The Internet of Things, or IoT, has grown from being a mere concept in the early 2000s to more than a reality, but a day-to-day necessity.

There are more than 10 billion connected IoT devices all over the world in 2021. And, the number is still projected to grow to more than 25 billion in 2030.

Meaning, IoT is now everywhere. We no longer rely solely on computers and smartphones, but also on wearables, smart speakers, smart thermostats, and smart lighting, among others, in our daily lives.

On the one hand, these IoT devices bring convenience and functionality. However, many of these IoT devices and sensors—that are actively connected to the internet—aren’t as secure as our traditional computers. Think about it. Is there an antivirus installed in your smartwatch? Does your smart security camera come with anti-malware measures?

This is why many cybercriminals are now shifting their targets to these vulnerable IoT devices, and when just one IoT device in your network is compromised, it can affect the whole network and expose your confidential/sensitive data.

So, IoT security is now an important concern for any businesses or individuals looking to implement an IoT project. It’s crucial to consider how to secure your IoT devices and network to prevent any cybersecurity threats and protect your data in the process.

Here, we will discuss all you need to know about IoT security, and by the end of this guide you’d have learned about:

• What is IoT security?
• Common cybersecurity threats in IoT deployments
• IoT security techniques and methods to protect your IoT devices and network
• IoT security best practices to implement in your company

And more.

Without further ado, let us begin this ultimate guide to IoT security.

What Is IoT Security?

IoT security is a sub-discipline of cybersecurity or IT security focused on protecting IoT devices, sensors, and networks.

The term IoT, “Internet of Things” itself, as we know, is a very broad term. How should we define the “things” in the IoT concept?

Just so that we are on the same page, we can define all internet-connected devices and appliances as “things”: your Apple Watch, your smart thermostat, your security camera, your game consoles, and even your smartphones.

As you can see, IoT security, with that definition, is also a very broad field.

In practice, IoT security may refer to both the protection techniques/strategies and also the tools/infrastructure used to protect the IoT devices and the network itself. It’s worth noting that the more interconnected devices in an IoT network, the more vulnerable the network is potentially due to the larger attack surface.

With how broad IoT security is as a field, the implementation of IoT security on an IoT project may involve a wide variety of techniques, methodologies, and tools depending on the size and complexity of the IoT deployment.

Why IoT Security Is Important

While cybersecurity is arguably important in all kinds of businesses and systems with online connectivity, IoT provides a unique case.

Not only IoT is very broad with a lot of potential attack surfaces, but there are also other concerning security challenges unique to IoT. Here are the three main security challenges in IoT that demand a comprehensive IoT security strategy:

1. Large attack surface with complex interconnectivity

More than any other technology, IoT deployments have a much larger attack surface due to their nature in connecting many different software and hardware solutions together. As discussed, the more ways these devices and software can connect to each other, the more ways cybercriminals can also expose these connections.

This creates a unique conundrum in IoT security: on the one hand, we’d like the IoT network to be as versatile and accessible as possible: we’d want more devices, more sensors, and more connectivity options for our users. On the other hand, these options will grant more opportunities to attack the IoT network for cybercriminals.

To summarize, IoT security must pay attention to all potential attack surfaces and entry points. Even a very small vulnerability on a single device, for example, can expose the whole IoT network.

2. Lack of resources in devices

The second key challenge in IoT security is the fact that many IoT devices and sensors are lacking in terms of resources to enable comprehensive security. For instance, many compact IoT devices do not possess enough computing prowess and/or storage capabilities to incorporate strong enough antivirus and firewall solutions.

On the other hand, many of these IoT devices are designed to be as compact as possible, and in many cases, security is not the main priority.

In many cases, we have to rely on unorthodox means to secure the device, which can be more difficult or more expensive (or both) to implement.

3. Lack of security awareness in many industries

It’s no secret that there has been rapid adoption of IoT technologies in many industries. Healthcare, for example, is one of the fastest industries in terms of IoT adoption. In fact, many healthcare facilities are now heavily reliant on various IoT devices and applications in providing their services.

However, this dependence on IoT technology can potentially amplify the impact of a successful cybersecurity attack. In September 2020, for example, a cybersecurity breach in a hospital in Germany has directly resulted in the death of a patient due to the hospital’s reliance on IoT technology to provide service.

Not only that, but many businesses in various industries were not prepared to invest the adequate amount of investments required to establish an adequate security level for the IoT network.

