E-SKILLS
Internet of Things
(IoT)
2023
A REPORT BY
Ashleigh Brinkhuis
+27828743916
ashlbrin@student.arteveldehs.be
www.brinkhuisashleigh0.wixsite.com/
ashleigh-brinkhuis
Internet of Things (IA)
Choose five questions from the list provided about the impact of the
Internet of Things on daily lives and business operations. The questions
are answered using qualitative secondary sources.
Ashleigh Brinkhuis 202234037
5/26/23
E-Skills
1
Executive Summary
This report examined the role that the integration of Internet of Things (IoT) played in
everyday appliances and devices, the impact on the job market, sustainability, identified the
biggest risk associated with the IoT and which entities to best govern the IoT. The evidence
and sources sought were qualitative secondary research data. The sources had to be recent,
i.e., had to be dated after the 01/01/2022 and no sources dated prior to 2022. The trend of
artificial intelligence and the integration of IoT is fast-changing and is a hot topic in almost all
the industries operating. These findings indicated a need for stricter privacy policies for
smart toys, transparency on the type of data that will be collected and clear warnings for
users. Furthermore, combining home security and blockchain technology and ICS-using
industries must monitor network baselines, remote access, and asset discoveries. The results
also indicated that millions of jobs will be replaced by automation, but more jobs will be
created that require more specialised skills. IoT enhances sustainability with lower emissions
and better resource use, but also brings about its biggest risk of cybersecurity
threats. Finally, no single governing body oversees IoT, but governments, associations, and
organizations regulate its laws and practices.
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Table of Contents
Executive Summary .................................................................................................................................1
Introduction ...........................................................................................................................................3
Methodology ...........................................................................................................................................4
Results .....................................................................................................................................................5
Discussion ................................................................................................................................................6
Conclusion ............................................................................................................................................ 10
Bibliography ......................................................................................................................................... 11
3
Introduction
In 2022, it there are expected to be more than 43 billion devices connected to the Internet
by this year (Marr, 2022). The Internet of Things (IoT) is a system of interconnected data
processing devices, mechanical and digital machines, objects, animals, or people that are
tagged with unique identifiers (UIDs) and can transmit data over a network without requiring
human-to-human or human-to-computer interaction (Gillis, 2022). Kevien Ashton was the
first to devise the term Internet of Things in 1999 (Ashton, 2009) and was initially intended
to support RFID1 technology. However, nowadays, the IoT has surpassed beyond the vision
of its inventors and has become more widespread as a result of the new applications it is
opening up in many vital industries such as healthcare, smart transportation, public safety,
home automation, smart city, asset monitoring, industrial automation, and so forth. The
purpose of this report is to answer five critical questions regarding the IoT. The research
questions were selected by the author, in terms of which devices should not be connected,
implications on job losses and sustainability, risks associated and the governance of IoT. The
research methodology focuses on secondary desk research sources. This report has potential
limitations, including the stipulation that sources should be recent and must be dated later
than 01/01/2022.
1
Radio Frequency Identification
4
Methodology
The research of the report used a qualitative methodology approach when investigating
possible answers to the research questions selected. The report was conducted by analysing
secondary qualitative research data. The sources were obtained via Mediatheek, EBSCO host
and Google scholar respectively. This was the primary data collection method used. The
research method was chosen as it was cost-effective and timesaving. The author opted for
desk research as field research would pose the issue of natives of Belgium preferring Dutch
content and questionnaires and the author is not fluent in Dutch. The use of secondary
research sources and data improves the validity and credibility of the report as the research
sourced existing knowledge and other research papers that have been investigated. This also
allows the report to provide background information and historical context as the report did
not rely on collecting original, first-hand data.
