From MIT Sloan Management Review
How cybersecurity can affect the market for smart products.
Smart devices, once relegated to science fiction and our imaginations, are now ubiquitous. Today, there’s a market for everything from a Wi-Fi connected refrigerator to a voice-operated speakerthat doubles as a personal assistant. The internet of things (IoT) — the software-operated network of physical devices, appliances, vehicles — grows day by day as these devices become part of our daily lives. A March 2018 survey found that 22% of Americans used IoT appliances in their homes, and this trend is widespread across the globe. Amazon recently announced a plan to expand Amazon Echo services to Italy and Spain.
For consumers, the concept of easily operated, highly adaptable products is great. Smart devices are convenient, useful, and fun. However, many people remain skeptical or anxious about this level of connectivity. News of products leaking private information or being remotely hacked has led customers to fear for their personal safety and reconsider hooking up physical appliances to vulnerable networks.