Key Business Risks Prevented By IoT Security

By implementing a comprehensive IoT security strategy to protect the IoT network, the operator of the said IoT system can prevent the following risks:

• Data breach of confidential/sensitive/regulated data. Loss of sensitive data due to cyberattacks can cause financial and legal repercussions, as well as long-term and even permanent damage to your business’s reputation. 
• Hackers taking control of IoT devices, which may lower the user experience and may affect the user’s safety in some cases
• Various security vulnerabilities in onboarding formerly unconnected devices to the network
• Malware attacks, which may convert the IoT devices into parts of botnets. Cybercriminals can then take control of the devices and use them, for example, in launching DDoS attacks
• Poisoned data, which may lead to wrong decisions in AI and machine learning applications. In turn, bad AI decisions can create wrong commands and actions

And more. By preventing these risks, we can ensure a fully secure IoT system, which in turn will help us achieve numerous benefits, as we’ll discuss below.

Benefits of Secure IoT

• Protect valuable data and intellectual property in the IoT network. IoT security will prevent hackers from tampering with AI, software, and logic systems in the IoT network.
• Enabling companies to market their product as a secure product, which can be a valuable competitive advantage not offered by competitors.
• Improve cost savings, efficiency, and productivity. Because we are sure the IoT network and devices can be fully trusted, we can use the IoT system to automate otherwise expensive operations and to make important decisions.
• By ensuring the IoT system is fully secure, we can present accurate and trusted usage data to potential partners and investors, opening doors to opportunities
• Enabling companies to chase more opportunities with new business models by ensuring the ability to generate reliable data and stable features.
• Establish trust, control, and integrity so companies can sell products to consumers while preventing fraud and securing payments.

What Needs To Be Secured in IoT?

Your IoT project relies on connectivity. However, the more devices connected to the network, and the more connectivity options for these devices to connect to each other, the more ways cybercriminals can intercept your connection.

IoT networks are complex by nature, and cybercriminals can intercept the network in a plethora of different ways.

To completely protect an IoT network, we have to consider protecting these different elements:

1. Device Access

Many IoT devices operate in uncontrolled and unsecured environments, and hackers can target these devices to upload malware, access certain features of the device that might be detrimental to the whole network, access unencrypted confidential data, and even turn this device into a part of a botnet.

2. Device Signature

Attackers can, for example, clone a device’s identity to infiltrate the network and access your data and even your whole system.

The device signature must be well-protected, unique, immutable, and completely unique. Without proper device identity management, we can’t implement IoT security on all the other aspects of the network.

3. Data

Pretty self-explanatory, IoT networks continuously transmit data, including sensitive and regulated data.

A core aspect of IoT security is to maintain security, privacy, and integrity of data in storage (stored in the IoT device, in the network server, the cloud, etc. ), and also during transit. Data security must be implemented throughout the entire IoT lifecycle across all devices and equipment.

4. Commands

“Commands” here refer to the instructions provided to the IoT devices (whether via machine-to-machine automation or human input) to activate features, order the device to perform certain functions, turn it on/off, and so on.

It’s crucial to make sure only authenticated people and/or systems (including AI) can provide commands to the IoT devices.

5. Software Decisions

IoT applications with automation involve algorithm-based or AI-based software decisions.

When hackers intercept and manipulate these decisions, they can potentially affect the whole IoT network.

To prevent this, all software decisions should only be executed in a secure environment with adequate protection measures to prevent interception and tampering.

6. Physical Actions

Many IoT implementations involve physical actions as the end product (i.e. unlocking a smart lock, stop/start a device, increase/decrease the temperature of HVAC equipment, etc.). When intercepted by hackers, these actions may not only compromise the system but may also affect the user’s safety.

It’s crucial to ensure that the devices and equipment can only trigger these actions when they receive authenticated commands.

Key Requirements of IoT Security

As we can see, IoT security can be a very broad and complex process involving many different layers of protection.

So, how can we determine an IoT system as “secure”?

Here are the key requirements of a secure IoT system as the basis of any IoT security effort:

1. Security Compliance By Design

Before anything else, it’s crucial for all IoT devices, infrastructure (servers, routers, etc.), and software connected to the IoT network must be engineered with attention to potential cybersecurity threats.

If any hardware or software solution isn’t secure by design, we should not incorporate it into an IoT network, since even one vulnerability can potentially expose the whole system.

2. Management

The first requirement deals with the human aspect of the IoT system.

Ideally, there should be a dedicated team responsible for managing IoT security alone, and at the very least there must be a designated executive responsible for securing the six different elements of IoT as discussed above. This person is responsible for securing all IoT devices and equipment that belong in the IoT system as well as the integrity and security of data (including and especially customer information).

3. Authentication and Authorization According to Purpose

The devices and software solutions must feature cryptography (authentication and authorization) functions according to industry standards and best practices.