5
Results
The report found that the devices that should not be connected to the IoT include that of
smart toy devices, home security systems, and industrial control systems. It was found that
any device that is connected to the internet holds the potential to be hacked or
compromised. It's important to consider the security risks before connecting any device,
particularly you children’s devices, to the IoT and take appropriate measures to secure them
and educate yourself on the privacy policies of the respective devices. When exploring the
potential impact IoT will have on the job market and the skillset required as robots are
becoming more intelligent, it was clear that the impact will be significant. The impact on the
job market was clear, both in terms of job losses and new job opportunities. It was
discovered that routine and manual jobs especially in factories will be affected the most
through automation, however, certain types of skills will shift as more specialised and
refined skills will be required to operate and continue developing the machines. The impact
IoT has on sustainability was identified as the reduction in greenhouse gas emissions,
improvement of resource efficiency, and the facilitation of circular economy practices. It was
found that the biggest risk associated with IoT remains that of cybersecurity threats. Finally,
the research found that currently no one entity or corporation governing the IoT, but
multiple stakeholders are developing regulations, standards, and best practices to ensure
the safe and effective integration of IoT in technology and various industries.
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Discussion
The first question investigated in this report was to identify which devices should not be
connected to the Internet of Things and why it should not be connected. Firstly, smart toys
have a variety of risks associated with them(Smart Decisions about Smart Toys, 2022). Smart
toys have high-tech features such as WiFi or Bluetooth connections, along with built-in
microphones, cameras and sensors, or the integration of artificial intelligence programs
(Smart Decisions about Smart Toys, 2022). This leaves your children vulnerable to hackers
potentially being able to spy on them. Some of these smart toys are able to collect data on
users, specifically children. These smart toys may collect your child’s location, voice
recordings, movements and so forth. This is demonstrated by the Fuzzible Friends Alexaconnected toy notes in its privacy policy that it can obtain transcripts of a child's interactions
if parents’ consent (Creativity, Inc., n.d.). This is further supported by a hacker attacking the
Enabot Ebo Air, in 2022, attacker could direct the robot, use the camera, record video, speak
through the microphone, and more (Laughlin, 2022). These sources clearly indicates that
smart toys should not be connected to the IoT, and if these devices are connected to the IoT
they should be vigorously tested before they are put on the market. These tests should be
performed to ensure that children’s smart toys should be cybersecure to cyberattacks and
any flaws in the software system should be rectified. Furthermore, parents should do their
due diligence and educate themselves on the toy’s features and abilities before purchasing
them and before consenting to their children’s data being collected. All this evidence
demonstrates the requirement for stricter privacy policies for smart toys, transparency on
the type of data that will be collected and clear warnings if these toys are connected to the
IoT. The evidence also makes a clear case why these smart toys should not be connected to
the IoT.
Then there are home security system devices that also pose a security and privacy threat for
users. It has been suggested that home security systems should not be connected to the IoT
or like smart toy devices should be cybersecure and have strict privacy policies. This is clear
from the evidence as when these systems are connected to the IoT it gives hackers potential
access to personal data, viewing live video transmissions and perhaps even enabling them to
control the system themselves. This is supported by a case, in 2020, an ADT customer
noticed an unknown email address connected to her home security account, this
unidentified person had access to a professionally monitored system that included cameras
and other devices in her home (Priest & Martin, 2023). The company conducted a formal
investigation that found that to a technician who had spied on hundreds of customers over a
period of four and a half years – observing them in their private lives, dressing themselves
and even engage in intimacy (Priest & Martin, 2023). This supports the argument by Albany
et al. (2022) that stated home security systems exposes users to various vulnerabilities that
can be exploited by hackers (Albany, Alsahafi, Alruwili, & Elkhediri, 2022). The sources goes
on to highlight the most users of these systems are uninformed regarding the necessary IoT
security infrastructure that would enable them to address and control the security and
privacy risks posed by the IoT and its integration in most daily devices such as home security
systems (Albany, Alsahafi, Alruwili, & Elkhediri, 2022). Therefore, it is evident that home
security devices should not be connected to the IoT, however, if they need to be connected
7
in smart houses or for high-tech security purpose, merging IoT devices with blockchain
technology systems is a possible solution (Al-Turkistani & AlSa'awi, 2020).
