The Internet of Things (IoT) Promises New Benefits — And Risks: A Systematic Analysis of Adoption Dynamics of IoT Products
22 Pages Posted: 23 Aug 2017 Last revised: 7 May 2020
Date Written: August 18, 2017
• The rush to adopt products on the Internet of Things (IoT) before securing them will make them attractive to cyber criminals and vulnerable to cyber-incidents. • Organizations can weaken the effects of cyber-incidents by creating cybersecurity capabilities at the beginning of their market growth, particularly detailed response plans with clear action items and owners. • Start-ups, in particular, are vulnerable to the tradeoffs between immediate revenue through accelerated market adoption and risked revenue from security vulnerabilities. • Potential adopters decide to adopt new IoT technologies based on their perception of risk-reward ratio. Internet of Things producers can improve such risk-reward ratio by early and continuous cybersecurity capability development, minimizing customer churn during a cyber crisis.
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