The perfect role for operators in IoT?

July 17, 2016

goldThe telecom industry got a head start in the early days of IoT aka M2M. Ericsson took the lead with the 50B connected devices mantra which translated well into an obvious role for huge operators with millions of connected users and massive investments in wireless networks. And it went without saying that the obvious providers of technology and solutions would be the telecom vendors already in the family. This was a clever and well executed plan by primarily Ericsson since the operators were looking for the next massive growth opportunity after having connected most people and given them data buckets. Operators went for it with one primary caveat – we will not only provide connectivity.

Now, only few years later IoT has gone from a connectivity focused baby to a data centric young adult. IoT is only a new phase of Internet – we’re adding things to people and businesses already connected – which explains the speed of development. From a usage point of view, Internet including IoT and the enabled services and solutions will remain customer focused and very fragmented and the operators will continue working hard to figure out their role beyond connectivity.

Here’s what I would do. The two major challenges for IoT are security and privacy. The smaller one is security since we are used to repair and plug holes as we go, and since we tend to have a very short memory. But privacy is really challenging since nobody knows how the requirements will develop over time. When your data is out you can never get it back why any service will need a solid privacy architecture to cope with future requirements without having to rebuild from scratch. The user must own his or her data and decide who should get hold of it.

But privacy is not only a technical issue why we need trusted partners to help us manage our data. Today most of us trust serious banks to manage our financial data as an example. Our trusted partner needs big muscles to force and enforce proper agreements and obviously have to walk the talk themselves. Operators already manage a lot of our private data and provided they do that well, this is a great position to build the trusted partner role on. The trusted partner role can also be required to build and orchestrate a fair and robust sub-eco system in a specific market like smart homes or connected cars.

So why is privacy of importance anyway? Today most users of internet applications sign up without even reading the agreements. One often hear “I’ve nothing to hide” as the key argument to avoid the hassles of reading and thinking. But with today’s capabilities in data analytics, all digital traces and information we leave behind can quite easily be used to picture an individual, understand how a product is designed, see patterns, understand security procedures and arrangements and so on. In the wrong hands this can be really bad and this type of information is already very useful for burglars to know when people are away and industrial espionage for example. A small example of what could, technically, be in use today is recruiters knowing without asking that a female candidate is pregnant, don’t exercise or have a heart problem.

I am absolutely convinced neither consumers nor policymakers will let this development continue as today. And this is where I believe operators with a relevant brand can find their role in IoT beyond connectivity. A role which will be increasingly important and valuable as far out as I can see. Two good examples of operators I see moving in this direction today are Telefonica and Telia Company (see FAQ 6 and 7).

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Trusted partners are key to IoT

February 7, 2016

trusted partnerIoT will make major impact on how we do things and what can be done, across industries and borders. Adding things to the Internet creates a massive opportunity in pair with what Internet have done to us to date. The major challenges are as always to be found in organisations and processes, rarely in the technology as such. However, if we cut the cake differently, and look at it from people making bets on creating and implementing IoT products and services, I would argue that the two biggest challenges are security and privacy. And security is the smaller of these two big ones! We have always had security challenges, but they can be mitigated and fixed on the go. Fixing bugs and problems are part of the development so to speak. If someone finds a back-door and steal our jewels, we will install a lock on the door and hope people will forget it, if you see what I mean. The vendor of the door takes a hit but people have a tendency to forget quite rapidly.

But with privacy it’s a matter of architecture and trusted partners. If data that at some point in the future is considered sensitive is “out there”, it’s too late to take it back. In the digital world nobody knows how many copies there are, who has them, what they use it for, and so on. Most countries have laws and policies for this already, sure, but the first issue is that policymakers probably will shape up rules and policies down the road. Nobody will be badly punished for data that is made available before the changes, obviously, but it might take fundamental changes of systems and services to meet the new policies if the architecture isn’t there already. The second, and much more difficult challenge is that people themselves might change their views over time on what is acceptable and not. Such changed requirements are neither planned nor managed within countries or companies. They might come and go, spread across by social media and gather less or many people behind. And policy makers are always influenced by public trends, media etc. so these “unmanaged public policies” can force rapid legal changes as well.

If your clients suddenly believe that the data they “produce” in their homes or when they shop belongs to them, it will be hard to keep them happy if you don’t let them control it. And even more so if you sell the data to third parties. And to let users be in control of their data requires an architecture supporting that – it’s not something hard to add on the go.

I believe connected cars, homes, cities, cloths, pets, shops, bikes, gardens, etc. sooner or later will meet privacy requirements from policymakers and people that will be necessary to meet and very challenging for those without an architecture to supporting. The role of a trusted partner will be absolutely key and for those being trusted it will be a fantastic foundation for creating brand value and profitable business. The jury is out who can take this important and valuable role. I believe it is a national player and I put my bet on a responsible mobile operator with a solid brand.

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