Finally, industrial control systems (ICS) should not be connected to the IoT because of the
potential of cyber-attacks. ICS assets are the digital devices used in industrial processes.
These include all the various components of critical infrastructure (power grid, water
treatment, etc.), manufacturing, and similar applications. The threat of cyberattacks is
demonstrated by the Colonial Pipeline ransomware attack in May 2021 (Kerner, 2022). It was
the largest publicly disclosed cyberattack against critical infrastructure in the United States
(Kerner, 2022). The hackers stole data, infected Colonial Pipeline's network IT with
ransomware, which negatively impacted a few computer systems, including the billing and
accounting systems (Kerner, 2022). The Colonial Pipeline hack affected many such systems,
for example, many airline companies experienced disruptions due to a shortage of jet fuel,
and people feared a gas shortage and the demand for gas increased with long lines at gas
stations in many states as a response. Therefore, it is evident that ICS should not be
connected to the IoT and when they are connected the industries should implement ICS
security best practices, such as, monitoring network baselines, secure remote access,
performing ICS asset discoveries, etc. (Chkadmin, 2022).
The second research question aimed to investigate the impact on jobs losses and skills as IoT
makes devices and robots more intelligent. The impact on job losses and skills are clearly
demonstrated by 2025, machines could displace about 85 million jobs - but create 97 million
new jobs that are "better adapted to the new division of labour between people, machines
and algorithms." (Kingson, 2023). This is further supported by evidence found by Forbes that
indicate that a significant number of 73 million jobs in the US
are at risk of being replaced by automation, however, the figures are more favourable for
selected countries such as Germany, due to the projected loss of merely 17 million jobs.
However, by comparison, China is expected to bear a greater burden, with a projected loss
of 236 million job losses (Vega, 2023). Further Vega (2023) also points out that as per the
automation projections for 2022, it was anticipated that the quantity of robots employed in
industrial settings will exceed 4 million, however, note that the Chinese market leads
in terms of robotic deliveries, surpassing that of both Europe and the United States (Vega,
2023). This is supported by a study conducted by Deloitte in 2022 that found that IoT will
necessitate a higher level of specialized skills amongst the workforce, particularly in the
areas of data analytics, software development, and cybersecurity. According to the findings
of the research, it is imperative for businesses to allocate resources towards the acquisition
of new expertise and refining skills among their employees to effectively respond to these
emerging demands (Moueddene, et al., 2022).
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The third research question set out to investigate the impact of IoT on sustainability. The IoT
could potentially impact sustainability, primarily in terms of reducing greenhouse gas
emissions and enhancing resource efficiency. The evidence conducted by the World
Economic Forum clearly shows that using digital technology in the
energy industry can help decrease greenhouse gases (GHG) by 8% by 2050.(George,
O’Regan, & Holst, 2023). This could be achieved by using less energy and waste in industries
like farming, transportation, and construction. The IoT can play a role in achieving almost all
the 17 goals of Sustainable Development Goals. This is supported by Vodafone UK and SES
Water are working together to create a system that uses technology to prevent water from
being wasted due to leaks (Agrawal, 2022). The source goes on to state that IoT-powered
smart technology is being used to make waste collection and management easier and more
efficient (Agrawal, 2022). This is further demonstrated by IoT can help us use
resources like water and electricity more efficiently by monitoring and controlling them in
real time (Patel, 2023). Finally, it was also found that IoT supports circular economy through
the integration of product-service systems where the manufacturer owns and recycles the
product (Rejeb, Suhaiza, Rejeb, Seuring, & Treiblmaier, 2022).
