Security in the Age of IoT

If by now you haven’t begun an Internet of Things (IoT) pilot or deployment you are likely to be in the minority compared to other service organizations and manufacturers.

As customer expectations increase around predictive service outcomes; and OEMs’ desire to have a link directly to the customer; and as the cost of censors come down, the IoT is playing a larger role in our service lives.

This article is not about how many devices or products will be connected by next year (I can’t believe 2020 predictions are already here!) or 10 years or beyond; there is enough research you can find elsewhere for that. Beyond the proliferation of device connectivity, which is well documented, a new concern is now keeping service leaders, IT, and customers up at night.

As we live in a more connected world, the security of all the data being transmitted back and forth from device edge to OEM, to dealer to supplier, to partner to customer and all points in between is becoming a critical concern In recent IDC Manufacturing Insights research, we found that the top business fear for manufacturers was security concerns due to increased connectivity technology.

Some of this anxiety may be unjustified as headlines of data breaches seem to pop up monthly. Cynically we may only hear about the mistakes and not the vast volume of data which remains secure globally, it is still critical that service leaders and IT address any concerns if the IoT is going to transform businesses and move from pilot to production.

As manufacturers and field service organizations address security concerns and further explore the possibilities of the IoT, specifically as it relates to service execution, a few recommendations should be considered:

"Don’t wait. Too often in business we assume bad things won’t happen..."

• Make security a priority for each function of the business and the entire ecosystem impacting your business. This should be a no-brainer. Security is rapidly becoming the currency of the digital age. I don’t see this slowing, especially as we continue to build connected partner ecosystems which share more data in real-time.

• Communicate to customers the risks and your action plan. Customers understand there is risk inherent to increased product connectivity and the IoT. But if they do not have confidence that the OEM or service organization is putting systems and processes in place to combat a potential risk factor they will go somewhere else.

• Build a plan to respond as proactively as possible. A connected world means a lot of benefits to service: Remote support; centralized expertise delivered to the field; dynamic customer portals that can trigger service work orders. But as we get closer to a 100% connected world (NOTE: I think we’re still a way off), service leaders must put in place security protocols to safeguard valuable customer and equipment data. If something were to occur, it is better to have a plan that can be acted upon than have to scramble.

• Don’t wait. Too often in business we assume bad things won’t happen: “Competitors can’t possibly replicate our products or the value our field service technicians deliver to customers”; “Our customers love us and would never leave just because of a lower price”; Our IT team has told us our infrastructure is impenetrable.”

As much as it is important to have a positive outlook, disruption happens. And waiting until a data breach from an edge device off in a remote area is not the time to first think about a plan. It must start now.

The IoT is beginning to show much of the promise we have been predicting for the past 5-10 years. Manufacturers and field service organizations are moving from pilots to production in ways that many of us thought was still years off.

But as our service world becomes more connected to systems, processes, equipment and customers the ability to secure that data will become even more critical for the success of the organization. It only takes one breach to shatter customer trust, and the value of connecting to insights mustn’t be thwarted by security concerns. Service leaders and IT must act now.

Aly Pinder is Program Director at IDC Insights

Features Management Aly Pinder IoT Security

About the Author: Aly Pinder

As Program Director, Service Innovation & Connected Products, Aly Pinder Jr leads IDC research and analysis of the service and customer support market for the manufacturer, which includes topics such as field service, warranty operations, service parts management, and how these service areas impact the overall customer experience. Mr. Pinder Jr. is also responsible for research which aids manufacturers as they evaluate innovative technologies like 3D printing for service operations, augmented and virtual reality in field support, and remote monitoring and resolution in support of assets. Mr. Pinder Jr. establishes a roadmap for the manufacturer to better understand how technology can transform service and support functions to drive exceptional customer experiences and customer value, profitable revenue growth, and improved efficiency in the field. BACKGROUND Previously, Pinder Jr. has been an analyst researching the service and customer support market for more than twelve years at The Service Council, the Aberdeen Group, and IDC. He has established himself as a thought leader for the trends and best practices impacting manufacturers regarding field service, service parts management, service contract & warranty management, and the Internet of Things. EDUCATION/INDUSTRY ACCOMPLISHMENTS • M.B.A in Supply Chain Management from The D’Amore-McKim School of Business at Northeastern University • B.S. in Business Administration from Pepperdine University • Frequent keynote speaker, presenter, panelist, and moderator at industry conferences, technology vendor events, and end user events.