6 Challenges and Risks of IoT

6 Challenges and Risks of IoT

According to Dell, the Internet of Things (IoT) is an ecosystem where sensors, devices, and equipment are connected to a network and can transmit and receive data for tracking, analysis, and action.

In our previous blogs on IoT, we have discussed innovations IoT will bring within everyday business, education, military, medical, component advancement, smart cities, the environment, and the supply chain. But, with new innovation, difficult challenges arise.

Security & Data Governance

Problem: Companies are concerned, for good reason, that when they connect their physical environment to the cloud or data centers, it becomes at risk of being accessible to the outside world.

Solution: A way to face this challenge is to review and strengthen your current IT security infrastructure. Then, carefully select your new hardware and software partners by understanding their security profile. Security should be a number one priority when implementing an IoT platform.

IT and business partnership

Problem: This partnership is not always a natural relationship, so in turn comes challenges.

Solution: Start by working with smaller integrated projects that revolve around analytics and security, and then work your way up to the larger projects.

Data and analytics complexity

Problem: A common practice that is being seen within companies is that they are sending their sensor data directly to the cloud or datacenter. This is not always the best choice because it can create latency, drive costs, and can open up security risks.

Solution: When dealing with large amounts of data, companies like Dell, recommend looking into Gateways, stating that this is a strong architecture choice to improve performance, reduce cost, and improve security.

Lack of data protocol standards

Problem: An ongoing struggle some companies endure is having a consistent global protocol for all of this extra data that is being collected.

Solution: An IoT business model typically has three, distinct facets: launch, manage, and monetize. Set rate plans while integrating your new IoT business with your existing infrastructure. Monitor your connected devices in real-time, tracking data, usage, connectivity, etc. Run diagnostics to identify and troubleshoot issues on any devices, anywhere, at any time. Monetize by setting rates for each type and level of service you offer and define how those plans will be managed over time, and then automate it.

Diversity of niche providers and solutions

Problem: With so many up and coming companies that have many great ideas when it comes to IoT, it becomes a challenge to sift through all of these ideas to find what is right for you.

Solution: When choosing a provider there is some must-consider criteria to keep in mind.

  • Business stability: asking questions based on the corporate background.

  • IoT standards: examine which technology standard the provider has adopted and if they are using proprietary technology.

  • Hosting model: look to see if they provide public or private cloud options.

  • Big data:  see how data is stored and how flexible the storage model is in addition to extraction and reporting tools that might be available.

  • Security: make sure you know about their policies and track record for security and privacy of user data.

Confusion on where to get value (ROI)

Problem: Last but not least, where do you find value with IoT? By implementing all of these changes, where can I expect to see a ROI?

Solution: You need analytics that relate to your deployed devices, network usage, rate plans, and resulting costs. This would give your company detailed insight into how devices area using network resources and what it is costing you. Based on your cost, offer more service packages that can lead to higher profits without requiring additional resources.

As with any technology decision, make sure you have full understanding of business and technical constraints and requirements before implementing any IoT platform.

Advanced MP Technology is a leader in the distribution of quality electronic components. Our robust Oracle system and sophisticated global IT network is well in placed to provide the world class service to our customers from RFQ to CRM service. By staying up-to-date with the latest technology and market information, we make sure our internal processes and business practices will create the highest value for our customers.