Also, authentication and authorization should be managed properly to ensure access is only given to the right person and only when access is absolutely necessary for the person’s current task. When access is no longer necessary, authentication should be revoked as soon as possible to maximize IoT security.

4. Secure Applications and Network Framework

Another core aspect of IoT security is ensuring the right precautions and safety measures have been taken to secure all applications, web interfaces, server software, and other network elements. Measures should be taken to ensure data protection and privacy regulatory compliance.

If cloud network solutions are also used in the IoT system, then they also need to be properly secured.

5. Secure Device Production and Supply Chain

Even if the IoT device has been designed with security in mind, it’s crucial to make sure the actual product we’re going to incorporate into the IoT network is not compromised (security-wise) in the manufacturing process, delivery process, and/or installation.

A practical approach is to choose hardware and software solutions with good warranty policies. The products should be safe and secure out of the box for the end-users.

6. Easy and Safe Configuration

It’s crucial to ensure that the IoT product and equipment are easy to use and configure by the end-users. The configuration and control should help the user (and the manager of the IoT system) to maintain security.

The vendor of the product should provide regular software updates (especially security updates), a clear and easy-to-understand vulnerability disclosure policy, and life cycle management.

Why Security Compliance By Design Matters

Many companies and individuals deployed IoT devices in their networks that are not fundamentally secure by design.

While these devices can be made secure, for example by implementing authentication protocols and protecting them via additional security measures, the overall security would be limited.

In general, when an IoT device or software is not secure by design, you can only use traditional cybersecurity measures including network monitoring, managed security services, firewall, antivirus/anti-malware, and so on.

When a solution or product is already secure by design, the fundamental components of IoT security are already integrated from the start of the product development lifecycle. So, although the traditional cybersecurity methods above are certainly still beneficial, the device or software already has a stronger foundation not only in protecting the device from various cybersecurity threats but also in recovering from said attacks and data breaches.

IoT Security Principles and Best Practices

Now that we’ve understood the importance of IoT security and the different elements that must be secured, how can we actually implement IoT security?

Before we jump into various methods and techniques we can implement to improve IoT security, here are some of the most important best practices and principles to consider:

1. Audit your IoT devices

This one might seem obvious, but you’d be surprised how often this is neglected by many companies with IoT projects. It’s crucial to audit your IoT devices regularly and know exactly all the devices connected to the organization’s IoT network.

The thing is, the bigger your IoT network and the more devices you add, the more challenging this will be if you rely on manual audits. It’s best to establish a device/asset management and tracking solution as early as possible when starting your IoT project.

If your IoT project is already established, it’s not too late. Integrate a device management solution to your network as soon as possible.

2. List and understand your endpoints

Remember that each new endpoint introduced to the IoT network is a potential vulnerability, as they are a potential gateway for cybercriminals to access your IoT network.

Based on the device audit above, list the potential endpoints of the whole IoT network. Keep in mind that some devices might feature more than one endpoint, and different devices built by different manufacturers might behave differently.

You should identify and profile all endpoints and monitor them regularly.

3. Prioritize based on risk

While ideally, you should secure all endpoints in your IoT system at all times, with our limited resources sometimes this ideal situation can’t be achieved.

This is why prioritization is important. List all your assets and endpoints, and identify how critical they are to your IoT network. You should prioritize critical assets in your IoT network when implementing IoT security to ensure the reliability of operations.

4. Update everything ASAP

The general principle is to update everything as soon as updates are made available. This applies to both software and hardware solutions: applications, OSs, firmware, and so on. Especially when the update is a security patch, you should install it as soon as possible. Many successful data breaches are caused by seemingly simple cases of unpatched software, so don’t make the same mistake.

Schedule automatic updates whenever possible, and if not, make sure to check for updates regularly and apply these updates as soon as you can.

5. Pay attention to the physical aspect of IoT security

IoT networks also deal with the physical aspect of how the devices are deployed and connected to each other. And, there are security threats that are physical in nature like stolen devices, physical interception (i.e. hackers inserting a USB flash drive to your server), and so on.

It’s crucial to identify scenarios where securing the physical elements of your IoT network is necessary.

6. Use secure and unique passwords/credentials

While it might seem common sense, many professionals forgot to change the default passwords and credentials in IoT devices. When you only have one or two devices in the network, then this is a very easy thing to do. However, imagine having thousands of interconnected devices in the network.

Also, some devices from certain vendors might have default passwords that are difficult to change, so pay attention to the potential challenge.

Passwords should be complex and long enough to prevent brute force attacks, and ideally, they must be unique (one password per device). You can use a password manager tool and/or device management solution for this purpose.

7. Test everything regularly

Perform penetration testing regularly to check each device’s protection against incoming attacks, and evaluate all hardware and software solutions thoroughly before integrating them into the IoT network. Depending on the solution and/or the use case, you might also need to perform other tests to check for potential vulnerabilities.

