TORONTO – While most consumers believe that Internet of Things (IoT) services will deliver significant value for them, very few understand – or trust – how their IoT data is being managed and used, says a new report from Cisco.
The company’s first IoT Value/Trust Paradox report is based on a survey of 3000 consumers (including respondents from Canada) and was designed to provide businesses with actionable insights on how to increase consumer confidence in and adoption of IoT services.
Despite their lack of trust in IoT data security, consumers on the whole say that they are unwilling to disconnect from IoT services, even temporarily, indicating that the point of no return at which consumers irrevocably commit to IoT being an integral part of their lives is quickly approaching. IoT is becoming so deeply integrated into consumers’ daily experiences that it is easier to tolerate uncertainty and risk than to disconnect, adds the report.
While the survey reveals that consumers are willing to accept risk and trade off value for trust, they do so reluctantly. Their desire for transparency and visibility into how their data is being used remains strong. Companies that can resolve the paradox for their customers have the opportunity to accelerate and sustain the growth of their IoT businesses.
The report recommends that businesses use these insights and implement the following steps to address the gap between value and trust in IoT:
– Establish a clear, concise data policy and share that with your users: Companies must be able to provide transparency into how they are using and securing data and how this helps to improve their customers’ experiences.
– Take granular control of your data: To increase transparency around IoT data governance and management, companies first need an IoT platform that can help determine who gets what data, where and when.
– Create accountability throughout your IoT value chain: Companies must evaluate all the providers in their IoT value chain and put IoT solutions in place to enforce minimum security standards and requirements so they can hold each provider accountable.
“As more companies build their businesses around IoT services, they need to first understand the importance of educating customers on how they are using their data to deliver new, valuable services that will enhance their lives,” said Cisco’s head of IoT strategy Macario Namie, in the report’s news release. “Consumers are asking for more visibility into IoT data practices, and to increase transparency around your IoT data governance and management, you first need to be able to determine who gets what data, where and when. Today’s IoT platforms solve for this problem and can give you the ability to enhance consumer confidence and trust, which can lead to greater adoption of your IoT services.”
