IoT: the dream and the nightmare…

Kate Carruthers #eIoT2015

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Oct-2015 © 2015 Kate Carruthers 2

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IoT is part of the

digital

transformation of

business, the

economy, and

society

Oct-2015 © 2015 Kate Carruthers 4

Industrial revolution

Digital revolution

IoT revolution

Industrial internet. Rise of networked industry. Convergence of industrial, digital, analytics, & connectivity.

Distributed information and communication networks. Rise of networked economy powered by apps.

Harnessing machines to drive economies of scale. Shift away from agriculture based economies.

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Source: Matt Turck, Internet of Things Landscape (Version 3.0), http://www.slideshare.net/mjft01/internet-of-things-42280078/1

Source: IOT Philippines Inc. http://www.iotphils.com/solutions/smart-home/

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Source: http://blog.csiro.au/a-much-smarter-watch-how-our-flexible-batteries-and-electrified-fabrics-can-improve-wearables/

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“The real role of wearables

that no one talks about is all

these smart things around

you have no idea what’s

happening with you…” - Hosain Rahman, CEO Jawbone

Source: 'Ingestibles' could become the new wearables faster than you think, Alicia Marie Tan, Mashable, Oct 2015, http://mashable.com/2015/10/14/jawbone-ingestibles/#RqDiEDnH3Sql

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“I always use the example of,

no matter how smart my

thermostat is, it has no idea if

I’m hot or cold.” - Hosain Rahman, CEO Jawbone

Source: 'Ingestibles' could become the new wearables faster than you think, Alicia Marie Tan, Mashable, Oct 2015, http://mashable.com/2015/10/14/jawbone-ingestibles/#RqDiEDnH3Sql

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Robyn Lewis founder and CEO

VisitVineyards.com

Thin film write-protected

NFC that enables post sale

communication between

seller & customer about the

product

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Source: GE 2013 http://gelookahead.economist.com/infograph/industrial-internet-the-power-of-1-2/

Oct-2015 © 2015 Kate Carruthers 12 Source: http://gelookahead.economist.com/infograph/the-industrial-internet-oil-and-gas/

Oct-2015 © 2015 Kate Carruthers 13 Source: Industrial Internet: Pushing the Boundaries of Minds and Machines, Evans, Peter and Annunziata, Marco, GE, 2012, p. 10

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Source: A Cyber-Physical Systems architecture for Industry 4.0-based manufacturing systems, Jay Lee, Behrad Bagheri, Hung-An Kao, 2015, http://www.sciencedirect.com/science/article/pii/S221384631400025X

Cisco says US$14 trillion IoE value

• asset utilization (reduced costs) of $2.5 trillion

• employee productivity (greater labor efficiencies) of $2.5 trillion

• supply chain and logistics (eliminating waste) of $2.7 trillion

• customer experience (addition of more customers) of $3.7 trillion

• innovation (reducing time to market) of $3.0 trillion

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Source: CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion, 2013

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Source: Greenberg, A., Hackers Remotely Kill a Jeep on the Highway—With Me in It, Wired , July 2015 http://www.wired.com/2015/07/hackers-remotely-kill-jeep-highway/

Source: http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o

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Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in Houston, Texas. The stranger took control of the unit and used it to scream obscenities at a two-year-old toddler. Fortunately, the hearing-impaired child didn’t have her cochlear implant turned on at the time, otherwise she would have heard the stranger yelling, “Wake up Allyson, you little slut!”

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Bloomberg, Data Breaches in the US, at 4 Sep 2014

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• 3rd party HVAC

firm attack

vector

• Security

software

disabled

• PCI DSS didn’t

save them

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Bloomberg, Oct 2014

JP Morgan

• Sarbanes-Oxley Act (SOX)

• Payment Card Industry Data Security Standard (PCI DSS)

• Gramm-Leach-Bliley Act (GLB) Act

• Electronic Fund Transfer Act, Regulation E (EFTA)

• Free and Secure Trade Program (FAST)

• Fair and Accurate Credit Transaction Act (FACTA), including Red Flags Rule

• Federal Rules of Civil Procedure (FRCP)

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“How do consumers know

that the products and

services are protected”

David Kleidermacher, Blackberry CSO

Source: IoT security forcing business model changes, panel says, Oct 2015 http://www.scmagazine.com/iot-security-forcing-business-model-changes-panel-says/article/448668/

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Miller Newton, CEO of PKWare:

“there's not a lot of

authentication on the IoT.

It is easy to impersonate”

Source: IoT security forcing business model changes, panel says, Oct 2015 http://www.scmagazine.com/iot-security-forcing-business-model-changes-panel-says/article/448668/

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Source: CCTV Botnet In Our Own Back Yard, Ofer Gayer, Or Wilder, Igal Zeifman, Incapsula blog 2015, https://www.incapsula.com/blog/cctv-ddos-botnet-back-yard.html

CCTV Botnet at the local mall

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“Business models will have

to change. We used to build

them [products], ship them and

forget about them until we had

to service them,”

“We've moved to a new world

where we have to ship and

remember.” Source: John Ellis, Ellis & Associates, IoT security forcing business model changes, panel says, Oct 2015 http://www.scmagazine.com/iot-security-forcing-business-model-changes-panel-says/article/448668/

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“Targeted Intrusions By

Nation-State Actors Pose A

Major Cyber Threat Going

Into 2015”

Source: Targeted Intrusions By Nation-State Actors Pose A Major Cyber Threat Going Into 2015, Amanda Vicinanzo, 02/12/2015, Homeland Security Today, http://www.hstoday.us/single-article/targeted-intrusions-by-nation-state-actors-pose-a-major-cyber-threat-going-into-2015/1f96ee7a4b2867f1b1511387660bb4b8.html

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Security

Privacy

Geopolitics

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Thank you

Kate Carruthers UNSW Australia k.carruthers@unsw.edu.au @kcarruthers http://www.slideshare.net/carruthk