Make sure to check all products and solutions thoroughly before adding them to your IoT network. Keep in mind that all these products can have potential vulnerabilities, and you need to identify them as soon as possible before your users can access them.

IoT Security Methods and Techniques

Below we will discuss some of the most prominent IoT security methods and techniques you can use to protect your IoT system and data:

1. Establishing Network Security

One of the most crucial steps in establishing IoT security is securing the network itself.

It’s important to remember that network security involves both software and hardware elements. Securing the software elements of the network include using antivirus/anti-malware, network firewalls, bot detection/management solution, blocking traffic based on signatures (i.e. IP addresses), and more.

On the other hand, securing hardware elements would include, but are not limited to disabling port forwarding, changing network equipment’s passwords and credentials, securing ports (not opening ports when not needed), and more.

It’s also crucial to ensure everything is up-to-date, including updating obsolete hardware that is no longer supported by its vendors.

2. Establishing Network Access Control (NAC) Solutions

An NAC software will allow IoT operators to accurately monitor the whole network’s visibility and enforce authorization policies to establish access management. Meaning, you can ensure only the right people have access to specific parts of the network.

The NAC solution would also prevent network access to devices that don’t belong to the IoT network and/or non-compliant devices. This is very important in preventing insecure devices and software/bots from infecting the whole IoT network.

3. Ensuring API security

Many IoT deployments rely on APIs and/or websites using APIs. When these APIs are vulnerable, cybercriminals can use them as an entry point to access your whole system. Use this API security checklist to assess whether your APIs are already secure.

4. Establishing Public Key Infrastructure (PKI)

Establishing PKI is very important in securing multiple client-server connections in an IoT deployment with numerous interconnected devices.

The basic idea is to establish end-to-end encryption (and facilitate secure decryption) of data transmissions between devices, especially for devices that transmit confidential and/or sensitive information.

In IoT projects that involve user inputs to websites (or web apps), for example in IoT projects with eCommerce functions, PKI is crucial.

5. Network segmentation

Some IoT devices and equipment are required to connect directly to the internet (not through an IoT management solution), and in such cases, it’s best to segment these devices into a separate network with limited/restricted access to the rest of the IoT network.

This allows us to better monitor this network segment to detect malicious activity and will prevent these issues from affecting the main network.

6. Employee Training

A crucial aspect of IoT security is “securing” the element of human resources.

For many people, IoT operations and security are new concepts, so it’s important to train your workers about the best practices in using the IoT devices and the IoT network as a whole to ensure secure use.

Security staff must also be trained on how to properly secure all potential access points. This may include introducing them to brand-new infrastructures and security challenges. Training should be conducted regularly to keep your team up-to-date on the latest threats and IoT security techniques/measures.

7. Consumer Education

If you are going to sell IoT products to consumers, you should properly communicate the potential hazards related to IoT and specific to the IoT product.

Provide consumers with clear documentation and exact steps to stay secure, including applying software updates as soon as possible and updating default passwords with strong and unique ones.

Educate consumers to only use IoT products that meet adequate security standards.

IoT Security Checklist

When establishing IoT security, it’s crucial to maintain a proactive stance: acknowledging the fact that the IoT network and all the elements within are always under threat.

It’s crucial to proactively consider the potential security risks introduced by each element in the IoT network and establish security measures accordingly.

You can use the following IoT security checklist for this purpose:

• Update all default credentials. If any device/equipment requires different local and remote passwords, update both. Make sure to use strong and long enough passwords, and make sure all passwords are unique.
  • Check whether the product has hard-coded passwords. Avoid using them
  • Use two-factor authentication when possible.
• Implement authentications and permissions for devices and all elements in the network.
  • Only give authorizations when absolutely necessary
• Identify and carefully review security characteristics and privacy policies of apps and back-end services of each device/equipment. Avoid using any hardware that uses services with low security and privacy measures.
• Keep software and firmware up-to-date as soon as updates are available
  • Avoid using products that no longer get updates from their vendors
  • Closely monitor the lifecycle of hardware and software products so they can be removed when they are no longer updatable (no longer supported by vendors).
• Place IoT devices that connect directly to the internet on a separate network. We should be able to restrict monitoring traffic and prevent access to the main IoT network.
  • The network should be firewalled properly
  • The network must have established a monitoring system
  • Identify and profile traffic to identify anomalies
• Make sure the device/equipment is well protected physically so intruders can’t steal it or perform crucial intrusion (i.e. factory reset, hacking via hardware port, etc. )
• Turn off any features that are not needed in the IoT project. This may include microphones, cameras, or connectivity. Perform physical covering/blocking when necessary.
• Turn off automatic connections (i.e. via WiFi) to prevent device intrusion. Isolate the device if necessary if it only needs to connect to a specific router.
• Establish end-to-end encryption whenever possible.
  • Only use devices that support encryption
  • Establish VPN or other means to limit data exposure on devices that don’t support encryption

IoT Security Is a Necessity

All IoT projects and applications are always at risk from various security threats.

