IT FOCUS ON IOT

PREPARING FOR
THE INTERNET OF
THINGS: WHAT YOU
NEED TO KNOW

codeguru <HTMLGOODIES/>
TM

INFOSTOR
®
 CONTENTS
This content was adapted from the Baseline Magazine
and CIO Insight website. Contributors: Karen A. Frenkel,
Samuel Greengard, and Dennis McCafferty.

›02
Strong ROI, Increased

04‹
Innovation Fuel IoT Adoption

How to Build a Better

IoT Framework

›06
What Companies Seek

08‹
From the Industrial IoT

12 Tips for Implementing

IoT Security
Strong ROI, Increased Innovation Fuel IoT Adoption
By Dennis McCafferty

W ith the majority of organizations having introduced

internet of things (IoT) devices and sensors into the
workplace, companies are reporting ROI that impressively
more importantly, the data and insights they extract,
must also keep pace. An estimated 3,100 global IT and
business decision-makers took part in the research. Here
extends well into double-digit territory, according to a are the key findings:
survey from Aruba, a Hewlett Packard Enterprise company.
The accompanying report, “The Internet of Things: Today Broad adoption: 56 percent of the global IT and
and Tomorrow,” reveals that IoT adoption is boosting the business decision-makers surveyed said their organization
efficiency of both business and IT teams. It’s increasing has brought IoT devices and sensors into the workplace.
opportunities for innovation, while expanding organization-
Time tool: 82 percent of those in organizations that
wide visibility. And, in terms of financial impact, it’s
have adopted the IoT said the technology is significantly
improving profits and creating prospects for new market
increasing business efficiency, and 80 percent said it has
growth.
improved the effectiveness of their IT teams.
There are, however, challenges that present obstacles
Enterprising addition: 81 percent of those respondents
to continued success, including the threat of IoT-related
said the IoT is significantly boosting innovation, and 77
cyber-breaches and an inability to create analytics-driven
percent said it’s doing the same for organization-wide
value from IoT data. With the business benefits from IoT
visibility.
surpassing expectations, it’s no surprise that the industry
will move toward mass adoption by 2019. But with many
Sales engine: 72 percent of the decision-makers
executives unsure of how to apply IoT to their business,
surveyed said the IoT has increased profitability, and 36
those who succeed in implementing IoT to transform their
percent said they expect it to help them expand into new
organization are well-positioned to gain a competitive
markets.
advantage. … Scale and complexity, proper security
methodologies to protect the network and devices, and, Robust returns: Survey respondents said that, on

2
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
 PREPARING FOR T HE IN T ERNE T OF T HINGS: WHAT YOU NEED TO KNOW

average, IoT deployments are delivering ROI of 34
percent, and 25 percent of them said they’re seeing ROI
of 40 percent.
Stalled effort: While 98 percent said they are adopting
the IoT to analyze data, 97 percent said they face
challenges in creating value from this data.
Compromised state: 84 percent of the survey
respondents said their organization has already
experienced an IoT-related breach.
Plateau period: 94 percent of the IT decision-makers said
they face barriers in creating new business value with the IoT.
IT Barriers to creating business value with the IoT:
Cost of implementation: 50 percent, Maintenance: 44
percent, Integration with legacy systems: 43 percent
Well-defined: 67 percent of the survey respondents
define the IoT as the addition of “internet connectivity
to everyday objects,” while 65 percent said the IoT is “a
network that connects multiple objects, devices and
sensors.”

3
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
How to Build a Better IoT Framework
By Samuel Greengard
T he idea of an enterprise connecting devices, objects,
and other things is nothing new. Over the past
several years, many organizations have experimented with
RFID, beacons, sensors, automation platforms, mobile
technology, and a spate of other systems.
“If you go back a few years, business and IT leaders
were mostly kicking the tires on the IoT,” observes
Craig McNeil, managing director of the IoT business for
consulting firm Accenture. “Now we are beginning to see
companies investing heavily in the IoT. They recognize
that it represents the future of business.”
Make no mistake, as data becomes the new currency
and the desire for insight into processes and activities
grows, the internet of things will play a key role.
However, establishing a clear IoT strategy and building a
framework to transform ideas and concepts into systems
that generate revenue can be challenging. Not only must
business and IT leaders connect a spate of technologies
and systems, but they also must manage partnerships,
oversee APIs, and deal with security and privacy concerns.
The IoT’s many dimensions and touchpoints make
4
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
managing this technology even more complex. “You
have to understand how the IoT can generate value
both internally and externally,” states Debbie Krupitzer,
practice lead, Digital Manufacturing and Industrial
Internet of Things for North America at consulting
firm Capgemini. “Does it cut costs? Does it improve
performance or efficiency? Does it make life easier or
better for employees or customers? Does it make a
product or service more engaging?
Without answering some of these key questions, it’s
impossible to build a platform for success.
Putting Connections to Work for the Business
As the IoT moves from the periphery to the center of
an enterprise undergoing a digital transformation, that
organization must first determine where the opportunities
lie and how the enterprise can take advantage of them.
This requires a different mindset and a different approach
than in times past.
A starting point is to understand that business and IT
leaders must work in new, more collaborative ways to
 PREPARING FOR T HE IN T ERNE T OF T HINGS: WHAT YOU NEED TO KNOW

