Understanding how IoT security affects data monetization is crucial for businesses to effectively trade intel without the risk of online threats. Today, almost every business shares important data, but not all businesses attempt to generate revenue from the shared information.
According to McKinsey & Co., high-performing companies that wish to grow tend to adopt data monetization as an essential part of their business strategy. In addition to increased revenue, companies also share their data in an attempt to develop new partnerships and get better supplier agreements at a reduced cost.
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Data monetization has numerous benefits, but for it to thrive, it must be secure. IoT security deals with protecting connected internet devices and networks from threats by identifying and dealing with possible risks and vulnerabilities found.
Though IoT security has a lot of positives, we can’t ignore the negative aspects of this framework. This recent article about how IoT security impacts PCI compliance explores some vulnerabilities that exist with IoT security.
Yes, it’s no news that IoT security will undoubtedly have adverse effects on data monetization, but first, we will begin with the positive aspects.
What Are Some Benefits of IoT Security as It Relates to Data Monetization?
In business, manufacturers naturally prefer IoT secure devices because they can quietly find out how consumers utilize their products. Vital client intel can help business owners alter their products in the future, thereby leading to customer retention and increased profits.
Aside from securely gathering data, below are some other significant benefits of IoT security for data monetization:
1. Using secure IoT devices can significantly improve the productivity and efficiency of business operations.
Any modern business that wishes to remain relevant in the years to come has to embrace innovation. When IoT devices are secure, manufacturers who sell them allow consumers to access online information conveniently.
2. Organizations can develop new business models and multiple revenue streams because they can securely research consumer preferences.
One of the best ways to monetize data is by gathering valid client data and transforming it into a practical business plan. Customer feedback provides HR managers with the necessary information to make positive changes to business operations. Informed decisions made in the interest of the business lead to customer satisfaction and increased profit.
3. IoT security easily connects the physical business world to the online world, which is an excellent way to save time and add value.
Our present world is primarily digital, and many people prefer the idea of doing everything from an electronic device. The introduction of online shopping, websites, social media pages, and e-commerce stores makes it possible to learn about a business’s product or service conveniently. Despite how great that sounds, convenience also comes with some risks.
Peter Milley’s paper “Privacy and the Internet of Things,” highlights the following risks associated with IoT devices and privacy:
- Companies under pressure to manufacture digital products do not have sufficient knowledge of software development. Lack of knowledge in delicate areas may lead to the creation of less durable products.
- To simplify the manufacturing process, appliance manufacturers may bypass necessary protocol and disregard security to provide support personnel, passwords, and encryption keys.
- Manufacturers of IoT devices rarely consider the need for regular product maintenance. They would rather depend on the end-user’s ability to make security changes to their products.
What Are Some Risks of IoT Security as It Relates to Data Monetization?
1. Data corruptibility
Data is necessary for data monetization and IoT operations to take place. Based on that context, if confidential data is not protected through encryption, it is pretty easy for such data to be manipulated. Not everyone is careful with their data, and this is something IoT security can’t fully control. Unless a business takes the pains to educate customers on data encryption, many individuals may have their data breached. Data corruption, in turn, would affect a business trying to gather helpful client and supplier information for trading and development purposes.
2. The Usage of Multiple Devices
One aspect that threatens IoT security and data monetization is the usage of multiple devices. When businesses and individuals integrate new devices and systems, this gives rise to potential cyberattacks. Imagine someone had multiple devices, and the person could encrypt one or two of such devices. However, because personal data is left unprotected by other devices, they become exposed to potential threats.
3. The Simplicity of IoT Devices
IT and electronic industries do their best to design devices that are simple to use, encouraging consumers to purchase and use said products. Unfortunately, creating simplified products means that manufacturers may cut corners and omit security features that clients deem “unhandy.” From a company laptop at the reception desk to the ATM at a convenience store, these devices can pack tons of personal data. Insecure products are potential gateways for business and clients’ private data to become exposed to hackers, thereby affecting data monetization.
Some other risks associated with IoT security include:
- Access to personal data from disposed or old smart devices
- Malware production on an industrial scale
- Unsafe user interface
- Weak software updates and others
How Can You Protect Your IoT Devices’ Security?
The primary way to safeguard your IoT devices’ security is to choose a threat prevention network solution. It works by preventing communication between compromised devices and malicious servers, which guarantees that devices used within a company’s network will not endanger your business.
Modern businesses that intend to monetize data and maintain its relevance in the coming years must pay attention to the benefits and risks associated with IoT security. The IoT is constantly evolving, so in-depth research, regular checks, and device upgrades are crucial. It is safer to be in the know and implement provisions to prevent possible cyber threats that impede growth.