, cars, and even entire cities are networked. One example: the use of predictive maintenance of machines in the B2B sector.
New services increase the speed of response. Real-time assessment allows you to detect anomalies. This helps to detect product defects at an early stage or quickly identify and eliminate supply bottlenecks. Processes are automated thanks to the Internet of Things, and at the same time become more flexible. This allows companies to react instantly to changes in the market.
The client sets the rules
For some, digital transformation is just technology, for others – new business models. All of them are good, but very few have a perfect plan.
For the client, it’s all the same. “No customer ever buys just a product,” said American economist Peter F. Drucker. “He always buys what the product does for him.” For the consumer, it’s all about utility.
How many Internet-connected devices do you have at home? In 2021, there will be about six objects per person, according to the software manufacturer SAP. Theoretically, information technology specialists can equip all things, big and small, with sensors. After the sensor is installed, it provides valuable data.
Other examples:
- During the trip, you can evaluate flight information, determine the position of baggage and passengers, improve logistics chains and digital networks, for example, by exchanging data or accessing the Internet on an airplane.
- In agriculture, the tractor provides information, farmers know which plants need to be grown, how and where.
- In production, it is possible to coordinate the logistics chain of transported goods, register the movement of people and vehicles using sensor data, anticipate and avoid traffic jams.
- Sports teams can optimize their workouts.
- Or the car is equipped so that each component constantly collects data about its condition and indicates when and what needs to be replaced.
The potential is also huge in areas such as healthcare technology, energy supply, smart homes, fitness devices, urban services, lighting and waste collection. Data from internal sources can be further combined with data from third-party organizations, such as weather, traffic, pricing, or customer sentiment.
IoT Goal
The client should get what he wants, when he wants it – and in the way he wants it. For example, an online store can use algorithms not only to raise and lower prices over time, but also to personalize them.
In the future, the Internet of Things may be expanded to the “Internet of Everything”: in other words, the Internet, including people. In other words, the body can connect to the Internet using wearable technology.
Wearable devices are portable devices that can be attached to a person almost imperceptibly. Currently, companies are successfully experimenting with “smart” clothing, “data glasses”, “smart” watches or wrist devices.
IoT products will not only radically change our daily lives: any industrialist who wants to get added business value from bits and bytes must understand the interaction of protocols, gateways, machine-to-machine communication (M2M), Big Data and databases. It is difficult. But it promises great benefits, reduced costs and increased efficiency. In short: it’s worth it.
IoT: 5 Most Important Security Questions and Answers
How high is the risk?
There are very big risks associated with the Internet of Things – from data theft and service interruption to loss of control. The risk of becoming a victim of an attack is increasing: cases of cybercrime in the industry increased by 80 percent in 2021, compared with the previous year, according to a study by audit and consulting company KPMG. Most of these incidents are never reported to the police.
Devices on the network can also be hacked. Whether it’s documents, movies, presentations or Excel spreadsheets – information is an asset of the company, and as such is under threat.
Every day, completely different groups of attackers cause damage to companies for different reasons. This applies not only to IoT. The authorities consider the threat from ransomware to be particularly alarming. This is malware, i.e. malware that cybercriminals use to infect and lock a computer, and then demand money to unlock it.
How do companies handle this?
Many decision makers neglect security. 43 percent claim that IT security plays only a secondary role in the implementation of IoT projects. These are the results of a survey conducted by Trend Micro, a software vendor. Among respondents from Germany, this value was the highest in the world – 46 percent.
Almost two-thirds said that over the past twelve months, the number of cyber attacks related to IoT applications has increased.
What kind of damage can occur?
Cyberattacks can cause significant damage to a company’s reputation and finances. For example, hackers who encrypt data using their ransomware programs, such as Petya or WannaCry, and make them available again, perhaps only for ransom. Or the websites of companies paralyzed by the so-called DDoS attack, i.e. a targeted attack that leads to an overload of the data transmission network.
Life threatening and injury is also possible with the help of IoT. Unauthorized access to IT devices not only destroys or steals information and data, but can also be directed against physical integrity. For example, hackers managed to get hold of a Jeep via the Internet due to a security vulnerability. While driving, they could control the radio, the sound signal and, when driving slowly, the brakes. But with modern cars with autopilot, it’s just a disaster.
What does security mean for the client?
Safety is increasingly becoming a characteristic of the product for the buyer. For them, security means trust. The adoption of digitalization depends on how much these technologies are trusted. Trust is given only to those companies that can guarantee data security. The consent of the data subject, i.e. customers and employees of the company, is a prerequisite for further processing.
Experts predict that in the future, those who earn the trust of customers will be allowed to process data. The obligation to provide information on procedural directories and the desire for transparency will go far beyond what the laws already require today. Therefore, it is very important that providers treat customers’ personal data responsibly so as not to jeopardize their trust.
What should companies do?
As digitalization becomes more and more part of the DNA of companies, they should pay more attention to the security of their technologies. This is not an all-or-nothing question, but a set of individually coordinated measures with the Information security Management System (ISMS).
Safety should also be considered at the early stages of design in the tradition of quality management. The key word is security by design. This term means that developers should already take into account the security requirements of the software and hardware of the product. This is necessary in order to prevent subsequent security gaps before they appear. After all, as the current project progresses, the costs of eliminating gaps also increase.
In case of an emergency, companies must protect themselves from hacker attacks.
Conclusion
Until quite recently, these technologies seemed to us to be a distant future. We have seen them in science fiction films, read about them in books. But if you strain your memory well, then we will easily remember more than one movie or novel where too “smart” houses, cars and appliances get out of control, or become weapons in the hands of intruders.
The IoT concept has grandiose prospects, but…
Blockchain technology is a breakthrough. It solves a lot of questions and problems, but it is by no means a panacea for stupidity, negligence or mistakes. Ignoring security issues, or insufficient provision of its high level, will negate the entire value of the Internet of Things.
Perhaps it is not worth talking about the possible income and size of this market yet? Perhaps we should still talk more loudly about security?