identify where value exists. IT must support the endeavor There’s also a need to design the interfaces, apps, and
with an agile, flexible IT infrastructure that, among other other systems that transform the IoT into actual products
things, taps clouds, mobility, APIs, artificial intelligence and services. McNeil believes that it all comes down to
(AI), real-time connectivity, and advanced analytics. these two core things: “The processes and skills needed
to build an IoT framework and the technology necessary to
Accenture’s McNeil says that it’s important to identify support the initiative. Once you have a framework in place,
potential use cases before diving into an initiative. These you can begin to address any gaps and move forward.”
often revolve around financial impact and cost drivers,
but they may also touch on business opportunities Keeping an Eye on Digital Transformation
and remapping processes, workflows, and customer
interactions to unlock untapped and previously hidden As organizations embrace a connected world and build
value. New and different thinking is paramount. systems for both the industrial internet of things and
consumer-facing IoT products and services, the initiative
“Oftentimes, it’s really about experimenting with sensors will begin to take shape, Capgemini’s Krupitzer says. At
and data inputs to see what makes sense for the business,” this point, conversations typically revolve around how
McNeil explains. Of course, not every organization can to add more sensors to products and machines, how to
be a disruptor, and not every situation benefits from connect factories and supply chains, and how to achieve
connected devices and systems. However, “The thing to economies of scale with the IoT.
recognize is that the IoT has value for every industry,” he
says. “It’s all about finding the opportunities.” “It’s a dialog that requires business and IT involvement,”
she says. “There’s a need to understand how the IoT will
For example, McNeil points to a tire manufacturer that be used to collect data, but also how to use it and draw
began embedding sensors in tires—not only to help insights from it.”
customers know when they need more air in the tires, but
also so that the manufacturer could better understand This, in turn, may lead to conversations about how to
usage and wear patterns. “Over time, when you use digitally transform the business beyond the IoT. In some
sensors, you learn which sensors are most useful, how cases, organizations may discover that they need to
they work and what you’re measuring under different morph from product-centric firms to services companies.
conditions,” he says. “Eventually, you learn how to design This may result is further discussions about new
a better product or adjust the pricing structure.” business models and ripple into areas such as analytics,
automation, interoperability, security issues and privacy
The tire manufacturer recognized that it could charge a concerns.
premium by providing more data to customers. Other
industries—a retailer, for example—might benefit In the end, it’s important to avoid getting caught up in
by connecting point-of-sale data, social media feeds, the technology and the deluge of data that can result
inventory management systems and beacons to introduce from IoT sensors, machines, smartphones, social streams,
dynamic pricing, contextual marketing, and mobile orders. and more. It’s about gathering more data. It’s about
collecting the right data and connecting the right data
Not surprisingly, it’s critical to assemble the right points.
technology framework for the task. This means building
an ecosystem—with the right technology partners and “Once you identify the value points and have a hypothesis,
analytics providers—to deliver valuable features and you can begin to test, adjust or change them and home
services. In some cases, organizations might look to use a in on the opportunities,” says Krupitzer. The process is
plug-in IoT platform or contract for other services. But the iterative and incremental, but, “When organizations get
task doesn’t stop there. things right, it can change the landscape and disrupt the
business or an entire industry.”

5
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
What Companies Seek From the Industrial IoT
By Dennis McCafferty

A clear majority of organizations have a growing or

high interest in the industrial internet of things (IIoT),
according to a survey from the Business Performance
Innovation (BPI) Network.
that there is a significant distance between expectation
and execution that must still be overcome.” More than
350 global executives took part in the research. Here is a
summary of the key findings from the survey:

The resulting report, “The Impact of Connectedness on
Competitiveness,” indicates that these manufacturing-
based companies are seeking more efficient operations
from their IIoT investment, as well as better product
and services differentiation, and improved customer
engagement.
However, there are lingering obstacles to full-scale,
successful deployments, including existing skills gaps and
a lack of adequate data integration capabilities. “While
there is widespread recognition of the value and impact
that these technologies and applications will deliver in the
next few years alone … most companies are lagging in IoT
readiness,” according to the report. “Business leaders are
concerned that their organizations are falling behind in the
race to keep pace with IIoT. They lack critical competencies,
are struggling to reimagine business in a connected world,
and largely see themselves as very early in preparing for
the changes ahead. These gaps in IoT readiness suggest
What companies seek from the industrial IoT: The IIoT
can provide more efficient operations, as well as better
product and services differentiation. But obstacles may
prevent full-scale deployment.
Top topic: More than 60 percent of the global executives
surveyed said IIoT represents a technology of growing or
high interest and focus in their organization.
Making a difference: More than 40 percent said IIoT will
have either a significant or major impact on their industry
over the next three years.
Significant buy-in: 55 percent of the global executives
surveyed said the IIoT is gaining adoption in their industry,
including pilot projects and large-scale adoption.
Selling points: 47 percent believe the IIoT can make
operations more efficient, while 36 percent said it can
create product and services differentiation.

