IoT: Five Challenges Executives Face

Jennifer Horowitz

The Internet of Things (IoT) creates a plethora of opportunities, but it is not without challenges. Executives who want a head start in the IoT game should be prepared to overcome these.

Computer processor giant Intel recently announced that Intel Capital, the company’s investment arm, will allocate $72 million in funding for 12 startups to join its portfolio. So far this year Intel has invested $115 million in IoT ventures.

Executives are learning that along with its challenges, IoT also offers potential opportunities for solution providers who can successfully address issues such as scalability and system implementation. Let’s look at some of the most significant IoT challenges that are affecting leaders across the supply chain and logistics in the retail, oil and gas, agriculture, construction, telecom, governments, healthcare, and financial services industries.


Scaling IoT device networks is a major issue for companies. While many companies can manage overall scaling issues, scaling the footprint for IoT presents some new challenges. Leaders should also be aware of issues in working with software, legacy devices, and the need for specialized solutions. Determining the departments responsible for IoT-related gateways, analytics, networking equipment, sensors, and software and hardware is also essential.


Another challenge for many leaders is implementing IoT solutions. One of the main hurdles has been lack of support for deploying production quality. There is also the question of whether IT, operations, the C-suite, or some other department should handle implementation.

Data protection

Figuring out connectivity management is also a challenge. Executives face the issue of whether they should integrate connectivity management across any kind of environment. Additionally, determining if connecting the IoT ecosystem to disparate networks is required was also a factor. In a survey by IoT world, 36.73 percent of executives said that they were not confident “their organization could secure and protect all data within their IoT ecosystem.”


Executives also noted security in the IoT world survey, with 72.16 percent of leaders stating that they embed and incorporate security into the product life and design of IoT devices. However, companies are still struggling with IoT security. The IoT world survey found that more than one-third of executives will not be staying with security patches and fixes, while 57.6 percent said they had not trained IT staff on the latest IoT security updates. Many executives do not even conduct vulnerability testing to identify network weaknesses.

Using blockchain to make IoT deployments

Many companies are considering the use of ledger technology for creating more secure and efficient IoT deployments. Some of the most important reasons for leveraging blockchain are to reduce the risk of collusion and tampering, developing trust for users, accelerating the rate of data transactions, and reducing IoT overhead costs.

For more insight on IoT, see Integrated Cloud And Analytic Solutions Are Driving IoT Adoption Rates.

Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a management consultant and journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.