It’s crucial to use only devices, equipment, and software solutions that are designed for security from the ground up. Also, it’s important to establish a clear IoT security strategy as early as possible when planning your IoT project.

By using the IoT security checklist we’ve shared above, you can also ensure all elements and potential access points of the IoT system are closely monitored.

Identifying and protecting your IoT devices and network can save your time, resources, and confidential data in the long run. So, although IoT security can be challenging to implement at first, it will be worth it in the long run.

We can’t deny that the internet now plays a major part in our day-to-day lives as a whole: the banking system, government administration, schools, universities, eCommerce stores, and social media rely on the existence of the internet.

The advancements in internet technologies have grown faster and faster: many of what we’ve seen in sci-fi movies back in the 80s and 90s have now become a reality.

We now have smart cars that can drive themselves to their destinations without the help of any human driver, smart assistants like Alexa and Siri that can now only answer our questions but remind us of our meetings and even automate some tasks.

Many of these advanced technologies are part of what we call the Internet of Things, or IoT.

The term IoT has become somewhat of a buzzword in the past half-decade or so. Chances are unless you’ve been living under a rock, you’ve heard the term used in conversations at least once in these past few years.

Yet, what actually is the Internet of Things? How will it affect our day-to-day lives and our business? How should we take advantage of the IoT?

Have any of those questions and/or are currently interested to learn about IoT but don’t know where to start? You’ve come to the right place.

In this guide, we will discuss all you need to know about the Internet of Things, and by the end of this guide you’d have learned about:

• What actually is IoT?
• A brief history of IoT
• How does IoT work?
• Different elements of IoT
• Examples of IoT implementations in different industries

And more.

Without further ado, let us begin.

Internet of Things (IoT) refers to a concept where objects (things) can connect to the internet and to other devices so they can interact with each other without the help of traditional computers (those with a keyboard, mouse, and screen) and even without any human supervision.

As we know, traditionally only computers can connect to the internet, and over the years these computers have been made smaller and smaller so now we have smartphones and wearables (i.e. Apple Watches) that are technically computers. Yet, with IoT, things like thermostats, doorbells, locks, video cameras, and even cars can now connect to the internet so they can communicate and even control each other.

For example, a smart security camera equipped with a motion sensor can detect the presence of humans coming closer to the door. The camera will then capture the face of this visitor, recognizes it as the owner of the house, and sends information to a smart lock device installed on the door so it will unlock itself. All of this happens without a traditional computer (PC/laptop or even a smartphone) and automatically without the help of a human user.

This is a basic implementation of IoT, and there are many more, potentially on a much bigger scale.

IoT used to be just an idea, a concept, but with the wide availability of wireless connectivity (Wi-Fi, cellular 4G and now 5G, etc.), microelectromechanical systems (MEMS), and especially the adoption of faster internet bandwidth all over the world, IoT implementations and deployments have also advanced rapidly in recent years.

This is why tech giants like Google and Amazon are now heavily invested in their IoT products. In 2014, Google acquired Nest, a company specializing in smart thermostats, and now Google uses the Google Nest brand for its line of smart home products including smart speakers, smart displays, and more.

The actual idea of connected devices has been around for decades, at least since the 70s. Many sci-fi novels from the 70s and 80s have explored the idea of devices interconnectivity and “everywhere internet”, but it was not called the “Internet of Things” back then.

The actual term “Internet of Things”, on the other hand, was coined relatively recently back in 1999 by Kevin Ashton, then an assistant brand manager of Procter&Gamble. Ashton used the term “Internet of Things” as the title of his presentation about RFID, then a state-of-the-art technology and its potential implementation in P&G’s supply chain.

However, the IoT concept failed to get any traction throughout the 2000s, and it was only in the summer of 2010 that IoT started to gain some popularity.

Back then, it was leaked that Google’s StreetView service actually collects and stores a massive amount of data of the public’s WiFi networks, causing people to realize the possibility of Google not only crawling and indexing the internet but also the physical world, the things.

However, it was the famous market research company Gartner that revived the term “Internet of Things” in their 2011 edition of the annual Hype Cycle for Emerging Technologies report. The IoT trend snowballed, and popular tech media like Forbes, Wired, and Fast Company started using IoT as a buzzword, leading to today’s popularity.