6
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
 PREPARING FOR T HE IN T ERNE T OF T HINGS: WHAT YOU NEED TO KNOW

Engaging proposition: 34 percent of the global People problem: 61 percent of the survey respondents
executives surveyed think the IIoT can improve customer said their organization has a large or major skills gap in
engagement and satisfaction, and 26 percent said it can achieving operational connectedness with IIoT and taking
increase productivity. advantage of IIoT-generated data.

Primary focal points of IIoT investments: New products
and services: 35 percent, Customer touch points: 29
percent, Manufacturing: 23 percent.
Top benefits of the IIoT: Improved equipment uptime
and performance: 37 percent, Better operational
intelligence: 27 percent, Self-diagnosis and automation:
26 percent, Operational efficiencies: 25 percent, Reduced
maintenance costs: 19 percent.
Improvement points: 51 percent reported that their
company will need new tech skills to successfully pursue
IIoT adoption, while 41 percent said they will need better
data integration and analytics capabilities.
Average assessment: Just 37 percent of the global
executives surveyed rated as good or excellent their
company’s ability to develop and deploy apps that utilize
real-time insights and systems monitoring.

7
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
12 Tips for Implementing IoT Security
By Karen A. Frenkel

T he internet of things (IoT) is everywhere. It’s in our

homes, cars, offices, and most commonly around
our wrists. It’s changing the way factories are run, how
Here are tips for implementing IoT security within
products.

health care is delivered, and how cities operate. With
an estimated 5.5 million new “things” connected each
day, and an expected 6.4 billion in circulation by the
end of 2016, according to Gartner research, the IoT will
increasingly become part of our lives.
With the IoT’s proliferation comes great responsibility.
You cannot take the security of the rapidly expanding
IoT ecosystem for granted. Even the smallest, most
minimally connected device must have the appropriate
safeguards built in throughout its lifecycle. It’s time to
focus on IoT security at the point of design to securely
manage devices from inception through implementation.
The potential of IoT devices and sensors is enormous.
However, if we fail to ensure the security of each device,
it’s very likely that the exploitation of unguarded
vulnerabilities will stop progress, preventing us from ever
fully realizing that vast potential.
Broad security needed: IoT security needs to span from
cloud to end device: any vulnerability affecting many
end devices could have a wide impact on the rest of the
system or service.
Implement security at design time: Security should be
implemented in IoT products at design time. It should
derive from a system view and be built from a mix of
hardware and software features.
Three types of IoT security: Security for IoT nodes can
mean many different things. We can categorize them into
three different groups: lifecycle security, communication
security, and device security.
Lifecycle security: Lifecycle security covers the ability
to securely and remotely manage the device at different
stages of its life, from configuration, monitoring, and
upgrade, until it is decommissioning or revocation.

8
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
 PREPARING FOR T HE IN T ERNE T OF T HINGS: WHAT YOU NEED TO KNOW
Communication security: Communication security
relates to the measures that should be put in place to
guarantee the integrity, authenticity, and confidentiality of
the link between the device and the cloud.
Device security: Device security focuses on the integrity
of the IoT node itself, the protection of its resources, data,
and behavior over the time of its deployment in the field.
Security proportional to threats: The security
implementation needs to be proportional to the threats
the device will face, and also to the estimated cost of a
security breach.
Comprehensive threat assessment: A threat assessment
needs to be completed and should take the whole system
into consideration, including potential side effects.
Make protection against scalable attacks the priority:
For IoT nodes, protection against scalable attacks—those
9
Back to Contents Preparing for the Internet of Things: What You Need to Know © 2017 QuinStreet, Inc.
that can inexpensively be duplicated in other devices—is
a priority.
Chain of trust: Security can be built into a system as a
chain of trust, starting with a Root of Trust—a minimal
secure domain with dependable security functions, with
private access to protected keys. To implement this
properly, isolation is key.
Rely on pre-integrated solutions: Designing a secure
product from scratch is time-consuming and prone to
security holes. It saves time to rely on pre-integrated
solutions that expert teams have verified.
Include security evaluation into product development:
A security evaluation, for example, an external security
code audit or white box testing, should be planned into
the product development.