The Internet of Things (IoT), another buzz world (and acronym!) is a crucial element of Industry 4.0, or the fourth industrial revolution as it’s also called; the use of data automation and data exchange in modern manufacturing. Loosely described, IoT is everything that is connected to the internet.

However, it’s the increasing ability of devices such as laptops, phone, watches, cars and fridges to “talk” to each other that is coming to define what it actually is. But how does it work? The blood of this digital eco-system is data, and its oxygen is automation. When combined, information is gathered, analysed and acted on producing an outcome. We’ve all probably got an Alexa-type smart device blinking in the corner of our living room or kitchen, our TV knows when to record Game of Thrones and our thermostat remembers when we’re coming home from work so the living room is nice and toasty but as much as your fridge sending you a text to tell you you’re out of milk is handy, it’s in the realm of service that IoT can really make an impact.

On the surface, its potential is enormous. I often write about the asset becoming more important than the engineer and enjoy the debate that comes from such a statement. Yet, with machine learning, AI and in particular IoT it’s looking more and more likely that eventually, at some point, the role of the human in service could go all together. The smart asset – a wind turbine, for example – could flag-up a fault through a sensor, communicate with another turbine about the failure, who could respond with a solution, without the need for an on-site engineer.

This, example, I admit is rather woolly, but you get the idea; the potential is huge and in the industrial sector its impact is starting to be felt. Research conducted by PwC on US manufacturers’ attitudes towards digitization revealed 70% of those surveyed predict to be at a stage of digital advancement by 2020, compared with 33% currently. Furthermore, those firms are investing $907 billion annually on greater connectivity and smart factories suggesting, firms are realising the financial benefits of such technology. However, with all disruptions there comes challenges. 

A report from Gartner in 2014, around the time the IoT enthusiasm was building, checked the momentum slightly by highlighting issues around security and consumer privacy. Given the vast amount of data being shared by the possibility of a breach could have severe consequences. On the flip-side data collected on consumers and their behaviour is another area for concern. And while data collection can enhance a company’s ability to provide better services, any sort of mis-hap can in-turn, be just as damaging to firm’s image and the market in general.

Furthermore, as the number of connected devices increase real-time processses could be affected as storage and security requirements widen Five years on, where are we with IoT governance? Gartner’s 2018 report Top Strategic IoT Trends and Technologies Through 2023 suggested that some sort of protocol was essential. “As the IoT continues to expand,” the report’s summary read, “the need for a governance framework that ensures appropriate behaviour in the creation, storage, use and deletion of information related to IoT projects will become increasingly important.

Governance ranges from simple technical tasks such as device audits and firmware updates to more complex issues such as the control of devices and the usage of the information they generate. CIOs must take on the role of educating their organizations on governance issues and in some cases invest in staff and technologies to tackle governance.” There’s no doubting the potential of IoT. As mentioned, it can truly change the way service is delivered.

However, citing the statistic in the standfirst of this article, 75 billion devices are projected to be connected by 2025 and with that, the potential for. It’s the role of all firms, from the top-down to ensure they’re ring-fenced accordingly. 

* https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/