SECURING THE INTERNET OF THINGS:

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1 SECURING THE INTERNET OF THINGS: The conversation you need to have with your CEO Sponsored by

2 SECURING THE INTERNET OF THINGS The internet of things (IoT) is the ultimate form of technology disruption threatening to upend industries from door locks to automobiles. Companies are presented with opportunities valued at over $28 trillion 1 no wonder more than two-thirds of companies are committed to ramping up their IoT businesses 2. But are cyber-security defences keeping pace? Are enterprises and their customers being put at risk? The following discussion, sponsored by Hewlett Packard Enterprise, presents six action steps that can be taken by companies to secure their IoT businesses and that CIOs should be discussing with the CEOs now.

3 THE IOT WHY CYBERSECURITY IS SO IMPORTANT Just as the IoT presents massive opportunity, so it presents escalated risk. The quantum increase in sensors expands the attack vectors for cyber-criminals. Many IoT sensors cannot support sophisticated security. Regulatory and legal risk are escalating. At the same time, the criminals are becoming more numerous and better funded. Once deployed, it will be very challenging to retrofit security onto IoT networks. The concerned CIO needs to begin baking security in now and the first step will be an IoT security strategy backed by the CEO.

4 IOT SECURITY STRATEGY STEP 1: Adopt a comprehensive framework and strategy for digital security Reactive, stand-alone perimeter defences won t work in this world of escalating cyber-threat. Firms need a proactive, enterprisewide strategy for securing the IoT. The strategy needs to secure the hardware, protect the network communications and engage the workforce. This strategy will require the active support of the CEO and board to succeed.

5 Companies need to conduct a full security audit that assesses the complete IoT deployment being proposed. This not only includes IoT devices, but also the network infrastructure and all mobile, web and cloud touchpoints. Risk should be identified by regulatory, legal, operational and brand exposure. IOT SECURITY STRATEGY STEP 2: Conduct a full audit of current and likely risks within IoT initiatives

6 IOT SECURITY STRATEGY STEP 3: Bake security into devices and processes early Many companies have IoT products in development that are simply not meeting security standards. At best, it will be challenging to secure them after deployment. At worst, this exposes the firm to serious cyber-attacks. Security needs to be instilled into these projects now.

7 IOT SECURITY STRATEGY STEP 4: Mobilise the larger workforce to support IoT security The IoT is not just another IT project. It extends sophisticated technology deep into product design, the supply chain, customer relationships and other non-it parts of the organisation. The employees of these functions will need to be part of the enterprise effort to keep it secure.

8 In an IoT environment, security will only be as good as its weakest connection. Firms need to ensure that partners customers, suppliers and others adhere to standards of security that are as rigorous as their own. IOT SECURITY STRATEGY STEP 5: Bring partners up to rigorous security standards

9 IOT SECURITY STRATEGY STEP 6: Rethink the role of IT The IoT will cause the IT department to change the role of IT from a service provider to that of a valued partner in virtually every part of the business. This will demand new organisation, skills and lines of authority. Just as the IoT will change the business, so it will change IT.

10 The internet of things may be the greatest technology disruptor of all. The opportunities are so great that companies have no choice but to participate. But in doing so, enterprises will have to take clear, strategic steps to make it secure for customers, operations and the enterprise. These are recommendations for securing the future in the internet of things. This is one of a series of Economist Intelligence Unit discussions, sponsored by Hewlett Packard Enterprise, on the digital transformation journey. For in-depth analyses of digital disruption, securing the internet of things and managing legacy technology, please click on these links. 1 IDC, Worldwide and Regional IoT Forecast, Economist Intelligence Unit, Future-proofing the internet of things, 2016

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