The fourth research question set out to investigate some of the biggest risk associated with
the IoT. It has been suggested that the biggest risk associated with IoT are cybersecurity
threats that can lead to data theft, financial losses, and even physical harm. The evidence
9
clearly indicates that according to Microsoft's Digital Defense Report 2022, IoT devices are a
key entry point for many attacks (Microsoft Digital Defense Report 2022, 2022). The vast
amounts of devices connected to the IoT offers a surface where hackers may leverage
inherent weak points within the IoT devices themselves to gain entry, leading to
the compromise of sensitive data or the disruption of vital infrastructure (MacBride, 2023).
This is further supported by the warning issued by the US Federal Bureau of Investigation
(FBI) on the increasing risk of ransomware attacks on IoT devices. The FBI emphasizes that
ransomware attacks targeting IoT devices can result in substantial disruptions and financial
harm to both individuals and enterprises. The source goes on to state further examples of
the attack on Ukraine’s power grid and the Port of London falling victim to a cyberattack as
well (MacBride, 2023).
The final research question set out to explore who can best govern the IoT. The data
suggests that given that the IoT comprises of complicated and fast-changing technology and
systems which at present does not have a single body or organization governing it. Although,
there are various stakeholders involved in regulating and governing the IoT, such as the
governments, industry associations, and international organizations. This is demonstrated by
the European Commission proposed a targeted amendment to the EU Cybersecurity Act, in
2023 (The EU Cybersecurity Act, 2023). This is also demonstrated by the US Federal Trade
Commission (FTC) releasing guidance on best practices for IoT companies to protect
consumer privacy and security, in 2022 (Cohen, 2022). The source goes on to state that
multiple federal and state laws have been instituted to safeguard sensitive information, such
as, Commission enforcing the Safeguards Rule, the Health Breach Notification Rule, and the
Children’s Online Privacy Protection Rule (Cohen, 2022). The evidence clearly indicates that
claims that data is “anonymous” or “has been anonymized” are often deceptive. The source
further supports the FTC efforts by their action taken against companies that misuse
consumer data, for example, advertising platform OpenX recently fined $2 million for
collecting children’s location data without parental consent (Cohen, 2022). International
bodies, including the International Electrotechnical Commission (IEC) and the Institute of
Electrical and Electronics Engineers (IEEE), are actively establishing regulations and directives
relating to governance and security of the IoT. Various organizations are collaborating with
prominent industry leaders, governments, and other concerned stakeholders towards the
development of standard practices and protocols for IoT devices. The Global Action and
Recent Progress Insight Report, which presents a summary of noteworthy technology
governance endeavors across the globe, was made available to the public by the Council on
the Connected World of the World Economic Forum in June of 2022 (Jeambon & Devi, 2022).
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Conclusion
The purpose of this report was to investigate five research question that relate back to the
impact IoT has on the future of the business world. The first research question aimed to
identify which devices should not be connected to the IoT. The following question
investigated the impact IoT will have on the job market and the skillset required as robots
are becoming more intelligent. The third research question investigated the impact of IoT on
sustainability. Thereafter, the report identified the biggest risk associated with the IoT. The
final research question examined who best to govern the IoT. The report found that smart
toys, home security and industrial control systems. If these devices are connected or must
be connected to the IoT, stricter privacy policies for smart toys, transparency on the type of
data that will be collected and clear warnings for parents. Further recommendations
included in smart houses or for high-tech security purpose, merging home security systems
with blockchain technology systems. Industries utilizing ICS connected to IoT should be
monitoring network baselines, secure remote access, performing ICS asset discoveries, etc.
(Chkadmin, 2022). The following impact on the job market, 73 million jobs in the US alone
will be replaced by automation but job opportunities will be created for specialized skills in
data analytics, software development, and cybersecurity. Overall, in terms of the impact on
sustainability the IoT in terms of reducing greenhouse gas emissions and enhancing resource
efficiency. The biggest risk associated with IoT was identified as the cybersecurity threats.
Finally, there is at current no single governing body regulating the IoT, but various
stakeholders regulate and enforce laws and practices to govern the IoT. These stakeholders
included the governments, industry associations, and international organizations.
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