adoption of the IoT, as it helps address critical factors such as confidentiality, connectivity performance, cybersecurity, installation, interoperability, privacy and technology performance,” said McKinsey’s IoT experts. Among the areas of integration, cybersecurity stands alone as the biggest challenge for adopters and arguably one of the biggest early opportunities for the value chain. Survey respondents across all industries cite cybersecurity deficiencies as a major impediment to IoT adoption, showed McKinsey data. Roughly 30 percent of respondents name cybersecurity risk as their top concern. Of these respondents, 40 percent indicate that they would increase their IoT budget and deployment by 25 percent or more if cybersecurity concerns were resolved. Compared to enterprise IT, solution design in the IoT space lags behind in terms of security assurance, testing and verification, said McKinsey. This despite the possibility that risk profiles of many IoT systems are elevated compared with that of enterprise IT, given IoT’s control over physical operations. “Cybersecurity risk multiplies due to the interconnectedness of IT and operational technology within the IoT, especially in use cases that involve the transmission of critical data or the operation of critical business processes,” said the research firm. Incidentally, IoT application software and human-machine interfaces are the most vulnerable layers of the IoT stack, McKinsey found. Up until now, achieving a trusted level of IoT cybersecurity has been difficult, IoT buyers tell McKinsey. There is little multilayered security embedded in today’s IoT solution designs, leading to vulnerabilities that require regular over-the-air updates and patches, which can be difficult to implement. Most providers in the space have tended to treat cybersecurity as a separate software category, providing bolt-on solutions rather than making security a core, integral part of the IoT design process. In turn, IoT buyers are taking on an enormous responsibility of protecting the IoT value chain, argue McKinsey analysts. “They typically do so by partnering with cybersecurity vendors to provide add-on solutions. These MOBILE & WIRELESS An Issue of Trust Cybersecurity factors such as digital trust and privacy weigh much more into enterprise purchase decisions for IoT platforms than IoT providers realize. Among IoT buyers surveyed recently by 451 Research/S&P Global, 61 percent rank digital trust as a critical element of their purchase decision, while only 31 percent of IoT providers rank it as a critical element in their system design. Likewise for privacy, 61 percent of IoT buyers deem it critical, compared with 47 percent of providers. Researchers at 451 believe this discrepancy is hampering adoption. Source: 451 Research; S&P Global Market Intelligence Source: 451 Research; S&P Global Market Intelligence IoT Sentiments, % of Respondents we use the application We lack the developer headcount/skills to build our own applications 30% 25% Source: IDC Worldwide IoT Spending Guide, 2023 forecast Top IoT Industries Based on Market Share 37.9% 9.4% 10.0% 21.2% 13.3% 8.1% Discrete Manufacturing Retail Others Process Manufacturing Professional Services Utilities Providers Buyers Providers Buyers Providers Buyers 31 61 47 61 81 42 34 4 45 9 38 1 57 12 Importance of digital trust in loT systems Importance of privacy in loT systems Siloed loT cybersecurity decision making leads to delayed loT adoption. % of respondents agreeing Critical Important Not considered Critical Important Not considered 36 CHANNELVISION | SEPTEMBER - OCTOBER 2023
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