In 2014 and 2015, IoT is no longer a mere concept nor a buzzword, but a day-to-day reality with a plethora of affordable smart devices (like Nest Thermostat), and today in 2021, there are more than 50 billion actively connected IoT devices, and the number is still expected to grow to more than 64 billion in 2025.

For many people, IoT might seem like a totally abstract concept that is difficult to comprehend. However, once you’ve got the hang of it, how IoT works is actually not rocket science.

At the core of the Internet of Things is the interaction between machines, hence the term “M2M “ or “Machine to Machine”. Programming codes allow two connected devices to interact with each other, command and control one another, and work together to perform a task without any human supervision. Depending on the network connectivity, two devices can be separated halfway across the world and still communicate and control each other (i.e. via cellular connectivity).

As you can see, these two devices (or, two things), can connect and interact with each other with just the internet. Human operators in an IoT implementation will only need to supervise and perform minimal control over the IoT system, and these machines will work on their own.

In short, one of the key purposes of IoT is to implement automation, although IoT is not only about automation.

In practice, an IoT system has five interconnected elements:

1. Sensors

A sensor (or a group of sensors/devices) collects data from the environment.

Think of these sensors as the IoT system’s “eye” that connects the system to the physical world. There are different types of sensors for different types of data: thermostats for temperature reading, cameras for video feed, motion sensors for vibration/motion, and so on.

There are also sensors that are a part of a device. Our smartphone, for example, is actually a device with multiple sensors in it: a camera, GPS, gyroscope, and so on.

Nevertheless, the first step of how an IoT system works is by collecting data as an input, and this is only made possible with these sensors.

2. Connectivity technology

Connectivity technology is arguably the most important element of any IoT system. Connectivity technologies like Wi-Fi, cellular connectivity, Zigbee, and so on, facilitate the devices’ and sensors’ connection to the internet (the cloud).

Without internet connectivity, there’s obviously no IoT.

Why are there so many different connectivity technologies available? Simply put, at the moment we don’t have a one-size-fits-all, perfect connectivity solution that:

1. Consumes as little energy as possible
2. Has unlimited data rate/bandwidth, can send an unlimited amount of data instantly
3. Can connect two different devices separated halfway across the world (global coverage)

Such technology doesn’t exist, at least at the moment, and so all the connectivity options we have today always have tradeoffs between these three technical requirements: energy consumption, bandwidth, and coverage range.

It’s crucial to choose the right connectivity solution based on the project’s needs by considering which of these tradeoffs is not crucial to the specific IoT project.

3. Data Processing/Management Software

With the help of the connectivity solution, the sensor successfully transferred data to the cloud, which is then processed by the IoT software.

The software can be relatively simple, for example, ordering a smart lock to unlock the door, or it can also be quite complex, like analyzing the person captured in a video feed whether they are an intruder.

Depending on the IoT application, the software may or may not make decisions on its own. For example, if the temperature caught by a thermostat is too low, the software (with the help of simple AI) can order the HVAC device to increase its temperature output.

Alternatively, the software may only provide information to a human user via some form of user interface (more in this below), and it’s the human operator who must make the decision.

4. User Interface

Even if the IoT system is fully automated, the system must also be able to provide information to the human user in one way or another. This can be as simple as a text notification to the user’s smartphone, an email, or a dedicated user interface (i.e. an app).

As discussed, depending on the IoT application, the user may also be able to control the system via this user interface, like manually turning on/off the light in a smart home.

5. IoT Device

These devices will produce the “output” of the IoT system.

For example, a thermostat acts as the sensor in an HVAC IoT system, which will feed data to an HVAC control system (software and user interface) via Wi-Fi. Then, the HVAC control system will send a command to a bedroom AC unit to lower its temperature.

The AC unit here is the IoT device.

With the advancements in technology, virtually all devices we can think of now can be the output in an IoT system: smartphones, speakers, lighting, printer, and even vehicles.

As discussed, the IoT output device might be controlled by human intervention (via user interface/software) but advanced IoT systems can perform the actions automatically. For example, a smart doorbell or security camera can automatically notify 911 or relevant authorities in your area when it detected intruders.

Why IoT Is Important: The Benefits of IoT

Now that we’ve understood how IoT words and some examples of IoT implementations, why is IoT important, after all?

The Internet of Things offers numerous benefits for both individuals and organizations. Some of these benefits are universal and applicable across multiple industries, but some are industry-specific.

In general, IoT offers two main benefits or features:

• Connectivity: improved communications and collaborations within devices, potentially on a global scale. This allows organizations easier access to information, as well as the ability to control remotely deployed devices.

