Information for Business from Lenovo
Rob Livingstone
Contributor: Rob Livingstone
Why CIOs need to prepare for the Internet of Things

The IoT exists as a result of the microminiaturisation and integration of electronics, sensing devices, wireless transceivers, internet connectivity and mobility.

In essence, the IoT creates a network between independent devices. This has the primary benefit of allowing these devices to produce simple data that businesses can use to monitor and control physical processes.

The question is: how are IoT technologies relevant to today’s enterprises?

IoT and your business

While IT industry analysts and consulting firms talk up the potential for the IoT to create new revenue growth and business opportunities, translating the associated value, cost and risk into tangible benefits for your business is complex.

Enterprise technology implementations are often unique to each enterprise, and this poses a challenge for many businesses. Even across identical industries, no two organisations are the same.

Be wary of assuming “if it worked over there, it’ll work here” in the context of your enterprise – the way you map IoT capabilities to your specific processes and needs will be a critical success factor in the adoption of these technologies.

IoT: The upsides

How can the IoT translate into tangible opportunities for Australian businesses?

In attempting to answer this, we need to recognise that the IoT will most directly benefit organisations that need to monitor and control people, equipment and processes, or any combination thereof, in the physical world with digital technologies.

For example, when comparing organisations in the legal or financial services sector with, say, the petrochemical industry, the opportunities for IoT technologies will be substantially different. In the latter instance, the sheer number of physical assets and objects that an oil refiner needs will dwarf those a law firm might use. Both organisations could benefit from IoT devices to monitor processes, but the oil refinery will derive greater value from the investment.

Any organisation designing and developing new products and services should consider how IoT capabilities could improve each stage of the product or service life cycle. This may help you futureproof your products and improve their value to the customer.

Your organisation will realise the full value of the IoT when you can maximise the interoperability between your devices and systems in the physical world. This will allow your organisation to record and use important data generated by smart devices to improve decision-making, eliminate waste and increase value.

IoT: The risks

A recent report from ISACA informs readers: “It is imperative that assurance, security and governance professionals take notice of the IoT trend because it has the potential to redefine the risk equation within many enterprises.”

The rapid increase in new smart devices has provided cybercriminals and nation-state hackers with new ways to gain access to your organisation’s critical systems and highly sensitive information. For this reason, it’s important to factor IT security into business decisions relating to IoT technologies in their current stage of evolution.

The uncontrolled uptake of IoT devices within your business provides a greater potential for personal information and business data to exist in the cloud. This has significant implications for developing and implementing proper security to protect data across the enterprise.

For example, placing a smart TV in your boardroom without appropriate IT security measures could give others access to your business plans, intellectual property or investment strategies.

Memo to the CIO: Think shadow IT is a challenge? Wait for the IoT tsunami

Many companies have dramatically expanded their use of IT to improve the effectiveness of business processes. This expansion has taken many forms – some organisations have implemented BYOD (bring your own device), while others have permitted local business units to make IT decisions without appropriate oversight. Still others have enabled uncontrolled use of public cloud services.

Given this, it is imperative that CIOs ensure directors, executives and the business as a whole are fully informed and well advised about the appropriate approach to IoT technologies.

Where line-of-business executives are looking to use IoT technologies to help find new customers, create new markets and products without appropriate IT and risk oversight, it’s important to ask: which specific director is accountable for managing the risks associated with IoT technologies for our business?

In helping to answer this question, CIOs should play an active role in ensuring the organisation achieves the upside potential of IoT technologies with known cost and known risk.

 

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