• Automation: by allowing devices and sensors to communicate with each other, we can allow them to control each other without any human supervision and interference.

These two benefits, in turn, will produce these other positive effects:

• Improved productivity and efficiency

IoT implementations allow us to automate simple but repetitive tasks, freeing our human workers’ valuable time from repetitive administrative tasks that can otherwise be used to perform tasks within their core competencies. This will allow each staff and employee to be more productive and efficient in contributing to the organization’s goals.

• More efficient use of resources and assets

For example, advanced IoT sensors can help monitor whether resources are used efficiently, and IoT systems can also automate lighting and HVAC systems, among others, to conserve energy. By installing a simple motion detector, for example, we can automatically turn off the light and air conditioning of a room when it’s not occupied, which in the long run can save the company a significant amount of money in electricity and utility bills.

• Improved transparency and accountability

By enabling improved monitoring and automated scheduling, we can improve transparency and accountability of the whole business process.

For example, we can monitor the location and activities of employees during the workday, as well as installing RFID tags or other sensors to track the location of goods and equipment. This allows the organization to have more control over multiple operation areas, which in turn, can help improve the organization’s productivity.

• Improved work safety

With IoT, we can automate dangerous tasks, reducing or even eliminating risks of workplace hazards. We can also automate scheduled maintenance to ensure equipment stays at its optimal (and safe) performance and stays compliant with the required regulations.

Also, smart IoT security systems utilizing smart cameras, alarms, motion detectors, and other security devices can also significantly improve the organization’s security.

Improved work safety will also make the organization more attractive not only for your employees but also for investors and partners.

• More access to customer data

One of the key aspects of successful marketing and business development is the availability of customer data, and IoT has allowed more consumers to adopt smart IoT devices including smart cameras, smart speakers (like Alexa or Google Home), smart doorbells, and even their own smartphones. These devices can collect more customer data like behaviors, demographics, psychographics, and others that can help organizations in developing marketing and business development strategies.

This way, organizations can also better understand the behaviors and expectations of their ideal audience, allowing them to improve customer service quality and maximize retention. Automation using IoT solutions can also help companies provide better customer service.

• More credibility and opportunities

An organization that implements state-of-the-art IoT solutions will leave more positive impressions on customers, partners, and investors alike. A tech-savvy company will also have an easier time attracting skilled and experienced talents who will prefer a safe, secure, and efficient working environment.

Due to the increased productivity and effectiveness, the organization with IoT deployments can also improve the quality of their products/services while maintaining a competitive price, or offer a wider range of products and services to pursue more opportunities.

With IoT implementations, the organization can be more efficient in executing tasks, both in terms of quantity and quality (difficulty). By being more productive, the organization can also establish more credibility with its partners, clients, and investors.

IoT Implementations Across Different Sectors

With more than 50 billion IoT devices all around the world in 2020, IoT systems are now widely implemented across many different industries. Here are some important examples:

Wearable Technologies

One of the key implementations of IoT across many industries is wearable technology.

Today, wearable devices like smartwatches are used widely for various applications like monitoring the health and fitness of consumers, for example by monitoring heart rate, oxygen saturation, glucose levels, and so on.

In various industries, wearables are also used to improve workplace safety and security, for example, monitoring worker’s location and physical conditions. Wearable devices can also be applied to improve organizational efficiency.

Smart Home Application

A popular and important implementation of IoT is the smart home, which is an umbrella term used to describe how IoT-enabled home appliances are connected to the home’s internet to connect with each other, communicate, and automate tasks.

For example, the smart home can automatically dim or turn off lighting depending on the conditions picked up by the sensors and can adjust HVAC equipment’s temperatures accordingly.

Agriculture

There is a wide range of IoT implementations in the agriculture sector. IoT sensors can collect various useful information from temperatures, weather, humidity, wind speed, soil composition, and more. This information can then be used to automate farming tasks and can help human workers in making better decisions to improve yield and quality of harvests, minimizing hazards, and reducing waste.

For example, farmers or workers can now monitor temperature and humidity remotely, as well as automating watering and fertilizing to ensure precision and efficiency.

Healthcare

IoT is also widely implemented in the healthcare industry and is actually among the fastest-growing sectors regarding IoT implementations. IoT wearables, for example, can allow hospitals and medical professionals to monitor patients’ heart rate, glucose level, temperature, and other information while the patients stay at home.

In hospitals, various IoT equipment has also been adopted, like smart hospital beds that can automatically alert nearby nurses/doctors when the patient wanted to get up from the bed.

The possibility for IoT implementations in the healthcare industry is virtually limitless, and in the near future, we’ll see even more IoT devices and technologies in hospitals, as well as in patients’ homes.

Industrial Automation

With IoT, an organization can implement various sensors to monitor and automate various tasks in the factory. Sensors can help monitor fuel levels in machines, as well as notifying operators when components need replacing.

IoT enables factories to monitor, optimize, and optimize processes closely, which in turn, can improve efficiency and customer satisfaction.

Various IoT implementations can also help factories and companies to conserve energy. A wide variety of electrical equipment like switches, power outlets, lighting, and so on can now be integrated into the internet, allowing us to implement automation to conserve energy.

Transportation

IoT applications can help improve transportation systems in various different areas: communications, integrations, control, information processing, and others.

Smart vehicles and even fully automated vehicles are now a reality, which is made possible by IoT. IoT systems allow real-time communications between a vehicle and its control system, as well as between different vehicles. GPS systems can allow vehicles to perform automated parking, and even driving themselves to their destination.

IoT implementations to improve driving safety and convenience are now also common in more affordable consumer vehicles.

Challenges and Drawbacks of IoT Implementations

As beneficial as IoT is, it is not yet perfectly implemented at the moment. There are still some challenges and concerns in implementing an IoT system of any kind and size, and there are also some potential threats that should be considered.

Here are some key concerns to consider when planning an IoT project:

1. Data Security

Since at the core of IoT is the transmission of data to the cloud, data security is always a major concern in any IoT implementation. Your IoT devices may transmit confidential/sensitive data that might be intercepted by hackers and cybercriminals, which can lead to drastic repercussions.

Even worse, many IoT sensors and devices are not equipped with adequate security measures unlike traditional computers and even smartphones. This is why more and more cybercriminals are now actively targeting these vulnerable IoT devices.

When planning any IoT project, data security infrastructure and best practices should be considered, and failure to do so may lead to long-term and even permanent damages not only financially, but also for the company’s reputation.

IoT implementations should be performed by experienced professionals that understood the importance of data encryptions and other best practices and technologies to prevent data breaches.

1. Connectivity Issue

All IoT projects would rely on a reliable connectivity solution that is capable of facilitating the project’s connectivity needs. It’s crucial to choose the right IoT connectivity solution based on the project’s requirements regarding coverage area, bandwidth, and energy consumption.

Also, IoT projects require a connectivity solution that can ensure uninterrupted data transmission to ensure reliability, so it’s crucial to partner with the right connectivity solution vendor, as well as preparing the necessary networking equipment like routers, hubs, cables, and so on.

Preparing a backup solution is also preferred to ensure redundancy, as well as preparing local data storage for backup means.

1. Skill Requirement

IoT solutions and systems are still relatively new and can involve complex interconnected devices that will otherwise need the supervision of experienced and reliable professionals who know what they are doing. These professionals capable of deploying, setting up, managing, and operating your IoT system can be very hard to find and recruit, and even then, expect to pay a high labor cost.

While IoT as a whole may facilitate automation and reduce labor costs, you’ll still need the remaining staff to be well-trained and capable of making the most of the IoT implementations, or else it will beat the purpose.

1. Energy Consumption

As with any technology, IoT relies on energy. However, in an IoT system that involves numerous connected devices, energy consumption can be an even more challenging issue. Different, remotely deployed IoT devices and sensors might require their own power supply units and/or batteries, and managing the logistics can be a major challenge.

It’s crucial to remember that these IoT devices also require a stable supply of energy, so it’s crucial to ensure a well-planned energy infrastructure. This may include investments in equipment like surge protectors and UPS devices, among others.

1. Integration and Compatibility Issues

Since IoT is, again, fairly young, at the moment we do not have an international standard of compatibility for IoT devices and systems. It has improved in recent years with various companies working on standardized protocols and frameworks. However, there’s still the possibility of devices from different manufactures failing to communicate and integrate with each other.

1. Cost

IoT implementations can be expensive, especially if the project involves a massive number of smart devices/sensors and require advanced technical infrastructure including data security measures, power supply infrastructure, and connectivity infrastructure.

Besides the potentially high initial investment, operating and maintaining an ongoing IoT system may also involve significant operational costs. Although IoT solutions, as discussed, can provide numerous benefits, it’s crucial to ensure the financial feasibility that the benefits do exceed the initial investments and operational expenses of the IoT project.

Closing Thoughts

Why is IoT now such a big deal across many different industries? Simply put, the benefits provided by an IoT system far outweigh the drawbacks and costs. Arguably IoT has become one of, if not the most important technologies in the past decade and also the years to come, enabling us to connect numerous things from home appliances to industrial machines to vehicles, enabling real-time connectivity and automation.

IoT enables both individuals and businesses to survive and thrive in the more competitive and demanding future by providing efficiency and productivity to ensure competitive advantage.